ORS 308.425
Proration of taxes after destruction or damage

  • specially assessed property
  • cancellation of taxes
  • refunds
  • treatment of repairs
  • rules

(1)

As used in this section, “property” means:

(a)

Intentionally left blank —Ed.

(A)

All property within a single tax account, other than specially assessed property; and

(B)

Specially assessed property.

(b)

“Specially assessed property” means any portion of a property tax account that is subject to special assessment under a program codified in ORS chapter 308A or 321.

(2)

If, during any tax year, any real or personal property is destroyed or damaged by fire or act of God, the property owner, as defined in ORS 308.146 (Determination of maximum assessed value and assessed value), may apply to the tax collector for proration of the taxes imposed on the property for the tax year. Application under this subsection for proration of taxes shall be made not later than the end of the tax year or 60 days following the date on which the property was destroyed or damaged, whichever is later. If the application is approved, the tax collector shall prorate the taxes imposed on the property in accordance with this section.

(3)

Notwithstanding subsection (2) of this section, if the tax collector of a county that is included in the geographical area covered by a state of emergency declared by the Governor due to fire or act of God, or subject to actions taken under the authority of the Governor under ORS 476.510 (Short title) to 476.610 (Payment of claims), knows or has reason to believe that property located in the county has been destroyed or damaged by the fire or act of God, the tax collector may prorate the taxes imposed on the property in accordance with this section.

(4)

For property that is destroyed or damaged as described in subsection (2) or (3) of this section, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month during the tax year that preceded the month in which the property was destroyed or damaged.

(5)

Intentionally left blank —Ed.

(a)

For the month in which property as defined in subsection (1)(a)(A) of this section was destroyed or damaged, and for each succeeding month of the tax year, the tax collector shall collect that percentage of one-twelfth of the taxes imposed on such property that the real market value of the property after the destruction or damage bears to the real market value of the property before the destruction or damage as reflected in the last certified assessment roll. The county assessor shall advise the tax collector of the value percentage required under this paragraph.

(b)

For the month in which specially assessed property was destroyed or damaged, and for each succeeding month of the tax year, the tax collector shall collect that percentage of one-twelfth of the taxes imposed on the specially assessed property that the lesser of the real market value or the assessed value of the specially assessed property after the destruction or damage bears to the assessed value of the specially assessed property before the destruction or damage. The county assessor shall advise the tax collector of the value percentage required under this paragraph.

(6)

The tax collector shall cancel any taxes not to be collected under subsections (4) and (5) of this section.

(7)

If proration under this section results in an overpayment of taxes paid, the amount of the overpayment shall be refunded in the manner prescribed in ORS 311.806 (Refund of taxes on real and personal property).

(8)

Property that is added to a property tax account to repair or replace property that was destroyed or damaged as described in subsection (2) or (3) of this section shall be considered to be new property or new improvements to property under ORS 308.153 (New property and new improvements to property) for the assessment year in which the repairs or replacements are first taken into account.

(9)

The Department of Revenue may adopt rules that establish procedures for the implementation of this section. [1971 c.497 §1; 1974 c.14 §1; 1975 c.778 §1; 1975 c.780 §20; 1981 c.804 §61; 1983 c.85 §1; 1991 c.459 §132a; 1997 c.541 §196; 1999 c.20 §1; 2003 c.655 §64; 2007 c.450 §2; 2015 c.31 §2; 2021 c.356 §1]
Note: Section 3, chapter 356, Oregon Laws 2021, provides:
Sec. 3. The amendments to ORS 308.425 (Proration of taxes after destruction or damage) and 311.806 (Refund of taxes on real and personal property) by sections 1 and 2 of this 2021 Act apply to property tax years beginning on or after July 1, 2020. [2021 c.356 §3]
(Temporary provisions relating to local option wildfire tax relief for 2020 fire season)
Note: Sections 1 and 2, chapter 580, Oregon Laws 2021, provide:
Sec. 1. (1) As used in this section:

(a)

“Disruption of use” means the lack of any of the following for at least 30 continuous days, beginning on any day between September 1, 2020, and September 30, 2020:

(A)

Access, due to road closures;

(B)

Water service;

(C)

Sanitation services;

(D)

Electricity; or

(E)

Telecommunication services.

(b)

“Eligible county” means a county any part of which was included in the geographical area covered by the state of emergency declared by the Governor in response to the wildfires that occurred in this state between September 1, 2020, and September 30, 2020.

(c)

Intentionally left blank —Ed.

(A)

“Eligible property” means taxable real and personal property, including land, that is located within the boundaries of a wildfire map adopted in accordance with subsection (4) of this section.

(B)

“Eligible property” does not mean property subject to assessment by the Department of Revenue under ORS 308.505 (Definitions for ORS 308.505 to 308.674) to 308.674 (Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property).

(d)

“Owner” means:

(A)

In the case of real property, including land, the owner or purchaser under a recorded instrument of sale; or

(B)

In the case of personal property, the person assessed, person in possession or owner.

(e)

“Wildfire tax relief” means collection by the tax collector of one-sixth of the ad valorem property taxes imposed on eligible property for the property tax year beginning on July 1, 2020, and cancellation of the remainder of the taxes.

(2)

The governing body of an eligible county, after consultation with the county assessor and county tax collector, may adopt an ordinance or resolution that directs the tax collector to grant wildfire tax relief to all eligible property that the tax collector knows has suffered a loss in real market value as a result of the wildfires. Wildfire tax relief under this subsection does not require an application from the owner.

(3)

Intentionally left blank —Ed.

(a)

An ordinance or resolution adopted pursuant to subsection (2) of this section may also direct the tax collector to grant wildfire tax relief to eligible property not described in subsection (2) of this section that suffered damage, or disruption of use, as a result of the wildfires.

(b)

Wildfire tax relief under this subsection requires the owner of eligible property to file an application that demonstrates to the satisfaction of the tax collector the property’s eligibility for wildfire tax relief. An application must be filed before July 1, 2022, or an earlier date if the ordinance or resolution so provides.

(c)

The ordinance or resolution shall set forth:

(A)

The application forms and process; and

(B)

Clear and objective standards for determining eligibility for wildfire tax relief under this subsection.

(d)

Intentionally left blank —Ed.

(A)

Eligible property that is the subject of an application approved by the tax collector in accordance with this subsection shall be granted wildfire tax relief.

(B)

An owner whose application is rejected in accordance with this subsection may appeal the rejection to the governing body of the county. The governing body’s decision on appeal is final.

(4)

An ordinance or resolution adopted pursuant to this section must include, as the product of a public process that includes an opportunity for public comment, a wildfire map, in any media or format, that:

(a)

Establishes the boundaries within which wildfire tax relief may be granted under an ordinance or resolution adopted pursuant to this section; and

(b)

Identifies the eligible property within the boundaries that is granted wildfire tax relief under subsection (2) of this section.

(5)

An ordinance or resolution adopted pursuant to this section may apply retroactively but is not valid unless it becomes effective within 45 days following the effective date of this 2021 Act [September 25, 2021].

(6)

If wildfire tax relief granted under this section results in an overpayment of taxes paid on eligible property, the amount of the overpayment determined under this section shall be refunded to the owner of the eligible property as if the owner were an applicant entitled to a refund under ORS 311.806 (Refund of taxes on real and personal property) (1)(i) for the proration of taxes under ORS 308.425 (Proration of taxes after destruction or damage).

(7)

It is the intent of the Legislative Assembly that this section and ORS 308.425 (Proration of taxes after destruction or damage) shall operate concurrently for the property tax year beginning on July 1, 2020. Accordingly, in applying this section, the provisions of this section shall supersede the provisions of ORS 308.425 (Proration of taxes after destruction or damage). The provisions of ORS 308.425 (Proration of taxes after destruction or damage) may be applied without reference to this section. [2021 c.580 §1]
Sec. 2. Section 1 of this 2021 Act is repealed on January 2, 2023. [2021 c.580 §2]

Source: Section 308.425 — Proration of taxes after destruction or damage; specially assessed property; cancellation of taxes; refunds; treatment of repairs; rules, https://www.­oregonlegislature.­gov/bills_laws/ors/ors308.­html.

Notes of Decisions

Partial value reduction formula is unconstitutional because under Article XI, section 11b, assessed value must be reduced to minimum value during tax year. Shatzer v. Dept. of Revenue, 13 OTR 436 (1996), aff’d on other grounds, 325 Or 211, 934 P2d 1119 (1997)

“Act of God” excludes all circumstances produced by human agency, including lack of due care or foresight. Clark v. Multnomah County Assessor, 17 OTR 72 (2003)

308.005
“Assessor” includes deputy
308.007
Definitions
308.010
Registered appraiser requirements
308.015
Alternate qualifications for registered appraisers
308.030
Penalty for failure to file certain statements within time limits
308.050
Assessor’s annual report on property appraisal program
308.055
Special assessor appointed if assessor fails to act
308.057
Continuing education of county assessors required
308.059
Qualifications of managerial employees of assessor
308.062
Action by department when appraisals not being conducted as provided by law
308.065
Administering of oaths by assessors and deputies
308.105
Personal property
308.115
Minerals, coal, oil, gas or other severable interests owned separately from realty not subject to tax
308.120
Partnership property
308.125
Undivided interest
308.130
Undivided estate of decedent
308.135
Trustee or personal representative separately assessed
308.142
“Property” and “property tax account” defined
308.146
Determination of maximum assessed value and assessed value
308.149
Definitions for ORS 308.149 to 308.166
308.151
Certain cities authorized to define “area” as city by ordinance or resolution
308.153
New property and new improvements to property
308.156
Subdivision or partition
308.159
Lot line adjustments
308.162
Property tax account modifications
308.166
Ordering provisions when property is subject to multiple special determinations of value
308.205
Real market value defined
308.207
Computation of real market value for taxing or bonding limitations
308.210
Assessing property
308.212
Requirement for property owner to file address
308.215
Contents of assessment roll
308.217
Form of assessment and tax rolls
308.219
Assessment and tax rolls
308.225
Boundary changes
308.231
Only registered appraisers to appraise real property
308.232
Property to be valued at 100 percent real market value and assessed at assessed value
308.233
Use of sales data for physical appraisal
308.234
Record of last appraisal
308.235
Valuation of real property
308.236
Land values to reflect presence of roads
308.240
Description of real property
308.242
Assessor’s authority to change roll after September 25 limited
308.245
Maps
308.250
Valuation and assessment of personal property
308.256
Assessment, taxation and exemption of watercraft and materials of shipyards, ship repair facilities and offshore drilling rigs
308.260
Watercraft used for reduction or processing of deep-sea fish
308.270
Public lands sold or contracted to be sold to be placed on assessment roll
308.275
Use of reproduction cost or prices and costs in determining assessed values
308.285
Requiring taxpayer to furnish list of taxable property
308.290
Returns
308.295
Penalties for failure to file real property or combined return on time
308.296
Penalty for failure to file return reporting only personal property
308.297
Personal property returns to note penalty for delinquency
308.300
Penalty for neglecting to file real property or combined return with intent to evade taxation
308.302
Disposition of penalties
308.310
When list of persons issued electrical permits supplied
308.316
Examining witnesses, books and records
308.320
Oath of assessor upon completion of assessment roll
308.330
Duty of assessor to assess properly
308.335
Department testing work of county assessors
308.408
“Industrial plant” defined
308.411
Appraisal and real market valuation of industrial plants
308.412
Effect of election to exclude income approach to value under prior law
308.413
Confidential information furnished under ORS 308.411
308.425
Proration of taxes after destruction or damage
308.440
Relief not allowed in case of arson by property owner
308.450
Definitions for ORS 308.450 to 308.481
308.453
Policy
308.456
Application of ORS 308.450 to 308.481
308.457
Determining boundaries of distressed areas
308.459
Valuation of rehabilitated property not to be increased
308.462
Qualifications for limited assessment
308.466
Processing applications for limited assessment
308.468
Fee for limited assessment applications
308.471
Owner to file statement with governing body when rehabilitation project finished
308.474
Owner to file annual statement regarding rental property transactions if agreement filed under ORS 308.462 (2)
308.477
Termination of limited assessment for incomplete construction or noncompliance
308.479
Termination of limited assessment for change of use
308.481
Extending deadline for completion of rehabilitation project
308.490
Determining value of homes for elderly persons
308.505
Definitions for ORS 308.505 to 308.674
308.510
Real and personal property classified for ORS 308.505 to 308.674
308.515
Department to make annual assessment of designated utilities and companies
308.516
Certain exceptions to ORS 308.515
308.517
To whom property assessed
308.518
Legislative intention with respect to ownership or operation of data centers
308.519
Local assessment of data center property
308.521
Property of cooperative providing steam or hot water heat by combustion of biomass exempt
308.524
Companies to file statements
308.525
Contents of statement
308.530
Company not relieved from making other reports
308.535
Extension of time for making reports or statements
308.540
Department to prepare assessment roll
308.545
Mode of valuing property
308.550
Valuing property of company operating both within and without state
308.555
Unit valuation of property
308.558
Taxation of aircraft
308.560
Assessment roll
308.565
Apportionment of assessment among counties
308.570
Determining value per mile of main and branch lines of companies using rail lines
308.575
Determining value per mile of property of companies using wire, pipe or pole lines or operational routes
308.580
Department to review and correct tentative assessment roll
308.582
Notice of tentative assessment
308.584
Request for conference to modify tentative assessment
308.585
Delivery of tentative assessment roll to director
308.590
Review and correction of tentative assessment roll
308.595
Notice when valuation increased or omitted property placed on tentative assessment roll
308.600
Director’s examination of rolls
308.605
Entry of corrections and changes
308.610
Oath of director upon completion of review
308.615
Keeping roll as public record
308.621
When assessment complete
308.624
Correction of certified roll
308.628
Omitted property subject to assessment
308.632
Notice of intention to add omitted property to assessment roll
308.636
Correction of assessment roll to reflect omitted property
308.640
Assessment and taxation of personal property of small private railcar companies
308.645
Reports by companies of mileage to county assessors
308.650
Companies to maintain principal office and agent within state
308.655
Rules and regulations
308.665
Railroad car exemption
308.671
Elective exemption of certain communication-related property
308.674
Exemption equal to difference between real market value of company’s centrally assessable property and 130 percent of cost of company’s centrally assessable real and tangible personal property
308.701
Definitions for ORS 308.701 to 308.724
308.704
Option of owner to choose special assessment
308.707
Valuation of multiunit rental property subject to special assessment
308.709
Application procedure
308.712
Methods to determine specially assessed value
308.714
Disqualification
308.723
Application of property tax expenditure funding
308.724
Rules
308.805
Mutual and cooperative electric distribution systems subject to tax on gross earnings
308.807
Amount of tax
308.810
Association to file statement
308.815
Examination of return by department
308.820
Tax as a lien
308.865
Notice and payment of taxes before movement of mobile modular unit
308.866
Definition of “mobile modular unit”
308.875
Manufactured structures classified as real or personal property
308.880
Travel or special use trailer eligible for ad valorem taxation upon application of owner
308.885
Determination of real market value of manufactured structure without physical appraisal
308.990
Penalties
Green check means up to date. Up to date