Chapter 223 Oregon Laws 1999

Session Law

AN ACT

HB 2125

Relating to taxation; creating new provisions; and amending ORS 308.142, 308.515, 308.520, 308.570, 308.595, 308.600, 308.640 and 308.820.

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

SECTION 1. ORS 308.515 is amended to read:

308.515. (1) The Department of Revenue shall make an annual assessment, upon an assessment roll to be prepared by the division of the department charged with property tax administration, of the following property having a situs in this state:

(a) Except as provided in subsection (2) of this section, any property used or held for its own future use by any company in performing or maintaining any of the following businesses or services or in selling any of the following commodities, whether in domestic or interstate commerce or both, and whether mutually, or for hire, sale or consumption by other persons: Railroad transportation; railroad switching and terminal; electric rail and trackless trolley transportation; [sleeping car; refrigerator car; private car; tank car] private railcar transportation; air transportation; water transportation upon inland waters of the State of Oregon; air or railway express; communication; heating; gas; electricity; pipeline; toll bridge.

(b) [Refrigeration, tank and private cars] Private railcars of all companies not included in paragraph (a) of this subsection, where such cars are rented, leased or used in railroad transportation for hire.

(2) There shall not be assessed under subsection (1) of this section:

(a) Any property used by or for water transportation companies whose watercraft ply exclusively (A) on the high seas, or (B) between the high seas and inland water ports or termini, or (C) a combination of (A) and (B), or (D) as ferries operating directly across interstate rivers.

(b) Any property used by or for water transportation companies exclusively for hire by other persons for booming and rafting; dredging; log or marine salvage; ship berthing, maintenance, sludge removal, cleaning or repair; marine or water-based construction; or guide service.

(d) Any property of the National Railroad Passenger Corporation so long as federal law prohibits such company from paying ad valorem taxes. All unpaid ad valorem taxes levied prior to October 15, 1983, are void and the taxes shall be removed from the assessment and tax rolls.

(e) Any aircraft that is required to be registered under ORS 837.040 for all or any part of the calendar year, and which is not used to provide scheduled passenger service.

(3) For the purposes of this section, ORS 308.256 and 308.550, "inland water" or "inland waters" shall mean all water or waters within the State of Oregon, all interstate rivers touching Oregon and all tidewaters extending to the ocean bars.

(4) Any corporation included within subsection (1) of this section, to the extent that it actively engages in any business or service not described therein or not incidental to any business or service or sale of a commodity described therein, shall not to that extent be deemed a corporation whose properties are assessed under ORS 308.505 to 308.665.

(5) Any company, to the extent that it furnishes undiluted liquefied or industrial gas in bottles, tanks or similar containers, whether or not through pipe in a gaseous form, is not a gas company under subsection (1) of this section. A company is not an electric company under subsection (1) of this section if:

(a) The company generates electricity primarily for the company's own use, but makes incidental sales of the company's surplus electricity; or

(b)(A) The company's generating facility is primarily fueled by wood waste or other biomass fuel;

(B) The generating facility has a maximum capacity of 20 megawatts; and

(C) The company, if selling the generated electricity, does so only directly to an electric utility for the utility's distribution to utility customers.

(6) The provisions of ORS 308.505 to 308.665 shall be construed to subject to assessment by the department the property owned, leased or occupied by a legal entity not yet engaged in a business, service or sale of commodity enumerated in this section, which is intended for operation or use in such a business, service or sale of commodity.

(7) As used in this section, "electric utility" has the meaning given that term in ORS 758.505.

SECTION 2. ORS 308.520 is amended to read:

308.520. (1) Each company shall make and file with the Department of Revenue, on or before February 1 of each year, in such form [and on such blanks] as the department may provide, a statement, under oath, made by the president, secretary, treasurer, superintendent or chief officer of the company, covering a period of at least one year [and not exceeding five years], as may be required by the department; except that Class I railroads, Class A electric companies, [class A telephone companies, class A] communication companies, gas companies, [class A] large water transportation companies, pipeline companies, air transportation companies[, telegraph companies and sleeping car, private car, tank car and refrigerator car] and private railcar companies shall file such statement on or before March 15 of each year.

(2) As used in this section, "large water transportation company" means a water transportation company with annual gross revenue exceeding $2 million, of which at least 50 percent of the gross revenue is derived from the transportation of freight.

SECTION 3. ORS 308.570 is amended to read:

308.570. In the assessment of the property of any company conducting transportation or operating over rail lines, except any [sleeping car, refrigerator car, tank car or private car company, the real market value of whose personal property is less than $300,000] private railcar company with personal property that does not exceed $1 million in real market value, the Department of Revenue shall determine the value of each branch line of the company situated within this state and the mileage of such branch line, including miles of main tracks, spurs, yard and sidetracks, and shall determine the values per mile of such branch line by dividing its value by the mileage thereof. The department shall deduct the total amount so determined as the value of branch lines from the total value of the property of the company, assessable under ORS 308.505 to 308.665, and shall determine the values per mile of the main line of such company by dividing the remainder by the number of miles of the main line, taking into consideration miles of main tracks, spurs, yard and sidetracks. Each mile of spurs, yard and sidetracks shall be valued at not to exceed 50 percent of the value per mile assigned to the main track of the branch or main line with which they are connected.

SECTION 4. ORS 308.640 is amended to read:

308.640. (1) When [the assessment of the personal property of any sleeping car, refrigerator car, tank line or private car company, made and equalized by the Department of Revenue, is in a real market value of less than $300,000, the department] the Department of Revenue assesses a private railcar company with personal property that does not exceed $1 million in real market value, the department shall determine the assessed value thereof by multiplying [such] the real market value of the company's personal property by the average ratio of assessed value to real market value of all properties of [such companies in] private railcar companies with personal property with a real market value [of $300,000 or more] exceeding $1 million, as computed and determined by the department for the current year.

(2) The department [then] shall determine the tax to be [charged] imposed on [the property covered by each such assessment] private railcar companies with personal property that does not exceed $1 million in real market value as follows:

(a) Taxes to be credited to the county school funds shall be calculated by applying to the assessed value of the property the average school tax rate in the state for the immediately prior tax year, applying to the assessed values [of the personal properties of all other sleeping car, refrigerator car, tank line and private car companies] of private railcar companies with personal property, the real market value of which exceeds $1 million, as compiled and determined by the department for [such] the year.

(b) Taxes to be credited to the county general funds shall be calculated by applying to the assessed value thereof the average non-school tax rate in the state for the immediately prior tax year, applying to the assessed values [of the personal properties of all other sleeping car, refrigerator car, tank line and private car companies,] of private railcar companies with personal property, the real market value of which exceeds $1 million, as compiled and determined by the department for [such] the year.

(c) The taxes determined under this subsection shall not be imposed in an amount that exceeds the limits established in ORS 310.150 for any year.

[(2)] (3) The Department of Revenue hereby is empowered to charge, levy and collect the tax so determined on the personal property of any such company having a taxable situs in this state. Each tax so charged and levied shall constitute a lien as of July 1 of the tax year on all the personal property of the company within this state and shall be payable in the same manner, at the same due dates and with the same rates of discount or interest provided by law in respect to taxes on personal property payable in the several counties. In collecting such taxes, the Department of Revenue may pursue any or all of the rights, remedies or processes provided by law for the collection of delinquent taxes on personal property and, in connection therewith, the department shall have, in any county, the power and authority of the sheriff and tax collector thereof.

[(3)] (4) Moneys collected by the department under this section shall be apportioned to each county in the proportion that the portion of the assessed value of [cars of subject companies having a real market value exceeding $300,000] cars of private railcar companies with personal property, the real market value of which exceeds $1 million, and that is attributable to the county bears to the total assessed value of [cars of subject companies having a real market value exceeding $300,000] cars of private railcar companies with personal property, the real market value of which exceeds $1 million. Moneys so distributed to each county treasurer shall be credited to the county school fund and general fund of the county as directed by the department.

[(4)] (5) Real property of such companies shall be apportioned to the several counties according to the situs thereof.

SECTION 5. ORS 308.595 is amended to read:

308.595. (1) The Director of the Department of Revenue, while reviewing and apportioning the assessment roll, shall not increase the valuation of any property on the assessment roll or add omitted property thereto without giving to the company or person in whose name it is assessed at least six days' written notice to appear and show cause, if any, why the valuation of the assessable property of such company or person, or some part thereof, to be specified in the notice, shall not be increased, or why the property should not be added to the roll; but a notice shall not be necessary if the person or company appears voluntarily before the director and is there notified by the director that the property of the person or company, or some specified part thereof is, in the opinion of the director, assessed below its assessed value or has been omitted from the roll.

(2) Not later than 20 days prior to the day the director is required by law to review the roll, the Department of Revenue shall mail to each company assessed by it notice of the amount it has placed or intends to place on the roll as the assessment of the company's property. The notice shall be mailed to the last-known address of the company. Failure of the department to mail such notice shall not invalidate any assessment. From and after the date of such notice the department shall maintain in its office at Salem for the inspection of the company the tentative assessment and apportionment of its assessment to the several counties.

(3) A request for a conference on the notice of assessment may be taken to the Director of the Department of Revenue for reduction or correction in the valuation or apportionment of a particular assessment. A request for a conference on the value contained in the notice must be filed no later than the second Monday in June, prior to the July 1 beginning of the tax year. If the department fails to mail the notice at the time provided in subsection (2) of this section, the time for filing a request for a conference shall be extended for 10 days after the second Monday in June. The director shall hold conferences and issue orders on all conferences under this subsection. The director shall issue the orders no later than the following [July 15] August 1.

(4) The provisions of ORS chapter 305 shall apply to appeals to the Oregon Tax Court.

SECTION 6. ORS 308.600 is amended to read:

308.600. The Director of the Department of Revenue, sitting for the purpose of reviewing and apportioning the assessment roll, shall continue sessions from day to day, exclusive of Sundays and legal holidays, until the examination, review, correction, equalization and apportionment of the roll is completed.[; but] The director shall complete the examination, review, correction, equalization and apportionment [within one month from the time the director is by law required to begin examination of the roll. Unless sooner completed, at the expiration of one month from the time the director receives the roll under ORS 308.585, the examination, review, correction, equalization and apportionment of the assessment roll shall be deemed to be complete] of the roll by August 1 of the tax year.

SECTION 7. ORS 308.142 is amended to read:

308.142. For purposes of determining whether the assessed value of property exceeds the property's maximum assessed value permitted under section 11, Article XI of the Oregon Constitution:

(1) "Property" means:

(a) All property included within a single property tax account; or

(b) In the case of property that is centrally assessed under ORS 308.505 to 308.665, the total statewide value of all property assessed to a company or utility that is subject to ORS 308.505 to 308.665.

(2) "Property tax account" means the administrative division of property for purposes of listing on the assessment roll under ORS 308.215 for the tax year for which maximum assessed value is being determined or, in the case of a [small car] private railcar company, the administrative division provided under ORS 308.640.

SECTION 8. The amendments to ORS 308.142, 308.515, 308.520, 308.570, 308.595, 308.600 and 308.640 by sections 1 to 7 of this 1999 Act apply to tax years beginning on or after July 1, 1999.

SECTION 9. ORS 308.820 is amended to read:

308.820. (1) All taxes levied under ORS 308.805 shall be a debt due and owing from the association and shall be a lien on all the property, real and personal, of [such associations] the association from February 1 of each year. [Interest shall be charged and collected on any taxes not paid when due at the rate of one percent per month or fraction of a month until paid. Such] The taxes shall be delinquent if not paid within 30 days of the due date thereof. Interest shall be charged on the delinquent taxes in the manner prescribed in ORS 305.220.

(2) The Department of Revenue shall enforce collection of the taxes levied under ORS 308.805 and immediately after the delinquency date thereof shall institute an action for the collection of such taxes, together with interest, costs and other lawful charges thereon. The department shall have the benefit of all laws of this state pertaining to provisional remedies against the properties, either real or personal, of such associations, without the necessity of filing either an affidavit or undertaking, as otherwise provided by law.

Approved by the Governor June 7, 1999

Filed in the office of Secretary of State June 7, 1999

Effective date October 23, 1999

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