TITLE 29
REVENUE AND
TAXATION
Chapter 305. Administration of Revenue and Tax Laws;
Appeals
306. Property Taxation Generally
307. Property Subject to Taxation; Exemptions
308. Assessment of Property for Taxation
308A. Land Special Assessments
309. Board of Property Tax Appeals; Ratio
Studies
310. Property Tax Rates and Amounts; Tax
Limitations; Tax Reduction Programs
311. Collection of Property Taxes
312. Foreclosure of Property Tax Liens
314. Taxes Imposed Upon or Measured by Net
Income
315. Personal and Corporate Income or Excise Tax
Credits
316. Personal Income Tax
317. Corporation Excise Tax
318. Corporation Income Tax
319. Motor Vehicle and Aircraft Fuel Taxes
320. Miscellaneous Taxes
321. Timber and Forestland Taxation
323. Cigarettes and Tobacco Products
324. Oil and Gas Tax
_______________
Chapter 305 — Administration
of Revenue and Tax Laws; Appeals
2011 EDITION
ADMINISTRATION; APPEALS
REVENUE AND TAXATION
DEPARTMENT OF REVENUE
(Organization)
305.005 Definitions
305.015 Policy
305.025 Department
of Revenue; organization; planning; seal
305.035 Director
of Department of Revenue; appointment; confirmation; compensation and expenses;
bond
305.045 Duties
of director
305.057 Delegation
of authority
305.060 Offices
of department; equipment and supplies
305.063 Department
of Revenue Administration Account; use; limitation
305.065 Deputy
director; appointment; qualifications
305.075 Employees;
appointment; duties; compensation and expenses
305.078 Authority
of Department of Revenue to require fingerprints
305.085 Charges
for maps, documents or publications
(Tax Administration)
305.100 Rules;
forms
305.102 Local
budget and property tax law; compliance with constitutional limit; rules
305.105 Declaratory
rulings by department; rules
305.110 Duty
to construe tax laws; instruction of officers acting under tax laws
305.120 Enforcement
of tax laws
305.125 Application
of administrative rules
305.130 Department
as party to actions involving property subject to certain tax liens; complaint
and summons
305.140 Power
to release real property from certain tax liens
305.145 When
interest required to be waived; power to waive, reduce or compromise small tax
balance or penalty and interest; rules
305.150 Closing
agreements
305.155 Cancellation
of uncollectible tax; filing order; releasing liens
305.157 Extending
statutory periods of limitation
305.160 Reports
from public officers
305.170 Complaints
concerning tax laws; reports and recommendations to Legislative Assembly
305.180 Effect
of tax warrant for purposes of out-of-state collection
305.182 Filing
of warrants for unpaid taxes; release, cancellation and satisfaction
305.184 Certificate
of outstanding warrants; fee; rules
305.190 Subpoenaing
and examining witnesses, books and papers; application to tax court for disobeyance of subpoena
305.192 Disclosure
of books and papers relating to appraisal or assessment of industrial property
305.193 Disclosure
of tax information to designated persons; rules
305.195 Written
interrogatories; contents; time and manner of service; answer; objection; order
for answer; demand for information by taxpayer; order for information
305.200 Witness
fees and mileage
305.215 Conflicting
claims for credit for dependent; notice procedure; appeal; evidence as public
record
305.217 When
deduction for amounts paid as wages or remuneration permitted
305.220 Interest
on deficiency, delinquency or refunds; adjustments in rates; rules; computation
305.222 Determination
of interest rate
305.225 Request
of assistance by law enforcement agency; disclosure of tax records
305.228 Penalty
for second dishonored payment of taxes; waiver
305.229 When
penalties not imposed; rules
(Representation of Taxpayer)
305.230 Qualifications
of persons representing taxpayer; procedure for designating representative;
rules
305.242 Representation
before department or magistrate of designated partnership tax matters;
designated tax partner
305.245 Representation
before tax court magistrate by officer or employee of county or department
305.260 Representation
before department or magistrate by former department personnel prohibited
(Tax Deficiencies; Notice; Appeals)
305.263 Order
requiring filing report or return; show cause; contempt; appeal
305.265 Deficiency
notice; payment of deficiency; assessment; appeal; interest; rules
305.267 Extension
of time to issue notice of deficiency or assessment
305.270 Refund
of excess tax paid; claim procedure
305.271 Refund
transfer or assignment prohibited; exception
305.275 Persons
who may appeal due to acts or omissions
305.280 Time
for filing appeals; denial of appeal
305.285 Correction
of tax and assessment rolls for subsequent tax years during pendency of appeal
305.286 Deferred
billing credit in property tax appeals; conditions; procedure; interest
305.287 Determination
of real market value of property tax account or components
305.288 Valuation
changes for residential property substantial value error or for good and
sufficient cause
305.290 Extension
of time for making assessment due to bankruptcy
305.295 Cancellation
of tax, penalty or interest; rules
305.305 Procedure
where deficiency based on federal or other state audit report; effect of
appeal; interest suspension
305.330 Tax
liability of reorganized business entity
305.375 Disposition
of penalties; payment of refunds
(License Lists)
305.380 Definitions
for ORS 305.385
305.385 Agencies
to supply licensee and contractor lists; contents; effect of department
determination on taxpayer status of licensee or contractor; rules
(Temporary provisions relating to pilot
project requiring tax compliance as condition of occupational and professional
licensing are compiled as notes following ORS 305.385)
SUBPOENAS RELATING TO INDUSTRIAL
PROPERTY
305.390 Subpoenas
of records containing information on industrial plant for use to determine
value of different industrial plant
305.392 Process
for limiting scope of third-party subpoena
305.394 When
industrial plant owner may choose not to produce information sought by subpoena
305.396 Protection
of confidentiality of industrial property information obtained by subpoena
305.398 Disclosure
and use of industrial property confidential information obtained by third-party
subpoena
305.400 Payment
of costs of subpoena compliance; determination of costs
APPEALS OF INDUSTRIAL PROPERTY OR PLANTS
305.403 Appeal
of value of principal or secondary industrial property in tax court
OREGON TAX COURT
(General)
305.404 Oregon
Tax Court; definitions; usage
305.405 Oregon
Tax Court; creation; jurisdiction
305.410 Authority
of court in tax cases within its jurisdiction; concurrent jurisdiction;
exclusive jurisdiction in certain cases
305.412 Jurisdiction
to determine value
305.415 Service
of papers and process
305.418 When
mailed complaint considered to be filed
305.419 Tax,
penalty and interest payable before appeal; how determined; waiver; refund
305.420 Issuance
of subpoenas; administration of oaths; depositions
305.422 Waiver
of penalty for failure to timely file property return
305.425 Proceedings
to be without jury and de novo; issues reviewable; rules of procedure
305.427 Burden
of proof in tax court proceedings
305.430 Hearings
to be open to public; report of proceedings; exception; confidential
information
305.437 Damages
for frivolous or groundless appeal or appeal to delay
305.440 Finality
of unappealed decision of tax court; effect of appeal
to Supreme Court
305.445 Appeals
to Supreme Court; reviewing authority and action on appeal
305.447 Recovery
by taxpayer of certain costs and expenses upon appeal to Supreme Court
305.450 Publication
of tax court decisions
305.452 Election
and term of judge; vacancy; recommendation of appointees to fill vacancy
305.455 Qualifications
of judge; inapplicability of disqualification-for-prejudice provision
305.460 Salary,
expenses, disability and retirement of judge and magistrates
305.470 Presiding
judge; functions
305.475 Offices
of tax court; location of hearings
305.480 State
Court Administrator as administrator and clerk; other personnel; expenses;
limitation on activities of personnel
305.485 Records
(Industrial Property Appeals)
305.487 Findings
and policy
305.489 Considerations
in adopting rules
(Fees)
305.490 Filing
fees; recovery of certain costs and disbursements; additional recovery for
certain taxpayers; disposition of receipts
305.492 Fees
and expenses of witnesses
305.493 Fees
for transcripts or copies of records
(Representation)
305.494 When
shareholder may represent corporation in tax court proceedings
(Magistrate Division)
305.498 Magistrates;
appointment; qualifications; oaths; duties; dismissal; appointment of presiding
magistrate
305.501 Appeals
to tax court to be heard by magistrate division; exception; mediation; conduct
of hearings; decisions; appeal de novo to tax court judge
305.505 Magistrate
division records; statistical reports
305.525 Notice
to taxpayer of right to appeal
(Appeals Procedure; Effect of Pendency
of Appeal)
305.560 Appeals
procedure generally; procedure when taxpayer is not appellant; intervention
305.565 Stay
of collection of taxes, interest and penalties pending appeal; exception; bond
305.570 Standing
to appeal to regular division of tax court; perfection of appeal
305.575 Authority
of tax court to determine deficiency
(Constitutional Limits Upon Property
Taxes; Effects; Determination)
305.580 Exclusive
remedies for certain determinations; priority of petitions
305.583 Interested
taxpayer petitions for certain determinations; petition contents; manner and
time for filing; classification notice requirements; bond proceed use notice
requirements
305.585 Local
government petitions concerning taxes of another local government under 1990
Measure 5; manner and time for filing
305.586 Legislative
findings; policy on remedies for misspent bond proceeds
305.587 Tax
court findings; orders; refunds; bond measure construction; other relief
305.589 Judicial
declarations; petition by local government; notice; intervention; appeal;
remedies; costs
305.591 Court
determination that 1990 Measure 5 tax limit is inapplicable; collection of tax;
appeal; stay denied
INTERGOVERNMENTAL TAX RELATIONS
(Federal and Other States)
305.605 Application
of tax laws within federal areas in state
305.610 Reciprocal
recognition of tax liability; actions in other states for Oregon taxes
305.612 Reciprocal
offset of tax refunds in payment of liquidated debt or certain amounts payable;
rules
305.615 Apportionment
of moneys received from United States in lieu of property taxes
(Local)
305.620 Collection
and distribution of local taxes on income and sales; costs; court review of
determinations and orders; appeals
305.625 State
and political subdivisions are employers for purpose of withholding city or
county income tax
305.630 Compliance
with city or county income tax ordinance required
305.635 Rate
of withholding to be designated by city or county; forms
305.640 Discrimination
among employers prohibited
305.645 Department
of Revenue to provide services to political subdivisions
MULTISTATE TAX COMPACT
305.655 Multistate
Tax Compact
305.660 Director
of department to represent state; alternate
305.665 Appointment
of consultants from political subdivisions imposing taxes having multistate
impact
305.675 Application
of compact provisions relating to interstate audits
305.676 Mediation
and arbitration laws not applicable to Multistate Tax Commission processes
305.685 Multistate
Tax Commission Revolving Account
CHARITABLE CHECKOFF PROGRAM
305.690 Definitions
for ORS 305.690 to 305.753
305.695 Oregon
Charitable Checkoff Commission; qualifications; term;
compensation and expenses
305.700 Officers;
meetings; quorum; director as nonvoting member
305.705 Duties
of chairperson
305.710 Notice
of availability of space in tax return for checkoffs;
determination of entities eligible for checkoff
305.715 Determination
of eligibility; certification of entities to be listed on tax return
305.720 Qualification
for entity for contributions by checkoff
305.723 Eligibility
roster
305.725 Application
of entity
305.727 Instruction
listing; qualifications
305.730 Financial
report of entity
305.735 Effect
of qualification; notice if entity not qualified
305.740 Standards
for continuing eligibility
305.745 Inclusion
of eligible entities on tax return
305.747 Administrative
expenses; crediting contributions to entities; rules
305.751 Rules
305.753 State
Treasurer may solicit donations to eligible entities; department rules
CHECKOFF FOR CONTRIBUTION TO POLITICAL
PARTY
305.754 Designation
of contribution to political party on income tax return
305.756 Oregon
Political Party Fund
305.757 Payments
to treasurers of political parties
305.758 Payment
to political party considered contribution for purposes of campaign finance
regulation
305.759 Contribution
to political party on income tax return not to be claimed as tax credit
REFUNDS
305.760 Paying
over funds to State Treasurer and writing checks for refunds
305.762 Election
for direct deposit of personal income tax refund
305.765 Refund
of taxes adjudged invalid
305.770 Report
of taxpayers paying invalid tax; issuance and payment of warrants
305.775 Interest
on amount of refund in certain cases
305.780 Taxes
due prior to year in which suit brought
305.785 Appropriation
305.790 Manner
of payment of certain costs and expenses
305.792 Surplus
refund donations to education
305.794 Transfer
to State School Fund
305.796 Election
to contribute refund to account in Oregon 529 College Savings Network; rules
MISCELLANEOUS PROVISIONS
305.805 Repeal
of intangibles income tax law not to affect accrued taxes
305.810 Verification
of return, statement or document filed under tax laws
305.815 False
return, statement or document prohibited
305.820 Date
when writing, remittance or electronic filing deemed received by tax officials
305.822 Prohibition
on state or local tax on Internet access
305.823 Local
government tax on telephone services prohibited
305.830 Collection
of fines, penalties and forfeitures; disbursement; cost of collection
305.840 Forms
furnished by county assessors; assessor not liable when taxpayer fails to
receive mailed form
305.845 Remedies
exclusive
305.850 Use
of collection agency
TAXPAYER BILL OF RIGHTS
305.860 Statement
of rights of taxpayers; distribution
305.865 Taxpayer
rights
305.870 Personnel
evaluation not based on amount of taxes collected
305.875 Rights
of taxpayer in meeting or communication with department
305.880 Waiver
of interest or penalty when department misleads taxpayer
305.885 Right
of clear explanation
305.890 Right
to enter into agreement to satisfy liability in installment payments
305.895 Action
against property before issuance of warrant prohibited; prerequisites for
warrant
305.900 Short
title
PENALTIES
305.990 Criminal
penalties
305.992 Civil
penalty for failure to file return for three consecutive years
DEPARTMENT OF REVENUE
(Organization)
305.005 Definitions.
As used in the revenue and tax laws of this state, unless the context requires
otherwise:
(1)
“Department” means the Department of Revenue.
(2)
“Director” means the Director of the Department of Revenue. [1969 c.520 §2;
1995 c.79 §105; 1995 c.650 §105]
305.010
[Formerly 306.010; repealed by 1969 c.520 §49]
305.015 Policy.
It is the intent of the Legislative Assembly to place in the Department of
Revenue and its director the administration of the revenue and tax laws of this
state, except as specifically otherwise provided in such laws. [1969 c.520 §1;
1977 c.870 §1]
305.020
[Formerly 306.020; repealed by 1969 c.520 §49]
305.025 Department of Revenue;
organization; planning; seal. (1) The
Department of Revenue is established.
(2)
The Department of Revenue shall consist of administrative divisions. Each of
the administrative divisions of the department shall be headed by an administrator
who shall be in the unclassified service under the State Personnel Relations
Law and appointed by the Director of the Department of Revenue. Each
administrator shall be well qualified by technical training and experience in
the functions to be performed.
(3)
The Director of the Department of Revenue, from time to time, may alter or
amend the organization of the department, including its administrative
divisions, as the director deems necessary to achieve the greatest efficiency
and economy in its operation.
(4)
The director, acting in concert with the chief officers of other state agencies
charged with raising revenue, shall use all reasonable means to increase
efficiency and economy by coordinating work and sharing resources with other
agencies, including but not limited to the mutual use of field officers and
field auditors. With respect to such activity the director shall cause to be
prepared a report relating to the utilization and coordination of revenue
raising functions of the state agencies charged with such responsibility,
including but not limited to suggested plans for departmental or governmental
reorganization in the revenue raising field. Such report shall be submitted to
the Governor and the Legislative Assembly when it next convenes.
(5)
The department shall have an official seal, with the words “Department of
Revenue” and “State of Oregon” and such other design as the director may
prescribe. The seal shall be used to authenticate all papers and proceedings
requiring authentication. [1969 c.520 §§3,5; 1973 c.402 §2; 1981 c.848 §1]
305.030
[Formerly 306.030; repealed by 1969 c.520 §49]
305.035 Director of Department of Revenue;
appointment; confirmation; compensation and expenses; bond.
(1) The Department of Revenue shall be under the supervision of the Director of
the Department of Revenue who shall be appointed for a term of four years and
shall hold office at the pleasure of the Governor. The director shall be
skilled and expert in matters of taxation and shall devote the entire time of
the director to the performance of the duties imposed upon the department.
(2)
The appointment of the director is subject to confirmation by the Senate under
ORS 171.562 and 171.565. In case the Governor’s choice of a director is not
confirmed, the Governor shall make another appointment subject to the
confirmation by the Senate as provided in this subsection.
(3)
The director shall receive such salary as may be provided by law. In addition
to salary, the director, subject to the limitations otherwise provided by law,
shall be reimbursed for all reasonable expenses necessarily incurred by the
director in the performance of official duties. Before entering upon the duties
of office, the director shall be bonded under ORS 291.011. [1969 c.520 §4; 1985
c.565 §52; 1985 c.761 §5]
305.040
[Formerly 306.040; repealed by 1969 c.520 §49]
305.045 Duties of director.
(1) Except as otherwise provided by law, the Director of the Department of
Revenue shall coordinate all of the activities of the Department of Revenue,
and has the power of general supervision over the administration of each
division within the department, and the administrative head thereof, and is
directly responsible to the Governor therefor.
(2)
The director shall provide administrative staff, fiscal, planning and research
facilities and services for the agencies within the department. [1969 c.520 §6;
1995 c.650 §106]
305.050
[Formerly 306.050; repealed by 1969 c.520 §49]
305.055
[Formerly 306.230; repealed by 1969 c.520 §49]
305.057 Delegation of authority.
Whenever a power is granted to the Director of the Department of Revenue, the
power may be exercised by such officer or employee within the Department of
Revenue as designated in writing by the director. Any such designation shall be
filed in the office of the Secretary of State. [1969 c.520 §7; 1975 c.605 §15a]
305.060 Offices of department; equipment
and supplies. (1) The Department of Revenue shall
maintain its principal offices in the state capital and shall be furnished with
suitable office quarters under ORS 276.004. The department may maintain offices
or conduct its business in other places in the state in order to facilitate the
discharge of its functions.
(2)
Necessary printing for the department shall be performed in the same manner as
other state printing. All necessary office equipment and supplies required by
the department shall be purchased from the appropriation made for the salaries
and the general and contingent expenses of the department. [Formerly 306.060; 1969
c.520 §25; 1969 c.706 §64c; 1997 c.325 §1]
305.063 Department of Revenue
Administration Account; use; limitation. (1) There is
established in the General Fund of the State Treasury the Department of Revenue
Administration Account. Notwithstanding any other law, such amounts as may be
necessary to pay the administrative expenses of the Department of Revenue shall
be continuously credited to the Department of Revenue Administration Account
from the biennial appropriations, or transferred to such administration account
from the accounts or funds of the divisions and other agencies within the
department. Such amounts as may be requested quarterly by the Director of the
Department of Revenue, with the approval of the Oregon Department of
Administrative Services, shall be credited or transferred to the Department of
Revenue Administration Account from the biennial appropriations, accounts or
funds of the divisions and other agencies within the department. The Department
of Revenue is subject to the allotment system provided for in ORS 291.234 to
291.260.
(2)
The amounts credited and transferred to the Department of Revenue
Administration Account shall not be greater than the total of any budget
approved for the department by the Legislative Assembly and shall be determined
by the costs of the administrative, supervisory, legal and review services
provided the respective divisions and agencies within the department. All
moneys appropriated, credited or transferred to the Department of Revenue
Administration Account are appropriated continuously to pay the administrative
expenses of the department. [1969 c.520 §48]
305.065 Deputy director; appointment;
qualifications. The Director of the Department
of Revenue, with the approval of the Governor, may designate a deputy director,
to serve at the pleasure of the director, with full authority to act for the
director, but subject to the control of the director. The deputy director shall
be skilled and expert in matters of taxation and shall devote the entire time of
the deputy director to the performance of the duties of the deputy director in
the department. The designation of a deputy director shall be by written order
filed with the Secretary of State. [1969 c.520 §§8,9; 1973 c.402 §3]
305.070
[Formerly 306.070; repealed by 1969 c.520 §49]
305.075 Employees; appointment; duties; compensation
and expenses. (1) Subject to any applicable
provisions of the State Personnel Relations Law:
(a)
The Director of the Department of Revenue may appoint and remove such officers,
agents and employees as the director considers necessary. Such persons shall
have the duties and powers the director from time to time prescribes.
(b)
The compensation of all such officers, agents and employees shall be fixed by
the director.
(2)
Subject to and in the manner otherwise provided by law, all officers, agents
and employees of the Department of Revenue shall be allowed such reasonable and
necessary traveling and other expenses as may be incurred in the performance of
their duties. [1969 c.520 §11; 1985 c.761 §6]
305.078 Authority of Department of Revenue
to require fingerprints. For the purpose of requesting a
state or nationwide criminal records check under ORS 181.534, the Department of
Revenue may require the fingerprints of a person who:
(1)(a)
Is employed or applying for employment by the department; or
(b)
Provides services or seeks to provide services to the department as a
contractor or volunteer; and
(2)
Is, or will be, working or providing services in a position:
(a)
In which the person is providing information technology services and has
control over, or access to, information technology systems that would allow the
person to harm the information technology systems or the information contained
in the systems;
(b)
In which the person has access to information, the disclosure of which is
prohibited by state or federal laws, rules or regulations or information that
is defined as confidential under state or federal laws, rules or regulations;
(c)
That has payroll functions or in which the person has responsibility for
receiving, receipting or depositing money or negotiable instruments, for
billing, collections or other financial transactions or for purchasing or
selling property or has access to property held in trust or to private property
in the temporary custody of the state;
(d)
That has mailroom duties as the primary duty or job function of the position;
(e)
In which the person has access to personal information about employees or
members of the public including Social Security numbers, dates of birth, driver
license numbers, personal financial information or criminal background
information; or
(f)
In which the person has access to tax or financial information of individuals
or business entities. [2005 c.730 §50]
Note: 305.078
was enacted into law by the Legislative Assembly but was not added to or made a
part of ORS chapter 305 or any series therein by legislative action. See
Preface to Oregon Revised Statutes for further explanation.
305.080
[Formerly 306.080; repealed by 1969 c.520 §49]
305.083 [1969
c.520 §13; repealed by 1973 c.402 §30]
305.085 Charges for maps, documents or
publications. The Department of Revenue is hereby
authorized to charge a reasonable sum reflecting its costs, for each copy sold
of maps, documents, or publications such as those containing its laws and
administrative rules or reports. The proceeds from such sales are to be
deposited in the department’s miscellaneous receipts account established under
the authority of ORS 279A.290. [1969 c.479 §3; 1973 c.402 §4; 2003 c.794 §253]
305.090
[Formerly 306.090; repealed by 1983 c.605 §6]
(Tax Administration)
305.100 Rules; forms.
The Department of Revenue shall:
(1)
Make such rules and regulations it deems proper to regulate its own procedure and
to effectually carry out the purposes for which it is constituted.
(2)
Prescribe all forms of books and blanks used in the assessment and collection
of taxes not otherwise prescribed by law and change the forms of blanks and
books prescribed by law in case change is necessary. [Formerly 306.100]
305.102 Local budget and property tax law;
compliance with constitutional limit; rules. The
Department of Revenue shall adopt rules that it considers necessary to carry
out the provisions of chapter 459, Oregon Laws 1991, relating to Local Budget
Law, appeals to boards of property tax appeals, administration of the property
tax laws, imposition and collection of taxes on property or compliance by local
taxing officials with the requirements of section 11b, Article XI of the Oregon
Constitution. [1991 c.459 §35; 1995 c.650 §107; 1997 c.541 §§49,50]
Note:
305.102 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 305 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
Note:
Legislative Counsel has substituted “chapter 459, Oregon Laws 1991,” for the
words “this Act” in section 35, chapter 459, Oregon Laws 1991, compiled as
305.102. Specific ORS references have not been substituted, pursuant to
173.160. These sections may be determined by referring to the 1991 Comparative
Section Table located in Volume 20 of ORS.
305.105 Declaratory rulings by department;
rules. The Department of Revenue in its
discretion may, on petition by any interested person, issue a declaratory
ruling with respect to the applicability to any person, property or state of
facts of any rule or statute enforceable by it. The department shall prescribe
by rule the form, content and procedure for submission, consideration and
disposition of such petitions. Full opportunity for hearing shall be afforded
to interested parties. A declaratory ruling shall bind the department and all
parties to the proceedings on the state of facts alleged, unless it is altered
or set aside by a court. A ruling shall be subject to review in the Oregon Tax
Court and Supreme Court in the manner provided by ORS 305.445. [Formerly
306.710; 1989 c.414 §2]
305.110 Duty to construe tax laws;
instruction of officers acting under tax laws.
The Department of Revenue shall construe the tax and revenue laws of this state
whenever requested by any interested person or by any officer acting under such
laws and shall instruct such officers as to their duties under such laws. Such
officers shall submit all questions arising with them which affect the
construction of tax and revenue laws of the state to the department. [Formerly
306.110]
305.115 [1969
c.520 §10; 1977 c.870 §8; 1979 c.527 §1; 1979 c.687 §5; 1981 c.139 §6; 1985 c.761
§7; 1987 c.512 §1; 1987 c.758 §7; 1991 c.459 §11; repealed by 1995 c.650 §114]
305.120 Enforcement of tax laws.
(1) The Department of Revenue shall see that revenue officers comply with the
tax and revenue laws, that all taxes are collected, that complaint is made
against any person violating such laws and that penalties prescribed by such
laws are enforced.
(2)
The Director of the Department of Revenue may call upon the district attorney
or Attorney General to institute and conduct prosecutions for violations of the
laws in respect to the assessment and taxation of property and the collection
of public taxes and revenues. [Formerly 306.140]
305.125 Application of administrative
rules. The Department of Revenue may not apply
an administrative rule in a manner that requires a change in the treatment of
an item of income or expense, a deduction, exclusion, credit or other
particular on a report or return filed by a taxpayer if:
(1)
The taxpayer filed the report or return by the date it was due; and
(2)
The treatment of the item on the report or return was consistent with an
administrative rule adopted and in effect at the time that the report or return
was filed. [2009 c.494 §2]
305.130 Department as party to actions
involving property subject to certain tax liens; complaint and summons.
(1) The Department of Revenue may be made a party in any action in any court of
this state or of the United States having jurisdiction of the subject matter to
quiet title to, to remove a cloud from the title to, or for the foreclosure of
a mortgage or other lien upon, any real property or personal property, or both,
upon which the State of Oregon has or claims to have a lien under ORS 311.673,
311.679, 311.771, 314.430 or 321.570 or ORS chapter 323, and the judgment in
such action shall be conclusive and binding upon the State of Oregon and such
department.
(2)
The complaint in such action shall set forth with particularity the nature of
any such lien had or claimed by the State of Oregon. The summons in such action,
together with a copy of the complaint therein, shall be served on such
department in the manner prescribed by ORCP 7 D(3)(h), and such summons shall
require such department to appear and answer the complaint within 60 days from
the date of such service. [1961 c.573 §4; 1979 c.284 §134; 1981 c.706 §6; 1985
c.816 §37; 1987 c.158 §43; 1989 c.948 §7; 2003 c.804 §63]
305.140 Power to release real property
from certain tax liens. (1) Any person having an
interest in or lien upon any real property may request the Department of
Revenue in writing to release such real property from a cloud on the title of
or lien on such property existing, created or continued under any one or more
of the following:
(a)
A warrant provided for in ORS 314.430, 321.570 or 323.610; or
(b)
The provisions of ORS 311.673, 311.679, 311.689, 311.711 or 311.771.
(2)
If, upon a request under subsection (1) of this section, the department finds
that a sale of such real property would not result in satisfaction in whole or
in part of the taxes due, it shall execute a release of such cloud or lien upon
such property, and such release shall be conclusive evidence of the removal and
extinguishment of such cloud or lien in respect of such real property.
(3)
In addition to the release of cloud or lien provided for in subsection (1) of
this section, the department may execute releases on part or all of any real
property in the following cases, which releases shall be conclusive evidence of
the removal and extinguishment of such cloud or lien:
(a)
If the department finds that liability for the amount assessed, together with
all interest thereon and penalties and costs in respect thereof, has been
satisfied;
(b)
If the department finds that the fair market value of that part of the property
remaining subject to the cloud or lien is at least double the amount of the
liability remaining unsatisfied in respect of such tax and the amount of all
prior liens upon the property;
(c)
If there is supplied to the department either an irrevocable letter of credit
issued by an insured institution as defined in ORS 706.008 or a bond, in such
form and with such surety as the department considers sufficient, conditioned
upon the payment of the amount of the warrant, together with all interest in
respect thereof, within 60 days after the issuance of the release; or
(d)
If there is paid to the department in partial satisfaction of the amount of the
warrant provided for in ORS 314.430, 321.570 or 323.610 or the amount of any
lien under ORS 311.673, 311.679, 311.689, 311.711 or 311.771, an amount not
less than the value, as determined by the department, of the lien of the State
of Oregon upon the part of the property so to be released. In determining such
value the department shall give consideration to the fair market value of the
part of the property so to be released and to such liens thereon as have
priority to the lien of the State of Oregon. [1961 c.573 §3 (enacted in lieu of
314.435, 315.635 and 321.085); 1981 c.706 §7; 1985 c.816 §38; 1987 c.158 §44;
1989 c.948 §8; 1991 c.331 §53; 1997 c.631 §448]
305.145 When interest required to be
waived; power to waive, reduce or compromise small tax balance or penalty and
interest; rules. (1) The Department of Revenue or
a county tax collector shall waive interest on an assessment if the taxpayer
has failed to make a timely payment or has received an incorrect refund
because:
(a)
An employee of the department or of a county tax collector acting in an
official capacity, who had knowledge of the necessary facts, misled the taxpayer
either by some erroneous factual representation or by a course of dealing or
conduct;
(b)
The taxpayer relied on the misleading factual representation or conduct; and
(c)
The taxpayer failed to make a timely payment or has received an incorrect refund
by reason of the taxpayer’s reliance on the information or course of conduct.
(2)
Notwithstanding the provisions of subsection (1) of this section, interest may
not be waived after the appeal period for a final determination has expired.
(3)
The Department of Revenue may, in its discretion, upon good and sufficient
cause, according to and consistent with its rules and regulations, upon making
a record of its reason therefor, waive, reduce or
compromise any tax balance of $50 or less or any part or all of the interest
provided by the laws of the State of Oregon that are collected by the
Department of Revenue.
(4)
The department may establish by rule instances in which the department may, in
its discretion, waive any part or all of penalties provided by the laws of the
State of Oregon that are collected by the department. Rules adopted under this
subsection are limited to the waiver or reduction of penalties in cases where:
(a)
Good and sufficient cause exists for the actions of a taxpayer that resulted in
the imposition of a penalty;
(b)
The actions of a taxpayer that resulted in the imposition of a penalty
constitute a first-time offense on the part of the taxpayer; or
(c)
The actions of the department enhance long-term effectiveness, efficiency or administration
of the tax system. [1965 c.293 §1; 1971 c.611 §1; 1985 c.761 §8; 1987 c.477 §1;
1995 c.650 §108; 2005 c.136 §1]
305.150 Closing agreements.
(1) The Department of Revenue is authorized to enter into an agreement in
writing with any person relating to the liability of such person, or of the
person or estate for whom the person acts, for any taxable period open to
adjustment under the pertinent statutes of limitation, in respect of any
revenue measure which the department is required to administer.
(2)
Such agreement shall be final and conclusive on the date agreed to, and, except
upon a showing of fraud or malfeasance or misrepresentation of a material fact,
the question, issue or case shall not be reopened as to the matters agreed
upon, and, in any action, suit or proceeding, such agreement, or any
determination, assessment, collection, refund, abatement or credit made in
accordance therewith shall not be annulled, modified, set aside or disregarded.
[Formerly 306.720; 1969 c.520 §26]
305.155 Cancellation of uncollectible tax;
filing order; releasing liens. (1) The
Department of Revenue shall cancel an unpaid tax imposed by laws of the State
of Oregon that is collected by the department, including any penalty or
interest applicable to the tax, if the department determines that:
(a)
The tax has been delinquent for seven or more years;
(b)
All reasonable efforts have been made to effect collection;
(c)
The taxpayer cannot be located or is dead; and
(d)
The tax is wholly uncollectible.
(2)
The department may cancel any tax imposed by laws of the State of Oregon that
is collected by the department or any portion of the tax assessed against a
person, including any penalty and interest that has not been collected, if the
department determines that the administration and collection costs involved
would exceed the amount that can reasonably be expected to be recovered.
(3)
When taxes are canceled under subsection (1) or (2) of this section, the
department shall make an order canceling the tax, penalties and interest. The
order shall be filed in the records of the department. Upon making the order,
the department also shall cause to be canceled or released any lien of record
in the counties that may have been filed and entered therein. [1965 c.293 §2;
1973 c.402 §5; 1989 c.934 §2; 2003 c.46 §2]
305.157 Extending statutory periods of
limitation. (1) The Director of the Department of
Revenue by order may extend any statutory period of limitation for taking
action on any tax that is collected by the Department of Revenue when the
director determines, in the director’s sole discretion, that an action of the
Internal Revenue Service or a state-declared emergency will impair the ability
of Oregon taxpayers or the state to take the action required within the time
prescribed by law. The order may apply retroactively and extend a period of
limitation that, as of the date of the order, has expired.
(2)
The Secretary of State shall publish the order in the bulletin referred to in
ORS 183.360. [2003 c.168 §2]
305.160 Reports from public officers.
The Department of Revenue shall require from any state, county or municipal
officer, whose duties pertain to the assessment, apportionment, levy or
collection of taxes and public revenues, or the disbursement of public funds,
reports and statements in such forms as the department may prescribe, as to any
matter deemed material and relevant to the attainment of uniformity in the
assessment and collection of taxes and public revenues. [Formerly 306.160]
305.170 Complaints concerning tax laws;
reports and recommendations to Legislative Assembly.
The Department of Revenue:
(1)
Shall see that complaints concerning the law may be heard, information as to
its effects may be collected and all proper suggestions as to amendments may be
made.
(2)
Shall report to the Legislative Assembly, at each odd-numbered year regular
session, the total amount of taxes collected in the state for state, county and
municipal purposes.
(3)
May investigate the tax laws of this and other states and the possible taxable
resources of this state for the purpose of recommending to the legislature
methods by which a more just and equitable system of taxation may be developed.
(4)
Shall recommend to the Legislative Assembly at each odd-numbered year regular
session such amendments of the Constitution or laws as may seem necessary to
remedy injustice or irregularity in taxation, or to facilitate the assessment
and collection of public taxes and revenues. [Formerly 306.170; 1975 c.605 §16;
2011 c.545 §40]
305.180 Effect of tax warrant for purposes
of out-of-state collection. (1) For the purposes of
out-of-state collections, a tax warrant shall have the effect of a judgment as
provided by ORS 205.125 and 314.430. However, if the laws of another state require
a judgment issued by a court for the purposes of executing creditor’s remedies
in that state, the Department of Revenue may obtain a judgment based upon a tax
warrant as provided in this section.
(2)
The department shall give 30 days’ written notice to any person subject to a
warrant for the collection of taxes, penalties or interest of its intention to
obtain a judgment in the Oregon Tax Court. Such notice shall be given by either
certified or registered mail. The person subject to the warrant shall have 30
days from the date of mailing of the notice to:
(a)
Pay the amount of taxes, penalties and interest due; or
(b)
File a complaint in the Oregon Tax Court contesting the validity of the
warrant.
(3)
If the amount due is not paid or an appeal to the Oregon Tax Court is not made
within 30 days from the date of mailing of the notice, the department may
petition the Oregon Tax Court to enter a judgment in the amount indicated in
the warrant plus interest.
(4)
Upon a showing by the department, by affidavit or otherwise, that the
department has complied with the provisions governing the issuance of a warrant
and the provisions of this section, the Oregon Tax Court shall enter a judgment
against the person subject to the warrant in the amount indicated in the
warrant plus interest.
(5)
Appeals from judgments issued under subsection (4) of this section shall be
made in the manner provided for appeal of a judgment of the Oregon Tax Court. [1989
c.423 §2; 1995 c.53 §1; 1995 c.650 §109]
305.182 Filing of warrants for unpaid
taxes; release, cancellation and satisfaction.
(1) The Department of Revenue may file warrants issued against any taxpayer for
unpaid taxes in the Office of the Secretary of State as provided in this
section.
(2)
Certification of warrants for unpaid taxes by the Director of the Department of
Revenue, or the representative of the director, entitles the warrants to be
filed and no other certification or acknowledgment is necessary.
(3)
If a warrant described in subsection (1) of this section is presented to the
Secretary of State for filing, the Secretary of State shall cause the warrant
to be marked, held and indexed in accordance with the provisions of ORS 79.0519
as if the warrant were a financing statement within the meaning of ORS chapter
79.
(4)
If a certificate of release, cancellation or satisfaction of any warrant is
presented to the Secretary of State for filing, the Secretary of State shall:
(a)
Cause a certificate of release to be marked, held and indexed as if the
certificate were a termination statement within the meaning of ORS 79.0512.
(b)
Cause a certificate of cancellation or satisfaction to be held, marked and
indexed as if the certificate were a release of collateral within the meaning
of ORS 79.0512. [Formerly 314.432; 2001 c.445 §172]
305.184 Certificate of outstanding
warrants; fee; rules. (1) Upon request of any person,
the Secretary of State shall issue a certificate showing whether there is on
file in the Office of the Secretary of State, on the date and hour stated therein, any warrant described in ORS 305.182
(1), or certificate or notice affecting any warrant naming a particular person,
and if a notice or certificate is on file, giving the date and hour of its
filing. All financing statements and statements of assignment, if any, filed
pursuant to ORS chapter 79 for a particular debtor whose name is identical to
the particular person named in the warrant shall be shown on this certificate.
The uniform fee for such a certificate for a particular person shall be
prescribed by the Secretary of State by rule. If the request for the
certificate is in writing and not in the standard form prescribed by the
Secretary of State, an additional fee shall be prescribed. Upon request, the
Secretary of State shall furnish a copy of any warrant or notice or certificate
affecting a warrant for a fee per page, the fee to be as prescribed by the
Secretary of State by rule. No fee prescribed under this subsection shall
exceed $5.
(2)
Notwithstanding the provisions of ORS 79.0525 or subsection (1) of this
section, relating to the time and manner of the payment of fees to the
Secretary of State, the fee for filing and indexing each warrant described in
ORS 305.182 (1) shall be charged and collected in the same manner as provided
in ORS 205.395 for payment by a state agency of fees due to the county clerk
for recording warrants. [Formerly 314.434; 2001 c.445 §173]
305.190 Subpoenaing and examining
witnesses, books and papers; application to tax court for disobeyance
of subpoena. (1) Subject to ORS 305.390 and 305.392,
the Director of the Department of Revenue, in conformity to the resolutions or
rules of the Department of Revenue, may subpoena and examine witnesses,
administer oaths and order the production of any books or papers in the hands
of any person, company or corporation, whenever necessary in the prosecution of
any inquiries deemed necessary or proper.
(2)
If any person disobeys any subpoena of the director, or refuses to testify when
required by the director, the department may apply to the Oregon Tax Court for
an order to the person to produce the books and papers or attend and testify,
or otherwise comply with the demand of the department. The application to the
court shall be by ex parte motion upon which the court shall make an order
requiring the person against whom it is directed to appear before the court in
the county in which the person resides or has a place of business on such date
as the court shall designate in its order and show cause why the person should
not comply with the demand of the department. The order shall be served upon
the person to whom it is directed in the manner required by this state for
service of process, which service shall be required to confer jurisdiction upon
the court. Upon failure of such person to show cause for noncompliance, the
court shall make an order requiring the person to comply with the demand of the
department within such time as the court shall direct. Failure to obey any
order issued by the court under this section is contempt of court. The remedy
provided by this section shall be in addition to other remedies, civil or
criminal, existing under the tax laws or other laws of this state.
(3)
ORS 305.420 (4) applies to the issuance of a subpoena under this section. [Formerly
306.190; 1977 c.884 §4; 1981 c.139 §7; 1993 c.353 §5; 2003 c.46 §3; 2005 c.345 §3]
305.192 Disclosure of books and papers
relating to appraisal or assessment of industrial property.
(1) Notwithstanding ORS 192.410 to 192.505 or any other law or rule, any books
or papers produced by an owner or any other person with respect to an
industrial property, pursuant to an order issued under ORS 305.190 (1) in
connection with the appraisal or assessment of industrial property, shall be
exempt from disclosure by the Department of Revenue. No subpoena or judicial
order shall be issued compelling the department or any of its officers or
employees to disclose those books or papers.
(2)
Notwithstanding subsection (1) of this section, the department may disclose,
subject to any order entered by the court limiting further disclosure, any
books or papers, or any part or all of the information contained therein, in a
judicial proceeding involving the value of that industrial property with
respect to which the books and papers were produced or any other similar
industrial property.
(3)
Before the department discloses information under subsection (2) of this
section, it shall notify the owner of the property to which the information
relates. The owner shall have 30 days to seek an order from the tax court
prohibiting or limiting the department’s disclosure of the information. In
determining whether to allow disclosure of the information, the court shall
consider the need for disclosure and the possible harm to the owner from that
disclosure. The decision of the tax court is reviewable by the Supreme Court in
the same manner as any other decision of the tax court. [1991 c.903 §3; 1995
c.650 §83]
305.193 Disclosure of tax information to designated
persons; rules. (1) Notwithstanding any law
restricting the disclosure of taxpayer particulars or other tax information,
the Department of Revenue may adopt rules permitting the disclosure of
particulars or other tax information to a person designated by a taxpayer,
either expressly or by implication, to receive the information. The department
may consider a person designated by implication if the person reveals to the
department knowledge of tax information that is:
(a)
Related to the tax matter that is the subject of the inquiry or communication;
(b)
Of a nature that is generally known only to the taxpayer; and
(c)
Of a nature that a taxpayer ordinarily would not share with another person
except for the purpose of empowering that person to receive information
regarding the tax matters of the taxpayer.
(2)
Rules adopted under this section may be limited in application to specific tax
programs or specific classes of taxpayers.
(3)
This section does not apply to any particulars or other tax information
collected for purposes of administering the provisions of ORS chapter 657.
(4)
As used in this section, “particulars” has the meaning given that term in ORS
314.835. [2003 c.541 §3]
305.195 Written interrogatories; contents;
time and manner of service; answer; objection; order for answer; demand for
information by taxpayer; order for information.
(1) The Department of Revenue may serve upon any taxpayer written
interrogatories to be answered by the taxpayer served or, if the taxpayer
served is a corporation, partnership or association, by any officer or agent,
who shall furnish such information as is available to the taxpayer.
Interrogatories may be served by the department whenever it deems it necessary
for the purpose of determining the tax liability of any taxpayer having income
from business activity which is taxable both within and without the state. The
request for the interrogatories shall explain the nature of the department’s
inquiry, the use to be made of the information, and the rights of appeal
provided under subsection (4) of this section. The use of interrogatories shall
be available at all times prior to a final order or determination by the
department in the matter being investigated.
(2)
Each interrogatory shall be answered separately and fully in writing under
oath, unless it is objected to, in which event the reasons for objection shall
be stated in lieu of an answer. The answers are to be signed by the person
making them. All objections made to written interrogatories must be signed by
the attorney for the party making the objection, or by the party if the party
has no attorney. The taxpayer upon whom the interrogatories have been served
shall serve a copy of the answers, and objections if any, within 30 days after
the service of the interrogatories.
(3)
If any taxpayer refuses or fails to answer an interrogatory within the time
required, the department may apply to the Oregon Tax Court for an order
requiring answer of the interrogatory served. The application to the court
shall be by ex parte motion upon which the court shall make an order requiring
the taxpayer against whom it is directed to appear before the court on such
date as the court shall designate in its order and show cause why the taxpayer
should not answer the interrogatory of the department. The order shall require
appearance in the county in which the person resides or has a place of
business, or if there is no residence or place of business, at the court at
Salem, Oregon, or in any event at such place as is agreeable to the parties and
the court. The order shall be served upon the person to whom it is directed in
the manner required by this state for service of process, which service shall
be required to confer jurisdiction upon the court. Upon failure of such person
to show cause for noncompliance, the court shall make an order requiring the
person to comply with the demand of the department within such time as the
court shall direct. Failure to obey any order issued by the court under this
section is contempt of court. The remedy provided by this section shall be in
addition to other remedies, civil or criminal, existing under the tax laws or
other laws of this state.
(4)
If, after the taxpayer has been served with the department’s interrogatories,
the taxpayer has reason to believe that the taxpayer has not been fully
informed by the department as to the nature of the department’s inquiry or the
use by the department of the information supplied, the taxpayer may, within 30
days after service upon the taxpayer, serve upon the department a demand for
full information as to such inquiry and use. The department shall answer the
demand within 30 days of receipt. If no answer is made by the department, or if
answer is made and the answer is deemed unsatisfactory by the taxpayer, the
taxpayer may within 30 days of the department’s answer, or 60 days of the
demand if no answer has been made, apply to the Oregon Tax Court for an order
requiring answer of the department by filing a petition in the manner provided
by law for filing a personal income tax appeal to the court. The department
shall answer and, after hearing, the court shall make such disposition of the
matter as it deems necessary to achieve justice. [1977 c.866 §8]
Note:
305.195 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 305 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
305.200 Witness fees and mileage.
Witnesses testifying before the Department of Revenue at its request and on its
behalf shall be allowed the fees and mileage provided for witnesses in ORS
44.415 (2). The fees and mileage shall be paid by warrant upon the State
Treasurer upon the certificate of the Director of the Department of Revenue.
However, any county or state officer shall receive the actual necessary
traveling expenses of the county or state officer only. No tender of witness
fees or mileage in advance shall be necessary. [Formerly 306.200; 1969 c.520 §27;
1989 c.980 §11]
305.210
[Formerly 306.210; repealed by 1981 c.705 §8]
305.215 Conflicting claims for credit for
dependent; notice procedure; appeal; evidence as public record.
(1) Where there are conflicting claims to a personal exemption credit for a
dependent allowed under the personal income tax laws, the Department of Revenue
shall notify by certified mail each person claiming the same dependent, and
shall set a time and place convenient to each claim insofar as it is
practicable, for a joint determination of the conflicting claims. Each person
so notified who appears shall bring the information from the person’s income
tax returns or reports that supports the person’s claim, together with all
records, data or other evidence providing the necessary supporting material to
the information shown on the income tax return. All such material shall be
available for inspection by the other claimant, notwithstanding any provision
of ORS 314.835, 314.840 or 314.991. If either claimant fails or refuses to
appear or bring such information in part or in whole, the department shall make
its determination on the basis of all the information and evidence supplied.
The provisions of this chapter relating to the administration of the personal
income tax laws apply to the determination.
(2)
If an appeal is taken to the Oregon Tax Court pursuant to ORS 305.560 by either
claimant, each claimant shall make available to the court information from the
person’s income tax returns or reports supporting that person’s claim, together
with all evidence or supporting data furnished to or subpoenaed by the
Department of Revenue, as well as such other information as may be presented to
the court in the manner otherwise provided for in the hearing of cases in the
Oregon Tax Court. If either claimant fails or refuses to appear or bring such
information in part or in whole, the court shall make its determination on the
basis of all the evidence introduced. All such evidence shall constitute a
public record and shall be available to the parties and the court
notwithstanding any provision of ORS 314.835, 314.840 or 314.991. [1979 c.690 §11;
1985 c.345 §4; 1987 c.293 §61; 2005 c.94 §18]
305.217 When deduction for amounts paid as
wages or remuneration permitted. No deduction
shall be allowed under ORS chapter 316, 317 or 318 to an individual or entity
for amounts paid as wages or as remuneration for personal services if that
individual or entity fails to report the payments as required by ORS 314.360 or
316.202 on the date prescribed therefor (determined
with regard to any extension of time for filing) unless it is shown that the
failure to report is due to reasonable cause and not done with the intent to
evade payment of the tax imposed by ORS chapter 316 or to assist another in
evading the payment of such tax. [1987 c.843 §2]
305.220 Interest on deficiency,
delinquency or refunds; adjustments in rates; rules; computation.
(1) Unless specifically provided otherwise by statute or by rule of the
Director of the Department of Revenue adopted pursuant to subsection (3) of
this section, every deficiency or delinquency arising under any law
administered by the Department of Revenue shall bear simple interest at the
rate of five-sixths of one percent per month or fraction thereof.
(2)
Unless specifically provided otherwise by statute or by rule of the director
adopted pursuant to subsection (3) of this section, every refund arising under
any law administered by the department shall, subject to subsections (3) and
(5) of this section and ORS 305.222, bear simple interest at the rate of
five-sixths of one percent per month, or fraction thereof.
(3)(a)
If the director determines that the rates of interest for deficiencies,
delinquencies and refunds established in subsections (1) and (2) of this
section are at least one percentage point more or less than the prevailing
rates of interest established by the Internal Revenue Service for underpayments
arising under the federal tax laws to which one percentage point has been
added, the director may adopt, by rule, adjusted interest rates. The director
shall not adopt adjusted interest rates more than once in a calendar year.
Notice of intent to adopt adjusted interest rates shall be given in the manner
provided in ORS 183.335, not less than three months before the proposed
effective date of the adjusted rates.
(b)
In establishing the adjusted interest rates to be adopted under this
subsection:
(A)
The director shall take into consideration the current interest rates
established by the Internal Revenue Service for underpayments arising under the
federal tax laws.
(B)
To any interest amount determined by taking into consideration the current
interest rates established by the Internal Revenue Service for underpayments
under subparagraph (A) of this paragraph, which interest amount shall be
expressed at a rate per month or fraction thereof, there shall be added
one-twelfth of one percent.
(4)
If the director adopts an adjusted interest rate for deficiencies and
delinquencies, the director shall adopt an adjusted interest rate for refunds
that is equal to the adjusted interest rate for deficiencies and delinquencies.
(5)
Any change in the rate of interest applicable to deficiencies, delinquencies or
refunds resulting from the adoption of adjusted interest rates by the director
under this section shall apply to deficiencies, delinquencies and refunds
outstanding on the effective date of the rule, or arising on or after that
date, but only with respect to interest periods beginning on or after that
date.
(6)
If the rate of interest on a deficiency, a delinquency or a refund is governed
by this section, and if a fraction of a month is involved in making the
computation of interest on the deficiency, delinquency or refund, then for the
fractional month, the simple interest otherwise provided shall be computed on a
daily basis. [1982 s.s.1 c.16 §2; 1987 c.647 §5; 2001 c.114 §§2,4]
305.222 Determination of interest rate.
For purposes of determining the interest rate established under ORS 305.220:
(1)
In the case of a refund of tax ordered by the Oregon Tax Court or the Oregon Supreme
Court and arising under any law administered by the Department of Revenue, if
the refund is not paid by the department within 60 days after the date of the
order, the interest rate provided under ORS 305.220 shall be one-third of one
percent greater than that so provided under ORS 305.220, but only with respect
to interest periods that begin 61 days after the date the order is entered.
(2)(a)
In the case of a notice of assessment pursuant to any law administered by the
department, if the deficiency is not paid within 60 days after the date of the
notice of assessment, the interest rate provided under ORS 305.220 shall be
one-third of one percent greater than that so provided under ORS 305.220, but
only for interest periods that begin 61 days after the date of notice of
assessment.
(b)
In the case of an assessment under ORS 305.265 (12), if the delinquency is not
paid within 60 days after the date of the assessment, the interest rate
provided under ORS 305.220 shall be one-third of one percent greater than that
so provided under ORS 305.220. The increased rate shall apply only for interest
periods that begin 61 days after the date of notice of the delinquency.
(3)
If the deficiency assessment is appealed to the Oregon Tax Court without prior
payment of tax, then notwithstanding subsection (2) of this section, the
increased rate of interest shall commence only for interest periods that begin
61 days after the date that the order of the Oregon Tax Court or the Oregon
Supreme Court affirming the deficiency is entered. [1987 c.647 §7; 1993 c.726 §2;
1995 c.650 §110; 1997 c.325 §§3,4]
305.225 Request of assistance by law
enforcement agency; disclosure of tax records.
(1) Notwithstanding ORS 314.835, if the Department of Revenue determines that
assistance of a law enforcement agency is necessary to insure compliance with
any of the laws of this state administered by it, the department may request
such assistance. In connection with assistance requested under this section
only, the Department of Revenue may disclose a tax return, report or claim, or
information in its files regarding a tax return, report or claim permitted or
required to be filed with the department under any law administered by the
department to the Oregon State Police, district attorney, grand jury, judicial
authority or local law enforcement agency for the investigation or the
prosecution of violations of the criminal laws of this state relating to
perjury, theft or forgery if those violations occur in connection with the
filing of such a return, report or claim, or of the tax laws of this state.
Disclosure under this section shall be solely for the purpose of investigation
or prosecution of violations involving the filing of a false or fraudulent
return, report or claim, wherein the validity of the return, report or claim,
or information contained therein, is at issue. Returns, reports or claims, or
information contained therein shall not be disclosed if the purpose for which
the information is sought is as evidence of a crime unrelated to the validity
of the return, report or claim, or the information contained therein, supplied
to the department or if the information is requested by a law enforcement
agency in connection with any other investigation or prosecution.
(2)
Each person given access to the confidential tax information authorized to be
disclosed under this section shall first execute and file with the department
the certificate required by ORS 314.840 (3) and shall cause a similar
certificate to be executed and filed with the department by any associate or
subordinate who is assigned to use the information for the purposes stated in
this section. [1985 c.761 §26; 2009 c.640 §1]
305.227 [1985
c.85 §2; repealed by 1993 c.593 §10]
305.228 Penalty for second dishonored
payment of taxes; waiver. (1) The Department of Revenue
shall assess a penalty against any person who has previously tendered a
dishonored check, draft, order or electronic funds transfer for the payment of
any amount collected by the department and who subsequently makes and tenders
to the department any check, draft, order or electronic funds transfer for the
payment of any tax or any other amount collected by the department, including
amounts assigned for collection under ORS 293.250, that is dishonored by the drawee for the following reasons:
(a)
Lack of funds;
(b)
Lack of credit;
(c)
Because the maker has no account with the drawee; or
(d)
Because the maker has ordered payment stopped on the check, draft, order or
electronic funds transfer.
(2)
The amount of the penalty assessed under subsection (1) of this section shall
be equal to the greater of $25 or three times the amount of the dishonored
check, draft, order or electronic funds transfer. The amount of the penalty
shall not be greater than $500.
(3)
The penalty imposed under this section is in addition to any other penalty
imposed by law. Any person against whom a penalty is assessed under this
section may appeal to the tax court as provided in ORS 305.404 to 305.560. If
the penalty is not paid within 10 days after the order of the tax court becomes
final, the department may record the order and collect the amount assessed in
the manner as income tax deficiencies are recorded and collected under ORS
314.430.
(4)
The department may waive all or any part of the penalty assessed under this
section on a showing that there was a reasonable basis for tendering the check,
draft, order or electronic funds transfer.
(5)
As used in this section, “electronic funds transfer” has the meaning given that
term in ORS 293.525. [1985 c.85 §3; 1995 c.650 §111; 1999 c.61 §1]
305.229 When penalties not imposed; rules.
Notwithstanding any other provision of the tax laws of this state that are
administered by the Department of Revenue, the department may adopt rules
setting forth circumstances or conditions under which a penalty that otherwise
would be imposed under those tax laws is not imposed. [2003 c.317 §5]
(Representation of Taxpayer)
305.230 Qualifications of persons
representing taxpayer; procedure for designating representative; rules.
(1) Notwithstanding ORS 9.320:
(a)
Any person who is qualified to practice law or public accountancy in this
state, any person who has been granted active enrollment to practice before the
Internal Revenue Service and who is qualified to prepare tax returns in this
state or any person who is the authorized employee of a taxpayer and is
regularly employed by the taxpayer in tax matters may represent the taxpayer
before a tax court magistrate or the Department of Revenue in any conference or
proceeding with respect to the administration of any tax.
(b)
Any person who is licensed by the State Board of Tax Practitioners or who is
exempt from such licensing requirement as provided for and limited by ORS
673.610 may represent a taxpayer before a tax court magistrate or the
department in any conference or proceeding with respect to the administration
of any tax on or measured by net income.
(c)
Any shareholder of an S corporation, as defined in section 1361 of the Internal
Revenue Code, as amended and in effect on December 31, 2010, may represent the
corporation in any proceeding before a tax court magistrate or the department
in the same manner as if the shareholder were a partner and the S corporation
were a partnership. The S corporation must designate in writing a tax matters
shareholder authorized to represent the S corporation.
(d)
An individual who is licensed as a real estate broker or principal real estate
broker under ORS 696.022 or is a state certified appraiser or state licensed
appraiser under ORS 674.310 or is a registered appraiser under ORS 308.010 may
represent a taxpayer before a tax court magistrate or the department in any
conference or proceeding with respect to the administration of any ad valorem
property tax.
(e)
A general partner who has been designated by members of a partnership as their
tax matters partner under ORS 305.242 may represent those partners in any
conference or proceeding with respect to the administration of any tax on or
measured by net income.
(f)
Any person authorized under rules adopted by the department may represent a
taxpayer before the department in any conference or proceeding with respect to
any tax. Rules adopted under this paragraph, to the extent feasible, shall be
consistent with federal law that governs representation before the Internal
Revenue Service, as federal law is amended and in effect on December 31, 2010.
(g)
Any person authorized under rules adopted by the tax court may represent a
taxpayer in a proceeding before a tax court magistrate.
(2)
A person may not be recognized as representing a taxpayer pursuant to this
section unless there is first filed with the magistrate or department a written
authorization, or unless it appears to the satisfaction of the magistrate or
department that the representative does in fact have authority to represent the
taxpayer. A person recognized as an authorized representative under rules or
procedures adopted by the tax court shall be considered an authorized
representative by the department.
(3)
A taxpayer represented by someone other than an attorney is bound by all things
done by the authorized representative, and may not thereafter claim any
proceeding was legally defective because the taxpayer was not represented by an
attorney.
(4)
Prior to the holding of a conference or proceeding before the tax court
magistrate or department, written notice shall be given by the magistrate or
department to the taxpayer of the provisions of subsection (3) of this section.
[1969 c.97 §1; 1973 c.681 §3; 1979 c.596 §1; 1985 c.761 §40; 1985 c.802 §35;
1987 c.468 §6; 1989 c.414 §3; 1991 c.5 §19; 1995 c.79 §106; 1995 c.556 §30;
1995 c.650 §12; 1997 c.839 §41; 1999 c.90 §28; 1999 c.224 §4; 1999 c.322 §36;
2001 c.300 §59; 2001 c.660 §23; 2003 c.46 §4; 2003 c.77 §1; 2003 c.704 §14a;
2005 c.345 §4; 2005 c.346 §1; 2005 c.832 §13; 2007 c.319 §28; 2007 c.614 §1;
2008 c.45 §1; 2009 c.5 §11; 2009 c.909 §11; 2010 c.82 §11; 2011 c.7 §11]
305.240 [1969
c.520 §14; repealed by 1979 c.596 §2]
305.242 Representation before department
or magistrate of designated partnership tax matters; designated tax partner.
(1) When the treatment of partnership items on a partner’s return is consistent
with the treatment of that item on the partnership return and results in a
notice of deficiency, the partners may designate a tax matters partner to
represent each of them before the Department of Revenue in any conference or
before a tax court magistrate in any proceeding with respect to the
administration of any tax on or measured by net income.
(2)
The designation of a tax matters partner shall be made in writing and filed
with the department or magistrate within 30 days after the date of the notice
of deficiency. The tax matters partner must be:
(a)
A general partner in the partnership at some time during the taxable year; or
(b)
A general partner in the partnership at the time the designation is made.
(3)
If a notice explaining the partnership adjustments is mailed by the department
to the tax matters partner with respect to any partnership taxable year, the
tax matters partner shall supply the department or, if applicable, the
magistrate with the name, address, profits interest and taxpayer identification
number of each person who was a partner in the partnership at any time during
the taxable year, unless that information was provided in the partnership
return for that year.
(4)
A timely request for a conference filed with the department or appeal filed
with the tax court by the tax matters partner shall be considered as a request
or an appeal by all of the partners represented by the tax matters partner, and
all issues regarding treatment of partnership items shall be resolved in a
single conference.
(5)
A partner who elects to be represented by a tax matters partner shall be bound
by all things done by the tax matters partner and may not thereafter claim that
any act or proceeding was legally defective because the partner was not
represented by an attorney. [1989 c.414 §1; 1995 c.650 §13]
Note:
305.242 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 305 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
305.245 Representation before tax court
magistrate by officer or employee of county or department.
Notwithstanding ORS 8.690, 9.160, 9.320, ORS chapter 180, ORS 203.145 or other
law, in any conference or proceeding before a tax court magistrate with respect
to the administration of any tax, a county or the Department of Revenue may be
represented by any officer or authorized employee of the county or department. [1985
c.761 §39; 1995 c.650 §14]
305.250 [1969
c.520 §12; repealed by 1975 c.705 §12]
305.260 Representation before department
or magistrate by former department personnel prohibited.
No former officer, clerk or employee of the Department of Revenue shall
represent any taxpayer in any claim or controversy pending in the Department of
Revenue or in the magistrate division of the tax court during the employment of
the former officer, clerk or employee therein, nor shall the former officer,
clerk or employee in any manner or by any means, aid in the prosecution of any
such claim, within two years next after the former officer, clerk or employee
has ceased to be such officer, clerk or employee. [1973 c.402 §25(1); 1995
c.650 §15]
(Tax Deficiencies; Notice; Appeals)
305.263 Order requiring filing report or
return; show cause; contempt; appeal. (1) If a
person fails to file a report or return within 60 days of the time prescribed
by any tax law administered by the Department of Revenue, the department may
petition the Oregon Tax Court for an order requiring the person to file the
report or return or to show cause why the person is not required to file the
report or return.
(2)
Within 10 days after the filing of the petition, the tax court shall enter an
order directing the person to file the report or return or to appear and show
cause why no report or return is required to be filed. The petition and order
shall be served upon the person in the manner provided by law for service of a
complaint filed in the tax court. Not later than 20 days after service, the
person shall:
(a)
File the requested report or return with the department;
(b)
Request from the court an order granting reasonable time within which to file
the requested report or return with the department; or
(c)
File with the court an answer to the petition showing cause why such report or
return is not required to be filed.
(3)(a)
If an answer is filed, the court shall set the matter for hearing within 20
days from the filing of the answer, and shall determine the matter in an
expeditious manner, consistent with the rights of the parties.
(b)
If the person fails to answer within the time prescribed, or if the person
fails to obey any order entered by the tax court under this section, such
failure is punishable as contempt of court.
(4)
An appeal may be taken to the Supreme Court as provided in ORS 305.445, from an
order of the tax court made and entered after a hearing and determination under
subsection (3) of this section.
(5)
Costs shall be awarded to the prevailing party. [1985 c.266 §3]
305.265 Deficiency notice; payment of
deficiency; assessment; appeal; interest; rules.
(1) Except as provided in ORS 305.305, the provisions of this section apply to
all reports or returns of tax or tax liability including claims under ORS
310.630 to 310.706 filed with the Department of Revenue under the revenue and
tax laws administered by it, except those filed under ORS 320.005 to 320.150.
(2)
As soon as practicable after a report or return is filed, the department shall
examine or audit it, if required by law or the department deems such
examination or audit practicable. If the department discovers from an
examination or an audit of a report or return or otherwise that a deficiency
exists, it shall compute the tax and give notice to the person filing the
return of the deficiency and of the department’s intention to assess the
deficiency, plus interest and any appropriate penalty. Except as provided in
subsection (3) of this section, the notice shall:
(a)
State the reason for each adjustment;
(b)
Give a reference to the statute, regulation or department ruling upon which the
adjustment is based; and
(c)
Be certified by the department that the adjustments are made in good faith and
not for the purpose of extending the period of assessment.
(3)
When the notice of deficiency described in subsection (2) of this section
results from the correction of a mathematical or clerical error and states what
would have been the correct tax but for the mathematical or clerical error,
such notice need state only the reason for each adjustment to the report or
return.
(4)
With respect to any tax return filed under ORS chapter 314, 316, 317 or 318,
deficiencies shall include but not be limited to the assertion of additional
tax arising from:
(a)
The failure to report properly items or amounts of income subject to or which
are the measure of the tax;
(b)
The deduction of items or amounts not permitted by law;
(c)
Mathematical errors in the return or the amount of tax shown due in the records
of the department; or
(d)
Improper credits or offsets against the tax claimed in the return.
(5)(a)
The notice of deficiency shall be accompanied by a statement explaining the
person’s right to make written objections, the person’s right to request a
conference and the procedure for requesting a conference. The statement, and an
accompanying form, shall also explain that conference determinations are routinely
transmitted via regular mail and that a person desiring to have conference
determinations transmitted by certified mail may do so by indicating on the
form the person’s preference for certified mail and by returning the form with
the person’s written objections as described in paragraph (b) of this
subsection.
(b)
Within 30 days from the date of the notice of deficiency, the person given
notice shall pay the deficiency with interest computed to the date of payment
and any penalty proposed. Or within that time the person shall advise the
department in writing of objections to the deficiency, and may request a
conference with the department, which shall be held prior to the expiration of
the one-year period set forth in subsection (7) of this section.
(6)
If a request for a conference is made, the department shall notify the person
of a time and place for conference and appoint a conference officer to meet
with the person for an informal discussion of the matter. After the conference,
the conference officer shall send the determination of the issues to the
person. The determination letter shall be sent by regular mail, or by certified
mail if the person given notice has indicated a preference for transmission of
the determination by certified mail. The department shall assess any deficiency
in the manner set forth in subsection (7) of this section. If no conference is
requested and written objections are received, the department shall make a
determination of the issues considering such objections, and shall assess any
deficiency in the manner provided in subsection (7) of this section. The
failure to request or have a conference shall not affect the rights of appeal
otherwise provided by law.
(7)
If neither payment nor written objection to the deficiency is received by the
department within 30 days after the notice of deficiency has been mailed, the
department shall assess the deficiency, plus interest and penalties, if any,
and shall send the person a notice of assessment, stating the amount so
assessed, and interest and penalties. The notice of assessment shall be mailed
within one year from the date of the notice of deficiency unless an extension
of time is agreed upon as described in subsection (8) of this section. The
notice shall advise the person of the rights of appeal.
(8)
If, prior to the expiration of any period of time prescribed in subsection (7)
of this section for giving of notice of assessment, the department and the
person consent in writing to the deficiency being assessed after the expiration
of such prescribed period, such deficiency may be assessed at any time prior to
the expiration of the period agreed upon. The period so agreed upon may be
extended by subsequent agreements in writing made before the expiration of the
period agreed upon.
(9)
The failure to hold a requested conference within the one-year period
prescribed in subsection (5) of this section shall not invalidate any
assessment of deficiency made within the one-year period pursuant to subsection
(7) of this section or within any extension of time made pursuant to subsection
(8) of this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has been made,
the department and the person assessed may still hold a conference within 90
days from the date of assessment. If a conference is held, the 90-day period
under ORS 305.280 (2) shall run from the date of the conference officer’s
written determination of the issues.
(10)(a)
In the case of a failure to file a report or return on the date prescribed therefor (determined with regard to any extension for
filing), the department shall determine the tax according to the best of its
information and belief, assess the tax plus appropriate penalty and interest,
and give written notice of the failure to file the report or return and of the
determination and assessment to the person required to make the filing. The
amount of tax shall be reduced by the amount of any part of the tax which is
paid on or before the date prescribed for payment of the tax and by the amount
of any credit against the tax which may be lawfully claimed upon the return.
(b)
Notwithstanding subsection (14) of this section and ORS 305.280, and only to
the extent allowed by rules adopted by the department, the department may
accept the filing of a report or return submitted by a person who has been
assessed a tax under paragraph (a) of this subsection.
(c)
The department may reject a report or return:
(A)
That is not verified as required by ORS 305.810;
(B)
That the department determines is not true and correct as to every material
matter as required by ORS 305.815; or
(C)
If the department may impose a penalty under ORS 316.992 (1) with respect to
the report or return.
(d)
If the department rejects a report or return of a person assessed a tax under
paragraph (a) of this subsection, the department shall issue a notice of
rejection to the person. The person may appeal the rejection to the magistrate
division of the Oregon Tax Court only if:
(A)
The report or return was filed within 90 days of the date the department’s
assessment under paragraph (a) of this subsection was issued; and
(B)
The appeal is filed within 90 days of the date shown on the notice of
rejection.
(e)
If the person assessed under paragraph (a) of this subsection submits a report
or return to the department and appeals the assessment to the tax court, the
department may request a stay of action from the court pending review of the
report or return. If the department:
(A)
Accepts the filing of the report or return, the appeal shall be dismissed as
moot.
(B)
Rejects the report or return, the stay of action on the appeal shall be lifted.
(f)
If the department accepts the filing of a report or return, the department may
reduce the assessment issued under paragraph (a) of this subsection. A report
or return filed under this subsection that is accepted by the department,
whether or not the assessment has been reduced, shall be considered a report or
return described in subsection (1) of this section and shall be subject to the
provisions of this section, including but not limited to examination and
adjustment pursuant to subsection (2) of this section.
(g)
The department may refund payments made with respect to a report or return
filed and accepted pursuant to this subsection. If the report or return is
filed within three years of the due date for filing the report or return,
excluding extensions, the refund shall be made as provided by ORS 305.270 and
314.415. If the report or return is not filed within three years of the due
date for filing the report or return, excluding extensions, the refund shall be
limited to payments received within the two-year period ending on the date the
report or return is received by the department and payments received after the
date the report or return is received by the department. Interest shall be paid
at the rate established under ORS 305.220 for each month or fraction of a month
from the date the report or return is received by the department to the time
the refund is made.
(11)
Mailing of notice to the person at the person’s last-known address shall
constitute the giving of notice as prescribed in this section.
(12)
If a return is filed with the department accompanied by payment of less than
the amount of tax shown on or from the information on the return as due, the
difference between the tax and the amount submitted is considered as assessed
on the due date of the report or return (determined with regard to any
extension of time granted for the filing of the return) or the date the report
or return is filed, whichever is later. For purposes of this subsection, the
amount of tax shown on or from the information on the return as due shall be
reduced by the amount of any part of the tax that is paid on or before the due
date prescribed for payment of the tax, and by any credits against the tax that
are claimed on the return. If the amount required to be shown as tax on a
return is less than the amount shown as tax on the return, this subsection
shall be applied by substituting the lesser amount.
(13)
Every deficiency shall bear interest at the rate established under ORS 305.220
for each month or fraction of a month computed from the due date of the return
to date of payment. If the return was falsely prepared and filed with intent to
evade the tax, a penalty equal to 100 percent of the deficiency shall be
assessed and collected. All payments received shall be credited first to
penalty, then to interest accrued, and then to tax due.
(14)
If the deficiency is paid in full before a notice of assessment is issued, the
department is not required to send a notice of assessment, and the tax shall be
considered as assessed as of the date which is 30 days from the date of the
notice of deficiency or the date the deficiency is paid, whichever is the
later. A partial payment of the deficiency shall constitute only a credit to
the account of the person assessed. Assessments and billings of taxes shall be
final after the expiration of the appeal period specified in ORS 305.280,
except to the extent that an appeal is allowed under ORS 305.280 (3) following
payment of the tax.
(15)
Appeal may be taken to the tax court from any notice of assessment. The
provisions of this chapter with respect to appeals to the tax court apply to
any deficiency, penalty or interest assessed. [1977 c.870 §3; 1981 c.724 §3;
1982 s.s.1 c.16 §5; 1985 c.266 §4; 1987 c.512 §2; 1989 c.414 §4; 1993 c.726 §4;
1995 c.650 §27; 1995 c.780 §3; 1997 c.99 §§26,27; 1999 c.224 §1; 1999 c.249 §1;
1999 c.532 §1; 2001 c.76 §5; 2001 c.660 §21; 2005 c.94 §19]
305.267 Extension of time to issue notice
of deficiency or assessment. (1) As a part
of its application for an order for the enforcement of a subpoena under ORS
305.190 or for an answer to interrogatories under ORS 305.195, the Department
of Revenue may request the Oregon Tax Court for an order extending the time
within which the department may issue a notice of deficiency or assessment
under ORS 305.265.
(2)
The tax court or the Supreme Court upon appeal, shall extend the time for a
period ending 90 days after:
(a)
Delivery to the department of the documents and information ordered produced
under the subpoena; or
(b)
Delivery to the department of the answers ordered to be made to the department’s
interrogatories. [1985 c.266 §2]
305.270 Refund of excess tax paid; claim
procedure. (1) If the amount of the tax shown as
due on a report or return originally filed with the Department of Revenue with
respect to a tax imposed under ORS chapter 118, 308, 308A, 310, 314, 316, 317,
318 or 321, or collected pursuant to ORS 305.620, or as corrected by the
department, is less than the amount theretofore paid, or if a person files a
claim for refund of any tax paid to the department under such laws within the
period specified in subsection (2) of this section, any excess tax paid shall
be refunded by the department with interest as provided in this section and ORS
314.415.
(2)
The claim shall be made on a form prescribed by the department, except that an
amended report or return showing a refund due and filed within the time allowed
by this subsection for the filing of a claim for refund, shall constitute a
claim for refund. The claim shall be filed within the period specified in ORS
314.415 (2) for taxes imposed under ORS chapters 310, 314, 316, 317 and 318, or
collected pursuant to ORS 305.620 (except where any applicable ordinance
specifies another period), within the period specified in ORS 118.100 (2) for
taxes imposed under ORS chapter 118 and within two years of the payment of any
tax under ORS chapter 308, 308A or 321.
(3)
Upon receipt of a claim for refund, or original report or return claiming a
refund, the department shall either refund the amount requested or send to the
claimant a notice of any proposed adjustment to the refund claim, stating the
basis upon which the adjustment is made. A proposed adjustment may either
increase or decrease the amount of the refund claim or result in the finding of
a deficiency. If the proposed adjustment results in a determination by the
department that some amount is refundable, the department may send the claimant
the adjusted amount with the notice.
(4)(a)
The notice of proposed adjustment shall be accompanied by a statement
explaining the claimant’s right to make written objections to the refund
adjustment, the claimant’s right to request a conference and the procedure for
requesting a conference. The statement, and an accompanying form, shall also
explain that conference determinations are routinely transmitted via regular
mail and that a claimant desiring to have conference determinations transmitted
by certified mail may do so by indicating on the form the claimant’s preference
for certified mail and by returning the form with the claimant’s written
objections as described in paragraph (b) of this subsection.
(b)
The claimant may, within 30 days of the date of the notice of proposed
adjustment, advise the department in writing of objections to the refund
adjustment and may request a conference with the department, which shall be
held within one year of the date of the notice. The department shall notify the
claimant of a time and place for the conference, and appoint a conference
officer to meet with the claimant for an informal discussion of the claim.
After the conference, the conference officer shall send a determination of the
matter to the claimant. The determination letter shall be sent by regular mail,
or by certified mail if the claimant has indicated a preference for
transmission of the determination by certified mail. The department shall issue
either a notice of refund denial or payment of any amount found to be
refundable, together with any applicable interest provided by this section. If
the conference officer determines that a deficiency exists, the department
shall issue a notice of assessment.
(5)
If no conference is requested, and the adjustments have not resulted in the
finding of a deficiency, the following shall apply:
(a)
If written objections have been made by the claimant, the department shall
consider the objections, determine any issues raised and send the claimant a
notice of refund denial or payment of any amount found to be refundable,
together with any interest provided by this section.
(b)
If no written objections are made, the notice of any proposed adjustment shall
be final after the period for requesting a conference or filing written
objections has expired.
(6)
If no conference is requested, and the notice of proposed adjustment has
asserted a deficiency, the department shall consider any objections made by the
person denied the refund, make a determination of any issues raised, pay any
refunds found due, with applicable interest, or assess any deficiency and mail
a notice thereof within one year from the date of the notice of deficiency, unless
an extension of time is agreed upon as described in subsection (7) of this
section.
(7)
If, prior to the expiration of any period of time prescribed in subsection (6)
of this section for giving of notice of assessment, the department and the
person consent in writing to the deficiency being assessed after the expiration
of such prescribed period, such deficiency may be assessed at any time prior to
the expiration of the period agreed upon. The period so agreed upon may be
extended by subsequent agreements in writing made before the expiration of the
period agreed upon.
(8)
If the department refunds the amount requested as provided in subsection (3) of
this section, without examination or audit of the refund claim, the department
shall give notice of this to the claimant at the time of making the refund.
Thereafter, the department shall have one year in which to examine or audit the
refund claim, and send the notice of proposed adjustment provided for in
subsection (3) of this section, in addition to any time permitted in ORS
314.410 or 314.415.
(9)
The failure to hold a requested conference within the one-year period
prescribed in subsection (4) of this section shall not invalidate any
assessment of deficiency made within the one-year period pursuant to subsection
(8) of this section or within any extension of time made pursuant to subsection
(7) of this section, but shall invalidate any assessment of interest or
penalties attributable to the deficiency. After an assessment has been made,
the department and the person assessed may still hold a conference within 90
days from the date of assessment. If a conference is held, the 90-day period
under ORS 305.280 (2) shall run from the date of the conference officer’s
written determination of the issues.
(10)
The claimant may appeal any notice of proposed adjustment, refund denial or
notice of assessment in the manner provided in ORS 305.404 to 305.560. The
failure to file written objections or to request or have a conference shall not
affect the rights of appeal so provided. All notices and determinations shall
set forth rights of appeal. [1977 c.870 §4; 1979 c.691 §1; 1985 c.61 §1; 1985
c.266 §5; 1987 c.512 §3; 1989 c.626 §2; 1991 c.67 §75; 1995 c.650 §28; 1997
c.99 §§29,30; 1999 c.224 §2; 1999 c.314 §89; 2005 c.48 §2]
305.271 Refund transfer or assignment
prohibited; exception. Except as provided in ORS
305.690 to 305.753 (relating to charitable checkoffs),
no refund, claim of refund or right to a refund of taxes paid under the laws of
this state shall be transferable or assignable by the taxpayer unless
authorized by rule of the Department of Revenue. [1997 c.84 §5]
305.275 Persons who may appeal due to acts
or omissions. (1) Any person may appeal under this
subsection to the magistrate division of the Oregon Tax Court as provided in
ORS 305.280 and 305.560, if all of the following criteria are met:
(a)
The person must be aggrieved by and affected by an act, omission, order or
determination of:
(A)
The Department of Revenue in its administration of the revenue and tax laws of
this state;
(B)
A county board of property tax appeals other than an order of the board;
(C)
A county assessor or other county official, including but not limited to the
denial of a claim for exemption, the denial of special assessment under a
special assessment statute, or the denial of a claim for cancellation of
assessment; or
(D)
A tax collector.
(b)
The act, omission, order or determination must affect the property of the
person making the appeal or property for which the person making the appeal
holds an interest that obligates the person to pay taxes imposed on the
property. As used in this paragraph, an interest that obligates the person to
pay taxes includes a contract, lease or other intervening instrumentality.
(c)
There is no other statutory right of appeal for the grievance.
(2)
Except as otherwise provided by law, any person having a statutory right of
appeal under the revenue and tax laws of the state may appeal to the tax court
as provided in ORS 305.404 to 305.560.
(3)
If a taxpayer may appeal to the board of property tax appeals under ORS
309.100, then no appeal may be allowed under this section. The appeal under
this section is from an order of the board as a result of the appeal filed
under ORS 309.100 or from an order of the board that certain corrections,
additions to or changes in the roll be made.
(4)
A county assessor who is aggrieved by an order of the county board of property
tax appeals may appeal from the order as provided in this section, ORS 305.280
and 305.560. [1977 c.870 §5; 1985 c.85 §10; 1987 c.512 §4; 1991 c.459 §12; 1993
c.270 §7; 1995 c.79 §107; 1995 c.650 §7; 1997 c.541 §§52,52a,53,53a; 1999 c.314
§62; 1999 c.340 §2; 2011 c.111 §3]
305.280 Time for filing appeals; denial of
appeal. (1) Except as otherwise provided in
this section, an appeal under ORS 305.275 (1) or (2) shall be filed within 90
days after the act, omission, order or determination becomes actually known to
the person, but in no event later than one year after the act or omission has
occurred, or the order or determination has been made. An appeal under ORS
308.505 to 308.665 shall be filed within 90 days after the date the order is
issued under ORS 308.584 (3). An appeal from a supervisory order or other order
or determination of the Department of Revenue shall be filed within 90 days
after the date a copy of the order or determination or notice of the order or
determination has been served upon the appealing party by mail as provided in
ORS 306.805.
(2)
An appeal under ORS 323.416 or 323.623 or from any notice of assessment or
refund denial issued by the Department of Revenue with respect to a tax imposed
under ORS chapter 118, 308, 308A, 310, 314, 316, 317, 318, 321 or this chapter,
or collected pursuant to ORS 305.620, shall be filed within 90 days after the
date of the notice. An appeal from a proposed adjustment under ORS 305.270
shall be filed within 90 days after the date the notice of adjustment is final.
(3)
Notwithstanding subsection (2) of this section, an appeal from a notice of
assessment of taxes imposed under ORS chapter 314, 316, 317 or 318 may be filed
within two years after the date the amount of tax, as shown on the notice and
including appropriate penalties and interest, is paid.
(4)
Except as provided in subsection (2) of this section or as specifically
provided in ORS chapter 321, an appeal to the tax court under ORS chapter 321
or from an order of a county board of property tax appeals shall be filed
within 30 days after the date of the notice of the determination made by the
department or date of mailing of the order, date of publication of notice of
the order, date the order is personally delivered to the taxpayer or date of
mailing of the notice of the order to the taxpayer, whichever is applicable.
(5)
If the tax court denies an appeal made pursuant to this section on the grounds
that it does not meet the requirements of this section or ORS 305.275 or
305.560, the tax court shall issue a written decision rejecting the petition
and shall set forth in the decision the reasons the tax court considered the
appeal to be defective. [1977 c.870 §6; 1979 c.687 §1; 1985 c.61 §2; 1991 c.67 §76;
1993 c.270 §8; 1995 c.650 §8; 1997 c.99 §§32,33; 1997 c.541 §§55,56; 1999 c.249
§2; 1999 c.314 §90; 1999 c.340 §3; 2003 c.804 §63a; 2007 c.616 §11; 2009 c.23 §1]
305.283 [1993
c.270 §11; repealed by 1995 c.650 §114]
305.285 Correction of tax and assessment
rolls for subsequent tax years during pendency of appeal.
Whenever any property tax matter is appealed to the Department of Revenue,
Oregon Tax Court or Supreme Court, and during the pendency of the appeal, no
appeal is filed for a subsequent year or years, the taxpayer may, on or before
December 15 of the year in which a final determination is made by the last body
or tribunal to pass on the matter or within six months of such final
determination, whichever is later, request the department to order the officer
in charge of the rolls for the intervening years to correct all tax and
assessment rolls for those years with respect to the property affected by such
final determination. The department may require a hearing and the submission of
evidence necessary to determine the correction, if any, that should be made for
each intervening year in view of the holding in such final determination.
Notwithstanding any time limit in ORS 305.288 (1) to (6), 306.115 or 311.205,
the department shall order such correction as it deems necessary. [1977 c.870 §7;
1983 c.605 §2; 1993 c.18 §64]
305.286 Deferred billing credit in
property tax appeals; conditions; procedure; interest.
(1)(a) Whenever any property value or claim for exemption or cancellation of a
property tax assessment is appealed, if the dollar amount in dispute exceeds $1
million, the assessor of the county in which the property is located may order
the officer in charge of the assessment and tax roll to include a deferred
billing credit in the property tax statement of the property or in a separate
notice of deferred billing.
(b)
If the appeal relates to property assessed under ORS 308.505 to 308.665, the
assessor of each county to which a portion of the value is apportioned may
order inclusion of a deferred billing credit under paragraph (a) of this
subsection:
(A)
Even if the dollar amount in dispute with respect to the county is $1 million
or less; and
(B)
Independently of the assessor of any other county.
(2)
For purposes of this section, the dollar amount in dispute means the dollar
amount of real market value or specially assessed value in dispute:
(a)
For all tax years to which the appeal relates and any tax year during the
pendency of the appeal; and
(b)(A)
For all property of a taxpayer that is the subject of an appeal, regardless of
whether the property is the subject of separate appeals; or
(B)
For property that is assessed under ORS 308.505 to 308.665, for all current
appeals relating to the property or to a unit of which the property is a part.
(3)
For purposes of this section, the county assessor shall determine a deferred
billing credit as the dollar amount necessary to address the risk presented to
the county by an appeal with respect to the tax year that is the subject of the
property tax statement of the property, or of the separate notice of deferred
billing, in which the deferred billing credit is included.
(4)
The county assessor may order issuance of a separate notice of deferred billing
pursuant to this section at any time during a tax year to which an appeal
relates and any tax year during the pendency of the appeal.
(5)(a)
The portion of a deferred billing credit representing tax amounts that have
been paid shall be refunded without interest under ORS 311.806 as soon as
practicable.
(b)
Any amount paid after notice of a deferred billing credit in a property tax
statement or a separate notice of deferred billing is mailed that exceeds the
amount due after applying the deferred billing credit shall be returned to the
taxpayer without interest.
(6)
Inclusion of a deferred billing credit in a property tax statement or a
separate notice of deferred billing does not give rise to a cause of action
other than an action to ensure proper application of the provisions of this
section.
(7)(a)
If a deferred billing credit is included in a property tax statement or a
separate notice of deferred billing, tax amounts credited may not be considered
delinquent during the period beginning with the inclusion of the credit and
ending with the final resolution of the appeal to which the credit relates.
(b)
During the period described in paragraph (a) of this subsection, interest may
not be charged or collected on tax amounts described in paragraph (a) of this
subsection.
(8)
If a refund is ordered upon final resolution of the appeal to which a deferred
billing credit relates, interest shall be paid as provided in ORS 311.812 for
the period beginning on the later of the payment date or due date and ending on
the date of refund, on:
(a)
The amount refunded pursuant to subsection (5)(a) of this section that is
affirmed by order upon final resolution of the appeal; and
(b)
The amount by which the refund exceeds the deferred billing credit.
(9)
If the final resolution of the appeal results in additional taxes due, the
county assessor shall mail to the taxpayer as soon as practicable a notice
containing the amount of the taxes due and the information specified in
subsection (10) of this section.
(10)(a)
Additional taxes due upon final resolution of the appeal are payable without
interest and after application of the discount of three percent under ORS
311.505 if paid within 45 days following the date on which the county assessor
mails the notice required under subsection (9) of this section.
(b)(A)
If the additional taxes are not paid within the period specified in paragraph
(a) of this subsection, except as provided in subsection (7) of this section,
the additional taxes shall be considered for all purposes of collection and
enforcement of payment as having been delinquent on the date the taxes would
normally have become delinquent if the additional taxes had been timely extended
on the roll.
(B)
Notwithstanding subparagraph (A) of this paragraph, interest on the additional
taxes shall be computed beginning on the 46th day after the date on which the
county assessor mails the notice required under subsection (9) of this section.
(11)
The county assessor shall provide a quarterly report to the governing body of
the county showing the status of all current deferred billing credits and the
status of the appeals to which the credits relate.
(12)
As used in this section:
(a)
“Property tax statement” means the document described in ORS 311.250.
(b)
“Separate notice of deferred billing” means a notice to the taxpayer, other
than the property tax statement, that the provisions of this section apply and
stating the amount of the deferred billing credit and the amount of refund, if
any. [2011 c.112 §1]
Note:
305.286 was enacted into law by the Legislative Assembly but was not added to
or made a part of ORS chapter 305 or any series therein by legislative action.
See Preface to Oregon Revised Statutes for further explanation.
305.287 Determination of real market value
of property tax account or components. Whenever a
party appeals the real market value of one or more components of a property tax
account, any other party to the appeal may seek a determination from the body
or tribunal of the total real market value of the property tax account, the
real market value of any or all of the other components of the account, or
both. [2011 c.397 §2]
305.288 Valuation changes for residential
property substantial value error or for good and sufficient cause.
(1) The tax court shall order a change or correction applicable to a separate
assessment of property to the assessment and tax roll for the current tax year
or for either of the two tax years immediately preceding the current tax year,
or for any or all of those tax years, if all of the following conditions exist:
(a)
For the tax year to which the change or correction is applicable, the property
was or is used primarily as a dwelling (or is vacant) and was and is a
single-family dwelling, a multifamily dwelling of not more than four units, a
condominium unit, a manufactured structure or a floating home.
(b)
The change or correction requested is a change in value for the property for the
tax year and it is asserted in the request and determined by the tax court that
the difference between the real market value of the property for the tax year
and the real market value on the assessment and tax roll for the tax year is
equal to or greater than 20 percent.
(2)
If the tax court finds that the conditions needed to order a change or
correction under subsection (1) of this section exist, the court may order a
change or correction in the maximum assessed value of the property in addition
to the change or correction in the real market value of the property.
(3)
The tax court may order a change or correction applicable to a separate
assessment of property to the assessment or tax roll for the current tax year
and for either of the two tax years immediately preceding the current tax year
if, for the year to which the change or correction is applicable, the assessor
or taxpayer has no statutory right of appeal remaining and the tax court
determines that good and sufficient cause exists for the failure by the
assessor or taxpayer to pursue the statutory right of appeal.
(4)
Before ordering a change or correction to the assessment or tax roll under
subsection (3) of this section, the tax court may determine whether any of the
conditions exist in a particular case. If the tax court determines that one of
the conditions specified does exist, the tax court shall hold a hearing to
determine whether to order a change or correction to the roll.
(5)
For purposes of this section:
(a)
“Current tax year” has the meaning given the term under ORS 306.115.
(b)
“Good and sufficient cause”:
(A)
Means an extraordinary circumstance that is beyond the control of the taxpayer,
or the taxpayer’s agent or representative, and that causes the taxpayer, agent
or representative to fail to pursue the statutory right of appeal; and
(B)
Does not include inadvertence, oversight, lack of knowledge, hardship or
reliance on misleading information provided by any person except an authorized
tax official providing the relevant misleading information.
(6)
The remedy provided under this section is in addition to all other remedies
provided by law.
(7)
As used in subsections (1) to (6) of this section, “manufactured structure” has
the meaning given that term in ORS 446.561. [Formerly 306.116; 1999 c.767 §1;
subsection (7) of 2005 Edition enacted as 2003 c.655 §47a; 2009 c.33 §6]
305.290 Extension of time for making assessment
due to bankruptcy. If the Department of Revenue is
prohibited from making an assessment in a case under title 11 of the United
States Code, the period for making the assessment shall not expire until one
year after the prohibition is terminated. [1985 c.761 §12]
305.295 Cancellation of tax, penalty or
interest; rules. (1) Notwithstanding ORS 305.265
(14), the Department of Revenue may in its discretion, cancel any tax, penalty
or interest or any portion thereof, for which an assessment has become final,
if any of the following conditions exist:
(a)
The assessment is based upon an asserted tax deficiency calculated upon income
that the state is expressly prohibited from taxing under the Oregon
Constitution or the laws of the United States.
(b)
The assessment is based upon an asserted tax deficiency arising from an error
made by the department when reviewing the return during processing, and the
information necessary to correct the error was properly reported in the return
as filed as determined by the department.
(c)
The assessment is against an employer for withholding tax, with respect to any
full calendar quarter during which the employer had no payroll and had
permanently ceased doing business. An employer shall not be considered to have
ceased doing business if the employer has changed its name and the business
activity continues under the same beneficial ownership.
(d)
Pursuant to rules adopted by the department, the department determines that:
(A)
Reasonable doubt exists as to the taxpayer’s liability for the assessment;
(B)
The taxpayer has presented documentation that the department considers sufficient
to support canceling the tax, penalty or interest, or any portion thereof; and
(C)
The taxpayer has complied with all applicable reporting and filing requirements
for all tax years for which the department maintains records.
(2)
When taxes are canceled, in whole or in part, under subsection (1) of this
section, the department shall make an order canceling the tax, penalties and
interest. The order shall be filed in the records of the department. Upon
making the order, the department also shall cause to be canceled or released
any lien of record in the counties which may have been filed and entered
therein.
(3)
Before the department may cancel an assessment under subsection (1) of this
section, the taxpayer to whom the assessment is issued shall provide any
information the department deems necessary to verify the existence of one of
the conditions under which the assessment may be canceled.
(4)
Notwithstanding ORS 314.415, the department may refund any payments made with
respect to an assessment described in subsection (1) of this section. Interest
shall be paid at the rate established under ORS 305.220, for each month or
fraction of a month during a period beginning on the date the taxpayer requests
the refund.
(5)
This section applies to any unpaid assessment described in subsection (1) of
this section whether issued before or after September 27, 1987, and to any
assessment for which payment is made on or after September 27, 1987.
(6)
A taxpayer may appeal denial of a request for cancellation of assessment or
refund to the Director of the Department of Revenue. The decision of the
director is final and may not be appealed. [1987 c.758 §16; 1997 c.100 §1]
305.305 Procedure where deficiency based
on federal or other state audit report; effect of appeal; interest suspension.
(1) As used in this section, “appeal” means an appeal to the Internal Revenue
Service or any federal court or an appeal to another state’s taxing authority
or any state court having jurisdiction over the other state’s tax matters that
are the subject of the appeal.
(2)
If a deficiency is based wholly or in part upon an Internal Revenue Service
revenue agent’s report made upon any audit or adjustment of the person’s
federal income tax return or upon an audit report of another state’s taxing
authority, the following procedures shall apply:
(a)
If the person has filed a timely appeal from the deficiency asserted by the
service or other state taxing authority, the person may file proof of the
appeal with the Department of Revenue. If proof of the appeal is received
before the tax is assessed, the deficiency shall be assessed without penalty
for failure to pay the tax at the time the tax became due.
(b)
If the department assesses the deficiency before receipt of proof of the filing
of a timely appeal, the person may file the proof with the department. If the
proof is filed after the tax has been assessed with a penalty for failure to
pay the tax at the time the tax became due, the penalty shall not be waived.
(3)
Notwithstanding any other provision of law, filing of proof of a timely appeal
under subsection (2) of this section shall extend the time for filing a
complaint or petition with the tax court in accordance with this subsection.
The person shall notify the department in writing within 30 days after the
appeal is finally resolved. The department shall review the issues raised by
the appeal and shall make a determination of the effect upon the person’s state
income or excise tax liabilities. The department shall then issue a refund, notice
of denial of refund or notice of assessment, as appropriate, to the person. If
the person disagrees with the department’s action, the person may file a
complaint or petition with the tax court within 90 days after the date of the
department’s action as provided under ORS 305.404 to 305.560. Notwithstanding
ORS 314.835 or any other law relating to confidentiality, the department may
notify the magistrate division of the tax court if proof of a timely appeal is
filed with the department or if the department determines that an appeal has
been finally resolved.
(4)
Except as provided in ORS 314.440 (2), when the department receives proof of a
timely appeal, the department shall suspend action to collect the deficiency
until the issues are resolved.
(5)
If interest imposed by the federal government on a federal deficiency or
partnership settlement agreement has been suspended under section 6601(c) of
the Internal Revenue Code, interest imposed on a corresponding deficiency
determined under ORS 305.265 and this section shall also be suspended. The
suspension of interest imposed under ORS 305.265 shall be effective as of the
date the federal interest is suspended and for the duration for which the
federal interest is suspended.
(6)
Except as provided in ORS 314.415 (6), the provisions of this section shall
constitute the exclusive remedy of a person whose notice of deficiency is based
wholly or in part upon a federal revenue agent’s report or the audit report of
another state’s taxing authority. [1989 c.414 §6; 1995 c.650 §29; 1997 c.325 §7;
1999 c.74 §2; 1999 c.90 §28a; 2001 c.660 §17; 2005 c.48 §3]
305.330 Tax liability of reorganized
business entity. (1) As used in this section, “reorganized
business entity”:
(a)
Means a business entity that, while operating substantially the same business
as another entity that incurred a liability for taxes, interest or penalties
administered by the Department of Revenue, has been converted to a different
form of business entity from that of the entity that incurred the liability or
has changed ownership from that of the entity that incurred the liability; and
(b)
Does not include a business entity that is converted to a different form or
that has changed ownership solely because of a transfer of assets or because of
a transfer of an interest of an investor who has no right to manage the
business entity, including, but not limited to, the interest of:
(A)
A person that is solely a minority shareholder in a corporation;
(B)
A member of a manager-managed limited liability company; or
(C)
A limited partner of a limited partnership that does not participate in the
control of the business of the limited partnership.
(2)
The department may transfer the liability for taxes, interest or penalties that
are administered and collected by the department from the business entity that
incurred the liability to a reorganized business entity and may assess those
amounts against the reorganized business entity.
(3)
Factors the department may consider when determining if a business entity is a
reorganized business entity include, but are not limited to, whether the
business entity:
(a)
Operates from the same physical location as did the taxpayer owing the debt.
(b)
Provides the same services or manufactures the same products as did the
taxpayer owing the debt.
(c)
Has one or more of the same:
(A)
Corporate directors or officers as did the taxpayer owing the debt.
(B)
Owners or holders of a direct or indirect interest in the business entity as
did the taxpayer owing the debt.
(4)
Following the determination to transfer a liability to a reorganized business
entity under subsections (2) and (3) of this section and notwithstanding ORS
314.835, 314.840 or 314.991, the department shall send a notice of liability to
the reorganized business entity stating the amount owed by the reorganized
business entity.
(5)
Within 30 days from the date of notice of liability given under subsection (4)
of this section, the reorganized business entity shall:
(a)
Pay the liability stated in the notice and any other penalty or interest
related to that liability; or
(b)
Advise the department in writing of objections to the notice of liability and,
if desired, request a conference. A conference requested under this paragraph
shall be governed by those provisions of ORS 305.265 that govern a conference
requested from a notice of deficiency under ORS 305.265. Notwithstanding ORS
314.835, 314.840 or 314.991, the department may disclose any information to the
reorganized business entity that the department would be authorized to disclose
to the business entity that incurred the liability.
(6)
After a determination of the issues raised in written objections made under
subsection (5) of this section or after a conference, if a conference was
requested, the department shall mail the reorganized business entity a letter
affirming, canceling or adjusting the notice of liability. If the entity
remains liable for an outstanding amount under this section, the letter shall
be considered a notice of assessment and, within 90 days from the date the
letter is mailed, the entity shall:
(a)
Pay the amount set forth in the notice of assessment; or
(b)
Appeal to the Oregon Tax Court in the manner provided for an appeal from a
notice of assessment.
(7)
If neither payment nor written objections to the notice of liability sent under
subsection (4) of this section is received by the department within 30 days
after the date of the notice of liability, the notice of liability becomes
final. The reorganized business entity may appeal the notice to the tax court
within 90 days after the date the notice became final, in the manner provided
for an appeal from a notice of assessment. [2007 c.463 §2]
305.350 [1977
c.790 §1; repealed by 1985 c.105 §1]
305.355 [1977
c.790 §2; repealed by 1985 c.105 §1]
305.360 [1977
c.790 §3; repealed by 1985 c.105 §1]
305.365 [1977
c.790 §4; repealed by 1985 c.105 §1]
305.375 Disposition of penalties; payment
of refunds. The amount of any penalty collected
under this chapter and ORS chapter 314 or 316 shall be paid over to the State
Treasurer in the manner provided for income taxes in ORS 316.502. Any penalty
amount required to be refunded may be paid out of the working balance retained
under ORS 316.502 (2) or may be paid in the manner provided in ORS 305.760. [1987
c.843 §5]
(License Lists)
305.380 Definitions for ORS 305.385.
As used in ORS 305.385:
(1)
“Agency” means any department, board, commission, division or authority of the
State of Oregon, or any political subdivision of this state which imposes a
local tax administered by the Department of Revenue under ORS 305.620.
(2)
“License” means any written authority required by law or ordinance as a
prerequisite to the conduct of a business, trade or profession.
(3)
“Provider” means any person who contracts to supply goods, services or real
estate space to an agency.
(4)
“Tax” means a state tax imposed by ORS 320.005 to 320.150 and 403.200 to
403.250 and ORS chapters 118, 314, 316, 317, 318, 321 and 323 and the elderly
rental assistance program under ORS 310.630 to 310.706 and local taxes
administered by the Department of Revenue under ORS 305.620. [1987 c.843 §6;
1997 c.99 §35; 1997 c.170 §16; 2005 c.94 §21]
305.385 Agencies to supply licensee and
contractor lists; contents; effect of department determination on taxpayer
status of licensee or contractor; rules. (1) Upon
request of the Department of Revenue, an agency issuing or renewing a license
to conduct a business, trade or profession shall annually, on or before March
1, supply the department with a list of specified licenses issued or renewed by
the agency during the preceding calendar year.
(2)
Upon request of the department, an agency shall annually, on or before March 1,
supply the department with a list of specified persons contracting with the
agency to provide goods, services or real estate space to the agency during the
preceding calendar year.
(3)
The lists required by subsections (1) and (2) of this section shall contain the
name, address, Social Security or federal employer identification number of
each licensee or provider or such other information as the department may by
rule require.
(4)(a)
If the department determines that any licensee or provider has neglected or
refused to file any return or to pay any tax and that such person has not filed
in good faith a petition before the department contesting the tax, and the
department has been unable to obtain payment of the tax through other methods
of collection, the Director of the Department of Revenue may, notwithstanding
ORS 118.525, 314.835 or 314.840 or any similar provision of law, notify the
agency and the person in writing.
(b)
Upon receipt of such notice, the agency shall refuse to reissue, renew or
extend any license, contract or agreement until the agency receives a certificate
issued by the department that the person is in good standing with respect to
any returns due and taxes payable to the department as of the date of the
certificate.
(c)
Upon the written request of the director and after a hearing and notice to the
licensee as required under any applicable provision of law, the agency shall
suspend the person’s license if the agency finds that the returns and taxes
have not been filed or paid and that the licensee has not filed in good faith a
petition before the department contesting the tax and the department has been
unable to obtain payment of the tax through other methods of collection. For
the purpose of the agency’s findings, the written representation to that effect
by the department to the agency shall constitute prima facie evidence of the
person’s failure to file returns or pay the tax. The department shall have the
right to intervene in any license suspension proceeding.
(d)
Any license suspended under this subsection shall not be reissued or renewed until
the agency receives a certificate issued by the department that the licensee is
in good standing with respect to any returns due and taxes payable to the
department as of the date of the certificate.
(5)
The department may enter into an installment payment agreement with a licensee
or provider with respect to any unpaid tax, penalty and interest. The agreement
shall provide for interest on the outstanding amount at the rate prescribed by
ORS 305.220. The department may issue a provisional certificate of good
standing pursuant to subsection (4)(b) and (d) of this section which shall
remain in effect so long as the licensee or provider fully complies with the
terms of the installment agreement. Failure by the licensee or provider to
fully comply with the terms of the installment agreement shall render the
agreement and the provisional certificate of good standing null and void,
unless the department determines that the failure was due to reasonable cause.
If the department determines that the failure was not due to reasonable cause,
the total amount of the tax, penalty and interest shall be immediately due and
payable, and the department shall notify any affected agency that the licensee
or provider is not in good standing. The agency shall then take appropriate
action under subsection (4)(b) and (d) of this section.
(6)
No contract or other agreement for the purpose of providing goods, services or
real estate space to any agency shall be entered into, renewed or extended with
any person, unless the person certifies in writing, under penalty of perjury,
that the person is, to the best of the person’s knowledge, not in violation of
any tax laws described in ORS 305.380 (4).
(7)
The certification under subsection (6) of this section shall be required for
each contract and renewal or extension of a contract or may be provided on an
annual basis. A certification shall not be required for a contract if the
consideration for the goods, services or real estate space provided under the
contract is no more than $1,000.
(8)(a)
The requirements of the certification under subsection (6) of this section
shall be subject to the rules adopted by the department in accordance with this
section.
(b)
The department may by rule exempt certain contracts from the requirements of
subsection (6) of this section. [1987 c.843 §7; 1989 c.656 §1; 1997 c.99 §36]
(Temporary provisions relating to pilot
project requiring tax compliance as condition of occupational and professional
licensing)
Note:
Sections 2 and 4, chapter 576, Oregon Laws 2009, provide:
Sec. 2. (1)
The Department of Revenue may, in conjunction with state agencies, boards or
commissions that issue occupational licenses or licenses for the privilege of
engaging in an occupation or profession within this state, develop and
implement a pilot project that requires, as a condition of issuance or renewal
of a license, licensees to demonstrate compliance with the following, as
applicable:
(a)
The personal income tax laws of this state, including the withholding laws in
ORS 316.162 to 316.221.
(b)
The corporate excise or income tax laws of this state.
(c)
The provisions of ORS 323.005 to 323.482 or 323.500 to 323.645.
(2)
Any state agency, board or commission that participates in the pilot project
authorized under subsection (1) of this section may suspend, revoke or refuse
to issue or renew a license if the department determines that the licensee has
failed to demonstrate or maintain tax compliance as provided in this section.
(3)
Notwithstanding ORS 314.835 and 314.840, the department may disclose to a state
agency, board or commission that requires tax compliance as a condition of
issuance or renewal of a license under subsection (1) of this section whether
an individual or corporation is in compliance.
(4)
In determining compliance for purposes of this section, the department may
consider whether the individual or corporation:
(a)
Has not filed required returns or reports with respect to taxes imposed by ORS
chapter 316 or 317, whichever is applicable, for any of the three tax years
immediately preceding a year for which a tax return or report was required to
be filed;
(b)
Has not filed required reports with respect to taxes imposed under ORS 323.005
to 323.482 or 323.500 to 323.645 for any of the three calendar years immediately
preceding a year in which a report was required to be filed;
(c)
After all appeal rights, if any, have expired, has failed to:
(A)
Pay any tax within 30 days after the date of the assessment and is still
delinquent on any payments due;
(B)
Enter into an approved payment plan within 60 days after the date of the
assessment of the tax; or
(C)
Follow the terms of an approved payment plan and is still delinquent on any
payments due; or
(d)
Has been convicted of a criminal offense related to the personal income tax
laws of this state, the corporate excise and income tax laws of this state or
the provisions of ORS 323.005 to 323.482 or 323.500 to 323.645, whichever are
applicable.
(5)
The department may enter into agreements with any state agency, board or
commission that participates in the pilot project under subsection (1) of this
section in order to assist in the administration of the tax compliance
requirement.
(6)
Participation in the pilot project authorized under subsection (1) of this section
is limited to three state agencies, boards or commissions. [2009 c.576 §2]
Sec. 4.
Section 2 of this 2009 Act is repealed on January 2, 2016. [2009 c.576 §4]
SUBPOENAS RELATING TO INDUSTRIAL
PROPERTY
305.390 Subpoenas of records containing
information on industrial plant for use to determine value of different
industrial plant. A subpoena for the production of
records may be issued under ORS 305.190 or 305.420 to the owner of an
industrial plant, as defined in ORS 308.408, for purposes of a proceeding
involving the determination of the value of a different industrial plant for ad
valorem property taxation, only under the following conditions:
(1)
The information to be produced is to be used to determine the value of a
specific industrial plant;
(2)
The information to be produced is not available to the person or agency issuing
the subpoena from any public source; and
(3)
The information to be produced is likely to improve the accuracy or reliability
of the determination of value. [1993 c.353 §4]
305.392 Process for limiting scope of
third-party subpoena. (1) This section applies to
subpoenas issued under ORS 305.190 or 305.420 (4) to owners of industrial
plants, as defined in ORS 308.408, for the production of books, papers,
correspondence or any other documents to be used in a judicial proceeding that
involves the determination of the value of a different industrial plant, for
purposes of ad valorem property taxation. The purpose of this section is to
provide a process by which the parties may limit the scope of a subpoena for
the production of documents, if possible.
(2)
Before any person or the Department of Revenue may issue a subpoena to which
this section applies, the person or department shall give written notice to the
person or agency to be subpoenaed that a subpoena will be issued no sooner than
60 days after the date the notice is received. The notice shall state the
general nature of the documents desired to be produced and the purpose for
which they will be used. The notice shall state that the person or agency to be
subpoenaed may request an informal meeting with the person or department giving
notice to identify the nature and form of documents the person or agency has
and to verify the need for the documents desired to be produced.
(3)
If the person or agency receiving a notice given under subsection (2) of this
section requests an informal meeting as provided in the notice, the person or
department giving notice shall meet with the person or agency before issuing
the subpoena. If the parties can agree that only specific documents need to be
produced, the subpoena may then be issued and shall be limited to those
documents.
(4)
If the person or agency receiving a notice under subsection (2) of this section
does not request a meeting, or if the parties cannot agree on the specific
documents to be produced, the person or department giving notice may issue the
subpoena on or after the date specified in the notice.
(5)
A person or agency given notice under subsection (2) of this section may not
seek relief from compliance with a subpoena or for protection of documents to
be produced until a subpoena has been issued. [1993 c.353 §7; 1995 c.650 §84;
2005 c.345 §5]
305.394 When industrial plant owner may
choose not to produce information sought by subpoena.
(1) If the owner of an industrial plant that is located outside this state is
given notice under ORS 305.392, or is served with a subpoena for purposes of
appraisal of an industrial plant located within this state, the owner may
choose not to produce any documents related to the income or expenses of the
industrial plant that are identified in the notice or the subpoena, if that
information is described in ORS 308.411 (8) as exempt from disclosure for an
owner electing under ORS 308.411 (2).
(2)
As used in this section, “industrial plant” has the meaning given in ORS
308.408. [1993 c.353 §9]