Bill Text: OR HB3167 | 2011 | Regular Session | Introduced

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Bill Title: Relating to payment of property taxes; prescribing an effective date.

Spectrum: Committee Bill

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3167 Detail]

Download: Oregon-2011-HB3167-Introduced.html

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     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 3586

                         House Bill 3167

Sponsored by 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.

  Eliminates discounts for partial or full payment of property
taxes on or before November 15. Requires payment of one-half of
taxes and other charges due on or before November 15 and
remaining one-half on or before May 15 next following.
  Applies to property tax years beginning on or after July 1,
2011.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to payment of property taxes; creating new provisions;
  amending ORS 86.260, 92.095, 294.361, 294.381, 307.244,
  308.260, 308.640, 311.250, 311.356, 311.392, 311.395, 311.415,
  311.465, 311.505, 311.508, 311.510, 311.531, 311.812, 315.119,
  496.340 and 757.883; repealing ORS 311.507; and prescribing an
  effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 311.505 is amended to read:
  311.505. (1) Except as provided in subsection   { - (6) - }
 { + (5) + } of this section, the first   { - one-third - }
 { + one-half + } of all taxes and other charges due from the
taxpayer or property, levied or imposed and charged on the latest
tax roll, shall be paid on or before November 15  { - , the
second one-third on or before February 15, - }  and the remaining
 { - one-third - }   { + one-half + } on or before May 15 next
following.
  (2) Interest shall be charged and collected on any taxes on
property, other charges, and on any additional taxes or penalty
imposed for disqualification of property for special assessment
or exemption, or installment thereof not paid when due, at the
rate of one and one-third percent per month, or fraction of a
month until paid.
    { - (3) Discounts shall be allowed on partial or full
payments of such taxes, made on or before November 15 as
follows: - }
    { - (a) Two percent on two-thirds of such taxes so paid. - }
    { - (b) Three percent where all of such taxes are so
paid. - }
    { - (4) - }   { + (3) + } For purposes of this section,
'taxes' includes all taxes on property as defined in ORS 310.140
and certified to the assessor under ORS 310.060 except taxes

assessed on any other property which have by any means become a
lien against the property for which the payment was made.
    { - (5) - }   { + (4) + } All interest collected   { - and
all discounts allowed - } shall be prorated to the several
municipal corporations, taxing districts and governmental
agencies sharing in the taxes or assessments.
    { - (6) - }   { + (5) + } If the total property tax is less
than $40, no installment payment of taxes shall be allowed.
  SECTION 2. ORS 311.250 is amended to read:
  311.250. (1) Except as to real property assessed to 'unknown
owners' pursuant to ORS 308.240 (2), on or before October 25 in
each year, the tax collector shall deliver or mail to each person
(as defined in ORS 311.605) shown on the tax roll as an owner of
real or personal property, or to an agent or representative
authorized in writing pursuant to ORS 308.215 by such person, a
written statement of property taxes payable on the following
November 15.
  (2) The failure of a taxpayer to receive the statement
described in this section shall not invalidate any assessment,
levy, tax, or proceeding to collect tax.
  (3) The tax collector shall not be liable for failure to
deliver or mail the tax statements by October 25 as provided in
subsection (1) of this section if such failure was caused by not
receiving the tax roll from the assessor by the time provided by
law or by reason of any other circumstance beyond the control of
the tax collector. In such case the tax collector shall deliver
or mail the statements as soon as possible.
  (4) Where, for any reason the taxes due on any property on the
assessment roll in any year cannot be ascertained from the tax
roll by November 5 of that year, within 15 days thereafter the
owner or other person liable for or desiring to pay the taxes on
such property may tender to the tax collector, and the tax
collector may collect, a payment of all or part of the taxes
estimated by the tax collector to be due on such property.
Immediately after the taxes are actually extended on the tax
roll, the tax collector shall credit the amount paid as provided
by law  { - , allowing the discount under ORS 311.505 and not - }
 { + without + } charging interest for the amount of taxes
satisfied by such payment. Where there has been an underpayment,
additional taxes shall be collected, and where there has been an
overpayment, refund shall be made as otherwise provided by law.
  (5) The tax statement described in this section shall be
designed by the Department of Revenue and shall contain such
information as the department shall prescribe by rule including:
  (a) The real market value of the property for which the tax
statement is being prepared (or the property's specially assessed
value if the property is subject to special assessment) for the
current and prior tax year;
  (b) The property's assessed value for the current and prior tax
year; and
  (c) The total amount of taxes due on the property.
  SECTION 3. ORS 311.356 is amended to read:
  311.356. (1) After receipt of the tax roll each year the tax
collector shall receive and receipt for all moneys received for
taxes and other amounts charged on such roll, and for each
payment, shall note on the tax roll at the appropriate property
assessment the following:
  (a) The date payment was received.
  (b) The amount of the payment.
    { - (c) The discount allowed, if any. - }
    { - (d) - }   { + (c) + } The interest charged, if any.
    { - (e) - }   { + (d) + } The number of the receipt issued
for such payment.
  (2) Except as provided under subsection (3)(a) and (c) of this
section, the tax collector shall credit all payments of property
taxes as follows:
  (a) First, to the payment of any taxes assessed against and due
on the property for which the payment was made, paying first the
earliest such taxes due on that property; and
  (b) Second, to the payment of taxes assessed on any other
property which have by any means become a lien against the
property for which the payment was made.
  (3)(a) Payments of property taxes made by the state on behalf
of tax-deferred homestead property under ORS 311.666 to 311.701
shall be credited to the current tax year.
  (b) At the election of the taxpayer, payments of property taxes
made by the taxpayer on behalf of tax-deferred homestead property
under ORS 311.666 to 311.701 shall be credited as provided in
subsection (2) of this section, except that the payments shall be
credited first to the payment of taxes that are not qualified to
be deferred under ORS 311.688 (1) or 311.689 (1), paying first
the earliest of such taxes due on that property.
  (c) Notwithstanding any contrary direction from the taxpayer,
the tax collector shall credit payments of property taxes to the
latest year for which taxes are due on the property for which
payment is made if:
  (A) The payment is made by a payer who is a mortgagee,
beneficiary under a deed of trust or vendor under a land sales
contract and who pays taxes on behalf of any taxpayer; and
  (B) The mortgagee, beneficiary or vendor directs that the
payment be credited to the latest year for which taxes are due on
the property; and
  (C) The mortgagee, beneficiary or vendor includes in the
payment submitted with the direction given under subparagraph (B)
of this paragraph only the amounts for the payment of taxes on
one or more properties for which delinquent taxes are owed and
does not include in that payment taxes on property for which no
delinquent taxes are owed.
  (d) If the mortgagee, beneficiary or vendor does not direct the
tax collector as to the application of taxes being paid, then the
tax collector shall apply all payments as provided under
subsection (2) of this section.
  (4) The tax collector may, for convenience, divide the tax
roll, as payments are made, into two portions, and file each
separately, one portion containing the paid accounts and another
portion containing the unpaid accounts. From time to time, and no
later than the receipt of the next year's tax roll, the tax
collector shall compute and indicate on the tax roll the unpaid
balance of taxes for each property assessment.
  SECTION 4. ORS 311.392 is amended to read:
  311.392.   { - (1) - }  If, in the discretion of the county
court, it is more economical to advance to those municipalities
from the general fund of the county the total amount of taxes,
assessments or other charges levied against property in the
county, the county court may advance from the general fund of the
county the full amount of the taxes, assessments and charges
levied by those subdivisions and the county court may order the
county tax collector to revise the tax distribution schedule
provided by ORS 311.390 so that all taxes, assessments and
charges advanced by the county will be allocated to the county.
If the county makes the payments provided in this section, it
shall have no recourse against the political subdivision for
recovery of the shrinkage in collections from that anticipated at
the time the payment was made.
    { - (2) If the county advances taxes under this subsection,
before December 1 of each year, it may deduct from the levy the
three percent discount which would have been given by the
district had all of the taxes been paid by November 15 and turned
over to the district on or before December 1 of each year. If the
payment is made after December 1, no discount shall be taken by
the county. - }
  SECTION 5. ORS 311.415 is amended to read:
  311.415. (1) Before any judgment or final order shall be
entered or become operative in any court in this state in any of
the causes listed in subsection (3) of this section, it shall
first be shown to the satisfaction of the court that all taxes
due or owing from the defendant, judgment debtor, heir, devisee,
executor, administrator, trustee, agent, conservator or guardian,
or which may be collected by virtue of the assessment and
taxation laws of this state, have been paid.
  (2) { + (a) + } If the judgment or final order is to be taken
and entered after January 1, while the assessment roll is in the
possession of the assessor, and pertains to an assessment to be
made as of January 1, the receipt for the taxes shall be given by
the assessor upon an assessment made as follows:
    { - (a) - }   { + (A) + } If the exact amount of taxes,
special assessments, fees and charges are able to be computed by
the assessor, such amount shall be paid to the tax collector. The
assessor is authorized to levy and the tax collector is
authorized to collect such amount.
    { - (b) - }   { + (B) + } If the assessor is unable to
compute the exact amount at the time  { - , either - }  { + : + }
    { - (A) - }   { + (i) + } There shall be paid the amount
estimated by the assessor to be needed to pay the taxes, special
assessments, fees and other charges to become due  { - , - }
 { + ; + } or
    { - (B) - }   { + (ii) + } There shall be deposited with the
tax collector a bond with good and sufficient undertaking in the
amount that the assessor considers adequate to   { - insure - }
 { + ensure + } payment of the taxes to become due.
   { +  (b) + } In no event shall the   { - bond - }  amount
 { + deposited pursuant to paragraph (a)(B)(ii) of this
subsection + } exceed twice the amount of the previous year's
taxes, special assessments, fees and other charges computed under
this subsection.   { - Taxes paid or bonded for under this
section shall be entitled to any discount provided by ORS
311.505. - }
   { +  (c) + } ORS 311.370   { - shall apply - }
 { + applies + } to amounts assessed and collected under this
subsection.
  (3) This section applies to the following causes:
  (a) An assignment for the benefit of creditors.
  (b) The estate of a deceased person or any other proceeding in
probate involving the distribution of personal property.
  (c) Any proceeding to enforce the payment of a debt where the
property involved is assessable personal property.
  SECTION 6. ORS 311.465 is amended to read:
  311.465. (1) Subsection (2) of this section applies if:
  (a) The county assessor discovers personal property subject to
assessment for taxation in any year and taxes imposed on the
property in a prior year are delinquent; or
  (b) In the opinion of the assessor it seems probable that
personal property may be removed from the county, sold,
dissipated or destroyed before the taxes on the property
otherwise become due and payable and it further appears that the
owner or person liable for the taxes had no property subject to
taxation in the county during either of the two preceding tax
years, or was delinquent in the payment of any tax imposed during
the two preceding tax years in respect to property in any
jurisdiction, whether within or without the state, or is not
financially responsible or intends to depart from the state
before the taxes become due.
  (2) The assessor may, immediately after listing and valuing the
personal property for assessment and taxation, levy, demand and
collect for remittance to the tax collector, or the tax collector
may collect, the taxes on the property as follows:
  (a) If the assessor is able to compute the exact amount of
taxes, special assessments, fees and charges, such amount shall
be paid to the assessor for remittance to the tax collector or
directly to the tax collector; or
  (b) If the assessor is unable to compute the exact amount at
the time, either:
  (A) There shall be paid the amount that the assessor estimates
is needed to pay the taxes, special assessments, fees and other
charges to become due; or
  (B) There shall be deposited with the tax collector a bond with
a good and sufficient undertaking in the amount that the assessor
considers adequate to ensure payment of the taxes to become due.
In no event shall the bond amount exceed twice the amount of the
taxes, special assessments, fees and other charges computed by
the assessor under this paragraph.
  (3)   { - Taxes paid or bonded for under subsection (2) of this
section shall be entitled to the discount provided by ORS
311.505. - }  ORS 311.370   { - shall apply - }   { + applies + }
to the amounts assessed and collected under subsection (2) of
this section. Any taxes collected under subsection (2) of this
section, and subject to refund on order of the tax court under
ORS 311.467, shall be held in the special account mentioned in
ORS 311.370 by the county treasurer until the period for
petitioning for review of the assessor's action has expired, or,
when a review is had, until the review is determined. If the tax
court, upon review, orders a refund, the county treasurer shall
make the refund from the special account within three days after
entry of the department's order.
  (4) If the owner or person liable for the taxes on the personal
property fails to pay the tax on demand by the assessor, the
assessor shall certify the assessment and tax levies made under
this section to the tax collector of the county. The taxes
thereupon shall be collected by the tax collector in the manner
of collecting delinquent taxes on personal property. The taxes
when so certified by the assessor are delinquent and subject to
the provisions of law for the collection of delinquent taxes on
personal property.
  SECTION 7. ORS 311.508 is amended to read:
  311.508. (1) Except as provided under subsection (2) of this
section and notwithstanding ORS 311.505   { - (5) - }  { +
(4) + }:
  (a) Twenty-five percent of the interest charged and collected
under ORS 311.505 shall be deposited and credited to the County
Assessment and Taxation Fund created under ORS 294.187; and
  (b) An additional 25 percent of the interest charged and
collected under ORS 311.505 shall be deposited and credited to
the County Assessment and Taxation Fund created under ORS 294.187
to the extent the interest would otherwise be distributed to
cities or other taxing districts that are not counties or
districts within the public school system.
  (2) On or before June 15 of each year, the Department of
Revenue shall estimate the amount of interest that will be
deposited and credited to the County Assessment Function Funding
Assistance Account created under ORS 294.184 for the ensuing
fiscal year. If the estimate is less than $13 million, the
department shall certify to each county treasurer an increase in
the percentage specified under subsection (1)(a) of this section
to the end that the estimate reaches $13 million. However, no
increase in percentage shall be certified that will raise and
make available for deposit and credit to the County Assessment
Function Funding Assistance Account for the ensuing fiscal year
an amount that is in excess of $3 million over the amount
estimated under this subsection to be received under subsection
(1)(a) of this section for the ensuing fiscal year.
  (3) Upon receipt of certification from the department under
subsection (2) of this section, the county treasurer shall
deposit and credit to the County Assessment and Taxation Fund for
the fiscal year to which the certification applies the percentage
of the interest charged and collected under ORS 311.505 so
certified.
  (4) The percentage of the interest on unpaid taxes and
penalties required to be deposited and credited to the County
Assessment and Taxation Fund under this section shall be
deposited and credited in the same manner that the remaining
interest is deposited and credited under ORS 311.385.
  SECTION 8. ORS 311.510 is amended to read:
  311.510. Taxes on real property not paid on or before May 15
shall be delinquent. Taxes on personal property shall become
delinquent whenever any   { - third thereof, or other - }
specified installment  { - , - }  is not paid on or before its
due date, as provided in ORS 311.505.
  SECTION 9. ORS 311.531 is amended to read:
  311.531. (1) On or before August 1 of each year the tax
collector shall file with the county clerk a statement, on forms
supplied by the Department of Revenue, compiled from the tax
rolls, showing separately for each tax year for the prior seven
years the following information as to transactions during the
past fiscal year ending June 30:
  (a) The total amounts certified under ORS 311.105 (1) to be
collected by the tax collector, broken down among real property,
personal property and property assessed pursuant to ORS 308.505
to 308.665.
  (b) The total amount of all adjustments made by the tax
collector, in dollars, increasing the total amount to be
collected, and a like figure for the decreases.
  (c) The total amount collected, exclusive of interest and
penalties,  { + and + } the total amount remaining uncollected,
broken down among real property, personal property and property
assessed pursuant to ORS 308.505 to 308.665.
  (d) The total amount of interest and penalties collected, and
the total amount of   { - discounts or - }  rebates allowed.
  (e) Other matters affecting the statement of the tax collector,
striking a balance between the total of the tax roll and the
total of collections.
  (2) The tax collector then shall make a certificate over the
official signature of the collector, to be annexed to the
statement, that the facts set forth therein are correct. A copy
of the statement shall be filed with the county clerk, a copy
filed with the county court and a copy filed with the Department
of Revenue. A copy of the statement and also of the certificate
shall be retained by the tax collector as a public record.
  SECTION 10. ORS 311.812 is amended to read:
  311.812. (1) Except as provided in subsection (2) of this
section, interest may not be paid upon any tax refunds made under
ORS 311.806.
  (2) Interest as provided in subsection (3) of this section
shall be paid on the following refunds:
  (a) A refund resulting from the correction under ORS 308.242
(2) or (3) or 311.205 of an error made by the assessor,
Department of Revenue or tax collector.
  (b) A refund resulting from a written stipulation of the county
assessor or the county tax collector if the written stipulation
constitutes a final determination that is not subject to appeal.
  (c) Any refund ordered by the Department of Revenue if no
appeal is taken or can be taken from the department's order.
  (d) Refunds ordered by the Oregon Tax Court or the Supreme
Court if the order constitutes a final determination of the
matter.
  (e) Refunds of taxes collected against real or personal
property not within the jurisdiction of the tax levying body.
  (f) Refunds due to reductions in value ordered by a county
board of property tax appeals where no appeal is taken.
  (g) Refunds due to reductions in value made pursuant to ORS
309.115.
  (h) Refunds due to a claim for a veteran's exemption for a
prior tax year that is filed pursuant to ORS 307.262.
  (3)(a) The interest provided by subsection (2) of this section
shall be paid at the rate of one percent per month, or fraction
of a month, computed from the time the tax was paid or from the
time the first installment thereof was due, whichever is the
later.   { - If a discount is given at the time the taxes are
paid, interest shall be computed only on the net amount of taxes
to be refunded. - }  If any portion of a refund described in
subsection (2) of this section results from an assessment based
on inaccurate information contained in a report filed by a
taxpayer, interest shall be computed on only the portion of the
refund that is not attributable to the inaccurate information
contained in the taxpayer report.
  (b) As used in this subsection, 'report' means a return,
statement or any other information provided by a taxpayer in
writing to the department or county assessor.
  SECTION 11. ORS 86.260 is amended to read:
  86.260. (1) If a lender has a requirement that the borrower pay
funds into a lender's security protection provision for the
payment of property taxes on property that is the security for
the real estate loan agreement, insurance premiums, and similar
charges, and there are funds in the account, the lender shall pay
the taxes or the amount in the account if less than the taxes due
 { - , in time to take advantage of any discount authorized by
ORS 311.505, - }  and all other charges on or before the due
dates for payments.
  (2)(a) If the lender fails to pay the taxes in accordance with
subsection (1) of this section   { - resulting in a loss of
discount to the borrower - } , the lender shall credit the
lender's security protection provision in an amount equal to the
amount of
  { - discount denied on account of such failure, together with
any - } interest that has accrued on the unpaid property taxes to
the date the property taxes are finally paid.
  (b) If the failure of the lender to comply with subsection (1)
of this section is willful   { - and results in the loss to the
borrower of the discount - } , or if the failure to comply was
not willful but upon discovery of the failure to comply   { - and
the loss of discount - } , the lender fails to credit the
lender's security protection provision  { + as + } required by
paragraph (a) of this subsection, the borrower shall have a cause
of action against the lender to recover an amount equal to 15
times the amount of
  { - discount the borrower would have received, together with
any - } interest that accrued on the unpaid property taxes to the
date of recovery. The court may award reasonable attorney fees to
the prevailing party in an action under this section.
  SECTION 12. ORS 92.095 is amended to read:
  92.095. (1) A subdivision or partition plat may not be recorded
unless all ad valorem taxes have been paid, including additional
taxes, interest and penalties imposed on land disqualified for
any special assessment and all special assessments, fees or other
charges required by law to be placed upon the tax roll that have
become a lien upon the land or that will become a lien during the
tax year.
  (2) After July 1, and before the certification under ORS
311.105 of any year, the subdivider or partitioner shall:
  (a) If the exact amount of taxes, penalties, special
assessments, fees and charges can be computed by the assessor,
pay the amount to the tax collector. The assessor is authorized
to levy and the tax collector is authorized to collect the
amount.
  (b) If the assessor is unable to compute the amount at the
time, either:

  (A) Pay the amount estimated by the assessor to be needed to
pay the taxes, penalties, special assessments, fees and other
charges to become due; or
  (B) Deposit with the tax collector a bond or irrevocable letter
of credit with a good and sufficient undertaking in an amount the
assessor considers adequate to ensure payment of the taxes to
become due. The bond or irrevocable letter of credit amount may
not exceed twice the amount of the previous year's taxes, special
assessments, fees and other charges upon the land.
    { - (3) Taxes paid or for which security is given under
subsection (2)(a) or (b) of this section are entitled to the
discount provided by ORS 311.505. - }
    { - (4) - }   { + (3) + } ORS 311.370 applies to all taxes
levied and collected under subsection (2) of this section, except
that any deficiency constitutes a personal debt against the
person subdividing or partitioning the land and not a lien
against the land and must be collected as provided by law for the
collection of personal property taxes.
    { - (5) - }   { + (4) + } If a subdivision or partition plat
is recorded, any additional taxes, interest or penalties imposed
upon land disqualified for any special assessment become a lien
upon the land on the day before the plat was recorded.
  SECTION 13. ORS 294.361 is amended to read:
  294.361. (1) Each municipal corporation shall estimate in
detail its budget resources for the ensuing year or ensuing
budget period by funds and sources.
  (2) Budget resources include but are not limited to:
  (a) The balance of cash, cash equivalents and investments (in
the case of a municipal corporation on the cash basis) or the net
working capital (in the case of a municipal corporation on the
accrual or modified accrual basis of accounting) that will remain
in each fund on the last day of the current year or current
budget period;
  (b) Taxes;
  (c) Fees;
  (d) Licenses;
  (e) Fines;
  (f) Interest on deposits or on securities of any kind;
  (g) Endowments;
  (h) Annuities;
  (i) Penalties;
  (j) Sales of property or other assets or products of any kind;
  (k) Delinquent taxes;
  (L) Judgments;
  (m) Damages;
  (n) Rent;
  (o) Premiums on sales of bonds;
  (p) Reimbursement for services, road or other work performed
for others;
  (q) Transfer or reverter of unused balances of any kind;
  (r) Reimbursement for services provided other funds;
  (s) Rebates;
  (t) Refunds of moneys heretofore paid on any account;
  (u) Apportionment, grant, contribution, payment or allocation
from the federal government, state government or any other
governmental units;
  (v) Taxes for the ensuing year or ensuing budget period;
  (w) Interfund revenue transfers; and
  (x) Revenues from any and all other sources of whatsoever kind
or character.
  (3) Budget resources do not include:
    { - (a) The estimate for the ensuing year or ensuing budget
period of discounts under ORS 311.505. - }
    { - (b) - }   { + (a) + } The estimate of uncollectible
amounts of taxes, fees or charges for the ensuing year or ensuing
budget period.
    { - (c) - }   { + (b) + } Moneys accumulated under an
approved employee deferred compensation plan and interest or
investment returns earned on such moneys.
    { - (d) - }   { + (c) + } Grants, gifts, bequests or devises
transferred to a municipal corporation in trust for specific uses
in the year of transfer. However, such grants, gifts, bequests or
devises shall be included as budget resources if, by the time the
budget committee approves the budget, the amount thereof that
will be received in the ensuing year or ensuing budget period can
be reasonably estimated. Such grants, gifts, bequests or devises
may be placed in a trust and agency fund, to then be appropriated
from such fund or funds.
    { - (e) - }   { + (d) + } Amounts deducted from taxes
pursuant to ORS 294.632.
  SECTION 14. ORS 294.381 is amended to read:
  294.381. (1) Each municipal corporation that has the power to
levy an ad valorem property tax shall estimate, in the manner
provided in this section, the amount of revenues that will be
received in the ensuing year or ensuing budget period through the
imposition of taxes upon the taxable property within the
municipal corporation.
  (2) Subject to the additional adjustments required under
subsection (4) of this section, the estimated ad valorem taxes
that will be received in the ensuing year or ensuing budget
period shall not exceed the following:
  (a) The amount derived by multiplying the estimated assessed
value for the ensuing year or each fiscal year of the ensuing
budget period of the taxable property within the municipal
corporation, after boundary changes have been filed in final
approved form with the county assessor and the Department of
Revenue as provided in ORS 308.225, by whichever of the following
is applicable to the municipal corporation:
  (A) The municipal corporation's permanent rate limit on
operating taxes, as defined in ORS 310.202 (7); or
  (B) The municipal corporation's statutory rate limit on
operating taxes, as defined in ORS 310.202 (10).
  (b) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a dollar
amount, the dollar amount of such local option tax that is
authorized to be levied in the ensuing year or ensuing budget
period.
  (c) If the municipal corporation is authorized to levy a local
option tax that was authorized by the electors as a tax rate, the
amount derived by multiplying the authorized rate of such local
option tax for the ensuing year or ensuing budget period by the
estimated assessed value for the ensuing year or each fiscal year
of the ensuing budget period of the taxable property within the
municipal corporation.
  (d) Subject to subsection (3) of this section, the municipal
corporation's estimate of the amount required to pay the
principal and interest on bonded indebtedness that is not subject
to limitation under section 11 (11) or section 11b, Article XI of
the Oregon Constitution.
  (e) The municipal corporation's estimate of the amount required
to repay taxing district bond obligations or pension and
disability plan obligations described in section 11 (5), Article
XI of the Oregon Constitution.
  (3)(a) The estimate described in subsection (2)(d) of this
section may include:
  (A) An amount equal to the total of the payments on the
principal and interest on bonded indebtedness that are due and
payable in the fiscal period following the fiscal period for
which the budget is being prepared and before a sufficient amount
of property taxes to pay the bonded indebtedness are collected in
that fiscal period, pursuant to ORS 294.371.

  (B) Amounts to reimburse the municipal corporation for the
payment of principal and interest on exempt bonded indebtedness
that the municipal corporation made from other moneys because
collections of taxes levied for exempt bonded indebtedness were
not sufficient to pay the exempt bonded indebtedness.
  (b) If the bonded indebtedness is a tax credit bond or other
bond that bears interest that is includable in gross income under
the Internal Revenue Code, as amended and in effect on June 25,
2009, the payments described in paragraph (a) of this subsection
may include deposits that the municipal corporation has agreed to
make in a sinking fund that is dedicated to pay the bonded
indebtedness.
  (4) The amounts determined under subsection (2)(a), (b) and (c)
of this section shall be reduced by an amount equal to the
estimated amount of such taxes that will not be collected as a
result of:
    { - (a) The discounts allowed under ORS 311.505; - }
    { - (b) - }   { + (a) + } The limits imposed under ORS
310.150 (3); and
    { - (c) - }   { + (b) + } The failure of taxpayers to pay
such taxes in the year for which they are levied.
  (5)(a) The estimated ad valorem taxes determined in accordance
with subsection (2)(a), (b) and (c) of this section, prior to
adjustment by subsection (4) of this section, shall be used by
the municipal corporation for purposes of complying with the
requirements of ORS 310.060 (1).
  (b) The amounts determined under subsection (2)(d) and (e) of
this section shall, for purposes of complying with the
requirements of ORS 310.060 (1), be increased by an amount equal
to the estimated amount of taxes that will not be collected as a
result of:
    { - (A) The discounts allowed under ORS 311.505; - }
    { - (B) - }   { + (A) + } The limits imposed under ORS
310.150 (3); or
    { - (C) - }   { + (B) + } The failure of taxpayers to pay
taxes in the year for which they are levied.
  SECTION 15. ORS 307.244 is amended to read:
  307.244. (1) The assessor shall compute and list the value and
compute and list the amount of tax which would have been charged
on each property receiving an exemption under ORS 307.242 had the
property not received an exemption. On or before October 15, the
county assessor shall certify the total amounts so computed for
each county to the Department of Revenue and to the county
treasurer.
  (2) Not later than November 15, the Department of Revenue shall
pay to each county treasurer the amount certified under
subsection (1) of this section  { - , less any discount provided
in ORS 311.505 - } . The payments made by the department under
this section shall be made from the suspense account referred to
in ORS 310.692. If necessary, the payments may be prorated as
provided in ORS 310.692.
  (3) Payments made by the department to the various county
treasurers under this section shall be distributed to the taxing
units of the county in accordance with the schedule of
percentages computed under ORS 311.390.
  SECTION 16. ORS 308.260 is amended to read:
  308.260. (1) Any ship, vessel or other watercraft shall be
assessed and taxed in the manner provided in this section if:
  (a) On or after January 1 of any assessment year, the ship,
vessel or other watercraft is docked or moored in any waters
subject to the jurisdiction of the State of Oregon; and
  (b) The ship, vessel or other watercraft is employed or used as
a plant for the reduction or processing, but excluding canning,
of deep-sea fish.
  (2) Immediately on docking or mooring, the owner or person in
charge of a ship, vessel or other watercraft described in
subsection (1) of this section shall notify the county assessor.
The county assessor shall assess it, together with all machinery
and equipment thereon, at its assessed value determined under ORS
308.146 and 308.232. Upon determination of value, the owner or
person in charge shall:
  (a) Pay the exact amount of taxes, special assessments, fees
and charges, if the assessor is able to compute the exact amount;
or
  (b) If the assessor is unable to compute the exact amount at
the time the property is assessed, either pay to the tax
collector the amount estimated by the assessor to be needed to
pay the taxes, special assessments, fees and other charges to
become due, or deposit with the tax collector a bond with a good
and sufficient undertaking in the amount that the assessor
considers adequate to ensure payment of the taxes to become due.
The bond amount may not exceed twice the amount of the taxes,
special assessments, fees and other charges computed by the
assessor under this subsection.
  (3) It shall be unlawful to operate a floating reduction or
processing plant until the county assessor has been notified and
the tax paid as provided in this section. If the owner or person
in charge fails to notify the assessor, or proceeds to operate
the plant before full payment of the tax, the owner or person in
charge shall forfeit to the county, for the use of the several
taxing jurisdictions interested, a sum equal to twice the amount
of the tax. The forfeiture may be recovered by the assessor in an
action brought in the name of the county in any court having
jurisdiction over the action. In the action, the penalty shall be
preferred before all other debts or claims.
  (4) No mistake in the name of the owner of any floating
reduction or processing plant shall affect the right to collect
the tax or to recover the penalty under this section.
  (5) The county assessor is authorized to levy, collect and
remit to the tax collector, or the tax collector is authorized to
collect, taxes under conditions described in this section. Either
the assessor or tax collector is authorized to allow any
 { - discount or - }  rebate otherwise provided by law for
payment of taxes before the regular due date or dates. ORS
311.370 shall apply to all taxes collected before the regular due
date or dates.
  (6) Appeals of assessments of floating reduction or processing
plants shall:
  (a) Be heard by the county board of property tax appeals in the
same manner as assessments of other properties are appealed; and
  (b) Be made as provided in ORS 308.146 and 308.232.
  SECTION 17. ORS 308.640 is amended to read:
  308.640. (1) The Department of Revenue shall determine the
assessed value of the personal property of each small private
railcar company by multiplying the real market value of the
company's personal property by the average ratio of assessed
value to real market value of all property of large private
railcar companies.
  (2) The department shall determine the tax to be imposed on
small private railcar companies as follows:
  (a) Taxes to be credited to the county school funds shall be
calculated by applying to the assessed value of the property the
average school tax rate in the state for the immediately prior
tax year, applying to the assessed values of large private
railcar companies as determined by the department for the year.
  (b) Taxes to be credited to the county general funds shall be
calculated by applying to the assessed value thereof the average
nonschool tax rate in the state for the immediately prior tax
year, applying to the assessed values of large private railcar
companies as determined by the department for the year.

  (c) The taxes determined under this subsection may not be
imposed in an amount that exceeds the limits established in ORS
310.150 for any year.
  (3) The department may charge, levy and collect the tax so
determined on the personal property of any small private railcar
company having a taxable situs in this state. Each tax so charged
and levied constitutes a lien as of July 1 of the tax year on all
the personal property of the company within this state and shall
be payable in the same manner, at the same due dates and with the
same rates of   { - discount or - }  interest provided by law in
respect to taxes on personal property payable in the several
counties. In collecting such taxes, the Department of Revenue may
pursue any or all of the rights, remedies or processes provided
by law for the collection of delinquent taxes on personal
property and, in connection therewith, the department shall have,
in any county, the power and authority of the sheriff and tax
collector thereof.
  (4) Moneys collected by the department under this section shall
be apportioned to each county in the proportion that the portion
of the assessed value of cars of large private railcar companies
that is attributable to the county bears to the total assessed
value of cars of large private railcar companies. Moneys so
distributed to each county treasurer shall be credited to the
county school fund and general fund of the county as directed by
the department.
  (5) Real property of large private railcar companies and small
private railcar companies shall be apportioned to the several
counties according to the location of the real property.
  SECTION 18. ORS 315.119 is amended to read:
  315.119. (1) As used in this section:
  (a) 'Effective property tax rate' means:
  (A) The ratio of the total amount of property taxes imposed on
the account that contains the machinery and equipment for which a
credit is being claimed (after application of ORS 310.150
 { - but prior to discount under ORS 311.505 - } ) over the
assessed value of the property tax account; and
  (B) The ratio determined under subparagraph (A) of this
paragraph for the property tax year that begins in the income tax
year for which the credit is claimed.
  (b) 'Farm operator' means a person that operates a farming
business as defined in section 263A of the Internal Revenue Code.
  (c) 'Machinery and equipment' means machinery and equipment
that meets the definition of section 1245 property in section
1245 of the Internal Revenue Code.
  (d) 'Processing':
  (A) Means any activity that is directly related and necessary
to clean, sort, grade, produce, prepare, manufacture, handle,
package, store or ship a farm crop or livestock product after the
point of harvest and before the point of sale, in a modified
state or altered form.
  (B) Does not include an activity primarily associated with the
promotion or retail sale of a product for personal or household
use that is normally sold through consumer retail distribution.
  (e) 'Qualified machinery and equipment' means machinery and
equipment used in processing that meets the requirements of
subsections (3) and (4) of this section for the tax year.
  (2) A taxpayer who is a farm operator may claim a credit
against the taxes that are otherwise due under ORS chapter 316
or, if the taxpayer is a corporation, under ORS chapter 317 or
318 for ad valorem property taxes paid or incurred on qualified
machinery and equipment.
  (3) A credit under this section may be claimed only if:
  (a) The machinery and equipment is owned by the farm operator
or by a person who is related to the farm operator under section
267 of the Internal Revenue Code;

  (b) The machinery and equipment is used for processing
primarily occurring on land described in subsection (4) of this
section; and
  (c)(A) The farm operator has grown or raised at least one-half
of the total volume of farm crop or livestock products processed
with the machinery and equipment for which the credit is being
claimed in three of the five previous income tax years; or
  (B)(i) The farm operator has grown or raised at least one-tenth
of the total volume of farm crop or livestock products processed
with the machinery and equipment for which the credit is being
claimed in three of the five previous income tax years; and
  (ii) The farm operator has used the machinery and equipment to
process at least one-half of the volume of the applicable farm
crop or livestock products grown or raised by the farm operator
in three of the five previous income tax years.
  (4) In addition to the requirements under subsection (3) of
this section, a credit under this section may be claimed only if:
  (a) The machinery and equipment is located on land that is
specially assessed for farm use under ORS 308A.050 to 308A.128
and the machinery and equipment is owned or otherwise controlled
by the farm operator; or
  (b) The machinery and equipment is located on land that is
contiguous to land that is specially assessed for farm use under
ORS 308A.050 to 308A.128 and the machinery and equipment is owned
or otherwise controlled by the farm operator.
  (5) A credit may be claimed under this section only for
qualified machinery and equipment that was subject to assessment
and property taxation for the property tax year beginning in the
income tax year for which the credit is being claimed.
  (6) The amount of the credit shall be the lesser of:
  (a) The effective property tax rate multiplied by the adjusted
basis of the qualified machinery and equipment; or
  (b) $30,000.
  (7) The adjusted basis of the qualified machinery and equipment
shall be the adjusted basis of the qualified machinery and
equipment for personal income or corporate excise or income tax
purposes as of the last day of the income tax year for which the
credit is being claimed, except that the adjusted basis shall be
increased by the cost of any qualified machinery and equipment
that the taxpayer elected to expense under section 179 of the
Internal Revenue Code, until the qualified machinery and
equipment is fully depreciated for personal income or corporate
excise or income tax purposes. The adjusted basis shall reflect
any depreciation allowable for the current tax year. A credit
under this section may not be allowed for a tax year in which the
qualified machinery and equipment is fully depreciated for
personal income or corporate excise or income tax purposes.
  (8) The credit allowed under this section for any one tax year
may not exceed the tax liability of the taxpayer.
  (9) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise, any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, and any credit not used in that third
succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax
year thereafter.
  (10) The credit allowed under this section is not in lieu of
any depreciation or amortization deduction to which the taxpayer
otherwise may be entitled under ORS chapter 316, 317 or 318 for
the tax year.
  (11) The taxpayer's adjusted basis for determining gain or loss
may not be further decreased by any amount of credit allowed
under this section.
  (12) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (13) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed under this section shall be determined in a manner
consistent with ORS 316.117.
  (14) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  SECTION 19. ORS 496.340 is amended to read:
  496.340. (1) Except as provided in subsection (3) of this
section, whenever real property owned by the State Fish and
Wildlife Commission is exempt from taxation on January 1 of any
year by reason of its ownership by the state, the commission
shall pay to the county in which the property is situated an
amount equal to the ad valorem taxes that would have been charged
against the property if it had been assessed to a taxable owner
as of January 1 of such year as provided in subsection (2) of
this section. The county assessor shall determine the value of
such property and shall notify the commission of the
determination of the county assessor. Upon request of the
commission, the Department of Revenue shall review the
determination of value and shall redetermine the value if it
concludes the value initially determined was substantially
incorrect.
  (2)(a) Except as provided in paragraph (b) or (c) of this
subsection, the value of the property shall be computed at its
assessed value under ORS 308A.107 or for forestland use,
whichever is applicable.
  (b) Paragraph (a) of this subsection shall not apply to any
property upon which open field burning takes place. If open field
burning takes place on any property described in this section,
the property shall be valued at its highest and best use rather
than the values authorized in paragraph (a) of this subsection on
the January 1 following the date of the open field burning. If in
the next year, the open field burning is discontinued, paragraph
(a) of this subsection shall apply the next January 1 and each
year thereafter as long as no open field burning occurs.
  (c) Paragraph (a) of this subsection shall not apply to any
property acquired by the commission after September 9, 1971, if
such property was valued under farm use or forestland use special
assessment provisions, at the time the property was acquired by
the commission. However, no payments in lieu of taxes made to a
county pursuant to this section prior to January 1, 1974, shall
be refunded to the commission.
  (3) This section does not apply to real property used for bird
farms, fish hatcheries, office quarters, fishing access sites or
impoundments, capital improvements or real property acquired
pursuant to the Act of May 19, 1948 (62 Stat. 240), Public Law
80-537.
  (4) The amount prescribed in subsection (1) of this section
shall be determined annually by the assessor of the county in
which the property is situated and certified by the assessor to
the county court or the board of county commissioners. A notice
of the determination, signed by the county judge or the
chairperson of the board of county commissioners, shall be mailed
to the principal office of the commission not later than October
15. The notice shall contain a statement of the value of the
property and a complete explanation of the method used in
computing the amount claimed pursuant to subsection (1) of this
section. Not later than November 15, the commission shall pay
each amount  { - , less a discount equivalent to that which is
provided in ORS 311.505 - } .  Payment shall be made to the
county treasurer, who shall distribute the payment to the taxing
districts of the county in accordance with the schedule of
percentages computed under ORS 311.390.
  (5) Notwithstanding any other provision of the wildlife laws,
the commission shall make the payments to counties required by
this section annually from the moneys in the State Wildlife Fund
established by ORS 496.300.
  SECTION 20. ORS 757.883 is amended to read:
  757.883. (1) Oregon Community Power shall make payments in lieu
of property taxes on all property that would otherwise be subject
to assessment under ORS 308.505 to 308.665 if owned by a taxable
owner. Oregon Community Power shall pay to each county in which
property of Oregon Community Power is located an amount equal to
the ad valorem property taxes that would have been charged by the
county if Oregon Community Power property had been assessed to a
taxable owner as of January 1 of the assessment year for which
payment is being made.
  (2) The Department of Revenue shall determine the assessed
value of Oregon Community Power property as if the property were
subject to assessment under ORS 308.505 to 308.665, and shall
transmit the value information as provided in ORS 308.505 to
308.665 to the appropriate county assessor. Oregon Community
Power shall comply with property reporting requirements under ORS
308.505 to 308.665 as if the property were subject to assessment
under ORS 308.505 to 308.665.
  (3) The amount of the in lieu payment to be made to each county
under this section shall be determined and certified annually by
the county assessor of the county. A notice of the determination
and certification shall be mailed to Oregon Community Power not
later than October 15. The notice shall contain a statement of
the value of the property and a complete explanation of the
method used in computing the amount of the in lieu payment due
under this section. Not later than November 15, Oregon Community
Power shall pay the amount due to each county under this section
 { - , less a discount equivalent to that which is provided in
ORS 311.505 - } . Payment shall be made to the county treasurer.
The county treasurer shall distribute the payment to the taxing
districts of the county in accordance with the schedule of
percentages computed under ORS 311.390.
  SECTION 21.  { + ORS 311.507 is repealed. + }
  SECTION 22. ORS 311.395 is amended to read:
  311.395. (1) The tax collector shall make statements of the
exact amounts of property tax moneys in cash and warrants
collected as follows:
  (a) For the period beginning on the first Monday following the
last Friday in October through the last Friday in November, the
tax collector shall make weekly statements of those taxes that
are collected for the current tax year.
  (b) For the period beginning the first Monday following the
last Friday of November through the last Friday of October of the
ensuing year, the tax collector shall make quarterly statements
of those taxes that are collected for the current tax year.
  (c) The tax collector shall make quarterly statements of taxes
collected for prior years.
  (d) Notwithstanding paragraph (b) or (c) of this subsection, if
the balance in the unsegregated tax collection account as of the
close of any month for any tax year (the current tax year or any
prior tax year) exceeds $10,000 or if requested by any taxing
district, and if weekly statements are not required, then the tax
collector shall make a statement for the period since the last
statement for the tax year.
  (e) If the processing of tax payments for the current tax year
received or postmarked on or before the November 15 due date

  { - (or if the due date is extended under ORS 311.507, the due
date pursuant to the extension) - }  is not substantially
completed as of the last Friday in November, the tax collector
shall continue to make weekly statements until the end of a week
when the processing is substantially completed.
  (2)(a) Each statement shall be of taxes collected during the
weekly, monthly, quarterly or other period for which the
statement is required.
  (b) The statements prepared under subsection (1) of this
section shall specify the tax years for which the payments of
taxes were made.
  (c) A copy of each statement shall be filed with the county
clerk and a copy shall be filed with the county treasurer no
later than the fifth business day after the last business day of
the period for which the statement is prepared. A copy of each
statement shall be retained in the office of the tax collector.
  (3) For the purposes of this section, property tax moneys are
collected when:
  (a) Payment is made in person at the office of the tax
collector;
  (b) The tax collector receives tax moneys or notice of tax
moneys collected by a financial institution or other collection
agency;
  (c) The tax collector receives payment or notice of payment of
tax moneys by the state; or
  (d) The tax collector has posted a payment that arrived by mail
in the county mail receptacle.
  (4) Each statement required under subsections (1) and (2) of
this section shall separately state the amount deposited into the
property tax bankruptcy account under ORS 311.484 for the period
covered by the statement.
  (5) The statements required under subsections (1) and (2) of
this section may be made more often and for shorter periods if
the tax collector so desires but one of the statements so filed
shall cover a period coinciding with the last business day of the
particular calendar month or quarter during the period.
  (6) The county treasurer shall credit the total amount of
moneys set out in the statements prepared under subsections (1)
and (2) of this section, except for the amount deposited into the
property tax bankruptcy account under ORS 311.484, to the several
funds for which the moneys were respectively received in
accordance with the schedule provided in ORS 311.390. The county
treasurer shall keep the moneys and warrants received from the
tax collector in their respective funds.
  (7) Within five business days of receiving a statement required
by subsection (1) or (2) of this section, the county treasurer
shall distribute the amount of money set out in the statement,
except for the amount deposited into the property tax bankruptcy
account under ORS 311.484, to the several taxing units according
to the ratios provided in ORS 311.390. The county treasurer shall
distribute interest earned on moneys in the unsegregated tax
collections account at least as often as the treasurer receives a
statement from the tax collector under subsection (1)(b) or (d)
of this section. When statements are received under subsection
(1)(a) of this section, the county treasurer shall distribute
interest at least once a calendar month.
  SECTION 23.  { + The amendments to ORS 86.260, 92.095, 294.361,
294.381, 307.244, 308.260, 308.640, 311.250, 311.356, 311.392,
311.395, 311.415, 311.465, 311.505, 311.508, 311.510, 311.531,
311.812, 315.119, 496.340 and 757.883 by sections 1 to 20 and 22
of this 2011 Act and the repeal of ORS 311.507 by section 21 of
this 2011 Act apply to property tax years beginning on or after
July 1, 2011. + }
  SECTION 24.  { + This 2011 Act takes effect on the 91st day
after the date on which the 2011 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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