Chapter 701 Oregon Laws 1999

Session Law

AN ACT

HB 2139

Relating to tax administration funding; creating new provisions; amending ORS 306.815, 311.505 and 311.508 and sections 6, 15 and 23, chapter 796, Oregon Laws 1989; repealing ORS 311.500; and appropriating money.

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

SECTION 1. ORS 311.505 is amended to read:

311.505. (1) Except as provided in subsection (6) of this section, the first one-third of all taxes and other charges due from the taxpayer or property, levied or imposed and charged on the latest tax roll, shall be paid on or before November 15, the second one-third on or before February 15, and the remaining one-third on or before May 15 next following.

(2) Interest shall be charged and collected on any taxes on property, other charges, and on any additional taxes or penalty imposed for disqualification of property for special assessment or exemption, or installment thereof not paid when due, at the rate of one and one-third percent per month, or fraction of a month until paid.

(3) Discounts shall be allowed on partial or full payments of such taxes, made on or before November 15 as follows:

(a) Two percent on two-thirds of such taxes so paid.

(b) Three percent where all of such taxes are so paid.

(4) For purposes of this section, "taxes" includes all taxes on property as defined in ORS 310.140 and certified to the assessor under ORS 310.060 except taxes assessed on any other property which have by any means become a lien against the property for which the payment was made.

(5) All interest collected and all discounts allowed shall be prorated to the several municipal corporations, taxing districts and governmental agencies sharing in the taxes or assessments.

(6) If the total property tax is less than $40, no installment payment of taxes shall be allowed.

SECTION 2. ORS 311.508 is amended to read:

311.508. (1) Except as provided under subsection (2) of this section and notwithstanding ORS 311.505 (5):

(a) Twenty-five percent of the interest charged and collected under ORS 311.505 [for periods beginning on or after July 1, 1989,] shall be deposited and credited to the County Assessment and Taxation Fund created under section 7, chapter 796, Oregon Laws 1989; and

(b) An additional 25 percent of the interest charged and collected under ORS 311.505 shall be deposited and credited to the County Assessment and Taxation Fund created under section 7, chapter 796, Oregon Laws 1989, to the extent the interest would otherwise be distributed to cities or other taxing districts that are not counties or districts within the public school system.

(2) On or before [June 15, 1990, and on or before each] June 15 of each year [thereafter], the Department of Revenue shall estimate the amount of interest that will be deposited and credited to the County Assessment Function Funding Assistance Account created under section 6, chapter 796, Oregon Laws 1989, for the ensuing fiscal year. If the estimate is less than $13 million, the department shall certify to each county treasurer an increase in the percentage specified under subsection (1)(a) of this section to the end that the estimate reaches $13 million. However, no increase in percentage shall be certified that will raise and make available for deposit and credit to the County Assessment Function Funding Assistance Account for the ensuing fiscal year an amount that is in excess of $3 million over the amount estimated under this subsection to be received under subsection (1)(a) of this section for the ensuing fiscal year.

(3) Upon receipt of certification from the department under subsection (2) of this section, the county treasurer shall deposit and credit to the County Assessment and Taxation Fund for the fiscal year to which the certification applies the percentage of the interest charged and collected under ORS 311.505 so certified.

(4) The percentage of the interest on unpaid taxes and penalties required to be deposited and credited to the County Assessment and Taxation Fund under this section shall be deposited and credited in the same manner that the remaining interest is deposited and credited under ORS 311.385.

SECTION 2a. Section 6, chapter 796, Oregon Laws 1989, is amended to read:

Sec. 6. (1) There is created under ORS 293.445 a suspense account to be known as the County Assessment Function Funding Assistance Account. The account shall consist of:

(a) All moneys paid over by the county treasurers as provided under section 7 [of this 1989 Act], chapter 796, Oregon Laws 1989; and

(b) All interest earned upon any moneys in the account.

(2) Of the moneys in the account as of the last day of each fiscal quarter, [10 percent] the moneys necessary to pay the following Department of Revenue expenses shall be transferred to a suspense account of the department created under ORS 293.445 and [is] are continuously appropriated to the department for [the following]:

(a) [To carry] Expenses incurred in carrying out the purposes of sections 2 to 6 [of this 1989 Act.], chapter 796, Oregon Laws 1989; and

(b) Appraisal expenses incurred by the department [of] in appraising secondary industrial properties identified under ORS 306.126.

(3) The total amount of moneys transferred to the suspense account of the department under subsection (2) of this section may not exceed 10 percent of the moneys in the account as of the last day of the fiscal quarter for which the transfer is being made.

[(3)] (4) The remainder of the moneys in the account as of the last day of the fiscal quarter shall be used for the purpose of making the grant payments to counties as required under section 3 [of this 1989 Act], chapter 796, Oregon Laws 1989, and are continuously appropriated to the department for that purpose.

SECTION 2b. The amendments to section 6, chapter 796, Oregon Laws 1989, by section 2a of this 1999 Act apply to County Assessment Function Funding Assistance Account transfers occurring on or after January 1, 2000.

SECTION 3. Section 15, chapter 796, Oregon Laws 1989, is amended to read:

Sec. 15. (1) Notwithstanding ORS 205.320, and in addition to and not in lieu of the fees charged and collected under ORS 205.320 and other fees, [a fee of $20] the following fees shall be charged and collected for the recording or filing of any instrument [conveying or contracting to convey any estate or interest in real property or any trust or power concerning real property.] described in ORS 205.130:

(a) A fee of $1, to be credited as provided in subsection (3)(a) of this section; and

(b) A fee of $10, to be credited as provided in subsection (3)(b) of this section.

(2) Subsection (1) of this section does not apply to the recording or filing of the following:

(a) Evidence of authority to solemnize marriages under ORS chapter 106;

(b) Instruments that are otherwise exempt from recording or filing fees under any provision of law; or

(c) Internal county government instruments not otherwise charged a recording or filing fee.

[(a) Instruments required to be recorded or filed in the records of mortgages or as provided under ORS 93.780 to 93.800.]

[(b) Instruments required to be recorded or filed in the records of statutory liens or in the County Clerk Lien Record described in ORS 205.130 (3)(c).]

[(c) Instruments described in ORS 205.246.]

[(d) Release, limitation or restriction of any power of appointment as described under ORS 93.220.]

[(e) Instruments for the filing or recording of which no fee is charged under ORS 205.320, including but not limited to those instruments described in ORS 93.690 and 205.400, or an instrument that conveys or contracts to convey a license or an easement to this state or to a political subdivision of this state, or to a public utility. As used in this paragraph, "public utility" means any governmental or business entity that owns or operates any plant, equipment, property, franchise or license for the transmission of communications (including but not limited to telecommunications and televisions), or the production, transmission, sale, delivery or furnishing of electricity, gas, water or steam, and whose rates of charges for goods or services have been established or approved by a federal, state or local government or governmental agency. "Public utility" does not include a governmental or business entity that owns or operates any plant, equipment, property, franchise or license for the transportation of goods or services, including but not limited to motor, bus, air, rail or street rail.]

[(f) Death certificates recorded under ORS 205.130 and decrees of distribution filed in connection with an estate proceeding.]

[(g) Plats or vacations of plats recorded under ORS 92.100 or 271.230.]

[(h) Earnest money, preliminary sales agreement, options, rights of first refusal, profit a prendre and interests in timber.]

[(3) Except as provided under subsection (2) of this section, Subsection (1) of this section does apply to the recording or filing of the following:]

[(a) Instruments conveying an interest in real property required to be recorded in the records of deeds.]

[(b) Instruments contracting to convey title to any real property, or memorandum thereof.]

[(c) An instrument creating a license, easement, a leasehold interest, an oil, gas or other mineral estate.]

[(d) A certified copy of a deed or patent issued in accordance with ORS 93.230.]

[(e) An assignment of sheriff's certificate of sale of real property on execution or mortgage foreclosure as described in ORS 93.530.]

[(f) Instruments filed or recorded under the following, if they create or convey an interest in real property as described under paragraphs (a) to (e) of this subsection: ORS 93.730, 93.760, or 93.770.]

[(g) Instruments described under paragraph (a) to (f) of this subsection executed by a personal representative or any decree of distribution vesting title to real property filed under ORS 116.223.]

[(4) The Department of Revenue may adopt rules consistent with subsections (1) to (3) of this section that further describe the instruments for which the additional fee charged under subsection (1) of this section for recording and filing shall be charged and collected.]

[(5)] (3) Of the amounts charged and collected under this section[, five percent shall be charged and collected for the benefit of the county. The remaining 95 percent shall be deposited and credited]:

(a) The recording or filing fee charged and collected under subsection (1)(a) of this section shall be deposited and credited to the Oregon Land Information System Fund established under section 7 of this 1999 Act; and

(b) Of the recording or filing fee charged and collected under subsection (1)(b) of this section, five percent shall be credited for the benefit of the county and 95 percent shall be deposited and credited to the County Assessment and Taxation Fund created under section 7, chapter 796, Oregon Laws 1989 [of this 1989 Act].

SECTION 4. Section 23, chapter 796, Oregon Laws 1989, as amended by section 6, chapter 782, Oregon Laws 1997, is amended to read:

Sec. 23. Section 15, chapter 796, Oregon Laws 1989, applies to instruments filed or recorded on or after January 1, 1990[, and before July 1, 2000].

SECTION 5. The amendments to section 15, chapter 796, Oregon Laws 1989, by section 3 of this 1999 Act apply to instruments recorded or filed on or after January 1, 2000.

SECTION 6. ORS 306.815 is amended to read:

306.815. (1) A city, county, district or other political subdivision or municipal corporation of this state shall not impose, by ordinance or other law, a tax or fee upon the transfer of a fee estate in real property, or measured by the consideration paid or received upon transfer of a fee estate in real property.

(2) A tax or fee upon the transfer of a fee estate in real property does not include any fee or charge that becomes due or payable at the time of transfer of a fee estate in real property, unless that fee or charge is imposed upon the right, privilege or act of transferring title to real property.

(3) Subsection (1) of this section does not apply to any fee established under ORS 203.148.

(4) Subsection (1) of this section does not apply to any tax if the ordinance or other law imposing the tax is in effect and operative on March 31, 1997.

(5) Subsection (1) of this section does not apply to any tax [if the ordinance or other law imposing the tax first becomes effective or operative on or after July 1, 2000] or fee that is imposed upon the transfer of a fee estate in real property if the fee that is imposed under section 15, chapter 796, Oregon Laws 1989, for the recording or filing of the instrument conveying the real property being transferred is less than $11.

SECTION 7. (1) The Oregon Land Information System Fund is created, separate and distinct from the General Fund.

(2) Moneys in the Oregon Land Information System Fund are continuously appropriated to the Department of Revenue for the purpose of funding a base map system to be used in administering the ad valorem property tax system.

SECTION 8. (1) The Department of Revenue shall develop a base map system to facilitate and improve the administration of the ad valorem property tax system.

(2) In developing the base map system, the department shall be advised by an advisory committee that is hereby created and that shall be known as the Oregon Land Information System Advisory Committee. The advisory committee shall advise the department concerning the administrative and public needs related to the development of the base map system.

(3) The advisory committee shall consist of individuals appointed to the committee by the Director of the Department of Revenue.

SECTION 9. (1) The Department of Revenue, in consultation with the county governing bodies and the county assessors of this state, shall conduct a study of the appropriate level of funding for property assessment and taxation functions, and funding sources for property tax administration. In addition to a general review of the appropriate level of funding for property assessment and taxation functions, the study shall consider whether the level of funding in effect following enactment of this 1999 Act:

(a) Promotes stable tax administration and the development of high quality property appraisal data and mapping;

(b) Is sufficient to allow county assessors and the department to meet the service expectations of private sector users of property appraisal data and mapping; and

(c) Results in an appropriate sharing of costs between public and private sector users of property appraisal data and mapping.

(2) The study shall also consider various means to improve cost efficiency in the property assessment process including, but not limited to, consideration of the extent to which efficiency is improved through department assessment of property instead of county assessment of property.

(3) The department shall report the findings of the study to those interim committees of the Seventy-second Legislative Assembly having jurisdiction over property tax matters no later than December 31, 2004.

SECTION 10. ORS 311.500 is repealed on January 1, 2000.

Approved by the Governor July 14, 1999

Filed in the office of Secretary of State July 15, 1999

Effective date October 23, 1999

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