74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
House Bill 2592
Sponsored by Representative BUCKLEY; Representatives BERGER,
MACPHERSON
CHAPTER ................
AN ACT
Relating to tax compliance; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
{ + NOTE: + } Sections 1 and 2 were deleted by amendment.
Subsequent sections were not renumbered.
SECTION 3. { + Section 4 of this 2007 Act is added to and made
a part of ORS chapter 314. + }
SECTION 4. { + (1) As used in this section:
(a) 'Authorized agent' means an agent who is responsible for
closing and settlement services in a conveyance of a real
property interest.
(b) 'Closing and settlement services' means services that are
provided for the benefit of a transferor or a transferee in
connection with a conveyance of a real property interest, and the
receipt or disbursement of moneys in connection with a sale,
lease, encumbrance, mortgage or deed of trust in or related to
real property.
(c) 'Conveyance' means a sale, lease, encumbrance, mortgage or
creation of a secured interest in real property.
(d) 'Real property interest' means a United States real
property interest, as defined in section 897(c) of the Internal
Revenue Code, that is located in the State of Oregon.
(2)(a) If there is a conveyance of a real property interest,
the authorized agent providing closing and settlement services is
required to withhold an amount equal to the least of:
(A) Four percent of the consideration for the real property
interest being conveyed;
(B) Four percent of the net proceeds resulting from the
conveyance; or
(C) Ten percent of the gain includable in taxable income.
(b) For purposes of this subsection, a transferor is:
(A) An individual who is not a resident of this state at the
time of both the closing date of the conveyance and the date on
which proceeds of the conveyance are disbursed; or
(B) A C corporation that, immediately after the conveyance of
the real property interest, is not doing business in this state.
(3)(a) Notwithstanding subsection (2) of this section, an
authorized agent is not required to withhold amounts under this
section if the authorized agent obtains a written affirmation
executed by the transferor on a form prescribed by the Department
of Revenue certifying under penalty of perjury that:
Enrolled House Bill 2592 (HB 2592-B) Page 1
(A) The consideration for the conveyance does not exceed
$100,000;
(B) The transferee is acquiring the real property interest
through foreclosure; or
(C) The transferor:
(i) If an individual, is a resident of this state;
(ii) If a corporation, has a permanent place of business in
this state; or
(iii) Has professionally competent knowledge or advice that the
transferor will not owe tax under ORS chapter 316, 317 or 318 for
the tax year because the conveyance is an exchange that qualifies
for deferral under section 1031 or 1033 of the Internal Revenue
Code or is a nontaxable transaction under Oregon tax law.
(b) If withholding is not retained and remitted to the
department pursuant to this section, the authorized agent shall
retain the written affirmation described in this subsection for
six years from the date of the closing of the conveyance
transaction and shall present the written affirmation to the
department immediately upon request in writing from the
department.
(4) For purposes of this section, a corporation is not doing
business in this state if:
(a) The corporation has not been issued a certificate of
existence or a certificate of authorization by the Secretary of
State as described in ORS 60.027; and
(b) The corporation does not maintain a permanent office with a
staff of at least one employee in this state or does not own or
lease property in this state other than the property that is the
subject of the conveyance.
(5)(a) Amounts withheld pursuant to this section are held in
trust for the State of Oregon and shall be paid to the department
in the time and manner prescribed by the department by rule.
(b) If an authorized agent fails to remit an amount withheld or
required to be withheld by the agent under this section by the
time remittance is required, the department may enforce
collection in the same manner as the department enforces the
collection of amounts withheld by employers under ORS 316.162 to
316.221.
(c) Notwithstanding paragraph (b) of this subsection, the
department may not proceed with collection actions against the
authorized agent if the authorized agent:
(A) Presents the department with the written affirmation
described in subsection (3) of this section; and
(B) Demonstrates to the department that the authorized agent
obtained the written affirmation prior to disbursal of funds due
the transferor resulting from the conveyance. + }
SECTION 5. { + Section 4 of this 2007 Act applies to
conveyances of real property interests occurring on or after
January 1, 2008. + }
SECTION 6. { + If a political subdivision of this state
imposes a tax on or measured by income as determined under ORS
chapter 316, 317 or 318, the Department of Revenue shall provide
to the political subdivision, at the request of the political
subdivision, collection, enforcement, administration and
distribution services for the tax in the manner provided in ORS
305.620. + }
SECTION 7. { + This 2007 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fourth
Legislative Assembly adjourns sine die. + }
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Enrolled House Bill 2592 (HB 2592-B) Page 2
Passed by House June 21, 2007
Repassed by House June 25, 2007
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate June 24, 2007
...........................................................
President of Senate
Enrolled House Bill 2592 (HB 2592-B) Page 3
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled House Bill 2592 (HB 2592-B) Page 4