Chapter 862 Oregon Laws 1999

Session Law

 

AN ACT

 

SB 125

 

Relating to taxation; creating new provisions; and amending ORS 311.206, 311.229 and 311.812.

 

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

 

      SECTION 1. 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. If not paid within such period, 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 timely extended on the roll or rolls in the year or years for which the correction was made 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] the additional taxes shall be added to the tax extended against the property on the general property tax roll for the tax year following the current tax year, to be collected and distributed in the same manner as other ad valorem property taxes imposed on the property. Notwithstanding ORS 311.205 (2)(b), for purposes of collection and enforcement, the additional taxes added to the roll under this subsection shall be considered delinquent as of the date the other taxes for the year in which the additional taxes are added to the roll become delinquent.

      (2) For purposes of this section, "additional taxes" includes increases in taxes that have already been extended on the roll.

      SECTION 1a. If Senate Bill 246 becomes law, section 1 of this 1999 Act (amending ORS 311.206) is repealed and ORS 311.206, as amended by section 3, chapter 500, Oregon Laws 1999 (Enrolled Senate Bill 246), is amended to read: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 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 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] the additional taxes shall be added to the tax extended against the property on the general property tax roll for the tax year following the current tax year, to be collected and distributed in the same manner as other ad valorem property taxes imposed on the property. Notwithstanding ORS 311.205 (2)(b), for purposes of collection and enforcement, the additional taxes added to the roll under this subsection shall be considered delinquent as of the date the other taxes for the year in which the additional taxes are added to the roll become delinquent.

      [(3)] (2) 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)] (3) Subsection [(3)] (2) 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.

      (4) For purposes of this section, "additional taxes" includes increases in taxes that have already been extended on the roll.

      SECTION 2. ORS 311.229 is amended to read:

      311.229. (1) When the taxes are added to an assessment or tax roll under ORS 311.216 to 311.232, [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. If not paid within such period, 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 timely extended on the roll or rolls in the year or years for which the correction was made 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] the additional taxes shall be added to the tax extended against the property on the general property tax roll for the tax year following the current tax year, to be collected and distributed in the same manner as other ad valorem property taxes imposed on the property. Notwithstanding ORS 311.226, for purposes of collection and enforcement, the additional taxes added to the roll under this subsection shall be considered delinquent as of the date the other taxes for the year in which the additional taxes are added to the roll become delinquent.

      (2) When it appears to the satisfaction of the assessor that the omission of the property was due to a willful attempt to evade the payment of taxes on the property, then the assessor shall so advise the tax collector and interest at the rate provided in ORS 311.505 (2) shall be added to the amounts so charged, which interest shall be computed from the date or dates that payment of the charges were properly due, and which interest shall continue to run until payment of the charges.

      (3) For purposes of this section, "additional taxes" includes increases in taxes that have already been extended on the roll.

      SECTION 3. The amendments to ORS 311.206 and 311.229 by sections 1 and 2 of this 1999 Act apply to assessment and tax roll corrections of error or omission occurring on or after the effective date of this 1999 Act.

      SECTION 3a. If Senate Bill 246 becomes law, section 3 of this 1999 Act is amended to read:

      Sec. 3. The amendments to ORS 311.206 and 311.229 by sections [1] 1a and 2 of this 1999 Act apply to assessment and tax roll corrections of error or omission occurring on or after the effective date of this 1999 Act.

      SECTION 4. (1) This section applies if:

      (a) Omitted property was added to the assessment and tax roll between January 1, 1998, and December 31, 1998;

      (b) The omitted property was added to the assessment and tax rolls for five tax years beginning with the tax year beginning July 1, 1993, and ending with the tax year beginning July 1, 1997;

      (c) The omitted property consists of residential property; and

      (d) The property was omitted as a result of an error by the county assessor in which the property was initially appraised by the assessor at a time when new construction was only partially completed and the assessor failed to reappraise the property following completion of the new construction.

      (2) If additional taxes described in subsection (1) of this section remain unpaid on the effective date of this 1999 Act:

      (a) All foreclosure proceedings or other collection efforts shall be canceled;

      (b) The additional taxes shall be removed from the assessment and tax roll as of the effective date of this 1999 Act;

      (c) That portion of the additional taxes attributable to the county in which the property is located shall be waived;

      (d) The remaining additional taxes shall be considered to be added to the tax roll for the tax year beginning July 1, 2000;

      (e) All interest accrued between the time the additional taxes were first considered delinquent under ORS 311.206 (1997 Edition) or 311.229 (1997 Edition) and the effective date of this 1999 Act shall be waived; and

      (f) The county tax collector shall send a notice to the property owner or other person entitled to notice under ORS 311.219, explaining the changes to the treatment of additional tax being made as a result of this section and the amendments to ORS 311.206 and 311.229 by sections 1 and 2 of this 1999 Act. The notice shall also state the amount of additional taxes that will be added to the assessment and tax roll for the tax year beginning July 1, 2000.

      (3) Additional taxes added to the assessment and tax roll under subsection (2) of this section shall constitute a lien on the property as of the date the additional taxes are added to the assessment and tax roll, but payment of the additional taxes may, at the option of the property owner, be deferred until the property is sold. Interest may not be charged on additional taxes that are deferred under this section. When the additional taxes are paid, the taxes shall be distributed in the same manner as other ad valorem property taxes are distributed.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      SECTION 4a. If Senate Bill 246 becomes law, section 4 of this 1999 Act is amended to read:

      Sec. 4. (1) This section applies if:

      (a) Omitted property was added to the assessment and tax roll between January 1, 1998, and December 31, 1998;

      (b) The omitted property was added to the assessment and tax rolls for five tax years beginning with the tax year beginning July 1, 1993, and ending with the tax year beginning July 1, 1997;

      (c) The omitted property consists of residential property; and

      (d) The property was omitted as a result of an error by the county assessor in which the property was initially appraised by the assessor at a time when new construction was only partially completed and the assessor failed to reappraise the property following completion of the new construction.

      (2) If additional taxes described in subsection (1) of this section remain unpaid on the effective date of this 1999 Act:

      (a) All foreclosure proceedings or other collection efforts shall be canceled;

      (b) The additional taxes shall be removed from the assessment and tax roll as of the effective date of this 1999 Act;

      (c) That portion of the additional taxes attributable to the county in which the property is located shall be waived;

      (d) The remaining additional taxes shall be considered to be added to the tax roll for the tax year beginning July 1, 2000;

      (e) All interest accrued between the time the additional taxes were first considered delinquent under ORS 311.206 (1997 Edition) or 311.229 (1997 Edition) and the effective date of this 1999 Act shall be waived; and

      (f) The county tax collector shall send a notice to the property owner or other person entitled to notice under ORS 311.219, explaining the changes to the treatment of additional tax being made as a result of this section and the amendments to ORS 311.206 and 311.229 by sections [1] 1a and 2 of this 1999 Act. The notice shall also state the amount of additional taxes that will be added to the assessment and tax roll for the tax year beginning July 1, 2000.

      (3) Additional taxes added to the assessment and tax roll under subsection (2) of this section shall constitute a lien on the property as of the date the additional taxes are added to the assessment and tax roll, but payment of the additional taxes may, at the option of the property owner, be deferred until the property is sold. Interest may not be charged on additional taxes that are deferred under this section. When the additional taxes are paid, the taxes shall be distributed in the same manner as other ad valorem property taxes are distributed.

      (4) Additional taxes collected under this section shall be deemed to have been imposed in the year to which the additional taxes relate.

      SECTION 5. ORS 311.812 is amended to read:

      311.812. (1) Except as provided in subsection (2) of this section, no interest shall be paid upon any tax refunds made under ORS 311.806.

      (2) Interest as provided in subsection (3) of this section shall be paid on the following refunds:

      (a) A refund resulting from the correction under ORS 311.205 of an error made by the assessor or tax collector.

      (b) Any refund ordered by the Department of Revenue if no appeal is taken or can be taken from the department's order.

      (c) Refunds ordered by the Oregon Tax Court or the Supreme Court if the order constitutes a final determination of the matter.

      (d) Refunds of taxes collected against real or personal property not within the jurisdiction of the tax levying body.

      (e) Refunds due to reductions in value ordered by a county board of property tax appeals where no appeal is taken.

      (f) Refunds due to reductions in value made pursuant to ORS 309.115.

      (3) The interest provided by subsection (2) of this section shall be paid at the rate [provided in ORS 311.505 (2)] of one percent per month, or fraction of a month, computed from the time the tax was paid or from the time the first installment thereof was due, whichever is the later. If a discount were given at the time the taxes were paid, interest shall be computed only on the net amount of taxes to be refunded.

      SECTION 6. The amendments to ORS 311.812 by section 5 of this 1999 Act apply to property tax refunds paid on or after the effective date of this 1999 Act.

 

Approved by the Governor July 23, 1999

 

Filed in the office of Secretary of State July 23, 1999

 

Effective date October 23, 1999

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