Bill Text: OR SB749 | 2013 | Regular Session | Introduced

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Bill Title: Relating to assessed value; prescribing an effective date.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB749 Detail]

Download: Oregon-2013-SB749-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3677

                         Senate Bill 749

Sponsored by Senator KNOPP

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Changes determination of assessed value of property to be least
of maximum assessed value, real market value or ___ of prior
year's assessed value.
  Applies to property tax years beginning on or after July 1,
2013.
  Takes effect on 91st day following adjournment sine die.

                        A BILL FOR AN ACT
Relating to assessed value; creating new provisions; amending ORS
  307.032, 308.146, 308.153, 308.156 and 358.505; and prescribing
  an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 308.146 is amended to read:
  308.146. (1) The maximum assessed value of property shall equal
103 percent of the property's assessed value from the prior year
or 100 percent of the property's maximum assessed value from the
prior year, whichever is greater.
  (2) Except as provided in subsections (3) and (4) of this
section, the assessed value of property to which this section
applies shall equal the   { - lesser - }   { + least + } of:
  (a) The property's maximum assessed value;   { - or - }
  (b) The property's real market value { + ; or
  (c) ___ percent of the property's assessed value from the prior
year + }.
  (3) Notwithstanding subsections (1) and (2) of this section,
the maximum assessed value and assessed value of property shall
be determined as provided in ORS 308.149 to 308.166 if:
  (a) The property is new property or new improvements to
property;
  (b) The property is partitioned or subdivided;
  (c) The property is rezoned and used consistently with the
rezoning;
  (d) The property is first taken into account as omitted
property;
  (e) The property becomes disqualified from exemption, partial
exemption or special assessment; or
  (f) A lot line adjustment is made with respect to the property,
except that the total assessed value of all property affected by
a lot line adjustment shall not exceed the total maximum assessed
value of the affected property under subsection (1) of this
section.
  (4) Notwithstanding subsections (1) and (2) of this section, if
property is subject to partial exemption or special assessment,
the property's maximum assessed value and assessed value shall be
determined as provided under the provisions of law governing the
partial exemption or special assessment.
  (5)(a) Notwithstanding subsection (1) of this section, when a
portion of property is destroyed or damaged due to fire or act of
God, for the year in which the destruction or damage is reflected
by a reduction in real market value, the maximum assessed value
of the property shall be reduced to reflect the loss from fire or
act of God.
  (b) This subsection does not apply:
  (A) To any property that is assessed under ORS 308.505 to
308.665.
  (B) If the damaged or destroyed property is property that, when
added to the assessment and tax roll, constituted minor
construction for which no adjustment to maximum assessed value
was made.
  (c) As used in this subsection, 'minor construction' has the
meaning given that term in ORS 308.149.
  (6)(a) If, during the period beginning on January 1 and ending
on July 1 of an assessment year, any real or personal property is
destroyed or damaged, the owner or purchaser under a recorded
instrument of sale in the case of real property, or the person
assessed, person in possession or owner in the case of personal
property, may apply to the county assessor to have the real
market and assessed value of the property determined as of July 1
of the current assessment year.
  (b) The person described in paragraph (a) of this subsection
shall file an application for assessment under this section with
the county assessor on or before the later of:
  (A) August 1 of the current year; or
  (B) The 60th day following the date on which the property was
damaged or destroyed.
  (c) If the conditions described in this subsection are
applicable to the property, then notwithstanding ORS 308.210, the
property shall be assessed as of July 1, at 1:00 a.m. of the
assessment year, in the manner otherwise provided by law.
  (7)(a) Paragraph (b) of this subsection applies if:
  (A) A conservation easement or highway scenic preservation
easement is in effect on the assessment date;
  (B) The tax year is the first tax year in which the
conservation easement or highway scenic preservation easement is
taken into account in determining the property's assessed value;
and
  (C) A report has been issued by the county assessor under ORS
271.729 within 12 months preceding or following the date the
easement was recorded.
  (b) The assessed value of the property shall be as determined
in the report issued under ORS 271.729, but may be further
adjusted by changes in value as a result of any of the factors
described in ORS 309.115 (2), to the extent adjustments do not
cause the assessed value of the property to exceed the property's
maximum assessed value.
  (8)(a) Notwithstanding subsection (1) of this section, when a
building is demolished or removed from property, for the year in
which the demolishment or removal of the building is reflected by
a reduction in real market value, the maximum assessed value of
the property may be reduced to reflect the demolishment or
removal of the building.
  (b) This subsection does not apply:
  (A) To any property that is assessed under ORS 308.505 to
308.665.
  (B) If the demolished or removed property is property that,
when added to the assessment and tax roll, constituted minor

construction for which no adjustment to maximum assessed value
was made.
  (c) To receive the reduction in maximum assessed value of the
property under this subsection, the property owner must file an
application with the county assessor after the demolishment or
removal and on or before December 31 following the assessment
date if the demolishment or removal occurred:
  (A) Before the January 1 assessment date; or
  (B) During the period beginning January 1 and ending on the
July 1 assessment date if the property owner has applied to have
the real market and assessed value of the property determined
under subsection (6) of this section.
  (d) As used in this subsection:
  (A) 'Minor construction' has the meaning given that term in ORS
308.149.
  (B) 'Property owner' means an owner or purchaser under a
recorded instrument of sale in the case of real property, or the
person assessed, person in possession or owner in the case of
personal property.
  SECTION 2. ORS 308.153 is amended to read:
  308.153. (1) If new property is added to the assessment roll or
improvements are made to property as of January 1 of the
assessment year, the maximum assessed value of the property shall
be the sum of:
  (a) The maximum assessed value determined under ORS 308.146;
and
  (b) The product of the value of the new property or new
improvements determined under subsection (2)(a) of this section
multiplied by the ratio, not greater than 1.00, of the average
maximum assessed value over the average real market value for the
assessment year.
  (2)(a) The value of new property or new improvements shall
equal the real market value of the new property or new
improvements reduced (but not below zero) by the real market
value of retirements from the property tax account.
  (b) If the maximum assessed value of property is adjusted for
fire or act of God or for demolishment or removal of a building
under ORS 308.146, the reduction in real market value due to fire
or act of God or demolishment or removal of the building may not
be considered to be a retirement under this subsection.
  (3) The property's assessed value for the year shall equal the
 { - lesser - }   { + least + } of:
  (a) The property's maximum assessed value;   { - or - }
  (b) The property's real market value { + ; or
  (c) ___ percent of the property's assessed value from the prior
year + }.
  SECTION 3. ORS 308.156 is amended to read:
  308.156. (1) If property is subdivided or partitioned after
January 1 of the preceding assessment year and on or before
January 1 of the current assessment year, then the property's
maximum assessed value shall be established as provided under
this section.
  (2) If property is rezoned and, after January 1 of the
preceding assessment year and on or before January 1 of the
current assessment year, the property is used consistently with
the rezoning, the property's maximum assessed value shall be
established under this section.
  (3)(a) For the first tax year for which property is added to
the property tax account as omitted property, the property's
maximum assessed value shall be established under this section.
  (b) For tax years subsequent to the first tax year for which
property is added to the property tax account as omitted
property, the property's maximum assessed value shall be
determined as otherwise provided by law, taking into account the
maximum assessed value of the property as determined under this
section.
  (4)(a) If property was subject to exemption, partial exemption
or special assessment as of the January 1 assessment date of the
preceding assessment year and is disqualified from exemption,
partial exemption or special assessment as of the January 1 of
the current assessment year, the property's maximum assessed
value shall be established under this section.
  (b) If property described in this subsection is eligible for a
different type of exemption, partial exemption or special
assessment as of January 1 of the current assessment year, the
property's maximum assessed value shall be established under the
provision granting the partial exemption or special assessment.
  (5) The property's maximum assessed value shall be the sum of:
  (a) The maximum assessed value determined under ORS 308.146
that is allocable to that portion of the property not affected by
an event described in subsection (1), (2), (3) or (4)(a) of this
section; and
  (b) The product of the real market value of that portion of the
property that is affected by an event described in subsection
(1), (2), (3) or (4)(a) of this section multiplied by the ratio,
not greater than 1.00, of the average maximum assessed value over
the average real market value for the assessment year in the same
area and property class.
  (6) The property's assessed value for the year shall equal the
 { - lesser - }   { + least + } of:
  (a) The property's maximum assessed value;   { - or - }
  (b) The property's real market value { + ; or
  (c) ___ percent of the property's assessed value from the prior
year + }.
  (7) The Department of Revenue shall provide by rule the method
by which the allocations described in subsection (5) of this
section are to be made.
  SECTION 4. ORS 358.505 is amended to read:
  358.505. (1)(a) Except as provided in paragraphs (b) and (c) of
this subsection, for property certified for special assessment as
historic property under ORS 358.490, the county assessor shall
for 10 consecutive tax years list on the assessment and tax roll
a specially assessed value that equals the assessed value of the
property at the time application was made under ORS 358.487.
  (b) If the property certified for special assessment as
historic property was exempt or specially assessed at the time
the application was made, the county assessor shall for 10
consecutive tax years list on the assessment and tax roll a
specially assessed value that equals the product of the real
market value of the property for the tax year in which the
application was made multiplied by the ratio of the average
maximum assessed value over the average real market value for
that tax year of property in the same area and property class.
  (c) If the property certified for special assessment as
historic property is a condominium unit being assessed upon
initial sale by the developer, the county assessor shall for the
tax years of the remaining term of historic property special
assessment list on the assessment and tax roll a specially
assessed value that equals the product of the real market value
of the property for the tax year in which the initial sale took
place multiplied by the ratio of the average maximum assessed
value over the average real market value for that tax year of
property in the same area and property class.
  (d) For property certified under ORS 358.490 for a second term
of special assessment as historic property under ORS 358.540, the
county assessor shall, for 10 consecutive tax years after the
date of the filing of the application under ORS 358.487 for the
second term, list on the assessment and tax roll a specially
assessed value that equals the real market value of the property
for the assessment year in which the application is made.
  (2)(a) Notwithstanding ORS 308.149 (2), for the first tax year
of an initial or second 10-year period of historic property
special assessment, the maximum assessed value of property
subject to historic property special assessment shall equal the
specially assessed value of the property under subsection (1) of
this section multiplied by the ratio, not greater than 1.00, of
the maximum assessed value the property would have had if the
property were not specially assessed over the real market value
of the property.
  (b) For each tax year after the first tax year during which the
property is subject to special assessment as historic property,
the property's maximum assessed value equals 103 percent of the
property's assessed value from the prior year or 100 percent of
the property's maximum assessed value from the prior year,
whichever is greater.
  (3) The assessed value of property that is classified as
historic property for the tax year shall equal the
 { - lesser - }   { + least + } of:
  (a) The property's specially assessed value as determined under
subsection (1) of this section;
  (b) The property's maximum assessed value as determined under
subsection (2) of this section;   { - or - }
  (c) The property's real market value as of the assessment date
for the tax year { + ; or
  (d) ___ percent of the property's assessed value from the prior
year + }.
  (4) The entitlement of property to the special assessment
provisions of this section shall be determined as of July 1. If
the property becomes disqualified on or after July 1, its
assessment for that year shall continue as provided in this
section.
  (5) Assessed value, as defined and determined under ORS
308.146, shall be determined for property classified as historic
property by the county assessor each year. The assessed value so
determined for any year shall be subject to appeal to the county
board of property tax appeals within the time and in the manner
provided in ORS chapter 309 and shall be subject to appeal
thereafter to the Oregon Tax Court and to the Oregon Supreme
Court within the time and in the manner provided for appeals of
value determination for purposes of ad valorem property taxation.
  SECTION 5. ORS 307.032 is amended to read:
  307.032. (1) Unless determined under a provision of law
governing the partial exemption that applies to the property, the
maximum assessed value and assessed value of partially exempt
property shall be determined as follows:
  (a) The maximum assessed value:
  (A) For the first tax year in which the property is partially
exempt, shall equal the real market value of the property,
reduced by the value of the partial exemption, multiplied by the
ratio, not greater than 1.00, of the average maximum assessed
value over the average real market value for the tax year of
property in the same area and property class.
  (B) For each tax year after the first tax year in which the
property is subject to the same partial exemption, shall equal
103 percent of the property's assessed value for the prior year
or 100 percent of the property's maximum assessed value under
this paragraph from the prior year, whichever is greater.
  (b) The assessed value of the property shall equal the
  { - lesser - }   { + least + } of:
  (A) The real market value of the property reduced by the
partial exemption;   { - or - }
  (B) The maximum assessed value of the property under paragraph
(a) of this subsection  { - . - }  { + ; or
  (C) ___ percent of the property's assessed value from the prior
year. + }
  (2) Unless determined under a provision of law governing the
special assessment, the maximum assessed value subject to special

assessment and the assessed value of property subject to special
assessment shall be determined as follows:
  (a) The maximum assessed value:
  (A) For the first tax year in which the property is specially
assessed, shall equal the specially assessed value of the
property multiplied by the ratio, not greater than 1.00, of the
average maximum assessed value over the average real market value
for the tax year of property in the same area and property class.
  (B) For each tax year after the first tax year in which
property is subject to the same special assessment, shall equal
103 percent of the property's assessed value for the prior year
or 100 percent of the property's maximum assessed value subject
to special assessment from the prior year, whichever is greater.
  (b) The assessed value of the property shall equal the lesser
of:
  (A) The specially assessed value of the property as determined
under the law establishing the special assessment; or
  (B) The property's maximum assessed value subject to special
assessment as determined under paragraph (a) of this subsection.
  (3) As used in this section, 'area' and 'property class ' have
the meanings given those terms in ORS 308.149.
  SECTION 6.  { + The amendments to ORS 307.032, 308.146,
308.153, 308.156 and 358.505 by sections 1 to 5 of this 2013 Act
apply to property tax years beginning on or after July 1,
2013. + }
  SECTION 7.  { + This 2013 Act takes effect on the 91st day
after the date on which the 2013 regular session of the
Seventy-seventh Legislative Assembly adjourns sine die. + }
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