76th OREGON LEGISLATIVE ASSEMBLY--2012 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 166
B-Engrossed
House Bill 4039
Ordered by the Senate February 15
Including House Amendments dated February 7 and Senate Amendments
dated February 15
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Revenue)
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.
Requires lender to notify potential borrower of prohibition
against pledging tax-deferred homestead as security for reverse
mortgage.
Allows taxpayer to elect to credit payments to deferred taxes
payable as result of determination of ineligibility.
Specifies classification of homesteads for purposes of
determining county median RMV.
Requires Department of Revenue to certify eligibility for
deferral not less than once every three years.
Requires department to report to interim committee regarding
claim form for homestead property tax deferral program for
property tax year beginning on July 1, 2012.
Requires department to develop data gathering instrument to
gather certain data related to taxpayers participating in
homestead property tax deferral program.
Delays, until property tax years beginning on or after July 1,
2013, prohibition on deferral of homestead property taxes for
certain homesteads pledged as security for reverse mortgage.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax deferral programs; creating new provisions;
amending ORS 311.356, 311.666 and 311.689; and prescribing an
effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Before entering into an agreement with a
borrower for a reverse mortgage, the lender shall notify the
borrower in writing of the provisions of ORS 311.700 (2). + }
SECTION 2. ORS 311.356 is amended to read:
311.356. (1) After receipt of the tax roll each year the tax
collector shall receive and receipt for all moneys received for
taxes and other amounts charged on such roll, and for each
payment, shall note on the tax roll at the appropriate property
assessment the following:
(a) The date payment was received.
(b) The amount of the payment.
(c) The discount allowed, if any.
(d) The interest charged, if any.
(e) The number of the receipt issued for such payment.
(2) Except as provided under subsection (3)(a) and (c) of this
section, the tax collector shall credit all payments of property
taxes as follows:
(a) First, to the payment of any taxes assessed against and due
on the property for which the payment was made, paying first the
earliest such taxes due on that property; and
(b) Second, to the payment of taxes assessed on any other
property which have by any means become a lien against the
property for which the payment was made.
(3)(a) Payments of property taxes made by the state on behalf
of tax-deferred homestead property under ORS 311.666 to 311.701
shall be credited to the current tax year.
(b) At the election of the taxpayer, payments of property taxes
made by the taxpayer on behalf of tax-deferred homestead property
under ORS 311.666 to 311.701 shall be credited as provided in
subsection (2) of this section, except that the payments shall be
credited first to the payment of taxes that are not qualified to
be deferred under ORS 311.688 (1) { + or as a result of a
determination of ineligibility made pursuant to ORS 311.689
(1) + }, paying first the earliest of such taxes due on that
property.
(c) Notwithstanding any contrary direction from the taxpayer,
the tax collector shall credit payments of property taxes to the
latest year for which taxes are due on the property for which
payment is made if:
(A) The payment is made by a payer who is a mortgagee,
beneficiary under a deed of trust or vendor under a land sales
contract and who pays taxes on behalf of any taxpayer; and
(B) The mortgagee, beneficiary or vendor directs that the
payment be credited to the latest year for which taxes are due on
the property; and
(C) The mortgagee, beneficiary or vendor includes in the
payment submitted with the direction given under subparagraph (B)
of this paragraph only the amounts for the payment of taxes on
one or more properties for which delinquent taxes are owed and
does not include in that payment taxes on property for which no
delinquent taxes are owed.
(d) If the mortgagee, beneficiary or vendor does not direct the
tax collector as to the application of taxes being paid, then the
tax collector shall apply all payments as provided under
subsection (2) of this section.
(4) The tax collector may, for convenience, divide the tax
roll, as payments are made, into two portions, and file each
separately, one portion containing the paid accounts and another
portion containing the unpaid accounts. From time to time, and no
later than the receipt of the next year's tax roll, the tax
collector shall compute and indicate on the tax roll the unpaid
balance of taxes for each property assessment.
SECTION 3. ORS 311.666 is amended to read:
311.666. As used in ORS 311.666 to 311.701:
(1) 'County median RMV' means the median real market value
entered on the last certified assessment and tax roll for all
residential improved properties in the county in which a
homestead is located { + that are classified as 1-0-1 pursuant
to the rule adopted by the Department of Revenue under ORS
308.215 + }.
(2) 'Homestead' means the owner occupied principal dwelling,
either real or personal property, owned by the taxpayer and the
tax lot upon which it is located. If the homestead is located in
a multiunit building, the homestead is the portion of the
building actually used as the principal dwelling and its
percentage of the value of the common elements and of the value
of the tax lot upon which it is built. The percentage is the
value of the unit consisting of the homestead compared to the
total value of the building exclusive of the common elements, if
any.
(3) 'Household income' has the meaning given that term in ORS
310.630.
(4)(a) 'Net worth' means the sum of the current market value of
all assets, including real property, cash, savings accounts,
bonds and other investments, after deducting outstanding
liabilities.
(b) 'Net worth' does not include the value of a homestead for
which deferral is claimed under ORS 311.666 to 311.701, the cash
value of life insurance policies on the life of a taxpayer or
tangible personal property owned by a taxpayer.
(5) 'Person with a disability' means an individual who has been
determined to be eligible to receive or who is receiving federal
Social Security benefits due to disability or blindness,
including an individual who is receiving Social Security survivor
benefits in lieu of Social Security benefits due to disability or
blindness.
(6) 'Tax-deferred property' means the property upon which taxes
are deferred under ORS 311.666 to 311.701.
(7) 'Taxes' or 'property taxes' means ad valorem taxes,
assessments, fees and charges entered on the assessment and tax
roll.
(8) 'Taxpayer' means an individual who has filed, as an
individual or jointly, a claim for deferral under ORS 311.666 to
311.701.
(9)(a) 'Transferee' means, without limitation, an heir,
legatee, devisee, distributee of an estate of a deceased
individual, the assignee or donee of an insolvent individual or a
person acting in a fiduciary capacity on behalf of a transferee.
(b) 'Transferee' does not mean a bona fide purchaser for value.
(10) '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.
SECTION 4. ORS 311.689 is amended to read:
311.689. (1) { + (a) + } { - On or before April 15 of the
third year for which deferral under ORS 311.666 to 311.701 is
claimed and every two years thereafter, all taxpayers claiming
the deferral must certify to the county assessor that the
homestead remains eligible for, and the taxpayers remain eligible
to claim, the deferral. - } { + The Department of Revenue shall
certify the eligibility of each homestead granted, and the
respective taxpayers claiming, deferral under ORS 311.666 to
311.701, not less than once every three years.
(b) The department shall notify the taxpayers in writing of the
obligation to certify eligibility under this subsection and the
taxpayers shall respond, by the means prescribed by the
department, within 65 days after the department sends the
notification.
(c) Failure to respond as required under paragraph (b) of this
subsection renders the homestead ineligible for deferral for the
next following property tax year. + }
(2)(a) For any year in which the household income of the
taxpayers exceeds the amounts allowable under ORS 311.668, the
property taxes deferred under ORS 311.666 to 311.701 for that
year, including accrued interest, become payable by the
applicable due date prescribed in ORS 311.686 (1)(b) or (2).
(b) The provisions of ORS chapters 305 and 314 apply to this
subsection in the same manner as those provisions are applicable
to an income tax deficiency.
(c) The amount of deferred taxes payable under this subsection
shall bear interest from the date paid by the department { - of
Revenue - } until paid at the rate established under ORS 305.220
for deficiencies.
(d) A deficiency may not be assessed under this subsection if
notice is not given to the taxpayer or spouse within three years
after the date that the department has paid the deferred taxes to
the county.
(e) Upon payment of the amount assessed as a deficiency under
this subsection and any interest, the department shall execute a
release in the amount of the payment. The release shall be
conclusive evidence of the removal and extinguishment of the lien
under ORS 311.666 to 311.701 to the extent of the payment.
(3) Subsection (2) of this section does not affect the
continued deferral of taxes that have been deferred for tax years
beginning before a tax year to which subsection (2) of this
section applies or the deferral of taxes for tax years beginning
after a tax year to which subsection (2) of this section applies,
provided subsection (2) of this section does not apply to those
tax years.
(4) This section applies to all tax-deferred property, whether
the deferral under ORS 311.666 to 311.701 is claimed before or
after October 3, 1989.
SECTION 5. { + Not later than May 31, 2012, the Department of
Revenue shall report to the interim committees of the Legislative
Assembly related to revenue on the claim form to be supplied by
the department to taxpayers pursuant to ORS 311.672 (1)(a)(A) for
the property tax year beginning on July 1, 2012. + }
SECTION 6. { + (1) The Department of Revenue shall:
(a) In consultation with the Legislative Revenue Officer,
develop a data gathering instrument to gather detailed data
regarding the socioeconomic characteristics and financial
position relating to the tax-deferred homestead, of all taxpayers
participating in the homestead property tax deferral program
under ORS 311.666 to 311.701.
(b) As soon as practicable after the effective date of this
2012 Act, present a prototype of the data gathering instrument to
the interim committees of the Legislative Assembly related to
revenue for approval.
(c) Deliver the data gathering instrument, as approved by the
interim committees described in paragraph (b) of this subsection,
as a separate mailing to the participating taxpayers.
(d) Not later than January 31, 2013, report to the interim
committees of the Legislative Assembly related to revenue on the
data gathered pursuant to this section.
(2) Any costs associated with this section shall be considered
administrative expenses of the homestead property tax deferral
program under ORS 311.666 to 311.701. + }
SECTION 7. { + (1) Notwithstanding section 24 (1), chapter
723, Oregon Laws 2011, the amendments to ORS 311.700 by section
16, chapter 723, Oregon Laws 2011, apply to property tax years
beginning on or after July 1, 2013, for homesteads:
(a) That were determined, pursuant to chapter 723, Oregon Laws
2011, to be ineligible for deferral under ORS 311.666 to 311.701
solely because the homestead was pledged as security for a
reverse mortgage;
(b) That had been granted deferral under ORS 311.666 to 311.701
at the time of the determination of ineligibility; and
(c) For which an application for recertification of deferral
under ORS 311.666 to 311.701, as required pursuant to chapter
723, Oregon Laws 2011, was submitted on or before February 1,
2012, for the property tax year beginning on July 1, 2011.
(2) The Department of Revenue shall, as soon as practicable
after the effective date of this 2012 Act:
(a) Notify the respective tax collectors of homesteads to which
subsection (1) of this section applies; and
(b) Pay, in the manner prescribed under ORS 311.676, an amount
equivalent to the property taxes that are eligible for deferral
by operation of subsection (1) of this section.
(3) If property taxes that are eligible for deferral by
operation of subsection (1) of this section have not been paid,
any interest on the property taxes is abated.
(4)(a) The tax collector of the county in which a homestead
described in subsection (1) of this section is located shall
notify the governing body of the county of any refund required by
operation of subsection (1) of this section.
(b) Upon receipt of notice from the tax collector under
paragraph (a) of this subsection, the governing body shall cause
a refund of any amount of property taxes and interest on the
taxes that have been 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.
(c) A refund under this subsection shall be made without
interest.
(d) The county assessor and the tax collector shall make the
necessary corrections in the records of their offices. + }
SECTION 8. { + The amendments to ORS 311.356 by section 2 of
this 2012 Act apply to determinations of ineligibility made on or
after September 29, 2011. + }
SECTION 9. { + This 2012 Act takes effect on the 91st day
after the date on which the 2012 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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