Chapter 1003 Oregon Laws 1999

Session Law

AN ACT

HB 2043

Relating to taxation; creating new provisions; and amending ORS 308.146, 308.153 and 308.166 and sections 2 and 12, chapter 541, Oregon Laws 1997.

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

SECTION 1. ORS 308.146 is amended to read:

308.146. (1) The maximum assessed value of property shall equal 103 percent of the property's assessed value from the prior year or 100 percent of the property's maximum assessed value from the prior year, whichever is greater.

(2) Except as provided in subsections (3) and (4) of this section, the assessed value of property to which this section applies shall equal the lesser of:

(a) The property's maximum assessed value; or

(b) The property's real market value.

(3) Notwithstanding subsections (1) and (2) of this section, the maximum assessed value and assessed value of property shall be determined as provided in ORS 308.149 to 308.166 if:

(a) The property is new property or new improvements to property;

(b) The property is partitioned or subdivided;

(c) The property is rezoned and used consistently with the rezoning;

(d) The property is first taken into account as omitted property;

(e) The property becomes disqualified from exemption, partial exemption or special assessment; or

(f) A lot line adjustment is made with respect to the property, except that the total assessed value of all property affected by a lot line adjustment shall not exceed the total maximum assessed value of the affected property under paragraph (a) or (b) of this subsection.

(4) Notwithstanding subsections (1) and (2) of this section, if property is subject to partial exemption or special assessment, the property's maximum assessed value and assessed value shall be determined as provided under the provisions of law granting the partial exemption or special assessment.

(5)(a) Notwithstanding subsection (1) of this section, when a portion of property is destroyed or damaged due to fire or act of God, for the year in which the destruction or damage is reflected by a reduction in real market value, the maximum assessed value of the property shall be reduced to reflect the loss from fire or act of God.

(b) This subsection does not apply:

(A) To any property that is assessed under ORS 308.505 to 308.665.

(B) If the damaged or destroyed property is property that, when added to the assessment and tax roll, constituted minor construction for which no adjustment to maximum assessed value was made.

(c) As used in this subsection, "minor construction" has the meaning given that term in ORS 308.149.

(6)(a) If, during the period beginning on January 1 and ending on July 1 of an assessment year, any real or personal property is destroyed or damaged, the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property, may apply to the county assessor to have the real market and assessed value of the property determined as of July 1 of the current assessment year.

(b) The person described in paragraph (a) of this subsection shall file an application for assessment under this section with the county assessor on or before August 1 of the current year.

(c) If the conditions described in this subsection are applicable to the property, then notwithstanding ORS 308.210, the property shall be assessed as of July 1, at 1:00 a.m. of the assessment year, in the manner otherwise provided by law.

SECTION 2. The amendments to ORS 308.146 by section 1 of this 1999 Act apply to tax years beginning on or after July 1, 1998.

SECTION 3. Section 2, chapter 541, Oregon Laws 1997, is amended to read:

Sec. 2. (1) Notwithstanding [section 6 of this 1997 Act] ORS 308.146 and unless section 3, chapter 541, Oregon Laws 1997, [of this 1997 Act] applies, for the tax year beginning July 1, 1997, the maximum assessed value of property and the assessed value of property under [section 6 of this 1997 Act] ORS 308.146 shall be determined as provided in this section.

(2) The property's maximum assessed value for the tax year beginning July 1, 1997, shall equal the property's real market value for the tax year beginning July 1, 1995, reduced by 10 percent.

(3) Notwithstanding subsection (2) of this section, when a portion of property was destroyed or damaged due to fire or act of God occurring during the period beginning after July 1, 1995, and before July 1, 1997, the property's maximum assessed value shall be reduced to reflect the loss from fire or act of God.

[(3)] (4) The property's assessed value for the tax year beginning July 1, 1997, shall equal the lesser of the property's real market value as determined under ORS 308.232 or the property's maximum assessed value.

[(4)] (5) There shall not be a reappraisal of the property's real market value that was used in the tax year beginning July 1, 1995, for purposes of determining the property's maximum assessed value under this section.

[(5)] (6) In determining the maximum assessed value of property for the tax year beginning July 1, 1997, the assessor shall not alter the real market value for the tax year beginning July 1, 1995, as reflected on the applicable assessment and tax roll, other than as modified by adjudication of value, exercise of supervisory authority, error correction or addition of omitted property.

SECTION 4. ORS 308.153 is amended to read:

308.153. (1) If new property is added to the assessment roll or improvements are made to property as of January 1 of the assessment year, the maximum assessed value of the property shall be the sum of:

(a) The maximum assessed value determined under ORS 308.146; and

(b) The product of the value of the new property or new improvements determined under subsection (2)(a) of this section multiplied by the ratio of the average maximum assessed value over the average real market value for the assessment year.

(2)(a) The value of new property or new improvements shall equal the real market value of the new property or new improvements reduced (but not below zero) by the real market value of retirements from the property tax account.

(b) If the maximum assessed value of property is adjusted for fire or act of God, the reduction in real market value due to fire or act of God may not be considered to be a retirement under this subsection.

(3) 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.

SECTION 5. Section 12, chapter 541, Oregon Laws 1997, is amended to read:

Sec. 12. (1) Notwithstanding [section 11 of this 1997 Act] ORS 308.153, for the tax year beginning July 1, 1997, if new property or new improvements to property were added to the assessment and tax rolls after July 1, 1995, and on or before July 1, 1997, the value determined under [section 11 (2) of this 1997 Act] ORS 308.153 (2) shall equal the real market value of the new property or new improvements as of July 1, 1997, reduced (but not below zero) by the real market value of retirements from the property tax account to which the new property or new improvements have been added.

(2) If the maximum assessed value of property is adjusted for fire or act of God, the reduction in real market value due to fire or act of God is not considered to be a retirement under this section.

SECTION 6. ORS 308.166 is amended to read:

308.166. (1) If the maximum assessed value of property is subject to adjustment under both ORS 308.153 and 308.156, the maximum assessed value determined under ORS 308.156 shall be the property's maximum assessed value.

(2) If the maximum assessed value of property is subject to adjustment under both ORS 308.153 and 308.159, the maximum assessed value shall first be determined under ORS 308.153 and then further adjusted under ORS 308.159.

(3) If the maximum assessed value of property is subject to adjustment under both ORS 308.156 and 308.159, the maximum assessed value shall first be determined under ORS 308.156 and then further adjusted under ORS 308.159.

(4) If the maximum assessed value of property is subject to adjustment under all of ORS 308.153, 308.156 and 308.159, the maximum assessed value shall first be determined under subsection (1) of this section and then further adjusted under ORS 308.159.

(5) If the maximum assessed value of property is subject to adjustment for fire or act of God, the maximum assessed value shall first be determined under ORS 308.146 (5)(a) and then may be adjusted as provided in subsections (1) to (4) of this section.

SECTION 7. The amendments to ORS 308.153 and 308.166 by sections 4 and 6 of this 1999 Act apply to tax years beginning on or after July 1, 1997.

Approved by the Governor August 20, 1999

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

Effective date October 23, 1999

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