Bill Text: OR SB1015 | 2010 | 1st Special Session | Amended

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

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Bill Title: Relating to property taxation; and prescribing an effective date.

Spectrum: Unknown

Status: (Passed) 2010-03-04 - Effective date, May 27, 2010. [SB1015 Detail]

Download: Oregon-2010-SB1015-Amended.html

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     75th OREGON LEGISLATIVE ASSEMBLY--2010 Special Session

SA to SB 1015

LC 61/SB 1015-5

                      SENATE AMENDMENTS TO
                        SENATE BILL 1015

               By COMMITTEE ON FINANCE AND REVENUE

                           February 9

  On page 1 of the printed bill, line 2, after 'ORS' insert '
198.815, 221.050, 222.050, 307.518, 307.529, 307.535 and'.
  On page 3, delete lines 12 through 36 and insert:
  '  { +  SECTION 4. + }  { + (1) If a city or county approved an
exemption under ORS 307.600 to 307.637 for property used for
other than residential or housing purposes, the exemption from ad
valorem taxation applies for the term of the exemption approved
by the city or county as determined under ORS 307.612, provided
that the property for which the exemption was approved:
  ' (a) Was first approved for exemption under ORS 307.600 to
307.637 before August 26, 2009, for a tax year beginning before
July 1, 2009; and
  ' (b) Otherwise continues to be eligible for exemption under
ORS 307.600 to 307.637.
  ' (2) If, before January 1, 2010, a county assessor terminated
all or a portion of an exemption granted under ORS 307.600 to
307.637 for property described in subsection (1) of this section
because the exemption had been approved for or applied to
property used for other than residential or housing purposes, or
if, before January 1, 2010, a city, county or county assessor
issued a determination that all or a portion of an exemption for
property described in subsection (1) of this section was in error
because property used for other than residential or housing
purposes did not qualify for the exemption, the termination or
determination is reversed. + }
  '  { +  SECTION 5. + }  { + (1) If taxes on the exempt value
described in section 4 (1) of this 2010 Act have not been paid,
the taxes and any interest are abated.
  ' (2) If taxes have been paid on the value of property added to
the tax roll as a result of a termination or determination
described in section 4 (2) of this 2010 Act, the tax collector
shall refund the taxes. A refund of taxes under this section
shall be considered a refund described in ORS 311.812 (2) except
that interest shall be paid at the rate of one-half of one
percent per month or fraction of a month. Refunds and interest
associated with the refunds shall be withheld from future
distributions to the taxing districts that received the taxes
paid as a result of the termination or determination described in
section 4 (2) of this 2010 Act.
  ' (3) The county assessor and tax collector shall make the
necessary corrections in the records of their offices required by
this section and section 4 of this 2010 Act. + }
  '  { +  SECTION 6. + } ORS 307.518 is amended to read:
  ' 307.518. (1) Property or a portion of property that meets all
of the following criteria shall be exempt from taxation as
provided under ORS 307.515 to 307.523:
  ' (a) If unoccupied, the property:
  ' (A) Is offered for rental solely as a residence for low
income persons; or

  ' (B) Is held for the purpose of developing low income rental
housing.
  ' (b) If occupied, the property is occupied solely as a
residence for low income persons.
  ' (c) An exemption for the property has been approved as
provided under ORS 307.523, pursuant to an application filed
before January 1,   { - 2010 - }  { +  2020 + }.
  ' (d) The property is owned or being purchased by a nonprofit
corporation organized in a manner that meets the criteria for a
public benefit corporation, as described under ORS 65.001 (37) or
for a religious corporation, as described under ORS 65.001 (39).
  ' (e) The property is owned or being purchased by a nonprofit
corporation that expends no more than 10 percent of its annual
income from residential rentals for purposes other than the
acquisition, maintenance or repair of residential rental property
for low income persons or for the provision of on-site child care
services for the residents of the rental property.
  ' (2) For the purposes of this section, a nonprofit corporation
that has only a leasehold interest in property is considered to
be a purchaser of that property if:
  ' (a) The nonprofit corporation is obligated under the terms of
the lease to pay the ad valorem taxes on the real and personal
property used in the rental activity on that property; or
  ' (b) The rent payable has been established to reflect the
savings resulting from the exemption from taxation.
  ' (3) A partnership shall be considered a nonprofit corporation
for purposes of this section if:
  ' (a) A nonprofit corporation is a general partner of the
partnership; and
  ' (b) The nonprofit corporation is responsible for the
day-to-day operation of the property that is the subject of the
exemption under ORS 307.515 to 307.523.
  '  { +  SECTION 7. + } ORS 307.529 is amended to read:
  ' 307.529. (1) Except as provided in ORS 307.531, if, after an
application for exemption under ORS 307.517 has been approved
under ORS 307.527, the governing body finds that construction or
development of the exempt property differs from the construction
or development described in the application for exemption, or is
not completed on or before January 1,   { - 2010 - }  { +
2020 + }, or that any provision of ORS 307.515 to 307.523 is not
being complied with, or any provision required by the governing
body pursuant to ORS 307.515 to 307.523 is not being complied
with, the governing body shall give notice of the proposed
termination of the exemption to the owner, by mailing the notice
to the last-known address of the owner, and to every known
lender, by mailing the notice to the last-known address of every
known lender. The notice shall state the reasons for the proposed
termination and shall require the owner to appear at a specified
time, not less than 20 days after mailing the notice, to show
cause, if any, why the exemption should not be terminated.
  ' (2) If the owner fails to appear and show cause why the
exemption should not be terminated, the governing body shall
notify every known lender, and shall allow any lender not less
than 30 days after the date the notice of the failure to appear
and show cause is mailed to cure any noncompliance or to provide
assurance adequate to the governing body that all noncompliance
shall be remedied.
  ' (3) If the owner fails to appear and show cause why the
exemption should not be terminated, and the lender fails to cure
or give adequate assurance of the cure of any noncompliance, the
governing body shall adopt an ordinance or resolution stating its
findings terminating the exemption. A copy of the ordinance or
resolution shall be filed with the county assessor, and a copy
shall be sent to the owner at the owner's last-known address and
to the lender at the last-known address of the lender within 10
days after its adoption.
  '  { +  SECTION 8. + } ORS 307.535 is amended to read:
  ' 307.535. Notwithstanding any provision of ORS 307.515 to
307.523:
  ' (1) If the governing body finds that construction of the
housing unit otherwise entitled to exemption under ORS 307.517
was not completed by January 1,   { - 2010 - }  { +  2020 + },
due to circumstances beyond the control of the owner, and that
the owner had been acting and could reasonably be expected to act
in good faith and with due diligence, the governing body may
extend the deadline for completion of construction for a period
not to exceed 12 consecutive months.
  ' (2) If property granted exemption under ORS 307.515 to
307.523 is destroyed by fire or act of God, or is otherwise no
longer capable of owner-occupancy due to circumstances beyond the
control of the owner, the exemption shall cease but no additional
taxes shall be imposed upon the property under ORS 307.531 or
307.533.'.
  In line 37, delete '6' and insert '9'.
  In line 38, delete '7' and insert '10'.
  After line 39, insert:
  '  { +  SECTION 11. + } ORS 198.815 is amended to read:
  ' 198.815. (1) If the required number of written requests for
an election are filed with the county board on or before the date
of the final hearing or if the petition for formation includes a
permanent rate limit for operating taxes for the proposed
district, the board shall provide by order for the holding of an
election to submit to the electors the question of forming the
district. The board shall cause notice of the election to be
published by two insertions. If requests for an election are
filed by less than the required number of persons and no
permanent rate limit for operating taxes is included in the
petition, the county board shall dismiss the requests and enter
an order creating the district.
  ' (2) The order calling an election shall fix the date of the
election on the next available election date in ORS 255.345 for
which the filing deadline can be met. However, when the proposal
for formation includes a permanent rate limit for operating taxes
for the proposed district, the election shall be held on the date
of the next primary election or general election for which the
filing deadline can be met. The order shall also state that at
such election members of the district board will be voted for.
Candidates to be voted for as members of the first board of a
district shall be nominated as provided by ORS chapter 255 and
the principal Act of a district.
  ' (3) The order calling the election shall require the county
official in charge of elections to include with the ballot for
the election a map or other description of the boundaries of the
proposed district using streets and other generally recognized
features and a statement of the permanent rate, if any, proposed
for the district in the petition for formation under ORS 198.750
(1)(g). Such statement shall comply with the requirements of ORS
250.035. The map or other description and statement required by
this subsection shall be supplied by the county board.
  ' (4)(a) When the proposal for formation includes a permanent
rate limit for operating taxes for the proposed district, the
ballot title shall clearly indicate that a single question is
being proposed which is:
  ' (A) Whether the proposed district shall be formed; and
  ' (B) Whether the permanent rate limit specified in the ballot
title shall be adopted as the maximum rate of operating taxes for
that district.
  ' (b) The ballot title for the election shall be in compliance
with ORS 250.036.
  ' (5) When the proposal for formation includes a permanent rate
limit for the proposed district, the district shall be authorized
to impose operating taxes not in excess of the permanent rate
limit if the proposal is approved by a majority of the votes cast
and:
  ' (a) At least 50 percent of registered electors eligible to
vote in the election cast a ballot; or
  ' (b) The election is   { - a general election in an
even-numbered year - }  { +  held in May or November of any
year + }.
  ' (6) If a proposed county service district is subject to
dissolution unless a determination of public need for continued
existence is made, the ballot title shall include the fiscal year
in which dissolution will occur and statement that the district
will dissolve unless the board of directors determines that there
is a public need for continued existence.
  '  { +  SECTION 12. + } ORS 221.050 is amended to read:
  ' 221.050. (1) The county court shall submit the proposition
for incorporation determined as provided in ORS 221.040 to the
electors registered in the area proposed to be incorporated. At
the same election, five city council members for the proposed
city shall be elected.
  ' (2) ORS chapters 246 to 260 govern the conduct of an election
under this section, including the nomination and election of the
first city council, except as follows:
  ' (a) A nominating or primary election for the purpose of
nominating candidates for the city council shall not be held.
  ' (b) Notwithstanding ORS 249.037, a nominating petition or
declaration of candidacy must be filed with the county clerk not
sooner than the 100th day and not later than the 70th day before
the date of the election.
  ' (c) At the time of filing a declaration of candidacy, a
candidate for the first city council shall pay to the officer
with whom the declaration is filed a fee of $25.
  ' (d) A nominating petition shall contain at least 25
signatures of electors in the area proposed to be incorporated or
a number of signatures of electors equal to at least 10 percent
of the number of electors in the area proposed to be incorporated
as of the date the election is ordered under ORS 221.040,
whichever is less.
  ' (3) The proposed ballot title for an election under this
section shall be in compliance with ORS 250.036.
  ' (4) Not later than the 30th day after an election called
under ORS 221.040 the county court calling the election shall
proclaim whether the results of the election favor incorporation.
The county court also shall proclaim which candidates for city
council are elected, if the results of the election favor
incorporation. The results of the election favor incorporation if
a majority of the votes cast on the proposition favors
incorporation and:
  ' (a) At least 50 percent of registered electors eligible to
vote in the election cast a ballot; or
  ' (b) The election is   { - a general election in an
even-numbered year - }  { +  held in May or November of any
year + }.
  ' (5) If the results of the election favor incorporation:
  ' (a) The area described in the notice of election is
incorporated as a city from the date of the election;
  ' (b) The proposed rate limit for operating taxes submitted to
and approved by the electors at the election shall be the
permanent rate limit for operating taxes for the new city; and
  ' (c) The five council members elected under subsection (2) of
this section shall take office not later than the 10th day next
following the proclamation on the proposition and council
election.
  '  { +  SECTION 13. + } ORS 222.050 is amended to read:
  ' 222.050. (1) This section applies if a consolidation or
merger proposes to consolidate or merge two or more cities and at

least one of the cities has not previously imposed ad valorem
property taxes.
  ' (2) The question of the consolidation or merger that is
submitted to the electors of the city that has not previously
imposed ad valorem property taxes may also propose a permanent
rate limit on operating taxes as described in section 11 (3)(c),
Article XI of the Oregon Constitution.
  ' (3) The permanent rate limit proposed under subsection (2) of
this section shall be taken into account in determining the
permanent rate limit for the city following consolidation or
merger as provided in section 11 (3)(d), Article XI of the Oregon
Constitution.
  ' (4) The question of the consolidation or merger that is
submitted to the electors of the city that has not previously
approved operating taxes shall be considered approved by such
electors if a majority of the votes cast are in favor of the
consolidation or merger and:
  ' (a) At least 50 percent of registered voters eligible to vote
in the election cast a ballot; or
  ' (b) The election is   { - a general election in an
even-numbered year - }  { +  held in May or November of any
year + }.
  ' (5) ORS 250.036 applies to a ballot title for an election
described in this section.
  ' (6) Notwithstanding that a majority of all electors voting on
the question of consolidation or merger approve the consolidation
or merger, the consolidation or merger shall not be considered
approved if the voting participation requirements in subsection
(4) of this section have not been met in the city to which this
section applies.
  ' (7) If the city to which this section applies approves the
consolidation or merger but the consolidation or merger is not
approved by the other electors voting on the question or for some
other reason does not occur, no permanent rate limit for
operating taxes shall be established for the city as a result of
the election.
  '  { +  SECTION 14. + }  { + The amendments to ORS 198.815,
221.050 and 222.050 by sections 11 to 13 of this 2010 Act apply
to elections held on or after the third Tuesday in May 2010,
regardless of when the election results are declared or
proclaimed. + } ' .
  In line 40, delete '8' and insert '15'.
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