Chapter 22 Oregon Laws 1999

Session Law

AN ACT

HB 2047

Relating to taxation; amending ORS 311.356, 311.691 and 312.120.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 312.120 is amended to read:

312.120. (1) Except as provided in ORS 312.122, all real properties sold to the county under ORS 312.100, shall be held by the county for the period of two years from and after the date of the judgment and decree of foreclosure, unless sooner redeemed.

(2) During the two-year period any person having an interest in the property at the date of the judgment and decree of foreclosure, or any heir or devisee of such person, or any person holding a lien of record on the property, or any municipal corporation having a lien on the property, may redeem the property by payment of the full amount applicable to the property under the judgment and decree, with interest thereon as provided by law, plus a penalty of five percent of the total amount applicable to the property under the judgment and decree and a fee [of $50] as specified under subsection (5) of this section. The penalty of five percent and fee shall be in lieu of all costs chargeable against the property in connection with the foreclosure proceeding. The fee [of $50] shall be used to defray the costs, among other costs, incurred by the county to provide the notices of redemption period expiration to lienholders and others required under ORS 312.125.

(3) Property so redeemed shall be subject to assessment for taxation during the period of redemption, as though it had continued in private ownership.

(4) Any person holding a mortgage or other lien of record covering a part only of a particular parcel of real property included in the judgment and decree of foreclosure may redeem such part by payment of the proportionate amount applicable thereto under the judgment and decree.

(5) The fee specified by this subsection is as follows:

(a) If the property is redeemed before the date the notice by certified mail required by ORS 312.125 is given, $50.

(b) If the property is redeemed on or after the date the notice by certified mail required by ORS 312.125 is given, the greater of $50 or the actual cost to the county for a title search and other expenses related to obtaining a title search.

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.

(d) The interest charged, if any.

(e) The number of the receipt issued for such payment.

(2) Except as provided under subsection (3)(a)[, (b)] 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 [but only to the extent necessary to reduce the amounts of delinquent taxes for each year to $1,000, and thereby allow to the taxpayer the benefits of ORS 311.691 and 311.693 which allow a delay in foreclosure for delinquent property tax amounts on tax-deferred homestead property that are not in excess of $1,000], 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 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 311.691 is amended to read:

311.691. (1) Notwithstanding any provision of ORS chapter 312 to the contrary and ORS 311.696 (1), upon compliance with ORS 311.693, taxes[, not in excess of $1,000,] assessed against a tax-deferred homestead for any tax year [beginning on or after July 1, 1978,] that were unpaid as of July 1 of the tax year for which homestead property tax deferral was initially granted under ORS 311.666 to 311.701, and that remain unpaid, shall remain a lien and shall become delinquent as otherwise provided by law, but shall not be subject to foreclosure under ORS chapter 312 until August 15 of the calendar year following the calendar year in which one of the circumstances listed in ORS 311.684 (1) to (4) occurs.

(2) This section does not apply if:

(a) The tax-deferred homestead property is a manufactured structure or floating home and is moved out of state;

(b) Except in the case of a manufactured structure or floating home, the tax-deferred homestead property is personal property; or

(c) The owner of the tax-deferred homestead property has household income, for the calendar year immediately preceding the calendar year in which application is filed under ORS 311.693, of $24,500 or more.

(3) If the property to which subsection (1) of this section applies has been included on a foreclosure list, or a decree of foreclosure entered, [and taxes in excess of $1,000 assessed against the property for the earliest year are paid,] the property shall be removed from the foreclosure list, or decree vacated, unless the proceeding against the property involves delinquent taxes other than those described in subsection (1) of this section.

(4) Upon removal from the foreclosure list, or upon vacation of the decree, no penalty shall be imposed under ORS 312.110 or 312.120. In lieu thereof, the penalty is abated, or if the penalty has been paid, upon application made to the county assessor on or before July 1 of the year immediately following the year of vacation or removal, the penalty shall be refunded out of the unsegregated tax collections account in the manner provided in ORS 311.806.

(5) Within 60 days after approval of an application under ORS 311.693, with respect to any property to which this section applies, the tax collector shall make the proper entries on the tax roll and shall remove the property from the foreclosure list and proceeding.

(6) If a decree has been entered foreclosing liens for delinquent taxes against any property which is the subject of an application filed under ORS 311.693, and the delinquent taxes include only those taxes described in subsection (1) of this section, or taxes in excess of those described in subsection (1) of this section are paid, the decree shall be null and void and of no effect and the tax collector shall make the proper entries on the assessment and tax rolls to reflect the vacation of the decree and to acknowledge the subsisting liens.

(7) Nothing in this section shall remove or release property to which this section applies from the lien of any unpaid tax thereon, but the unpaid taxes shall remain valid and subsisting liens as though the foreclosure proceeding had not been instituted or as though the foreclosure proceeding had not been instituted and a decree entered.

(8) Nothing in this section shall affect a foreclosure proceeding instituted, or a decree entered, to foreclose liens for delinquent taxes against properties subject to foreclosure if the delinquent taxes include taxes other than those described under subsection (1) of this section. Such foreclosure proceedings shall be instituted or continued without regard to this section and such decree shall be of full force and effect as if this section did not exist.

(9) Interest on taxes to which this section applies shall be determined from the same dates, in the same manner and until paid as for other property taxes remaining unpaid upon the due dates, upon preparation of the foreclosure list in accordance with ORS chapter 312 and subsection (1) of this section and upon entry and following a decree of foreclosure.

Approved by the Governor April 16, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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