Chapter 500 Oregon Laws 1999

Session Law

AN ACT

SB 246

Relating to taxation; creating new provisions; and amending ORS 308.156, 311.206 and 311.216.

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

SECTION 1. ORS 308.156 is amended to read:

308.156. (1) If property is subdivided or partitioned after January 1 of the preceding assessment year and on or before January 1 of the current assessment year, then the property's maximum assessed value shall be established as provided under this section.

(2) If, after January 1 of the preceding assessment year and on or before January 1 of the current assessment year, property is rezoned and used consistently with the rezoning, the property's maximum assessed value shall be established under this section.

(3)(a) [If, after January 1 of the preceding assessment year and on or before January 1 of the current assessment year,] For the first tax year for which property is added to the property tax account as omitted property, the property's maximum assessed value shall be established under this section.

(b) For tax years subsequent to the first tax year for which property is added to the property tax account as omitted property, the property's maximum assessed value shall be determined as otherwise provided by law, taking into account the maximum assessed value of the property as determined under this section.

(4)(a) If property was subject to exemption, partial exemption or special assessment as of the January 1 assessment date of the preceding assessment year and is disqualified from exemption, partial exemption or special assessment as of the January 1 of the current assessment year, the property's maximum assessed value shall be established under this section.

(b) If property described in this subsection is eligible for a different type of exemption, partial exemption or special assessment as of January 1 of the current assessment year, the property's maximum assessed value shall be established under the provision granting the partial exemption or special assessment.

(5) The property's maximum assessed value shall be the sum of:

(a) The maximum assessed value determined under ORS 308.146 that is allocable to that portion of the property not affected by an event described in subsections (1), (2), (3) or (4)(a) of this section; and

(b) The product of the value of that portion of the property that is affected by an event described in subsections (1), (2), (3) or (4)(a) of this section multiplied by the ratio of the average maximum assessed value over the average real market value for the assessment year in the same area and property class.

(6) 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.

(7) The Department of Revenue shall provide by rule the method by which the allocations described in subsection (5) of this section are to be made.

SECTION 2. In the case of omitted property that is first added to a property tax account:

(1) For a tax year beginning on or before July 1, 1994, the maximum assessed value of the property, including the omitted property, shall be determined for the tax year beginning July 1, 1997, under section 2, chapter 541, Oregon Laws 1997, or as otherwise provided by law.

(2) For a tax year beginning on or after July 1, 1995, and before July 1, 1997:

(a) The omitted property shall be treated, solely for purposes of the determination of maximum assessed value, as first added to the property tax account for the tax year beginning July 1, 1997; and

(b) The maximum assessed value of the property, including the omitted property, shall be determined as provided under ORS 308.156.

SECTION 3. ORS 311.206 is amended to read:

311.206. (1) When the roll is corrected under ORS 311.205, and taxes are added to the roll or taxes already on the roll are increased, the additional taxes becoming due shall be payable without interest if paid in the period prior to the 16th of the month next following the month of the correction.

(2)(a) If the additional taxes are not paid within [such] the period described in subsection (1) of this section, the additional taxes shall thereafter be considered for all purposes of collection and enforcement of payment as having become delinquent on the date they would normally have become delinquent if the additional taxes had been timely extended on the roll or rolls in the year or years for which the correction was made.

(b) The additional taxes [and] shall bear interest at the rate provided in ORS 311.505 beginning with the 16th of the month next following the month of the correction, until paid.

(3) Notwithstanding subsection (1) or (2) of this section or other provision of law establishing the delinquency date for additional taxes, additional taxes may not be assessed and imposed if the correction is a result of:

(a) The disqualification of property from a tax exemption granted erroneously by a tax official; or

(b) The failure by a tax official to timely disqualify property from a tax exemption.

(4) Subsection (3) of this section does not apply to a failure by a tax official to timely disqualify property from a tax exemption if the property owner fails to timely notify the assessor of a change in use of the property to a nonexempt use.

SECTION 4. ORS 311.216 is amended to read:

311.216. (1) Whenever the assessor discovers or receives credible information, or if the assessor has reason to believe that any real or personal property, including property subject to assessment by the Department of Revenue, or any buildings, structures, improvements or timber on land previously assessed without the same, has from any cause been omitted, in whole or in part, from assessment and taxation on the current assessment and tax rolls or on any such rolls for any year or years not exceeding five years prior to the last roll so returned, the assessor shall give notice as provided in ORS 311.219.

(2) Property or the excess cost of property, after adjustment to reflect real market value, shall be presumed to be omitted property subject to additional assessment as provided in ORS 311.216 to 311.232, whenever the assessor discovers or receives credible information:

(a) That the addition of any building, structure, improvement, machinery or equipment was not reported in a [real property] return filed under ORS 308.285 or 308.290[,]; or

(b) That the cost as of January 1 of any building, structure, improvement, machinery or equipment reported in a [real property] return required by the assessor under ORS 308.285 or 308.290 exceeds the cost stated in the return[, the property, or the excess cost adjusted to reflect its contribution to real market value, shall be presumed to be omitted property subject to additional assessment as provided in ORS 311.216 to 311.232].

(3) If the tax collector discovers or receives credible information or if the tax collector has reason to believe that any property subject to taxation has been omitted from the tax roll, the tax collector shall immediately bring this to the attention of the assessor by written notice.

Approved by the Governor July 6, 1999

Filed in the office of Secretary of State July 6, 1999

Effective date October 23, 1999

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