75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

                            Enrolled

                         House Bill 3640

Sponsored by Representative HOYLE; Representatives CLEM, DOHERTY,
  HOLVEY, KAHL, KOTEK, NOLAN, RILEY, Senators BATES, BONAMICI,
  BURDICK, EDWARDS, HASS, MONNES ANDERSON, MONROE, MORRISETTE,
  PROZANSKI, ROSENBAUM, VERGER (Presession filed.)

                     CHAPTER ................

                             AN ACT

Relating to cancellation of ad valorem tax assessment of personal
  property; creating new provisions; amending ORS 308.250 and
  308.290; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

  SECTION 1. ORS 308.250 is amended to read:
  308.250. (1) All personal property not exempt from ad valorem
taxation or subject to special assessment shall be valued at 100
percent of its real market value, as of January 1, at 1:00 a.m.
and shall be assessed at its assessed value determined as
provided in ORS 308.146.
  (2) { + (a) + } If the total assessed value of all taxable
personal property required to be reported under ORS 308.290 in
any county of any taxpayer is less than $12,500 in any assessment
year, the county assessor shall cancel the ad valorem tax
assessment  { + for property required to be reported under ORS
308.290 + } for that year.
   { +  (b) If, in a county with a population of more than
340,000, the total assessed value of all manufactured structures
taxable as personal property under ORS 308.875 of any taxpayer is
less than $12,500 in any assessment year, the county assessor
shall cancel the ad valorem tax assessment for the manufactured
structures for that year. + }
  (3) In any assessment year or years following an assessment
year for which taxes are canceled under subsection
(2) { + (a) + } of this section, the taxpayer may meet the
requirements of ORS 308.290 by filing, within the time required
or extended under ORS 308.290, a verified statement with the
county assessor indicating that the total assessed value of all
taxable personal property of the taxpayer required to be reported
under ORS 308.290 in the county is less than $12,500. The
statement shall contain the name and address of the taxpayer, the
information needed to identify the account and other pertinent
information, but shall not be required to contain a listing or
value of property or property additions or retirements.
  (4)(a) For each tax year beginning on or after July 1, 2003,
the Department of Revenue shall recompute the maximum amount of
the assessed value of taxable personal property  { + in
subsection (2)(a) and (b) of this section + } for which ad

Enrolled House Bill 3640 (HB 3640-A)                       Page 1

valorem property taxes may be canceled under this section. The
computation shall be as follows:
  (A) Divide the average U.S. City Average Consumer Price Index
for the prior calendar year by the average U.S. City Average
Consumer Price Index for 2002.
  (B) Recompute the maximum amount of assessed value for which
taxes may be canceled  { + under subsection (2)(a) or (b) of this
section + } by multiplying $12,500 by the appropriate indexing
factor determined as provided in subparagraph (A) of this
paragraph.
  (b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
  (c) If any change in the maximum amount of assessed value
determined under paragraph (a) of this subsection is not a
multiple of $500, the increase shall be rounded to the nearest
multiple of $500.
  SECTION 2. ORS 308.250, as amended by section 1 of this 2010
Act, is amended to read:
  308.250. (1) All personal property not exempt from ad valorem
taxation or subject to special assessment shall be valued at 100
percent of its real market value, as of January 1, at 1:00 a.m.
and shall be assessed at its assessed value determined as
provided in ORS 308.146.
    { - (2)(a) - }   { + (2) + } If the total assessed value of
all taxable personal property required to be reported under ORS
308.290 in any county of any taxpayer is less than $12,500 in any
assessment year, the county assessor shall cancel the ad valorem
tax assessment   { - for property required to be reported under
ORS 308.290 - }  for that year.
    { - (b) If, in a county with a population of more than
340,000, the total assessed value of all manufactured structures
taxable as personal property under ORS 308.875 of any taxpayer is
less than $12,500 in any assessment year, the county assessor
shall cancel the ad valorem tax assessment for the manufactured
structures for that year. - }
  (3) In any assessment year or years following an assessment
year for which taxes are canceled under subsection
 { - (2)(a) - }   { + (2) + } of this section, the taxpayer may
meet the requirements of ORS 308.290 by filing, within the time
required or extended under ORS 308.290, a verified statement with
the county assessor indicating that the total assessed value of
all taxable personal property of the taxpayer required to be
reported under ORS 308.290 in the county is less than $12,500.
The statement shall contain the name and address of the taxpayer,
the information needed to identify the account and other
pertinent information, but shall not be required to contain a
listing or value of property or property additions or
retirements.
  (4)(a) For each tax year beginning on or after July 1, 2003,
the Department of Revenue shall recompute the maximum amount of
the assessed value of taxable personal property   { - in
subsection (2)(a) and (b) of this section - }  for which ad
valorem property taxes may be canceled under this section. The
computation shall be as follows:
  (A) Divide the average U.S. City Average Consumer Price Index
for the prior calendar year by the average U.S. City Average
Consumer Price Index for 2002.

Enrolled House Bill 3640 (HB 3640-A)                       Page 2

  (B) Recompute the maximum amount of assessed value for which
taxes may be canceled   { - under subsection (2)(a) or (b) of
this section - }  by multiplying $12,500 by the appropriate
indexing factor determined as provided in subparagraph (A) of
this paragraph.
  (b) As used in this subsection, 'U.S. City Average Consumer
Price Index' means the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor.
  (c) If any change in the maximum amount of assessed value
determined under paragraph (a) of this subsection is not a
multiple of $500, the increase shall be rounded to the nearest
multiple of $500.
  SECTION 3. ORS 308.290 is amended to read:
  308.290. (1)(a) Except as provided in paragraph (b) of this
subsection, every person and the managing agent or officer of any
business, firm, corporation or association owning, or having in
possession or under control taxable personal property shall make
a return of the property for ad valorem tax purposes to the
assessor of the county in which the property has its situs for
taxation. As between a mortgagor and mortgagee or a lessor and
lessee, however, the actual owner and the person in possession
may agree between them as to who shall make the return and pay
the tax, and the election shall be followed by the person in
possession of the roll who has notice of the election. Upon the
failure of either party to file a personal property tax return on
or before March 1 of any year, both parties shall be jointly and
severally subject to the provisions of ORS 308.296.
  (b) Paragraph (a) of this subsection does not apply to personal
property exempt from taxation under ORS 307.162.
  (2) Every person and the managing agent or officer of any
business, firm, corporation or association owning or in
possession of taxable real property shall make a return of the
property for ad valorem tax purposes when so requested by the
assessor of the county in which the property is situated.
  (3)(a) Each return of personal property shall contain a full
listing of the property and a statement of its real market value,
including a separate listing of those items claimed to be exempt
as imports or exports. Each statement shall contain a listing of
the additions or retirements made since the prior January 1,
indicating the book cost and the date of acquisition or
retirement. Each return shall contain the name, assumed business
name, if any, and address of the owner of the personal property
and, if it is a partnership, the name and address of each general
partner or, if it is a corporation, the name and address of its
registered agent.
  (b) Each return of real property shall contain a full listing
of the several items or parts of the property specified by the
county assessor and a statement exhibiting their real market
value. Each return shall contain a listing of the additions and
retirements made during the year indicating the book cost, book
value of the additions and retirements or the appraised real
market value of retirements as specified in the return by the
assessor.
  (c) There shall be annexed to each return the affidavit or
affirmation of the person making the return that the statements
contained in the return are true. All returns shall be in a form
that the county assessor, with the approval of the Department of
Revenue, may prescribe. Prior to December 31 preceding the
assessment year, the department or assessor shall cause blank

Enrolled House Bill 3640 (HB 3640-A)                       Page 3

forms for the returns to be prepared and distributed by mail, but
failure to receive or secure the form does not relieve the
person, managing agent or officer from the obligation of making
any return required by this section.
  (4) All returns shall be filed on or before March 1 of each
year, but the county assessor or the Department of Revenue may
grant an extension of time to April 15 within which to file the
return as provided by subsection (6), (7) or (8) of this section.
  (5)(a) In lieu of the returns required under subsection (1)(a)
or (2) of this section, every person and the managing agent or
officer of any business, firm, corporation or association owning
or having in possession or under control taxable real and
personal property that is either principal industrial property or
secondary industrial property as defined in ORS 306.126 (1) and
is appraised by the Department of Revenue shall file a combined
return of the real and personal property with the department.
  (b) The contents and form of the return shall be as prescribed
by rule of the department. Any form shall comply with ORS
308.297. Notwithstanding ORS 308.875, a manufactured structure
that is a part of an industrial property shall be included in a
combined return.
  (c) In order that the county assessor may comply with ORS
308.295, the department shall provide a list to the assessor of
all combined returns that are required to be filed with the
department under this subsection but that were not filed on or
before the due date or within the time allowed by an extension.
  (d) If the department has delegated appraisal of the property
to the county assessor under ORS 306.126 (3), the department
shall notify the person otherwise required to file the combined
return under this subsection as soon as practicable after the
delegation that the combined return is required to be filed with
the assessor.
  (e) Notwithstanding subsection (2) of this section, a combined
return of real and personal property that is industrial property
appraised by the department shall be filed with the department on
or before March 1 of the year.
  (6)(a) Any person required to file a return under subsection
(5) of this section may apply to the Department of Revenue for an
extension of time to April 15, within which to file the return.
  (b) Extensions granted under this subsection may be based on a
finding by the department that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) An extension granted under this subsection shall apply to
returns required to be filed under subsection (5) of this section
with either the county assessor or the department.
  (d) The department shall notify assessors in affected counties
when the department grants extensions under this subsection.
  (7)(a) Except as provided in subsection (6) of this section,
any person required to file a return with the county assessor
under this section may apply to the assessor for an extension of
time to April 15 within which to file the return.
  (b) Extensions granted under this subsection may be based on a
finding by the assessor that:

Enrolled House Bill 3640 (HB 3640-A)                       Page 4

  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the assessor revokes the extension.
  (8)(a) Any person required to file returns in more than one
county may apply to the Department of Revenue for an extension of
time to April 15 within which to file the returns. The department
may grant extensions to a person required to file returns in more
than one county.
  (b) Extensions granted under this subsection may be based on a
finding by the department that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) Whenever the department grants an extension to a person
required to file returns in more than one county, the department
shall notify the assessors in the counties affected by the
extensions.
  (9) The Department of Revenue shall, by rule, establish
procedures and criteria for granting, denying or revoking
extensions under this section after consultation with an advisory
committee selected by the department that represents the
interests of county assessors and affected taxpayers.
  (10) A return is not in any respect controlling on the county
assessor or on the Department of Revenue in the assessment of any
property. On any failure to file the required return, the
property shall be listed and assessed from the best information
obtainable from other sources.
  (11)(a) All returns filed under the provisions of this section
and ORS 308.525 and 308.810 are confidential records of the
Department of Revenue or the county assessor's office in which
the returns are filed or of the office to which the returns are
forwarded under paragraph (b) of this subsection.
  (b) The assessor or the department may forward any return
received in error to the department or the county official
responsible for appraising the property described in the return.
  (c) Notwithstanding paragraph (a) of this subsection, a return
described in paragraph (a) of this subsection may be disclosed
to:
  (A) The Department of Revenue or its representative;
  (B) The representatives of the Secretary of State or to an
accountant engaged by a county under ORS 297.405 to 297.555 for
the purpose of auditing the county's personal property tax
assessment roll (including adjustments to returns made by the
Department of Revenue);
  (C) The county assessor, the county tax collector, the
assessor's representative or the tax collector's representative
for the purpose of:
  (i) Collecting delinquent real or personal property taxes; or
  (ii) Correctly reflecting on the tax roll information reported
on returns filed by a business operating in more than one county
or transferring property between counties in this state during
the tax year;

Enrolled House Bill 3640 (HB 3640-A)                       Page 5

  (D) Any reviewing authority to the extent the return being
disclosed relates to an appeal brought by a taxpayer;
  (E) The Division of Child Support of the Department of Justice
or a district attorney to the extent the return being disclosed
relates to a case for which the Division of Child Support or the
district attorney is providing support enforcement services under
ORS 25.080; or
  (F) The Legislative Revenue Officer for the purpose of
preparation of reports, estimates and analyses required by ORS
173.800 to 173.850.
  (d) Notwithstanding paragraph (a) of this subsection:
  (A) The Department of Revenue may exchange property tax
information with the authorized agents of the federal government
and the several states on a reciprocal basis, or with county
assessors, county tax collectors or authorized representatives of
assessors or tax collectors.
  (B) Information regarding the valuation of leased property
reported on a property return filed by a lessor under this
section may be disclosed to the lessee or other person in
possession of the property. Information regarding the valuation
of leased property reported on a property return filed by a
lessee under this section may be disclosed to the lessor of the
property.
  (12) If the assessed value of any personal property in
possession of a lessee is less than the maximum amount of the
assessed value of taxable personal property for which ad valorem
property taxes may be canceled under ORS 308.250 { +  (2)(a) + },
the person in possession of the roll may disregard an election
made under subsection (1)(a) of this section and assess the owner
or lessor of the property.
  SECTION 4. ORS 308.290, as amended by section 3 of this 2010
Act, is amended to read:
  308.290. (1)(a) Except as provided in paragraph (b) of this
subsection, every person and the managing agent or officer of any
business, firm, corporation or association owning, or having in
possession or under control taxable personal property shall make
a return of the property for ad valorem tax purposes to the
assessor of the county in which the property has its situs for
taxation. As between a mortgagor and mortgagee or a lessor and
lessee, however, the actual owner and the person in possession
may agree between them as to who shall make the return and pay
the tax, and the election shall be followed by the person in
possession of the roll who has notice of the election. Upon the
failure of either party to file a personal property tax return on
or before March 1 of any year, both parties shall be jointly and
severally subject to the provisions of ORS 308.296.
  (b) Paragraph (a) of this subsection does not apply to personal
property exempt from taxation under ORS 307.162.
  (2) Every person and the managing agent or officer of any
business, firm, corporation or association owning or in
possession of taxable real property shall make a return of the
property for ad valorem tax purposes when so requested by the
assessor of the county in which the property is situated.
  (3)(a) Each return of personal property shall contain a full
listing of the property and a statement of its real market value,
including a separate listing of those items claimed to be exempt
as imports or exports. Each statement shall contain a listing of
the additions or retirements made since the prior January 1,
indicating the book cost and the date of acquisition or
retirement. Each return shall contain the name, assumed business

Enrolled House Bill 3640 (HB 3640-A)                       Page 6

name, if any, and address of the owner of the personal property
and, if it is a partnership, the name and address of each general
partner or, if it is a corporation, the name and address of its
registered agent.
  (b) Each return of real property shall contain a full listing
of the several items or parts of the property specified by the
county assessor and a statement exhibiting their real market
value. Each return shall contain a listing of the additions and
retirements made during the year indicating the book cost, book
value of the additions and retirements or the appraised real
market value of retirements as specified in the return by the
assessor.
  (c) There shall be annexed to each return the affidavit or
affirmation of the person making the return that the statements
contained in the return are true. All returns shall be in a form
that the county assessor, with the approval of the Department of
Revenue, may prescribe. Prior to December 31 preceding the
assessment year, the department or assessor shall cause blank
forms for the returns to be prepared and distributed by mail, but
failure to receive or secure the form does not relieve the
person, managing agent or officer from the obligation of making
any return required by this section.
  (4) All returns shall be filed on or before March 1 of each
year, but the county assessor or the Department of Revenue may
grant an extension of time to April 15 within which to file the
return as provided by subsection (6), (7) or (8) of this section.
  (5)(a) In lieu of the returns required under subsection (1)(a)
or (2) of this section, every person and the managing agent or
officer of any business, firm, corporation or association owning
or having in possession or under control taxable real and
personal property that is either principal industrial property or
secondary industrial property as defined in ORS 306.126 (1) and
is appraised by the Department of Revenue shall file a combined
return of the real and personal property with the department.
  (b) The contents and form of the return shall be as prescribed
by rule of the department. Any form shall comply with ORS
308.297. Notwithstanding ORS 308.875, a manufactured structure
that is a part of an industrial property shall be included in a
combined return.
  (c) In order that the county assessor may comply with ORS
308.295, the department shall provide a list to the assessor of
all combined returns that are required to be filed with the
department under this subsection but that were not filed on or
before the due date or within the time allowed by an extension.
  (d) If the department has delegated appraisal of the property
to the county assessor under ORS 306.126 (3), the department
shall notify the person otherwise required to file the combined
return under this subsection as soon as practicable after the
delegation that the combined return is required to be filed with
the assessor.
  (e) Notwithstanding subsection (2) of this section, a combined
return of real and personal property that is industrial property
appraised by the department shall be filed with the department on
or before March 1 of the year.
  (6)(a) Any person required to file a return under subsection
(5) of this section may apply to the Department of Revenue for an
extension of time to April 15, within which to file the return.
  (b) Extensions granted under this subsection may be based on a
finding by the department that:

Enrolled House Bill 3640 (HB 3640-A)                       Page 7

  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) An extension granted under this subsection shall apply to
returns required to be filed under subsection (5) of this section
with either the county assessor or the department.
  (d) The department shall notify assessors in affected counties
when the department grants extensions under this subsection.
  (7)(a) Except as provided in subsection (6) of this section,
any person required to file a return with the county assessor
under this section may apply to the assessor for an extension of
time to April 15 within which to file the return.
  (b) Extensions granted under this subsection may be based on a
finding by the assessor that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the assessor revokes the extension.
  (8)(a) Any person required to file returns in more than one
county may apply to the Department of Revenue for an extension of
time to April 15 within which to file the returns. The department
may grant extensions to a person required to file returns in more
than one county.
  (b) Extensions granted under this subsection may be based on a
finding by the department that:
  (A) Good or sufficient cause exists for granting an extension
for the property tax year of the return; or
  (B) Granting an extension enhances the accuracy of the filing
by the taxpayer and long-term voluntary compliance. An extension
granted under this subparagraph shall continue in effect for each
subsequent property tax year until the taxpayer cancels the
extension or the department revokes the extension.
  (c) Whenever the department grants an extension to a person
required to file returns in more than one county, the department
shall notify the assessors in the counties affected by the
extensions.
  (9) The Department of Revenue shall, by rule, establish
procedures and criteria for granting, denying or revoking
extensions under this section after consultation with an advisory
committee selected by the department that represents the
interests of county assessors and affected taxpayers.
  (10) A return is not in any respect controlling on the county
assessor or on the Department of Revenue in the assessment of any
property. On any failure to file the required return, the
property shall be listed and assessed from the best information
obtainable from other sources.
  (11)(a) All returns filed under the provisions of this section
and ORS 308.525 and 308.810 are confidential records of the
Department of Revenue or the county assessor's office in which
the returns are filed or of the office to which the returns are
forwarded under paragraph (b) of this subsection.

Enrolled House Bill 3640 (HB 3640-A)                       Page 8

  (b) The assessor or the department may forward any return
received in error to the department or the county official
responsible for appraising the property described in the return.
  (c) Notwithstanding paragraph (a) of this subsection, a return
described in paragraph (a) of this subsection may be disclosed
to:
  (A) The Department of Revenue or its representative;
  (B) The representatives of the Secretary of State or to an
accountant engaged by a county under ORS 297.405 to 297.555 for
the purpose of auditing the county's personal property tax
assessment roll (including adjustments to returns made by the
Department of Revenue);
  (C) The county assessor, the county tax collector, the
assessor's representative or the tax collector's representative
for the purpose of:
  (i) Collecting delinquent real or personal property taxes; or
  (ii) Correctly reflecting on the tax roll information reported
on returns filed by a business operating in more than one county
or transferring property between counties in this state during
the tax year;
  (D) Any reviewing authority to the extent the return being
disclosed relates to an appeal brought by a taxpayer;
  (E) The Division of Child Support of the Department of Justice
or a district attorney to the extent the return being disclosed
relates to a case for which the Division of Child Support or the
district attorney is providing support enforcement services under
ORS 25.080; or
  (F) The Legislative Revenue Officer for the purpose of
preparation of reports, estimates and analyses required by ORS
173.800 to 173.850.
  (d) Notwithstanding paragraph (a) of this subsection:
  (A) The Department of Revenue may exchange property tax
information with the authorized agents of the federal government
and the several states on a reciprocal basis, or with county
assessors, county tax collectors or authorized representatives of
assessors or tax collectors.
  (B) Information regarding the valuation of leased property
reported on a property return filed by a lessor under this
section may be disclosed to the lessee or other person in
possession of the property. Information regarding the valuation
of leased property reported on a property return filed by a
lessee under this section may be disclosed to the lessor of the
property.
  (12) If the assessed value of any personal property in
possession of a lessee is less than the maximum amount of the
assessed value of taxable personal property for which ad valorem
property taxes may be canceled under ORS 308.250 { +   + }
 { - (2)(a) - } , the person in possession of the roll may
disregard an election made under subsection (1)(a) of this
section and assess the owner or lessor of the property.
  SECTION 5.  { + (1) The amendments to ORS 308.250 and 308.290
by sections 1 and 3 of this 2010 Act apply to property tax years
beginning on or after July 1, 2010, and before July 1, 2014.
  (2) The amendments to ORS 308.250 and 308.290 by sections 2 and
4 of this 2010 Act apply to property tax years beginning on or
after July 1, 2014. + }
  SECTION 6.  { + This 2010 Act takes effect on the 91st day
after the date on which the special session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
                         ----------

Enrolled House Bill 3640 (HB 3640-A)                       Page 9

Passed by House February 10, 2010

      ...........................................................
                                             Chief Clerk of House

      ...........................................................
                                                 Speaker of House

Passed by Senate February 20, 2010

      ...........................................................
                                              President of Senate

Enrolled House Bill 3640 (HB 3640-A)                      Page 10

Received by Governor:

......M.,............., 2010

Approved:

......M.,............., 2010

      ...........................................................
                                                         Governor

Filed in Office of Secretary of State:

......M.,............., 2010

      ...........................................................
                                               Secretary of State

Enrolled House Bill 3640 (HB 3640-A)                      Page 11