74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
Senate Bill 697
Sponsored by Senator MORSE
CHAPTER ................
AN ACT
Relating to property taxation; amending ORS 308.146, 308.153 and
311.234.
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
of the property shall be reduced to reflect the loss from fire or
act of God.
(b) This subsection does not apply:
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(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.
(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.
{ + (8)(a) Notwithstanding subsection (1) of this section,
when a building is demolished or removed from property, for the
year in which the demolishment or removal of the building is
reflected by a reduction in real market value, the maximum
assessed value of the property may be reduced to reflect the
demolishment or removal of the building.
(b) This subsection does not apply:
(A) To any property that is assessed under ORS 308.505 to
308.665.
(B) If the demolished or removed 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. + }
SECTION 2. ORS 308.153 is amended to read:
308.153. (1) If new property is added to the assessment roll or
improvements are made to property as of January 1 of the
assessment year, the maximum assessed value of the property shall
be the sum of:
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(a) The maximum assessed value determined under ORS 308.146;
and
(b) The product of the value of the new property or new
improvements determined under subsection (2)(a) of this section
multiplied by the ratio, not greater than 1.00, of the average
maximum assessed value over the average real market value for the
assessment year.
(2)(a) The value of new property or new improvements shall
equal the real market value of the new property or new
improvements reduced (but not below zero) by the real market
value of retirements from the property tax account.
(b) If the maximum assessed value of property is adjusted for
fire or act of God { + or for demolishment or removal of a
building under ORS 308.146 + }, the reduction in real market
value due to fire or act of God { + or demolishment or removal
of the building + } may not be considered to be a retirement
under this subsection.
(3) The property's assessed value for the year shall equal the
lesser of:
(a) The property's maximum assessed value; or
(b) The property's real market value.
SECTION 3. ORS 311.234 is amended to read:
311.234. (1) Notwithstanding ORS 311.205 (1)(b), the current
owner of property or other person obligated to pay taxes imposed
on property may petition the county assessor for a correction in
the maximum assessed value of the property for the current tax
year { + , including but not limited to a correction in the
maximum assessed value of the property for demolishment or
removal of a building in the current tax year + }.
(2) Pursuant to a petition filed under this section, the
assessor may correct the maximum assessed value of the property
for the current tax year if there is a demonstrated difference
between the actual square footage of the property as of the
assessment date for the current tax year and the square footage
of the property as shown in the records of the assessor for the
tax year.
(3) The correction made under this section may not be
proportionally different from the proportional difference between
the original square footage of the property as shown in the
assessor's records and the actual square footage of the property
as of the assessment date for the current tax year.
(4) Notwithstanding subsection (3) of this section, the
correction made under this section may not cause the maximum
assessed value of the property to increase by more than three
percent from the maximum assessed value of the property for the
preceding tax year.
(5) A petition filed under this section must be on the form and
contain the information prescribed by the Department of Revenue
and must be filed with the county assessor on or before December
31 of the current tax year.
(6) A decision by the assessor pursuant to a petition filed
under this section may be appealed under ORS 305.275.
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Enrolled Senate Bill 697 (SB 697-A) Page 3
Passed by Senate April 9, 2007
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 4, 2007
...........................................................
Speaker of House
Enrolled Senate Bill 697 (SB 697-A) Page 4
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled Senate Bill 697 (SB 697-A) Page 5