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 2816

                        Senate Bill 1138

Sponsored by Senator STARR


                             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.

  Establishes property tax exemption for principal residence of
senior citizen aged 65 years or older for 50 percent of assessed
value of principal residence. Caps maximum exempt value. Directs
that taxes imposed to fund bonded indebtedness be extended to
entire assessed value of principal residence.
  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 9 of this 1999 Act are added to
and made a part of ORS chapter 307. + }
  SECTION 2.  { + As used in sections 2 to 9 of this 1999 Act:
  (1) 'Assessed value' means the assessed value as determined
under ORS 308.146 or, if the principal residence is subject to
any other partial exemption or special assessment, as determined
under the provisions of law granting the other partial exemption
or special assessment.
  (2) 'Assessed value exemption amount' means:
  (a) For the tax year beginning July 1, 2000, $75,000; or
  (b) For tax years beginning on or after July 1, 2001, 103
percent of the preceding tax year's assessed value exemption
amount.
  (3) 'Cooperative housing corporation' has the meaning given
that term under section 216 of the Internal Revenue Code
(cooperative housing corporation deduction).
  (4) 'Department' means the Department of Revenue.
  (5) '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 the
department by rule.
  (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.
  (6) 'Occupy':
  (a) Means to live or dwell in or on the property.
  (b) Includes temporary absences of limited duration. If a
taxpayer is temporarily absent from the principal residence, or
if the taxpayer is absent from the principal residence due to
illness, the taxpayer shall nevertheless be considered an
occupant of the property. A taxpayer 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.
  (7) '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.
  (8) 'Principal residence':
  (a) Means real or personal property, subject to property
taxation and located in Oregon, that is owned and occupied by a
taxpayer 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 taxpayer owns and occupies more than one dwelling
unit that would otherwise be considered a principal residence.
  (9) 'Senior citizen' means any person who is at least 65 years
of age on or before July 1 of the year for which application for
a principal residence property tax exemption under sections 2 to
9 of this 1999 Act is made.
  (10) 'Taxpayer' means a person whose principal residence is the
subject of property tax levied by this state or a political
subdivision of this state. + }
  SECTION 3.  { + (1) Upon compliance with sections 2 to 9 of
this 1999 Act, and subject to sections 2 to 9 of this 1999 Act,
an exemption from ad valorem property tax is allowed for the
principal residence of a taxpayer who is a senior citizen.
  (2) The lesser of the following values shall be exempt under
this section:
  (a) Fifty percent of the assessed value of the principal
residence; or
  (b) The assessed value exemption amount for the principal
residence.
  (3) Only one exemption under this section is allowed for any
principal residence for any tax year.
  (4) The exemption established under this section is applicable
to all ad valorem property taxes to which the property is subject
except taxes imposed to pay principal and interest on bonded
indebtedness described in ORS 310.150 (1)(a). + }

  SECTION 4.  { + (1) A taxpayer may apply for a principal
residence property tax exemption by filing an application with
the county assessor of the county in which the property is
located on or before July 1 of the tax year to which the
application relates.
  (2) The application shall be on a form prescribed by the
Department of Revenue 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 amount of the tax exemption under section
3 of this 1999 Act.
  (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 department or the applicant, the
county assessor shall determine the amount of property tax
imposed that is attributable to the assessed value exemption
amount and shall inform the department of the tax amount so
determined. No appeal shall be taken from a determination made
under this subsection.
  (4) The department may require any other information as the
department determines is necessary to process applications under
this section. + }
  SECTION 5.  { + An application for a principal residence
property tax exemption filed under section 4 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. + }
  SECTION 6.  { + (1) An application filed under section 4 of
this 1999 Act shall be disapproved by the county assessor if the
assessor determines that the application or the principal
residence for which the exemption has been applied does not meet
the requirements for principal residence property tax exemption
under sections 2 to 9 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 4
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 7.  { + (1) A cooperative housing corporation is
entitled to the principal residence property tax exemption
granted under sections 2 to 9 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 taxpayers if an
application for the exemption 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
9 of this 1999 Act shall govern the exemption.
  (2)(a) Each cooperative housing corporation shall annually aid
each resident who could qualify for the principal residence
property tax exemption under sections 2 to 9 of this 1999 Act, if
the dwelling unit occupied by the resident were owned by the
resident as a principal residence, by preparing applications on
behalf of each resident for the exemption.
  (b) The corporation shall determine the amount of assessed
value for each resident of a multiunit building who could have
qualified for the principal residence property tax exemption
under sections 2 to 9 of this 1999 Act if the dwelling unit
occupied by the resident were owned by the resident as a
principal residence.  The application shall be signed by the
resident, or the resident's authorized representative, and filed
with the Department of Revenue in the same manner as other
applications are filed under sections 2 to 9 of this 1999 Act.
  (c) The department shall process each application filed under
this subsection in the same manner as other applications for
principal residence property tax exemption under section 4 of
this 1999 Act are processed, except for the requirement of owning
or purchasing a principal residence.
  (3)(a) Not later than January 15, 2001, and January 15 of each
year thereafter, a cooperative housing corporation that has
received a property tax exemption 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 exemption 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 assessor that the crediting has taken place. If the
crediting has not taken place, no property tax reduction under
sections 2 to 9 of this 1999 Act shall be granted for property of
the corporation for the next tax year, beginning July 1. + }
  SECTION 8.  { + (1) On or before December 15 of each year, the
county assessor shall send a notice to each taxpayer who has been
granted a principal residence property tax exemption for the
current tax year. The notice shall:
  (a) Inform the taxpayer that the property qualified for the
principal residence property tax exemption for the current tax
year.
  (b) Inform the taxpayer that the taxpayer must file an
application for the exemption under section 4 of this 1999 Act on
or before July 1 of the next year in order for the property to
receive the principal residence property tax exemption for the
next tax year.
  (c) Contain any other information that the Department of
Revenue considers necessary to facilitate administration of the
principal residence property tax exemption.
  (2) The assessor shall give the notice required under
subsection (1) of this section by an unsealed postcard or other
form of mail sent to the residence address of the taxpayer as
shown in the application for the exemption or as otherwise
determined by the assessor to be the correct address of the
taxpayer. + }
  SECTION 9.  { + (1) The county assessor and the Department of
Revenue shall cooperate in carrying out the purposes of sections
2 to 9 of this 1999 Act.
  (2) The department may make rules, including the defining of
terms, to carry out the purposes of sections 2 to 9 of this 1999
Act. + }
  SECTION 10. 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 a taxpayer has also been granted a principal
residence property tax exemption under sections 2 to 9 of this
1999 Act, the taxes subject to deferral under ORS 311.666 to
311.701 shall be limited to taxes attributable to the assessed
value of the homestead that is not exempt under sections 2 to 9
of this 1999 Act. + }
  SECTION 11.  { + Sections 2 to 9 of this 1999 Act and the
amendments to ORS 311.668 by section 10 of this 1999 Act apply to
property tax years beginning on or after July 1, 2000. + }
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