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](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]
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)
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