Chapter 20 Oregon Laws 1999

Session Law

AN ACT

HB 2044

Relating to taxation; creating new provisions; and amending ORS 308.425.

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

SECTION 1. ORS 308.425 is amended to read:

308.425. (1) If, during any tax year, any real or personal property is destroyed or damaged by fire or act of God, the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property, may apply to the tax collector for proration of the taxes imposed on the property for the tax year [in which the property was destroyed and for any portion of the succeeding tax year in which the destruction has not been taken into account in the assessed value of the property applicable to that tax year].

(2) Application for proration of taxes under subsection (1) of this section shall be made not later than the end of the tax year or 30 days after the date the property was destroyed or damaged, whichever is later.

(3)(a) For property that is totally destroyed, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that the property was in existence during the tax year. The tax collector shall cancel the remainder of the taxes imposed on the property for the tax year [and for the portion of the succeeding tax year, if the destruction was not taken into account on the assessment date applicable to the succeeding tax year].

(b) For property that is damaged, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that preceded the month during which the property was damaged. For the month in which the property was damaged, and for each month of the tax year thereafter in which the property remains damaged [(and for each month of the succeeding tax year in which the property remains damaged, if the damage was not taken into account on the assessment date applicable to that tax year)], the tax collector shall collect that percentage of one-twelfth of the taxes imposed on the property that the [assessed value of the property before the damage bears to the real market value or assessed value of the property (whichever is less) after] real market value or the assessed value of the property after the damage (whichever is less) bears to the assessed value of the property before the damage. The assessor shall advise the tax collector of the value percentage required under this paragraph. The tax collector shall cancel any taxes not to be collected due to this paragraph.

(4) If the damaged property to which this section applies is a manufactured structure that is moved to another county after being damaged, the owner shall advise the tax collector of the new location of the manufactured structure.

[(5) For the tax year for which the destruction or damage to the property is taken into account on the assessment date, or for which the repair or replacement of the destruction or damage is taken into account, and for succeeding tax years, the property shall be valued at the property's assessed value as of the January 1 assessment date and no proration under this section shall be made.]

[(6)] (5) That portion of the property that is damaged property and that is subsequently repaired shall be considered to be new property or new improvements to property under ORS 308.153 for the assessment year in which the repairs or replacements are first taken into account.

SECTION 2. (1) If, during the period beginning on January 1 and ending on July 1 of an assessment year, any real or personal property is destroyed or damaged by fire or act of God, the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in possession or owner in the case of personal property, may apply to the county assessor to have the real market and assessed value of the property determined as of July 1 of the current assessment year.

(2) The person described in subsection (1) of this section shall file an application for assessment under this section with the county assessor on or before August 1 of the current year.

(3) If the conditions described in subsection (1) of this section are applicable to the property, then notwithstanding ORS 308.210, the property shall be assessed as of July 1, at 1:00 a.m. of the assessment year, in the manner otherwise provided by law.

SECTION 3. Section 2 of this 1999 Act and the amendments to ORS 308.425 by section 1 of this 1999 Act apply to tax years beginning on or after July 1, 2000.

SECTION 4. ORS 308.425 and 308.440 and section 2 of this 1999 Act are added to and made a part of ORS chapter 308.

Approved by the Governor April 16, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date October 23, 1999

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