Bill Text: OR HB2557 | 2011 | Regular Session | Introduced
Bill Title: Relating to tax compliance; prescribing an effective date.
Sponsorship: Unknown
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2557 Detail]
Download: Oregon-2011-HB2557-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 2090
House Bill 2557
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue)
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 collection agencies engaged by Department of Revenue
to collect delinquent taxes and to issue tax warrants, liens and
writs of attachment and garnishment. Applies to inheritance tax,
income and excise tax, timber tax, cigarette and tobacco tax, oil
and gas tax and miscellaneous taxes.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to tax compliance; amending ORS 18.854, 118.230,
305.850, 314.430, 320.080, 321.570, 323.390, 323.610 and
324.190; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 305.850 is amended to read:
305.850. (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, { + as may be necessary, + }including but not
limited to { + :
(a) + } Attachment and garnishment proceedings { - , as may be
necessary. - } { + ; and
(b) Issuing a warrant or lien as provided in ORS 314.430,
320.080, 321.570, 323.390, 323.610 or 324.190. + }
SECTION 2. ORS 118.230 is amended to read:
118.230. (1) Every tax imposed by ORS 118.005 to 118.840 is a
lien upon the property embraced in any inheritance, devise,
bequest, legacy or gift until paid, and the person to whom such
property is transferred, and the personal representatives and
trustees of every estate embracing such property are personally
liable for such tax until its payment, to the extent of the value
of such property.
(2) Taxes imposed under ORS 118.005 to 118.840 may be assessed
and collected by the Department of Revenue in the same manner as
income taxes are assessed and collected under ORS chapter 314.
The department { + or a collection agency engaged by the
department under ORS 305.850 + } may issue a warrant as provided
in ORS 314.430 and record the warrant in the County Clerk Lien
Record maintained under ORS 205.130. A warrant issued under this
section has the same force and effect as a warrant issued under
ORS 314.430.
SECTION 3. ORS 314.430 is amended to read:
314.430. (1) If any tax imposed under ORS chapter 118, 316, 317
or 318 or any portion of the tax is not paid within 30 days after
the date that the written notice and demand for payment required
under ORS 305.895 is mailed (or within five days after the tax
becomes due, in the case of the termination of the tax year by
the Department of Revenue under the provisions of ORS 314.440)
and no provision is made to secure the payment thereof by bond,
deposit or otherwise, pursuant to regulations promulgated by the
department, the department { + or a collection agency engaged by
the department under ORS 305.850 + } may issue a warrant directed
to the sheriff of any county of the state commanding the sheriff
to levy upon and sell the real and personal property of the
taxpayer found within that county, for the payment of the amount
of the tax, with the added penalties, interest, collection charge
and the sheriff's cost of executing the warrant, and to return
such warrant to the department { + or collection agency + } and
pay to it the money collected by virtue thereof by a time to be
therein specified, not less than 60 days from the date of the
warrant. A copy of the warrant shall be mailed or delivered to
the taxpayer by the department { + or collection agency + } at
the taxpayer's last-known address.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy thereof,
and thereupon the clerk shall enter in the County Clerk Lien
Record the name of the taxpayer mentioned in the warrant, and the
amount of the tax or portion thereof and penalties for which the
warrant is issued and the date when such copy is recorded.
Thereupon the amount of the warrant so recorded shall become a
lien upon the title to and interest in property of the taxpayer
against whom it is issued in the same manner as a judgment duly
recorded. The sheriff thereupon shall proceed upon the same in
all respects, with like effect and in the same manner prescribed
by law in respect to executions issued against property upon
judgment of a court of record, and shall be entitled to the same
fees for services in executing the warrant, to be added to and
collected as a part of the warrant liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect taxes, and in the execution thereof the
agent shall have all the powers conferred by law upon sheriffs,
but is entitled to no fee or compensation in excess of actual
expenses paid in the performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had
recovered judgment against the taxpayer for the amount of the
tax, and shall balance the assessment record of the taxpayer by
transferring the unpaid deficiency to the taxpayer's delinquent
record.
SECTION 4. ORS 320.080 is amended to read:
320.080. (1) If any tax or penalty imposed by ORS 320.005 to
320.150 is not paid as required by ORS 320.005 to 320.150 within
30 days after the date that the written notice and demand for
payment required under ORS 305.895 is mailed, the Department of
Revenue { + or a collection agency engaged by the department
under ORS 305.850 + } shall issue a warrant directed to the
sheriff of any county of the state commanding the sheriff to levy
upon and sell the real and personal property of the person or
persons named in the warrant and liable for the tax found within
the county, for the payment of the amount thereof with the added
penalty and the cost of executing the warrant, and to return the
warrant to the department { + or collection agency + } and pay
to it the money collected by virtue thereof by a time to be
therein specified not more than 30 days from the date of the
warrant. A copy of the warrant shall be mailed or delivered to
the taxpayer by the department { + or collection agency + } at
the taxpayer's last-known address.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy thereof.
Thereupon the clerk shall enter in the County Clerk Lien Record
the names of the persons mentioned in the warrant, and the amount
of the tax and penalty for which the warrant is issued and the
date when such copy is recorded. Thereupon the amount of the
warrant so recorded shall become a lien upon the title to any
interest in real property or personal property of the persons
against whom it is issued in the same manner as a judgment that
creates a judgment lien under ORS chapter 18. The sheriff shall
thereupon proceed upon the same in all respects, with like effect
and in the manner prescribed by law in respect to execution
issued against property upon judgment of a court of record, and
the sheriff is entitled to the same fees for services in
executing the warrant to be collected in the same manner. If a
warrant is returned not satisfied in full, the department shall
have the same remedies to enforce the claim for taxes as if the
people of the state had recovered judgment for the amount of the
tax.
SECTION 5. ORS 321.570 is amended to read:
321.570. (1) If any tax imposed by ORS 321.005 to 321.185,
321.560 to 321.600 or 321.700 to 321.754, or any portion of the
tax, is not paid within 30 days after the date that the written
notice and demand for payment required under ORS 305.895 is
mailed, the Department of Revenue { + or a collection agency
engaged by the department under ORS 305.850 + } may issue a
warrant, directed to the sheriff of any county of the state,
commanding the sheriff to levy upon and sell the real and
personal property of the taxpayer owning the same, found within
that county, for the payment of the amount of the tax, with the
added penalties, interest and cost of executing the warrant, and
to return the warrant to the department { + or collection
agency + } and to pay to it the money collected from the sale,
within 60 days after receipt of the warrant. A copy of the
warrant shall be mailed or delivered to the taxpayer by the
department { + or collection agency + } at the taxpayer's
last-known address.
(2) The sheriff shall, within five days after the receipt of
the warrant, record a copy with the county clerk, and the clerk
shall immediately enter in the County Clerk Lien Record the name
of the taxpayer mentioned in the warrant, and the amount of the
tax or portion of the tax and penalties for which the warrant is
issued and the date when the copy is recorded. The amount of the
warrant so recorded shall become a lien upon the title to and
interest in real property of the taxpayer against which it is
issued, in the same manner as a judgment that creates a judgment
lien under ORS chapter 18. The sheriff immediately shall proceed
upon the warrant in all respects, with like effect, and in the
same manner prescribed by law in respect to executions issued
against property upon judgments of a court of record, and shall
be entitled to the same fees for services in executing the
warrant, to be added to and collected as a part of the warrant
liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect this tax. In the execution of the warrant,
such agent has the powers conferred by law upon sheriffs, but is
entitled to no fee or compensation in excess of actual expenses
paid in the performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the state had a recorded
judgment against the taxpayer for the amount of the tax.
SECTION 6. ORS 323.390 is amended to read:
323.390. (1) If any tax imposed by ORS 323.005 to 323.482 or
any portion of such tax is not paid within 30 days after notice
of a deficiency determination is given pursuant to ORS 323.403 or
of a tax determined under ORS 323.385, and no provision is made
to secure the payment thereof by bond, deposit or otherwise,
pursuant to regulations promulgated by the Department of Revenue,
the department { + or a collection agency engaged by the
department under ORS 305.850 + } shall:
(a) Assess a collection charge of $5 if the sum of the tax,
penalty and interest then due exceeds $10.
(b) Issue a warrant directed to the sheriff of any county of
the state commanding the sheriff to levy upon and sell the real
and personal property of the taxpayer found within that county,
for the payment of the amount of the tax, with the added
penalties, interest, collection charge and the sheriff's cost of
executing the warrant, and to return such warrant to the
department { + or collection agency + } and pay to it the money
collected by virtue thereof by a time to be therein specified,
not less than 60 days from the date of the warrant.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy thereof,
and thereupon the clerk shall enter in the County Clerk Lien
Record the name of the taxpayer mentioned in the warrant, and the
amount of the tax or portion thereof and penalties and interest
for which the warrant is issued and the date when such copy is
recorded. Thereupon the amount of the warrant so recorded shall
become a lien upon the title to and interest in property of the
taxpayer against whom it is issued in the same manner as a
judgment that creates a judgment lien under ORS chapter 18. The
sheriff thereupon shall proceed upon the same in all respects,
with like effect and in the same manner prescribed by law in
respect to executions issued against property upon judgment of a
court of record, and shall be entitled to the same fees for
services in executing the warrant, to be added to and collected
as a part of the warrant liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect income taxes, and in the execution thereof
the agent shall have all the powers conferred by law upon
sheriffs, but is entitled to no fee or compensation in excess of
actual expenses paid in the performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had
recovered judgment against the taxpayer for the amount of the
tax.
SECTION 7. ORS 323.610 is amended to read:
323.610. (1) If any tax imposed under ORS 323.500 to 323.645,
or any portion of the tax, is not paid within the time provided
by law and no provision is made to secure the payment of the tax
by bond, deposit or otherwise, pursuant to rules adopted by the
Department of Revenue, the department { + or a collection agency
engaged by the department under ORS 305.850 + } may issue a
warrant directed to the sheriff of any county of the state
commanding the sheriff to levy upon and sell the real and
personal property of the taxpayer found within the county, for
the payment of the amount of the tax, with the added penalties,
interest and the sheriff's cost of executing the warrant, and to
return the warrant to the department { + or collection
agency + } and pay to it the money collected from the sale,
within 60 days after the date of receipt of the warrant.
(2) The sheriff shall, within five days after the receipt of
the warrant, record with the clerk of the county a copy of the
warrant, and the clerk shall immediately enter in the County
Clerk Lien Record the name of the taxpayer mentioned in the
warrant, the amount of the tax or portion of the tax and
penalties for which the warrant is issued and the date the copy
is recorded. The amount of the warrant so recorded shall become a
lien upon the title to and interest in real property of the
taxpayer against whom it is issued in the same manner as a
judgment that creates a judgment lien under ORS chapter 18. The
sheriff immediately shall proceed upon the warrant in all
respects, with like effect and in the same manner prescribed by
law in respect to executions issued against property upon
judgment of a court of record, and shall be entitled to the same
fees for services in executing the warrant, to be added to and
collected as a part of the warrant liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
authorized to collect the taxes imposed by ORS 323.500 to
323.645. In the execution of the warrant, the agent shall have
all the powers conferred by law upon sheriffs, but is entitled to
no fee or compensation in excess of actual expenses paid in the
performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the taxpayer as if the people of the state had
recovered judgment against the taxpayer for the amount of the
tax.
SECTION 8. ORS 324.190 is amended to read:
324.190. (1) If any tax imposed by this chapter, or any portion
of such tax, is not paid within 30 days after the date that the
written notice and demand for payment required under ORS 305.895
is mailed, the Department of Revenue { + or a collection agency
engaged by the department under ORS 305.850 + } shall issue a
warrant, directed to the sheriff of any county of the state,
commanding the sheriff to levy upon and sell the real and
personal property of the person owing the tax, found within that
county, for the payment in the amount thereof, with the added
penalties, interest and cost of executing the warrant, and to
return the warrant to the department { + or collection
agency + } and to pay to it the money collected by virtue
thereof, within 60 days after receipt of the warrant. A copy of
the warrant shall be mailed or delivered to the taxpayer by the
department { + or collection agency + } at the taxpayer's
last-known address.
(2) The sheriff shall, within five days after the receipt of
the warrant, record a copy with the county clerk, and thereupon
the clerk shall enter in the County Clerk Lien Record the name of
the person mentioned in the warrant, and the amount of the tax or
portion thereof and penalties for which the warrant is issued and
the date when the copy is recorded. Thereupon the amount of the
warrant so recorded shall become a lien upon the title to and
interest in real property of the person against which it is
issued, in the same manner as a judgment that creates a judgment
lien under ORS chapter 18. The sheriff thereupon shall proceed
upon the warrant in all respects, with like effect, and in the
same manner prescribed by law in respect to executions issued
against property upon judgments of a court of records, and shall
be entitled to the same fees for services in executing the
warrant, to be added to and collected as a part of the warrant
liability.
(3) In the discretion of the department a warrant of like
terms, force and effect may be issued and directed to any agent
of the department authorized by it to collect this tax. In the
execution of the warrant, such agent has the powers conferred by
law upon sheriffs, but is entitled to no fee or compensation in
excess of actual expenses paid in the performance of such duty.
(4) If a warrant is returned not satisfied in full, the
department shall have the same remedies to enforce the claim for
taxes against the owner as if the state had a recorded judgment
against the owner for the amount of the tax.
SECTION 9. ORS 18.854 is amended to read:
18.854. (1) Any state agency { + or collection agency + }
authorized to issue warrants to collect taxes and debts owed to
the State of Oregon, including but not limited to warrants issued
pursuant to ORS 179.655, 184.644, 267.385, 293.250, 314.430,
316.207, 320.080, 321.570, 323.390, 411.703, 657.396, 657.642,
657.646, 705.175 and 825.504, or any county tax collector
authorized to issue warrants to collect taxes and debts owed to
the county pursuant to ORS 311.625, may garnish property of a
debtor in the possession, control or custody of a person other
than the debtor by delivering to the person all of the following:
(a) A notice of garnishment;
(b) A warrant, or a true copy of a warrant;
(c) The items specified in ORS 18.650 (1)(b) to (d); and
(d) Any garnishee's search fee payable as provided in ORS
18.790.
(2) A notice of garnishment may be issued by any person
designated by the state agency { + , by the collection agency + }
or by the county tax collector. A warrant need not be recorded in
the County Clerk Lien Record as a condition of issuing a notice
of garnishment under the provisions of this section. The
provisions of ORS 18.800 do not apply to a notice of garnishment.
(3) If any of the items described in subsection (1) of this
section are not delivered to the garnishee, a notice of
garnishment shall not be effective to garnish any property of the
debtor, and the garnishee shall not be required to respond to the
garnishment and may proceed to deal with any property of the
debtor as though the notice of garnishment had not been issued.
(4) Notwithstanding ORS 18.652, a notice of garnishment and the
other items required by subsection (1) of this section may be
delivered in person by any employee of the state agency { + , of
the collection agency + } or of the county tax collector
authorized by the agency or the county to deliver the notice of
garnishment, or by certified mail, return receipt requested. The
employee need not be covered by the errors and omissions
insurance required in ORS 18.652.
(5) Notwithstanding any provision of ORS 18.600 to 18.850, a
debt calculation form need not be prepared or delivered for any
notice of garnishment.
(6) Notwithstanding ORS 18.792, the duty of a garnishee to
deliver any property of the debtor that may be contained in a
safe deposit box that is in the garnishee's possession, control
or custody at the time of delivery of the notice of garnishment
to the garnishee is conditioned upon the state agency { + , the
collection agency + } or the county tax collector first paying to
the garnishee, in addition to the search fee provided for in ORS
18.790, all reasonable costs incurred by the garnishee in gaining
entry to the safe deposit box. The costs shall be paid to the
garnishee by the state agency { + , the collection agency + } or
the county tax collector at least five days before the date the
state agency { + , the collection agency + } or the county tax
collector takes possession of the property in the safe deposit
box. If the state agency { + , the collection agency + } or the
county tax collector fails to pay such costs to the garnishee
within 20 days after the delivery of the garnishee response, the
garnishment shall not be effective to garnish any property of the
debtor that may be contained in the safe deposit box and the
garnishee may proceed to deal with the safe deposit box and its
contents as though the notice of garnishment had not been issued.
Nothing in this subsection limits the rights of a state
agency { + , collection agency + } or county tax collector to
reach the contents of any safe deposit box in any manner
otherwise provided by law.
(7) Except as provided in this section and ORS 18.855 and
18.857, all provisions of ORS 18.600 to 18.850 apply to notices
of garnishment. The state agency { + , collection agency + } or
county tax collector shall modify the forms provided in ORS
18.600 to 18.850 as necessary to allow use of those forms for
notices of garnishment. The form of the notice of garnishment
must clearly indicate that the document is a notice of
garnishment and must reflect the date of all warrants on which
the notice of garnishment is based.
(8) The Attorney General may adopt model forms for notices of
garnishment and other documents issued by state agencies and
county tax collectors under this section and ORS 18.855 and
18.857. There is a presumption, as described in ORS 40.120, that
any state agency { + , collection agency + } or county tax
collector that uses a model form adopted by the Attorney General
under this subsection has complied with the requirements of ORS
18.600 to 18.850, and with the provisions of this section and ORS
18.855 and 18.857, with respect to the form of notices of
garnishment.
SECTION 10. { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 session of the Seventy-sixth
Legislative Assembly adjourns sine die. + }
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