75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 594
Sponsored by Senator MONROE; Representative WINGARD
CHAPTER ................
AN ACT
Relating to exemption from property taxation; creating new
provisions; amending ORS 307.150, 307.162 and 308.290; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 307.150 is amended to read:
307.150. (1) { + Notwithstanding ORS 307.022, + } upon
compliance with ORS 307.162, the following property { - shall
be - } { + is + } exempt from taxation:
(a) { - All - } Burial grounds, tombs and rights of burial,
and
{ - all - } lands and { - the - } buildings
{ - thereon - } { + on the land + }, not exceeding 30 acres,
{ - owned and actually occupied by any crematory association
incorporated under the laws of this state, - } used for the sole
purpose of a crematory and burial place to incinerate remains.
(b) { - All - } Lands used or held exclusively for cemetery
purposes, not exceeding 600 acres { - , owned and actually
occupied by any cemetery association incorporated under the laws
of this state - } .
(c) { - Any - } Burial lots or space for burial of
incinerate remains in buildings or grounds { - sold by a
cemetery or crematory association which lots or space are - }
used or held exclusively for burial purposes.
(d) { - Any - } Buildings on land described in paragraph (a)
or (b) of this subsection that are used to store machinery or
equipment used exclusively for maintenance of burial grounds.
(e) { - Any - } Personal property { - owned by a cemetery
or crematory association incorporated under the laws of this
state and - } used exclusively for cemetery or crematory
{ - association - } purposes.
(2) The statement required under ORS 307.162 shall be filed by
the { - cemetery or crematory association that owns or
sells - } { + owner of + } the property described in subsection
(1) of this section.
(3) Any property exclusively occupied and used as a family
burial ground is exempt from ad valorem taxation.
SECTION 2. ORS 308.290 is amended to read:
308.290. (1)(a) { + Except as provided in paragraph (b) of
this subsection, + } every person and the managing agent or
officer of any business, 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
Enrolled Senate Bill 594 (SB 594-A) Page 1
purposes to the assessor of the county in which the 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) Paragraph (a) of this subsection does not apply to
personal property exempt from taxation under ORS 307.162. + }
{ - (b) - } { + (2) + } Every person and the managing agent
or officer of any business, 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 the property is
situated.
{ - (2)(a) - } { + (3)(a) + } Each return of personal
property shall contain a full listing of the 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 the 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 a form
that the county 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 does not relieve the
person, managing agent or officer from the obligation of making
any return required by this section.
{ - (3) - } { + (4) + } All returns shall be filed on or
before March 1 of each year, but the county assessor or the
Department of Revenue may grant an extension of time to April 15
within which to file the return as provided by subsection
{ - (5), (6) or (7) - } { + (6), (7) or (8) + } of this
section.
{ - (4)(a) - } { + (5)(a) + } In lieu of the returns
required under subsection (1)(a) or { - (b) - } { + (2) + }
of this section, every person and the managing agent or officer
of any business, 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
Enrolled Senate Bill 594 (SB 594-A) Page 2
{ - by - } { + in + } 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 assessor.
(e) Notwithstanding subsection { - (1) - } { + (2) + } 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) - } { + (6)(a) + } Any person required to file a
return under subsection { - (4) - } { + (5) + } of this
section may apply to the Department of Revenue 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 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) - }
{ + (5) + } of this section with either the county assessor or
the department.
(d) The department shall notify assessors in affected counties
when the department grants extensions under this subsection.
{ - (6)(a) - } { + (7)(a) + } Except as provided in
subsection { - (5) - } { + (6) + } 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) - } { + (8)(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
Enrolled Senate Bill 594 (SB 594-A) Page 3
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.
{ - (8) - } { + (9) + } The Department of Revenue shall, by
rule, establish procedures and criteria for 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.
{ - (9) - } { + (10) + } A return is not in any respect
controlling on the county assessor or on the Department of
Revenue in the assessment of any property. On any failure to file
the required return, the property shall be listed and assessed
from the best information obtainable from other sources.
{ - (10)(a) - } { + (11)(a) + } All returns filed under the
provisions of this section and ORS 308.525 and 308.810 are
confidential records of the Department of Revenue or the county
assessor's office in which the returns are filed or of the office
to which the returns are forwarded under paragraph (b) of this
subsection.
(b) The assessor or the department may forward any return
received in error to the department or the county official
responsible for appraising the property described in the return.
(c) 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 assessor, the county tax collector, the
assessor's representative or the tax collector's representative
for the purpose of:
(i) Collecting delinquent real or personal property taxes; or
(ii) Correctly reflecting on the tax roll information reported
on returns filed by a business operating in more than one county
or transferring property between counties in this state during
the tax year;
(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
Enrolled Senate Bill 594 (SB 594-A) Page 4
(F) The Legislative Revenue Officer for the purpose of
preparation of reports, estimates and analyses required by ORS
173.800 to 173.850.
(d) 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, or with county
assessors, county tax collectors or authorized representatives of
assessors or tax collectors.
(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.
{ - (11) - } { + (12) + } 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) { + (a) + } of this section
and assess the owner or lessor of the property.
SECTION 3. ORS 307.162 is amended to read:
307.162. (1) { + (a) + } Before any real or personal property
may be exempted from taxation under ORS 307.115, 307.118, 307.130
to 307.140, 307.145, 307.147, 307.150, 307.160 or 307.580 for any
tax year, the institution or organization claiming the exemption
shall file with the county assessor, on or before April 1 of the
assessment year, a statement { + , + } verified by the oath or
affirmation of the president or other proper officer of the
institution or organization, { - listing - } { + that:
(A) + } { + Lists + } all real { - or personal - } property
claimed to be exempt and { - showing - } { + shows + } the
purpose for which { - such - } { + the real + } property is
used { - . However: - } { + ; and
(B) Cites the statutes under which exemption for personal
property is claimed. + }
{ - (a) - } { + (b) + } If the ownership of all property
included in the statement filed with the county assessor for a
prior year remains unchanged, a new statement shall not be
required.
{ - (b) - } { + (c) + } When the property designated in the
claim for exemption is acquired after March 1 and before July 1,
the claim for that year shall be filed within 30 days from the
date of acquisition of the property.
{ - (c) - } { + (d) + } { - As used in - } { + For
purposes of + } this subsection, ' ownership' means legal and
equitable title.
(2) Notwithstanding subsection (1) of this section, a statement
may be filed under this section on or before December 31 of the
assessment year for which exemption is first desired. However,
any statement filed after the time for filing the statement
specified in subsection (1) of this section must be accompanied
by a late filing fee of the greater of $200, or one-tenth of one
percent of the real market value of the property to which the
statement pertains, as determined for the assessment year by the
assessor for this purpose. If the statement is not accompanied by
the late filing fee or if the late filing fee is not otherwise
paid, no exemption shall be allowed for the tax year based upon a
Enrolled Senate Bill 594 (SB 594-A) Page 5
statement filed pursuant to this subsection. A statement may be
filed under this section notwithstanding that there are no
grounds for hardship as required for late filing under ORS
307.475. The value of the property used to determine the late
filing fee under this section is appealable in the same manner as
other acts of the county assessor. Any filing fee collected under
this section shall be deposited to the county general fund.
(3)(a) Notwithstanding subsection (1) of this section, if an
institution or organization owns property that is exempt from
taxation under a provision of law listed in subsection (1) of
this section and fails to make a timely application for exemption
under subsection (1) of this section for additions or
improvements to the exempt property, the additions or
improvements may nevertheless qualify for exemption.
(b) The organization must file an application with the county
assessor to have the additions or improvements to the exempt
property be exempt from taxation. The application shall:
(A) Describe the additions or improvements to the exempt
property;
(B) Describe the current use of the property that is the
subject of the application;
(C) Identify the tax year and any preceding tax years for which
the exemption is sought;
(D) Contain any other information required by the Department of
Revenue; and
(E) Be accompanied by a late filing fee equal to the product of
the number of tax years for which exemption is sought multiplied
by the greater of $200 or one-tenth of one percent of the real
market value, as of the most recent assessment date, of the
property that is the subject of the application.
(c) Upon the county assessor's receipt of a completed
application and late filing fee, the assessor shall determine if
the property that is the subject of the application, for each tax
year for which exemption is sought, would have qualified for
exemption had a timely statement been filed under subsection (1)
of this section. Any property that would have qualified for
exemption had a timely statement under subsection (1) of this
section been filed shall be exempt from taxation for each tax
year for which the property would have so qualified.
(d) An application for exemption under this subsection may be
filed only for tax years for which the time for filing a
statement under subsections (1) and (2) of this section has
expired. An application filed under this subsection, however, may
serve as the statement required under subsection (1) of this
section for the current assessment year.
(e) For each tax year for which an exemption granted pursuant
to this subsection applies:
(A) Any tax, or interest attributable thereto, that was paid
with respect to the property that is declared exempt from
taxation, shall be refunded. Refunds shall be made from the
unsegregated tax collections account established under ORS
311.385.
(B) Any tax, or interest attributable thereto, that remains
unpaid as of the date the exemption is granted, shall be abated.
(f) A late filing fee collected under this subsection shall be
deposited in the county general fund.
(4) If an institution or organization owns property that is
exempt from taxation under a provision of law listed in
subsection (1) of this section and changes the use of the
property to a use that would not entitle the property to
Enrolled Senate Bill 594 (SB 594-A) Page 6
exemption from taxation, the institution or organization shall
notify the county assessor of the change to a taxable use within
30 days of the change in use.
SECTION 4. { + (1)(a) Notwithstanding the time periods set
forth in ORS 307.162, a claim for exemption under ORS 307.150 for
the tax year beginning July 1, 2008, may be filed in writing with
the county assessor, on forms supplied by the assessor, within 90
days after the effective date of this 2009 Act.
(b) The claim for exemption must:
(A) Contain the information and verification required for
filing the claim for exemption; and
(B) Be accompanied by a late filing fee of $200.
(2) If tax on the exempt value has not been paid, the tax and
any interest are abated.
(3) If tax on the exempt value has been paid, the tax collector
shall notify the governing body of the county of the refund
required under ORS 307.150. Upon receipt of notice from the tax
collector, the governing body shall cause a refund of the tax and
any fee and interest paid to be made from the refund reserve
account, if the county has established a refund reserve account
under ORS 311.807, or from the unsegregated tax collections
account described in ORS 311.385. The refund under this
subsection shall be made without interest. The county assessor
and tax collector shall make the necessary corrections in the
records of their offices. + }
SECTION 5. { + (1) Notwithstanding the deadlines for filing
personal property returns under ORS 308.290, a return is not
required for personal property described in ORS 308.290 (1)(b)
for tax years beginning on or after July 1, 2009.
(2)(a) No penalty may be imposed under ORS 308.295 for failure
to file a return of personal property under subsection (1) of
this section.
(b) If a penalty under ORS 308.295 has been paid, the person in
charge of the roll shall cancel the penalty on the roll for the
tax year for which the exemption was granted and the penalty
shall be refunded without interest under ORS 311.806. + }
SECTION 6. { + (1) Section 4 of this 2009 Act and the
amendments to ORS 307.150 by section 1 of this 2009 Act apply to
property tax years beginning on or after July 1, 2008.
(2) The amendments to ORS 307.162 and 308.290 by sections 2 and
3 of this 2009 Act apply to property tax years beginning on or
after July 1, 2009. + }
SECTION 7. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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Enrolled Senate Bill 594 (SB 594-A) Page 7
Passed by Senate April 2, 2009
Repassed by Senate June 1, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 28, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 594 (SB 594-A) Page 8
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 594 (SB 594-A) Page 9