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
ORS sections in this chapter were
amended or repealed by the Legislative Assembly during its 2012 regular
session. See the table of ORS sections amended or repealed during the 2012
regular session: 2012 A&R Tables
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]
305.396 Protection of confidentiality of
industrial property information obtained by subpoena.
(1) When the Department of Revenue or any person has obtained information
concerning industrial property by subpoena issued under ORS 305.190 or 305.420,
and the provider of the information has designated the information as
confidential, the confidentiality of the information shall be protected as
provided in this section.
(2)
If the department or any person in possession of information described in
subsection (1) of this section intends to use that information in a judicial
proceeding, the court shall close the proceedings to anyone other than
representatives of the parties to the proceeding at any time the confidential
information is presented as evidence. The court shall limit the disclosure of
the information to representatives of the parties to the proceeding as provided
in ORS 305.398. The court also shall seal those parts of the record of the
proceeding that contain confidential information. This subsection shall apply
to proceedings on appeal from the court proceeding. [1993 c.353 §10; 1995 c.650
§85]
305.398 Disclosure and use of industrial
property confidential information obtained by third-party subpoena.
(1) When the Department of Revenue or any person has obtained information
concerning industrial property by subpoena issued under ORS 305.190 or 305.420,
for use in a judicial proceeding concerning the value of a different industrial
property, and the provider of the information has designated the information as
confidential, access to that information shall be limited by an order of the
judicial body conducting the proceeding. The order shall specify the allowable
uses of the confidential information and establish the conditions under which
disclosure may be made to those individuals described in this section.
(2)
The confidential information may be disclosed to the following individuals
only:
(a)
Counsel for the Department of Revenue.
(b)
Counsel of record for any party participating in the proceeding in which the
information is to be used.
(c)
Employees of the Department of Revenue who are assigned to perform an appraisal
using the confidential information.
(d)
Those experts or consultants for any party participating in the proceeding who
are not, have not previously been and are not anticipated to become directors,
officers, employees or business associates of the party, and who have been
retained to provide technical advice or testimony in the proceeding.
(3)
Before disclosure of information described in this section, each individual to
whom disclosure of confidential information will be made shall execute a
written acknowledgment of the confidential nature of the information and
consent to be bound by the terms of the order of confidentiality, subject to
judicial penalties for contempt. Such an acknowledgment shall be executed by
any person to whom access to confidential information is actually given.
(4)
A written record shall be maintained by the Department of Revenue and any party
to whom disclosure is made of the specific material disclosed and the identity
of those individuals to whom access has been given, including the name and
title of the individuals and the date each was approved to be given access.
(5)
The documents, and any copies of them, shall be marked “confidential” or in
some way identified to be subject to limited access. Any copies of the original
documents shall be reproduced in a way that makes them readily identifiable.
(6)
At the conclusion of the proceeding, all documents subject to the provisions of
this section shall be returned to the person or agency that originally produced
them. Any copies, abstracts or summaries of the information shall be destroyed,
and their destruction shall be verified by the party or agency that made the
copies. [1993 c.353 §11; 1995 c.650 §86]
305.400 Payment of costs of subpoena
compliance; determination of costs. (1) Any
agency or person issuing a subpoena under ORS 305.190 or 305.420 for
information concerning industrial property, shall pay the reasonable costs of
compliance with the subpoena incurred by the party responding to the subpoena.
(2)
Reasonable costs include the cost of locating records, preparing copies of
records, costs of postage, freight or delivery, the cost of materials used to
organize or contain records and the cost of management review of material to be
produced to determine compliance with the subpoena.
(3)
Reasonable costs do not include the cost of duplicating records for the use of
the person producing the records or legal fees or management costs incurred in
resisting compliance with a subpoena. [1993 c.353 §12]
APPEALS OF INDUSTRIAL PROPERTY OR PLANTS
305.403 Appeal of value of principal or
secondary industrial property in tax court. (1) An
appeal by a taxpayer dissatisfied with the assessed or specially assessed value
of land or improvements of a principal or secondary industrial property must be
brought in the tax court.
(2)
An appeal under this section is taken by filing a complaint with the tax court
in the manner prescribed under ORS 305.560 during the period following the date
the tax statements are mailed for the current tax year and ending December 31.
(3)(a)
The complaint shall be entitled in the name of the person filing the complaint
as plaintiff, and the Department of Revenue and the county assessor as
defendants.
(b)
In answering and defending against the allegations of the complaint:
(A)
The department shall respond only to those allegations that relate to the
appraisal or assessment performed by the department; and
(B)
The county assessor shall respond only to those allegations that relate to the
appraisal or assessment performed by the county assessor.
(c)
The department and the county assessor shall both remain parties to a
proceeding described in this subsection unless either party is dismissed by
order of the court.
(4)
Service of the complaint upon the department and the county assessor shall be
accomplished by the clerk of the tax court mailing a copy of the complaint to
the Director of the Department of Revenue and to the county assessor.
(5)
As used in this section, “principal industrial property” and “secondary
industrial property” have the meanings given the terms under ORS 306.126 and
include those properties appraised by the department for ad valorem property
tax purposes. [1995 c.650 §82; 1997 c.541 §58; 2005 c.225 §2; 2005 c.345 §15;
2011 c.111 §1]
OREGON TAX COURT
(General)
305.404 Oregon Tax Court; definitions;
usage. Unless the context requires otherwise,
as used in ORS 305.404 to 305.560 and other revenue and tax laws, “tax court”
or “Oregon Tax Court” means the Oregon Tax Court created under ORS 305.405. In
an appropriate case, “tax court” may include either the regular division or the
magistrate division of the Oregon Tax Court, or both, or the judge or judges of
the tax court or its magistrates or a combination. In a few instances, “tax
court” may include the tax court clerk or other employees of the regular or
magistrate division of the tax court. [1995 c.650 §104]
305.405 Oregon Tax Court; creation;
jurisdiction. As part of the judicial branch of state
government, there is created a court of justice to be known as the Oregon Tax
Court. The tax court, in cases within its jurisdiction pursuant to ORS 305.410:
(1)
Is a court of record and of general jurisdiction, not limited, special or
inferior jurisdiction.
(2)
Has the same powers as a circuit court.
(3)
Has and may exercise all ordinary and extraordinary legal, equitable and
provisional remedies available in the circuit courts, as well as such
additional remedies as may be assigned to it. [1961 c.533 §1; 1965 c.6 §1]
305.410 Authority of court in tax cases
within its jurisdiction; concurrent jurisdiction; exclusive jurisdiction in
certain cases. (1) Subject only to the provisions of
ORS 305.445 relating to judicial review by the Supreme Court and to subsection
(2) of this section, the tax court shall be the sole, exclusive and final
judicial authority for the hearing and determination of all questions of law
and fact arising under the tax laws of this state. For the purposes of this
section, and except to the extent that they preclude the imposition of other
taxes, the following are not tax laws of this state:
(a)
ORS chapter 577 relating to Oregon Beef Council contributions.
(b)
ORS 576.051 to 576.455 relating to commodity commission assessments.
(c)
ORS chapter 477 relating to fire protection assessments.
(d)
ORS chapters 731, 732, 733, 734, 737, 742, 743, 743A, 744, 746, 748 and 750
relating to insurance company fees and taxes.
(e)
ORS chapter 473 relating to liquor taxes.
(f)
ORS chapter 583 relating to milk marketing, production or distribution fees.
(g)
ORS chapter 825 relating to motor carrier taxes.
(h)
ORS chapter 319 relating to motor vehicle and aircraft fuel taxes.
(i)
ORS title 59 relating to motor vehicle and motor vehicle operators’ license
fees and ORS title 39 relating to boat licenses.
(j)
ORS chapter 578 relating to Oregon Wheat Commission assessments.
(k)
ORS chapter 462 relating to racing taxes.
(L)
ORS chapter 657 relating to unemployment insurance taxes.
(m)
ORS chapter 656 relating to workers’ compensation contributions, assessments or
fees.
(n)
ORS 311.420, 311.425, 311.455, 311.650, 311.655 and ORS chapter 312 relating to
foreclosure of real and personal property tax liens.
(o)
Sections 15 to 22, 24 and 29, chapter 736, Oregon Laws 2003, relating to long
term care facility assessments.
(2)
The tax court and the circuit courts shall have concurrent jurisdiction to try
actions or suits to determine:
(a)
The priority of property tax liens in relation to other liens.
(b)
The validity of any deed, conveyance, transfer or assignment of real or
personal property under ORS 95.060 and 95.070 (1983 Replacement Part) or 95.200
to 95.310 where the Department of Revenue has or claims a lien or other
interest in the property.
(3)
Subject only to the provisions of ORS 305.445 relating to judicial review by
the Supreme Court, the tax court shall be the sole, exclusive and final
judicial authority for the hearing and determination of all questions of law
and fact concerning the authorized uses of the proceeds of bonded indebtedness
described in section 11 (11)(d), Article XI of the Oregon Constitution.
(4)
Except as permitted under section 2, amended Article VII, Oregon Constitution,
this section and ORS 305.445, no person shall contest, in any action, suit or
proceeding in the circuit court or any other court, any matter within the
jurisdiction of the tax court. [1961 c.533 §12; 1965 c.6 §2; 1967 c.359 §688;
1969 c.48 §1; 1971 c.567 §14; 1975 c.365 §1; 1977 c.407 §1; 1985 c.149 §5; 1985
c.664 §18; 2003 c.195 §18; 2003 c.604 §100; 2007 c.780 §29]
305.412 Jurisdiction to determine value.
When the determination of real market value or the correct valuation of any
property subject to special assessment is an issue before the tax court, the
court has jurisdiction to determine the real market value or correct valuation
on the basis of the evidence before the court, without regard to the values
pleaded by the parties. [2005 c.224 §2]
Note:
305.412 was added to and made a part of 305.404 to 305.560 by legislative
action but was not added to any smaller series therein. See Preface to Oregon
Revised Statutes for further explanation.
305.415 Service of papers and process.
Except as otherwise provided in ORS 305.404 to 305.560, the mailing by
registered or certified mail of any pleading, decision, order, notice or
process, other than a subpoena, in respect to proceedings before the court
shall be sufficient service thereof. [1961 c.533 §25]
305.418 When mailed complaint considered
to be filed. Any complaint required by law to be
filed with the Oregon Tax Court that is:
(1)
Transmitted through the United States mail, shall be deemed filed (a) on the
date shown by the post-office cancellation mark stamped upon the envelope
containing it, or (b) on the date it was mailed if there is also mailed to the
tax court a declaration of mailing, signed by the appealing party or the
attorney of the appealing party and verified by oath or affirmation, subject to
penalties for false swearing, in substantially the following form:
______________________________________________________________________________
DECLARATION OF
MAILING
I
hereby declare under the penalties for false swearing contained in ORS chapter
162 that on the ______ day of______, 2__, I deposited a complaint entitled______,
and dated______, in a sealed envelope, with postage prepaid, in the United
States Post Office at____________, Oregon (or other state of mailing),
addressed to the Oregon Tax Court, 1163 State Street, Salem, Oregon 97301-2563
(or current address).
(Signature of
appealing party or the attorney of the appealing party)
______________________________________________________________________________
(2)
Lost in transmission through the United States mail, shall be deemed filed on
the date it was mailed if the appealing party:
(a)
Can establish by competent evidence satisfactory to the tax court that the
complaint was deposited on or before the date due for filing in the United
States mail and addressed correctly to the court; and
(b)
Files with the court a duplicate of the lost complaint within 30 days after
written notification is given by the court of its failure to receive such
complaint, but in no event later than 90 days after the date the complaint was
otherwise required to be filed under ORS 305.560. [1975 c.381 §2; 1979 c.689 §3;
1993 c.612 §3; 2005 c.225 §3]
305.419 Tax, penalty and interest payable
before appeal; how determined; waiver; refund.
(1) Except as provided in subsection (3) of this section, in any appeal from an
order, act, omission or determination of the Department of Revenue involving a
deficiency of taxes imposed upon or measured by net income, the tax assessed,
and all penalties and interest due, shall be paid to the department on or
before the filing of a complaint with the regular division of the Oregon Tax
Court under ORS 305.560 or before a complaint specially designated for hearing
in the regular division under ORS 305.501 is heard. The complaint shall be
filed as a claim for refund.
(2)
Penalty and interest due under subsection (1) of this section are the amounts
stated in the order, notice of assessment, notice of refund denial or proposed
adjustment under ORS 305.270 by the department from which the appeal is taken.
(3)
Where payment of the tax, penalties and interest would be an undue hardship,
plaintiff may file an affidavit alleging undue hardship with the complaint. If
the tax court finds undue hardship, the tax court judge may stay all or any
part of the payment of tax, penalty and interest required under subsection (1)
of this section. If the tax court judge finds no undue hardship, the tax court
judge may grant the plaintiff up to 30 days from the date of determination to
pay the taxes, penalties and interest. Failure by the plaintiff to pay the
taxes, penalties and interest or to establish undue hardship will be cause for
dismissing the complaint.
(4)
If, in any appeal to the Oregon Tax Court for which payment of tax, penalty and
interest assessed is required before filing of a complaint, the tax court
orders that all or any part of the amount paid be refunded by the department,
the amount so ordered to be refunded shall bear interest at the rate
established for refunds in ORS 305.220. Interest shall be computed from the
date of payment to the department. [1982 s.s.1 c.29 §§2, 3; 1985 c.407 §1; 1995
c.650 §17; 1997 c.872 §19]
305.420 Issuance of subpoenas; administration
of oaths; depositions. (1) The judge, a magistrate or
the clerk of the tax court, on the request of any party to the proceeding, or
the attorney of the party, shall issue subpoenas requiring the attendance of
and the giving of testimony by witnesses, and subpoenas duces tecum requiring
the production of any returns, books, papers, documents, correspondence and
other evidence pertaining to the matter under inquiry at any designated place
of hearing in the manner prescribed by law in civil actions in courts of this
state.
(2)
Any employee of the court designated in writing for the purpose by the judge
may administer oaths.
(3)
Any party to the proceeding may cause the depositions of witnesses residing
within or without the state to be taken in the manner prescribed by law for
like depositions in civil actions in courts of this state. To that end, the
party may compel the attendance of witnesses and the production of returns,
books, papers, documents, correspondence and other evidence pertaining to the
matter under inquiry.
(4)
Subject to ORS 305.390 and 305.392, subpoenas in a proceeding involving the
determination of the value of an industrial plant, as defined in ORS 308.408,
for purposes of ad valorem property taxation, may be issued as provided in
subsection (1) of this section. However, upon petition of the person
subpoenaed, the court shall make an order determining if the evidence sought by
the subpoena is relevant to the pending proceeding and, if requested by the
person subpoenaed, an order as required in the interests of justice to protect
the confidentiality of the information subpoenaed. [1961 c.533 §17; 1963 c.304 §1;
1981 c.139 §5; 1993 c.353 §6; 1995 c.650 §18; 2003 c.46 §5; 2005 c.345 §6]
305.422 Waiver of penalty for failure to
timely file property return. If a penalty
under ORS 308.295 or 308.296 for the failure to timely file a real, combined or
personal property return as required by ORS 308.290 is the subject of an appeal
to the tax court, the court may waive the liability for all or a portion of the
penalty upon a proper showing of good and sufficient cause. [2001 c.303 §5]
305.425 Proceedings to be without jury and
de novo; issues reviewable; rules of procedure.
(1) All proceedings before the judge of the tax court shall be original,
independent proceedings and shall be tried without a jury and de novo.
(2)
If a statute provides for an appeal to or a review by the court of an order,
act, omission or determination of the Department of Revenue, a board of
property tax appeals or of any other administrative agency, the proceeding
shall be an original proceeding in the nature of a suit in equity to set aside
such order or determination or correct the act or omission. The time within
which the statute provides that the proceeding shall be brought is a period of
limitations and is not jurisdictional.
(3)
All hearings and proceedings before the tax court judge shall be in accordance
with the rules of practice and procedure promulgated by the court, which shall
conform, as far as practical to the rules of equity practice and procedure in
this state. [1961 c.533 §16; 1965 c.6 §3; 1967 c.78 §9; 1973 c.484 §7; 1977
c.870 §29; 1981 s.s. c.1 §23; 1995 c.650 §19; 1997 c.541 §60]
305.427 Burden of proof in tax court
proceedings. In all proceedings before the judge or
a magistrate of the tax court and upon appeal therefrom, a preponderance of the
evidence shall suffice to sustain the burden of proof. The burden of proof
shall fall upon the party seeking affirmative relief and the burden of going
forward with the evidence shall shift as in other civil litigation. [1965 c.6 §5;
1995 c.650 §20]
305.430 Hearings to be open to public;
report of proceedings; exception; confidential information.
(1) Except as provided in subsections (2) and (3) of this section, hearings
before the judge or a magistrate of the tax court shall be open to the public.
All proceedings in the regular division of the tax court shall be reported
unless waived by the parties with the consent of the court. The expense of
reporting shall be paid by the state from the appropriation for the court.
Proceedings before the magistrate division shall not be reported.
(2)
If information is confidential under ORS 308.411 (4) or by court order under
ORS 305.420 (4), and is introduced into evidence in any hearing before the tax
court, the court first shall make such order or orders as are necessary to
protect the confidentiality of the information.
(3)
In any proceeding before a magistrate or before the tax court judge involving
confidential business records, tax returns or documents containing trade
secrets, upon motion of a party to the proceeding, the magistrate or judge may
make such protective orders as may be necessary to protect the confidentiality
of such records or the information contained therein. In determining whether
such protective orders should be issued, the court shall weigh the harm
suffered by the disclosing party against any benefit received by the public as
a result of the disclosure. Complaints, pleadings and other filings containing
confidential business record information, tax return information or trade
secret information shall be subject to the provisions of this subsection.
(4)
In a matter involving a request for a protective order under subsections (2)
and (3) of this section, the decision of a magistrate of the tax court may be
appealed to the regular division of the tax court and the magistrate may stay
the case on the merits until the request for a protective order is resolved by
the tax court judge or the Supreme Court. A decision of the tax court judge on
a request for a protective order shall be a final order for purposes of appeal
to the Supreme Court. The parties may appeal the issue of the protective order
to the Supreme Court at any time after the protective order was granted or
denied by the tax court judge. Upon appeal to the Supreme Court, the Supreme
Court shall stay the case on the merits until a resolution of the protective
order issue is determined by the Supreme Court. Appeals to the regular division
of the tax court described in this subsection shall be expedited and determined
within 90 days, unless the tax court determines in its discretion that it requires
additional time. [1961 c.533 §19; 1981 c.139 §9; 1981 c.727 §2; 1989 c.760 §1;
1995 c.650 §21; 2005 c.345 §7; 2009 c.457 §1]
305.435 [1961
c.533 §20; 1963 c.280 §1; 1965 c.6 §6; 1977 c.870 §30; 1991 c.459 §16; 1997
c.541 §62; repealed by 1995 c.650 §114]
305.437 Damages for frivolous or
groundless appeal or appeal to delay. (1) Whenever
it appears to the Oregon Tax Court that proceedings before it have been
instituted or maintained by a taxpayer primarily for delay or that the taxpayer’s
position in such proceeding is frivolous or groundless, a penalty in an amount
not to exceed $5,000 shall be awarded to the Department of Revenue by the
Oregon Tax Court in its judgment. The penalty so awarded shall be paid within
10 days after the judgment becomes final. If the penalty remains unpaid, the
department may collect the amount awarded in the same manner as income taxes
are collected under ORS 314.430.
(2)
As used in this section:
(a)
A taxpayer’s position is “frivolous” if there was no objectively reasonable
basis for asserting the position.
(b)
“Position” means any claim, defense or argument asserted by a taxpayer without
regard to any other claim, defense or argument asserted by the taxpayer. [1987
c.843 §4; 1995 c.650 §6a; 2009 c.640 §5]
305.440 Finality of unappealed decision of
tax court; effect of appeal to Supreme Court. (1)
The decision of the court shall be binding upon all parties until changed, if
at all, by the decision of the Supreme Court upon appeal. If no appeal is taken
to the Supreme Court, the decision of the court shall constitute a final
determination of the matter. If an appeal is taken, the decision of the court
shall become final in the same manner as the decision or judgment of the
circuit court becomes final when appeal therefrom is taken to the Supreme
Court.
(2)
Upon the final determination of any ad valorem tax matter, all officers having
charge of the rolls on which the assessments involved in such proceeding
appears shall correct the same in accordance with such determination, and taxes
shall be refunded as provided in ORS 311.806 or additional taxes collected by
the proper officers. In the case of an appeal as to properties assessed or
taxed under ORS 308.505 to 308.665 or 308.805 to 308.820, a certified copy of
the judgment of the court shall be sufficient warrant for the apportionment,
levying and collecting of taxes against the property constituting the subject
matter of the appeal and upon the valuation determined by the court. If any
reapportionment as between counties is made by the court on appeal,
corresponding adjustments shall be made by the tax collectors of the counties
affected. [1961 c.533 §21; 1971 c.567 §15; 1977 c.870 §31; 1983 c.696 §9; 1985
c.85 §11; 1997 c.154 §26; 2003 c.576 §412]
305.445 Appeals to Supreme Court;
reviewing authority and action on appeal. The
sole and exclusive remedy for review of any decision or order of the judge of
the tax court shall be by appeal to the Supreme Court. Jurisdiction hereby is
vested in the Supreme Court to hear and determine all appeals from final
decisions and final orders of the judge of the tax court. The scope of the
review of either a decision or order of the tax court judge shall be limited to
errors or questions of law or lack of substantial evidence in the record to
support the tax court’s decision or order. Such appeals, and the review of
final decisions and final orders of the tax court, shall be in accordance with
the procedure in actions at law on appeal from a circuit court, but without
regard to the sum involved. Upon such appeal and review, the Supreme Court
shall have power to affirm, modify or reverse the order or decision of the tax
court appealed from, with or without remanding the case for further hearing, as
justice may require. [1961 c.533 §22; 1995 c.650 §25]
305.447 Recovery by taxpayer of certain
costs and expenses upon appeal to Supreme Court.
If, in an appeal under ORS 305.445 involving taxes upon or measured by net
income in which an individual taxpayer is a party, the court grants the refund claimed
by the taxpayer or denies the additional assessment of taxes claimed by the
Department of Revenue to be due from the taxpayer, the court may allow the
taxpayer:
(1)
Reasonable attorney fees for the appeal under ORS 305.445 and for any prior
proceeding in the matter before the tax court; and
(2)
Reasonable expenses as determined by the court in addition to costs and
disbursements. Expenses include accountant fees and fees for other experts
incurred by the taxpayer in preparing for and conducting the appeal under this
section and any prior proceeding in the matter before the tax court. [1971
c.265 §3; 1977 c.870 §31a; 1995 c.650 §26; 1997 c.99 §§37,38]
305.450 Publication of tax court
decisions. The tax court shall cause a copy of
each of its written decisions to be delivered to the State Court Administrator.
The administrator, after consultation with the judge of the tax court, shall
determine whether a decision is of general public interest. The decisions
determined to be of general public interest shall be published and distributed
as provided in ORS 2.150. Bound volumes of reports of decisions constitute the
official reports of the tax court. [1961 c.533 §23; 1963 c.250 §1; 1967 c.96 §1;
1967 c.398 §2; subsection (4) enacted as 1967 c.398 §9 (3); 1975 c.37 §2; 1977
c.145 §1; 1979 c.876 §3; 1982 s.s.1 c.7 §2]
305.452 Election and term of judge;
vacancy; recommendation of appointees to fill vacancy.
(1) The judge of the tax court shall be elected by the electors of the state
for a term of six years, in the manner provided in ORS chapter 249.
(2)
In the event of a vacancy in the office of judge, the vacancy shall be filled
by an appointment made by the Governor. The Governor may request the governors
of the Oregon State Bar to submit to the Governor the names of five or more
eligible persons deemed by them to be particularly experienced in the field of
tax law, as an aid to the Governor in making the appointment. [1961 c.533 §§2,3(2);
1979 c.190 §412]
305.455 Qualifications of judge;
inapplicability of disqualification-for-prejudice provision.
(1) The judge of the tax court shall be a citizen of the United States and of
this state, and shall have been admitted to practice in the Supreme Court of
Oregon and have been engaged in this state for at least three years preceding
the election or appointment of the judge of the tax court, either in active
practice, governmental or private, as an attorney and counselor at law or in
the discharge of the duties of a judicial or quasi-judicial office.
(2)
Notwithstanding the provision of any other law, the provisions of ORS 14.250
relating to the disqualification of a judge for prejudice shall not be
applicable to any judge serving regularly or temporarily as a judge of the tax
court. [1961 c.533 §3(1),(8); 2003 c.518 §10]
305.460 Salary, expenses, disability and
retirement of judge and magistrates. (1) The judge
of the tax court shall receive such salary as is provided by law. The presiding
magistrate and magistrates of the tax court shall receive such salary as is
fixed under the personnel plan established by the Chief Justice of the Supreme
Court pursuant to ORS 1.008. The judge and magistrates shall receive no other
allowances for services except as authorized by this section.
(2)
When the judge or a magistrate of the tax court holds court or performs any
other official function away from the state capital, hotel bills and traveling
expenses necessarily incurred by the judge or magistrate in the performance of
that duty shall be paid by the state. Such expenses are to be paid upon the
certificate of the judge or magistrate to the truth of an itemized statement of
the expenses. The certificate of expenses is a sufficient voucher upon which
the claim shall be paid as provided in ORS 293.295 to 293.462. The Oregon
Department of Administrative Services shall draw a warrant upon the State
Treasurer for the amount thereof in favor of the tax court judge or magistrate.
(3)
The judge of the Oregon Tax Court shall be subject to the provisions of ORS
1.310 and 238.505 relating to disability and retirement to the same extent and
in the same manner as a judge of a circuit court. A tax court magistrate shall
be subject to the provisions of law relating to retirement for disability and
retirement applicable to a state officer or employee. [1961 c.533 §§4,5; 1977
c.896 §9; 1983 c.740 §85; 1991 c.815 §10; 1995 c.650 §4]
305.465 [1961
c.533 §6; repealed by 1975 c.706 §10]
305.470 Presiding judge; functions.
Whenever more than one judge is serving as a judge of the tax court, the judge
elected or appointed under ORS 305.452 shall be the presiding judge. The
presiding judge shall assign causes, matters and proceedings and apportion the
business of the tax court. [1961 c.533 §7; 1981 s.s. c.1 §24]
305.475 Offices of tax court; location of
hearings. The principal office of the tax court
shall be in the state capital, but the court may hold hearings in any location
designated under ORS 1.085. The county court or board of county commissioners,
upon request of the judge of the tax court, shall provide the court with
suitable rooms when hearings are held in the county. [1961 c.533 §9; 1969 c.706
§64d; 1983 c.763 §8; 2007 c.547 §11]
305.480 State Court Administrator as
administrator and clerk; other personnel; expenses; limitation on activities of
personnel. (1) The State Court Administrator shall
act as court administrator for the tax court. Other necessary employees of the
court shall be appointed and otherwise governed by applicable provisions of the
personnel plan for employees of the courts of this state who are state
employees.
(2)
The judge and employees of the court shall be reimbursed for all actual and
necessary expenses as provided by law.
(3)
No employee of the court shall act as attorney, counselor or accountant in the
matter of any tax imposed or levied by this state or any of its political
subdivisions.
(4)
Subject to the applicable provisions of a personnel plan established by the
Chief Justice of the Supreme Court of Oregon, the judge of the tax court shall
appoint a person to serve as tax court clerk. The tax court clerk shall:
(a)
Keep the seal of the tax court and affix it in all cases required by law.
(b)
Record the proceedings of the court.
(c)
Keep the records, files, books and papers pertaining to the tax court.
(d)
File all papers delivered to the officer for that purpose in any suit or
proceeding therein, or before the judge.
(e)
Attend the tax court and administer oaths.
(f)
Under the direction of the judge of the tax court enter its orders and judgments.
(g)
Authenticate, by certificate or transcript, as may be required, the records,
files or proceedings of the tax court, or any paper pertaining thereto, and
filed with the officer.
(h)
In the performance of duties pertaining to the tax court, conform to the
direction of the tax court judge.
(5)
The State Court Administrator may delegate powers of the State Court
Administrator under this section to employees of the State Court Administrator.
[1961 c.533 §11; 1981 c.727 §1; 1995 c.273 §5; 1995 c.650 §3]
305.485 Records.
(1) The records of the tax court shall include a register, journal and fee
book.
(2)
The register is a book wherein the clerk shall enter, by its title, every suit
or proceeding commenced in, or transferred or appealed to, the tax court,
according to the date of its commencement, transfer or appeal. Thereafter,
until the entry of judgment, the clerk shall note therein, according to the
date thereof, the filing or return of any paper or process, or the making of
any order, rule or other direction in or concerning such suit or proceeding.
(3)
The journal is a book wherein the clerk shall enter the proceedings of the
court.
(4)
The fee book is a book wherein the clerk shall enter, under the title of every
cause, against the party to whom the service is rendered, the clerk’s fees
earned, and whether received or not received.
(5)
The files of the court are all papers or process filed with or by the clerk of
the court, in any suit or proceeding therein, or before the judge.
(6)
Separate records shall be kept for the magistrate division.
(7)
ORS 7.095, authorizing the use of electronic data processing techniques, is
applicable to the records required by this section. [1961 c.533 §10; 1995 c.273
§26; 1995 c.650 §5; 1997 c.325 §§9,10]
(Industrial Property Appeals)
305.487 Findings and policy.
(1) The Legislative Assembly finds that:
(a)
Principal and secondary industrial property that is appraised by the Department
of Revenue under ORS 306.126 and property that is centrally assessed by the
department under ORS 308.505 to 308.665 involve large amounts of property value
and complex appraisal issues.
(b)
Appeals of the value of principal and secondary industrial property or
centrally assessed property can have significant impact on the stable funding
of essential local government services because of the fiscal consequences of
substantial tax refunds.
(c)
The citizens of this state and the owners of industrial or centrally assessed
property are best served by the efficient resolution of property tax appeals
related to these properties.
(2)
The Legislative Assembly declares that it is the policy of this state to
strongly encourage taxpayers, local governments, the department and the Oregon
Tax Court to resolve appeals related to the value of principal or secondary
industrial property or centrally assessed property as quickly and efficiently
as possible, in order to reduce the financial impacts of lengthy appeal
processes. [2005 c.345 §13]
Note:
305.487 and 305.489 were added to and made a part of 305.404 to 305.560 by
legislative action but were not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.
305.489 Considerations in adopting rules.
The Department of Revenue shall consider the findings and declarations of the
Legislative Assembly under ORS 305.487 when adopting administrative rules
related to appeals to the Oregon Tax Court of the value of principal or
secondary industrial property or centrally assessed property, in order to
ensure that the rules that the department adopts promote the objectives of
quick and efficient resolution of these appeals. [2005 c.345 §14]
Note: See
note under 305.487.
(Fees)
305.490 Filing fees; recovery of certain
costs and disbursements; additional recovery for certain taxpayers; disposition
of receipts. (1) Plaintiffs or petitioners filing a
complaint or petition in the tax court shall pay the filing fee established
under ORS 21.135 at the time of filing for each complaint or petition.
(2)
Neither the State of Oregon, nor any county, school district, municipal
corporation or other public corporation therein, nor any officer of any such
public political division or corporation, appearing in the representative
capacity of the officer of any public political division or corporation, shall
be required to pay the fee prescribed under this section. The party entitled to
costs and disbursements on such appeal shall recover from the opponent of the
party the amount so paid upon order of the court, as in equity suits in the
circuit court.
(3)(a)
If, in any proceeding before the tax court judge involving taxes upon or
measured by net income in which an individual taxpayer is a party, or involving
inheritance or estate taxes, the court grants a refund claimed by the executor
or taxpayer or denies in part or wholly an additional assessment of taxes
claimed by the Department of Revenue to be due from the estate or taxpayer, the
court may allow the taxpayer, in addition to costs and disbursements, the
following:
(A)
Reasonable attorney fees for the proceeding under this subsection and for the
prior proceeding in the matter, if any, before the magistrate; and
(B)
Reasonable expenses as determined by the court. Expenses include accountant
fees and fees of other experts incurred by the executor or individual taxpayer
in preparing for and conducting the proceeding before the tax court judge and
the prior proceeding in the matter, if any, before the magistrate.
(b)
Payment of attorney fees or reasonable expenses under this subsection shall be
made by the Department of Revenue in the manner provided by ORS 305.790.
(4)(a)
If, in any proceeding before the tax court judge involving ad valorem property
taxation, exemptions, special assessments or omitted property, the court finds
in favor of the taxpayer, the court may allow the taxpayer, in addition to
costs and disbursements, the following:
(A)
Reasonable attorney fees for the proceeding under this subsection and for the
prior proceeding in the matter, if any, before the magistrate; and
(B)
Reasonable expenses as determined by the court. Expenses include fees of
experts incurred by the individual taxpayer in preparing for and conducting the
proceeding before the tax court judge and the prior proceeding in the matter,
if any, before the magistrate.
(b)
Payment of attorney fees or reasonable expenses under this subsection shall be
made by the Department of Revenue in the manner provided by ORS 305.790.
(5)
All fees and other moneys received or collected by the clerk by virtue of the
office of the clerk shall be paid over to the State Treasurer and shall be held
by the clerk in the General Fund as miscellaneous receipts. [1961 c.533 §15(1),
(3); 1965 c.6 §7; 1971 c.265 §1; 1977 c.870 §32; 1993 c.612 §1; 1995 c.650 §6;
1997 c.99 §§40,41; 1999 c.21 §10; 2001 c.287 §1; 2005 c.345 §8; 2009 c.53 §1;
2011 c.526 §24; 2011 c.595 §62]
305.492 Fees and expenses of witnesses.
Any witness subpoenaed or whose deposition is taken shall receive the fees and
mileage provided for witnesses in ORS 44.415 (2). Witnesses for the state or
its political subdivisions shall be paid from moneys appropriated therefor.
Payment of fees and mileage to other witnesses shall be made by the party at
whose instance the witness appears or the deposition is taken. [Formerly
305.495]
305.493 Fees for transcripts or copies of
records. (1) The judge of the tax court elected
or appointed under ORS 305.452 may establish a fee for comparing, or for
preparing and comparing, a transcript of the record. The fee established under
this subsection may not exceed the fees charged and collected by the clerks of
the circuit court.
(2)(a)
The Chief Justice of the Supreme Court by order may establish fees for copies
of tax court records, for services relating to those records and for other
services that the tax court, the clerk of the tax court or the State Court
Administrator acting as court administrator for the tax court is authorized or
required to perform.
(b)
The Chief Justice may not establish:
(A)
A fee for the location or inspection of court records; or
(B)
A fee for a service under this subsection if the fee is otherwise specified by
statute.
(3)
The fee established by the Chief Justice under subsection (2) of this section
for paper copies of records may not exceed 25 cents per page, except for
records for which additional services are required. If additional services are
required, fees for providing the records are subject to ORS 192.440. [Formerly
305.500; 2009 c.53 §2]
(Representation)
305.494 When shareholder may represent
corporation in tax court proceedings.
Notwithstanding ORS 9.320, 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 the Oregon Tax
Court in the same manner as if the shareholder were a partner and the S
corporation were a partnership. [Formerly 305.510; 1997 c.839 §42; 1999 c.90 §29;
2001 c.660 §24; 2003 c.77 §2; 2005 c.832 §14; 2007 c.614 §2; 2008 c.45 §2; 2009
c.5 §12; 2009 c.909 §12; 2010 c.82 §12; 2011 c.7 §12]
305.495 [1961
c.533 §18; 1989 c.980 §12; renumbered 305.492 in 1995]
(Magistrate Division)
305.498 Magistrates; appointment;
qualifications; oaths; duties; dismissal; appointment of presiding magistrate.
(1) The magistrate division is established in the Oregon Tax Court. The judge
of the tax court shall appoint one or more individuals to sit as magistrates of
the magistrate division at locations within the state as the judge shall
determine.
(2)
An individual who is appointed as a tax court magistrate shall be a citizen of
the United States and a resident of this state and competent to perform the
duties of the office.
(3)
A full-time, part-time or temporary magistrate shall perform such duties as the
judge of the tax court or presiding magistrate may direct.
(4)(a)
Before entering on the duties of office, each individual employed as a tax
court magistrate shall take and subscribe to an oath or affirmation that the
individual:
(A)
Will support the Constitutions of the United States and of this state and
faithfully and honestly discharge the duties of the office.
(B)
Does not hold, and while the individual is a magistrate will not hold, a
position under any political party.
(b)
The oath or affirmation shall be filed in the office of the Secretary of State.
(5)
An individual while a magistrate may hold another office or position of profit
or pursue another calling or vocation unless holding the office or position or
pursuing the calling or vocation:
(a)
Is inconsistent with the expeditious, proper and impartial performance of the
duties of a magistrate; or
(b)
Would interfere with the ability of the magistrate to perform fully the duties
of the magistrate’s position.
(6)
The judge of the tax court may appoint one of the magistrates as presiding
magistrate.
(7)
A tax court magistrate and other officers and employees of the magistrate
division of the tax court appointed under a personnel plan established by the
Chief Justice of the Supreme Court of Oregon are state officers or employees in
the exempt service and not subject to ORS chapter 240. However, an officer or
employee shall have the right to be dismissed only for just cause after hearing
and appeal. [1995 c.650 §2; 2011 c.309 §1]
305.500 [1961
c.533 §§15(2),24; 1963 c.423 §3; renumbered 305.493 in 1995]
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. (1) Except as
provided in subsection (2) of this section, an appeal to the tax court shall be
heard by a tax court magistrate unless specially designated by the tax court
judge for hearing in the regular division. In any matter arising under the
property tax laws and involving a county or county assessor that is designated
for hearing in the regular division, the Department of Revenue shall be
substituted for the county as a party.
(2)
A party to the appeal may request mediation, or the tax court on its own motion
may assign the matter to mediation. If the mediation does not result in an
agreed settlement within 60 days after the end of the mediation session, the
appeal shall, absent a showing of good cause for a continuance, be assigned to
a magistrate for hearing.
(3)
The tax court, with the assistance of the State Court Administrator, shall
establish procedures for magistrate division hearings and mediation.
(4)(a)
Subject to the rules of practice and procedure established by the tax court, a
magistrate is not bound by common law or statutory rules of evidence or by
technical or formal rules of procedure, and may conduct the hearing in any
manner that will achieve substantial justice. A hearing may be conducted in
person or by telephone. Magistrates may confer with each other in order to
reach a decision on any matter.
(b)
All written magistrate decisions shall be mailed to the parties to the appeal
and to the Department of Revenue within five days after the date of entry of
the written decision.
(5)(a)
Any party dissatisfied with a written decision of a magistrate may appeal the
decision to the judge of the tax court by filing a complaint in the regular
division of the tax court within 60 days after the date of entry of the written
decision.
(b)
If a decision of a magistrate involves any matter arising under the property
tax laws and a county was a party to the proceeding before the magistrate, the
Department of Revenue may file a notice of appeal whether or not the department
had intervened in the proceeding before the magistrate. In such cases, the
department shall appear before the tax court judge in any proceeding on appeal.
(c)
If a decision of a magistrate involves any matter arising under the property
tax laws and a party other than a county appeals the decision to the tax court
judge, the Department of Revenue shall be the defendant.
(d)
Appeal to the judge of the tax court is the sole and exclusive remedy for
review of a written decision of a magistrate.
(6)
Appeal of a final decision of a magistrate before the judge of the tax court
shall be as provided in ORS 305.425 (1) and 305.570.
(7)
If no appeal is taken to the tax court judge within 60 days, the decision of
the magistrate shall become final. The tax court shall enter a judgment
enforcing all final decisions of the magistrate, which judgment shall be
binding upon all parties. ORS 305.440 (2) applies to the final determination of
any property tax matter. [1995 c.650 §11; 1997 c.872 §20; 1999 c.340 §1; 2005
c.345 §9; 2007 c.283 §1]
305.505 Magistrate division records;
statistical reports. (1) The records of the tax court
magistrate division shall include information as to the dates cases are filed
and the dates decisions are issued.
(2)
At the time of preparation biennially of consolidated budgets for submission to
the Legislative Assembly under ORS 8.125, the State Court Administrator shall
prepare and submit to the Legislative Assembly general statistical information
as to the amount of time required by the tax court magistrate division to reach
its decisions. [1995 c.650 §5a; 2005 c.94 §23]
305.510 [1973
c.681 §2; 1985 c.802 §36; 1995 c.556 §31; renumbered 305.494 in 1995]
305.514 [1995
c.650 §3a; 1997 c.99 §43; 1997 c.170 §17; 1997 c.541 §64; 2003 c.621 §77; 2003
c.804 §64; repealed by 2005 c.345 §1]
305.515 [1961
c.533 §26; 1965 c.6 §8; 1967 c.78 §11; 1969 c.355 §1; 1971 c.567 §16; 1973
c.752 §11; 1975 c.705 §3; 1977 c.870 §33; 1977 c.892 §55; 1983 c.673 §19; 1985
c.407 §2; 1985 c.759 §39; 1985 c.816 §41; 1989 c.760 §2; 1991 c.459 §18; 1991
c.790 §18; 1993 c.270 §13; 1993 c.612 §2; 1997 c.99 §45; 1997 c.170 §19;
repealed by 1995 c.650 §114]
305.520 [1961
c.533 §34; 1995 c.79 §109; repealed by 1995 c.650 §114]
305.525 Notice to taxpayer of right to
appeal. At the same time that a notice of
assessment, letter of refund denial or determination or an order of the board
of property tax appeals is given to any taxpayer, the Department of Revenue or
board of property tax appeals, as the case may be, shall in writing also notify
the taxpayer of the right of the taxpayer to appeal to the tax court under ORS
305.404 to 305.560. [1961 c.533 §29; 1977 c.870 §54; 1995 c.650 §64; 1997 c.541
§§66,67]
305.530 [1961
c.533 §27; 1967 c.78 §10; 1971 c.567 §17; 1975 c.762 §18; 1977 c.870 §14;
repealed by 1995 c.650 §114]
305.535 [1961
c.533 §28; 1969 c.355 §2; 1977 c.870 §15; 1977 c.892 §57; 1981 c.804 §85; 1983
s.s. c.5 §2; 1991 c.459 §20; 1993 c.270 §14; repealed by 1995 c.650 §114]
305.540 [1961
c.533 §30; 1971 c.351 §1; repealed by 1995 c.650 §114]
305.543 [1983
c.673 §21; 1991 c.459 §21; 1997 c.541 §69; repealed by 1995 c.650 §114]
305.545 [1961
c.533 §32; repealed by 1995 c.650 §114]
305.550 [1961
c.533 §31; 1971 c.351 §2; repealed by 1995 c.650 §114]
305.555 [1961
c.533 §33; 1993 c.270 §15; repealed by 1995 c.650 §114]
(Appeals Procedure; Effect of Pendency
of Appeal)
305.560 Appeals procedure generally;
procedure when taxpayer is not appellant; intervention.
(1)(a) Except for an order, or portion thereof, denying the discretionary
waiver of penalty or interest by the Department of Revenue, an appeal under ORS
305.275 may be taken by filing a complaint with the clerk of the Oregon Tax
Court at its principal office at Salem, Oregon, within the time required under
ORS 305.280.
(b)
The clerk of the tax court shall serve copies of all complaints and petitions
on the Department of Revenue. Service upon the department shall be accomplished
by the clerk of the tax court filing the copy of the complaint with the
Director of the Department of Revenue. Except as otherwise provided by law,
other service shall be accomplished as provided in the rules of practice and
procedure promulgated by the tax court.
(c)(A)
The complaint shall be entitled in the name of the person filing the same as
plaintiff and the Department of Revenue, county, taxpayer or other person or
entity as defendant. If the complaint relates to value of property for ad
valorem property tax purposes and the county has made the appraisal, the
complaint shall be entitled in the name of the person filing the same as
plaintiff and the county assessor as defendant.
(B)
If any, a copy of the order of the department or board of property tax appeals
shall be attached to the complaint.
(2)
The complaint shall state the nature of the plaintiff’s interest, the facts
showing how the plaintiff is aggrieved and directly affected by the order, act,
omission or determination and the grounds upon which the plaintiff contends the
order, act, omission or determination should be reversed or modified. A
responsive pleading shall be required of the defendant.
(3)
In any case in which the taxpayer is not the appealing party, a copy of the
complaint shall be served upon the taxpayer by the appealing party by certified
mail within the period for filing an appeal, and an affidavit showing such
service shall be filed with the clerk of the tax court. A copy of the order of
the department, if any, shall be attached to the complaint. The taxpayer shall
have the right to appear and be heard.
(4)(a)
At any time in the course of any appeal before the tax court, the department
may intervene as a matter of right. A copy of any order or judgment issued by
the tax court in any case in which the department is an intervenor shall be
served upon the department in the manner provided in subsection (1)(b) of this
section.
(b)
The tax court, in its discretion, may permit other interested persons to
intervene by filing a complaint in such manner and under such conditions as the
court may deem appropriate. [1977 c.870 §10; 1989 c.760 §3; 1991 c.459 §23;
1993 c.270 §16; 1995 c.650 §10; 1997 c.541 §71; 2005 c.225 §4]
305.565 Stay of collection of taxes,
interest and penalties pending appeal; exception; bond.
(1) Except as provided in subsection (2) of this section, proceedings for the
collection of any taxes, interest or penalties resulting from an assessment of
additional taxes imposed by ORS chapter 118, 310, 314, 316, 317, 318, 321 or
this chapter shall be stayed by the taking or pendency of any appeal to the tax
court.
(2)
Notwithstanding subsection (1) of this section, the Department of Revenue may
proceed to collect any taxes, interest or penalties described in subsection (1)
of this section if the department determines that collection will be
jeopardized if collection is delayed or that the taxpayer has taken a frivolous
position in the appeal. For purposes of this subsection:
(a)
Collection of taxes, interest or penalties will be jeopardized if the taxpayer
designs quickly to depart from the state or to remove the taxpayer’s property
from the state, or to do any other act tending to prejudice or to render wholly
or partially ineffectual proceedings to collect the tax.
(b)
A taxpayer’s position in an appeal is frivolous if that position is of the kind
described in ORS 316.992 (5).
(3)
No proceeding for the apportionment, levy or collection of taxes on any
property shall be stayed by the taking or pendency of any appeal to the tax
court, or from an order of the county board of property tax appeals or the
Oregon Tax Court, unless the assessor or tax collector either as a party to the
suit or an intervenor, requests a stay and it appears to the satisfaction of
the court that a substantial public interest requires the issuance of a stay.
(4)
The tax court may, as a condition of a stay, require the posting of a bond
sufficient to guarantee payment of the tax. Payment of taxes while appeal is
pending shall not operate as a waiver of the appeal or of a right to refund of
taxes found to be excessively charged or assessed. [1977 c.870 §11; 1982 s.s.1
c.29 §4; 1985 c.761 §9; 1991 c.567 §4; 1993 c.270 §18; 1995 c.650 §23; 1997
c.99 §§47,48; 1997 c.325 §13; 1997 c.541 §73]
305.570 Standing to appeal to regular
division of tax court; perfection of appeal. (1)(a)
Any person, including a county assessor or county tax collector aggrieved by
and affected by a written decision of a tax court magistrate issued under ORS
305.501, or any person seeking a remedy in the tax court provided by statute,
other than as provided in ORS 305.275 (1), may appeal to the regular division
of the Oregon Tax Court, and appeal shall be perfected in the manner provided
in ORS 305.404 to 305.560.
(b)
Except for an appeal brought by a county assessor or county tax collector, the
order being appealed under this subsection must affect the person or 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.
(2)
A taxpayer or political subdivision affected by a determination of the
Department of Revenue authorized under ORS 305.620 may appeal to the tax court
as provided in ORS 305.620. [1977 c.870 §13; 1983 c.605 §3; 1983 c.749 §3; 1991
c.459 §29; 1993 c.18 §65; 1995 c.650 §24; 1997 c.541 §75; 1997 c.826 §§4,5;
1999 c.21 §11; 1999 c.340 §4]
305.575 Authority of tax court to
determine deficiency. In an appeal to the Oregon Tax
Court from an assessment made under ORS 305.265, the tax court has jurisdiction
to determine the correct amount of deficiency, even if the amount so determined
is greater or less than the amount of the assessment determined by the
Department of Revenue, and even if determined upon grounds other or different
from those asserted by the department, provided that claim for such additional
tax on other or different grounds is asserted by the department before or at
the hearing or any rehearing of the case before the tax court. In the event
such other or different grounds are asserted by the department, the opposing
party shall be allowed additional time, not less than 10 days, within which to
amend or otherwise plead thereto, which additional time, however, may be waived
by stipulation of the parties. The order of the tax court shall be sufficient
for the collection by the department of the entire amount found by the court to
be owing and due. [1977 c.870 §21; 1995 c.650 §30]
(Constitutional Limits Upon Property Taxes;
Effects; Determination)
305.580 Exclusive remedies for certain
determinations; priority of petitions. (1) The
provisions of ORS 305.583, 305.585, 305.587 and 305.589 shall provide the
exclusive remedy for determination of questions concerning:
(a)
The effect of the limits of section 11b, Article XI of the Oregon Constitution
on taxes, fees, charges and assessments of units of government.
(b)
The authorized uses of the proceeds of bonded indebtedness described in section
11 (11)(d), Article XI of the Oregon Constitution.
(2)
A petition filed with the regular division of the Oregon Tax Court pursuant to
ORS 305.583, 305.585, 305.587 or 305.589 shall have priority over all other
cases pending before the regular division and shall be heard and decided as
soon after coming to issue as is reasonably possible. [1991 c.459 §25; 1999
c.340 §8; 2003 c.195 §19]
305.583 Interested taxpayer petitions for
certain determinations; petition contents; manner and time for filing;
classification notice requirements; bond proceed use notice requirements.
(1) An interested taxpayer may petition the regular division of the Oregon Tax
Court to determine a question described in ORS 305.580.
(2)(a)
For purposes of this section and a question described in ORS 305.580 (1)(a), “interested
taxpayer” means a person that is subject to the tax, fee, charge or assessment
in question.
(b)
For purposes of this section and a question described in ORS 305.580 (1)(b), “interested
taxpayer” means a person that is subject to a tax, fee, charge or assessment
that is pledged to secure or available for payment of bonded indebtedness
described in section 11 (11)(d), Article XI of the Oregon Constitution.
(3)
The petition shall be filed and perfected in the following manner only:
(a)
The petitioner shall file a petition with the clerk of the tax court at its
principal office in Salem, Oregon. The petition shall name as respondent the
government unit that imposes the tax, fee, charge or assessment, that issues
the bonded indebtedness or, in the case of an urban renewal agency, that
receives the taxes. The filing in the tax court shall constitute the perfection
of the petition. The clerk of the tax court shall serve the government unit by
mailing a copy of the petition to the recording officer or chief administrative
officer of the local government unit or to the Attorney General if the tax,
fee, charge or assessment in question is imposed by the State of Oregon. The
clerk also shall serve a copy of any petition naming a local government unit as
respondent upon the Oregon Department of Justice.
(b)
The petition shall state the facts and grounds upon which the petitioner
contends that the tax, fee, charge or assessment is affected by section 11 or
11b, Article XI of the Oregon Constitution, or that a use of the proceeds of
bonded indebtedness is not authorized. The case shall proceed thereafter in the
manner provided for appeals concerning ad valorem property tax assessments. ORS
305.405 to 305.494 shall apply to such actions.
(4)(a)
Except as provided in subsections (5) to (8) of this section, in the case of a
question regarding the effect of the limits of section 11b, Article XI of the
Oregon Constitution, on any tax, fee, charge or assessment that is imposed
under a resolution or ordinance approved by the governing body of a local
government unit, the petition shall be filed within 60 days after the action of
the governing body approving the ordinance or resolution, adopting a new
ordinance or resolution or changing an existing ordinance or resolution under
which the tax, fee, charge or assessment is imposed, if the resolution or
ordinance includes a classification of the tax, fee, charge or assessment as
subject to or not subject to section 11 or 11b, Article XI of the Oregon
Constitution. If the local government unit has not classified the tax, fee,
charge or assessment, the petition shall be filed within 60 days after the
later of:
(A)
The last date, but no later than November 15, that the tax statements were
mailed for the tax year in which the tax, fee, charge or assessment was
imposed; or
(B)
The date of imposition of the tax, fee, charge or assessment on the petitioner.
(b)
If the local government unit adopts an ordinance or resolution classifying all
or any of the taxes, fees, charges or assessments it imposes as subject to or
not subject to section 11 or 11b, Article XI of the Oregon Constitution, as
described in ORS 310.145, the petition shall be filed within 60 days after the
governing body adopts the ordinance or resolution.
(5)
In the case of a question concerning any tax, fee, charge or assessment that is
characterized by the local government unit as an assessment for local
improvements, the petition shall be filed within 60 days after the local
government unit gives notice of its intention to characterize the charge as an
assessment for local improvements. Notice may be given to affected property
owners by the local government unit either when a local improvement district is
formed, in a notice of intent to assess given by the local government unit or
by other individual notice prior to assessment. Notice shall be given no later
than the date the assessment is imposed. Notice given as provided under this
subsection is in lieu of the notice required under subsection (9) of this
section.
(6)
In the case of a question concerning any taxes levied to pay principal and
interest on bonded indebtedness approved by the governing body of a local
government unit, the petition shall be filed within 60 days after the date the
issuance of the bonded indebtedness was approved by the governing body of the
local government unit if the resolution or ordinance of the governing body
authorizing issuance of the bonded indebtedness includes a classification of
the bonded indebtedness as subject to or not subject to the limits of section
11 or 11b, Article XI of the Oregon Constitution. If the local government unit
has not classified the bonded indebtedness, the petition shall be filed within
60 days after the date specified in subsection (4)(a) of this section.
(7)
In the case of a question concerning any taxes levied to pay principal and
interest on bonded indebtedness not subject to the limits of section 11 or 11b,
Article XI of the Oregon Constitution, that was approved by the electors of the
local government unit at an election held on or after September 29, 1991, the
petition shall be filed within 60 days after the date of the election at which
the question of issuing the bonded indebtedness was approved by the electors of
the local government unit.
(8)
In the case of a question concerning the effect of section 11 or 11b, Article
XI of the Oregon Constitution, on any tax, fee, charge or assessment imposed by
the state, the petition shall be filed within 60 days after the first
imposition of the tax, fee, charge or assessment by a state agency. For
purposes of this subsection, a tax, fee, charge or assessment shall be
considered imposed when it is due as provided by statute or when the state
agency notifies a person that the tax, fee, charge or assessment is due.
(9)
A local government unit:
(a)
Shall give notice of its adoption of an ordinance or resolution classifying any
of its taxes, fees, charges or assessments as not being subject to the limits
of section 11 or 11b, Article XI of the Oregon Constitution, by publishing,
within 15 days after adoption of the ordinance or resolution, an advertisement
in a newspaper of general circulation in the county in which the local
government unit is located or, if there is no newspaper of general circulation,
in a newspaper of general circulation in a contiguous county.
(b)
May give notice of its adoption of an ordinance or resolution specifying the
authorized uses of the proceeds of bonded indebtedness by publishing, within 15
days after adoption of the ordinance or resolution, an advertisement in a
newspaper of general circulation in the county in which the local government
unit is located or, if there is no newspaper of general circulation, in a
newspaper of general circulation in a contiguous county.
(10)
A notice described in subsection (9) of this section shall:
(a)
Appear in the general news section of the newspaper, not in the classified
advertisements;
(b)
Measure at least three inches square;
(c)
Be printed in a type size at least equal to 8-point type; and
(d)
State that the local government unit has adopted a resolution or ordinance:
(A)
Classifying one or more of its taxes, fees, charges or assessments as not being
subject to the limits of section 11 or 11b, Article XI of the Oregon
Constitution, that the reader may contact a designated individual within the
local government unit to obtain a copy of the ordinance or resolution and that
judicial review of the classification of the taxes, fees, charges or
assessments may be sought within 60 days of the date of the resolution or
ordinance; or
(B)
Specifying the authorized uses of the proceeds of bonded indebtedness, that the
reader may contact a designated individual within the local government unit to
obtain a copy of the ordinance or resolution and that judicial review of the
specification of authorized uses may be sought within 60 days of the date of
the resolution or ordinance.
(11)
An ordinance or resolution that results in a mere change in the amount of a
tax, fee, charge or assessment and does not result in a change in the
characteristics or attributes of the tax, fee, charge or assessment, or contain
a change in purpose to which the revenue is applied, may not be considered a
change that may result in a proceeding commenced under subsection (4) of this
section.
(12)
In the case of a question concerning the authorized uses of the proceeds of
bonded indebtedness, the petition must be filed within 60 days after the
adoption of the ordinance or resolution described in subsection (9)(b) of this
section or, if the governing body has not published the notice described in
subsection (9)(b) of this section, the petition must be filed within 180 days
after the questioned use of the proceeds is made. [1991 c.459 §26; 1993 c.18 §66;
1993 c.270 §19; 1995 c.79 §110; 1995 c.650 §73; 1997 c.541 §§78,78a,79,79a;
1999 c.340 §9; 2003 c.195 §20; 2005 c.225 §5; 2005 c.443 §18; 2011 c.256 §3]
305.585 Local government petitions
concerning taxes of another local government under 1990 Measure 5; manner and
time for filing. (1) A local government unit may
petition the regular division of the Oregon Tax Court to determine whether the
limits of section 11b, Article XI of the Oregon Constitution apply to a tax,
fee, charge or assessment of another local government unit if the boundaries of
both units include common territory and if the petitioning local government
unit will lose or has lost revenue because of the tax, fee, charge or
assessment that is the subject of the petition.
(2)
The petitioner shall file a petition with the clerk of the tax court at its
principal office in Salem, Oregon. The petition shall name the local government
unit that imposes the tax, fee, charge or assessment as respondent. Such filing
in the tax court shall constitute the perfection of the petition. The clerk of
the tax court shall serve the respondent local government unit by mailing a
copy of the petition to the recording officer or chief administrative officer
of the local government unit. The clerk also shall serve a copy of the petition
upon the Oregon Department of Justice.
(3)
The petition shall state the facts and grounds upon which the petitioner
contends that the tax, fee, charge or assessment at issue is not subject to the
limits of section 11b, Article XI of the Oregon Constitution. The case shall
proceed thereafter in the manner provided for appeals concerning ad valorem
property tax assessments. ORS 305.405 to 305.494 shall apply to such actions.
(4)
The petition shall be filed not later than 30 days after the date the
respondent local government unit filed its certificate required under ORS
310.060 with the county assessor. [1991 c.459 §26a; 1995 c.79 §111; 1995 c.650 §74;
1999 c.340 §10; 2005 c.225 §6]
305.586 Legislative findings; policy on
remedies for misspent bond proceeds. (1) The
Legislative Assembly finds that, when general obligation bonds are issued by a
government unit to finance the cost of capital construction or improvements,
subjecting the taxes imposed to pay the principal and interest on that bonded
indebtedness to the limits of section 11b (1), Article XI of the Oregon
Constitution, reduces the credit quality of the bonds, injures bondholders and
increases the cost of borrowing for all local governments in Oregon. The
Legislative Assembly also finds that it is in the best interests of the State
of Oregon and local governments in Oregon to ensure that, if a local government
body expends proceeds from such bonds for other than capital construction or
improvements, the holders of the bonds, who are innocent with regard to such
expenditure, will not suffer impairment of their security and interest in the
bonds as a result.
(2)
It is the policy of the State of Oregon and a matter of statewide concern that,
notwithstanding ORS 305.587 (1) and 305.589 (8), if in a proceeding commenced
under ORS 305.583 or 305.589, the Oregon Tax Court finds that the proceeds of
general obligation bonds issued for capital construction or improvements under
section 11b (3)(b), Article XI of the Oregon Constitution, have been expended
for purposes other than capital construction or improvements, the court shall
endeavor, to the fullest extent practicable and consistent with equitable
principles, to fashion a remedy that does not impair the security or value of
the bonds to the bondholders and does not prejudice the ability of the local
government body to satisfy its obligations under the bonds.
(3)
In addition, the court shall fashion any remedy in a manner that takes into
account the financial capacity and practical alternatives available to the
local government body, and shall ensure that the remedy is proportional to, and
restricted to correcting the amount of, any unlawful expenditure of bond
proceeds. To the fullest extent possible, the court shall avoid any remedy that
either invalidates, in whole or in part, the bonds or taxes levied or to be
levied for payment of the bonds, or that makes any amount of the bonds for
which the proceeds lawfully were expended subject to the limits of section 11b
(1), Article XI of the Oregon Constitution. [1997 c.171 §5]
305.587 Tax court findings; orders;
refunds; bond measure construction; other relief.
(1) If, in a proceeding commenced under ORS 305.583, the regular division of
the Oregon Tax Court finds that a challenged tax, fee, charge or assessment is subject
to the limits of section 11 or 11b, Article XI of the Oregon Constitution, the
tax court may:
(a)
Order the government unit to make refunds to petitioners of any part of the
challenged tax, fee, charge or assessment imposed on or after the date that is
90 days before the date the petition was filed and that was collected in excess
of the limits of section 11 or 11b, Article XI of the Oregon Constitution. The
tax court may not order refunds if the government unit previously had obtained
a judgment of the tax court or the Oregon Supreme Court under ORS 305.589, that
the tax, fee, charge or assessment in question was not subject to the limits of
section 11 or 11b, Article XI of the Oregon Constitution.
(b)
Order such other relief as it considers appropriate, including cancellation of
taxes imposed but not collected, but such relief shall have prospective effect
only. In cases involving local government units, a copy of the tax court’s
order shall be served upon the assessor of the county or counties in which the
local government unit is located at the same time the order is served upon the
parties.
(2)
If the tax court orders a unit of government to make refunds of any tax, fee,
charge or assessment that was imposed and collected in excess of the limits of
section 11 or 11b, Article XI of the Oregon Constitution, the government unit
shall do so out of the resources of the government unit. No refund so ordered
shall be paid from the unsegregated tax collections account. The assessor shall
not be required to recompute the amount of tax due from any property or
property owner with respect to the tax, fee, charge or assessment that is the
subject of the order for any tax year for which a tax statement has been
delivered under ORS 311.250.
(3)
If, in a proceeding commenced under ORS 305.585, the tax court finds that a
tax, fee, charge or assessment is not subject to the limits of section 11 or
11b, Article XI of the Oregon Constitution, the tax court may order such relief
as it considers appropriate, but such relief shall have prospective effect
only. In cases involving local government units, a copy of the tax court’s
order shall be served upon the assessor of the county or counties in which the
local government unit is located at the same time the order is served upon the
parties. The assessor shall not be required to recompute the amount of tax due
from any property or property owner with respect to the tax, fee, charge or
assessment that is the subject of the order for any tax year for which a tax
statement has been delivered under ORS 311.250.
(4)
For purposes of this section, taxes, fees, charges or assessments are deemed
imposed when the statement or bill for the taxes, fees, charges or assessments
is mailed.
(5)
In the case of a question concerning the authorized uses of the proceeds of
bonded indebtedness, the tax court shall construe the provisions of the measure
authorizing the bonded indebtedness and the use of the proceeds liberally to
allow the government unit to provide the facilities or services approved by the
voters.
(6)
If, in a proceeding commenced under ORS 305.583, the regular division of the
tax court finds that a use of the proceeds of bonded indebtedness is not
authorized by the applicable law, the tax court may prohibit the expenditure or
proceed in accordance with ORS 305.586. [1991 c.459 §26b; 1993 c.270 §20; 1997
c.541 §84; 1999 c.340 §11; 2003 c.195 §21]
305.589 Judicial declarations; petition by
local government; notice; intervention; appeal; remedies; costs.
(1) A local government unit or an association of local government units acting
for the common benefit of and on behalf of consenting members may petition the
regular division of the Oregon Tax Court for a judicial declaration of the
court concerning a question described in ORS 305.580.
(2)
Notice of the commencement of a proceeding under this section shall be given by
the petitioner or petitioners by publication of notice directed to all
electors, taxpayers and other interested persons, without naming such electors,
taxpayers or other interested persons individually. The notice shall be
published at least once a week for three successive weeks in a newspaper of
general circulation within the boundaries of the local government unit and each
of the consenting members of the association of local government units, if any,
or if no such newspaper is published therein, then in a contiguous county.
(3)
The petitioner or petitioners may elect to give further notice to affected
electors, taxpayers and other interested persons, or the court may order such
further notice as the court considers practicable.
(4)
The action authorized by this section shall be a special proceeding in the
nature of an ex parte proceeding in the absence of the intervention of a
respondent in opposition to the petition.
(5)
Jurisdiction of the local government unit and of consenting members of an
association of local government units shall be obtained by filing of the
petition. Jurisdiction over the electors, taxpayers and other interested
persons shall be complete 10 days after the date of completing publication of
the notice provided for in subsection (2) of this section, or giving of any
further notice as provided for in subsection (3) of this section. Jurisdiction
of any other party shall be obtained by appearance of any interested person who
seeks and is granted leave to intervene in the proceeding.
(6)(a)
Any elector, taxpayer or interested person or local government unit that may be
affected by the tax, fee, charge or assessment that is the subject of the
petition may intervene as a petitioner or respondent by filing the appropriate
appearance.
(b)
Any elector, taxpayer or interested person or local government unit that may be
affected by the use of the proceeds of the bonded indebtedness or a person that
is subject to a tax, fee, charge or assessment that is pledged to secure or
available for payment of the bonded indebtedness that is the subject of the
petition may intervene as a petitioner or respondent by filing the appropriate
appearance.
(7)
Any party to a proceeding commenced under this section, including a consenting
member of an association of local government units that was a party to the
proceeding, may appeal from the judgment rendered by the tax court to the
Oregon Supreme Court in the manner provided for appeals from other decisions of
the tax court under ORS 305.445.
(8)(a)
If, in a proceeding commenced under this section, the court finds that a tax,
fee, charge or assessment is subject to the limits of section 11b, Article XI
of the Oregon Constitution, the court may order such relief as it considers
appropriate, but such relief shall be prospective only.
(b)
If, in a proceeding commenced under this section, the court finds that a use of
the proceeds of bonded indebtedness is not authorized, the tax court may
prohibit the expenditure or proceed in accordance with ORS 305.586.
(9)
Costs of the proceeding may be allowed and apportioned between the parties in
the discretion of the court.
(10)
As used in this section:
(a)
“Association of local government units” means an association, or any other
lawful organization, composed of member local government units organized for
the mutual benefit of such local government units.
(b)
“Consenting member” means a member of an association of local government units
who affirmatively consents, through filing of a consenting certificate with the
tax court, to the commencement of a proceeding under this section.
(c)
“Local government unit” means any unit of local government, including a city,
county, incorporated town or village, school district, any other special
district, or any other municipal or quasi-municipal corporation,
intergovernmental authority created pursuant to ORS 190.010, a district as
defined in ORS 198.010, 198.180 and 198.210 or an urban renewal agency
established under ORS 457.035. [1991 c.459 §27; 1993 c.270 §21; 1999 c.340 §12;
2003 c.195 §22; 2003 c.576 §250; 2005 c.22 §226]
305.591 Court determination that 1990
Measure 5 tax limit is inapplicable; collection of tax; appeal; stay denied.
(1) If a court of competent jurisdiction determines that all or any part of
section 11b, Article XI of the Oregon Constitution does not apply to a tax on
property, the court may order the assessor, tax collector or other appropriate
public official to impose or collect that tax without regard to that portion of
section 11b, Article XI of the Oregon Constitution the court determines to be
inapplicable.
(2)
When so ordered by a court, the assessor, tax collector or other public
official shall take all necessary action to impose or collect the tax in
compliance with the order of the court.
(3)
Appeal of a decision of a court that all or any part of section 11b, Article XI
of the Oregon Constitution does not apply to any tax shall not operate to stay
any order of the court directing a public official to collect the tax without
regard to the provisions of all or part of section 11b, Article XI of the
Oregon Constitution. [1991 c.459 §28]
INTERGOVERNMENTAL TAX RELATIONS
(Federal and Other States)
305.605 Application of tax laws within
federal areas in state. Where not inconsistent with the
Constitution and laws of the United States, notwithstanding any provision of
any other statute of this state, the laws of this state relating to the
imposition and collection of taxes shall apply with respect to any property
located, any sale, use or transaction occurring, any income arising, or any
person residing within any federal area situated within the exterior boundaries
of this state. [Formerly 306.240]
305.610 Reciprocal recognition of tax
liability; actions in other states for Oregon taxes.
(1) The courts of Oregon shall recognize and enforce the liability for taxes
lawfully imposed by the laws of any other state which extends a like comity in
respect of the liability for taxes lawfully imposed by the laws of this state.
The officials of such other state may bring action in the courts of this state
for the collection of such taxes. The certificate of the Secretary of State of
such other state that such officials have the authority to collect the taxes
sought to be collected by such action shall be conclusive proof of that
authority.
(2)
The Attorney General of Oregon, and collection agencies when employed as
provided by ORS 825.508, are empowered to bring action in the courts of other
states to collect taxes legally due the State of Oregon.
(3)
As used in this section, “taxes” includes:
(a)
Tax assessments lawfully made whether they are based upon a return or other
disclosure of the taxpayer, upon the information and belief of the taxing
authority, or otherwise.
(b)
Penalties lawfully imposed pursuant to a taxing statute.
(c)
Interest charges lawfully added to the tax liability which constitutes the
subject of the action.
(4)
The Oregon Tax Court shall not have jurisdiction over actions brought pursuant
to this section. [Formerly 306.250; subsection (4) enacted as 1961 c.533 §54;
1967 c.178 §4]
305.612 Reciprocal offset of tax refunds
in payment of liquidated debt or certain amounts payable; rules.
(1) The Director of the Department of Revenue may enter into an
intergovernmental reciprocal agreement with the United States Financial
Management Service and the Internal Revenue Service for the purpose of engaging
in the offset of federal tax refunds or other federal payments in payment of
liquidated state debt or of amounts payable by a transferee under ORS 311.695
and the offset of state tax refunds or other state payments in payment of
liquidated federal debt.
(2)
The director may pay a fee charged by the federal government for the processing
of an offset request. The fee may be deducted from amounts remitted to the
state by the federal government pursuant to an intergovernmental reciprocal
agreement. The amount of the fee charged by the federal government shall be
added to the debt, interest and penalties or to the amounts payable under ORS
311.695, as applicable, owed by the debtor to the state.
(3)
The Department of Revenue may by rule establish a fee to be charged to the
federal government for the provision of state offset services.
(4)
All moneys received by the department in payment of charges made pursuant to
subsection (3) of this section shall be deposited in a department miscellaneous
receipts account established under ORS 279A.290. [2001 c.28 §3; 2003 c.794 §254;
2009 c.797 §8; 2011 c.476 §1; 2011 c.723 §15]
Note: See
note under 311.666.
305.615 Apportionment of moneys received
from United States in lieu of property taxes. The
Department of Revenue shall apportion annually to the state and counties any
moneys received by the state from the United States, or any agency thereof, as
payments in lieu of ad valorem property taxes. Such moneys shall be apportioned
in the same amounts and to the same governmental divisions as the taxes in lieu
of which the payments are made would be apportioned if they were levied. [Formerly
306.180]
(Local)
305.620 Collection and distribution of
local taxes on income and sales; costs; court review of determinations and
orders; appeals. (1) Any state agency or
department may enter into agreements with any political subdivision of this
state for the collection, enforcement, administration and distribution of local
taxes of the political subdivision imposed upon or measured by gross or net
income, wages or net earnings from self-employment or local general sales and
use taxes.
(2)
The department or agency shall prescribe the rules by which the agreements
entered into under subsection (1) of this section are administered.
(3)
The department or agency shall prescribe the rules by which the taxes described
by subsection (1) of this section are administered, collected, enforced and
distributed.
(4)
A political subdivision may appear as an intervenor at any conference held by
the Department of Revenue or conference, hearing or proceeding held by another
department or agency in connection with a local tax administered by the
department or agency. The political subdivision may be represented by its own
counsel. The department or agency shall adopt rules governing the procedures to
be followed by the political subdivision in making an appearance.
(5)
Costs incurred by the department or agency in the administration, enforcement,
collection and distribution of taxes under the agreements entered into under
subsection (1) of this section shall be first deducted from the taxes collected
before distribution is made to the political subdivision which is a party to
the agreement.
(6)
The Oregon Tax Court shall have exclusive jurisdiction to review determinations
of the Department of Revenue or orders of another department or agency relating
to the collection, enforcement, administration and distribution of local taxes
under agreements entered into under subsection (1) of this section.
(7)
A proceeding for refund or to set aside additional taxes or taxes assessed when
no return was filed may be initiated before the state agency or department.
(8)
An appeal from a determination or an order may be taken by the taxpayer or by
the political subdivision whose taxes are in issue, by filing a complaint with
the clerk of the Oregon Tax Court at its principal office in Salem, Oregon,
within 60 days after the notice of the determination of the Department of
Revenue or the order of the department or agency is sent to the taxpayer or the
political subdivision. The filing of the complaint in the Oregon Tax Court
shall constitute perfection of the appeal. Service of the taxpayer’s complaint
shall be accomplished by the clerk of the tax court by filing a copy of the
complaint with the administrative head of the department or agency and a copy
with the political subdivision. Service of the political subdivision’s
complaint shall be accomplished by the clerk of the tax court by filing a copy
of the complaint with the administrative head of the department or agency and
mailing a copy of the complaint to the taxpayer. The complaint of a taxpayer
shall be entitled in the name of the person filing as plaintiff and the
department or agency as defendant. The complaint of a political subdivision
shall be entitled in the name of the political subdivision as plaintiff and the
taxpayer and the department or agency as defendants. A copy of the order of the
department or agency shall be attached to the complaint. All procedures shall
be in accordance with ORS 305.405 to 305.494. [1967 c.550 §§12,13,14,15; 1969
c.574 §5; 1971 c.261 §1; 1971 c.600 §3; 1973 c.98 §1; 1983 c.749 §4; 1985 c.407
§3; 1995 c.79 §112; 1995 c.650 §62; 1997 c.325 §15; 1999 c.21 §12; 2003 c.621 §78;
2005 c.225 §7; 2005 c.345 §10; 2009 c.33 §7]
305.625 State and political subdivisions
are employers for purpose of withholding city or county income tax.
If the ordinances of any city or county in this state provide for the
collection of an income tax, in whole or in part, by imposing on employers
generally the duty of withholding sums from the compensation of individuals
employed within the boundaries of the city or county and making returns of such
sums to the authorities of such cities or counties, then the State of Oregon or
any political subdivision is considered to be an employer as to its employees
who come within the jurisdictional limits of the ordinance of the city or
county. [1969 c.574 §1]
305.630 Compliance with city or county
income tax ordinance required. The head of
each branch, department or agency of the government of the State of Oregon or a
political subdivision (whether executive, legislative or judicial) shall comply
with requirements of such city or county ordinance in the case of employees of
such branch, department or agency who are subject to such tax and whose regular
place of employment is within the city or county, pursuant to an agreement made
under ORS 305.620. [1969 c.574 §2]
305.635 Rate of withholding to be
designated by city or county; forms. The city or
county shall designate clearly the rate of withholding to be used by the State
of Oregon or political subdivision and shall provide forms acceptable to the
state or political subdivision to be used in reporting and remitting taxes
withheld pursuant to the agreement. [1969 c.574 §3]
305.640 Discrimination among employers
prohibited. Nothing in ORS 305.620 to 305.640
consents to the application of any law that has the effect of imposing more
burdensome requirements on the State of Oregon or a political subdivision than
it imposes on other employers, or that has the effect of subjecting the State
of Oregon or a political subdivision, or any of its officers or employees, to
any penalty or liability by reason of ORS 305.620 to 305.640. [1969 c.574 §4]
305.645 Department of Revenue to provide
services to political subdivisions. If a
political subdivision of this state imposes a tax on or measured by income as
determined under ORS chapter 316, 317 or 318, the Department of Revenue shall
provide to the political subdivision, at the request of the political
subdivision, collection, enforcement, administration and distribution services
for the tax in the manner provided in ORS 305.620. [2007 c.864 §6]
Note:
305.645 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.
MULTISTATE TAX COMPACT
305.655 Multistate Tax Compact.
The Multistate Tax Compact is hereby enacted into law and entered into on
behalf of this state with all other jurisdictions legally joining therein in a
form substantially as follows:
______________________________________________________________________________
ARTICLE I
PURPOSES
The
purposes of this compact are to:
1.
Facilitate proper determination of state and local tax liability of multistate
taxpayers, including the equitable apportionment of tax bases and settlement of
apportionment disputes.
2.
Promote uniformity or compatibility in significant components of tax systems.
3.
Facilitate taxpayer convenience and compliance in the filing of tax returns and
in other phases of tax administration.
4.
Avoid duplicative taxation.
ARTICLE II
DEFINITIONS
As
used in this compact:
1.
“State” means a state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, or any territory or possession of the United
States.
2.
“Subdivision” means any governmental unit or special district of a state.
3.
“Taxpayer” means any corporation, partnership, firm, association, governmental
unit or agency or person acting as a business entity in more than one state.
4.
“Income tax” means a tax imposed on or measured by net income including any tax
imposed on or measured by an amount arrived at by deducting expenses from gross
income, one or more forms of which expenses are not specifically and directly
related to particular transactions.
5.
“Capital stock tax” means a tax measured in any way by the capital of a
corporation considered in its entirety.
6.
“Gross receipts tax” means a tax, other than a sales tax, which is imposed on
or measured by the gross volume of business, in terms of gross receipts or in
other terms, and in the determination of which no deduction is allowed which
would constitute the tax an income tax.
7.
“Sales tax” means a tax imposed with respect to the transfer for a
consideration of ownership, possession or custody of tangible personal property
or the rendering of services measured by the price of the tangible personal
property transferred or services rendered and which is required by state or
local law to be separately stated from the sales price by the seller, or which
is customarily separately stated from the sales price, but does not include a
tax imposed exclusively on the sale of a specifically identified commodity or
article or class of commodities or articles.
8.
“Use tax” means a nonrecurring tax, other than a sales tax, which (a) is
imposed on or with respect to the exercise or enjoyment of any right or power
over tangible personal property incident to the ownership, possession or
custody of that property or the leasing of that property from another including
any consumption, keeping, retention, or other use of tangible personal property
and (b) is complementary to a sales tax.
9.
“Tax” means an income tax, capital stock tax, gross receipts tax, sales tax,
use tax, and any other tax which has a multistate impact, except that the
provisions of Articles III, IV and V of this compact shall apply only to the
taxes specifically designated therein and the provisions of Article IX of this
compact shall apply only in respect to determinations pursuant to Article IV.
ARTICLE III
ELEMENTS OF INCOME
TAX LAWS
1.
:bu.Taxpayer option, state and local taxes.:su. Any taxpayer subject to an
income tax whose income is subject to apportionment and allocation for tax
purposes pursuant to the laws of a party state or pursuant to the laws of
subdivisions in two or more party states may elect to apportion and allocate
his income in the manner provided by the laws of such state or by the laws of
such states and subdivisions without reference to this compact, or may elect to
apportion and allocate in accordance with Article IV. This election for any tax
year may be made in all party states or subdivisions thereof or in any one or
more of the party states or subdivisions thereof without reference to the
election made in the others. For the purposes of this paragraph, taxes imposed
by subdivisions shall be considered separately from state taxes and the
apportionment and allocation also may be applied to the entire tax base. In no
instance wherein Article IV is employed for all subdivisions of a state may the
sum of all apportionments and allocations to subdivisions within a state be
greater than the apportionment and allocation that would be assignable to that
state if the apportionment or allocation were being made with respect to a
state income tax.
2.
:bu.Taxpayer option, short form.:su. Each party state or any subdivision
thereof which imposes an income tax shall provide by law that any taxpayer
required to file a return, whose only activities within the taxing jurisdiction
consist of sales and do not include owning or renting real estate or tangible
personal property, and whose dollar volume of gross sales made during the tax
year within the state or subdivision, as the case may be, is not in excess of
$100,000 may elect to report and pay any tax due on the basis of a percentage
of such volume, and shall adopt rates which shall produce a tax which
reasonably approximates the tax otherwise due. The Multistate Tax Commission,
not more than once in five years, may adjust the $100,000 figure in order to
reflect such changes as may occur in the real value of the dollar, and such
adjusted figure, upon adoption by the commission, shall replace the $100,000
figure specifically provided herein. Each party state and subdivision thereof
may make the same election available to taxpayers additional to those specified
in this paragraph.
3.
:bu.Coverage.:su. Nothing in this Article relates to the reporting or payment
of any tax other than an income tax.
ARTICLE IV
DIVISION OF
INCOME
1.
As used in this Article, unless the context otherwise requires:
(a)
“Business income” means income arising from transactions and activity in the
regular course of the taxpayer’s trade or business and includes income from
tangible and intangible property if the acquisition, management, and
disposition of the property constitute integral parts of the taxpayer’s regular
trade or business operations.
(b)
“Commercial domicile” means the principal place from which the trade or
business of the taxpayer is directed or managed.
(c)
“Compensation” means wages, salaries, commissions and any other form of
remuneration paid to employees for personal services.
(d)
“Financial organization” means any bank, trust company, savings bank,
industrial bank, land bank, safe deposit company, private banker, savings and
loan association, credit union, cooperative bank, small loan company, sales
finance company, investment company, or any type of insurance company.
(e)
“Nonbusiness income” means all income other than business income.
(f)
“Public utility” means any business entity (1) which owns or operates any
plant, equipment, property, franchise, or license for the transmission of
communications, transportation of goods or persons, except by pipe line, or the
production, transmission, sale, delivery, or furnishing of electricity, water
or steam; and (2) whose rates of charges for goods or services have been
established or approved by a federal, state or local government or governmental
agency.
(g)
“Sales” means all gross receipts of the taxpayer not allocated under paragraphs
of this Article.
(h)
“State” means any state of the United States, the District of Columbia, the
Commonwealth of Puerto Rico, any territory or possession of the United States,
and any foreign country or political subdivision thereof.
(i)
“This state” means the state in which the relevant tax return is filed or, in
the case of application of this Article to the apportionment and allocation of
income for local tax purposes, the subdivision or local taxing district in
which the relevant tax return is filed.
2.
Any taxpayer having income from business activity which is taxable both within
and without this state, other than activity as a financial organization or
public utility or the rendering of purely personal services by an individual,
shall allocate and apportion his net income as provided in this Article. If a
taxpayer has income from business activity as a public utility but derives the
greater percentage of his income from activities subject to this Article, the
taxpayer may elect to allocate and apportion his entire net income as provided
in this Article.
3.
For purposes of allocation and apportionment of income under this Article, a
taxpayer is taxable in another state if (1) in that state he is subject to a
net income tax, a franchise tax measured by net income, a franchise tax for the
privilege of doing business, or a corporate stock tax, or (2) that state has
jurisdiction to subject the taxpayer to a net income tax regardless of whether,
in fact, the state does or does not.
4.
Rents and royalties from real or tangible personal property, capital gains,
interest, dividends or patent or copyright royalties, to the extent that they
constitute nonbusiness income, shall be allocated as provided in paragraphs 5
through 8 of this Article.
5.
(a) Net rents and royalties from real property located in this state are
allocable to this state.
(b)
Net rents and royalties from tangible personal property are allocable to this
state: (1) if and to the extent that the property is utilized in this state, or
(2) in their entirety if the taxpayer’s commercial domicile is in this state
and the taxpayer is not organized under the laws of or taxable in the state in
which the property is utilized.
(c)
The extent of utilization of tangible personal property in a state is
determined by multiplying the rents and royalties by a fraction, the numerator
of which is the number of days of physical location of the property in the
state during the rental or royalty period in the taxable year and the
denominator of which is the number of days of physical location of the property
everywhere during all rental of royalty periods in the taxable year. If the
physical location of the property during the rental or royalty period is
unknown or unascertainable by the taxpayer, tangible personal property is
utilized in the state in which the property was located at the time the rental
or royalty payer obtained possession.
6.
(a) Capital gains and losses from sales of real property located in this state
are allocable to this state.
(b)
Capital gains and losses from sales of tangible personal property are allocable
to this state if (1) the property had a situs in this state at the time of the
sale, or (2) the taxpayer’s commercial domicile is in this state and the
taxpayer is not taxable in the state in which the property had a situs.
(c)
Except in the case of the sale of a partnership interest, capital gains and
losses from sales of intangible personal property are allocable to this state
if the taxpayer’s commercial domicile is in this state.
(d)
Gain or loss from the sale of a partnership interest is allocable to this state
in the ratio of the original cost of partnership tangible property in the state
to the original cost of partnership tangible property everywhere, determined at
the time of the sale. In the event that more than 50 percent of the value of a
partnership’s assets consists of intangibles, gain or loss from the sale of the
partnership interest shall be allocated to this state in accordance with the
sales factor of the partnership for its first full tax year immediately
preceding its tax year during which the partnership interest was sold.
7.
Interest and dividends are allocable to this state if the taxpayer’s commercial
domicile is in this state.
8.
(a) Patent and copyright royalties are allocable to this state: (1) if and to
the extent that the patent or copyright is utilized by the payer in this state,
or (2) if and to the extent that the patent copyright is utilized by the payer
in a state in which the taxpayer is not taxable and the taxpayer’s commercial
domicile is in this state.
(b)
A patent is utilized in a state to the extent that it is employed in
production, fabrication, manufacturing, or other processing in the state or to
the extent that a patented product is produced in the state. If the basis of
receipts from patent royalties does not permit allocation to states or if the
accounting procedures do not reflect states of utilization, the patent is
utilized in the state in which the taxpayer’s commercial domicile is located.
(c)
A copyright is utilized in a state to the extent that printing or other
publication originates in the state. If the basis of receipts from copyright
royalties does not permit allocation to states or if the accounting procedures
do not reflect states of utilization, the copyright is utilized in the state in
which the taxpayer’s commercial domicile is located.
9.
All business income shall be apportioned to this state by multiplying the
income by a fraction, the numerator of which is the property factor plus the
payroll factor plus the sales factor, and the denominator of which is three.
10.
The property factor is a fraction, the numerator of which is the average value
of the taxpayer’s real and tangible personal property owned or rented and used
in this state during the tax period and the denominator of which is the average
value of all the taxpayer’s real and tangible personal property owned or rented
and used during the tax period.
11.
Property owned by the taxpayer is valued at its original cost. Property rented
by the taxpayer is valued at eight times the net annual rental rate. Net annual
rental rate is the annual rental rate paid by the taxpayer less any annual
rental rate received by the taxpayer from subrentals.
12.
The average value of property shall be determined by averaging the values at
the beginning and ending of the tax period but the tax administrator may
require the averaging of monthly values during the tax period if reasonably
required to reflect properly the average value of the taxpayer’s property.
13.
The payroll factor is a fraction, the numerator of which is the total amount
paid in this state during the tax period by the taxpayer for compensation and
the denominator of which is the total compensation paid everywhere during the
tax period.
14.
Compensation is paid in this state if:
(a)
the individual’s service is performed entirely within the state;
(b)
the individual’s service is performed both within and without the state, but
the service performed without the state is incidental to the individual’s
service within the state; or
(c)
some of the service is performed in the state and (1) the base of operations
or, if there is no base of operations, the place from which the service is
directed or controlled is in the state, or (2) the base of operations or the
place from which the service is directed or controlled is not in any state in
which some part of the service is performed, but the individual’s residence is
in this state.
15.
The sales factor is a fraction, the numerator of which is the total sales of
the taxpayer in this state during the tax period, and the denominator of which
is the total sales of the taxpayer everywhere during the tax period.
16.
Sales of tangible personal property are in this state if:
(a)
the property is delivered or shipped to a purchaser, other than the United
States Government, within this state regardless of the f.o.b. point or other
conditions of the sale; or
(b)
the property is shipped from an office, store, warehouse, factory, or other
place of storage in this state and (1) the purchaser is the United States Government
or (2) the taxpayer is not taxable in the state of the purchaser.
17.
Sales, other than sales of tangible personal property, are in this state if:
(a)
the income-producing activity is performed in this state; or
(b)
the income-producing activity is performed both in and outside this state and a
greater proportion of the income-producing activity is performed in this state
than in any other state, based on costs of performance.
18.
If the allocation and apportionment provisions of this Article do not fairly
represent the extent of the taxpayer’s business activity in this state, the
taxpayer may petition for or the tax administrator may require, in respect to
all or any part of the taxpayer’s business activity, if reasonable:
(a)
separate accounting;
(b)
the exclusion of any one or more of the factors;
(c)
the inclusion of one or more additional factors which will fairly represent the
taxpayer’s business activity in this state; or
(d)
the employment of any other method to effectuate an equitable allocation and
apportionment of the taxpayer’s income.
ARTICLE V
ELEMENTS OF
SALES AND USE TAX LAWS
1.
:bu.Tax credit.:su. Each purchaser liable for a use tax on tangible personal
property shall be entitled to full credit for the combined amount or amounts of
legally imposed sales or use taxes paid by him with respect to the same
property to another state and any subdivision thereof. The credit shall be
applied first against the amount of any use tax due the state, and any unused
portion of the credit shall then be applied against the amount of any use tax
due a subdivision.
2.
:bu.Exemption certificates, vendors may rely.:su. Whenever a vendor receives
and accepts in good faith from a purchaser a resale or other exemption
certificate or other written evidence of exemption authorized by the
appropriate state or subdivision taxing authority, the vendor shall be relieved
of liability for a sales or use tax with respect to the transaction.
ARTICLE VI
THE COMMISSION
1.
:bu.Organization and management.:su. (a) The Multistate Tax Commission is
hereby established. It shall be composed of one “member” from each party state
who shall be the head of the state agency charged with the administration of
the types of taxes to which this compact applies. If there is more than one
such agency the state shall provide by law for the selection of the commission
member from the heads of the relevant agencies. State law may provide that a
member of the commission be represented by an alternate but only if there is on
file with the commission written notification of the designation and identity
of the alternate. The Attorney General of each party state or his designee, or
other counsel if the laws of the party state specifically provide, shall be
entitled to attend the meetings of the commission, but shall not vote. Such
Attorneys General, designees or other counsel shall receive all notices of
meetings required under paragraph 1 (e) of this Article.
(b)
Each party state shall provide by law for the selection of representatives from
its subdivisions affected by this compact to consult with the commission member
from that state.
(c)
Each member shall be entitled to one vote. The commission shall not act unless
a majority of the members are present, and no action shall be binding unless
approved by a majority of the total number of members.
(d)
The commission shall adopt an official seal to be used as it may provide.
(e)
The commission shall hold an annual meeting and such other regular meetings as
its bylaws may provide and such special meetings as its Executive Committee may
determine. The commission bylaws shall specify the dates of the annual and any
other regular meetings, and shall provide for the giving of notice of annual,
regular and special meetings. Notices of special meetings shall include the
reasons therefor and an agenda of the items to be considered.
(f)
The commission shall elect annually, from among its members, a Chairman, a Vice
Chairman and a Treasurer. The commission shall appoint an Executive Director
who shall serve at its pleasure, and it shall fix his duties and compensation.
The Executive Director shall be secretary of the commission. The commission
shall make provision for the bonding of such of its officers and employees as
it may deem appropriate.
(g)
Irrespective of the civil service, personnel or other merit system laws of any
party state, the Executive Director shall appoint or discharge such personnel
as may be necessary for the performance of the functions of the commission and
shall fix their duties and compensation. The commission bylaws shall provide
for personnel policies and programs.
(h)
The commission may borrow, accept or contract for the services of personnel
from any state, the United States or any other governmental entity.
(i)
The commission may accept for any of its purposes and functions any and all
donations and grants of money, equipment, supplies, materials and services,
conditional or otherwise, from any governmental entity, and may utilize and
dispose of the same.
(j)
The commission may establish one or more offices for the transacting of its
business.
(k)
The commission shall adopt bylaws for the conduct of its business. The
commission shall publish its bylaws in convenient form, and shall file a copy
of the bylaws and any amendments thereto with the appropriate agency or officer
in each of the party states.
(L)
The commission annually shall make to the Governor and legislature of each
party state a report covering its activities for the preceding year. Any
donation or grant accepted by the commission or services borrowed shall be
reported in the annual report of the commission, and shall include the nature,
amount and conditions, if any, of the donation, gift, grant or services
borrowed and the identity of the donor or lender. The commission may make
additional reports as it may deem desirable.
2.
:bu.Committees.:su. (a) To assist in the conduct of its business when the full
commission is not meeting, the commission shall have an Executive Committee of
seven members, including the Chairman, Vice Chairman, Treasurer and four other
members elected annually by the commission. The Executive Committee, subject to
the provisions of this compact and consistent with the policies of the
commission, shall function as provided in the bylaws of the commission.
(b)
The commission may establish advisory and technical committees, membership on
which may include private persons and public officials, in furthering any of
its activities. Such committees may consider any matter of concern to the
commission, including problems of special interest to any party state and
problems dealing with particular types of taxes.
(c)
The commission may establish such additional committees as its bylaws may
provide.
3.
:bu.Powers.:su. In addition to powers conferred elsewhere in this compact, the
commission shall have power to:
(a)
Study state and local tax systems and particular types of state and local
taxes.
(b)
Develop and recommend proposals for an increase in uniformity or compatibility
of state and local tax laws with a view toward encouraging the simplification
and improvement of state and local tax law and administration.
(c)
Compile and publish information as in its judgment would assist the party
states in implementation of the compact and taxpayers in complying with state
and local tax laws.
(d)
Do all things necessary and incidental to the administration of its functions
pursuant to this compact.
4.
:bu.Finance.:su. (a) The commission shall submit to the Governor or designated
officer or officers of each party state a budget of its estimated expenditures
for such period as may be required by the laws of that state for presentation
to the legislature thereof.
(b)
Each of the commission’s budgets of estimated expenditures shall contain
specific recommendations of the amounts to be appropriated by each of the party
states. The total amount of appropriations requested under any such budget
shall be apportioned among the party states as follows: one-tenth in equal
shares; and the remainder in proportion to the amount of revenue collected by
each party state and its subdivisions from income taxes, capital stock taxes,
gross receipts taxes, sales and use taxes. In determining such amounts, the
commission shall employ such available public sources of information as, in its
judgment, present the most equitable and accurate comparisons among the party
states. Each of the commission’s budgets of estimated expenditures and requests
for appropriations shall indicate the sources used in obtaining information employed
in applying the formula contained in this paragraph.
(c)
The commission shall not pledge the credit of any party state. The commission
may meet any of its obligations in whole or in part with funds available to it
under paragraph 1 (i) of this Article: provided that the commission takes
specific action setting aside such funds prior to incurring any obligation to
be met in whole or in part in such manner. Except where the commission makes
use of funds available to it under paragraph 1 (i), the commission shall not
incur any obligation prior to the allotment of funds by the party states
adequate to meet the same.
(d)
The commission shall keep accurate accounts of all receipts and disbursements.
The receipts and disbursements of the commission shall be subject to the audit
and accounting procedures established under its bylaws. All receipts and
disbursements of funds handled by the commission shall be audited yearly by a
certified or licensed public accountant and the report of the audit shall be
included in and become part of the annual report of the commission.
(e)
The accounts of the commission shall be open at any reasonable time for
inspection by duly constituted officers of the party states and by any persons
authorized by the commission.
(f)
Nothing contained in this Article shall be construed to prevent commission
compliance with laws relating to audit or inspection of accounts by or on
behalf of any government contributing to the support of the commission.
ARTICLE VII
UNIFORM
REGULATIONS AND FORMS
1.
Whenever any two or more party states, or subdivisions of party states, have
uniform or similar provisions of law relating to an income tax, capital stock
tax, gross receipts tax, sales or use tax, the commission may adopt uniform
regulations for any phase of the administration of such law, including
assertion of jurisdiction to tax, or prescribing uniform tax forms. The
commission may also act with respect to the provisions of Article IV of this
compact.
2.
Prior to the adoption of any regulation, the commission shall:
(a)
As provided in its bylaws, hold at least one public hearing on due notice to
all affected party states and subdivisions thereof and to all taxpayers and
other persons who have made timely request of the commission for advance notice
of its regulation-making proceedings.
(b)
Afford all affected party states and subdivisions and interested persons an
opportunity to submit relevant written data and views, which shall be
considered fully by the commission.
3.
The commission shall submit any regulations adopted by it to the appropriate
officials of all party states and subdivisions to which they might apply. Each
such state and subdivision shall consider any such regulation for adoption in
accordance with its own laws and procedures.
ARTICLE VIII
INTERSTATE
AUDITS
1.
This Article shall be in force only in those party states that specifically
provide therefor by statute.
2.
Any party state or subdivision thereof desiring to make or participate in an
audit of any accounts, books, papers, records or other documents may request
the commission to perform the audit on its behalf. In responding to the
request, the commission shall have access to and may examine, at any reasonable
time, such accounts, books, papers, records, and other documents and any
relevant property or stock of merchandise. The commission may enter into
agreements with party states or their subdivisions for assistance in
performance of the audit. The commission shall make charges, to be paid by the
state or local government or governments for which it performs the service, for
any audits performed by it in order to reimburse itself for the actual costs
incurred in making the audit.
3.
The commission may require the attendance of any person within the state where
it is conducting an audit or part thereof at a time and place fixed by it
within such state for the purpose of giving testimony with respect to any
account, book, paper, document, other record, property or stock of merchandise
being examined in connection with the audit. If the person is not within the
jurisdiction, he may be required to attend for such purpose at any time and
place fixed by the commission within the state of which he is a resident:
provided that such state has adopted this Article.
4.
The commission may apply to any court having power to issue compulsory process
for orders in aid of its powers and responsibilities pursuant to this Article
and any and all such courts shall have jurisdiction to issue such orders.
Failure of any person to obey any such order shall be punishable as contempt of
the issuing court. If the party or subject matter on account of which the
commission seeks an order is within the jurisdiction of the court to which
application is made, such application may be to a court in the state or
subdivision on behalf of which the audit is being made or a court in the state
in which the object of the order being sought is situated. The provisions of
this paragraph apply only to courts in a state that has adopted this Article.
5.
The commission may decline to perform any audit requested if it finds that its
available personnel or other resources are insufficient for the purpose or
that, in the terms requested, the audit is impracticable of satisfactory
performance. If the commission, on the basis of its experience, has reason to
believe that an audit of a particular taxpayer, either at a particular time or
on a particular schedule, would be of interest to a number of party states or
their subdivisions, it may offer to make the audit or audits, the offer to be
contingent on sufficient participation therein as determined by the commission.
6.
Information obtained by any audit pursuant to this Article shall be
confidential and available only for tax purposes to party states, their
subdivisions or the United States. Availability of information shall be in
accordance with the laws of the states or subdivisions on whose account the
commission performs the audit, and only through the appropriate agencies or
officers of such states or subdivisions. Nothing in this Article shall be
construed to require any taxpayer to keep records for any period not otherwise
required by law.
7.
Other arrangements made or authorized pursuant to law for cooperative audit by
or on behalf of the party states or any of their subdivisions are not
superseded or invalidated by this Article.
8.
In no event shall the commission make any charge against a taxpayer for an
audit.
9.
As used in this Article, “tax,” in addition to the meaning ascribed to it in
Article II, means any tax or license fee imposed in whole or in part for
revenue purposes.
ARTICLE IX
ARBITRATION
1.
Whenever the commission finds a need for settling disputes concerning
apportionment and allocations by arbitration, it may adopt a regulation placing
this Article in effect, notwithstanding the provisions of Article VII.
2.
The commission shall select and maintain an arbitration panel composed of
officers and employees of state and local governments and private persons who
shall be knowledgeable and experienced in matters of tax law and
administration.
3.
Whenever a taxpayer who has elected to employ Article IV, or whenever the laws
of the party state or subdivision thereof are substantially identical with the
relevant provisions of Article IV, the taxpayer, by written notice to the
commission and to each party state or subdivision thereof that would be
affected, may secure arbitration of an apportionment or allocation, if he is
dissatisfied with the final administrative determination of the tax agency of the
state or subdivision with respect thereto on the ground that it would subject
him to double or multiple taxation by two or more party states or subdivisions
thereof. Each party state and subdivision thereof hereby consents to the
arbitration as provided herein, and agrees to be bound thereby.
4.
The arbitration board shall be composed of one person selected by the taxpayer,
one by the agency or agencies involved, and one member of the commission’s
arbitration panel. If the agencies involved are unable to agree on the person
to be selected by them, such person shall be selected by lot from the total
membership of the arbitration panel. The two persons selected for the board in
the manner provided by the foregoing provisions of this paragraph shall jointly
select the third member of the board. If they are unable to agree on the
selection, the third member shall be selected by lot from among the total
membership of the arbitration panel. No member of a board selected by lot shall
be qualified to serve if he is an officer or employee or is otherwise
affiliated with any party to the arbitration proceeding. Residence within the
jurisdiction of a party to the arbitration proceeding shall not constitute
affiliation within the meaning of this paragraph.
5.
The board may sit in any state or subdivision party to the proceeding, in the
state of the taxpayer’s incorporation, residence or domicile, in any state
where the taxpayer does business, or in any place that it finds most
appropriate for gaining access to evidence relevant to the matter before it.
6.
The board shall give due notice of the times and places of its hearings. The
parties shall be entitled to be heard, to present evidence, and to examine and
cross-examine witnesses. The board shall act by majority vote.
7.
The board shall have power to administer oaths, take testimony, subpoena and
require the attendance of witnesses and the production of accounts, books,
papers, records, and other documents, and issue commissions to take testimony.
Subpoenas may be signed by any member of the board. In case of failure to obey
a subpoena, and upon application by the board, any judge of a court of
competent jurisdiction of the state in which the board is sitting or in which
the person to whom the subpoena is directed may be found may make an order
requiring compliance with the subpoena, and the court may punish failure to
obey the order as a contempt. The provisions of this paragraph apply only in
states that have adopted this Article.
8.
Unless the parties otherwise agree the expenses and other costs of the
arbitration shall be assessed and allocated among the parties by the board in
such manner as it may determine. The commission shall fix a schedule of
compensation for members of arbitration boards and of other allowable expenses
and costs. No officer or employee of a state or local government who serves as
a member of a board shall be entitled to compensation therefor unless he is
required on account of his service to forego the regular compensation attaching
to his public employment, but any such board member shall be entitled to
expenses.
9.
The board shall determine the disputed apportionment or allocation and any
matters necessary thereto. The determinations of the board shall be final for
purposes of making the apportionment or allocation, but for no other purpose.
10.
The board shall file with the commission and with each tax agency represented
in the proceeding: the determination of the board; the board’s written
statement of its reasons therefor; the record of the board’s proceedings; and
any other documents required by the arbitration rules of the commission to be
filed.
11.
The commission shall publish the determinations of boards together with the
statements of the reasons therefor.
12.
The commission shall adopt and publish rules of procedure and practice and
shall file a copy of such rules and of any amendment thereto with the
appropriate agency or officer in each of the party states.
13.
Nothing contained herein shall prevent at any time a written compromise of any
matter or matters in dispute, if otherwise lawful, by the parties to the
arbitration proceeding.
ARTICLE X
ENTRY INTO
FORCE AND WITHDRAWAL
1.
This compact shall enter into force when enacted into law by any seven states.
Thereafter, this compact shall become effective as to any other state upon its
enactment thereof. The commission shall arrange for notification of all party
states whenever there is a new enactment of the compact.
2.
Any party state may withdraw from this compact by enacting a statute repealing
the same. No withdrawal shall affect any liability already incurred by or
chargeable to a party state prior to the time of such withdrawal.
3.
No proceeding commenced before an arbitration board prior to the withdrawal of
a state and to which the withdrawing state or any subdivision thereof is a
party shall be discontinued or terminated by the withdrawal, nor shall the
board thereby lose jurisdiction over any of the parties to the proceeding
necessary to make a binding determination therein.
ARTICLE XI
EFFECT ON
OTHER LAWS AND JURISDICTION
Nothing
in this compact shall be construed to:
(a)
Affect the power of any state or subdivision thereof to fix rates of taxation,
except that a party state shall be obligated to implement Article III 2 of this
compact.
(b)
Apply to any tax or fixed fee imposed for the registration of a motor vehicle
or any tax on motor fuel, other than a sales tax: provided that the definition
of “tax” in Article VIII 9 may apply for the purposes of that Article and the
commission’s powers of study and recommendation pursuant to Article VI 3 may
apply.
(c)
Withdraw or limit the jurisdiction of any state or local court or
administrative officer or body with respect to any person, corporation or other
entity or subject matter, except to the extent that such jurisdiction is
expressly conferred by or pursuant to this compact upon another agency or body.
(d)
Supersede or limit the jurisdiction of any court of the United States.
ARTICLE XII
CONSTRUCTION
AND SEVERABILITY
This
compact shall be liberally construed so as to effectuate the purposes thereof.
The provisions of this compact shall be severable and if any phrase, clause,
sentence or provision of this compact is declared to be contrary to the
constitution of any state or of the United States or the applicability thereof
to any government, agency, person or circumstance is held invalid, the validity
of the remainder of this compact and the applicability thereof to any
government, agency, person or circumstance shall not be affected thereby. If
this compact shall be held contrary to the constitution of any state
participating therein, the compact shall remain in full force and effect as to
the remaining party states and in full force and effect as to the state affected
as to all severable matters.
______________________________________________________________________________
[1967 c.242 §1; 1989 c.625 §75]
305.660 Director of department to represent
state; alternate. The Director of the Department
of Revenue shall constitute the member of the Multistate Tax Commission who
shall represent Oregon on such multistate commission. If, at any time and for
any reason, the director is unable to carry out any duty or activity required
of a member of the Multistate Tax Commission, the director shall be represented
by an alternate appointed by the director. The director shall at all times
maintain on file with the Multistate Tax Commission written notification of the
designation and identity of the alternate. [1967 c.242 §3; 1969 c.520 §28]
305.665 Appointment of consultants from
political subdivisions imposing taxes having multistate impact.
The Governor of Oregon shall appoint one person from the City of Portland, and
from time to time one person from any other municipality or political
subdivision imposing any tax defined in Article II of the Multistate Tax
Compact, to consult regularly with the Director of the Department of Revenue of
Oregon, or the alternate of the director, in accordance with Article VI,
section 1 (b) of the compact. [1967 c.242 §4]
305.670 [1967
c.242 §5; repealed by 1979 c.691 §7]
305.675 Application of compact provisions
relating to interstate audits. Article VIII
of the Multistate Tax Compact relating to interaudits shall be in force in and
with respect to this state. [1967 c.242 §6]
305.676 Mediation and arbitration laws not
applicable to Multistate Tax Commission processes.
Any alternative dispute resolution process undertaken under the authority of
the Multistate Tax Commission need not comply with and is not subject to ORS
chapter 36. [1999 c.224 §6]
305.685 Multistate Tax Commission
Revolving Account. (1) There is created in the
General Fund of the State Treasury the Multistate Tax Commission Revolving
Account. Notwithstanding any other law, all moneys received by the Department
of Revenue as a result of audits performed by the Multistate Tax Commission
shall be deposited in the Multistate Tax Commission Revolving Account and are
continuously appropriated to the Department of Revenue for expenses of the
Multistate Tax Commission. As of June 30 of each year, all moneys in excess of
$150,000 in this account shall be forwarded to the State Treasurer for deposit
as miscellaneous revenues of the General Fund of the State of Oregon.
(2)
The Department of Revenue may transfer $5,000 from the funds appropriated in
section 1, chapter 187, Oregon Laws 1975, to the Multistate Tax Commission
Revolving Account. Such funds are continuously appropriated for reimbursement
to the Multistate Tax Commission for out-of-state corporation audits made for
the State of Oregon. [1975 c.187 §4; 1993 c.726 §5; 2001 c.28 §1; 2005 c.94 §24]
CHARITABLE CHECKOFF PROGRAM
305.690 Definitions for ORS 305.690 to
305.753. As used in ORS 305.690 to 305.753,
unless the context otherwise requires:
(1)
“Biennial years” means the two income tax years of individual taxpayers that
begin in the two calendar years immediately following the calendar year in
which a list is certified under ORS 305.715.
(2)
“Commission” means the Oregon Charitable Checkoff Commission.
(3)
“Department” means the Department of Revenue.
(4)
“Eligibility roster” means a list, prepared under ORS 305.715 and maintained by
the commission in chronological order based on the date of form listing or date
of eligibility determination, whichever is later, of charitable and
governmental entities seeking inclusion on the Oregon individual income tax
return forms.
(5)
“Form listed” or “form listing” means being listed on the Oregon individual
income tax return form.
(6)
“Instruction listing” means being listed on the Department of Revenue
instructions for tax return checkoff contribution.
(7)
“Internal Revenue Code” means the federal Internal Revenue Code as amended and
in effect on December 31, 2010. [1989 c.987 §2; 1993 c.726 §6; 1995 c.556 §32;
1997 c.839 §43; 1999 c.90 §30; 2001 c.660 §25; 2003 c.77 §3; 2005 c.832 §15;
2007 c.614 §3; 2007 c.822 §1; 2008 c.45 §3; 2009 c.5 §13; 2009 c.909 §13; 2010
c.82 §13; 2011 c.7 §13]
305.695 Oregon Charitable Checkoff Commission;
qualifications; term; compensation and expenses.
(1) There is created the Oregon Charitable Checkoff Commission, consisting of
five voting members appointed by the Governor and as nonvoting members, one
Representative appointed by the Speaker of the House of Representatives and one
Senator appointed by the President of the Senate. One appointment of a voting
member shall be based on recommendation of the Speaker of the House of
Representatives and one appointment shall be made based on recommendation of
the President of the Senate.
(2)
The term of office of each voting member is four years, but a member serves at
the pleasure of the Governor. The term of office of a nonvoting member is two
years. Before the expiration of the term of a voting member, the Governor shall
appoint a successor whose term begins on January 1 next following. A member is
eligible for reappointment. If there is a vacancy in the voting membership for
any cause, the Governor shall make an appointment to become immediately effective
for the unexpired term. The Speaker and President, respectively, shall make any
appointment to fill a vacancy in the nonvoting membership.
(3)
Individuals appointed members of the commission shall be citizens of Oregon
well qualified by experience to make policy and recommendations in areas of
concern to the commission and otherwise to perform the duties of the office.
Members of the commission shall be diversified in their charitable interests.
At the time of appointment, the voting members shall not have any direct or
indirect financial interest in any checkoff proposal currently in law or under
consideration by the commission. If a conflict arises after a member’s
appointment, the member shall declare the conflict and abstain from
deliberations and voting on the proposal.
(4)
A voting member of the commission is entitled to compensation and expenses as
provided in ORS 292.495. The nonvoting legislative members shall be entitled to
compensation and expenses under ORS 171.072. [1989 c.987 §3]
305.700 Officers; meetings; quorum; director
as nonvoting member. (1) The Oregon Charitable
Checkoff Commission shall select from its members a chairperson, a vice
chairperson and other officers as necessary. The chairperson or vice
chairperson shall serve until the expiration of the term of the chairperson or
vice chairperson as a member of the commission, or until the chairperson or
vice chairperson resigns or is removed in accordance with subsection (5) of
this section.
(2)
The commission shall meet at least once in every even-numbered calendar year at
a place, day and hour determined by the commission. The commission also may
meet at other times and places specified by the call of the chairperson or of a
majority of the members of the commission. Regular and special meetings of the
commission may be convened upon notice in the manner required by ORS 192.640.
(3)
A majority of the members of the commission constitute a quorum for the
transaction of business.
(4)
In addition to the seven members of the commission, the Director of the
Department of Revenue shall be a nonvoting, ex officio member. The director
shall not be entitled to compensation and expenses as provided under ORS
292.495.
(5)
If the chairperson or vice chairperson resigns or is removed from office, a new
chairperson or vice chairperson shall be elected by the commission. Until a new
chairperson is elected, the vice chairperson shall act as chairperson.
(6)
The commission by a three-fifths vote of the members may declare the office of
chairperson or vice chairperson vacant if the chairperson or vice chairperson
is unavailable or otherwise unable to perform the duties of the office
satisfactorily. [1989 c.987 §§5,7]
305.705 Duties of chairperson.
(1) The chairperson shall be the chief executive officer of the Oregon
Charitable Checkoff Commission. The chairperson shall be responsible for the
expenditure of all commission funds and shall sign all vouchers for obligations
incurred or for expenditures authorized by the commission.
(2)
The chairperson, on behalf of the commission, shall execute all agreements,
contracts or other documents entered into or approved by the commission.
(3)
Subject to any applicable provisions of the State Personnel Relations Law and
the approval of the commission, the chairperson may employ or remove executive,
technical and expert assistants and other employees as needed and fix their
compensation. However, executive, technical and expert assistants shall be in
the unclassified service for purposes of the State Personnel Relations Law.
(4)
The vice chairperson shall perform the duties assigned by the chairperson and,
in accordance with the rules of the commission, shall perform the duties and
have the powers of the chairperson when the chairperson is temporarily unable
to perform the duties of the chairperson. [1989 c.987 §6]
305.710 Notice of availability of space in
tax return for checkoffs; determination of entities eligible for checkoff.
(1) The Department of Revenue shall notify the Oregon Charitable Checkoff
Commission of the number of lines available for the material described in ORS
305.745 (2) without adding a page to the various individual tax forms for
full-year residents, nonresidents and part-year residents. The department shall
provide lines on the form to permit legible form listing of at least 12
entities, if possible, but may provide fewer lines if there is insufficient
space on the form. The commission shall limit the number of entities to be
listed on the form to conform to the department’s notice unless it determines
that the number of eligible entities justifies adding a page to the form.
(2)
Any new entity added to the list must, in the judgment of the commission, have
a high probability of meeting the requirement in ORS 305.720 (5). [1989 c.987 §7a;
2007 c.822 §2]
305.715 Determination of eligibility;
certification of entities to be listed on tax return.
(1)(a) The Oregon Charitable Checkoff Commission shall determine if a
charitable or governmental entity is qualified under ORS 305.720, for the biennial
years, for listing on the Oregon individual income tax return to receive
contributions by means of checkoff, as described under and subject to ORS
305.710 and 305.745.
(b)
Upon determination, pursuant to an initial application, that an entity qualifies
for inclusion on the Oregon individual income tax return forms to receive
contributions by means of checkoff, the commission, subject to ORS 305.723,
shall cause the name of the entity to be included on the eligibility roster
prepared under this section.
(c)
If the commission determines that the entity is not qualified to be included on
the eligibility roster, the commission shall give notice in the manner provided
in ORS 183.415, and ORS 305.740 (3) shall apply.
(2)
The commission shall certify in each even-numbered calendar year to the
Department of Revenue a list of at least 12 charitable and governmental
entities to be listed, if possible, on the Oregon individual income tax return
to receive contributions by means of checkoff for the biennial years indicated
in the certification, as described in and subject to ORS 305.710 and 305.745. [1989
c.987 §8; 2007 c.822 §3]
305.720 Qualification for entity for contributions
by checkoff. Subject to ORS 305.710, 305.723 and
305.745, an entity qualifies for listing on the eligibility roster for form
listing to receive contributions by means of checkoff if:
(1)
The entity supports private charitable causes or engages in public activities
that are consistent with policies and programs of the state and:
(a)
Checkoff resources are used to augment existing programs or provide new funding
to related activities of proven value;
(b)
Checkoff funds are not to be used to meet the administrative expenses of the
entity;
(c)
Programs funded by checkoff resources result in substantial and direct benefits
to the human and natural resources of the state that the Oregon Charitable
Checkoff Commission determines are unlikely to occur under existing public and
private programs; and
(d)
After checkoff resources are received by the entity, the entity shows a pattern
over several years of increasing its total revenues from other than checkoff
sources or reaches the level where no more than 50 percent of its revenues are
from checkoff sources.
(2)
The entity is qualified to receive contributions that are tax deductible under
the following:
(a)
Section 170 of the Internal Revenue Code (relating to contributions and gifts
to charitable and governmental entities).
(b)
Section 501(k) of the Internal Revenue Code (relating to contributions to
certain organizations providing child care).
(c)
Section 7871 of the Internal Revenue Code (relating to contributions to Indian
tribal governments).
(d)
Any other federal law allowing a deduction from federal individual income tax
for charitable contributions to an entity classified by rule of the Department
of Revenue as being an entity belonging to the general class described in
paragraphs (a) to (c) of this subsection.
(3)
The entity makes application for listing within the time and in the manner
prescribed by ORS 305.725.
(4)
The entity files a financial report, and other information, with the commission
as described under ORS 305.730.
(5)
The entity received $25,000 or more in checkoff contributions in at least one
of the two tax years immediately preceding the tax year for which it is to be
listed on the Oregon income tax return. This subsection does not apply if the
entity has not been included on the Oregon personal income tax return for each
of the two tax years immediately preceding the tax year for which determination
for purposes of this subsection is being made. [1989 c.987 §9; 2007 c.822 §5;
2009 c.33 §8]
305.723 Eligibility roster.
(1) In the event that one or more entities are certified and placed on the
eligibility roster under ORS 305.715 but not all entities can be included on
the Oregon individual income tax return forms because of space limitations, the
Oregon Charitable Checkoff Commission shall, prior to determining the entities
to be listed on the eligibility roster for the ensuing year, identify those
entities that have been included on the tax forms for two or more years.
(2)
To the extent there are entities on the eligibility roster that have not been
form listed, the commission shall direct the Department of Revenue to remove
from the tax forms for the next year those entities that have been included on
the tax forms for two or more years.
(3)(a)
The identified entities shall be removed from inclusion on the tax forms based
on the number of calendar years for which the entities have been included on
the forms, with entities that have been included on the forms for the greatest
number of years being removed first.
(b)
If identified entities have been included on the tax forms for an equal number
of years and space limitations require the removal of some, but not all, of the
entities identified in subsection (1) of this section, in order to permit
inclusion of entities from the eligibility roster on the tax forms for the next
year, the commission shall direct the department to remove the entity or
entities garnering the smallest average amount of donations for the years that
the entity or entities appeared on the tax forms.
(4)
If an entity removed from form listing under subsection (3) of this section
continues to meet the eligibility requirements under ORS 305.720, an entity
removed from the charitable checkoff portion of the tax forms shall be placed
at the end of the eligibility roster for form listing in succeeding tax years
and shall be considered to be an entity that has not been form listed for
purposes of subsection (2) of this section. [2007 c.822 §4]
305.725 Application of entity.
(1) Each entity desiring to receive contributions by means of checkoff on the
Oregon individual income tax return shall make initial application to the
Oregon Charitable Checkoff Commission not later than July 1 of each
even-numbered calendar year. The application shall contain or be accompanied
by:
(a)
The name of the entity.
(b)
The address of the principal place of business of the entity and the name of
the person, officer or employee to whom the moneys contributed by means of
checkoff are to be remitted pursuant to ORS 305.747.
(c)
The names and personal addresses of the principals of the entity.
(d)
The name and personal address of a person who is a principal in the
solicitation activities for the entity.
(e)
Evidence satisfactory to the commission that contributions to the entity
qualify for tax deduction under section 170 of the Internal Revenue Code or
other law listed under ORS 305.720 (2) or, in the case of an application for
instruction listing, ORS 305.727. This evidence may, but need not, take the
form of an Internal Revenue Service ruling, a listing of the entity on the list
published by the Internal Revenue Service listing organizations qualified to
receive tax deductible contributions or an answer to an inquiry as to the
status of the entity addressed to the Commissioner of Internal Revenue.
(f)
If applicable, evidence that ORS 128.610 to 128.750 has been complied with.
(g)
A financial report, and other information, as described in ORS 305.730.
(2)
If, at any time, there is a change of person, officer or employee to whom
contributions received by means of checkoff are to be remitted under ORS
305.747, the governing body of the entity shall give notice to the Department
of Revenue. The notice shall contain the name of the entity and the name of the
new person, officer or employee to whom contributions shall be remitted. [1989
c.987 §10; 1991 c.532 §24; 1999 c.1032 §3]
305.727 Instruction listing;
qualifications. (1) In addition to the
opportunity to be listed on the Oregon individual tax return forms under ORS
305.725, an entity on the eligibility roster may apply to the commission for
listing in the Department of Revenue instructions for tax return checkoff
contribution as provided in this section.
(2)
In order to qualify for instruction listing, the entity must apply to the
commission in the manner in which an entity applies for listing on the
individual tax forms under ORS 305.725.
(3)
In order to qualify for instruction listing, the entity must meet the
qualifications described in ORS 305.720, collect 10,000 or more signatures from
electors of this state attesting that the electors support the entity
qualifying for instruction listing and be:
(a)
The Oregon Veterans’ Home, the Nongame Wildlife Fund, the Alzheimer’s Disease
Research Fund, the Oregon Military Emergency Financial Assistance Fund or the
subaccount described in ORS 316.493 for contributions dedicated to the
prevention of child abuse and neglect;
(b)
A nonprofit organization described in section 501(c)(3) of the Internal Revenue
Code with a gross income of at least $1 million for the year prior to
application; or
(c)
The central office for a group of affiliated nonprofit organizations with a
collective gross income of at least $1 million in the year prior to the year of
application.
(4)
The commission shall review applications and approve those that meet the
qualifications of ORS 305.720 and this section. An entity that is approved by
the commission shall thereafter qualify for instruction listing for six years
and thereafter must reapply under this section for continued listing in
additional six-year periods, except that an entity that reapplies does not need
to collect 10,000 or more signatures.
(5)
The commission shall certify those entities that are on the eligibility roster
and that the commission has approved in the interim since the last preceding
certification to the Department of Revenue for listing in the instructions to
the forms described in ORS 305.710.
(6)
The department shall include in the instructions to the forms described in ORS
305.710 a list of entities that have been certified by the commission under
this section as of the date the instructions for the forms must be prepared.
(7)
The department shall cause two lines to be included on the Oregon individual
tax return forms following the listing of the entities described in ORS 305.715
(2). These lines may be used by a taxpayer to designate one or two entities
that have qualified for instruction listing under this section as the recipient
of a checkoff contribution by the taxpayer.
(8)
Amounts contributed by charitable checkoff to an instruction-listed entity
shall be subject to and distributed as provided in ORS 305.747. [1999 c.1032 §2;
2001 c.677 §1; 2007 c.822 §§6,7]
Note:
Section 8, chapter 822, Oregon Laws 2007, provides:
Sec. 8.
Notwithstanding ORS 305.727, an entity that qualified for instruction listing
before the tax year beginning on January 1, 2007, is not required to collect
signatures in order to qualify for instruction listing for any tax year
beginning on or after January 1, 2007. [2007 c.822 §8]
305.730 Financial report of entity.
(1) Each entity desiring to be listed on the Oregon individual income tax
return in order to receive contributions by means of checkoff for the biennial
years shall file a financial report with the Oregon Charitable Checkoff
Commission no later than July 1 of each even-numbered year.
(2)
The financial report shall contain, in detail:
(a)
The amount of funds received from contributions made by means of checkoff.
(b)
The disposition of the funds received from contributions made by means of
checkoff.
(3)
If required by the commission by rule, the entity shall also file with the
commission its budget, financial statements or other documents or information
needed by the commission to determine the use of funds received through
checkoff.
(4)
All information required by this section shall be as of the close of each
fiscal year of the two fiscal years of the entity that ended during the
12-month period ending prior to July 1 of the even-numbered calendar year. [1989
c.987 §11; 2007 c.822 §9]
305.735 Effect of qualification; notice if
entity not qualified. (1) Upon determination, pursuant
to initial application, that an entity qualifies for listing on the Oregon
individual income tax return to receive contributions by means of checkoff, the
Oregon Charitable Checkoff Commission, subject to ORS 305.710, shall cause the
name of the entity to be included on the list.
(2)
If the commission determines that the entity is not qualified to be listed, the
commission shall give notice in the manner provided under ORS 183.415, as
applicable, and ORS 305.740 (3) shall apply. [1989 c.987 §12]
305.740 Standards for continuing
eligibility. (1) Prior to the end of each
even-numbered calendar year, and subject to subsection (2) of this section, the
Oregon Charitable Checkoff Commission shall examine the list of entities
included on the Oregon personal income tax return for the tax year beginning in
the calendar year immediately preceding and shall determine if each entity
listed is qualified under ORS 305.710 and 305.720 to be listed on the return to
receive contributions by means of checkoff for the ensuing biennial years.
(2)(a)
The Department of Revenue shall determine for each tax year if each entity
listed for checkoff on the return for the preceding tax year meets the criteria
under ORS 305.720 (5) and shall notify the commission, if and when appropriate.
In determining the amount received in contributions from checkoffs for an
entity for a particular tax year:
(A)
For purposes of meeting the $25,000 minimum contribution, the amount received
in contributions from checkoffs in the amount shown in the department’s
financial statement for the fiscal year shall be counted.
(B)
The amount of receipts shall not be reduced by the amount of administrative
expense referred to in ORS 305.747.
(b)
The determination of the department made under paragraph (a) of this subsection
is final and may not be appealed. Notwithstanding subsection (1) of this
section, an entity that has not met the criteria of ORS 305.720 (5) shall not
be listed on the return for checkoff.
(3)(a)
If the commission, for any reason other than that contributions by means of
checkoff did not reach the amount required under ORS 305.720 (5), determines
that an entity included on the list certified under ORS 305.715 (2) for the
prior biennial years is not qualified to be included, or that an entity making
application is not qualified to be included, or is not included because of
determinations under ORS 305.710, on the list for the ensuing biennial years,
the commission shall so order.
(b)
The commission shall serve upon the entity, either by personal service or by
certified mail, return receipt requested, the order issued under paragraph (a)
of this subsection. The order shall comply with the applicable notice
requirements of ORS 183.415.
(c)
The entity or person or persons to whom the order is directed shall have 20
days from the date of personal service or mailing of the notice in which to
make written application to the commission for a contested case hearing to be
held in accordance with ORS 183.415 to 183.500 before the commission or the
designee of the commission. In any hearing before the designee of the
commission, the designee is authorized to issue the final order in the matter.
(d)
Upon failure to request a contested case hearing within the time specified, the
order shall become final.
(e)
Appeal may be taken from a final order as specified under ORS 183.480 to
183.497.
(f)
A final order issued by the commission, the designee of the commission, the
Court of Appeals or the Oregon Supreme Court determining that an entity be
included on the list certified under ORS 305.715 (2) may require only that the
entity be included on the list next certified after the effective date of the
final order. [1989 c.987 §13; 2001 c.114 §6; 2007 c.822 §10]
305.745 Inclusion of eligible entities on
tax return. (1) Upon receipt of the list certified
by the Oregon Charitable Checkoff Commission under ORS 305.715 (2), the
Department of Revenue shall cause the name of each entity so listed to be
included on the Oregon individual income tax return forms prepared for the
biennial years as certified.
(2)
Individual taxpayers who file an Oregon income tax return and who will receive
a tax refund from the department may designate that a contribution be made to
one or more entities listed. Designation shall be made in a space that the
department shall cause to be printed on the return form.
(3)
Overpayments of tax that are insufficient, due to ORS 293.250 or otherwise, to
satisfy the total amount of checkoffs designated on a tax return under
subsection (2) of this section and under statute other than ORS 305.690 to
305.753 shall be allocated among the entities designated on a pro rata basis. [1989
c.987 §14; 2007 c.822 §11]
305.747 Administrative expenses; crediting
contributions to entities; rules. (1) Amounts
equal to the amounts checked off under ORS 305.745 shall be remitted by the
Department of Revenue to the State Treasurer who shall deposit the amounts in a
suspense account established under ORS 293.445.
(2)(a)
Of the amounts remitted and deposited under subsection (1) of this section, a
portion is continuously appropriated for use in reimbursing the General Fund
for costs paid or incurred by the Oregon Charitable Checkoff Commission in
administering the checkoff programs established under ORS 305.690 to 305.753.
No more than one percent of the moneys generated by the checkoff programs per
fiscal year ending June 30, 1990, or per any fiscal year thereafter, is
appropriated under this paragraph.
(b)
Of the amounts remitted and deposited under subsection (1) of this section, a
portion is continuously appropriated for use in reimbursing the General Fund
for costs paid or incurred by the department in administering the checkoff
program established under ORS 305.690 to 305.753. The department shall adopt by
rule a formula or other method of determining the cost of administering each
checkoff program. Each program shall be charged the cost of administration not
to exceed 10 percent of the amount received in checkoff contributions.
(c)
Moneys appropriated under this subsection shall be transferred to the General
Fund on a quarterly basis.
(3)
The records of the department shall reflect the amount that the department has
credited to each entity less administrative expenses. Subject to ORS 305.745
(3), the amount credited to each entity shall be equal to the amount checked
off for that entity under ORS 305.745 less administrative expenses. The net
amount of moneys credited to an entity shall be transferred by the department
to the entity, as specified by law, on a periodic basis, or is continuously
appropriated to the department for payment to the entity and the department
shall pay and remit the net amount credited to the entity, without interest, to
the entity on a periodic basis. The department shall adopt rules governing the
transferring or remitting of checkoff moneys to the entities for which the
amounts were checked off. The rules shall specify the time, no less often than
quarterly, that the moneys are to be transferred or remitted to the entities by
the department. [1989 c.987 §15; 1995 c.79 §114; 2007 c.822 §12]
305.749
[Formerly 305.835; 1993 c.797 §29; 1995 c.79 §116; 2005 c.94 §25; 2005 c.836 §13;
2007 c.822 §13; repealed by 2007 c.822 §24]
305.751 Rules.
The Department of Revenue shall adopt such rules as are necessary for the
operation of the Oregon Charitable Checkoff Commission and the administration
of ORS 305.690 to 305.753. The commission may recommend that the department
adopt rules under this section. [1993 c.726 §8]
305.753 State Treasurer may solicit
donations to eligible entities; department rules.
(1) The State Treasurer may solicit and accept from private and public sources
and cause to be credited and paid to any entity gifts, grants and other
donations, in money or otherwise, if the entity is currently listed or entitled
to be listed on the Oregon tax return for checkoff.
(2)
In accordance with ORS chapter 183, the Department of Revenue may adopt rules
to carry out the purposes of ORS 305.690 to 305.753. [1989 c.987 §16; 1993
c.209 §21; 1993 c.797 §26; 1995 c.54 §19; 1995 c.79 §117; 1999 c.1084 §39; 2005
c.94 §26; 2005 c.836 §12; 2007 c.822 §§14,15]
CHECKOFF FOR CONTRIBUTION TO POLITICAL
PARTY
305.754 Designation of contribution to
political party on income tax return. (1) A
resident individual taxpayer who files a full-year Oregon individual income tax
return may designate that a contribution be made to the Oregon Political Party
Fund for payment to the major or minor political party designated. The resident
individual taxpayer shall make the designation by entering a code denoting the
party and marking the box provided on the return form pursuant to subsection
(2) of this section. The amount designated shall be subtracted from any refund due
on the return.
(2)(a)
The Department of Revenue shall provide, on the face of the full-year Oregon
individual income tax return form, a place for resident individual taxpayers to
make the designation of a political party provided by this section. The department
is not required to add a line to a particular form if this addition would
require addition of a page to the return form. All major political parties, as
described in ORS 248.006, and all minor political parties, as described in ORS
248.008, shall be listed, with identifying codes, in the instructions to the
individual income tax return.
(b)
The area on the return form for making the designation shall provide for a
checkoff box of $3. The instructions shall adequately explain that any amount
designated shall be paid to the political party of the taxpayer’s choice, that
the amount designated will decrease the refund of the taxpayer by the
designated amount, and that the designation is entirely voluntary.
(3)
If a taxpayer filing a full-year Oregon individual income tax return designates
more than one political party to receive the contribution, the designation is
void and no contribution is made.
(4)
If a joint return is filed and only one political party is designated, that
political party shall receive a contribution in the total amount designated. If
two political parties are designated on a joint return, each political party
shall receive a contribution in the amount designated by each joint filer. If
more than two parties are designated, the designations are void and no
contribution is made.
(5)
If an organization that is not a major or minor political party is designated
under this section, the designation is void and no contribution is made.
(6)
If a designation is void under subsection (3), (4) or (5) of this section, the
department shall adjust the return to reflect the amount designated for
contribution under this section.
(7)
If a taxpayer designates both a contribution to a political party under this
section and a contribution pursuant to ORS 305.745, and the refund due the
taxpayer is insufficient to satisfy the designated contribution under ORS
305.745, the designation under this section is void and no contribution to a
political party is made. [2009 c.911 §1]
Note:
305.754 to 305.759 were enacted into law by the Legislative Assembly but were
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.
305.755
[Formerly 306.260; repealed by 1969 c.166 §8 and 1969 c.520 §49]
305.756 Oregon Political Party Fund.
The Oregon Political Party Fund is established in the General Fund. The Oregon
Political Party Fund shall consist of all moneys transferred to the fund under
this section. Notwithstanding ORS 316.502, the Director of the Department of
Revenue shall transfer to the fund an amount equal to the total amount
designated by individual income taxpayers to be paid to the fund under ORS
305.754. [2009 c.911 §2]
Note: See
note under 305.754.
305.757 Payments to treasurers of
political parties. At least once each calendar
quarter, moneys in the Oregon Political Party Fund established in ORS 305.756
shall be paid to the treasurers of the political parties designated by
taxpayers under ORS 305.754. [2009 c.911 §3]
Note: See
note under 305.754.
305.758 Payment to political party
considered contribution for purposes of campaign finance regulation.
(1) A payment to a political party under ORS 305.757 is considered a
contribution to that political party for the purposes of ORS chapter 260.
(2)
Any moneys received by the treasurer of a political party under ORS 305.757 for
which a statement must be filed under ORS chapter 260 shall be reported as
received from the Oregon Political Party Fund. The names of individual
taxpayers are not required to be disclosed for purposes of ORS chapter 260. [2009
c.911 §4; 2010 c.9 §11]
Note: See
note under 305.754.
305.759 Contribution to political party on
income tax return not to be claimed as tax credit.
A contribution made under ORS 305.754 may not be claimed as a credit by the
taxpayer under ORS 316.102. [2009 c.911 §5]
Note: See
note under 305.754.
REFUNDS
305.760 Paying over funds to State
Treasurer and writing checks for refunds. In
lieu of the procedure provided in certain revenue laws for the retaining of a
working balance by the Department of Revenue from which refunds may be made,
the Department of Revenue may, in accordance with the requirement of the
Secretary of State, pay over all funds received under any of the revenue laws
to the State Treasurer and write refund checks upon the State Treasurer for
refunds authorized by law. [Formerly 306.270]
305.762 Election for direct deposit of personal
income tax refund. (1) At the election of the taxpayer,
a refund of personal income tax shall be made by direct deposit into an account
designated by the taxpayer at a bank or other financial institution.
(2)
The election shall be made on a form prescribed by the Department of Revenue
and filed with the taxpayer’s tax return for the tax year or at such other time
and manner as the department may prescribe by rule. [2001 c.111 §2]
305.765 Refund of taxes adjudged invalid.
In a proceeding involving the validity of any law whereby taxes assessed or
imposed have been collected and received by the state, acting through any
department or agency thereof, and paid into the State Treasury, if the court of
last resort holds the law or any part thereof invalid, and the time limit for
any further proceeding to sustain the validity of the law, or the part thereof
affected, has expired, and if there is no other statute authorizing refund
thereof, all taxes collected and paid under the law or part thereof
invalidated, in or after the year in which the action attacking the validity of
the same was instituted, shall be refunded and repaid in the manner provided in
ORS 305.770 to 305.785. [Formerly 306.280; 2003 c.46 §6]
305.770 Report of taxpayers paying invalid
tax; issuance and payment of warrants. The
department or agency of the state charged with the duty of administering the
law so invalidated, either wholly or in part, shall prepare a detailed report,
listing by name, address and amount of payment each taxpayer who paid an
invalid tax under the law. The Oregon Department of Administrative Services
shall issue a warrant in favor of each taxpayer listed therein, in the amount
so reported, and shall forward the warrant to the taxpayer at the address shown
in the report. The State Treasurer shall pay the warrants from the General Fund
in the usual manner when and as presented. Warrants refunding invalid taxes
shall be payable to the taxpayers named in the report required by this section
or to their heirs, administrators, executors or assigns. [Formerly 306.290;
1975 c.614 §8]
305.775 Interest on amount of refund in
certain cases. If an appeal from or petition for
certiorari to review a decision of the Supreme Court of Oregon, holding a tax
law or any part thereof invalid, is taken to the Supreme Court of the United
States and that court does not reverse or modify the decision of the Supreme
Court of Oregon, the refund of the invalid taxes shall include interest on the
amount paid at the rate of six percent from the date of the last decision of
the Supreme Court of Oregon in the matter to the date of filing with the
Secretary of State of the report and list of taxpayers entitled to the refunds
as required by ORS 305.770. [Formerly 306.300]
305.780 Taxes due prior to year in which
suit brought. Nothing contained in ORS 305.770 to
305.785 authorizes the refunding of any tax collected and paid under an
invalidated tax law, or invalidated part thereof, where the tax as provided in
such law became due and payable in any year prior to the year in which the suit
or action seeking the invalidation of the law or part thereof was instituted. [Formerly
306.310]
305.785 Appropriation.
There hereby is appropriated out of the moneys in the General Fund in the State
Treasury, not otherwise appropriated, the amounts necessary to carry out ORS
305.770 to 305.785, not exceeding the amounts paid to and received by the State
of Oregon, together with interest thereon as provided in ORS 305.775, under and
by virtue of the law or laws, or parts thereof, declared to be invalid. [Formerly
306.320]
305.790 Manner of payment of certain costs
and expenses. Payment of any attorney fees or
reasonable expenses under ORS 305.447 or 305.490 shall be made by the
Department of Revenue in the manner provided by law for the payment of income
tax refunds. [1971 c.265 §5]
305.792 Surplus refund donations to
education. (1) The Department of Revenue shall
provide a means by which personal income and corporate income or excise tax
return filers may indicate that a surplus refund credit to which the taxpayer
may otherwise be entitled to under ORS 291.349 shall instead be used for
funding education.
(2)(a)
A personal income or corporate excise or income taxpayer may elect not to claim
a surplus refund credit that the taxpayer would otherwise be entitled to pursuant
to ORS 291.349, in order to achieve a corresponding transfer of such moneys
from the General Fund to the State School Fund for the support of public
elementary and secondary school education. The taxpayer may make the election
in the form and manner prescribed by the department by rule.
(b)
A taxpayer that indicates that the credit will not be claimed but that
nevertheless claims the credit in determining the taxpayer’s tax liability
shall be considered to not have made the election under this subsection.
(c)
The election not to claim a credit under this subsection may not be revoked by
filing an amended return.
(3)
Following the determination to credit personal income or corporate income and
excise taxes pursuant to ORS 291.349, the department shall annually certify to
the State Treasurer the total amount of allowable credits that have not been
claimed pursuant to an election made under subsection (2) of this section. The
certification shall be made on or before December 31 of each year, until the tax
year for which the credit would otherwise be claimed becomes a closed tax year.
[1999 c.960 §2; 2011 c.299 §2]
Note:
Section 4, chapter 299, Oregon Laws 2011, provides:
Sec. 4. For
purposes of determining the amount to be certified to the State Treasurer under
ORS 305.792, surplus refund payment elections made under ORS 305.792 (2009 or
earlier edition) shall be considered surplus refund credit elections. [2011
c.299 §4]
305.794 Transfer to State School Fund.
Amounts certified by the Department of Revenue to the State Treasurer under ORS
305.792 shall be transferred by the department to the State School Fund for the
purposes for which State School Fund moneys may be used. [1999 c.960 §3; 2001
c.114 §7; 2005 c.755 §15]
305.796 Election to contribute refund to
account in Oregon 529 College Savings Network; rules.
(1) A taxpayer may elect to contribute all or a portion of a refund of personal
income tax to an account that has been established under ORS 348.857 by direct
deposit to the financial institution managing the account. The amount elected
to be contributed by the taxpayer must be at least $25 and may be applied as a
contribution only for the tax year in which the refund is issued.
(2)
The election shall be made on a form prescribed by the Department of Revenue
and filed with the taxpayer’s tax return for the tax year or at such other time
and in such other manner as the department may prescribe by rule. The
department shall prescribe by rule the maximum number of accounts to which a
taxpayer may elect to contribute a portion of the refund.
(3)
The election to contribute all or a portion of a refund may not be changed or
revoked.
(4)
The election to contribute all or a portion of a refund shall be void, and no
portion of the refund may be contributed to an account that has been
established under ORS 348.857, if:
(a)
The taxpayer’s refund is offset to pay amounts owed by the taxpayer; or
(b)
The taxpayer’s refund is less than the total of the following:
(A)
The contribution elected in subsection (1) of this section;
(B)
Payments of tax as provided in ORS 316.583 that accompany the return;
(C)
All contributions to charitable and governmental entities designated by means
of a checkoff as provided in ORS 305.745; and
(D)
All contributions to political parties designated by means of a checkoff as
provided in ORS 305.754. [2011 c.527 §2]
Note:
Section 4, chapter 527, Oregon Laws 2011, provides:
Sec. 4.
Section 2 of this 2011 Act [305.796] and the amendments to ORS 348.857 by
section 3 of this 2011 Act apply to income tax refunds payable to taxpayers for
tax years beginning on or after January 1, 2012. [2011 c.527 §4]
MISCELLANEOUS PROVISIONS
305.805 Repeal of intangibles income tax
law not to affect accrued taxes. The repeal of
the Intangibles Income Tax Act of 1931, as amended, shall not affect the
assessment and collection of any tax, penalty or interest accruing prior to
January 1, 1939, under the Intangibles Income Tax Act of 1931, as amended, and
such amounts shall be assessed and collected in accordance with the provisions
of that Act notwithstanding its repeal. [Formerly 306.340]
305.810 Verification of return, statement
or document filed under tax laws. Any return,
statement or other document required to be filed under any provision of the
laws administered by the Department of Revenue, in lieu of any oath otherwise
required, shall:
(1)
Contain or be verified by a written declaration that it is made under penalties
for false swearing; or
(2)
Be verified, by such other means as the department may prescribe by rule, that
it is made under penalties for false swearing. [Formerly 306.410; 1997 c.84 §2]
305.815 False return, statement or
document prohibited. No person shall willfully make
and subscribe any return, statement or other document that contains or is
verified by a declaration under ORS 305.810 that it is made under penalties for
false swearing if the person does not believe the return, statement or other
document is true and correct as to every material matter. [Formerly 306.420; 1997
c.84 §3]
305.820 Date when writing, remittance or
electronic filing deemed received by tax officials.
(1) Any writing or remittance required by law to be filed with or made to the
Department of Revenue, county board of property tax appeals, county assessor or
tax collector (designated in this section as the “addressee”) which is:
(a)
Transmitted through the United States mail or by private express carrier, shall
be deemed filed or received on the date shown by the cancellation mark or other
record of transmittal, or on the date it was mailed or deposited if proof
satisfactory to the addressee establishes that the actual mailing or deposit
occurred on an earlier date.
(b)
Filed electronically pursuant to a rule of the department adopted under ORS
306.265 and 309.104 that authorizes the electronic filing and that meets the
specifications and requirements of the rule, shall be deemed to be filed and
received on the date actually received by the addressee, or on the date stated
on the electronic acknowledgment of receipt that is sent by the addressee.
(c)
Lost in transmission through the United States mail or private express carrier,
shall be deemed filed and received on the date it was mailed or deposited for
transmittal if the sender:
(A)
Can establish by competent evidence satisfactory to the addressee that the
writing or remittance was deposited on or before the date due for filing in the
United States mail, or with a private express carrier, and addressed correctly
to the addressee; and
(B)
Files with the addressee a duplicate of the lost writing or remittance within
30 days after written notification is given by the addressee of its failure to
receive such writing or remittance.
(2)
Whenever any writing or remittance is required by law to be filed or made on a
day which falls on a Saturday, or on a Sunday or any legal holiday, the time
specified shall be extended to include the next business day.
(3)
As used in this section:
(a)
“Private express carrier” means a carrier described under ORS 293.660.
(b)
“Writing or remittance” includes, but is not limited to, “report,” “tax return,”
“claim for credit,” “claim for refund,” “statement,” “notice of appeal,” “petition
for review,” “notice of election,” “documentary proof,” a claim for exemption,
a claim for deferral, a return of property, a claim for cancellation of an
assessment, an application for a special assessment, and remittances. [Formerly
306.440; 1965 c.344 §27; 1993 c.44 §2; 1993 c.270 §23; 1997 c.154 §11; 1997
c.541 §87]
305.822 Prohibition on state or local tax
on Internet access. (1) As used in this section:
(a)
“Internet” means the combination of computer and telecommunications facilities,
including equipment and operating software, that comprise the interconnected
worldwide network of computer networks that employ the Transmission Control
Protocol/Internet Protocol, or any predecessor or successor protocols, to
communicate information by wire or radio.
(b)
“Internet access” means a service that enables users to access content,
information, electronic mail or other services offered over the Internet. “Internet
access” does not include telecommunications services or cable services.
(c)
“Tax” means a charge imposed by a governmental entity for the purpose of
generating revenues for governmental purposes. “Tax” does not include a fee
imposed for a specific privilege, service or benefit conferred to the payer of
the charge.
(2)
This state, and the municipal corporations and political subdivisions of this
state, may not impose, assess, collect or attempt to collect a tax on Internet
access or the use of Internet access if the tax was not in effect on October 6,
2001. [2001 c.741 §1]
Note:
305.822 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.
305.823 Local government tax on telephone
services prohibited. A county, city, district or
other political subdivision in this state may not levy or impose a tax on
amounts paid for exchange access or other telephone services. [Formerly
307.215; 2005 c.94 §27]
Note:
305.823 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.
305.824 [2001
c.855 §1; 2003 c.818 §1; renumbered 320.300 in 2003]
305.830 Collection of fines, penalties and
forfeitures; disbursement; cost of collection.
(1) Amounts transferred to the Department of Revenue by justice and municipal
courts under ORS 153.633, 153.645 and 153.650 shall be deposited in a suspense
account established under ORS 293.445 for the purpose of receiving criminal
fines and assessments.
(2)
In carrying out its duties under this section, the Department of Revenue shall
have access to the records and dockets of those courts charged with the duty to
transfer moneys to the department under ORS 153.633, 153.645 and 153.650.
(3)
The Department of Revenue may retain from the funds transferred under ORS
153.633, 153.645 and 153.650 an amount not to exceed two percent annually for
its actual costs of collection and disbursement of funds under this section,
including the cost of all examinations, investigations and searches, and of all
traveling and other expenses in connection therewith. The department shall
deposit the net amount of moneys in the suspense account described in
subsection (1) of this section into the Criminal Fine Account.
(4)
All judicial, municipal and county officers shall cooperate with the Department
of Revenue with respect to the collections, searches and investigations and
shall furnish the Department of Revenue with any information contained in any
of the records under their respective custodies relating thereto.
(5)
The Department of State Police shall cooperate in the investigation of fines,
penalties and forfeitures. [Formerly 178.080; 1983 c.763 §53; 1987 c.905 §19a;
2001 c.829 §6; 2005 c.700 §8; 2011 c.597 §131]
305.835 [1987
c.771 §§3b,3c; 1989 c.987 §17; renumbered 305.749 in 1989]
305.840 Forms furnished by county
assessors; assessor not liable when taxpayer fails to receive mailed form.
Whenever any provision of law provides for a form to be supplied, furnished, or
provided by a county assessor, the requirement means that the county assessor
shall make the form available to a taxpayer at the office of the county
assessor. In such cases there is no requirement that the county assessor mail
the form to the taxpayer unless the statute specifically provides for such
mailing. Where a taxpayer requests the assessor to mail the form to the
taxpayer, or when the assessor voluntarily mails the form, the assessor does
not undertake the responsibility for actual receipt by the taxpayer of the
form, and no estoppel applies against the assessor if the taxpayer does not
receive the form. [1973 c.402 §15]
305.845 Remedies exclusive.
The remedies provided in this chapter shall be exclusive and no person, county
officer or board shall maintain any suit, action or special proceeding in any
court of this state with respect to the assessment and taxation of property or
the collection of any tax thereon on any grounds, including fraud, where it
shall appear that such remedies were available. [1977 c.870 §12]
305.850 Use of collection agency.
(1) Notwithstanding any provision to the contrary in ORS 9.320 and 305.610, the
Director of the Department of Revenue may engage the services of a collection
agency to collect any taxes, interest and penalties resulting from an
assessment of taxes or additional taxes imposed by ORS chapter 118, 310, 314,
316, 317, 318, 321 or 323 or ORS 320.005 to 320.150 and any other tax laws
administered by the Department of Revenue. The director may engage the services
of a collection agency by entering into an agreement to pay reasonable charges
on a contingent fee or other basis.
(2)
The director shall cause to be collected, in the same manner as provided in
subsection (1) of this section, assessments, taxes and penalties due under ORS
chapter 656. All amounts collected pursuant to this subsection shall be
credited as provided in ORS 293.250.
(3)
The director may assign to the collection agency, for collection purposes only,
any of the taxes, penalties, interest and moneys due the state.
(4)
The collection agency may bring such action or take such proceedings, including
but not limited to attachment and garnishment proceedings, as may be necessary.
[1981 c.705 §6; 1983 c.541 §5; 1985 c.816 §39; 1987 c.843 §19; 1997 c.99 §50;
2003 c.804 §65; 2005 c.94 §28]
Note:
305.850 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.
TAXPAYER BILL OF RIGHTS
305.860 Statement of rights of taxpayers;
distribution. (1) The Director of the Department of
Revenue shall prepare a statement which sets forth in simple nontechnical
terms:
(a)
The rights of a taxpayer and the obligations of the Department of Revenue
during an audit;
(b)
The procedures by which a taxpayer may appeal any adverse decision of the
department, including informal conferences and judicial appeals;
(c)
The procedures for filing and processing refund claims and filing of taxpayer
complaints; and
(d)
The procedures which the department may use in enforcing the provisions of the
laws of this state.
(2)
The statement prepared in accordance with subsection (1) of this section shall
be distributed by the Director of the Department of Revenue to all taxpayers
upon request. The director shall inform taxpayers of their rights in a brief
explanatory statement included in all billing or collection notices, all
notices of assessment or deficiency and all notices of refund adjustment or
denial sent to the taxpayer. [1989 c.625 §67; 1995 c.650 §112]
305.865 Taxpayer rights.
Under any law administered by the Department of Revenue, an Oregon taxpayer
shall have the rights set forth under ORS 305.880 to 305.895. [1989 c.625 §69;
2003 c.46 §7]
305.870 Personnel evaluation not based on amount
of taxes collected. In its implementation of the
personnel policies established under ORS chapter 240 or by administrative
order, the Department of Revenue shall not use the dollar amounts of taxes
collected as its primary evaluation criterion. [1989 c.625 §68]
305.875 Rights of taxpayer in meeting or
communication with department. In any
meeting or communication with the Department of Revenue, including but not
limited to audits, conferences, interviews and any other meeting or
communication between the taxpayer and the department, the taxpayer shall have
the following rights, unless waived by the taxpayer:
(1)
The right to an explanation, by an officer or employee of the department before
or during the meeting of:
(a)
The audit, conference or meeting process and the taxpayer’s rights under such
process; and
(b)
The collection process and the taxpayer’s rights under such process.
(2)
The right to make an audio recording of any meeting relating to the
determination or collection of any tax with the department representative,
using the taxpayer’s own equipment, and at the taxpayer’s own expense.
(3)
If the department makes an audio recording of the meeting, the taxpayer has the
right to advance notice of the recording and a copy of the recording upon
request. The taxpayer shall reimburse the department the reasonable cost of the
copy.
(4)
The right to consult with an attorney, certified public accountant, enrolled
agent, or an other person permitted to represent a taxpayer at any meeting
before the department, if the taxpayer clearly states to the department
representative at any time during any meeting, that the taxpayer wishes to
consult with the person. This subsection does not apply to a meeting initiated
by an administrative subpoena.
(5)
The right to be represented by anyone who is permitted to represent the
taxpayer before the department, as provided under ORS 305.230 and 305.245.
(6)
The right not to be present, if represented, at the meeting unless subpoenaed
by the department pursuant to ORS 305.190, or other laws of this state. [1989
c.625 §70; 1995 c.650 §112a]
305.880 Waiver of interest or penalty when
department misleads taxpayer. A taxpayer
shall have the right to waiver of interest or penalties when an officer or
employee of the Department of Revenue misleads the taxpayer in a manner
described in ORS 305.145. [1989 c.625 §71]
305.885 Right of clear explanation.
A taxpayer shall have the right to a clear explanation, in any initial notice
or other initial communication of deficiency, delinquency or other writing that
is communicating an underpayment of tax, of the basis for underpayment,
interest and penalties. [1989 c.625 §72]
305.890 Right to enter into agreement to
satisfy liability in installment payments. (1) A
taxpayer shall have the right to enter into a written agreement with the
Department of Revenue to satisfy liability for payment of any tax in
installment payments if the Director of the Department of Revenue determines
that the agreement will facilitate collection of such liability.
(2)
Except as otherwise provided in this section, any agreement entered into by the
director under this section shall remain in effect for the term of the agreement.
(3)
The director may terminate any agreement entered into by the director under
this section if:
(a)
Any information that the taxpayer provided to the director prior to the date
the agreement was entered into was inaccurate or incomplete; or
(b)
The director believes that collection of any tax to which an agreement under
this section relates is in jeopardy.
(4)
If the director makes a determination that the financial condition of the
taxpayer with whom the director has entered into an agreement under this
section has significantly changed, the director may alter, modify or terminate
the agreement. Action may be taken by the director under this subsection only
if:
(a)
Notice of such determination is provided to the taxpayer within 30 days prior
to the date of such action; and
(b)
Such notice includes the reasons why the director believes a significant change
in the financial condition of the taxpayer has occurred.
(5)
The director may alter, modify or terminate an agreement entered into by the
director under this section in the case of the failure of the taxpayer to:
(a)
Pay any installment at the time such installment payment is due under such
agreement;
(b)
Pay any other tax liability at the time such liability is due; or
(c)
Provide a financial condition update as requested by the director. [1989 c.625 §73;
2003 c.46 §8]
305.895 Action against property before
issuance of warrant prohibited; prerequisites for warrant.
(1) Except as provided in ORS 314.440 or other jeopardy assessment procedure,
the Department of Revenue shall take no action against a taxpayer’s or
transferee’s real or personal property before issuing a warrant for the
collection of tax or an amount payable by a transferee under ORS 311.695 as
provided in ORS 314.430, 320.080, 321.570, 323.390, 323.610 and 324.190.
(2)
At least 30 days before issuing a warrant for collection of any tax collected
by the department or any amount payable under ORS 311.695, the department shall
send the taxpayer or transferee a written notice and demand for payment. The
notice shall:
(a)
Be sent by mail, addressed to the taxpayer or transferee at the taxpayer’s or
transferee’s last-known address.
(b)
Inform the taxpayer or transferee that, even if the taxpayer or transferee is
compliant with an installment agreement between the taxpayer or transferee and
the department and is in communication with the department, if the tax or any
portion of the tax or the amount payable under ORS 311.695 is not paid within
30 days after the date of the notice and demand for payment, a warrant may be
issued and recorded as provided in ORS 314.430, 320.080, 321.570, 323.390,
323.610 and 324.190.
(c)
Describe in clear nontechnical terms the legal authority for the warrant.
(d)
Contain the name, office mailing address and office telephone number of the
person issuing the warrant and advise the taxpayer or transferee that questions
or complaints concerning the warrant, other than liability for the underlying
tax or amount payable under ORS 311.695, may be directed to that person.
(e)
Include alternatives available to the taxpayer or transferee that would prevent
issuance of the warrant.
(f)
Inform the taxpayer or transferee of possible consequences to the taxpayer or
transferee of noncompliance, and of issuance of a warrant, including
garnishment of wages or bank accounts and seizure and sale of real or personal
property. [1989 c.625 §74; 2011 c.389 §7; 2011 c.723 §25]
305.900 Short title.
ORS 305.860 to 305.900 shall be known and cited as “The Taxpayer Bill of
Rights.” [1989 c.625 §66]
PENALTIES
305.990 Criminal penalties.
(1) Any person who willfully presents or furnishes to the Department of Revenue
any statement required under ORS 305.160, which statement is false or
fraudulent, commits perjury and upon conviction shall be punished as provided
by law therefor.
(2)
Any person who gives testimony before the Director of the Department of Revenue
which is false or fraudulent, commits perjury and upon conviction shall be
punished as provided by law therefor.
(3)
Any public officer who neglects or refuses to perform any of the duties imposed
on the public officer by law as to the assessment, levying or collection of
taxes commits a Class A misdemeanor.
(4)
Violation of ORS 305.815 is a Class A misdemeanor.
(5)
Violation of ORS 305.260 is a Class A misdemeanor. If the offender is an
officer or employee of the state the offender shall be dismissed from office
and shall be incapable of holding any public office in this state for a period
of five years thereafter. [Formerly 306.990; 1973 c.402 §6; subsection (5)
enacted as 1973 c.402 §25(2); subsection (6) enacted as 1977 c.790 §5; 1985
c.105 §2; 2011 c.597 §179]
305.992 Civil penalty for failure to file return for three consecutive years. (1) If any returns required to be filed under ORS chapter 118, 314, 316, 317, 318, 321 or 323 or under a local tax administered by the Department of Revenue under ORS 305.620 are not filed for three consecutive years by the due date (including