Bill Text: OR HB2533 | 2013 | Regular Session | Introduced
Bill Title: Relating to awards of costs in tax-related proceedings; prescribing an effective date.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2533 Detail]
Download: Oregon-2013-HB2533-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1262
House Bill 2533
Sponsored by Representative HOLVEY (Presession filed.)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Authorizes awards of attorney fees and expenses by tax court
magistrate. Establishes, for purposes of making award, that
objective reasonableness of nonprevailing party's position is
determined at time position is asserted. Allows tax court judge
to consider whether nonprevailing party received reasoned opinion
on merits from magistrate when determining objective
reasonableness of nonprevailing party's position. Allows tax
court to consider degree of difference between value pleaded by
county or Department of Revenue and as determined by court when
making award to taxpayer in property tax proceeding.
Requires county to pay attorney fees and expenses allowed in
property tax proceeding involving locally assessed property.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to awards of costs in tax-related proceedings; creating
new provisions; amending ORS 20.105, 305.490 and 305.790; and
prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.490, as amended by section 12, chapter 48,
Oregon Laws 2012, is amended to read:
305.490. (1)(a) 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.
(b) In addition to the fee imposed under paragraph (a) of this
subsection, plaintiffs or petitioners filing a complaint under
ORS 305.501 (5) shall pay the filing fee established under ORS
21.135 at the time of filing the complaint.
(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) - } { + (3) + } 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.
SECTION 2. { + Section 3 of this 2013 Act is added to and made
a part of ORS chapter 305. + }
SECTION 3. { + (1) If, in any proceeding before the tax court
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
(b) Reasonable expenses as determined by the court, including
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.
(2) If, in any proceeding before the tax court 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
(b) Reasonable expenses as determined by the court, including
fees of experts incurred by the individual taxpayer in preparing
for and conducting the proceeding before the tax court.
(3)(a) In any proceeding before the tax court, the court shall
award reasonable attorney fees to a prevailing party against whom
a claim, defense or ground for appeal or review was asserted,
upon a finding by the court that the nonprevailing party
willfully disobeyed a court order or that there was no
objectively reasonable basis for the nonprevailing party to
assert the claim, defense or ground for appeal or review.
(b)(A) Reasonable attorney fees awarded under this subsection
are to be paid by the nonprevailing party asserting the claim,
defense or ground for appeal or review.
(B) All attorney fees paid to an agency of the state under this
subsection shall be deposited to the credit of the agency's
appropriation or cash account from which the costs and expenses
of the proceeding were paid or incurred. If the agency obtained
an Emergency Board allocation to pay costs and expenses of the
proceeding, to the extent of the allocation the attorney fees
shall be deposited in the General Fund and be available for
general governmental expenses.
(4)(a) In determining whether to award attorney fees and
expenses under subsection (1), (2) or (3) of this section, the
tax court shall consider the factors listed in ORS 20.075.
(b)(A) The objective reasonableness of a claim, defense or
ground for appeal or review asserted by a nonprevailing party is
determined at the time the claim, defense or ground for appeal or
review is asserted.
(B) In determining whether a claim, defense or ground for
appeal or review is objectively reasonable at the time asserted,
the tax court judge may consider whether the nonprevailing party
had received a reasoned opinion on the merits from the magistrate
and in appealing the magistrate's decision submitted essentially
the same materials to the regular division, making no new legal
argument or credible argument that the magistrate ignored or
misapplied the law.
(c) In determining whether the position of a county or the
Department of Revenue is objectively reasonable for purposes of
awarding attorney fees and expenses to a taxpayer under
subsection (2) or (3) of this section, the tax court may consider
the degree of difference between the value of property that is
the subject of the proceeding as pleaded by the county or the
department and as determined by the court.
(5)(a) Payment of attorney fees or expenses under subsection
(1) of this section shall be made by the Department of Revenue in
the manner provided by ORS 305.790.
(b)(A) Except as provided in subparagraph (B) of this
paragraph, payment of attorney fees or expenses under subsection
(2) or (3) of this section shall be made by the county in which
the property that is the subject of the proceeding is located
from the unsegregated tax collections account described in ORS
311.385.
(B) In a proceeding involving property that is assessed
pursuant to ORS 308.505 to 308.665 or appraised pursuant to ORS
306.126, payment of attorney fees or expenses under subsection
(2) or (3) of this section shall be made by the Department of
Revenue in the manner provided by ORS 305.790. + }
SECTION 4. ORS 20.105 is amended to read:
20.105. (1) In any civil action, suit or other proceeding in a
circuit court { - or the Oregon Tax Court - } , or in any civil
appeal to or review by the Court of Appeals or Supreme Court, the
court shall award reasonable attorney fees to a party against
whom a claim, defense or ground for appeal or review is asserted,
if that party is a prevailing party in the proceeding and to be
paid by the party asserting the claim, defense or ground, upon a
finding by the court that the party willfully disobeyed a court
order or that there was no objectively reasonable basis for
asserting the claim, defense or ground for appeal.
(2) All attorney fees paid to { - any - } { + an + } agency
of the state under this section shall be deposited to the credit
of the agency's appropriation or cash account from which the
costs and expenses of the proceeding were paid or incurred. If
the agency obtained an Emergency Board allocation to pay costs
and expenses of the proceeding, to that extent the attorney fees
shall be deposited in the General Fund available for general
governmental expenses.
SECTION 5. ORS 305.790 is amended to read:
305.790. Payment of { - any - } attorney fees or reasonable
expenses under ORS 305.447 or { - 305.490 shall - }
{ + section 3 of this 2013 Act that is required to + } be made
by the Department of Revenue { + shall be made + } in the
manner provided by law for the payment of income tax refunds.
SECTION 6. { + Section 3 of this 2013 Act and the amendments
to ORS 20.105, 305.490 and 305.790 by sections 1, 4 and 5 of this
2013 Act apply to proceedings commenced on or after the effective
date of this 2013 Act. + }
SECTION 7. { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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