Chapter 363
AN ACT
HB 2233
Relating to liens on tax-deferred property; amending ORS 311.673,
311.675, 311.679 and 311.690.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 311.673 is amended to read:
311.673. (1) The
Department of Revenue shall have a lien against [the] tax-deferred property for [the]
payment of [the] deferred taxes plus
interest on the deferred taxes [thereon]
and any fees paid [to the county clerk]
by the department in connection with the filing, recording, release or
satisfaction of the lien. The liens for deferred taxes shall attach to the
property on July 1 of the year in which the taxes were assessed. The deferred
property tax liens shall have the same priority as other real property tax liens
except that the lien of mortgages, trust deeds or security interests [which are] that is filed,
recorded or noted on any certificate of title or in any record maintained by
the Department of Consumer and Business Services pursuant to ORS 446.566 to
446.646 prior in time to the attachment of the lien for deferred taxes
shall be prior to the liens for deferred taxes.
(2) The deferred
property tax lien may be foreclosed by the department as if it were a
purchase money mortgage under ORS chapter 88. The court may award reasonable
attorney fees to the department if the department prevails in a foreclosure
action under this section. The court may award reasonable attorney fees to a
defendant who prevails in a foreclosure action under this section if the court
determines that the department had no objectively reasonable basis for
asserting the claim or no reasonable basis for appealing an adverse decision of
the trial court.
(3) Receipts from
foreclosure proceedings shall be credited in the same manner as other repayments
of deferred property taxes under ORS 311.701.
(4) This section applies
only to deferred property tax liens arising prior to October 3, 1989.
SECTION 2.
ORS 311.675 is amended to read:
311.675. (1) In each
county in which there is tax-deferred property, the Department of Revenue shall
cause to be recorded in the mortgage records of the county[,] a list of tax-deferred properties [of] that lie in the county. The list shall contain a
description of the property as listed on the assessment roll together with the
name of the owner as listed [thereon]
on the assessment roll.
(2)(a) [Except as provided in ORS 311.679,] The
recording of [the] tax-deferred
properties under subsection (1) of this section is notice that the Department
of Revenue claims a lien against those properties in the amount of the
deferred taxes plus interest on the deferred taxes together with any
fees paid [to the county clerk] by
the department in connection with the filing, recording, release or
satisfaction of the lien. [, even
though the amount of taxes, interest or fees is not listed.]
(b) If the recording
of tax-deferred properties under subsection (1) of this section occurred prior
to January 1, 1990, the recording is notice that the department claims a lien
against those properties in the amount of the deferred taxes plus interest on
the deferred taxes together with any fees paid by the department in connection
with the filing, recording, release or satisfaction of the lien, whether or not
the amount of taxes, interest or fees is listed.
(3)(a) When an ownership
document is issued under ORS 446.566 to 446.646, or issuance of the document is
pending, for a tax-deferred manufactured structure assessed as personal
property under ORS 308.875, the Department of Revenue shall file with the
Department of Consumer and Business Services an application for notation of the
deferred property tax lien as a security interest on behalf of the State of
Oregon. The Department of Consumer and Business Services shall note the lien as
a security interest in the same manner as other security interests in
manufactured structures. A lien noted as a security interest in records
maintained by the Department of Consumer and Business Services pursuant to ORS
446.566 to 446.646 shall have the same legal effect as other security interests
in manufactured structures.
(b) For any other
tax-deferred homestead assessed as personal property, the Department of Revenue
may file notice of the deferred property tax lien as a security interest on
behalf of the State of
[(3)] (4)(a) Notwithstanding the provisions of ORS 182.040 to
182.060 and 205.320 relating to the time and manner of payment of fees to the
county clerk, the department shall not be required to pay any filing, indexing
or recording fees to the county in connection with the filing,
recording, release or satisfaction of liens against tax-deferred properties of
that county in advance or at the time entry is made. The manner of payment of
the fees shall be as provided in ORS 205.395 for the payment of fees for filing,
recording and making entry of warrants or orders in the County Clerk Lien
Record.
(b) The Department of
Revenue shall pay filing fees for any application for notation of the deferred
property tax lien as a security interest in tax-deferred properties to the
Department of Consumer and Business Services as provided in ORS 446.646 or in
rules adopted under ORS 446.646.
(c) If the Department of
Revenue files notice of the deferred property tax lien as a security interest
on behalf of the State of Oregon with the office of the Secretary of State or
with any other designated filing office under subsection (3) of this section, the
department shall pay filing fees to the Secretary of State or to the other
filing office pursuant to ORS chapter 79.
SECTION 3.
ORS 311.679 is amended to read:
311.679. (1) At the time
that the taxpayer elects to defer property taxes under ORS 311.666 to 311.701
or if the taxpayer has elected to defer property taxes prior to [January 1, 1990, or between January 1, 1990
and June 30, 1990] July 1, 1990, the Department of Revenue shall
estimate the amount of property taxes that will be deferred for tax years
beginning on or after July 1, 1990, interest [thereon] on the deferred taxes and any fees paid [to the county clerk] by the department
in connection with lien filing, recording, release or satisfaction.
Thereafter, the department shall have a lien in the amount of the estimate.
(2) The lien created
under subsection (1) of this section shall attach to the property to which the
election to defer relates on July 1 of the tax year of initial deferral or on
July 1, 1990, whichever is applicable.
(3) The lien created
under subsection (1) of this section in the amount of the estimate shall have
the same priority as other real property tax liens except that the lien of
mortgages, trust deeds or security interests [which are] that is filed, recorded or noted on a certificate
of title or in any record maintained by the Department of Consumer and
Business Services pursuant to ORS 446.566 to 446.646 prior in time to the
attachment of the lien for deferred taxes shall be prior to the liens for
deferred taxes.
(4) If during the period
of tax deferment, the amount of taxes, interest and fees exceeds the estimate,
the Department of Revenue shall have a lien for the amount of the
excess. The liens for the excess shall attach to the property on July 1 of the
tax year in which the excess occurs. The lien for the excess shall have the
same priority as other real property tax liens, except that the lien of
mortgages, trust deeds or security interests that is filed, recorded or
noted on any certificate of title or in any record maintained by the
Department of Consumer and Business Services pursuant to ORS 446.566 to 446.646
prior in time to the date that the Department of Revenue records an
amendment to its estimate to reflect its lien for the excess shall be prior to
the lien for the excess.
(5)(a) [Notwithstanding ORS 311.675 (2),] The
notice of lien for deferred taxes recorded as provided in ORS 311.675 (1) and
(2) arising on or after October 3, 1989, shall list the amount of the estimate
of deferred taxes, interest and fees made by the department under subsection
(1) of this section. [and] Any
amendment to the notice of lien to reflect a lien for excess, as
described under subsection (4) of this section, shall list the amount of the
excess that the department claims as lien.
(b) If notice of
lien with respect to any homestead has been filed or recorded as
provided under ORS 311.675 (1) [and (2)]
to (3) prior to January 1, 1990, and the lien has not been released or
satisfied, the department shall cause a further notice of lien to be recorded
in the mortgage records of the county. The further notice of lien shall list
the amount of the estimate of deferred taxes and interest made by the
department under subsection (1) of this section and any amendment to the notice
to reflect a lien for excess, described under subsection (4) of this section,
and shall list the amount of the excess that the department claims as lien.
(6) A lien created under
this section may be foreclosed by the department as if it were a purchase money
mortgage under ORS chapter 88. The court may award reasonable attorney fees to
the prevailing party in a foreclosure action under this section.
(7) Receipts from
foreclosure proceedings shall be credited in the same manner as other
repayments of deferred property taxes under ORS 311.701.
(8) By means of
voluntary payment made as provided under ORS 311.690, the taxpayer may limit
the amount of the lien for deferred taxes created under this section. If the
taxpayer desires that the limit be reflected in the records of the county, the
taxpayer must request, subject to any rules adopted by the department, that the
department cause a partial satisfaction of the lien to be recorded in the
county. Upon receipt of such a request, the department shall cause a partial satisfaction,
in the amount of the voluntary payment, to be [so] recorded. Nothing in this subsection shall affect the priority
of the liens of the department, as originally created under subsections (1) and
(4) of this section.
(9) Nothing in this
section shall affect any lien arising under ORS 311.666 to 311.701 for taxes
assessed before January 1, 1990. However, except as provided under this
section, no lien for taxes shall arise under ORS 311.666 to 311.701 for taxes
assessed after December 31, 1989.
(10)(a) Notwithstanding
any other provision of this section, a lien arising under this section as the
result of a deferral of property taxes on the homestead of a disabled person
who is younger than 62 years of age during the tax year may not exceed 90 percent
of the real market value of the homestead.
(b) Property may
continue to qualify for property tax deferral under ORS 311.666 to 311.701 even
though the amount of property taxes being paid by the department may not
increase the amount of the lien arising under this section.
(11) This section first
applies to liens for deferred taxes arising on or after October 3, 1989.
SECTION 4.
ORS 311.690 is amended to read:
311.690. (1) All
payments of deferred taxes shall be made to the Department of Revenue.
(2) Subject to
subsection (3) of this section, all or part of the deferred taxes and accrued
interest may at any time be paid to the department by:
(a) The taxpayer or the
spouse of the taxpayer.
(b) The next of kin of
the taxpayer, heir at law of the taxpayer, child of the taxpayer or any person
having or claiming a legal or equitable interest in the property.
(3) A person listed in
subsection (2)(b) of this section may make [such]
payments of deferred taxes under this section only if no objection is
made by the taxpayer within 30 days after the department deposits in the mail
notice to the taxpayer of the fact that [such]
payment of deferred taxes has been tendered.
(4) Any payment made
under this section shall be applied first against accrued interest and any
remainder against the deferred taxes. [Such]
Payment of deferred taxes does not affect the deferred tax status of the
property. Unless otherwise provided by law, [such] payment of deferred taxes does not give the person
paying the taxes any interest in the property or any claim against the estate,
in the absence of a valid agreement to the contrary.
(5) When the deferred
taxes and accrued interest are paid in full and the property is no longer
subject to deferral, the department shall prepare, file and record documents
necessary to effect [and record in
the county in which the property is located a] a release or
satisfaction of deferred property tax lien.
Approved by the Governor June 12, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date January 1, 2008
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