ORS 275.275
Distribution of proceeds
(1)
The proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) must be:(a)
First, applied to refund the county general fund for the full amount actually paid by the county to advance the state tax upon all properties upon which the county has foreclosed liens for delinquent taxes;(b)
Second, applied to the county general fund in an amount equal to the penalty and fee described in ORS 312.120 (Period during which property held by county) for each property upon which the county has foreclosed a lien for delinquent taxes;(c)
Third, applied to refund the county general fund for all the costs and expenses actually incurred by the county in the maintenance and supervision of the properties and in any suits or proceedings by the county to quiet title to or to defend the county’s title to property sold, including suits or land use proceedings to ascertain and determine the actual boundaries of the properties;(d)
Fourth, in a county with a population of 650,000 or more:(A)
First, distributed to a local government, as defined in ORS 174.116 (“Local government” and “local service district” defined), that has filed a notice, in accordance with ORS 275.130 (Claims of municipal corporations against the land to be filed prior to sale), relating to a local improvement lien arising under ORS 223.680 (Local government programs to finance utilities improvements to real property) or 223.685 (Local government programs to finance seismic rehabilitation of real property) against the property in the principal amount of the lien, plus any interest and penalties that have accrued to the date of sale of the property.(B)
Second, if the proceeds arise under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) from the sale of real property acquired by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens, applied to an account or fund created in the discretion of the county treasurer, in or outside of the county general fund, for use under ORS 271.330 (Relinquishing title of property not needed for public use) to provide:(i)
Funds for housing placement and retention support services for youth and families with children;(ii)
Flexible rental assistance for housing placement for youth and families with children; or(iii)
Funds to develop new low income housing that is affordable to youth and families with children with 30 percent or lower median family income.(C)
Third, except as provided in subparagraph (B) of this paragraph, applied to the county general fund; and(e)
Fifth, except as provided in paragraph (d) of this subsection, if the proceeds arise from the sale of real property acquired by the county in a manner other than by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens, applied to the county general fund. The proceeds described in this paragraph include payments for the real property sold under a purchase agreement pursuant to ORS 275.190 (Cash or installment sale) or 275.200 (Sale of land not sold by sheriff).(2)
The proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands):(a)
Must be credited to the county general fund by the county treasurer, if received from a lease or conveyance granting rights to explore, prospect for or remove biogas that is produced by decomposition of solid waste at any land disposal site or former land disposal site owned by the county. As used in this paragraph, “land disposal site” has the meaning given that term in ORS 459.005 (Definitions for ORS 459.005 to 459.437, 459.705 to 459.790 and 459A.005 to 459A.665).(b)
Must be segregated from the portion of the proceeds described in paragraph (a) of this subsection and deposited in a separate account maintained by the county. Interest earned on the segregated portion of the proceeds must be credited to the account established under this paragraph.(c)
May be used, in an amount that does not exceed 10 percent of the proceeds, to reimburse a taxing district within the county for costs and expenses necessarily incurred by the district in providing improved, additional or extraordinary services required on lands in the county as a result of exploration, drilling, mining, logging or other activities authorized under a lease or conveyance under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands). As used in this paragraph, “improved, additional or extraordinary services” includes, but is not limited to, fire protection and road construction and maintenance.(d)
May be used to reimburse the county for its actual costs and expenses incurred under this subsection and under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) for:(A)
The maintenance and supervision of a lease or conveyance granting rights to explore, prospect for, mine or remove valuable minerals, oil or gas from the lands;(B)
The maintenance and supervision of a lease or conveyance granting rights to conduct underground storage, as defined in ORS 520.005 (Definitions); and(C)
Litigation resulting from a lease or conveyance described in subparagraph (A) or (B) of this paragraph.(3)
Intentionally left blank —Ed.(a)
After a portion of the proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) and a portion of the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) are applied as provided in subsections (1) and (2) of this section, the balance of the proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) and the balance of the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands), including the payments for land sold under contract pursuant to ORS 275.190 (Cash or installment sale) or 275.200 (Sale of land not sold by sheriff), must be distributed by the county treasurer as follows:(A)
First, to a municipal corporation that has filed a notice, in accordance with ORS 275.130 (Claims of municipal corporations against the land to be filed prior to sale), relating to a local improvement lien against the property from which the sale proceeds are derived. The amount of the distribution to each municipal corporation must be in the principal amount of the lien, plus the interest and any penalties that accrued to the date of sale of the property.(B)
Second, to governmental units in accordance with the formula provided in ORS 311.390 (Tax and interest distribution percentage schedule) for the distribution of tax collections. The amount distributed to governmental units must be the amount remaining after the distribution, if any, under subparagraph (A) of this paragraph.(b)
Notwithstanding ORS 294.080 (Disposition of interest earned on funds held by county treasurer), as used in this subsection, “balance of the proceeds” includes all accumulated interest earned on the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) that are segregated pursuant to subsection (2)(b) of this section, unless a court of competent jurisdiction rules otherwise.(4)
Distribution of moneys under subsections (2) and (3) of this section must be made on or before June 30 in each year.(5)
The county treasurer or auditor shall verify the costs and expenses to be reimbursed under subsection (2) of this section.(6)
The county treasurer shall distribute reimbursements under subsection (2) of this section in accordance with an order of the governing body of the county.(7)
Notwithstanding subsection (1) of this section, a county with a population of 650,000 or more may convey real property acquired by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens as provided in ORS 271.330 (Relinquishing title of property not needed for public use). [1963 c.606 §5; 1969 c.595 §11; 1982 s.s.1 c.19 §1; 1983 c.537 §5; 1985 c.707 §1; 1989 c.833 §78; 1993 c.613 §1; 1997 c.805 §5; 2005 c.243 §9; 2015 c.242 §1; 2017 c.315 §2; 2019 c.443 §1]
Source:
Section 275.275 — Distribution of proceeds, https://www.oregonlegislature.gov/bills_laws/ors/ors275.html.
Notes of Decisions
Interest earned on principal received from mineral leases is component of “total proceeds” and therefore, defendant was entitled to 10 percent of principal and interest. State ex rel School Dist. 13 v. Columbia County, 66 Or App 237, 674 P2d 608 (1983), Sup Ct review denied
Attorney General Opinions
County deduction of administrative costs for management of oil and gas leases and foreclosed property sales, (1980) Vol 41, p 4
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