US Laws, Codes, Statutes & Cases

Chapter 305 — Administration of Revenue and Tax Laws; Appeals

 

2005 EDITION

 

TITLE 29

REVENUE AND TAXATION

 

Chapter     305.     Administration of Revenue and Tax Laws; Appeals

                  306.     Property Taxation Generally

                  307.     Property Subject to Taxation; Exemptions

                  308.     Assessment of Property for Taxation

                  308A.  Land Special Assessments

                  309.     Board of Property Tax Appeals; Ratio Studies

                  310.     Property Tax Rates and Amounts; Tax Limitations; Tax Reduction Programs

                  311.     Collection of Property Taxes

                  312.     Foreclosure of Property Tax Liens

                  314.     Taxes Imposed Upon or Measured by Net Income

                  315.     Personal and Corporate Income or Excise Tax Credits

                  316.     Personal Income Tax

                  317.     Corporation Excise Tax

                  318.     Corporation Income Tax

                  319.     Motor Vehicle and Aircraft Fuel Taxes

                  320.     Miscellaneous Taxes

                  321.     Timber and Forestland Taxation

                  323.     Cigarettes and Tobacco Products

                  324.     Oil and Gas Tax

_______________

 

Chapter 305 — Administration of Revenue and Tax Laws; Appeals

 

2005 EDITION

 

ADMINISTRATION; APPEALS

 

REVENUE AND TAXATION

 

DEPARTMENT OF REVENUE

 

(Organization)

 

305.005     Definitions

 

305.015     Policy

 

305.025     Department of Revenue; organization; planning; seal

 

305.035     Director of Department of Revenue; appointment; confirmation; compensation and expenses; bond

 

305.045     Duties of director

 

305.057     Delegation of authority

 

305.060     Offices of department; equipment and supplies

 

305.063     Department of Revenue Administration Account; use; limitation

 

305.065     Deputy director; appointment; qualifications

 

305.075     Employees; appointment; duties; compensation and expenses

 

305.078     Authority of Department of Revenue to require fingerprints

 

305.085     Charges for maps, documents or publications

 

(Tax Administration)

 

305.100     Rules; forms

 

305.102     Constitutional property tax limit; rules

 

305.105     Declaratory rulings by department; rules

 

305.110     Duty to construe tax laws; instruction of officers acting under tax laws

 

305.120     Enforcement of tax laws

 

305.130     Department as party to actions involving property subject to certain tax liens; complaint and summons

 

305.140     Power to release real property from certain tax liens

 

305.145     When interest required to be waived; power to waive, reduce or compromise small tax balance or penalty and interest; rules

 

305.150     Closing agreements

 

305.155     Cancellation of uncollectible tax; filing order; releasing liens

 

305.157     Extending statutory periods of limitation

 

305.160     Reports from public officers

 

305.170     Complaints concerning tax laws; reports and recommendations to Legislative Assembly

 

305.180     Effect of tax warrant for purposes of out-of-state collection

 

305.182     Filing of warrants for unpaid taxes; release, cancellation and satisfaction

 

305.184     Certificate of outstanding warrants; fee

 

305.190     Subpoenaing and examining witnesses, books and papers; application to tax court for disobeyance of subpoena

 

305.192     Disclosure of books and papers relating to appraisal or assessment of industrial property

 

305.193     Disclosure of tax information to designated persons; rules

 

305.195     Written interrogatories; contents; time and manner of service; answer; objection; order for answer; demand for information by taxpayer; order for information

 

305.200     Witness fees and mileage

 

305.215     Conflicting claims for credit for dependent; notice procedure; appeal; evidence as public record

 

305.217     When deduction for amounts paid as wages or remuneration permitted

 

305.220     Interest on deficiency, delinquency or refunds; adjustments in rates; rules; computation

 

305.222     Determination of interest rate

 

305.225     Request of assistance by law enforcement agency; disclosure of tax records

 

305.228     Penalty for second dishonored payment of taxes; waiver

 

305.229     When penalties not imposed; rules

 

(Representation of Taxpayer)

 

305.230     Qualifications of persons representing taxpayer; procedure for designating representative; rules

 

305.242     Representation before department or magistrate of designated partnership tax matters; designated tax partner

 

305.245     Representation before tax court magistrate by officer or employee of county or department

 

305.260     Representation before department or magistrate by former department personnel prohibited

 

(Tax Deficiencies; Notice; Appeals)

 

305.263     Order requiring filing report or return; show cause; contempt; appeal

 

305.265     Deficiency notice; payment of deficiency; assessment; appeal; interest

 

305.267     Extension of time to issue notice of deficiency or assessment

 

305.270     Refund of excess tax paid; claim procedure

 

305.271     Refund transfer or assignment prohibited; exception

 

305.275     Persons who may appeal due to acts or omissions

 

305.280     Time for filing appeals; denial of appeal

 

305.285     Correction of tax and assessment rolls for subsequent tax years during pendency of appeal

 

305.288     Valuation changes for residential property substantial value error and for good and sufficient cause

 

305.290     Extension of time for making assessment due to bankruptcy

 

305.295     Cancellation of tax, penalty or interest

 

305.305     Procedure where deficiency based on federal or other state audit report; effect of appeal; interest suspension

 

305.375     Disposition of penalties; payment of refunds

 

(License Lists)

 

305.380     Definitions for ORS 305.385

 

305.385     Agencies to supply licensee and contractor lists; contents; effect of department determination on taxpayer status of licensee or contractor; rules

 

SUBPOENAS RELATING TO INDUSTRIAL PROPERTY

 

305.390     Subpoenas of records containing information on industrial plant for use to determine value of different industrial plant

 

305.392     Process for limiting scope of third-party subpoena

 

305.394     When industrial plant owner may choose not to produce information sought by subpoena

 

305.396     Protection of confidentiality of industrial property information obtained by subpoena

 

305.398     Disclosure and use of industrial property confidential information obtained by third-party subpoena

 

305.400     Payment of costs of subpoena compliance; determination of costs

 

APPEALS OF INDUSTRIAL PROPERTY OR PLANTS

 

305.403     Election to appeal value of principal or secondary industrial property to tax court; dismissal of appeal to board of property tax appeals

 

OREGON TAX COURT

 

(General)

 

305.404     Oregon Tax Court; definitions; usage

 

305.405     Oregon Tax Court; creation; jurisdiction

 

305.410     Authority of court in tax cases within its jurisdiction; concurrent jurisdiction; exclusive jurisdiction in certain cases

 

305.412     Jurisdiction to determine value

 

305.415     Service of papers and process

 

305.418     When mailed complaint considered to be filed

 

305.419     Tax, penalty and interest payable before appeal; how determined; waiver; refund

 

305.420     Issuance of subpoenas; administration of oaths; depositions

 

305.422     Waiver of penalty for failure to timely file property return

 

305.425     Proceedings to be without jury and de novo; issues reviewable; rules of procedure

 

305.427     Burden of proof in tax court proceedings

 

305.430     Hearings to be open to public; report of proceedings; exception; confidential information

 

305.437     Damages for frivolous or groundless appeal or appeal to delay

 

305.440     Finality of unappealed decision of tax court; effect of appeal to Supreme Court

 

305.445     Appeals to Supreme Court; reviewing authority and action on appeal

 

305.447     Recovery by taxpayer of certain costs and expenses upon appeal to Supreme Court

 

305.450     Publication of tax court decisions

 

305.452     Election and term of judge; vacancy; recommendation of appointees to fill vacancy

 

305.455     Qualifications of judge; inapplicability of disqualification-for-prejudice provision

 

305.460     Salary, expenses, disability and retirement of judge and magistrates

 

305.470     Presiding judge; functions

 

305.475     Offices of tax court; location of hearings

 

305.480     State Court Administrator as administrator and clerk; other personnel; expenses; limitation on activities of personnel

 

305.485     Records

 

(Industrial Property Appeals)

 

305.487     Findings and policy

 

305.489     Considerations in adopting rules

 

(Fees)

 

305.490     Filing fees; recovery of certain costs and disbursements; additional recovery for certain taxpayers; disposition of receipts

 

305.492     Fees and expenses of witnesses

 

305.493     Fees for transcripts or copies of records

 

(Representation)

 

305.494     When shareholder may represent corporation in tax court proceedings

 

(Magistrate Division)

 

305.498     Magistrates; appointment; qualifications; oaths; duties; dismissal; appointment of presiding magistrate

 

305.501     Appeals to tax court to be heard by magistrate division; exception; mediation; conduct of hearings; decisions; appeal de novo to tax court judge

 

305.505     Magistrate division records; statistical reports

 

305.525     Notice to taxpayer of right to appeal

 

(Appeals Procedure; Effect of Pendency of Appeal)

 

305.560     Appeals procedure generally; procedure when taxpayer is not appellant; intervention

 

305.565     Stay of collection of taxes, interest and penalties pending appeal; exception; bond

 

305.570     Standing to appeal to regular division of tax court; perfection of appeal

 

305.575     Authority of tax court to determine deficiency

 

(Constitutional Limits Upon Property Taxes; Effects; Determination)

 

305.580     Exclusive remedies for certain determinations; priority of petitions

 

305.583     Interested taxpayer petitions for certain determinations; petition contents; manner and time for filing; classification notice requirements; bond proceed use notice requirements

 

305.585     Local government petitions concerning taxes of another local government under 1990 Measure 5; manner and time for filing

 

305.586     Legislative findings; policy on remedies for misspent bond proceeds

 

305.587     Tax court findings; orders; refunds; bond measure construction; other relief

 

305.589     Judicial declarations; petition by local government; notice; intervention; appeal; remedies; costs

 

305.591     Court determination that 1990 Measure 5 tax limit is inapplicable; collection of tax; appeal; stay denied

 

INTERGOVERNMENTAL TAX RELATIONS

 

(Federal and Other States)

 

305.605     Application of tax laws within federal areas in state

 

305.610     Reciprocal recognition of tax liability; actions in other states for Oregon taxes

 

305.612     Reciprocal offset of tax refunds in payment of liquidated tax obligations; rules

 

305.615     Apportionment of moneys received from United States in lieu of property taxes

 

(Local)

 

305.620     Collection and distribution of local taxes on income and sales; costs; court review of determinations and orders; appeals

 

305.625     State and political subdivisions are employers for purpose of withholding city or county income tax

 

305.630     Compliance with city or county income tax ordinance required

 

305.635     Rate of withholding to be designated by city or county; forms

 

305.640     Discrimination among employers prohibited

 

MULTISTATE TAX COMPACT

 

305.655     Multistate Tax Compact

 

305.660     Director of department to represent state; alternate

 

305.665     Appointment of consultants from political subdivisions imposing taxes having multistate impact

 

305.675     Application of compact provisions relating to interstate audits

 

305.676     Mediation and arbitration laws not applicable to Multistate Tax Commission processes

 

305.685     Multistate Tax Commission Revolving Account

 

CHARITABLE CHECKOFF PROGRAM

 

305.690     Definitions for ORS 305.690 to 305.753

 

305.695     Oregon Charitable Checkoff Commission; qualifications; term; compensation and expenses

 

305.700     Officers; meetings; quorum; director as nonvoting member

 

305.705     Duties of chairperson

 

305.710     Notice of availability of space in tax return for checkoffs; determination of entities eligible for checkoff

 

305.715     Determination of eligibility; certification of entities to be listed on tax return

 

305.720     Qualification for entity for contributions by checkoff

 

305.725     Application of entity

 

305.727     Instruction listing; qualifications

 

305.730     Financial report of entity

 

305.735     Effect of qualification; notice if entity not qualified

 

305.740     Standards for continuing eligibility

 

305.745     Inclusion of eligible entities on tax return

 

305.747     Administrative expenses; crediting contributions to entities; rules

 

305.749     Payment to checkoff programs; rules; notice and effect of low contributions; form on tax return

 

305.751     Rules

 

305.753     State Treasurer may solicit donations to eligible entities; department rules; inapplicability of certain statutes to certain checkoffs

 

REFUNDS

 

305.760     Paying over funds to State Treasurer and writing checks for refunds

 

305.762     Election for direct deposit of personal income tax refund

 

305.765     Refund of taxes adjudged invalid

 

305.770     Report of taxpayers paying invalid tax; issuance and payment of warrants

 

305.775     Interest on amount of refund in certain cases

 

305.780     Taxes due prior to year in which suit brought

 

305.785     Appropriation

 

305.790     Manner of payment of certain costs and expenses

 

305.792     Surplus refund donations to education

 

305.794     Transfer to State School Fund

 

MISCELLANEOUS PROVISIONS

 

305.805     Repeal of intangibles income tax law not to affect accrued taxes

 

305.810     Verification of return, statement or document filed under tax laws

 

305.815     False return, statement or document prohibited

 

305.820     Date when writing, remittance or electronic filing deemed received by tax officials

 

305.822     Prohibition on state or local tax on Internet access

 

305.823     Local government tax on telephone services prohibited

 

305.830     Collection of fines, penalties and forfeitures; disbursement; cost of collection

 

305.840     Forms furnished by county assessors; assessor not liable when taxpayer fails to receive mailed form

 

305.845     Remedies exclusive

 

305.850     Use of collection agency

 

TAXPAYER BILL OF RIGHTS

 

305.860     Statement of rights of taxpayers; distribution

 

305.865     Taxpayer rights

 

305.870     Personnel evaluation not based on amount of taxes collected

 

305.875     Rights of taxpayer in meeting or communication with department

 

305.880     Waiver of interest or penalty when department misleads taxpayer

 

305.885     Right of clear explanation

 

305.890     Right to enter into agreement to satisfy liability in installment payments

 

305.895     Action against property before issuance of warrant prohibited; prerequisites for warrant

 

305.900     Short title

 

PENALTIES

 

305.990     Criminal penalties

 

305.992     Civil penalty for failure to file return for three consecutive years

 

DEPARTMENT OF REVENUE

 

(Organization)

 

      305.005 Definitions. As used in the revenue and tax laws of this state, unless the context requires otherwise:

      (1) “Department” means the Department of Revenue.

      (2) “Director” means the Director of the Department of Revenue. [1969 c.520 §2; 1995 c.79 §105; 1995 c.650 §105]

 

      305.010 [Formerly 306.010; repealed by 1969 c.520 §49]

 

      305.015 Policy. It is the intent of the Legislative Assembly to place in the Department of Revenue and its director the administration of the revenue and tax laws of this state, except as specifically otherwise provided in such laws. [1969 c.520 §1; 1977 c.870 §1]

 

      305.020 [Formerly 306.020; repealed by 1969 c.520 §49]

 

      305.025 Department of Revenue; organization; planning; seal. (1) The Department of Revenue is established.

      (2) The Department of Revenue shall consist of administrative divisions. Each of the administrative divisions of the department shall be headed by an administrator who shall be in the unclassified service under the State Personnel Relations Law and appointed by the Director of the Department of Revenue. Each administrator shall be well qualified by technical training and experience in the functions to be performed.

      (3) The Director of the Department of Revenue, from time to time, may alter or amend the organization of the department, including its administrative divisions, as the director deems necessary to achieve the greatest efficiency and economy in its operation.

      (4) The director, acting in concert with the chief officers of other state agencies charged with raising revenue, shall use all reasonable means to increase efficiency and economy by coordinating work and sharing resources with other agencies, including but not limited to the mutual use of field officers and field auditors. With respect to such activity the director shall cause to be prepared a report relating to the utilization and coordination of revenue raising functions of the state agencies charged with such responsibility, including but not limited to suggested plans for departmental or governmental reorganization in the revenue raising field. Such report shall be submitted to the Governor and the Legislative Assembly when it next convenes.

      (5) The department shall have an official seal, with the words “Department of Revenue” and “State of Oregon” and such other design as the director may prescribe. The seal shall be used to authenticate all papers and proceedings requiring authentication. [1969 c.520 §§3,5; 1973 c.402 §2; 1981 c.848 §1]

 

      305.030 [Formerly 306.030; repealed by 1969 c.520 §49]

 

      305.035 Director of Department of Revenue; appointment; confirmation; compensation and expenses; bond. (1) The Department of Revenue shall be under the supervision of the Director of the Department of Revenue who shall be appointed for a term of four years and shall hold office at the pleasure of the Governor. The director shall be skilled and expert in matters of taxation and shall devote the entire time of the director to the performance of the duties imposed upon the department.

      (2) The appointment of the director is subject to confirmation by the Senate under ORS 171.562 and 171.565. In case the Governor’s choice of a director is not confirmed, the Governor shall make another appointment subject to the confirmation by the Senate as provided in this subsection.

      (3) The director shall receive such salary as may be provided by law. In addition to salary, the director, subject to the limitations otherwise provided by law, shall be reimbursed for all reasonable expenses necessarily incurred by the director in the performance of official duties. Before entering upon the duties of office, the director shall be bonded under ORS 291.011. [1969 c.520 §4; 1985 c.565 §52; 1985 c.761 §5]

 

      305.040 [Formerly 306.040; repealed by 1969 c.520 §49]

 

      305.045 Duties of director. (1) Except as otherwise provided by law, the Director of the Department of Revenue shall coordinate all of the activities of the Department of Revenue, and has the power of general supervision over the administration of each division within the department, and the administrative head thereof, and is directly responsible to the Governor therefor.

      (2) The director shall provide administrative staff, fiscal, planning and research facilities and services for the agencies within the department. [1969 c.520 §6; 1995 c.650 §106]

 

      305.050 [Formerly 306.050; repealed by 1969 c.520 §49]

 

      305.055 [Formerly 306.230; repealed by 1969 c.520 §49]

 

      305.057 Delegation of authority. Whenever a power is granted to the Director of the Department of Revenue, the power may be exercised by such officer or employee within the Department of Revenue as designated in writing by the director. Any such designation shall be filed in the office of the Secretary of State. [1969 c.520 §7; 1975 c.605 §15a]

 

      305.060 Offices of department; equipment and supplies. (1) The Department of Revenue shall maintain its principal offices in the state capital and shall be furnished with suitable office quarters under ORS 276.004. The department may maintain offices or conduct its business in other places in the state in order to facilitate the discharge of its functions.

      (2) Necessary printing for the department shall be performed in the same manner as other state printing. All necessary office equipment and supplies required by the department shall be purchased from the appropriation made for the salaries and the general and contingent expenses of the department. [Formerly 306.060; 1969 c.520 §25; 1969 c.706 §64c; 1997 c.325 §1]

 

      305.063 Department of Revenue Administration Account; use; limitation. (1) There is established in the General Fund of the State Treasury the Department of Revenue Administration Account. Notwithstanding any other law, such amounts as may be necessary to pay the administrative expenses of the Department of Revenue shall be continuously credited to the Department of Revenue Administration Account from the biennial appropriations, or transferred to such administration account from the accounts or funds of the divisions and other agencies within the department. Such amounts as may be requested quarterly by the Director of the Department of Revenue, with the approval of the Oregon Department of Administrative Services, shall be credited or transferred to the Department of Revenue Administration Account from the biennial appropriations, accounts or funds of the divisions and other agencies within the department. The Department of Revenue is subject to the allotment system provided for in ORS 291.234 to 291.260.

      (2) The amounts credited and transferred to the Department of Revenue Administration Account shall not be greater than the total of any budget approved for the department by the Legislative Assembly and shall be determined by the costs of the administrative, supervisory, legal and review services provided the respective divisions and agencies within the department. All moneys appropriated, credited or transferred to the Department of Revenue Administration Account are appropriated continuously to pay the administrative expenses of the department. [1969 c.520 §48]

 

      305.065 Deputy director; appointment; qualifications. The Director of the Department of Revenue, with the approval of the Governor, may designate a deputy director, to serve at the pleasure of the director, with full authority to act for the director, but subject to the control of the director. The deputy director shall be skilled and expert in matters of taxation and shall devote the entire time of the deputy director to the performance of the duties of the deputy director in the department. The designation of a deputy director shall be by written order filed with the Secretary of State. [1969 c.520 §§8,9; 1973 c.402 §3]

 

      305.070 [Formerly 306.070; repealed by 1969 c.520 §49]

 

      305.075 Employees; appointment; duties; compensation and expenses. (1) Subject to any applicable provisions of the State Personnel Relations Law:

      (a) The Director of the Department of Revenue may appoint and remove such officers, agents and employees as the director considers necessary. Such persons shall have the duties and powers the director from time to time prescribes.

      (b) The compensation of all such officers, agents and employees shall be fixed by the director.

      (2) Subject to and in the manner otherwise provided by law, all officers, agents and employees of the Department of Revenue shall be allowed such reasonable and necessary traveling and other expenses as may be incurred in the performance of their duties. [1969 c.520 §11; 1985 c.761 §6]

 

      305.078 Authority of Department of Revenue to require fingerprints. For the purpose of requesting a state or nationwide criminal records check under ORS 181.534, the Department of Revenue may require the fingerprints of a person who:

      (1)(a) Is employed or applying for employment by the department; or

      (b) Provides services or seeks to provide services to the department as a contractor or volunteer; and

      (2) Is, or will be, working or providing services in a position:

      (a) In which the person is providing information technology services and has control over, or access to, information technology systems that would allow the person to harm the information technology systems or the information contained in the systems;

      (b) In which the person has access to information, the disclosure of which is prohibited by state or federal laws, rules or regulations or information that is defined as confidential under state or federal laws, rules or regulations;

      (c) That has payroll functions or in which the person has responsibility for receiving, receipting or depositing money or negotiable instruments, for billing, collections or other financial transactions or for purchasing or selling property or has access to property held in trust or to private property in the temporary custody of the state;

      (d) That has mailroom duties as the primary duty or job function of the position;

      (e) In which the person has access to personal information about employees or members of the public including Social Security numbers, dates of birth, driver license numbers, personal financial information or criminal background information; or

      (f) In which the person has access to tax or financial information of individuals or business entities. [2005 c.730 §50]

 

      Note: 305.078 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 305 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      305.080 [Formerly 306.080; repealed by 1969 c.520 §49]

 

      305.083 [1969 c.520 §13; repealed by 1973 c.402 §30]

 

      305.085 Charges for maps, documents or publications. The Department of Revenue is hereby authorized to charge a reasonable sum reflecting its costs, for each copy sold of maps, documents, or publications such as those containing its laws and administrative rules or reports. The proceeds from such sales are to be deposited in the department’s miscellaneous receipts account established under the authority of ORS 279A.290. [1969 c.479 §3; 1973 c.402 §4; 2003 c.794 §253]

 

      305.090 [Formerly 306.090; repealed by 1983 c.605 §6]

 

(Tax Administration)

 

      305.100 Rules; forms. The Department of Revenue shall:

      (1) Make such rules and regulations it deems proper to regulate its own procedure and to effectually carry out the purposes for which it is constituted.

      (2) Prescribe all forms of books and blanks used in the assessment and collection of taxes not otherwise prescribed by law and change the forms of blanks and books prescribed by law in case change is necessary. [Formerly 306.100]

 

      305.102 Constitutional property tax limit; rules. The Department of Revenue shall adopt rules that it considers necessary to carry out the provisions of chapter 459, Oregon Laws 1991, relating to Local Budget Law, appeals to boards of property tax appeals, administration of the property tax laws, imposition and collection of taxes on property or compliance by local taxing officials with the requirements of section 11b, Article XI of the Oregon Constitution. [1991 c.459 §35; 1995 c.650 §107; 1997 c.541 §§49,50]

 

      Note: 305.102 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 305 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      Note: Legislative Counsel has substituted “chapter 459, Oregon Laws 1991,” for the words “this Act” in section 35, chapter 459, Oregon Laws 1991, compiled as 305.102. Specific ORS references have not been substituted, pursuant to 173.160. These sections may be determined by referring to the 1991 Comparative Section Table located in Volume 20 of ORS.

 

      305.105 Declaratory rulings by department; rules. The Department of Revenue in its discretion may, on petition by any interested person, issue a declaratory ruling with respect to the applicability to any person, property or state of facts of any rule or statute enforceable by it. The department shall prescribe by rule the form, content and procedure for submission, consideration and disposition of such petitions. Full opportunity for hearing shall be afforded to interested parties. A declaratory ruling shall bind the department and all parties to the proceedings on the state of facts alleged, unless it is altered or set aside by a court. A ruling shall be subject to review in the Oregon Tax Court and Supreme Court in the manner provided by ORS 305.445. [Formerly 306.710; 1989 c.414 §2]

 

      305.110 Duty to construe tax laws; instruction of officers acting under tax laws. The Department of Revenue shall construe the tax and revenue laws of this state whenever requested by any interested person or by any officer acting under such laws and shall instruct such officers as to their duties under such laws. Such officers shall submit all questions arising with them which affect the construction of tax and revenue laws of the state to the department. [Formerly 306.110]

 

      305.115 [1969 c.520 §10; 1977 c.870 §8; 1979 c.527 §1; 1979 c.687 §5; 1981 c.139 §6; 1985 c.761 §7; 1987 c.512 §1; 1987 c.758 §7; 1991 c.459 §11; repealed by 1995 c.650 §114]

 

      305.120 Enforcement of tax laws. (1) The Department of Revenue shall see that revenue officers comply with the tax and revenue laws, that all taxes are collected, that complaint is made against any person violating such laws and that penalties prescribed by such laws are enforced.

      (2) The Director of the Department of Revenue may call upon the district attorney or Attorney General to institute and conduct prosecutions for violations of the laws in respect to the assessment and taxation of property and the collection of public taxes and revenues. [Formerly 306.140]

 

      305.130 Department as party to actions involving property subject to certain tax liens; complaint and summons. (1) The Department of Revenue may be made a party in any action in any court of this state or of the United States having jurisdiction of the subject matter to quiet title to, to remove a cloud from the title to, or for the foreclosure of a mortgage or other lien upon, any real property or personal property, or both, upon which the State of Oregon has or claims to have a lien under ORS 311.673, 311.679, 311.771, 314.430 or 321.570 or ORS chapter 323, and the judgment in such action shall be conclusive and binding upon the State of Oregon and such department.

      (2) The complaint in such action shall set forth with particularity the nature of any such lien had or claimed by the State of Oregon. The summons in such action, together with a copy of the complaint therein, shall be served on such department in the manner prescribed by ORCP 7 D(3)(d), and such summons shall require such department to appear and answer the complaint within 60 days from the date of such service. [1961 c.573 §4; 1979 c.284 §134; 1981 c.706 §6; 1985 c.816 §37; 1987 c.158 §43; 1989 c.948 §7; 2003 c.804 §63]

 

      305.140 Power to release real property from certain tax liens. (1) Any person having an interest in or lien upon any real property may request the Department of Revenue in writing to release such real property from a cloud on the title of or lien on such property existing, created or continued under any one or more of the following:

      (a) A warrant provided for in ORS 314.430, 321.570 or 323.610; or

      (b) The provisions of ORS 311.673, 311.679, 311.689, 311.711 or 311.771.

      (2) If, upon a request under subsection (1) of this section, the department finds that a sale of such real property would not result in satisfaction in whole or in part of the taxes due, it shall execute a release of such cloud or lien upon such property, and such release shall be conclusive evidence of the removal and extinguishment of such cloud or lien in respect of such real property.

      (3) In addition to the release of cloud or lien provided for in subsection (1) of this section, the department may execute releases on part or all of any real property in the following cases, which releases shall be conclusive evidence of the removal and extinguishment of such cloud or lien:

      (a) If the department finds that liability for the amount assessed, together with all interest thereon and penalties and costs in respect thereof, has been satisfied;

      (b) If the department finds that the fair market value of that part of the property remaining subject to the cloud or lien is at least double the amount of the liability remaining unsatisfied in respect of such tax and the amount of all prior liens upon the property;

      (c) If there is supplied to the department either an irrevocable letter of credit issued by an insured institution as defined in ORS 706.008 or a bond, in such form and with such surety as the department considers sufficient, conditioned upon the payment of the amount of the warrant, together with all interest in respect thereof, within 60 days after the issuance of the release; or

      (d) If there is paid to the department in partial satisfaction of the amount of the warrant provided for in ORS 314.430, 321.570 or 323.610 or the amount of any lien under ORS 311.673, 311.679, 311.689, 311.711 or 311.771, an amount not less than the value, as determined by the department, of the lien of the State of Oregon upon the part of the property so to be released. In determining such value the department shall give consideration to the fair market value of the part of the property so to be released and to such liens thereon as have priority to the lien of the State of Oregon. [1961 c.573 §3 (enacted in lieu of 314.435, 315.635 and 321.085); 1981 c.706 §7; 1985 c.816 §38; 1987 c.158 §44; 1989 c.948 §8; 1991 c.331 §53; 1997 c.631 §448]

 

      305.145 When interest required to be waived; power to waive, reduce or compromise small tax balance or penalty and interest; rules. (1) The Department of Revenue or a county tax collector shall waive interest on an assessment if the taxpayer has failed to make a timely payment or has received an incorrect refund because:

      (a) An employee of the department or of a county tax collector acting in an official capacity, who had knowledge of the necessary facts, misled the taxpayer either by some erroneous factual representation or by a course of dealing or conduct;

      (b) The taxpayer relied on the misleading factual representation or conduct; and

      (c) The taxpayer failed to make a timely payment or has received an incorrect refund by reason of the taxpayer’s reliance on the information or course of conduct.

      (2) Notwithstanding the provisions of subsection (1) of this section, interest may not be waived after the appeal period for a final determination has expired.

      (3) The Department of Revenue may, in its discretion, upon good and sufficient cause, according to and consistent with its rules and regulations, upon making a record of its reason therefor, waive, reduce or compromise any tax balance of $50 or less or any part or all of the interest provided by the laws of the State of Oregon that are collected by the Department of Revenue.

      (4) The department may establish by rule instances in which the department may, in its discretion, waive any part or all of penalties provided by the laws of the State of Oregon that are collected by the department. Rules adopted under this subsection are limited to the waiver or reduction of penalties in cases where:

      (a) Good and sufficient cause exists for the actions of a taxpayer that resulted in the imposition of a penalty;

      (b) The actions of a taxpayer that resulted in the imposition of a penalty constitute a first-time offense on the part of the taxpayer; or

      (c) The actions of the department enhance long-term effectiveness, efficiency or administration of the tax system. [1965 c.293 §1; 1971 c.611 §1; 1985 c.761 §8; 1987 c.477 §1; 1995 c.650 §108; 2005 c.136 §1]

 

      305.150 Closing agreements. (1) The Department of Revenue is authorized to enter into an agreement in writing with any person relating to the liability of such person, or of the person or estate for whom the person acts, for any taxable period open to adjustment under the pertinent statutes of limitation, in respect of any revenue measure which the department is required to administer.

      (2) Such agreement shall be final and conclusive on the date agreed to, and, except upon a showing of fraud or malfeasance or misrepresentation of a material fact, the question, issue or case shall not be reopened as to the matters agreed upon, and, in any action, suit or proceeding, such agreement, or any determination, assessment, collection, refund, abatement or credit made in accordance therewith shall not be annulled, modified, set aside or disregarded. [Formerly 306.720; 1969 c.520 §26]

 

      305.155 Cancellation of uncollectible tax; filing order; releasing liens. (1) The Department of Revenue shall cancel an unpaid tax imposed by laws of the State of Oregon that is collected by the department, including any penalty or interest applicable to the tax, if the department determines that:

      (a) The tax has been delinquent for seven or more years;

      (b) All reasonable efforts have been made to effect collection;

      (c) The taxpayer cannot be located or is dead; and

      (d) The tax is wholly uncollectible.

      (2) The department may cancel any tax imposed by laws of the State of Oregon that is collected by the department or any portion of the tax assessed against a person, including any penalty and interest that has not been collected, if the department determines that the administration and collection costs involved would exceed the amount that can reasonably be expected to be recovered.

      (3) When taxes are canceled under subsection (1) or (2) of this section, the department shall make an order canceling the tax, penalties and interest. The order shall be filed in the records of the department. Upon making the order, the department also shall cause to be canceled or released any lien of record in the counties that may have been filed and entered therein. [1965 c.293 §2; 1973 c.402 §5; 1989 c.934 §2; 2003 c.46 §2]

 

      305.157 Extending statutory periods of limitation. (1) The Director of the Department of Revenue by order may extend any statutory period of limitation for taking action on any tax that is collected by the Department of Revenue when the director determines, in the director’s sole discretion, that an action of the Internal Revenue Service or a state-declared emergency will impair the ability of Oregon taxpayers or the state to take the action required within the time prescribed by law. The order may apply retroactively and extend a period of limitation that, as of the date of the order, has expired.

      (2) The Secretary of State shall publish the order in the bulletin referred to in ORS 183.360. [2003 c.168 §2]

 

      305.160 Reports from public officers. The Department of Revenue shall require from any state, county or municipal officer, whose duties pertain to the assessment, apportionment, levy or collection of taxes and public revenues, or the disbursement of public funds, reports and statements in such forms as the department may prescribe, as to any matter deemed material and relevant to the attainment of uniformity in the assessment and collection of taxes and public revenues. [Formerly 306.160]

 

      305.170 Complaints concerning tax laws; reports and recommendations to Legislative Assembly. The Department of Revenue:

      (1) Shall see that complaints concerning the law may be heard, information as to its effects may be collected and all proper suggestions as to amendments may be made.

      (2) Shall report to the Legislative Assembly, at each regular session, the total amount of taxes collected in the state for state, county and municipal purposes.

      (3) May investigate the tax laws of this and other states and the possible taxable resources of this state for the purpose of recommending to the legislature methods by which a more just and equitable system of taxation may be developed.

      (4) Shall recommend to the Legislative Assembly at each regular session such amendments of the Constitution or laws as may seem necessary to remedy injustice or irregularity in taxation, or to facilitate the assessment and collection of public taxes and revenues. [Formerly 306.170; 1975 c.605 §16]

 

      305.180 Effect of tax warrant for purposes of out-of-state collection. (1) For the purposes of out-of-state collections, a tax warrant shall have the effect of a judgment as provided by ORS 205.125 and 314.430. However, if the laws of another state require a judgment issued by a court for the purposes of executing creditor’s remedies in that state, the Department of Revenue may obtain a judgment based upon a tax warrant as provided in this section.

      (2) The department shall give 30 days’ written notice to any person subject to a warrant for the collection of taxes, penalties or interest of its intention to obtain a judgment in the Oregon Tax Court. Such notice shall be given by either certified or registered mail. The person subject to the warrant shall have 30 days from the date of mailing of the notice to:

      (a) Pay the amount of taxes, penalties and interest due; or

      (b) File a complaint in the Oregon Tax Court contesting the validity of the warrant.

      (3) If the amount due is not paid or an appeal to the Oregon Tax Court is not made within 30 days from the date of mailing of the notice, the department may petition the Oregon Tax Court to enter a judgment in the amount indicated in the warrant plus interest.

      (4) Upon a showing by the department, by affidavit or otherwise, that the department has complied with the provisions governing the issuance of a warrant and the provisions of this section, the Oregon Tax Court shall enter a judgment against the person subject to the warrant in the amount indicated in the warrant plus interest.

      (5) Appeals from judgments issued under subsection (4) of this section shall be made in the manner provided for appeal of a judgment of the Oregon Tax Court. [1989 c.423 §2; 1995 c.53 §1; 1995 c.650 §109]

 

      305.182 Filing of warrants for unpaid taxes; release, cancellation and satisfaction. (1) The Department of Revenue may file warrants issued against any taxpayer for unpaid taxes in the Office of the Secretary of State as provided in this section.

      (2) Certification of warrants for unpaid taxes by the Director of the Department of Revenue, or the representative of the director, entitles the warrants to be filed and no other certification or acknowledgment is necessary.

      (3) If a warrant described in subsection (1) of this section is presented to the Secretary of Stat