74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2231
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)
CHAPTER ................
AN ACT
Relating to reassessment of damaged property for purposes of
taxation; amending ORS 308.146, 308.425 and 308.428.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 308.146 is amended to read:
308.146. (1) The maximum assessed value of property shall equal
103 percent of the property's assessed value from the prior year
or 100 percent of the property's maximum assessed value from the
prior year, whichever is greater.
(2) Except as provided in subsections (3) and (4) of this
section, the assessed value of property to which this section
applies shall equal the lesser of:
(a) The property's maximum assessed value; or
(b) The property's real market value.
(3) Notwithstanding subsections (1) and (2) of this section,
the maximum assessed value and assessed value of property shall
be determined as provided in ORS 308.149 to 308.166 if:
(a) The property is new property or new improvements to
property;
(b) The property is partitioned or subdivided;
(c) The property is rezoned and used consistently with the
rezoning;
(d) The property is first taken into account as omitted
property;
(e) The property becomes disqualified from exemption, partial
exemption or special assessment; or
(f) A lot line adjustment is made with respect to the property,
except that the total assessed value of all property affected by
a lot line adjustment shall not exceed the total maximum assessed
value of the affected property under subsection (1) of this
section.
(4) Notwithstanding subsections (1) and (2) of this section, if
property is subject to partial exemption or special assessment,
the property's maximum assessed value and assessed value shall be
determined as provided under the provisions of law governing the
partial exemption or special assessment.
(5)(a) Notwithstanding subsection (1) of this section, when a
portion of property is destroyed or damaged due to fire or act of
God, for the year in which the destruction or damage is reflected
by a reduction in real market value, the maximum assessed value
Enrolled House Bill 2231 (HB 2231-INTRO) Page 1
of the property shall be reduced to reflect the loss from fire or
act of God.
(b) This subsection does not apply:
(A) To any property that is assessed under ORS 308.505 to
308.665.
(B) If the damaged or destroyed property is property that, when
added to the assessment and tax roll, constituted minor
construction for which no adjustment to maximum assessed value
was made.
(c) As used in this subsection, 'minor construction' has the
meaning given that term in ORS 308.149.
(6)(a) If, during the period beginning on January 1 and ending
on July 1 of an assessment year, any real or personal property is
destroyed or damaged, the owner or purchaser under a recorded
instrument of sale in the case of real property, or the person
assessed, person in possession or owner in the case of personal
property, may apply to the county assessor to have the real
market and assessed value of the property determined as of July 1
of the current assessment year.
(b) The person described in paragraph (a) of this subsection
shall file an application for assessment under this section with
the county assessor on or before { - August 1 of the current
year. - } { + the later of:
(A) August 1 of the current year; or
(B) The 60th day following the date on which the property was
damaged or destroyed. + }
(c) If the conditions described in this subsection are
applicable to the property, then notwithstanding ORS 308.210, the
property shall be assessed as of July 1, at 1:00 a.m. of the
assessment year, in the manner otherwise provided by law.
(7)(a) Paragraph (b) of this subsection applies if:
(A) A conservation easement or highway scenic preservation
easement is in effect on the assessment date;
(B) The tax year is the first tax year in which the
conservation easement or highway scenic preservation easement is
taken into account in determining the property's assessed value;
and
(C) A report has been issued by the county assessor under ORS
271.729 within 12 months preceding or following the date the
easement was recorded.
(b) The assessed value of the property shall be as determined
in the report issued under ORS 271.729, but may be further
adjusted by changes in value as a result of any of the factors
described in ORS 309.115 (2), to the extent adjustments do not
cause the assessed value of the property to exceed the property's
maximum assessed value.
SECTION 2. ORS 308.425 is amended to read:
308.425. (1) If, during any tax year, any real or personal
property is destroyed or damaged by fire or act of God, the owner
or purchaser under a recorded instrument of sale in the case of
real property, or the person assessed, person in possession or
owner in the case of personal property, may apply to the tax
collector for proration of the taxes imposed on the property for
the tax year.
(2) Application for proration of taxes under subsection (1) of
this section shall be made not later than the end of the tax year
or { - 30 - } { + 60 + } days after the date the property was
destroyed or damaged, whichever is later.
(3)(a) For property that is totally destroyed, the tax
collector shall collect only one-twelfth of the taxes imposed on
Enrolled House Bill 2231 (HB 2231-INTRO) Page 2
the property for the tax year, for each month or fraction of a
month that the property was in existence during the tax year. The
tax collector shall cancel the remainder of the taxes imposed on
the property for the tax year.
(b) For property that is damaged, the tax collector shall
collect only one-twelfth of the taxes imposed on the property for
the tax year, for each month or fraction of a month that preceded
the month during which the property was damaged. For the month in
which the property was damaged, and for each month of the tax
year thereafter in which the property remains damaged, the tax
collector shall collect that percentage of one-twelfth of the
taxes imposed on the property that the real market value or the
assessed value of the property after the damage (whichever is
less) bears to the assessed value of the property before the
damage. The assessor shall advise the tax collector of the value
percentage required under this paragraph. The tax collector shall
cancel any taxes not to be collected due to this paragraph.
(4) That portion of the property that is damaged property and
that is subsequently repaired shall be considered to be new
property or new improvements to property under ORS 308.153 for
the assessment year in which the repairs or replacements are
first taken into account.
SECTION 3. ORS 308.428 is amended to read:
308.428. (1) If, during the period beginning on January 1 and
ending on July 1 of an assessment year, any real or personal
property is destroyed or damaged by fire or act of God, the owner
or purchaser under a recorded instrument of sale in the case of
real property, or the person assessed, person in possession or
owner in the case of personal property, may apply to the county
assessor to have the real market and assessed value of the
property determined as of July 1 of the current assessment year.
(2) The person described in subsection (1) of this section
shall file an application for assessment under this section with
the county assessor on or before { - August 1 of the current
year. - } { + the later of:
(a) August 1 of the current year; or
(b) The 60th day following the date on which the property was
damaged or destroyed. + }
(3) If the conditions described in subsection (1) of this
section are applicable to the property, then notwithstanding ORS
308.210, the property shall be assessed as of July 1, at 1:00
a.m. of the assessment year, in the manner otherwise provided by
law.
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Enrolled House Bill 2231 (HB 2231-INTRO) Page 3
Passed by House February 15, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 25, 2007
...........................................................
President of Senate
Enrolled House Bill 2231 (HB 2231-INTRO) Page 4
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2231 (HB 2231-INTRO) Page 5