70th OREGON LEGISLATIVE ASSEMBLY--1999 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2568
House Bill 2792
Sponsored by Representative ATKINSON; Representatives GIANELLA,
HARPER, KNOPP, SIMMONS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Freezes, for property tax purposes, value of principal
residence of senior citizen, age 65 or older, at value for
1999-2000 tax year, for year in which senior citizen turns 65 or
for year in which senior citizen first owns and occupies
principal residence, whichever is later. Permits taxes to be
determined on assessed value of principal residence, rather than
frozen value, if residence declines in value.
Applies to property tax years beginning on or after July 1,
2000.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
311.668.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 1999 Act are added to
and made a part of ORS chapter 307. + }
SECTION 2. { + As used in sections 2 to 8 of this 1999 Act:
(1) 'Cooperative housing corporation' has the meaning given
that term under section 216 of the Internal Revenue Code
(cooperative housing corporation deduction).
(2) 'Designation' means a senior citizen principal residence
designation under sections 2 to 8 of this 1999 Act.
(3) 'Dwelling unit':
(a) Means a structure or part of a structure providing
complete, independent living facilities for one or more persons,
including permanent provisions for sleeping, eating, cooking and
sanitation and the land supporting the structure or otherwise
associated with the structure, and may be further defined by rule
by the Department of Revenue.
(b) Includes, if the residence is located in a multiunit
building, the portion of the building actually used as the
principal place of abode and a percentage of the assessed value
of the common elements and of the assessed value of the tax lot
upon which the multiunit building is built, as determined by the
county assessor. The percentage of the assessed value of the
common elements and tax lot that is added to the assessed value
of the residence unit shall be computed by dividing the assessed
value of the residence unit by the total assessed value of the
building exclusive of the common elements, if any.
(c) Includes, if the residence is a part of a group of
associated single family units on one tax lot, the single unit
and the portion of the common tax lot allocated to it on the
basis of the relative assessed value of each unit.
(d) Does not include, if the residence is an unassociated
single family unit, land in excess of one acre.
(e) Does not include, if the residence is located in a
multiunit building or is part of a group of associated single
family units on one tax lot, land in excess of one acre
multiplied by the number of residential units.
(4) 'Frozen value' means the assessed value of the principal
residence of the senior citizen for whichever is the later of:
(a) The tax year beginning July 1, 1999;
(b) The first tax year in which the senior citizen is 65 years
of age, or older, as of the assessment date and applies for
designation; or
(c) The first tax year in which the senior citizen occupies the
principal residence as of the assessment date and applies for
designation.
(5) 'Occupy':
(a) Means to live or dwell in or on the property.
(b) Includes temporary absences of limited duration. If a
senior citizen is temporarily absent from the principal
residence, or if the senior citizen is absent from the principal
residence due to illness, the senior citizen shall nevertheless
be considered an occupant of the property. A senior citizen who
has entered a long term care facility for the purpose of
receiving long term care shall not be considered an occupant of
the long term care facility. 'Temporary absence' and 'long term
care ' may be further defined by the department by rule.
(6) 'Own' means:
(a) To hold of record, either alone or with another or others,
a fee simple estate, a life estate or the right to possession
under a trust instrument or a contract of sale.
(b) If the property is a manufactured dwelling or floating
home, to be the registered owner, either alone or together with
another or others.
(7) 'Principal residence':
(a) Means real or personal property, subject to property
taxation and located in Oregon, that is owned and occupied by a
senior citizen as a dwelling unit.
(b) Does not include that portion of a dwelling unit that is
rented to another person.
(c) Does not include more than one dwelling unit in this state,
even if the senior citizen owns and occupies more than one
dwelling unit that would otherwise be considered a principal
residence.
(8) 'Senior citizen' means any person who is at least 65 years
of age on the assessment date for the tax year for which
application for a senior citizen property tax freeze under
sections 2 to 8 of this 1999 Act is made. + }
SECTION 3. { + (1) A property owner who has not qualified for
a senior citizen principal residence designation with respect to
the property owner's residence may apply for the designation by
filing an application with the county assessor on or before July
1 of the tax year to which the application relates.
(2) The application shall be on such form as the Department of
Revenue shall prescribe and shall contain the following:
(a) The name of the applicant as it appears on the applicant's
Social Security card.
(b) The Social Security number of the applicant.
(c) The date of birth of the applicant.
(d) One of the following:
(A) The tax lot number or numbers or other identification for
the applicant's principal residence.
(B) The name and appropriate address for a cooperative housing
corporation and a statement from the appropriate officer of the
corporation or the applicant that contains the tax information
needed to determine the portion of the assessed value of the
property of the cooperative housing corporation that consists of
the dwelling unit of the applicant.
(3) If the principal residence is a dwelling unit owned or
leased by a cooperative housing corporation and the statement
required under subsection (2)(d)(B) of this section cannot be
obtained, upon request of the applicant and upon payment by the
applicant of a processing fee of $___, the county assessor shall
determine the portion of the property of the cooperative housing
corporation that is attributable to the dwelling unit of the
applicant. No appeal shall be taken from a determination made
under this subsection. + }
SECTION 4. { + (1) An application for a senior citizen
principal residence designation filed under section 3 of this
1999 Act shall be approved or disapproved by the county assessor
on or before August 1 of the tax year to which the application
relates.
(2) Upon approval of the application, the county assessor shall
record the frozen value of the principal residence on the
assessment and tax roll.
(3) For each tax year for which the property remains designated
a senior citizen principal residence, the county assessor shall
compute the property taxes to be imposed on the principal
residence based on the lesser of the frozen value or the assessed
value of the principal residence. + }
SECTION 5. { + (1) A senior citizen principal residence
designation application filed under section 3 of this 1999 Act
shall be disapproved by the county assessor if the assessor
determines that the application or the principal residence for
which designation is sought does not meet the requirements for
designation under sections 2 to 8 of this 1999 Act. Appeal of the
disapproval may be made to the tax court in the manner provided
under ORS 305.275.
(2) If the sole reason for the application disapproval is the
failure to timely file the application described under section 3
of this 1999 Act, the applicant's exclusive remedy is to request
hardship relief under ORS 307.475. No further appeal may be taken
from a denial of hardship relief. + }
SECTION 6. { + (1) On or before January 15 of the assessment
year following the assessment year for which senior citizen
principal residence designation was first granted for the
property, the county assessor shall send a certification form to
each designated property.
(2) If the designated property still qualifies as a senior
citizen principal residence owned and occupied by the senior
citizen for which designation was first granted, the senior
citizen shall complete the form certifying that the property is
still eligible for senior citizen frozen value designation.
(3) A completed certification must be received by the assessor
on or before July 1 of the tax year for which the certification
applies in order for the frozen value designation to apply to the
property for that tax year. If certification is not received by
July 1 of the tax year, the assessed value of the property shall
be determined under ORS 308.146 or as otherwise provided by law
other than sections 2 to 8 of this 1999 Act.
(4) Notwithstanding subsection (3) of this section, the frozen
value designation applicable to a property may be continued if
certification is received by the assessor on or before December
31 of the tax year, and is accompanied by a late fee equal to
$___. + }
SECTION 7. { + (1) A cooperative housing corporation is
entitled to the senior citizen principal residence designation
granted under sections 2 to 8 of this 1999 Act for those dwelling
units and common elements owned, being purchased or leased by the
corporation and occupied by one or more eligible senior citizens
if an application for the designation is filed as provided in
subsection (2) of this section. Except as otherwise provided in
this section, and unless the context requires otherwise, sections
2 to 8 of this 1999 Act shall govern the designation of those
dwelling units eligible for designation under this section.
(2)(a) Each cooperative housing corporation shall aid a
resident who could qualify for the frozen value designation under
sections 2 to 8 of this 1999 Act, if the dwelling unit occupied
by the resident were owned by the resident as a principal
residence, by preparing applications for the designation on
behalf of the resident.
(b) For the first tax year in which a resident occupies a
dwelling unit and is a senior citizen as of the assessment date,
the corporation shall determine the amount of assessed value that
is attributable to the dwelling unit of the resident, and shall
apply for designation with respect to the dwelling unit. The
application shall be signed by the resident, or the resident's
authorized representative, and filed with the county assessor in
the same manner as other applications are filed under section 3
of this 1999 Act.
(c) The assessor shall process each application filed under
this subsection in the same manner as other applications for
frozen value designation under section 3 of this 1999 Act are
processed, except for the requirement of owning or purchasing a
principal residence.
(3)(a) For each year after the first year for which frozen
value designation has been granted under sections 2 to 8 of this
1999 Act, the corporation, for each dwelling unit that received
frozen value designation for the preceding tax year and that
continues to be occupied by the senior citizen on whose behalf
designation was obtained for the preceding tax year, shall
certify that the dwelling unit continues to be eligible for
designation.
(b) Certifications filed under this subsection shall be
processed in the same manner in which certifications are
processed under section 6 of this 1999 Act.
(4)(a) Not later than January 15 of each year, a cooperative
housing corporation that has received a reduction in property
taxes as a result of the frozen value designation for a dwelling
unit and its share of the common elements shall credit to the
account of the resident an amount equal to the excess of the
resident's share of property taxes that would have been assessed
against the corporation for the tax year if the reduction for the
dwelling unit and its share of the common elements had not been
granted over the resident's share of property taxes actually paid
by the corporation.
(b) Prior to March 1 of each year, the corporation shall
satisfy the county assessor that the crediting has taken place.
If the crediting has not taken place, no property tax reduction
under sections 2 to 8 of this 1999 Act shall be granted for
property of the corporation for the next tax year, beginning July
1. + }
SECTION 8. { + (1) The county assessor and the Department of
Revenue shall cooperate in carrying out the purposes of sections
2 to 8 of this 1999 Act.
(2) The department may make rules, including the defining of
terms, to carry out the purposes of sections 2 to 8 of this 1999
Act. + }
SECTION 9. ORS 311.668 is amended to read:
311.668. (1)(a) Subject to ORS 311.670, an individual, or two
or more individuals jointly, may elect to defer the property
taxes on their homestead by filing a claim for deferral with the
county assessor after January 1 and on or before April 15 of the
first year in which deferral is claimed if:
(A) The individual, or, in the case of two or more individuals
filing a claim jointly, each individual, is 62 years of age or
older on April 15 of the year in which the claim is filed; and
(B) The individual has, or in the case of two or more
individuals filing a claim jointly, all of the individuals
together have household income, as defined in ORS 310.630, for
the calendar year immediately preceding the calendar year in
which the claim is filed of less than $24,500.
(b) The county assessor shall forward each claim filed under
this subsection to the Department of Revenue which shall
determine if the property is eligible for deferral.
(2) When the taxpayer elects to defer property taxes for any
year by filing a claim for deferral under subsection (1) of this
section, it shall have the effect of:
(a) Deferring the payment of the property taxes levied on the
homestead for the fiscal year beginning on July 1 of such year.
(b) Continuing the deferral of the payment by the taxpayer of
any property taxes deferred under ORS 311.666 to 311.701 for
previous years which have not become delinquent under ORS
311.686.
(c) Continuing the deferral of the payment by the taxpayer of
any future property taxes for as long as the provisions of ORS
311.670 are met.
(3) If a guardian or conservator has been appointed for an
individual otherwise qualified to obtain deferral of taxes under
ORS 311.666 to 311.701, the guardian or conservator may act for
such individual in complying with the provisions of ORS 311.666
to 311.701.
(4) If a trustee of an inter vivos trust which was created by
and is revocable by an individual, who is both the trustor and a
beneficiary of the trust and who is otherwise qualified to obtain
a deferral of taxes under ORS 311.666 to 311.701, owns the fee
simple estate under a recorded instrument of sale, the trustee
may act for the individual in complying with the provisions of
ORS 311.666 to 311.701.
(5) Nothing in this section shall be construed to require a
spouse of an individual to file a claim jointly with the
individual even though the spouse may be eligible to claim the
deferral jointly with the individual.
(6) Any person aggrieved by the denial of a claim for deferral
of homestead property taxes or disqualification from deferral of
homestead property taxes may appeal in the manner provided by ORS
305.404 to 305.560.
{ + (7) If the homestead has also been designated a senior
citizen principal residence under sections 2 to 8 of this 1999
Act, the value used for determining the taxes subject to deferral
under ORS 311.666 to 311.701 shall be the value determined under
section 4 (3) of this 1999 Act. + }
SECTION 10. { + Sections 2 to 8 of this 1999 Act and the
amendments to ORS 311.668 by section 9 of this 1999 Act apply to
property tax years beginning on or after July 1, 2000. + }
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