74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 509
 
                         House Bill 2228
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Department of Revenue and Office of Regulatory
  Streamlining of Department of Consumer and Business Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Increases authority of county assessors to grant extensions of
time for filing property tax returns.
  Permits Department of Revenue to grant extensions to persons
required to file property tax returns in more than one county.
  Applies to returns filed for property tax years beginning on or
after July 1, 2008.
 
                        A BILL FOR AN ACT
Relating to property tax returns; creating new provisions; and
  amending ORS 308.250 and 308.290.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 308.290 is amended to read:
  308.290. (1)(a) Every person and the managing agent or officer
of any firm, corporation or association owning, or having in
possession or under control taxable personal property shall make
a return of the property for ad valorem tax purposes to the
assessor of the county in which such property has its situs for
taxation. As between a mortgagor and mortgagee or a lessor and
lessee, however, the actual owner and the person in possession
may agree between them as to who shall make the return and pay
the tax, and the election shall be followed by the person in
possession of the roll who has notice of the election. Upon the
failure of either party to file a personal property tax return on
or before March 1 of any year, both parties shall be jointly and
severally subject to the provisions of ORS 308.296.
  (b) Every person and the managing agent or officer of any firm,
corporation or association owning or in possession of taxable
real property shall make a return of the property for ad valorem
tax purposes when so requested by the assessor of the county in
which such property is situated.
  (2)(a) Each return of personal property shall contain a full
listing of such property and a statement of its real market
value, including a separate listing of those items claimed to be
exempt as imports or exports. Each statement shall contain a
listing of the additions or retirements made since the prior
January 1, indicating the book cost and the date of acquisition
or retirement. Each return shall contain the name, assumed
business name, if any, and address of the owner of the personal
property and, if it is a partnership, the name and address of
each general partner or, if it is a corporation, the name and
address of its registered agent.
  (b) Each return of real property shall contain a full listing
of the several items or parts of such property specified by the
 { +  county + } assessor and a statement exhibiting their real
market value. Each return shall contain a listing of the
additions and retirements made during the year indicating the
book cost, book value of the additions and retirements or the
appraised real market value of retirements as specified in the
return by the assessor.
  (c) There shall be annexed to each return the affidavit or
affirmation of the person making the return that the statements
contained in the return are true. All returns shall be in such
form as the assessor, with the approval of the Department of
Revenue, may prescribe. Prior to December 31 preceding the
assessment year, the department or assessor shall cause blank
forms for the returns to be prepared and distributed by mail, but
failure to receive or secure the form shall not relieve the
person, managing agent or officer from the obligation of making
any return required by this section.
  (3) All returns shall be filed on or before March 1 of each
year, but the  { + county + } assessor  { - , upon written
request filed with the assessor prior to that date and for good
cause shown in the request, shall allow for - }   { + or the
Department of Revenue may grant + } an extension of time { +  to
April 15 + } within which to file the return
  { - to April 15 - }  { +  as provided by subsection (5), (6) or
(7) of this section + }.   { - The department shall adopt rules
for the granting of extensions under this subsection. - }
  (4)(a) In lieu of the returns required under subsection (1)(a)
or (b) of this section, every person and the managing agent or
officer of any firm, corporation or association owning or having
in possession or under control taxable real and personal property
that is either principal industrial property or secondary
industrial property as defined by ORS 306.126 (1) and is
appraised by the Department  { + of Revenue + } shall file a
combined return of the real and personal property with the
department.
  (b) The contents and form of the return shall be as prescribed
by rule of the department. Any form shall comply with ORS
308.297. Notwithstanding ORS 308.875, a manufactured structure
that is a part of an industrial property shall be included in a
combined return.
  (c) In order that the  { + county + } assessor may comply with
ORS 308.295, the department shall provide a list to the assessor
of all combined returns that are required to be filed with the
department under this subsection but that were not filed on or
before the due date or within the time allowed by an extension.
  (d) If the department has delegated appraisal of the property
to the  { + county + } assessor under ORS 306.126 (3), the
department shall notify the person otherwise required to file the
combined return under this subsection as soon as practicable
after the delegation that the combined return is required to be
filed with the   { - county - } assessor.
  (e) Notwithstanding subsection (1)   { - or (3) - }  of this
section, a combined return of real and personal property that is
industrial property appraised by the department shall be filed
with the department on or before March 1 of the year.
  (5)(a) Any person required to file a return under subsection
(4) of this section may apply to the Department of Revenue for an
extension of   { - the - }  time  { + to April 15,  + }within
which to file the return { + . + }   { - to April 15. An
extension granted under this subsection shall continue in effect
for each subsequent year unless canceled by the person or revoked
by the department. - }
   { +  (b) Extensions granted under this subsection may be based
on a finding by the department that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) + } An extension granted under this subsection shall apply
to returns required to be filed  { + under subsection (4) of this
section + } with either the county assessor or the department.
   { +  (d) + } The department shall   { - provide for
notification of county assessors of the granting of
extensions - }   { + notify assessors in affected counties when
the department grants extensions  + }under this subsection.
   { +  (6)(a) Except as provided in subsection (5) of this
section, any person required to file a return with the county
assessor under this section may apply to the assessor for an
extension of time to April 15 within which to file the return.
  (b) Extensions granted under this subsection may be based on a
finding by the assessor that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the assessor revokes the extension.
  (7)(a) Any person required to file returns in more than one
county may apply to the Department of Revenue for an extension of
time to April 15 within which to file the returns. The department
may grant extensions to a person required to file returns in more
than one county.
  (b) Extensions granted under this subsection may be based on a
finding by the department that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) Whenever the department grants an extension to a person
required to file returns in more than one county, the department
shall notify the assessors in the counties affected by the
extensions. + }
    { - (b) - }   { + (8) + } The Department of Revenue shall, by
rule, establish procedures and criteria for   { - the granting of
extensions provided for under paragraph (a) of this subsection.
The department shall adopt such rules - }   { + granting, denying
or revoking extensions under this section + } after consultation
with an advisory committee selected by the department that
represents the interests of county assessors and affected
taxpayers.
    { - (6) - }  { +  (9) + } No return shall be controlling on
the  { + county + } assessor or on the Department of Revenue in
any respect in the assessment of any property. On any failure to
file the required return, the property shall be listed and
 { - evaluated - }   { + assessed + } from the best information
obtainable from other sources.
    { - (7)(a) - }  { +  (10)(a) + } All returns filed under the
provisions of this section and ORS 308.525 and 308.810
 { - shall be - }   { + are + } confidential records of the
 { + Department of Revenue or the county assessor's + } office in
which   { - such - }   { + the + } returns are filed.
  (b) Notwithstanding paragraph (a) of this subsection, a return
described in paragraph (a) of this subsection may be disclosed
to:
  (A) The Department of Revenue or its representative;
  (B) The representatives of the Secretary of State or to an
accountant engaged by a county under ORS 297.405 to 297.555 for
the purpose of auditing the county's personal property tax
assessment roll (including adjustments to returns made by the
Department of Revenue);
  (C) The county tax collector or the tax collector's
representative for the purpose of collecting delinquent personal
property taxes;
  (D) Any reviewing authority to the extent the return being
disclosed relates to an appeal brought by a taxpayer;
  (E) The Division of Child Support of the Department of Justice
or a district attorney to the extent the return being disclosed
relates to a case for which the Division of Child Support or the
district attorney is providing support enforcement services under
ORS 25.080; or
  (F) The Legislative Revenue Officer for the purpose of
preparation of reports, estimates and analyses required by ORS
173.800 to 173.850.
  (c) Notwithstanding paragraph (a) of this subsection:
  (A) The Department of Revenue may exchange property tax
information with the authorized agents of the federal government
and the several states on a reciprocal basis.
  (B) Information regarding the valuation of leased property
reported on a property return filed by a lessor under this
section may be disclosed to the lessee or other person in
possession of the property. Information regarding the valuation
of leased property reported on a property return filed by a
lessee under this section may be disclosed to the lessor of the
property.
    { - (8) - }  { +  (11) + } If the assessed value of any
personal property in possession of a lessee is less than the
maximum amount of the assessed value of taxable personal property
for which ad valorem property taxes may be canceled under ORS
308.250, the person in possession of the roll may disregard an
election made under subsection (1) of this section and assess the
owner or lessor of the property.
  SECTION 2. ORS 308.250 is amended to read:
  308.250. (1) All personal property not exempt from ad valorem
taxation or subject to special assessment shall be valued at 100
percent of its real market value, as of January 1, at 1:00 a.m.
and shall be assessed at its assessed value determined as
provided in ORS 308.146.
  (2) If the total assessed value of all taxable personal
property required to be reported under ORS 308.290 in any county
of any taxpayer is less than $12,500 in any assessment year, the
county assessor shall cancel the ad valorem tax assessment for
that year.
  (3) In any assessment year or years following an assessment
year for which taxes are canceled under subsection (2) of this
section, the taxpayer may meet the requirements of ORS 308.290 by
filing, within the time required  { + or extended + } under ORS
308.290, a verified statement with the county assessor indicating
that the total assessed value of all taxable personal property of
the taxpayer required to be reported under ORS 308.290 in the
county is less than $12,500. The statement shall contain the name
and address of the taxpayer, the information needed to identify
the account and other pertinent information, but shall not be
required to contain a listing or value of property or property
additions or retirements.
  (4)(a) For each tax year beginning on or after July 1, 2003,
the Department of Revenue shall recompute the maximum amount of
the assessed value of taxable personal property for which ad
valorem property taxes may be canceled under this section. The
computation shall be as follows:
  (A) Divide the average U.S. City Average Consumer Price Index
for the prior calendar year by the average U.S. City Average
Consumer Price Index for 2002.
  (B) Recompute the maximum amount of assessed value for which
taxes may be canceled by multiplying $12,500 by the appropriate
indexing factor determined as provided in subparagraph (A) of
this paragraph.
  (b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
  (c) If any change in the maximum amount of assessed value
determined under paragraph (a) of this subsection is not a
multiple of $500, the increase shall be rounded to the nearest
multiple of $500.
  SECTION 3.  { + The amendments to ORS 308.250 and 308.290 by
sections 1 and 2 of this 2007 Act apply to returns filed for
property tax years beginning on or after July 1, 2008. + }
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