Bill Text: OR HB4039 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to tax deferral programs; and prescribing an effective date.

Sponsorship: Unknown

Status: (Passed) 2012-03-05 - Chapter 13, (2012 Laws): Effective date June 4, 2012. [HB4039 Detail]

Download: Oregon-2012-HB4039-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 166

                         House Bill 4039

Introduced and printed pursuant to House Rule 12.00. 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.

  Requires financial institution to notify potential borrower of
prohibition against pledging tax-deferred homestead as security
for reverse mortgage. Makes failure to comply unlawful trade
practice.
  Allows taxpayer to elect to credit payments to deferred taxes
payable as result of determination of ineligibility.
  Specifies classification of homesteads for purposes of
determining county median RMV.
  Requires Department of Revenue to certify eligibility for
deferral not less than once every three years.
  Requires department to report to interim committee regarding
claim form for homestead property tax deferral program for
property tax year beginning on July 1, 2012.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to tax deferral programs; creating new provisions;
  amending ORS 311.356, 311.666, 311.689 and 646.608; and
  prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Before entering into an agreement with a
borrower for a reverse mortgage, a financial institution, as
defined in ORS 706.008, shall notify the borrower in writing of
the provisions of ORS 311.700 (2). + }
  SECTION 2. ORS 646.608 is amended to read:
  646.608. (1) A person engages in an unlawful practice when in
the course of the person's business, vocation or occupation the
person does any of the following:
  (a) Passes off real estate, goods or services as those of
another.
  (b) Causes likelihood of confusion or of misunderstanding as to
the source, sponsorship, approval, or certification of real
estate, goods or services.
  (c) Causes likelihood of confusion or of misunderstanding as to
affiliation, connection, or association with, or certification
by, another.
  (d) Uses deceptive representations or designations of
geographic origin in connection with real estate, goods or
services.

  (e) Represents that real estate, goods or services have
sponsorship, approval, characteristics, ingredients, uses,
benefits, quantities or qualities that they do not have or that a
person has a sponsorship, approval, status, qualification,
affiliation, or connection that the person does not have.
  (f) Represents that real estate or goods are original or new if
they are deteriorated, altered, reconditioned, reclaimed, used or
secondhand.
  (g) Represents that real estate, goods or services are of a
particular standard, quality, or grade, or that real estate or
goods are of a particular style or model, if they are of another.
  (h) Disparages the real estate, goods, services, property or
business of a customer or another by false or misleading
representations of fact.
  (i) Advertises real estate, goods or services with intent not
to provide them as advertised, or with intent not to supply
reasonably expectable public demand, unless the advertisement
discloses a limitation of quantity.
  (j) Makes false or misleading representations of fact
concerning the reasons for, existence of, or amounts of price
reductions.
  (k) Makes false or misleading representations concerning credit
availability or the nature of the transaction or obligation
incurred.
  (L) Makes false or misleading representations relating to
commissions or other compensation to be paid in exchange for
permitting real estate, goods or services to be used for model or
demonstration purposes or in exchange for submitting names of
potential customers.
  (m) Performs service on or dismantles any goods or real estate
when not authorized by the owner or apparent owner thereof.
  (n) Solicits potential customers by telephone or door to door
as a seller unless the person provides the information required
under ORS 646.611.
  (o) In a sale, rental or other disposition of real estate,
goods or services, gives or offers to give a rebate or discount
or otherwise pays or offers to pay value to the customer in
consideration of the customer giving to the person the names of
prospective purchasers, lessees, or borrowers, or otherwise
aiding the person in making a sale, lease, or loan to another
person, if earning the rebate, discount or other value is
contingent upon occurrence of an event subsequent to the time the
customer enters into the transaction.
  (p) Makes any false or misleading statement about a prize,
contest or promotion used to publicize a product, business or
service.
  (q) Promises to deliver real estate, goods or services within a
certain period of time with intent not to deliver them as
promised.
  (r) Organizes or induces or attempts to induce membership in a
pyramid club.
  (s) Makes false or misleading representations of fact
concerning the offering price of, or the person's cost for real
estate, goods or services.
  (t) Concurrent with tender or delivery of any real estate,
goods or services fails to disclose any known material defect or
material nonconformity.
  (u) Engages in any other unfair or deceptive conduct in trade
or commerce.
  (v) Violates any of the provisions relating to auction sales,
auctioneers or auction marts under ORS 698.640, whether in a
commercial or noncommercial situation.
  (w) Manufactures mercury fever thermometers.
  (x) Sells or supplies mercury fever thermometers unless the
thermometer is required by federal law, or is:
  (A) Prescribed by a person licensed under ORS chapter 677; and
  (B) Supplied with instructions on the careful handling of the
thermometer to avoid breakage and on the proper cleanup of
mercury should breakage occur.
  (y) Sells a thermostat that contains mercury unless the
thermostat is labeled in a manner to inform the purchaser that
mercury is present in the thermostat and that the thermostat may
not be disposed of until the mercury is removed, reused, recycled
or otherwise managed to ensure that the mercury does not become
part of the solid waste stream or wastewater. For purposes of
this paragraph, 'thermostat' means a device commonly used to
sense and, through electrical communication with heating, cooling
or ventilation equipment, control room temperature.
  (z) Sells or offers for sale a motor vehicle manufactured after
January 1, 2006, that contains mercury light switches.
  (aa) Violates the provisions of ORS 803.375, 803.385 or 815.410
to 815.430.
  (bb) Violates ORS 646A.070 (1).
  (cc) Violates any requirement of ORS 646A.030 to 646A.040.
  (dd) Violates the provisions of ORS 128.801 to 128.898.
  (ee) Violates ORS 646.883 or 646.885.
  (ff) Violates ORS 646.569.
  (gg) Violates the provisions of ORS 646A.142.
  (hh) Violates ORS 646A.360.
  (ii) Violates ORS 646.553 or 646.557 or any rule adopted
pursuant thereto.
  (jj) Violates ORS 646.563.
  (kk) Violates ORS 759.690 or any rule adopted pursuant thereto.
  (LL) Violates the provisions of ORS 759.705, 759.710 and
759.720 or any rule adopted pursuant thereto.
  (mm) Violates ORS 646A.210 or 646A.214.
  (nn) Violates any provision of ORS 646A.124 to 646A.134.
  (oo) Violates ORS 646A.095.
  (pp) Violates ORS 822.046.
  (qq) Violates ORS 128.001.
  (rr) Violates ORS 646.649 (2) to (4).
  (ss) Violates ORS 646A.090 (2) to (4).
  (tt) Violates ORS 87.686.
  (uu) Violates ORS 646.651.
  (vv) Violates ORS 646A.362.
  (ww) Violates ORS 646A.052 or any rule adopted under ORS
646A.052 or 646A.054.
  (xx) Violates ORS 180.440 (1) or 180.486 (1).
  (yy) Commits the offense of acting as a vehicle dealer without
a certificate under ORS 822.005.
  (zz) Violates ORS 87.007 (2) or (3).
  (aaa) Violates ORS 92.405 (1), (2) or (3).
  (bbb) Engages in an unlawful practice under ORS 646.648.
  (ccc) Violates ORS 646A.365.
  (ddd) Violates ORS 98.854 or 98.858 or a rule adopted under ORS
98.864.
  (eee) Sells a gift card in violation of ORS 646A.276.
  (fff) Violates ORS 646A.102, 646A.106 or 646A.108.
  (ggg) Violates ORS 646A.430 to 646A.450.
  (hhh) Violates a provision of ORS 744.318 to 744.384, 744.991
and 744.992.
  (iii) Violates a provision of ORS 646A.702 to 646A.720.
  (jjj) Violates ORS 646A.530 30 or more days after a recall
notice, warning or declaration described in ORS 646A.530 is
issued for the children's product, as defined in ORS 646A.525,
that is the subject of the violation.
  (kkk) Violates a provision of ORS 697.612, 697.642, 697.652,
697.662, 697.682, 697.692 or 697.707.
  (LLL) Violates the consumer protection provisions of the
Servicemembers Civil Relief Act, 50 U.S.C. App. 501 et seq., as
in effect on January 1, 2010.
  (mmm) Violates a provision of ORS 646A.480 to 646A.495.
  (nnn) Violates ORS 646A.082.
  (ooo) Violates ORS 646.647.
  (ppp) Violates ORS 646A.115.
  (qqq) Violates a provision of ORS 646A.405.
  (rrr) Violates ORS 646A.092.
  (sss) Violates a provision of ORS 646.644.
  (ttt) Violates a provision of ORS 646A.295.   { +
  (uuu) Violates a provision of section 1 of this 2012 Act. + }
  (2) A representation under subsection (1) of this section or
ORS 646.607 may be any manifestation of any assertion by words or
conduct, including, but not limited to, a failure to disclose a
fact.
  (3) In order to prevail in an action or suit under ORS 646.605
to 646.652, a prosecuting attorney need not prove competition
between the parties or actual confusion or misunderstanding.
  (4) An action or suit may not be brought under subsection
(1)(u) of this section unless the Attorney General has first
established a rule in accordance with the provisions of ORS
chapter 183 declaring the conduct to be unfair or deceptive in
trade or commerce.
  (5) Notwithstanding any other provision of ORS 646.605 to
646.652, if an action or suit is brought under subsection (1)(xx)
of this section by a person other than a prosecuting attorney,
relief is limited to an injunction and the prevailing party may
be awarded reasonable attorney fees.
  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) The interest charged, if any.
  (e) 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 as a result of a
determination of ineligibility made pursuant to ORS 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 311.666 is amended to read:
  311.666. As used in ORS 311.666 to 311.701:
  (1) 'County median RMV' means the median real market value
entered on the last certified assessment and tax roll for all
residential improved properties in the county in which a
homestead is located { +  that are classified as 1-0-1 pursuant
to the rule adopted by the Department of Revenue under ORS
308.215 + }.
  (2) 'Homestead' means the owner occupied principal dwelling,
either real or personal property, owned by the taxpayer and the
tax lot upon which it is located. If the homestead is located in
a multiunit building, the homestead is the portion of the
building actually used as the principal dwelling and its
percentage of the value of the common elements and of the value
of the tax lot upon which it is built. The percentage is the
value of the unit consisting of the homestead compared to the
total value of the building exclusive of the common elements, if
any.
  (3) 'Household income' has the meaning given that term in ORS
310.630.
  (4)(a) 'Net worth' means the sum of the current market value of
all assets, including real property, cash, savings accounts,
bonds and other investments, after deducting outstanding
liabilities.
  (b) 'Net worth' does not include the value of a homestead for
which deferral is claimed under ORS 311.666 to 311.701, the cash
value of life insurance policies on the life of a taxpayer or
tangible personal property owned by a taxpayer.
  (5) 'Person with a disability' means an individual who has been
determined to be eligible to receive or who is receiving federal
Social Security benefits due to disability or blindness,
including an individual who is receiving Social Security survivor
benefits in lieu of Social Security benefits due to disability or
blindness.
  (6) 'Tax-deferred property' means the property upon which taxes
are deferred under ORS 311.666 to 311.701.
  (7) 'Taxes' or 'property taxes' means ad valorem taxes,
assessments, fees and charges entered on the assessment and tax
roll.
  (8) 'Taxpayer' means an individual who has filed, as an
individual or jointly, a claim for deferral under ORS 311.666 to
311.701.
  (9)(a) 'Transferee' means, without limitation, an heir,
legatee, devisee, distributee of an estate of a deceased
individual, the assignee or donee of an insolvent individual or a
person acting in a fiduciary capacity on behalf of a transferee.
  (b) 'Transferee' does not mean a bona fide purchaser for value.
  (10) '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.
  SECTION 5. ORS 311.689 is amended to read:
  311.689. (1) { + (a) + }   { - On or before April 15 of the
third year for which deferral under ORS 311.666 to 311.701 is
claimed and every two years thereafter, all taxpayers claiming
the deferral must certify to the county assessor that the
homestead remains eligible for, and the taxpayers remain eligible
to claim, the deferral. - }  { + The Department of Revenue shall
certify the eligibility of each homestead granted, and the
respective taxpayers claiming, deferral under ORS 311.666 to
311.701, not less than once every three years.
  (b) The department shall notify the taxpayers in writing of the
obligation to certify eligibility under this subsection and the
taxpayers shall respond, by the means prescribed by the
department, within 60 days of receipt of the request.
  (c) Failure to respond as required under paragraph (b) of this
subsection disqualifies the homestead for deferral for the next
following property tax year. + }
  (2)(a) For any year in which the household income of the
taxpayers exceeds the amounts allowable under ORS 311.668, the
property taxes deferred under ORS 311.666 to 311.701 for that
year, including accrued interest, become payable by the
applicable due date prescribed in ORS 311.686 (1)(b) or (2).
  (b) The provisions of ORS chapters 305 and 314 apply to this
subsection in the same manner as those provisions are applicable
to an income tax deficiency.
  (c) The amount of deferred taxes payable under this subsection
shall bear interest from the date paid by the department   { - of
Revenue - }  until paid at the rate established under ORS 305.220
for deficiencies.
  (d) A deficiency may not be assessed under this subsection if
notice is not given to the taxpayer or spouse within three years
after the date that the department has paid the deferred taxes to
the county.
  (e) Upon payment of the amount assessed as a deficiency under
this subsection and any interest, the department shall execute a
release in the amount of the payment. The release shall be
conclusive evidence of the removal and extinguishment of the lien
under ORS 311.666 to 311.701 to the extent of the payment.
  (3) Subsection (2) of this section does not affect the
continued deferral of taxes that have been deferred for tax years
beginning before a tax year to which subsection (2) of this
section applies or the deferral of taxes for tax years beginning
after a tax year to which subsection (2) of this section applies,
provided subsection (2) of this section does not apply to those
tax years.
  (4) This section applies to all tax-deferred property, whether
the deferral under ORS 311.666 to 311.701 is claimed before or
after October 3, 1989.
  SECTION 6.  { + Not later than May 31, 2012, the Department of
Revenue shall report to the interim committees of the Legislative
Assembly related to revenue on the claim form to be supplied by
the department to taxpayers pursuant to ORS 311.672 (1)(a)(A) for
the property tax year beginning on July 1, 2012. + }
  SECTION 7. { +  The amendments to ORS 311.356 by section 3 of
this 2012 Act apply to determinations of ineligibility made on or
after September 29, 2011. + }
  SECTION 8.  { + This 2012 Act takes effect on the 91st day
after the date on which the 2012 regular session of the
Seventy-sixth Legislative Assembly adjourns sine die. + }
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