Collection of Property Taxes
Refund of taxes on real and personal property
- credit against total tax liability account of person owed refund
(1)Subject to subsections (2) and (3) of this section, the county governing body shall refund, out of the refund reserve account provided in ORS 311.807 (Refund reserve account), or the unsegregated tax collections account provided in ORS 311.385 (Deposit of property tax moneys in unsegregated tax collections account), taxes on property collected by an assessor or tax collector pursuant to a levy of the assessor or of any taxing district or tax levying body or pursuant to ORS 311.255 (Taxes, other charges of taxing agencies and water improvement company charges collected with county taxes), plus interest as provided in ORS 311.812 (No interest on refunds under ORS 311), in the following cases:
(a)To the person described in ORS 309.100 (Petitions for reduction of property value) (1) and in whose name a petition was filed, whenever a change in the value of property is ordered by a county board of property tax appeals and no appeal is taken or can be taken from the board’s order, or whenever ordered by the Oregon Tax Court or the Supreme Court and the order constitutes a final determination of the matter;
(b)To the person who has sought and obtained an order from the Department of Revenue under ORS 306.115 (General supervision over property tax system), whenever a change in the value of property is ordered by the department and no appeal is taken or can be taken from the order of the department;
(c)To the person who meets the criteria described in ORS 305.275 (Persons who may appeal due to acts or omissions) and in whose name an appeal is filed under ORS 305.275 (Persons who may appeal due to acts or omissions), whenever ordered by the Oregon Tax Court or Supreme Court and the order constitutes a final determination of the matter;
(d)Whenever a change in the value of property is made under ORS 309.115 (Term of order correcting real market value) upon resolution of an appeal and no separate appeal of the value of the property was taken for the year of the change:
(A)To the person in whose name the appeal was filed, for each year after the year for which the appeal was filed in which that person was listed as the owner or an owner or the person in whose name the property was assessed; and
(B)To the owner of record on the tax roll at the time of refund, each year thereafter;
(e)To the owner of record on the tax roll at the time of refund, whenever taxes are collected against real or personal property not within the jurisdiction of the tax levying body;
(f)Except as provided in ORS 310.143 (Certification of taxes on taxable property subject to 1990 Measure 5 limits), to the owner of record on the tax roll at the time of refund, whenever, through excusable neglect or through an error subject to correction under ORS 311.205 (Correcting errors or omissions in rolls), other than ORS 311.205 (Correcting errors or omissions in rolls) (1)(b)(A), taxes on property are paid in excess of the amount legally chargeable, limited to the amount of money collected in excess of the amount actually due;
(g)To the person in whose name the appeal was filed under ORS 305.275 (Persons who may appeal due to acts or omissions) if the officer makes a correction under ORS 311.205 (Correcting errors or omissions in rolls) (1)(b)(A) in the tax owed to which the appeal relates;
(h)Except as provided in ORS 311.808 (When refund on real property, manufactured structure or floating home prohibited), to the payer of the tax whenever any person pays taxes on the property of another by mistake of any kind;
(i)To the property owner entitled to proration of taxes under ORS 308.425 (Proration of taxes after destruction or damage) resulting in an overpayment of taxes paid; or
(j)To the purchaser of business personal property in the circumstances described in ORS 311.642 (Compromise property tax payment from purchaser of business personal property) (4), upon notification of the county governing body by the tax collector who accepted the refundable compromise payment.
(b)A refund of taxes may be allowed or made under subsection (1)(f) to (i) of this section after the period described in paragraph (a) of this subsection if, before the expiration of the period, a written claim for refund of the taxes is filed by the taxpayer with the county governing body.
(c)The county governing body shall order a refund of taxes to be paid as specified in subsection (1) of this section without the filing of a written claim and without regard to the period described in paragraph (a) of this subsection upon receipt of a copy of an order by the Department of Revenue, the Oregon Tax Court or the Supreme Court that constitutes a final determination that is not subject to appeal.
(b)Upon request of the owner or an owner of any taxable property or the person in whose name the property is assessed, or the owner of record on the tax roll at the time of refund, whichever is applicable, and with the approval of the tax collector, the county governing body may authorize:
(A)Refunds payable under subsection (1)(h) or (i) of this section to be made by crediting with the amount of the refund the total tax liability account of the requester.
(B)After the total tax liability account of the property on which the tax is assessed has been satisfied, refunds payable under subsection (1) of this section to be made by crediting with the remaining amount of the refund any other total tax liability account.
(b)If a county governing body elects to pay a refund or credit under the provisions of paragraph (a) of this subsection, and the election will result in a hardship to a requester, the requester may appeal the election to the tax court as provided in ORS 305.404 (Oregon Tax Court) to 305.560 (Appeals procedure generally).
(A)A county board of property tax appeals or the Oregon Tax Court issues a decision that could result in a refund if the decision is upheld on appeal;
(B)The final resolution is pending further appeal; and
(C)The county governing body orders a refund of taxes paid under this subsection.
(b)An order by a county governing body or a recommendation of an assessor or tax collector in regard to this subsection may not be considered in determining matters in controversy on appeal, including property value or tax liability.
(c)Interest may not be paid on any refund under this subsection prior to final resolution of the appeal. If, after taking into account the amount refunded under this subsection, the final resolution of the controversy after appeal results in a refund due, interest shall be determined and paid as provided in ORS 311.812 (No interest on refunds under ORS 311).
(d)If, after taking into account the amount refunded under this subsection, the final resolution of the controversy after appeal results in additional taxes due on the property, the additional taxes shall be billed and collected as provided in ORS 311.513 (Collection of additional taxes due upon resolution of appeal).
(6)Immediately upon payment of the refund and any interest thereon, the tax collector shall make the necessary correcting entries in the records of the office of the tax collector. ORS 294.305 (Sections constituting Local Budget Law) to 294.565 (Failure to file copy of required budget, reports or other documents) do not apply to refunds made out of the refund reserve account or the unsegregated tax collections account.
(7)A refund is not required under this section for any tax year if the amount of the refund would be $10 or less. Any amount not refunded under this subsection shall be distributed to taxing districts in the same manner that other taxes are distributed.
(8)As used in this section:
(a)“Owner of record on the tax roll at the time of refund” means the owner or an owner of the property or the person in whose name the property is assessed on the tax roll last certified and delivered to the tax collector under ORS 311.105 (Certificate of taxes levied or imposed) and 311.115 (Delivery of assessment roll to tax collector).
(b)“Total tax liability account” means the total amount of tax that has been extended or charged against a particular property tax account as limited by Article XI, section 11b, of the Oregon Constitution. [1959 c.554 §2 (enacted in lieu of 311.805); 1961 c.533 §50; 1971 c.737 §3; 1973 c.347 §1; 1975 c.395 §3; 1979 c.702 §1; 1985 c.162 §10; 1991 c.459 §260; 1993 c.6 §3; 1993 c.270 §60; 1995 c.650 §71; 1997 c.541 §§295,296; 2003 c.38 §1; 2005 c.394 §1; 2007 c.364 §1; 2015 c.31 §1; 2015 c.444 §8; 2017 c.27 §1; 2021 c.356 §2]
Notes of Decisions
This statute does not violate equal protection or due process provisions of either the Oregon or the United States Constitution. Sch. Dist. 12 v. Wasco County, 270 Or 622, 529 P2d 386 (1979)
Where taxpayer did not exhaust administrative and legal remedies within time allowed, Tax Court lacked jurisdiction to try refund claims on merits, despite fact that taxpayer relied on Revenue Department’s erroneous timber cruise. Rosboro Lbr. Co. v. Heine, 8 OTR 221 (1979)
Tax Court correctly determined it did not have authority to order refunds for overpayments resulting from property tax levy rates. Dennehy v. Dept. of Rev., 308 Or 423, 781 P2d 346 (1989)
County inability to collect taxes from proper party does not excuse obligation to refund taxes paid on property of another by mistake. PGE v. Dept. of Rev., 12 OTR 311 (1992)
It is no defense to refund required under this statute that [former] ORS 311.220 prohibited county from placing lien on property. PGE v. Dept. of Rev., 12 OTR 311 (1992)
ORS 305.580 preempts general refund provision where government mistakenly classifies tax with regard to section 11b, Article XI, Oregon Constitution. Smith v. Multnomah County Board of Commissioners, 12 OTR 377 (1993), aff’d 318 Or 302, 865 P2d 356 (1994)