68th OREGON LEGISLATIVE ASSEMBLY--1995 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 1501
House Bill 2265
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Committee on
Revenue and School Finance for the Oregon State Association of
County Assessors)
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.
Allows notice of error and omitted property corrections to
assessment and tax rolls to be sent by regular rather than
certified mail.
Changes dates for submission of information and making
determinations as to state support for county property tax
assessment and appraisal systems.
Requires determination of both land and improvement values on
appeal of land or improvement value for property tax purposes, if
determination is needed to reach correct total real market or
specially assessed value for particular property under appeal.
A BILL FOR AN ACT
Relating to taxation; creating new provisions; and amending ORS
305.115, 309.110, and 311.211 and section 2, chapter 796,
Oregon Laws 1989.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 311.211 is amended to read:
311.211. (1) If the person or party so notified does not appear
or if the person or party appears and fails to show any good and
sufficient cause why the assessment shall not be made, the
assessor shall proceed to correct the assessment or tax roll or
rolls from which the property was omitted. The assessor shall add
the property thereto, with the proper valuation, and extend
thereon taxes at the millage rate applicable in the code area in
which the property was located for each year as to which it was
omitted. To carry out the correction of a tax roll or rolls the
assessor shall send a written statement to the tax collector
instructing the tax collector to make the necessary changes on
the tax roll. The statement shall contain all of the information
needed by the tax collector to make the changes in the roll and
it shall be dated and signed by the assessor or the deputy of the
assessor. The tax collector shall then correct the tax roll.
(2) Immediately after the assessor corrects the assessment or
tax roll the assessor shall file in the office of the assessor a
statement of the facts or evidence on which the assessor based
the correction and notify the taxpayer by written notice, sent by
{ - certified - } { + regular + } mail to the taxpayer's
last-known address, of the date and amount of the correction.
(3) To enable the assessor to comply with this subsection, the
assessor is invested with all the powers of the county clerk
under the law in force during the years for which correction may
be made under ORS 311.207 to 311.213 and thereafter.
(4) Any person aggrieved by an assessment made under ORS
311.207 to 311.213 may appeal to the Department of Revenue within
90 days after the correction of the roll by giving notice to the
assessor and otherwise proceeding in the manner provided for
appeals from the board of equalization. No appeal of the value
assigned under this section may be made to the board of
equalization or to the board of ratio review under ORS 309.100.
SECTION 2. Section 2, chapter 796, Oregon Laws 1989, is amended
to read:
{ + Sec. 2. + } (1) As used in this section and sections 3 to
7 { + , chapter 796, Oregon Laws 1989 + } { - of this 1989
Act - } :
(a) 'Department' means the Department of Revenue.
(b) 'Expenditures' has the meaning given the term for purposes
of ORS 294.305 to 294.520 and may be further defined by rule of
the department. 'Expenditures' does not include any item or class
of items that cannot reasonably be allocated to an organizational
unit.
(c) 'Expenditures for assessment and taxation' means
expenditures for any of the activities, functions or services
required of a county in the assessment, equalization, levy,
collection or distribution of property taxes under ORS chapters
305, 306, 307, 308, 309, 310, 311, 312 and 321. 'Expenditures for
assessment and taxation' specifically includes expenditures for
appraising principal or secondary industrial properties, the
responsibility for the making of which has been delegated by the
department to a county under ORS 306.126 (3).
(d) 'Grant' has the meaning given the term for purposes of ORS
294.305 to 294.520, and is further described under section
3 { + , chapter 796, Oregon Laws 1989 + } { - of this 1989
Act - } .
(2) On or before { - February 1 of each year, or upon another
date as the department shall designate - } { + __________ + }
, each county shall file with the department a true copy of its
estimates of expenditures for assessment and taxation for the
ensuing year as prepared for purposes of ORS 294.352 but in
accordance with any rules adopted by the department.
(3) Upon receipt of the estimate, the department shall review
the estimate to determine its adequacy to provide the resources
needed to achieve compliance with ORS 308.027, 308.232, 308.234,
ORS chapter 309 and other laws requiring equality and uniformity
in the system of property taxation within the county in order
that the same equality and uniformity may be achieved throughout
the state.
(4) If, upon initial review of the estimate, the department
determines that the proposed expenditures, or any of them, are
not at the level or of the type needed to achieve adequacy, the
department shall notify the county governing body. The notice
shall contain an explanation of the reasons for the determination
and may describe specific items or classifications of expenditure
which the department has determined are required, or are not
required, in order to achieve adequacy. The notice shall fix the
date upon which a conference with the county governing body or
representatives of the county governing body shall be held.
(5)(a) Subject to paragraph (b) of this subsection, if, upon
initial review, or upon or after conference held on the date
specified in the notice under subsection (4) of this section, or
another date or dates convenient to the department and the county
governing body, the department determines that the expenditures
as initially filed, or that the expenditures as agreed upon at
the conference, are at the level and of the type needed to
achieve adequacy for that year or over a period of years under a
plan presented as described under section 4 { + , chapter 796,
Oregon Laws 1989, + } { - of this 1989 Act - } , the
department shall certify to the county governing body that its
estimate of expenditures for assessment and taxation so
determined are adequate and that the county will be included in
the computation made under section 3 { + , chapter 796, Oregon
Laws 1989, + } { - of this 1989 Act - } for the purpose of
determining the amount of that county's quarterly grant. The
department shall include in the certification an estimate of the
percentage share of the funds available in the County Assessment
Function Funding Assistance Account that the county will receive
under section 3 { + , chapter 796, Oregon Laws 1989, + } { - of
this 1989 Act - } and an estimate of the total amount of the
grant that will be forthcoming to the county from that account
for the ensuing year on account of the certification.
(b) The department shall not certify expenditures under this
subsection that the department determines are in excess of the
expenditures necessary to meet the requirements of subsection (3)
of this section.
(6) Any certification issued under subsection (5) of this
section shall be issued as of the { - April 30 - } { +
__________ + }following the filing of the estimate of
expenditures under subsection (2) of this section. If, as of
{ - April 30 - } { + __________ + } , agreement has not been
reached between the department and the county governing body upon
the estimate, the department shall issue a denial of
certification.
(7) A county may appeal the determination of the department
under subsection (5)(b) of this section or the denial of
certification issued under subsection (6) of this section to the
Director of the Oregon Department of Administrative Services.
Appeal shall be filed within 10 days after the date that the
denial of certification is issued. The sole issue upon appeal
shall be the adequacy of expenditures for assessment and taxation
as filed with the department under subsection (2) of this
section, and the determination, if any, made by the department
under subsection (5)(b) of this section. If the Oregon Department
of Administrative Services does not issue an order approving the
expenditures before July 1 of the fiscal year for which the
expenditures are proposed, the certification for purposes of
sections 1 to 7 { + , chapter 796, Oregon Laws 1989, + } { - of
this 1989 Act - } shall be considered denied.
SECTION 3. ORS 309.110 is amended to read:
309.110. (1) { + (a) + } The action of the board of
equalization or the board of ratio review upon every petition for
the reduction of a particular assessment, and the determinations
of the board that certain corrections, additions to or changes in
the roll shall be made, shall be entered of record by formal
order. { + If the petition is for reduction in the value of land
only and does not include buildings, structures and improvements,
the board may reduce or increase the value of any buildings,
structures and improvements in order that the real market or
assessed value for the particular assessment as determined by the
board may be entered. If the petition is for reduction in the
value of buildings, structures and improvements only and does not
include the land, the board may reduce or increase the land value
in order that real market or assessed value for the particular
assessment as determined by the board may be entered.
(b) + } A copy of the order as to each petition shall be sent,
by mail, to the petitioner at the post-office address given in
the petition. When a copy of the board's order is personally
delivered to the petitioner, the requirement to mail a copy of
the order is waived. A copy of each order shall be delivered to
the assessor and the officer in charge of the roll on the same
day that the order is mailed or delivered to the petitioner. The
orders of the board shall specify what changes shall be made in
the tax roll, if any, and shall direct the officer in charge of
the roll to make them. The district attorney shall be available
to aid the board in the preparation of its orders.
(2) The board may issue amended orders to correct clerical
errors appearing in its original orders.
(3) As used in this section a clerical error is an error in the
order which either arises from an error in the minutes of the
board or which is a failure to correctly reflect the minutes of
the board, and which, had it been discovered prior to the order
being issued would have been corrected as a matter of course, and
the information necessary to make the correction is contained in
the minutes of the board. Such errors include, but are not
limited to arithmetic and copying errors and omission or
misstatement of identification of property.
(4) Amended orders may only be issued during the board's
session, or by call of the chairperson, within 30 days after
final adjournment of the session.
(5) The provisions of subsection (1) of this section shall
apply to amended orders, unless the context requires otherwise.
Amended orders shall be mailed to the petitioner and delivered to
the assessor and the officer in charge of the roll not later than
five days after the adjournment of the board's meetings or five
days after the 30-day period provided for in this section, if
issued during the 30-day period.
SECTION 4. ORS 305.115 is amended to read:
305.115. (1) The Director { + of the Department of Revenue + }
shall make the final determinations on all petitions and appeals
which are to be written into orders subject to appeal to a court
of law. The department shall grant a hearing upon the appeal
before the director or before a hearings officer appointed by the
director to hear the appeal. Testimony shall be taken under oath
or affirmation administered by the director, deputy director or
hearings officer. In the event the hearing is not conducted by
the director or deputy director, a summary of the evidence, with
recommendations, shall be prepared by the hearings officer and
reviewed by the director prior to making the order. If the
director proposes to modify the recommendation of the hearings
officer, the department shall prepare a statement of the
modifications and reasons therefor and shall serve on all parties
to the hearing copies of the hearings officer's recommendation,
the modified order and the statement of modification. If the
modification of the hearings officer's recommendation is based on
evidence received by the director outside of the hearings record,
before issuing a final order the department shall notify the
parties and reopen the hearing for the taking of the new evidence
and to allow the parties to respond to the new evidence.
(2) The hearing shall be held at the offices of the Department
of Revenue at Salem, Oregon, or may, within the discretion of the
department, be held at different places in the State of Oregon,
as designated by the department. The hearing may be adjourned and
continued from time to time and place to place as ordered by the
department.
(3) Whenever in the conduct of a hearing the department shall
deem it appropriate, the department or hearings officer may use
the discovery procedures provided for in ORS 305.190, but the
issuance of a subpoena shall be subject to ORS 305.420 (5), in
addition to ORS 305.190.
(4) { + (a) + } The department shall prepare and file an order
on each appeal, granting or denying relief or taking such action
as considered appropriate. Where the determination of real market
value or the correct valuation of any property subject to special
assessment is an issue before the department, the department may
determine such value on the basis of the evidence before it,
without regard to the value requested in the petition or appeal.
{ +
(b) If the order of the board of equalization or board of ratio
review that is under appeal is limited to land value only, or to
the value of buildings, structures and improvements only, and
either party to the appeal to the department presents evidence
that the total value of the particular assessment is not its real
market value, or is not its correct value under a special
assessment law, the department shall consider and determine both
a value for the land and a value for the buildings, structures
and improvements, in order that the real market value, or the
correct value for special assessment, for the entire particular
assessment is determined.
(c) + }Subject to judicial review by the Oregon Tax Court and
the Supreme Court, the order shall determine finally all the
questions of law and fact arising in the appeal under the tax
laws of the State of Oregon. Orders shall be served as provided
in ORS 306.805, and the department shall also serve a copy of its
order by certified mail upon each intervenor in the appeal and
each public officer affected by the order. The order is binding
upon the taxpayer, all county officers and all other persons
affected thereby until reversed or modified upon review by the
Oregon Tax Court.
(5) In all cases where the department is required by law to
determine the tax, the department shall make a determination of
the amount of tax due, including any penalty and interest
thereon. The order shall state the amount of the tax due, with
penalty and interest, either as originally assessed or as
redetermined, and shall order the payment of any taxes, interest
and penalty found to be due and unpaid or order a refund to the
taxpayer of the amount, if any, paid in excess of the tax found
to be due, with interest thereon as provided in the revenue and
tax laws. Where there has been an overpayment of any tax, the
amount of such overpayment and the interest thereon shall be
credited against any penalty, interest or tax then due from the
taxpayer (or against any other amount the department is
authorized by law to collect by offset), and only the balance
shall be refunded.
(6) If the person appealing has failed prior to the time of the
appeal, without good cause, to file any return required by law
within the time prescribed by law, or has filed a fraudulent
return, or, having filed an incorrect return, has failed, after
notice, to file a proper return, the department shall not reduce
or refund so much of the amount of the tax involved in the
hearing as it may find that the taxpayer owes for any other year
or years. However, the department shall first notify the
taxpayer by actual notice at the time of the hearing on the
appeal, or by not less than 30 days' written notice sent to the
taxpayer by certified mail, of the amount of tax not to be
reduced or refunded and the reasons for the department's proposed
action. The taxpayer may request a hearing on the matter within
30 days of such notice, either by a request made at the time of
the hearing or by a written request to the department.
Thereafter, the department shall set a time and place for the
hearing. If the notice by the department is sent more than 30
days prior to the hearing on appeal, the matter shall be heard as
a part of the appeal.
(7) Nothing contained in this section or in ORS 305.265 or
305.270 shall preclude the informal disposition of a controversy
by stipulation, agreed settlement, consent orders or default,
through the holding of an informal conference, or otherwise.
(8) If no appeal is taken to the Oregon Tax Court, all officers
having charge of the assessment and tax rolls on which any
property assessments appear that are involved in the department's
order, shall correct the same in accordance with the department's
order, and taxes shall be refunded or additional taxes collected
by the proper officers.
(9) Within the time for an appeal to the Oregon Tax Court from
a department order, the department may:
(a) Amend the order. The amended order shall be issued within
such appeal time and shall be served in the same manner as
required for the original order.
(b) Rescind the order. A new order shall be issued, but may be
issued after the time for an appeal of the original order to the
Oregon Tax Court has expired. The new order shall be served in
the same manner as required for the original order.
(10)(a) A party aggrieved by an amended order or a new order
shall have 60 days from the date of the amended order or new
order in which to appeal to the Oregon Tax Court.
(b) If an appeal has been taken from the original order to the
Oregon Tax Court, the amended order or new order may be
substituted in the tax court appeal for the original order, and
the plaintiff shall have an additional 60 days from the date of
the amended order or new order in which to amend the complaint to
conform to the amended order or new order.
(11) The department may at any time correct an order that has
not been appealed to the tax court to remedy a clerical error
which does not alter the rights or obligations determined in the
original order. The corrected order shall be served in the same
manner as required for the original order, but shall not extend
the time for appeal of the original order to the Oregon Tax
Court.
SECTION 5. { + The amendments to ORS 305.115 and 309.110 by
sections 3 and 4 of this Act apply to appeals of value for tax
years beginning on or after July 1, 1995. + }
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