Oregon Chapter 305
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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
2007 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; rules
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; rules
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; rules
305.305 Procedure
where deficiency based on federal or other state audit report; effect of
appeal; interest suspension
305.330 Tax
liability of reorganized business entity
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
(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
305.612 Reciprocal
offset of tax refunds in payment of liquidated tax obligations; rules
305.615 Apportionment
of moneys received from
(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
305.645 Department
of Revenue to provide services to political subdivisions
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
305.723 Eligibility
roster
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 Nongame Wildlife Fund; rules
305.751 Rules
305.753 State
Treasurer may solicit donations to eligible entities; department rules
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
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
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
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
(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 State for filing, the
Secretary of State shall cause the warrant to be marked, held and indexed in
accordance with the provisions of ORS 79.0519 as if the warrant were a
financing statement within the meaning of ORS chapter 79.
(4) If a certificate of release,
cancellation or satisfaction of any warrant is presented to the Secretary of
State for filing, the Secretary of State shall:
(a) Cause a certificate of release to be
marked, held and indexed as if the certificate were a termination statement
within the meaning of ORS 79.0512.
(b) Cause a certificate of cancellation or
satisfaction to be held, marked and indexed as if the certificate were a
release of collateral within the meaning of ORS 79.0512. [Formerly 314.432;
2001 c.445 §172]
305.184
Certificate of outstanding warrants; fee; rules. (1) Upon request of any person, the
Secretary of State shall issue a certificate showing whether there is on file
in the Office of the Secretary of State, on the date and hour stated therein,
any warrant described in ORS 305.182 (1), or certificate or notice affecting
any warrant naming a particular person, and if a notice or certificate is on
file, giving the date and hour of its filing. All financing statements and
statements of assignment, if any, filed pursuant to ORS chapter 79 for a
particular debtor whose name is identical to the particular person named in the
warrant shall be shown on this certificate. The uniform fee for such a
certificate for a particular person shall be prescribed by the Secretary of
State by rule. If the request for the certificate is in writing and not in the
standard form prescribed by the Secretary of State, an additional fee shall be
prescribed. Upon request, the Secretary of State shall furnish a copy of any
warrant or notice or certificate affecting a warrant for a fee per page, the
fee to be as prescribed by the Secretary of State by rule. No fee prescribed
under this subsection shall exceed $5.
(2) Notwithstanding the provisions of ORS
79.0525 or subsection (1) of this section, relating to the time and manner of
the payment of fees to the Secretary of State, the fee for filing and indexing
each warrant described in ORS 305.182 (1) shall be charged and collected in the
same manner as provided in ORS 205.395 for payment by a state agency of fees
due to the county clerk for recording warrants. [Formerly 314.434; 2001 c.445 §173]
305.190
Subpoenaing and examining witnesses, books and papers; application to tax court
for disobeyance of subpoena.
(1) Subject to ORS 305.390 and 305.392, the Director of the Department of
Revenue, in conformity to the resolutions or rules of the Department of
Revenue, may subpoena and examine witnesses, administer oaths and order the
production of any books or papers in the hands of any person, company or
corporation, whenever necessary in the prosecution of any inquiries deemed
necessary or proper.
(2) If any person disobeys any subpoena of
the director, or refuses to testify when required by the director, the
department may apply to the Oregon Tax Court for an order to the person to
produce the books and papers or attend and testify, or otherwise comply with
the demand of the department. The application to the court shall be by ex parte
motion upon which the court shall make an order requiring the person against
whom it is directed to appear before the court in the county in which the
person resides or has a place of business on such date as the court shall
designate in its order and show cause why the person should not comply with the
demand of the department. The order shall be served upon the person to whom it
is directed in the manner required by this state for service of process, which
service shall be required to confer jurisdiction upon the court. Upon failure
of such person to show cause for noncompliance, the court shall make an order
requiring the person to comply with the demand of the department within such
time as the court shall direct. Failure to obey any order issued by the court
under this section is contempt of court. The remedy provided by this section
shall be in addition to other remedies, civil or criminal, existing under the
tax laws or other laws of this state.
(3) ORS 305.420 (4) applies to the
issuance of a subpoena under this section. [Formerly 306.190; 1977 c.884 §4;
1981 c.139 §7; 1993 c.353 §5; 2003 c.46 §3; 2005 c.345 §3]
305.192
Disclosure of books and papers relating to appraisal or assessment of
industrial property. (1)
Notwithstanding ORS 192.410 to 192.505 or any other law or rule, any books or
papers produced by an owner or any other person with respect to an industrial
property, pursuant to an order issued under ORS 305.190 (1) in connection with
the appraisal or assessment of industrial property, shall be exempt from
disclosure by the Department of Revenue. No subpoena or judicial order shall be
issued compelling the department or any of its officers or employees to
disclose those books or papers.
(2) Notwithstanding subsection (1) of this
section, the department may disclose, subject to any order entered by the court
limiting further disclosure, any books or papers, or any part or all of the
information contained therein, in a judicial proceeding involving the value of
that industrial property with respect to which the books and papers were
produced or any other similar industrial property.
(3) Before the department discloses
information under subsection (2) of this section, it shall notify the owner of
the property to which the information relates. The owner shall have 30 days to
seek an order from the tax court prohibiting or limiting the department’s
disclosure of the information. In determining whether to allow disclosure of
the information, the court shall consider the need for disclosure and the
possible harm to the owner from that disclosure. The decision of the tax court
is reviewable by the Supreme Court in the same manner as any other decision of
the tax court. [1991 c.903 §3; 1995 c.650 §83]
305.193
Disclosure of tax information to designated persons; rules. (1) Notwithstanding any law restricting the
disclosure of taxpayer particulars or other tax information, the Department of
Revenue may adopt rules permitting the disclosure of particulars or other tax
information to a person designated by a taxpayer, either expressly or by
implication, to receive the information. The department may consider a person
designated by implication if the person reveals to the department knowledge of
tax information that is:
(a) Related to the tax matter that is the
subject of the inquiry or communication;
(b) Of a nature that is generally known
only to the taxpayer; and
(c) Of a nature that a taxpayer ordinarily
would not share with another person except for the purpose of empowering that
person to receive information regarding the tax matters of the taxpayer.
(2) Rules adopted under this section may
be limited in application to specific tax programs or specific classes of
taxpayers.
(3) This section does not apply to any
particulars or other tax information collected for purposes of administering
the provisions of ORS chapter 657.
(4) As used in this section, “particulars”
has the meaning given that term in ORS 314.835. [2003 c.541 §3]
305.195
Written interrogatories; contents; time and manner of service; answer;
objection; order for answer; demand for information by taxpayer; order for
information. (1) The
Department of Revenue may serve upon any taxpayer written interrogatories to be
answered by the taxpayer served or, if the taxpayer served is a corporation,
partnership or association, by any officer or agent, who shall furnish such
information as is available to the taxpayer. Interrogatories may be served by
the department whenever it deems it necessary for the purpose of determining
the tax liability of any taxpayer having income from business activity which is
taxable both within and without the state. The request for the interrogatories
shall explain the nature of the department’s inquiry, the use to be made of the
information, and the rights of appeal provided under subsection (4) of this
section. The use of interrogatories shall be available at all times prior to a
final order or determination by the department in the matter being
investigated.
(2) Each interrogatory shall be answered
separately and fully in writing under oath, unless it is objected to, in which
event the reasons for objection shall be stated in lieu of an answer. The
answers are to be signed by the person making them. All objections made to
written interrogatories must be signed by the attorney for the party making the
objection, or by the party if the party has no attorney. The taxpayer upon whom
the interrogatories have been served shall serve a copy of the answers, and
objections if any, within 30 days after the service of the interrogatories.
(3) If any taxpayer refuses or fails to
answer an interrogatory within the time required, the department may apply to
the Oregon Tax Court for an order requiring answer of the interrogatory served.
The application to the court shall be by ex parte motion upon which the court
shall make an order requiring the taxpayer against whom it is directed to
appear before the court on such date as the court shall designate in its order
and show cause why the taxpayer should not answer the interrogatory of the
department. The order shall require appearance in the county in which the
person resides or has a place of business, or if there is no residence or place
of business, at the court at
(4) If, after the taxpayer has been served
with the department’s interrogatories, the taxpayer has reason to believe that
the taxpayer has not been fully informed by the department as to the nature of
the department’s inquiry or the use by the department of the information
supplied, the taxpayer may, within 30 days after service upon the taxpayer,
serve upon the department a demand for full information as to such inquiry and
use. The department shall answer the demand within 30 days of receipt. If no
answer is made by the department, or if answer is made and the answer is deemed
unsatisfactory by the taxpayer, the taxpayer may within 30 days of the
department’s answer, or 60 days of the demand if no answer has been made, apply
to the Oregon Tax Court for an order requiring answer of the department by
filing a petition in the manner provided by law for filing a personal income
tax appeal to the court. The department shall answer and, after hearing, the
court shall make such disposition of the matter as it deems necessary to
achieve justice. [1977 c.866 §8]
Note: 305.195 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.
305.200
Witness fees and mileage.
Witnesses testifying before the Department of Revenue at its request and on its
behalf shall be allowed the fees and mileage provided for witnesses in ORS
44.415 (2). The fees and mileage shall be paid by warrant upon the State
Treasurer upon the certificate of the Director of the Department of Revenue.
However, any county or state officer shall receive the actual necessary
traveling expenses of the county or state officer only. No tender of witness
fees or mileage in advance shall be necessary. [Formerly 306.200; 1969 c.520 §27;
1989 c.980 §11]
305.210 [Formerly 306.210; repealed by 1981 c.705 §8]
305.215
Conflicting claims for credit for dependent; notice procedure; appeal; evidence
as public record. (1) Where
there are conflicting claims to a personal exemption credit for a dependent
allowed under the personal income tax laws, the Department of Revenue shall
notify by certified mail each person claiming the same dependent, and shall set
a time and place convenient to each claim insofar as it is practicable, for a
joint determination of the conflicting claims. Each person so notified who
appears shall bring the information from the person’s income tax returns or
reports that supports the person’s claim, together with all records, data or
other evidence providing the necessary supporting material to the information
shown on the income tax return. All such material shall be available for
inspection by the other claimant, notwithstanding any provision of ORS 314.835,
314.840 or 314.991. If either claimant fails or refuses to appear or bring such
information in part or in whole, the department shall make its determination on
the basis of all the information and evidence supplied. The provisions of this
chapter relating to the administration of the personal income tax laws apply to
the determination.
(2) If an appeal is taken to the Oregon
Tax Court pursuant to ORS 305.560 by either claimant, each claimant shall make
available to the court information from the person’s income tax returns or
reports supporting that person’s claim, together with all evidence or
supporting data furnished to or subpoenaed by the Department of Revenue, as
well as such other information as may be presented to the court in the manner
otherwise provided for in the hearing of cases in the Oregon Tax Court. If either
claimant fails or refuses to appear or bring such information in part or in
whole, the court shall make its determination on the basis of all the evidence
introduced. All such evidence shall constitute a public record and shall be
available to the parties and the court notwithstanding any provision of ORS
314.835, 314.840 or 314.991. [1979 c.690 §11; 1985 c.345 §4; 1987 c.293 §61;
2005 c.94 §18]
305.217
When deduction for amounts paid as wages or remuneration permitted. No deduction shall be allowed under ORS
chapter 316, 317 or 318 to an individual or entity for amounts paid as wages or
as remuneration for personal services if that individual or entity fails to
report the payments as required by ORS 314.360 or 316.202 on the date
prescribed therefor (determined with regard to any extension of time for
filing) unless it is shown that the failure to report is due to reasonable
cause and not done with the intent to evade payment of the tax imposed by ORS
chapter 316 or to assist another in evading the payment of such tax. [1987
c.843 §2]
305.220
Interest on deficiency, delinquency or refunds; adjustments in rates; rules;
computation. (1) Unless
specifically provided otherwise by statute or by rule of the Director of the
Department of Revenue adopted pursuant to subsection (3) of this section, every
deficiency or delinquency arising under any law administered by the Department
of Revenue shall bear simple interest at the rate of five-sixths of one percent
per month or fraction thereof.
(2) Unless specifically provided otherwise
by statute or by rule of the director adopted pursuant to subsection (3) of
this section, every refund arising under any law administered by the department
shall, subject to subsections (3) and (5) of this section and ORS 305.222, bear
simple interest at the rate of five-sixths of one percent per month, or
fraction thereof.
(3)(a) If the director determines that the
rates of interest for deficiencies, delinquencies and refunds established in
subsections (1) and (2) of this section are at least one percentage point more
or less than the prevailing rates of interest established by the Internal
Revenue Service for underpayments arising under the federal tax laws to which
one percentage point has been added, the director may adopt, by rule, adjusted
interest rates. The director shall not adopt adjusted interest rates more than
once in a calendar year. Notice of intent to adopt adjusted interest rates
shall be given in the manner provided in ORS 183.335, not less than three
months before the proposed effective date of the adjusted rates.
(b) In establishing the adjusted interest
rates to be adopted under this subsection:
(A) The director shall take into
consideration the current interest rates established by the Internal Revenue
Service for underpayments arising under the federal tax laws.
(B) To any interest amount determined by
taking into consideration the current interest rates established by the
Internal Revenue Service for underpayments under subparagraph (A) of this
paragraph, which interest amount shall be expressed at a rate per month or
fraction thereof, there shall be added one-twelfth of one percent.
(4) If the director adopts an adjusted
interest rate for deficiencies and delinquencies, the director shall adopt an
adjusted interest rate for refunds that is equal to the adjusted interest rate
for deficiencies and delinquencies.
(5) Any change in the rate of interest
applicable to deficiencies, delinquencies or refunds resulting from the
adoption of adjusted interest rates by the director under this section shall
apply to deficiencies, delinquencies and refunds outstanding on the effective
date of the rule, or arising on or after that date, but only with respect to
interest periods beginning on or after that date.
(6) If the rate of interest on a
deficiency, a delinquency or a refund is governed by this section, and if a
fraction of a month is involved in making the computation of interest on the
deficiency, delinquency or refund, then for the fractional month, the simple
interest otherwise provided shall be computed on a daily basis. [1982 s.s.1
c.16 §2; 1987 c.647 §5; 2001 c.114 §§2,4]
305.222
Determination of interest rate.
For purposes of determining the interest rate established under ORS 305.220:
(1) In the case of a refund of tax ordered
by the Oregon Tax Court or the Oregon Supreme Court and arising under any law
administered by the Department of Revenue, if the refund is not paid by the
department within 60 days after the date of the order, the interest rate
provided under ORS 305.220 shall be one-third of one percent greater than that
so provided under ORS 305.220, but only with respect to interest periods that
begin 61 days after the date the order is entered.
(2)(a) In the case of a notice of
assessment pursuant to any law administered by the department, if the
deficiency is not paid within 60 days after the date of the notice of
assessment, the interest rate provided under ORS 305.220 shall be one-third of
one percent greater than that so provided under ORS 305.220, but only for
interest periods that begin 61 days after the date of notice of assessment.
(b) In the case of an assessment under ORS
305.265 (12), if the delinquency is not paid within 60 days after the date of
the assessment, the interest rate provided under ORS 305.220 shall be one-third
of one percent greater than that so provided under ORS 305.220. The increased
rate shall apply only for interest periods that begin 61 days after the date of
notice of the delinquency.
(3) If the deficiency assessment is
appealed to the Oregon Tax Court without prior payment of tax, then
notwithstanding subsection (2) of this section, the increased rate of interest
shall commence only for interest periods that begin 61 days after the date that
the order of the Oregon Tax Court or the Oregon Supreme Court affirming the
deficiency is entered. [1987 c.647 §7; 1993 c.726 §2; 1995 c.650 §110; 1997
c.325 §§3,4]
305.225
Request of assistance by law enforcement agency; disclosure of tax records. (1) Notwithstanding ORS 314.835, if the
Department of Revenue determines that assistance of a law enforcement agency is
necessary to insure compliance with any of the laws of this state administered
by it, the department may request such assistance. In connection with
assistance requested under this section only, the Department of Revenue may
disclose a tax return, report or claim, or information in its files regarding a
tax return, report or claim permitted or required to be filed with the
department under any law administered by the department to the Oregon State
Police, district attorney, grand jury or judicial authority for the
investigation or the prosecution of violations of the criminal laws of this
state relating to perjury, theft or forgery if those violations occur in
connection with the filing of such a return, report or claim, or of the tax
laws of this state. Disclosure under this section shall be solely for the
purpose of investigation or prosecution of violations involving the filing of a
false or fraudulent return, report or claim, wherein the validity of the
return, report or claim, or information contained therein, is at issue.
Returns, reports or claims, or information contained therein shall not be
disclosed if the purpose for which the information is sought is as evidence of
a crime unrelated to the validity of the return, report or claim, or the
information contained therein, supplied to the department or if the information
is requested by a law enforcement agency in connection with any other
investigation or prosecution.
(2) Each person given access to the
confidential tax information authorized to be disclosed under this section
shall first execute and file with the department the certificate required by
ORS 314.840 (3) and shall cause a similar certificate to be executed and filed
with the department by any associate or subordinate who is assigned to use the
information for the purposes stated in this section. [1985 c.761 §26]
305.227 [1985 c.85 §2; repealed by 1993 c.593 §10]
305.228
Penalty for second dishonored payment of taxes; waiver. (1) The Department of Revenue shall assess a
penalty against any person who has previously tendered a dishonored check,
draft, order or electronic funds transfer for the payment of any amount
collected by the department and who subsequently makes and tenders to the
department any check, draft, order or electronic funds transfer for the payment
of any tax or any other amount collected by the department, including amounts
assigned for collection under ORS 293.250, that is dishonored by the drawee for
the following reasons:
(a) Lack of funds;
(b) Lack of credit;
(c) Because the maker has no account with
the drawee; or
(d) Because the maker has ordered payment
stopped on the check, draft, order or electronic funds transfer.
(2) The amount of the penalty assessed
under subsection (1) of this section shall be equal to the greater of $25 or
three times the amount of the dishonored check, draft, order or electronic
funds transfer. The amount of the penalty shall not be greater than $500.
(3) The penalty imposed under this section
is in addition to any other penalty imposed by law. Any person against whom a
penalty is assessed under this section may appeal to the tax court as provided
in ORS 305.404 to 305.560. If the penalty is not paid within 10 days after the
order of the tax court becomes final, the department may record the order and
collect the amount assessed in the manner as income tax deficiencies are
recorded and collected under ORS 314.430.
(4) The department may waive all or any
part of the penalty assessed under this section on a showing that there was a
reasonable basis for tendering the check, draft, order or electronic funds
transfer.
(5) As used in this section, “electronic
funds transfer” has the meaning given that term in ORS 293.525. [1985 c.85 §3;
1995 c.650 §111; 1999 c.61 §1]
305.229
When penalties not imposed; rules. Notwithstanding any other provision of the tax laws of this state that
are administered by the Department of Revenue, the department may adopt rules setting
forth circumstances or conditions under which a penalty that otherwise would be
imposed under those tax laws is not imposed. [2003 c.317 §5]
(Representation
of Taxpayer)
305.230
Qualifications of persons representing taxpayer; procedure for designating
representative; rules. (1)
Notwithstanding ORS 9.320:
(a) Any person who is qualified to
practice law or public accountancy in this state, any person who has been
granted active enrollment to practice before the Internal Revenue Service and
who is qualified to prepare tax returns in this state or any person who is the
authorized employee of a taxpayer and is regularly employed by the taxpayer in
tax matters may represent the taxpayer before a tax court magistrate or the
Department of Revenue in any conference or proceeding with respect to the
administration of any tax.
(b) Any person who is licensed by the
State Board of Tax Practitioners or who is exempt from such licensing
requirement as provided for and limited by ORS 673.610 may represent a taxpayer
before a tax court magistrate or the department in any conference or proceeding
with respect to the administration of any tax on or measured by net income.
(c) Any shareholder of an S corporation,
as defined in section 1361 of the Internal Revenue Code, as amended and in
effect on December 31, 2006, may represent the corporation in any proceeding
before a tax court magistrate or the department in the same manner as if the
shareholder were a partner and the S corporation were a partnership. The S corporation
must designate in writing a tax matters shareholder authorized to represent the
S corporation.
(d) An individual who is licensed as a
real estate broker or principal real estate broker under ORS 696.022 or is a
state certified appraiser or state licensed appraiser under ORS 674.310 or is a
registered appraiser under ORS 308.010 may represent a taxpayer before a tax
court magistrate or the department in any conference or proceeding with respect
to the administration of any ad valorem property tax.
(e) A general partner who has been
designated by members of a partnership as their tax matters partner under ORS
305.242 may represent those partners in any conference or proceeding with
respect to the administration of any tax on or measured by net income.
(f) Any person authorized under rules
adopted by the department may represent a taxpayer before the department in any
conference or proceeding with respect to any tax. Rules adopted under this
paragraph, to the extent feasible, shall be consistent with federal law that
governs representation before the Internal Revenue Service, as federal law is
amended and in effect on December 31, 2006.
(g) Any person authorized under rules
adopted by the tax court may represent a taxpayer in a proceeding before a tax
court magistrate.
(2) A person may not be recognized as
representing a taxpayer pursuant to this section unless there is first filed
with the magistrate or department a written authorization, or unless it appears
to the satisfaction of the magistrate or department that the representative
does in fact have authority to represent the taxpayer. A person recognized as
an authorized representative under rules or procedures adopted by the tax court
shall be considered an authorized representative by the department.
(3) A taxpayer represented by someone
other than an attorney is bound by all things done by the authorized
representative, and may not thereafter claim any proceeding was legally
defective because the taxpayer was not represented by an attorney.
(4) Prior to the holding of a conference
or proceeding before the tax court magistrate or department, written notice
shall be given by the magistrate or department to the taxpayer of the
provisions of subsection (3) of this section. [1969 c.97 §1; 1973 c.681 §3;
1979 c.596 §1; 1985 c.761 §40; 1985 c.802 §35; 1987 c.468 §6; 1989 c.414 §3;
1991 c.5 §19; 1995 c.79 §106; 1995 c.556 §30; 1995 c.650 §12; 1997 c.839 §41;
1999 c.90 §28; 1999 c.224 §4; 1999 c.322 §36; 2001 c.300 §59; 2001 c.660 §23;
2003 c.46 §4; 2003 c.77 §1; 2003 c.704 §14a; 2005 c.345 §4; 2005 c.346 §1; 2005
c.832 §13; 2007 c.319 §28; 2007 c.614 §1]
305.240 [1969 c.520 §14; repealed by 1979 c.596 §2]
305.242
Representation before department or magistrate of designated partnership tax
matters; designated tax partner. (1) When the treatment of partnership items on a partner’s return is
consistent with the treatment of that item on the partnership return and
results in a notice of deficiency, the partners may designate a tax matters
partner to represent each of them before the Department of Revenue in any
conference or before a tax court magistrate in any proceeding with respect to
the administration of any tax on or measured by net income.
(2) The designation of a tax matters
partner shall be made in writing and filed with the department or magistrate
within 30 days after the date of the notice of deficiency. The tax matters
partner must be:
(a) A general partner in the partnership
at some time during the taxable year; or
(b) A general partner in the partnership
at the time the designation is made.
(3) If a notice explaining the partnership
adjustments is mailed by the department to the tax matters partner with respect
to any partnership taxable year, the tax matters partner shall supply the
department or, if applicable, the magistrate with the name, address, profits
interest and taxpayer identification number of each person who was a partner in
the partnership at any time during the taxable year, unless that information
was provided in the partnership return for that year.
(4) A timely request for a conference
filed with the department or appeal filed with the tax court by the tax matters
partner shall be considered as a request or an appeal by all of the partners
represented by the tax matters partner, and all issues regarding treatment of
partnership items shall be resolved in a single conference.
(5) A partner who elects to be represented
by a tax matters partner shall be bound by all things done by the tax matters
partner and may not thereafter claim that any act or proceeding was legally
defective because the partner was not represented by an attorney. [1989 c.414 §1;
1995 c.650 §13]
Note: 305.242 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.
305.245
Representation before tax court magistrate by officer or employee of county or
department. Notwithstanding
ORS 8.690, 9.160, 9.320, ORS chapter 180, ORS 203.145 or other law, in any
conference or proceeding before a tax court magistrate with respect to the
administration of any tax, a county or the Department of Revenue may be
represented by any officer or authorized employee of the county or department. [1985
c.761 §39; 1995 c.650 §14]
305.250 [1969 c.520 §12; repealed by 1975 c.705 §12]
305.260
Representation before department or magistrate by former department personnel
prohibited. No former
officer, clerk or employee of the Department of Revenue shall represent any
taxpayer in any claim or controversy pending in the Department of Revenue or in
the magistrate division of the tax court during the employment of the former
officer, clerk or employee therein, nor shall the former officer, clerk or
employee in any manner or by any means, aid in the prosecution of any such
claim, within two years next after the former officer, clerk or employee has
ceased to be such officer, clerk or employee. [1973 c.402 §25(1); 1995 c.650 §15]
(Tax
Deficiencies; Notice; Appeals)
305.263
Order requiring filing report or return; show cause; contempt; appeal. (1) If a person fails to file a report or
return within 60 days of the time prescribed by any tax law administered by the
Department of Revenue, the department may petition the Oregon Tax Court for an
order requiring the person to file the report or return or to show cause why
the person is not required to file the report or return.
(2) Within 10 days after the filing of the
petition, the tax court shall enter an order directing the person to file the
report or return or to appear and show cause why no report or return is
required to be filed. The petition and order shall be served upon the person in
the manner provided by law for service of a complaint filed in the tax court.
Not later than 20 days after service, the person shall:
(a) File the requested report or return
with the department;
(b) Request from the court an order
granting reasonable time within which to file the requested report or return
with the department; or
(c) File with the court an answer to the
petition showing cause why such report or return is not required to be filed.
(3)(a) If an answer is filed, the court
shall set the matter for hearing within 20 days from the filing of the answer,
and shall determine the matter in an expeditious manner, consistent with the
rights of the parties.
(b) If the person fails to answer within
the time prescribed, or if the person fails to obey any order entered by the
tax court under this section, such failure is punishable as contempt of court.
(4) An appeal may be taken to the Supreme
Court as provided in ORS 305.445, from an order of the tax court made and
entered after a hearing and determination under subsection (3) of this section.
(5) Costs shall be awarded to the
prevailing party. [1985 c.266 §3]
305.265
Deficiency notice; payment of deficiency; assessment; appeal; interest; rules. (1) Except as provided in ORS 305.305, the
provisions of this section apply to all reports or returns of tax or tax
liability including claims under ORS 310.630 to 310.706 filed with the
Department of Revenue under the revenue and tax laws administered by it, except
those filed under ORS 320.005 to 320.150.
(2) As soon as practicable after a report
or return is filed, the department shall examine or audit it, if required by
law or the department deems such examination or audit practicable. If the
department discovers from an examination or an audit of a report or return or
otherwise that a deficiency exists, it shall compute the tax and give notice to
the person filing the return of the deficiency and of the department’s
intention to assess the deficiency, plus interest and any appropriate penalty.
Except as provided in subsection (3) of this section, the notice shall:
(a) State the reason for each adjustment;
(b) Give a reference to the statute,
regulation or department ruling upon which the adjustment is based; and
(c) Be certified by the department that
the adjustments are made in good faith and not for the purpose of extending the
period of assessment.
(3) When the notice of deficiency
described in subsection (2) of this section results from the correction of a
mathematical or clerical error and states what would have been the correct tax
but for the mathematical or clerical error, such notice need state only the
reason for each adjustment to the report or return.
(4) With respect to any tax return filed
under ORS chapter 314, 316, 317 or 318, deficiencies shall include but not be
limited to the assertion of additional tax arising from:
(a) The failure to report properly items
or amounts of income subject to or which are the measure of the tax;
(b) The deduction of items or amounts not
permitted by law;
(c) Mathematical errors in the return or
the amount of tax shown due in the records of the department; or
(d) Improper credits or offsets against
the tax claimed in the return.
(5)(a) The notice of deficiency shall be
accompanied by a statement explaining the person’s right to make written objections,
the person’s right to request a conference and the procedure for requesting a
conference. The statement, and an accompanying form, shall also explain that
conference determinations are routinely transmitted via regular mail and that a
person desiring to have conference determinations transmitted by certified mail
may do so by indicating on the form the person’s preference for certified mail
and by returning the form with the person’s written objections as described in
paragraph (b) of this subsection.
(b) Within 30 days from the date of the
notice of deficiency, the person given notice shall pay the deficiency with
interest computed to the date of payment and any penalty proposed. Or within
that time the person shall advise the department in writing of objections to
the deficiency, and may request a conference with the department, which shall
be held prior to the expiration of the one-year period set forth in subsection
(7) of this section.
(6) If a request for a conference is made,
the department shall notify the person of a time and place for conference and
appoint a conference officer to meet with the person for an informal discussion
of the matter. After the conference, the conference officer shall send the
determination of the issues to the person. The determination letter shall be
sent by regular mail, or by certified mail if the person given notice has
indicated a preference for transmission of the determination by certified mail.
The department shall assess any deficiency in the manner set forth in
subsection (7) of this section. If no conference is requested and written
objections are received, the department shall make a determination of the
issues considering such objections, and shall assess any deficiency in the
manner provided in subsection (7) of this section. The failure to request or
have a conference shall not affect the rights of appeal otherwise provided by
law.
(7) If neither payment nor written
objection to the deficiency is received by the department within 30 days after
the notice of deficiency has been mailed, the department shall assess the
deficiency, plus interest and penalties, if any, and shall send the person a
notice of assessment, stating the amount so assessed, and interest and
penalties. The notice of assessment shall be mailed within one year from the
date of the notice of deficiency unless an extension of time is agreed upon as
described in subsection (8) of this section. The notice shall advise the person
of the rights of appeal.
(8) If, prior to the expiration of any
period of time prescribed in subsection (7) of this section for giving of
notice of assessment, the department and the person consent in writing to the
deficiency being assessed after the expiration of such prescribed period, such
deficiency may be assessed at any time prior to the expiration of the period
agreed upon. The period so agreed upon may be extended by subsequent agreements
in writing made before the expiration of the period agreed upon.
(9) The failure to hold a requested
conference within the one-year period prescribed in subsection (5) of this
section shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (7) of this section or within any
extension of time made pursuant to subsection (8) of this section, but shall
invalidate any assessment of interest or penalties attributable to the
deficiency. After an assessment has been made, the department and the person
assessed may still hold a conference within 90 days from the date of
assessment. If a conference is held, the 90-day period under ORS 305.280 (2)
shall run from the date of the conference officer’s written determination of
the issues.
(10)(a) In the case of a failure to file a
report or return on the date prescribed therefor (determined with regard to any
extension for filing), the department shall determine the tax according to the
best of its information and belief, assess the tax plus appropriate penalty and
interest, and give written notice of the failure to file the report or return and
of the determination and assessment to the person required to make the filing.
The amount of tax shall be reduced by the amount of any part of the tax which
is paid on or before the date prescribed for payment of the tax and by the
amount of any credit against the tax which may be lawfully claimed upon the
return.
(b) Notwithstanding subsection (14) of
this section and ORS 305.280, and only to the extent allowed by rules adopted
by the department, the department may accept the filing of a report or return
submitted by a person who has been assessed a tax under paragraph (a) of this
subsection.
(c) The department may reject a report or
return:
(A) That is not verified as required by
ORS 305.810;
(B) That the department determines is not
true and correct as to every material matter as required by ORS 305.815; or
(C) If the department may impose a penalty
under ORS 316.992 (1) with respect to the report or return.
(d) If the department rejects a report or
return of a person assessed a tax under paragraph (a) of this subsection, the
department shall issue a notice of rejection to the person. The person may
appeal the rejection to the magistrate division of the Oregon Tax Court only
if:
(A) The report or return was filed within
90 days of the date the department’s assessment under paragraph (a) of this
subsection was issued; and
(B) The appeal is filed within 90 days of
the date shown on the notice of rejection.
(e) If the person assessed under paragraph
(a) of this subsection submits a report or return to the department and appeals
the assessment to the tax court, the department may request a stay of action
from the court pending review of the report or return. If the department:
(A) Accepts the filing of the report or
return, the appeal shall be dismissed as moot.
(B) Rejects the report or return, the stay
of action on the appeal shall be lifted.
(f) If the department accepts the filing
of a report or return, the department may reduce the assessment issued under
paragraph (a) of this subsection. A report or return filed under this
subsection that is accepted by the department, whether or not the assessment
has been reduced, shall be considered a report or return described in
subsection (1) of this section and shall be subject to the provisions of this section,
including but not limited to examination and adjustment pursuant to subsection
(2) of this section.
(g) The department may refund payments
made with respect to a report or return filed and accepted pursuant to this
subsection. If the report or return is filed within three years of the due date
for filing the report or return, excluding extensions, the refund shall be made
as provided by ORS 305.270 and 314.415. If the report or return is not filed
within three years of the due date for filing the report or return, excluding
extensions, the refund shall be limited to payments received within the
two-year period ending on the date the report or return is received by the
department and payments received after the date the report or return is
received by the department. Interest shall be paid at the rate established
under ORS 305.220 for each month or fraction of a month from the date the
report or return is received by the department to the time the refund is made.
(11) Mailing of notice to the person at
the person’s last-known address shall constitute the giving of notice as
prescribed in this section.
(12) If a return is filed with the
department accompanied by payment of less than the amount of tax shown on or
from the information on the return as due, the difference between the tax and
the amount submitted is considered as assessed on the due date of the report or
return (determined with regard to any extension of time granted for the filing
of the return) or the date the report or return is filed, whichever is later.
For purposes of this subsection, the amount of tax shown on or from the
information on the return as due shall be reduced by the amount of any part of
the tax that is paid on or before the due date prescribed for payment of the
tax, and by any credits against the tax that are claimed on the return. If the
amount required to be shown as tax on a return is less than the amount shown as
tax on the return, this subsection shall be applied by substituting the lesser
amount.
(13) Every deficiency shall bear interest
at the rate established under ORS 305.220 for each month or fraction of a month
computed from the due date of the return to date of payment. If the return was
falsely prepared and filed with intent to evade the tax, a penalty equal to 100
percent of the deficiency shall be assessed and collected. All payments
received shall be credited first to penalty, then to interest accrued, and then
to tax due.
(14) If the deficiency is paid in full
before a notice of assessment is issued, the department is not required to send
a notice of assessment, and the tax shall be considered as assessed as of the
date which is 30 days from the date of the notice of deficiency or the date the
deficiency is paid, whichever is the later. A partial payment of the deficiency
shall constitute only a credit to the account of the person assessed.
Assessments and billings of taxes shall be final after the expiration of the
appeal period specified in ORS 305.280, except to the extent that an appeal is
allowed under ORS 305.280 (3) following payment of the tax.
(15) Appeal may be taken to the tax court
from any notice of assessment. The provisions of this chapter with respect to
appeals to the tax court apply to any deficiency, penalty or interest assessed.
[1977 c.870 §3; 1981 c.724 §3; 1982 s.s.1 c.16 §5; 1985 c.266 §4; 1987 c.512 §2;
1989 c.414 §4; 1993 c.726 §4; 1995 c.650 §27; 1995 c.780 §3; 1997 c.99 §§26,27;
1999 c.224 §1; 1999 c.249 §1; 1999 c.532 §1; 2001 c.76 §5; 2001 c.660 §21; 2005
c.94 §19]
305.267
Extension of time to issue notice of deficiency or assessment. (1) As a part of its application for an
order for the enforcement of a subpoena under ORS 305.190 or for an answer to
interrogatories under ORS 305.195, the Department of Revenue may request the Oregon
Tax Court for an order extending the time within which the department may issue
a notice of deficiency or assessment under ORS 305.265.
(2) The tax court or the Supreme Court
upon appeal, shall extend the time for a period ending 90 days after:
(a) Delivery to the department of the
documents and information ordered produced under the subpoena; or
(b) Delivery to the department of the
answers ordered to be made to the department’s interrogatories. [1985 c.266 §2]
305.270
Refund of excess tax paid; claim procedure. (1) If the amount of the tax shown as due on a report or return
originally filed with the Department of Revenue with respect to a tax imposed
under ORS chapter 118, 308, 308A, 310, 314, 316, 317, 318 or 321, or collected
pursuant to ORS 305.620, or as corrected by the department, is less than the
amount theretofore paid, or if a person files a claim for refund of any tax
paid to the department under such laws within the period specified in
subsection (2) of this section, any excess tax paid shall be refunded by the
department with interest as provided in this section and ORS 314.415.
(2) The claim shall be made on a form
prescribed by the department, except that an amended report or return showing a
refund due and filed within the time allowed by this subsection for the filing
of a claim for refund, shall constitute a claim for refund. The claim shall be
filed within the period specified in ORS 314.415 (2) for taxes imposed under
ORS chapters 310, 314, 316, 317 and 318, or collected pursuant to ORS 305.620
(except where any applicable ordinance specifies another period), within the
period specified in ORS 118.100 (2) for taxes imposed under ORS chapter 118 and
within two years of the payment of any tax under ORS chapter 308, 308A or 321.
(3) Upon receipt of a claim for refund, or
original report or return claiming a refund, the department shall either refund
the amount requested or send to the claimant a notice of any proposed
adjustment to the refund claim, stating the basis upon which the adjustment is
made. A proposed adjustment may either increase or decrease the amount of the
refund claim or result in the finding of a deficiency. If the proposed
adjustment results in a determination by the department that some amount is
refundable, the department may send the claimant the adjusted amount with the
notice.
(4)(a) The notice of proposed adjustment
shall be accompanied by a statement explaining the claimant’s right to make
written objections to the refund adjustment, the claimant’s right to request a
conference and the procedure for requesting a conference. The statement, and an
accompanying form, shall also explain that conference determinations are
routinely transmitted via regular mail and that a claimant desiring to have
conference determinations transmitted by certified mail may do so by indicating
on the form the claimant’s preference for certified mail and by returning the
form with the claimant’s written objections as described in paragraph (b) of
this subsection.
(b) The claimant may, within 30 days of
the date of the notice of proposed adjustment, advise the department in writing
of objections to the refund adjustment and may request a conference with the
department, which shall be held within one year of the date of the notice. The
department shall notify the claimant of a time and place for the conference,
and appoint a conference officer to meet with the claimant for an informal
discussion of the claim. After the conference, the conference officer shall
send a determination of the matter to the claimant. The determination letter
shall be sent by regular mail, or by certified mail if the claimant has
indicated a preference for transmission of the determination by certified mail.
The department shall issue either a notice of refund denial or payment of any
amount found to be refundable, together with any applicable interest provided
by this section. If the conference officer determines that a deficiency exists,
the department shall issue a notice of assessment.
(5) If no conference is requested, and the
adjustments have not resulted in the finding of a deficiency, the following
shall apply:
(a) If written objections have been made
by the claimant, the department shall consider the objections, determine any
issues raised and send the claimant a notice of refund denial or payment of any
amount found to be refundable, together with any interest provided by this
section.
(b) If no written objections are made, the
notice of any proposed adjustment shall be final after the period for requesting
a conference or filing written objections has expired.
(6) If no conference is requested, and the
notice of proposed adjustment has asserted a deficiency, the department shall
consider any objections made by the person denied the refund, make a determination
of any issues raised, pay any refunds found due, with applicable interest, or
assess any deficiency and mail a notice thereof within one year from the date
of the notice of deficiency, unless an extension of time is agreed upon as
described in subsection (7) of this section.
(7) If, prior to the expiration of any
period of time prescribed in subsection (6) of this section for giving of
notice of assessment, the department and the person consent in writing to the
deficiency being assessed after the expiration of such prescribed period, such
deficiency may be assessed at any time prior to the expiration of the period
agreed upon. The period so agreed upon may be extended by subsequent agreements
in writing made before the expiration of the period agreed upon.
(8) If the department refunds the amount
requested as provided in subsection (3) of this section, without examination or
audit of the refund claim, the department shall give notice of this to the
claimant at the time of making the refund. Thereafter, the department shall
have one year in which to examine or audit the refund claim, and send the
notice of proposed adjustment provided for in subsection (3) of this section,
in addition to any time permitted in ORS 314.410 or 314.415.
(9) The failure to hold a requested
conference within the one-year period prescribed in subsection (4) of this
section shall not invalidate any assessment of deficiency made within the
one-year period pursuant to subsection (8) of this section or within any
extension of time made pursuant to subsection (7) of this section, but shall
invalidate any assessment of interest or penalties attributable to the
deficiency. After an assessment has been made, the department and the person
assessed may still hold a conference within 90 days from the date of
assessment. If a conference is held, the 90-day period under ORS 305.280 (2)
shall run from the date of the conference officer’s written determination of
the issues.
(10) The claimant may appeal any notice of
proposed adjustment, refund denial or notice of assessment in the manner
provided in ORS 305.404 to 305.560. The failure to file written objections or
to request or have a conference shall not affect the rights of appeal so
provided. All notices and determinations shall set forth rights of appeal. [1977
c.870 §4; 1979 c.691 §1; 1985 c.61 §1; 1985 c.266 §5; 1987 c.512 §3; 1989 c.626
§2; 1991 c.67 §75; 1995 c.650 §28; 1997 c.99 §§29,30; 1999 c.224 §2; 1999 c.314
§89; 2005 c.48 §2]
Note: Sections 2 and 3, chapter 605, Oregon Laws
2007, provide:
Sec.
2. (1) Notwithstanding ORS
305.270 or 314.415 or other law limiting the period of time within which a
refund of personal income tax may be made, a taxpayer may file a claim for
refund of tax paid for a tax year beginning on or after January 1, 2001, and
before January 1, 2005, if the claim for refund is based on the inclusion
within gross income of compensation described in ORS 316.791, for military
service performed on or after September 11, 2001.
(2) The Department of Revenue shall refund
amounts due for a claim described in subsection (1) of this section if the
claim is allowable and the claim has been filed with the department before July
1, 2008. [2007 c.605 §2]
Sec.
3. Section 2 of this 2007
Act is repealed on January 2, 2010. [2007 c.605 §3]
305.271
Refund transfer or assignment prohibited; exception. Except as provided in ORS 305.690 to 305.753
(relating to charitable checkoffs), no refund, claim of refund or right to a
refund of taxes paid under the laws of this state shall be transferable or
assignable by the taxpayer unless authorized by rule of the Department of
Revenue. [1997 c.84 §5]
305.275
Persons who may appeal due to acts or omissions. (1) Any person may appeal under this
subsection to the magistrate division of the Oregon Tax Court as provided in
ORS 305.280 and 305.560, if all of the following criteria are met:
(a) The person must be aggrieved by and
affected by an act, omission, order or determination of:
(A) The Department of Revenue in its
administration of the revenue and tax laws of this state;
(B) A county board of property tax appeals
other than an order of the board;
(C) A county assessor or other county
official, including but not limited to the denial of a claim for exemption, the
denial of special assessment under a special assessment statute, or the denial
of a claim for cancellation of assessment; or
(D) A tax collector.
(b) The act, omission, order or
determination must affect the property of the person making the appeal or
property for which the person making the appeal holds an interest that
obligates the person to pay taxes imposed on the property. As used in this
paragraph, an interest that obligates the person to pay taxes includes a
contract, lease or other intervening instrumentality.
(c) There is no other statutory right of
appeal for the grievance.
(2) Except as otherwise provided by law,
any person having a statutory right of appeal under the revenue and tax laws of
the state may appeal to the tax court as provided in ORS 305.404 to 305.560.
(3) Subject to ORS 305.403, if a taxpayer
may appeal to the board of property tax appeals under ORS 309.100, then no
appeal shall be allowed under this section. The appeal under this section is
from an order of the board as a result of the appeal filed under ORS 309.100 or
from an order of the board that certain corrections, additions to or changes in
the roll be made.
(4) A county assessor who is aggrieved by
an order of the county board of property tax appeals may appeal from the order
as provided in this section, ORS 305.280 and 305.560. [1977 c.870 §5; 1985 c.85
§10; 1987 c.512 §4; 1991 c.459 §12; 1993 c.270 §7; 1995 c.79 §107; 1995 c.650 §7;
1997 c.541 §§52,52a,53,53a; 1999 c.314 §62; 1999 c.340 §2]
305.280
Time for filing appeals; denial of appeal. (1) Except as otherwise provided in this section, an appeal under ORS
305.275 (1) or (2) shall be filed within 90 days after the act, omission, order
or determination becomes actually known to the person, but in no event later
than one year after the act or omission has occurred, or the order or
determination has been made. An appeal under ORS 308.505 to 308.665 shall be
filed within 90 days after the date the order is issued under ORS 308.584 (3).
An appeal from a supervisory order or other order or determination of the
Department of Revenue shall be filed within 90 days after the date a copy of
the order or determination or notice of the order or determination has been
served upon the appealing party by mail as provided in ORS 306.805.
(2) An appeal under ORS 323.416 or 323.623
or from any notice of assessment or refund denial issued by the Department of
Revenue with respect to a tax imposed under ORS chapter 118, 308, 308A, 310,
314, 316, 317, 318, 321 or this chapter, or collected pursuant to ORS 305.620,
shall be filed within 90 days after the date of the notice. An appeal from a
proposed adjustment under ORS 305.270 shall be filed within 90 days after the
date the notice of adjustment is final.
(3) Notwithstanding subsection (2) of this
section, an appeal from a notice of assessment of taxes imposed under ORS
chapter 314, 316, 317 or 318 may be filed within two years after the date the
amount of tax, as shown on the notice and including appropriate penalties and
interest, is paid.
(4) Except as provided in subsection (2)
of this section or as specifically provided in ORS chapter 321, an appeal to
the tax court under ORS chapter 321 or from an order of a county board of
property tax appeals shall be filed within 30 days after the date of the notice
of the determination made by the department or date of mailing of the order,
date of publication of notice of the order or date of mailing of the notice of
the order to the taxpayer, whichever is applicable.
(5) If the tax court denies an appeal made
pursuant to this section on the grounds that it does not meet the requirements
of this section or ORS 305.275 or 305.560, the tax court shall issue a written
decision rejecting the petition and shall set forth in the decision the reasons
the tax court considered the appeal to be defective. [1977 c.870 §6; 1979 c.687
§1; 1985 c.61 §2; 1991 c.67 §76; 1993 c.270 §8; 1995 c.650 §8; 1997 c.99 §§32,33;
1997 c.541 §§55,56; 1999 c.249 §2; 1999 c.314 §90; 1999 c.340 §3; 2003 c.804 §63a;
2007 c.616 §11]
Note: Section 17, chapter 616, Oregon Laws 2007,
provides:
Sec.
17. Sections 2 [308.582], 3
[308.584] and 7 to 10 [308.624 to 308.636] of this 2007 Act and the amendments
to ORS 305.280, 308.540, 308.580, 308.585, 308.590, 308.595, 308.600, 308.605,
308.610 and 308.810 by sections 1, 4 to 6 and 11 to 16 of this 2007 Act apply
to assessment rolls initially prepared or corrected on or after the effective
date of this 2007 Act [January 1, 2008]. [2007 c.616 §17]
305.283 [1993 c.270 §11; repealed by 1995 c.650 §114]
305.285
Correction of tax and assessment rolls for subsequent tax years during pendency
of appeal. Whenever any
property tax matter is appealed to the Department of Revenue, Oregon Tax Court
or Supreme Court, and during the pendency of the appeal, no appeal is filed for
a subsequent year or years, the taxpayer may, on or before December 15 of the
year in which a final determination is made by the last body or tribunal to
pass on the matter or within six months of such final determination, whichever
is later, request the department to order the officer in charge of the rolls
for the intervening years to correct all tax and assessment rolls for those
years with respect to the property affected by such final determination. The
department may require a hearing and the submission of evidence necessary to
determine the correction, if any, that should be made for each intervening year
in view of the holding in such final determination. Notwithstanding any time
limit in ORS 305.288 (1) to (6), 306.115 or 311.205, the department shall order
such correction as it deems necessary. [1977 c.870 §7; 1983 c.605 §2; 1993 c.18
§64]
305.288
Valuation changes for residential property substantial value error and for good
and sufficient cause. (1)
The tax court shall order a change or correction applicable to a separate
assessment of property to the assessment and tax roll for the current tax year
or for either of the two tax years immediately preceding the current tax year,
or for any or all of those tax years, if all of the following conditions exist:
(a) For the tax year to which the change
or correction is applicable, the property was or is used primarily as a
dwelling (or is vacant) and was and is a single-family dwelling, a multifamily
dwelling of not more than four units, a condominium unit, a manufactured
structure or a floating home.
(b) The change or correction requested is
a change in value for the property for the tax year and it is asserted in the
request and determined by the tax court that the difference between the real
market value of the property for the tax year and the real market value on the
assessment and tax roll for the tax year is equal to or greater than 20
percent.
(2) If the tax court finds that the
conditions needed to order a change or correction under subsection (1) of this
section exist, the court may order a change or correction in the maximum
assessed value of the property in addition to the change or correction in the
real market value of the property.
(3) The tax court may order a change or correction
applicable to a separate assessment of property to the assessment or tax roll
for the current tax year and for either of the two tax years immediately
preceding the current tax year if, for the year to which the change or
correction is applicable the assessor or taxpayer has no statutory right of
appeal remaining and the tax court determines that good and sufficient cause
exists for the failure by the assessor or taxpayer to pursue the statutory
right of appeal.
(4) Before ordering a change or correction
to the assessment or tax roll under subsection (3) of this section, the tax
court may determine whether any of the conditions exist in a particular case.
If the tax court determines that one of the conditions specified does exist,
the tax court shall hold a hearing to determine whether to order a change or
correction to the roll.
(5) For purposes of this section:
(a) “Current tax year” has the meaning
given the term under ORS 306.115.
(b) “Good and sufficient cause”:
(A) Means an extraordinary circumstance
that is beyond the control of the taxpayer, or the taxpayer’s agent or
representative, and that causes the taxpayer, agent or representative to fail
to pursue the statutory right of appeal; and
(B) Does not include inadvertence,
oversight, lack of knowledge, hardship or reliance on misleading information
provided by any person except an authorized tax official providing the relevant
misleading information.
(6) The remedy provided under this section
is in addition to all other remedies provided by law.
(7) As used in subsections (1) to (6) of
this section, “manufactured structure” has the meaning given that term in ORS
446.561. [Formerly 306.116; 1999 c.767 §1; subsection (7) of 2005 Edition
enacted as 2003 c.655 §47a]
305.290
Extension of time for making assessment due to bankruptcy. If the Department of Revenue is prohibited
from making an assessment in a case under title 11 of the United States Code,
the period for making the assessment shall not expire until one year after the
prohibition is terminated. [1985 c.761 §12]
305.295
Cancellation of tax, penalty or interest; rules. (1) Notwithstanding ORS 305.265 (14), the
Department of Revenue may in its discretion, cancel any tax, penalty or
interest or any portion thereof, for which an assessment has become final, if
any of the following conditions exist:
(a) The assessment is based upon an
asserted tax deficiency calculated upon income that the state is expressly
prohibited from taxing under the Oregon Constitution or the laws of the
(b) The assessment is based upon an
asserted tax deficiency arising from an error made by the department when
reviewing the return during processing, and the information necessary to
correct the error was properly reported in the return as filed as determined by
the department.
(c) The assessment is against an employer
for withholding tax, with respect to any full calendar quarter during which the
employer had no payroll and had permanently ceased doing business. An employer
shall not be considered to have ceased doing business if the employer has
changed its name and the business activity continues under the same beneficial
ownership.
(d) Pursuant to rules adopted by the
department, the department determines that:
(A) Reasonable doubt exists as to the
taxpayer’s liability for the assessment;
(B) The taxpayer has presented
documentation that the department considers sufficient to support canceling the
tax, penalty or interest, or any portion thereof; and
(C) The taxpayer has complied with all applicable
reporting and filing requirements for all tax years for which the department
maintains records.
(2) When taxes are canceled, in whole or
in part, under subsection (1) 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 which may
have been filed and entered therein.
(3) Before the department may cancel an
assessment under subsection (1) of this section, the taxpayer to whom the
assessment is issued shall provide any information the department deems
necessary to verify the existence of one of the conditions under which the
assessment may be canceled.
(4) Notwithstanding ORS 314.415, the
department may refund any payments made with respect to an assessment described
in subsection (1) of this section. Interest shall be paid at the rate
established under ORS 305.220, for each month or fraction of a month during a
period beginning on the date the taxpayer requests the refund.
(5) This section applies to any unpaid
assessment described in subsection (1) of this section whether issued before or
after September 27, 1987, and to any assessment for which payment is made on or
after September 27, 1987.
(6) A taxpayer may appeal denial of a
request for cancellation of assessment or refund to the Director of the
Department of Revenue. The decision of the director is final and may not be
appealed. [1987 c.758 §16; 1997 c.100 §1]
305.305
Procedure where deficiency based on federal or other state audit report; effect
of appeal; interest suspension.
(1) As used in this section, “appeal” means an appeal to the Internal Revenue
Service or any federal court or an appeal to another state’s taxing authority
or any state court having jurisdiction over the other state’s tax matters that
are the subject of the appeal.
(2) If a deficiency is based wholly or in
part upon an Internal Revenue Service revenue agent’s report made upon any
audit or adjustment of the person’s federal income tax return or upon an audit
report of another state’s taxing authority, the following procedures shall
apply:
(a) If the person has filed a timely
appeal from the deficiency asserted by the service or other state taxing
authority, the person may file proof of the appeal with the Department of
Revenue. If proof of the appeal is received before the tax is assessed, the
deficiency shall be assessed without penalty for failure to pay the tax at the
time the tax became due.
(b) If the department assesses the
deficiency before receipt of proof of the filing of a timely appeal, the person
may file the proof with the department. If the proof is filed after the tax has
been assessed with a penalty for failure to pay the tax at the time the tax
became due, the penalty shall not be waived.
(3) Notwithstanding any other provision of
law, filing of proof of a timely appeal under subsection (2) of this section
shall extend the time for filing a complaint or petition with the tax court in
accordance with this subsection. The person shall notify the department in
writing within 30 days after the appeal is finally resolved. The department
shall review the issues raised by the appeal and shall make a determination of
the effect upon the person’s state income or excise tax liabilities. The
department shall then issue a refund, notice of denial of refund or notice of
assessment, as appropriate, to the person. If the person disagrees with the
department’s action, the person may file a complaint or petition with the tax
court within 90 days after the date of the department’s action as provided
under ORS 305.404 to 305.560. Notwithstanding ORS 314.835 or any other law
relating to confidentiality, the department may notify the magistrate division
of the tax court if proof of a timely appeal is filed with the department or if
the department determines that an appeal has been finally resolved.
(4) Except as provided in ORS 314.440 (2),
when the department receives proof of a timely appeal, the department shall
suspend action to collect the deficiency until the issues are resolved.
(5) If interest imposed by the federal
government on a federal deficiency or partnership settlement agreement has been
suspended under section 6601(c) of the Internal Revenue Code, interest imposed
on a corresponding deficiency determined under ORS 305.265 and this section
shall also be suspended. The suspension of interest imposed under ORS 305.265
shall be effective as of the date the federal interest is suspended and for the
duration for which the federal interest is suspended.
(6) Except as provided in ORS 314.415 (6),
the provisions of this section shall constitute the exclusive remedy of a
person whose notice of deficiency is based wholly or in part upon a federal
revenue agent’s report or the audit report of another state’s taxing authority.
[1989 c.414 §6; 1995 c.650 §29; 1997 c.325 §7; 1999 c.74 §2; 1999 c.90 §28a;
2001 c.660 §17; 2005 c.48 §3]
305.330
Tax liability of reorganized business entity. (1) As used in this section, “reorganized business entity”:
(a) Means a business entity that, while
operating substantially the same business as another entity that incurred a
liability for taxes, interest or penalties administered by the Department of
Revenue, has been converted to a different form of business entity from that of
the entity that incurred the liability or has changed ownership from that of
the entity that incurred the liability; and
(b) Does not include a business entity
that is converted to a different form or that has changed ownership solely
because of a transfer of assets or because of a transfer of an interest of an
investor who has no right to manage the business entity, including, but not
limited to, the interest of:
(A) A person that is solely a minority
shareholder in a corporation;
(B) A member of a manager-managed limited
liability company; or
(C) A limited partner of a limited
partnership that does not participate in the control of the business of the
limited partnership.
(2) The department may transfer the
liability for taxes, interest or penalties that are administered and collected
by the department from the business entity that incurred the liability to a
reorganized business entity and may assess those amounts against the
reorganized business entity.
(3) Factors the department may consider
when determining if a business entity is a reorganized business entity include,
but are not limited to, whether the business entity:
(a) Operates from the same physical
location as did the taxpayer owing the debt.
(b) Provides the same services or
manufactures the same products as did the taxpayer owing the debt.
(c) Has one or more of the same:
(A) Corporate directors or officers as did
the taxpayer owing the debt.
(B) Owners or holders of a direct or
indirect interest in the business entity as did the taxpayer owing the debt.
(4) Following the determination to
transfer a liability to a reorganized business entity under subsections (2) and
(3) of this section and notwithstanding ORS 314.835, 314.840 or 314.991, the
department shall send a notice of liability to the reorganized business entity
stating the amount owed by the reorganized business entity.
(5) Within 30 days from the date of notice
of liability given under subsection (4) of this section, the reorganized
business entity shall:
(a) Pay the liability stated in the notice
and any other penalty or interest related to that liability; or
(b) Advise the department in writing of
objections to the notice of liability and, if desired, request a conference. A
conference requested under this paragraph shall be governed by those provisions
of ORS 305.265 that govern a conference requested from a notice of deficiency
under ORS 305.265. Notwithstanding ORS 314.835, 314.840 or 314.991, the
department may disclose any information to the reorganized business entity that
the department would be authorized to disclose to the business entity that
incurred the liability.
(6) After a determination of the issues
raised in written objections made under subsection (5) of this section or after
a conference, if a conference was requested, the department shall mail the
reorganized business entity a letter affirming, canceling or adjusting the
notice of liability. If the entity remains liable for an outstanding amount
under this section, the letter shall be considered a notice of assessment and,
within 90 days from the date the letter is mailed, the entity shall:
(a) Pay the amount set forth in the notice
of assessment; or
(b) Appeal to the Oregon Tax Court in the
manner provided for an appeal from a notice of assessment.
(7) If neither payment nor written
objections to the notice of liability sent under subsection (4) of this section
is received by the department within 30 days after the date of the notice of
liability, the notice of liability becomes final. The reorganized business
entity may appeal the notice to the tax court within 90 days after the date the
notice became final, in the manner provided for an appeal from a notice of
assessment. [2007 c.463 §2]
305.350 [1977 c.790 §1; repealed by 1985 c.105 §1]
305.355 [1977 c.790 §2; repealed by 1985 c.105 §1]
305.360 [1977 c.790 §3; repealed by 1985 c.105 §1]
305.365 [1977 c.790 §4; repealed by 1985 c.105 §1]
305.375
Disposition of penalties; payment of refunds. The amount of any penalty collected under this chapter and ORS chapter
314 or 316 shall be paid over to the State Treasurer in the manner provided for
income taxes in ORS 316.502. Any penalty amount required to be refunded may be
paid out of the working balance retained under ORS 316.502 (2) or may be paid
in the manner provided in ORS 305.760. [1987 c.843 §5]
(License
Lists)
305.380
Definitions for ORS 305.385.
As used in ORS 305.385:
(1) “Agency” means any department, board,
commission, division or authority of the State of
(2) “License” means any written authority
required by law or ordinance as a prerequisite to the conduct of a business,
trade or profession.
(3) “Provider” means any person who
contracts to supply goods, services or real estate space to an agency.
(4) “Tax” means a state tax imposed by ORS
401.792 to 401.816 and 320.005 to 320.150 and ORS chapters 118, 314, 316, 317,
318, 321 and 323 and the elderly rental assistance program under ORS 310.630 to
310.706 and local taxes administered by the Department of Revenue under ORS
305.620. [1987 c.843 §6; 1997 c.99 §35; 1997 c.170 §16; 2005 c.94 §21]
305.385
Agencies to supply licensee and contractor lists; contents; effect of
department determination on taxpayer status of licensee or contractor; rules. (1) Upon request of the Department of
Revenue, an agency issuing or renewing a license to conduct a business, trade
or profession shall annually, on or before March 1, supply the department with
a list of specified licenses issued or renewed by the agency during the
preceding calendar year.
(2) Upon request of the department, an
agency shall annually, on or before March 1, supply the department with a list
of specified persons contracting with the agency to provide goods, services or
real estate space to the agency during the preceding calendar year.
(3) The lists required by subsections (1)
and (2) of this section shall contain the name, address, Social Security or
federal employer identification number of each licensee or provider or such
other information as the department may by rule require.
(4)(a) If the department determines that
any licensee or provider has neglected or refused to file any return or to pay
any tax and that such person has not filed in good faith a petition before the
department contesting the tax, and the department has been unable to obtain
payment of the tax through other methods of collection, the Director of the
Department of Revenue may, notwithstanding ORS 118.525, 314.835 or 314.840 or
any similar provision of law, notify the agency and the person in writing.
(b) Upon receipt of such notice, the
agency shall refuse to reissue, renew or extend any license, contract or
agreement until the agency receives a certificate issued by the department that
the person is in good standing with respect to any returns due and taxes
payable to the department as of the date of the certificate.
(c) Upon the written request of the
director and after a hearing and notice to the licensee as required under any
applicable provision of law, the agency shall suspend the person’s license if
the agency finds that the returns and taxes have not been filed or paid and
that the licensee has not filed in good faith a petition before the department
contesting the tax and the department has been unable to obtain payment of the
tax through other methods of collection. For the purpose of the agency’s
findings, the written representation to that effect by the department to the
agency shall constitute prima facie evidence of the person’s failure to file
returns or pay the tax. The department shall have the right to intervene in any
license suspension proceeding.
(d) Any license suspended under this
subsection shall not be reissued or renewed until the agency receives a
certificate issued by the department that the licensee is in good standing with
respect to any returns due and taxes payable to the department as of the date
of the certificate.
(5) The department may enter into an
installment payment agreement with a licensee or provider with respect to any
unpaid tax, penalty and interest. The agreement shall provide for interest on
the outstanding amount at the rate prescribed by ORS 305.220. The department
may issue a provisional certificate of good standing pursuant to subsection
(4)(b) and (d) of this section which shall remain in effect so long as the
licensee or provider fully complies with the terms of the installment
agreement. Failure by the licensee or provider to fully comply with the terms
of the installment agreement shall render the agreement and the provisional
certificate of good standing null and void, unless the department determines
that the failure was due to reasonable cause. If the department determines that
the failure was not due to reasonable cause, the total amount of the tax,
penalty and interest shall be immediately due and payable, and the department
shall notify any affected agency that the licensee or provider is not in good
standing. The agency shall then take appropriate action under subsection (4)(b)
and (d) of this section.
(6) No contract or other agreement for the
purpose of providing goods, services or real estate space to any agency shall
be entered into, renewed or extended with any person, unless the person
certifies in writing, under penalty of perjury, that the person is, to the best
of the person’s knowledge, not in violation of any tax laws described in ORS
305.380 (4).
(7) The certification under subsection (6)
of this section shall be required for each contract and renewal or extension of
a contract or may be provided on an annual basis. A certification shall not be
required for a contract if the consideration for the goods, services or real
estate space provided under the contract is no more than $1,000.
(8)(a) The requirements of the
certification under subsection (6) of this section shall be subject to the
rules adopted by the department in accordance with this section.
(b) The department may by rule exempt
certain contracts from the requirements of subsection (6) of this section. [1987
c.843 §7; 1989 c.656 §1; 1997 c.99 §36]
SUBPOENAS
RELATING TO INDUSTRIAL PROPERTY
305.390
Subpoenas of records containing information on industrial plant for use to
determine value of different industrial plant. A subpoena for the production of records may
be issued under ORS 305.190 or 305.420 to the owner of an industrial plant, as
defined in ORS 308.408, for purposes of a proceeding involving the
determination of the value of a different industrial plant for ad valorem
property taxation, only under the following conditions:
(1) The information to be produced is to
be used to determine the value of a specific industrial plant;
(2) The information to be produced is not
available to the person or agency issuing the subpoena from any public source;
and
(3) The information to be produced is
likely to improve the accuracy or reliability of the determination of value. [1993
c.353 §4]
305.392
Process for limiting scope of third-party subpoena. (1) This section applies to subpoenas issued
under ORS 305.190 or 305.420 (4) to owners of industrial plants, as defined in
ORS 308.408, for the production of books, papers, correspondence or any other
documents to be used in a judicial proceeding that involves the determination
of the value of a different industrial plant, for purposes of ad valorem
property taxation. The purpose of this section is to provide a process by which
the parties may limit the scope of a subpoena for the production of documents,
if possible.
(2) Before any person or the Department of
Revenue may issue a subpoena to which this section applies, the person or
department shall give written notice to the person or agency to be subpoenaed
that a subpoena will be issued no sooner than 60 days after the date the notice
is received. The notice shall state the general nature of the documents desired
to be produced and the purpose for which they will be used. The notice shall
state that the person or agency to be subpoenaed may request an informal
meeting with the person or department giving notice to identify the nature and
form of documents the person or agency has and to verify the need for the
documents desired to be produced.
(3) If the person or agency receiving a
notice given under subsection (2) of this section requests an informal meeting
as provided in the notice, the person or department giving notice shall meet
with the person or agency before issuing the subpoena. If the parties can agree
that only specific documents need to be produced, the subpoena may then be
issued and shall be limited to those documents.
(4) If the person or agency receiving a
notice under subsection (2) of this section does not request a meeting, or if
the parties cannot agree on the specific documents to be produced, the person
or department giving notice may issue the subpoena on or after the date
specified in the notice.
(5) A person or agency given notice under
subsection (2) of this section may not seek relief from compliance with a
subpoena or for protection of documents to be produced until a subpoena has
been issued. [1993 c.353 §7; 1995 c.650 §84; 2005 c.345 §5]
305.394
When industrial plant owner may choose not to produce information sought by
subpoena. (1) If the owner
of an industrial plant that is located outside this state is given notice under
ORS 305.392, or is served with a subpoena for purposes of appraisal of an
industrial plant located within this state, the owner may choose not to produce
any documents related to the income or expenses of the industrial plant that
are identified in the notice or the subpoena, if that information is described
in ORS 308.411 (8) as exempt from disclosure for an owner electing under ORS
308.411 (2).
(2) As used in this section, “industrial
plant” has the meaning given in ORS 308.408. [1993 c.353 §9]
305.396
Protection of confidentiality of industrial property information obtained by
subpoena. (1) When the
Department of Revenue or any person has obtained information concerning
industrial property by subpoena issued under ORS 305.190 or 305.420, and the
provider of the information has designated the information as confidential, the
confidentiality of the information shall be protected as provided in this
section.
(2) If the department or any person in
possession of information described in subsection (1) of this section intends
to use that information in a judicial proceeding, the court shall close the
proceedings to anyone other than representatives of the parties to the
proceeding at any time the confidential information is presented as evidence.
The court shall limit the disclosure of the information to representatives of
the parties to the proceeding as provided in ORS 305.398. The court also shall
seal those parts of the record of the proceeding that contain confidential
information. This subsection shall apply to proceedings on appeal from the
court proceeding. [1993 c.353 §10; 1995 c.650 §85]
305.398
Disclosure and use of industrial property confidential information obtained by
third-party subpoena. (1)
When the Department of Revenue or any person has obtained information
concerning industrial property by subpoena issued under ORS 305.190 or 305.420,
for use in a judicial proceeding concerning the value of a different industrial
property, and the provider of the information has designated the information as
confidential, access to that information shall be limited by an order of the
judicial body conducting the proceeding. The order shall specify the allowable
uses of the confidential information and establish the conditions under which
disclosure may be made to those individuals described in this section.
(2) The confidential information may be disclosed
to the following individuals only:
(a) Counsel for the Department of Revenue.
(b) Counsel of record for any party
participating in the proceeding in which the information is to be used.
(c) Employees of the Department of Revenue
who are assigned to perform an appraisal using the confidential information.
(d) Those experts or consultants for any
party participating in the proceeding who are not, have not previously been and
are not anticipated to become directors, officers, employees or business
associates of the party, and who have been retained to provide technical advice
or testimony in the proceeding.
(3) Before disclosure of information
described in this section, each individual to whom disclosure of confidential
information will be made shall execute a written acknowledgment of the
confidential nature of the information and consent to be bound by the terms of
the order of confidentiality, subject to judicial penalties for contempt. Such
an acknowledgment shall be executed by any person to whom access to
confidential information is actually given.
(4) A written record shall be maintained
by the Department of Revenue and any party to whom disclosure is made of the
specific material disclosed and the identity of those individuals to whom access
has been given, including the name and title of the individuals and the date
each was approved to be given access.
(5) The documents, and any copies of them,
shall be marked “confidential” or in some way identified to be subject to
limited access. Any copies of the original documents shall be reproduced in a
way that makes them readily identifiable.
(6) At the conclusion of the proceeding,
all documents subject to the provisions of this section shall be returned to
the person or agency that originally produced them. Any copies, abstracts or
summaries of the information shall be destroyed, and their destruction shall be
verified by the party or agency that made the copies. [1993 c.353 §11; 1995
c.650 §86]
305.400
Payment of costs of subpoena compliance; determination of costs. (1) Any agency or person issuing a subpoena
under ORS 305.190 or 305.420 for information concerning industrial property,
shall pay the reasonable costs of compliance with the subpoena incurred by the
party responding to the subpoena.
(2) Reasonable costs include the cost of
locating records, preparing copies of records, costs of postage, freight or
delivery, the cost of materials used to organize or contain records and the
cost of management review of material to be produced to determine compliance
with the subpoena.
(3) Reasonable costs do not include the
cost of duplicating records for the use of the person producing the records or
legal fees or management costs incurred in resisting compliance with a
subpoena. [1993 c.353 §12]
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. (1) In the case of a taxpayer dissatisfied
with the assessed or specially assessed value of land or improvements of a
principal or secondary industrial property, the taxpayer may elect to proceed
directly to the tax court. An appeal involving the assessed or specially
assessed value of both the land and improvements of a principal or secondary
industrial property must be brought together in the same forum, whether the
forum is the board of property tax appeals or the tax court.
(2) Election shall be made by filing a
complaint with the tax court in the manner as other complaints are filed under
ORS 305.560 within the time otherwise prescribed for filing an appeal to the
board of property tax appeals. An election under this subsection may not be
revoked and the taxpayer shall have no further right of appeal to the county board
of property tax appeals.
(3)(a) The complaint shall be entitled in
the name of the person filing the complaint as plaintiff, and the Department of
Revenue and the county assessor as defendants. In answering and defending
against the allegations of the complaint:
(A) The department shall respond only to
those allegations that relate to the appraisal or assessment performed by the
department; and
(B) The county assessor shall respond only
to those allegations that relate to the appraisal or assessment performed by
the county assessor.
(b) The department and the county assessor
shall both remain parties to a proceeding described in this subsection unless
either party is dismissed by order of the court.
(4) Service of the complaint upon the
department and the county assessor shall be accomplished by the clerk of the
tax court mailing a copy of the complaint to the Director of the Department of
Revenue and to the county assessor.
(5) Upon an appeal directly to the tax
court under this section, the county board of property tax appeals shall
dismiss any appeal filed with the board involving the issue of assessed value
or specially assessed value for the same property for the same tax year.
(6) As used in this section, “principal
industrial property” and “secondary industrial property” have the meanings
given the terms under ORS 306.126 and include those properties appraised by the
department for ad valorem property tax purposes. [1995 c.650 §82; 1997 c.541 §58;
2005 c.225 §2; 2005 c.345 §15]
(General)
305.404
305.405
(1) Is a court of record and of general
jurisdiction, not limited, special or inferior jurisdiction.
(2) Has the same powers as a circuit
court.
(3) Has and may exercise all ordinary and
extraordinary legal, equitable and provisional remedies available in the
circuit courts, as well as such additional remedies as may be assigned to it. [1961
c.533 §1; 1965 c.6 §1]
305.410
Authority of court in tax cases within its jurisdiction; concurrent
jurisdiction; exclusive jurisdiction in certain cases. (1) Subject only to the provisions of ORS
305.445 relating to judicial review by the Supreme Court and to subsection (2)
of this section, the tax court shall be the sole, exclusive and final judicial
authority for the hearing and determination of all questions of law and fact
arising under the tax laws of this state. For the purposes of this section, and
except to the extent that they preclude the imposition of other taxes, the
following are not tax laws of this state:
(a) ORS chapter 577 relating to Oregon
Beef Council contributions.
(b) ORS 576.051 to 576.455 relating to
commodity commission assessments.
(c) ORS chapter 477 relating to fire
protection assessments.
(d) ORS chapters 731, 732, 733, 734, 737,
742, 743, 743A, 744, 746, 748 and 750 relating to insurance company fees and
taxes.
(e) ORS chapter 473 relating to liquor
taxes.
(f) ORS chapter 583 relating to milk
marketing, production or distribution fees.
(g) ORS chapter 825 relating to motor
carrier taxes.
(h) ORS chapter 319 relating to motor
vehicle and aircraft fuel taxes.
(i) ORS title 59 relating to motor vehicle
and motor vehicle operators’ license fees and ORS title 39 relating to boat licenses.
(j) ORS chapter 578 relating to Oregon
Wheat Commission assessments.
(k) ORS chapter 462 relating to racing
taxes.
(L) ORS chapter 657 relating to
unemployment insurance taxes.
(m) ORS chapter 656 relating to workers’
compensation contributions, assessments or fees.
(n) ORS 311.420, 311.425, 311.455,
311.650, 311.655 and ORS chapter 312 relating to foreclosure of real and
personal property tax liens.
(o) Sections 15 to 22, chapter 736, Oregon
Laws 2003, relating to long term care facility assessments.
(2) The tax court and the circuit courts
shall have concurrent jurisdiction to try actions or suits to determine:
(a) The priority of property tax liens in
relation to other liens.
(b) The validity of any deed, conveyance,
transfer or assignment of real or personal property under ORS 95.060 and 95.070
(1983 Replacement Part) or 95.200 to 95.310 where the Department of Revenue has
or claims a lien or other interest in the property.
(3) Subject only to the provisions of ORS
305.445 relating to judicial review by the Supreme Court, the tax court shall
be the sole, exclusive and final judicial authority for the hearing and
determination of all questions of law and fact concerning the authorized uses
of the proceeds of bonded indebtedness described in section 11 (11)(d), Article
XI of the Oregon Constitution.
(4) Except as permitted under section 2,
amended Article VII, Oregon Constitution, this section and ORS 305.445, no
person shall contest, in any action, suit or proceeding in the circuit court or
any other court, any matter within the jurisdiction of the tax court. [1961
c.533 §12; 1965 c.6 §2; 1967 c.359 §688; 1969 c.48 §1; 1971 c.567 §14; 1975
c.365 §1; 1977 c.407 §1; 1985 c.149 §5; 1985 c.664 §18; 2003 c.195 §18; 2003
c.604 §100; 2007 c.780 §29]
305.412
Jurisdiction to determine value. When the determination of real market value or the correct valuation
of any property subject to special assessment is an issue before the tax court,
the court has jurisdiction to determine the real market value or correct
valuation on the basis of the evidence before the court, without regard to the
values pleaded by the parties. [2005 c.224 §2]
Note: 305.412 was added to and made a part of
305.404 to 305.560 by legislative action but was not added to any smaller
series therein. See Preface to Oregon Revised Statutes for further explanation.
305.415
Service of papers and process.
Except as otherwise provided in ORS 305.404 to 305.560, the mailing by
registered or certified mail of any pleading, decision, order, notice or
process, other than a subpoena, in respect to proceedings before the court
shall be sufficient service thereof. [1961 c.533 §25]
305.418
When mailed complaint considered to be filed. Any complaint required by law to be filed with the Oregon Tax Court
that is:
(1) Transmitted through the United States
mail, shall be deemed filed (a) on the date shown by the post-office
cancellation mark stamped upon the envelope containing it, or (b) on the date
it was mailed if there is also mailed to the tax court a declaration of
mailing, signed by the appealing party or the attorney of the appealing party
and verified by oath or affirmation, subject to penalties for false swearing,
in substantially the following form:
______________________________________________________________________________
DECLARATION OF MAILING
I hereby declare under the penalties for
false swearing contained in ORS chapter 162 that on the ______ day of ______, 2__,
I deposited a complaint entitled ______, and dated ______, in a sealed
envelope, with postage prepaid, in the United States Post Office at ____________,
Oregon (or other state of mailing), addressed to the Oregon Tax Court, 1163
State Street, Salem, Oregon 97301-2563 (or current address).
(Signature of appealing
party or the attorney
of the appealing party)
______________________________________________________________________________
(2) Lost in transmission through the
(a) Can establish by competent evidence
satisfactory to the tax court that the complaint was deposited on or before the
date due for filing in the United States mail and addressed correctly to the
court; and
(b) Files with the court a duplicate of
the lost complaint within 30 days after written notification is given by the
court of its failure to receive such complaint, but in no event later than 90
days after the date the complaint was otherwise required to be filed under ORS
305.560. [1975 c.381 §2; 1979 c.689 §3; 1993 c.612 §3; 2005 c.225 §3]
305.419
Tax, penalty and interest payable before appeal; how determined; waiver;
refund. (1) Except as
provided in subsection (3) of this section, in any appeal from an order, act,
omission or determination of the Department of Revenue involving a deficiency
of taxes imposed upon or measured by net income, the tax assessed, and all
penalties and interest due, shall be paid to the department on or before the
filing of a complaint with the regular division of the Oregon Tax Court under
ORS 305.560 or before a complaint specially designated for hearing in the
regular division under ORS 305.501 is heard. The complaint shall be filed as a
claim for refund.
(2) Penalty and interest due under
subsection (1) of this section are the amounts stated in the order, notice of
assessment, notice of refund denial or proposed adjustment under ORS 305.270 by
the department from which the appeal is taken.
(3) Where payment of the tax, penalties
and interest would be an undue hardship, plaintiff may file an affidavit
alleging undue hardship with the complaint. If the tax court finds undue
hardship, the tax court judge may stay all or any part of the payment of tax,
penalty and interest required under subsection (1) of this section. If the tax
court judge finds no undue hardship, the tax court judge may grant the
plaintiff up to 30 days from the date of determination to pay the taxes,
penalties and interest. Failure by the plaintiff to pay the taxes, penalties
and interest or to establish undue hardship will be cause for dismissing the
complaint.
(4) If, in any appeal to the Oregon Tax
Court for which payment of tax, penalty and interest assessed is required
before filing of a complaint, the tax court orders that all or any part of the
amount paid be refunded by the department, the amount so ordered to be refunded
shall bear interest at the rate established for refunds in ORS 305.220.
Interest shall be computed from the date of payment to the department. [1982
s.s.1 c.29 §§2, 3; 1985 c.407 §1; 1995 c.650 §17; 1997 c.872 §19]
305.420
Issuance of subpoenas; administration of oaths; depositions. (1) The judge, a magistrate or the clerk of
the tax court, on the request of any party to the proceeding, or the attorney
of the party, shall issue subpoenas requiring the attendance of and the giving
of testimony by witnesses, and subpoenas duces tecum requiring the production
of any returns, books, papers, documents, correspondence and other evidence
pertaining to the matter under inquiry at any designated place of hearing in
the manner prescribed by law in civil actions in courts of this state.
(2) Any employee of the court designated
in writing for the purpose by the judge may administer oaths.
(3) Any party to the proceeding may cause
the depositions of witnesses residing within or without the state to be taken
in the manner prescribed by law for like depositions in civil actions in courts
of this state. To that end, the party may compel the attendance of witnesses
and the production of returns, books, papers, documents, correspondence and
other evidence pertaining to the matter under inquiry.
(4) Subject to ORS 305.390 and 305.392,
subpoenas in a proceeding involving the determination of the value of an
industrial plant, as defined in ORS 308.408, for purposes of ad valorem
property taxation, may be issued as provided in subsection (1) of this section.
However, upon petition of the person subpoenaed, the court shall make an order
determining if the evidence sought by the subpoena is relevant to the pending
proceeding and, if requested by the person subpoenaed, an order as required in
the interests of justice to protect the confidentiality of the information
subpoenaed. [1961 c.533 §17; 1963 c.304 §1; 1981 c.139 §5; 1993 c.353 §6; 1995
c.650 §18; 2003 c.46 §5; 2005 c.345 §6]
305.422
Waiver of penalty for failure to timely file property return. If a penalty under ORS 308.295 or 308.296
for the failure to timely file a real, combined or personal property return as
required by ORS 308.290 is the subject of an appeal to the tax court, the court
may waive the liability for all or a portion of the penalty upon a proper
showing of good and sufficient cause. [2001 c.303 §5]
305.425
Proceedings to be without jury and de novo; issues reviewable; rules of procedure. (1) All proceedings before the judge of the
tax court shall be original, independent proceedings and shall be tried without
a jury and de novo.
(2) If a statute provides for an appeal to
or a review by the court of an order, act, omission or determination of the
Department of Revenue, a board of property tax appeals or of any other
administrative agency, the proceeding shall be an original proceeding in the
nature of a suit in equity to set aside such order or determination or correct
the act or omission. The time within which the statute provides that the
proceeding shall be brought is a period of limitations and is not
jurisdictional.
(3) All hearings and proceedings before
the tax court judge shall be in accordance with the rules of practice and procedure
promulgated by the court, which shall conform, as far as practical to the rules
of equity practice and procedure in this state. [1961 c.533 §16; 1965 c.6 §3;
1967 c.78 §9; 1973 c.484 §7; 1977 c.870 §29; 1981 s.s. c.1 §23; 1995 c.650 §19;
1997 c.541 §60]
305.427
Burden of proof in tax court proceedings. In all proceedings before the judge or a magistrate of the tax court
and upon appeal therefrom, a preponderance of the evidence shall suffice to
sustain the burden of proof. The burden of proof shall fall upon the party
seeking affirmative relief and the burden of going forward with the evidence
shall shift as in other civil litigation. [1965 c.6 §5; 1995 c.650 §20]
305.430
Hearings to be open to public; report of proceedings; exception; confidential
information. (1) Except as
provided in subsections (2) and (3) of this section, hearings before the judge
or a magistrate of the tax court shall be open to the public. All proceedings
in the regular division of the tax court shall be reported unless waived by the
parties with the consent of the court. The expense of reporting shall be paid
by the state from the appropriation for the court. Proceedings before the
magistrate division shall not be reported.
(2) If information is confidential under
ORS 308.411 (4) or by court order under ORS 305.420 (4), and is introduced into
evidence in any hearing before the tax court, the court first shall make such
order or orders as are necessary to protect the confidentiality of the
information.
(3) In any proceeding before a magistrate
or before the tax court judge in which confidential business records, tax
returns or documents containing trade secrets are to be introduced into
evidence, upon motion of a party to the proceeding, the magistrate or judge may
make such protective orders as may be necessary to protect the confidentiality
of such records or the information contained therein. In determining whether
such protective orders should be issued, the court shall weigh the harm
suffered by the disclosing party against any benefit received by the public as
a result of the disclosure. Complaints, pleadings and other filings containing
confidential business record information, tax return information or trade
secret information shall be subject to the provisions of this subsection.
(4) In a matter involving a request for a
protective order under subsections (2) and (3) of this section, the decision of
the judge or a magistrate of the tax court shall be a final order for purposes
of appeal to the Supreme Court. The parties may appeal the issue of the
protective order to the Supreme Court at any time after the protective order
was granted or denied. Upon appeal to the Supreme Court, the judge or a
magistrate of the tax court may stay the case on the merits until a resolution
of the protective order issue is determined by the Supreme Court. [1961 c.533 §19;
1981 c.139 §9; 1981 c.727 §2; 1989 c.760 §1; 1995 c.650 §21; 2005 c.345 §7]
305.435 [1961 c.533 §20; 1963 c.280 §1; 1965 c.6 §6;
1977 c.870 §30; 1991 c.459 §16; 1997 c.541 §62; repealed by 1995 c.650 §114]
305.437
Damages for frivolous or groundless appeal or appeal to delay. (1) Whenever it appears to the Oregon Tax
Court that proceedings before it have been instituted or maintained by a
taxpayer primarily for delay or that the taxpayer’s position in such proceeding
is frivolous or groundless, damages in an amount not to exceed $5,000 shall be
awarded to the Department of Revenue by the Oregon Tax Court in its judgment.
Damages so awarded shall be paid within 10 days after the judgment becomes
final. If the damages remain unpaid, the department may collect the amount
awarded in the same manner as income taxes are collected under ORS 314.430.
(2) As used in this section, a taxpayer’s
position is “frivolous” if there was no objectively reasonable basis for
asserting the position. [1987 c.843 §4; 1995 c.650 §6a]
305.440
Finality of unappealed decision of tax court; effect of appeal to Supreme
Court. (1) The decision of
the court shall be binding upon all parties until changed, if at all, by the
decision of the Supreme Court upon appeal. If no appeal is taken to the Supreme
Court, the decision of the court shall constitute a final determination of the
matter. If an appeal is taken, the decision of the court shall become final in
the same manner as the decision or judgment of the circuit court becomes final
when appeal therefrom is taken to the Supreme Court.
(2) Upon the final determination of any ad
valorem tax matter, all officers having charge of the rolls on which the
assessments involved in such proceeding appears shall correct the same in
accordance with such determination, and taxes shall be refunded as provided in
ORS 311.806 or additional taxes collected by the proper officers. In the case
of an appeal as to properties assessed or taxed under ORS 308.505 to 308.665 or
308.805 to 308.820, a certified copy of the judgment of the court shall be
sufficient warrant for the apportionment, levying and collecting of taxes
against the property constituting the subject matter of the appeal and upon the
valuation determined by the court. If any reapportionment as between counties
is made by the court on appeal, corresponding adjustments shall be made by the
tax collectors of the counties affected. [1961 c.533 §21; 1971 c.567 §15; 1977
c.870 §31; 1983 c.696 §9; 1985 c.85 §11; 1997 c.154 §26; 2003 c.576 §412]
305.445
Appeals to Supreme Court; reviewing authority and action on appeal. The sole and exclusive remedy for review of
any decision or order of the judge of the tax court shall be by appeal to the
Supreme Court. Jurisdiction hereby is vested in the Supreme Court to hear and
determine all appeals from final decisions and final orders of the judge of the
tax court. The scope of the review of either a decision or order of the tax
court judge shall be limited to errors or questions of law or lack of
substantial evidence in the record to support the tax court’s decision or
order. Such appeals, and the review of final decisions and final orders of the
tax court, shall be in accordance with the procedure in actions at law on
appeal from a circuit court, but without regard to the sum involved. Upon such
appeal and review, the Supreme Court shall have power to affirm, modify or
reverse the order or decision of the tax court appealed from, with or without
remanding the case for further hearing, as justice may require. [1961 c.533 §22;
1995 c.650 §25]
305.447
Recovery by taxpayer of certain costs and expenses upon appeal to Supreme
Court. If, in an appeal
under ORS 305.445 involving taxes upon or measured by net income in which an
individual taxpayer is a party, the court grants the refund claimed by the
taxpayer or denies the additional assessment of taxes claimed by the Department
of Revenue to be due from the taxpayer, the court may allow the taxpayer:
(1) Reasonable attorney fees for the
appeal under ORS 305.445 and for any prior proceeding in the matter before the
tax court; and
(2) Reasonable expenses as determined by
the court in addition to costs and disbursements. Expenses include accountant
fees and fees for other experts incurred by the taxpayer in preparing for and
conducting the appeal under this section and any prior proceeding in the matter
before the tax court. [1971 c.265 §3; 1977 c.870 §31a; 1995 c.650 §26; 1997
c.99 §§37,38]
305.450
Publication of tax court decisions. The tax court shall cause a copy of each of its written decisions to
be delivered to the State Court Administrator. The administrator, after
consultation with the judge of the tax court, shall determine whether a
decision is of general public interest. The decisions determined to be of
general public interest shall be published and distributed as provided in ORS
2.150. Bound volumes of reports of decisions constitute the official reports of
the tax court. [1961 c.533 §23; 1963 c.250 §1; 1967 c.96 §1; 1967 c.398 §2;
subsection (4) enacted as 1967 c.398 §9 (3); 1975 c.37 §2; 1977 c.145 §1; 1979
c.876 §3; 1982 s.s.1 c.7 §2]
305.452
Election and term of judge; vacancy; recommendation of appointees to fill vacancy. (1) The judge of the tax court shall be
elected by the electors of the state for a term of six years, in the manner
provided in ORS chapter 249.
(2) In the event of a vacancy in the
office of judge, the vacancy shall be filled by an appointment made by the
Governor. The Governor may request the governors of the Oregon State Bar to
submit to the Governor the names of five or more eligible persons deemed by
them to be particularly experienced in the field of tax law, as an aid to the
Governor in making the appointment. [1961 c.533 §§2,3(2); 1979 c.190 §412]
305.455
Qualifications of judge; inapplicability of disqualification-for-prejudice
provision. (1) The judge of
the tax court shall be a citizen of the United States and of this state, and
shall have been admitted to practice in the Supreme Court of Oregon and have
been engaged in this state for at least three years preceding the election or
appointment of the judge of the tax court, either in active practice,
governmental or private, as an attorney and counselor at law or in the
discharge of the duties of a judicial or quasi-judicial office.
(2) Notwithstanding the provision of any
other law, the provisions of ORS 14.250 relating to the disqualification of a
judge for prejudice shall not be applicable to any judge serving regularly or
temporarily as a judge of the tax court. [1961 c.533 §3(1),(8); 2003 c.518 §10]
305.460
Salary, expenses, disability and retirement of judge and magistrates. (1) The judge of the tax court shall receive
such salary as is provided by law. The presiding magistrate and magistrates of
the tax court shall receive such salary as is fixed under the personnel plan
established by the Chief Justice of the Supreme Court pursuant to ORS 1.008.
The judge and magistrates shall receive no other allowances for services except
as authorized by this section.
(2) When the judge or a magistrate of the
tax court holds court or performs any other official function away from the
state capital, hotel bills and traveling expenses necessarily incurred by the
judge or magistrate in the performance of that duty shall be paid by the state.
Such expenses are to be paid upon the certificate of the judge or magistrate to
the truth of an itemized statement of the expenses. The certificate of expenses
is a sufficient voucher upon which the claim shall be paid as provided in ORS
293.295 to 293.462. The Oregon Department of Administrative Services shall draw
a warrant upon the State Treasurer for the amount thereof in favor of the tax
court judge or magistrate.
(3) The judge of the Oregon Tax Court
shall be subject to the provisions of ORS 1.310 and 238.505 relating to
disability and retirement to the same extent and in the same manner as a judge
of a circuit court. A tax court magistrate shall be subject to the provisions
of law relating to retirement for disability and retirement applicable to a
state officer or employee. [1961 c.533 §§4,5; 1977 c.896 §9; 1983 c.740 §85;
1991 c.815 §10; 1995 c.650 §4]
305.465 [1961 c.533 §6; repealed by 1975 c.706 §10]
305.470
Presiding judge; functions.
Whenever more than one judge is serving as a judge of the tax court, the judge
elected or appointed under ORS 305.452 shall be the presiding judge. The
presiding judge shall assign causes, matters and proceedings and apportion the
business of the tax court. [1961 c.533 §7; 1981 s.s. c.1 §24]
305.475
Offices of tax court; location of hearings. The principal office of the tax court shall be in the state capital,
but the court may hold hearings in any location designated under ORS 1.085. The
county court or board of county commissioners, upon request of the judge of the
tax court, shall provide the court with suitable rooms when hearings are held
in the county. [1961 c.533 §9; 1969 c.706 §64d; 1983 c.763 §8; 2007 c.547 §11]
305.480
State Court Administrator as administrator and clerk; other personnel;
expenses; limitation on activities of personnel. (1) The State Court Administrator shall act
as court administrator for the tax court. Other necessary employees of the court
shall be appointed and otherwise governed by applicable provisions of the
personnel plan for employees of the courts of this state who are state
employees.
(2) The judge and employees of the court
shall be reimbursed for all actual and necessary expenses as provided by law.
(3) No employee of the court shall act as
attorney, counselor or accountant in the matter of any tax imposed or levied by
this state or any of its political subdivisions.
(4) Subject to the applicable provisions
of a personnel plan established by the Chief Justice of the Supreme Court of
Oregon, the judge of the tax court shall appoint a person to serve as tax court
clerk. The tax court clerk shall:
(a) Keep the seal of the tax court and
affix it in all cases required by law.
(b) Record the proceedings of the court.
(c) Keep the records, files, books and
papers pertaining to the tax court.
(d) File all papers delivered to the
officer for that purpose in any suit or proceeding therein, or before the
judge.
(e) Attend the tax court and administer
oaths.
(f) Under the direction of the judge of
the tax court enter its orders and judgments.
(g) Authenticate, by certificate or
transcript, as may be required, the records, files or proceedings of the tax
court, or any paper pertaining thereto, and filed with the officer.
(h) In the performance of duties
pertaining to the tax court, conform to the direction of the tax court judge.
(5) The State Court Administrator may
delegate powers of the State Court Administrator under this section to
employees of the State Court Administrator. [1961 c.533 §11; 1981 c.727 §1;
1995 c.273 §5; 1995 c.650 §3]
305.485
Records. (1) The records of
the tax court shall include a register, journal and fee book.
(2) The register is a book wherein the
clerk shall enter, by its title, every suit or proceeding commenced in, or
transferred or appealed to, the tax court, according to the date of its
commencement, transfer or appeal. Thereafter, until the entry of judgment, the
clerk shall note therein, according to the date thereof, the filing or return
of any paper or process, or the making of any order, rule or other direction in
or concerning such suit or proceeding.
(3) The journal is a book wherein the
clerk shall enter the proceedings of the court.
(4) The fee book is a book wherein the
clerk shall enter, under the title of every cause, against the party to whom
the service is rendered, the clerk’s fees earned, and whether received or not
received.
(5) The files of the court are all papers
or process filed with or by the clerk of the court, in any suit or proceeding
therein, or before the judge.
(6) Separate records shall be kept for the
magistrate division.
(7) ORS 7.095, authorizing the use of
electronic data processing techniques, is applicable to the records required by
this section. [1961 c.533 §10; 1995 c.273 §26; 1995 c.650 §5; 1997 c.325 §§9,10]
(Industrial
Property Appeals)
305.487
Findings and policy. (1) The
Legislative Assembly finds that:
(a) Principal and secondary industrial
property that is appraised by the Department of Revenue under ORS 306.126 and
property that is centrally assessed by the department under ORS 308.505 to
308.665 involve large amounts of property value and complex appraisal issues.
(b) Appeals of the value of principal and
secondary industrial property or centrally assessed property can have
significant impact on the stable funding of essential local government services
because of the fiscal consequences of substantial tax refunds.
(c) The citizens of this state and the
owners of industrial or centrally assessed property are best served by the
efficient resolution of property tax appeals related to these properties.
(2) The Legislative Assembly declares that
it is the policy of this state to strongly encourage taxpayers, local
governments, the department and the Oregon Tax Court to resolve appeals related
to the value of principal or secondary industrial property or centrally
assessed property as quickly and efficiently as possible, in order to reduce
the financial impacts of lengthy appeal processes. [2005 c.345 §13]
Note: 305.487 and 305.489 were added to and made a
part of 305.404 to 305.560 by legislative action but were not added to any
smaller series therein. See Preface to Oregon Revised Statutes for further explanation.
305.489
Considerations in adopting rules. The Department of Revenue shall consider the findings and declarations
of the Legislative Assembly under ORS 305.487 when adopting administrative
rules related to appeals to the Oregon Tax Court of the value of principal or
secondary industrial property or centrally assessed property, in order to
ensure that the rules that the department adopts promote the objectives of
quick and efficient resolution of these appeals. [2005 c.345 §14]
Note: See note under 305.487.
(Fees)
305.490
Filing fees; recovery of certain costs and disbursements; additional recovery
for certain taxpayers; disposition of receipts. (1) Plaintiffs or petitioners filing a
complaint or petition in the tax court shall pay a filing fee for each
complaint or petition as follows:
(a) For a complaint or petition in the
magistrate division, $25.
(b) For a complaint or petition in the
regular division, $50.
(c) If a complaint or petition is
specially designated under ORS 305.501 for hearing in the regular division, a
fee of $50.
(2) Neither the State of Oregon, nor any
county, school district, municipal corporation or other public corporation
therein, nor any officer of any such public political division or corporation,
appearing in the representative capacity of the officer of any public political
division or corporation, shall be required to pay the fee prescribed under this
section. The party entitled to costs and disbursements on such appeal shall
recover from the opponent of the party the amount so paid upon order of the
court, as in equity suits in the circuit court.
(3)(a) If, in any proceeding before the
tax court judge involving taxes upon or measured by net income in which an
individual taxpayer is a party, or involving inheritance taxes, the court
grants a refund claimed by the executor or taxpayer or denies in part or wholly
an additional assessment of taxes claimed by the Department of Revenue to be
due from the estate or taxpayer, the court may allow the taxpayer, in addition
to costs and disbursements, the following:
(A) Reasonable attorney fees for the
proceeding under this subsection and for the prior proceeding in the matter, if
any, before the magistrate; and
(B) Reasonable expenses as determined by
the court. Expenses include accountant fees and fees of other experts incurred
by the executor or individual taxpayer in preparing for and conducting the
proceeding before the tax court judge and the prior proceeding in the matter,
if any, before the magistrate.
(b) Payment of attorney fees or reasonable
expenses under this subsection shall be made by the Department of Revenue in
the manner provided by ORS 305.790.
(4)(a) If, in any proceeding before the
tax court judge involving ad valorem property taxation, exemptions, special
assessments or omitted property, the court finds in favor of the taxpayer, the
court may allow the taxpayer, in addition to costs and disbursements, the
following:
(A) Reasonable attorney fees for the
proceeding under this subsection and for the prior proceeding in the matter, if
any, before the magistrate; and
(B) Reasonable expenses as determined by
the court. Expenses include fees of experts incurred by the individual taxpayer
in preparing for and conducting the proceeding before the tax court judge and
the prior proceeding in the matter, if any, before the magistrate.
(b) Payment of attorney fees or reasonable
expenses under this subsection shall be made by the Department of Revenue in
the manner provided by ORS 305.790.
(5) All fees and other moneys received or
collected by the clerk by virtue of the office of the clerk shall be paid over
to the State Treasurer and shall be held by the clerk in the General Fund as
miscellaneous receipts. [1961 c.533 §15(1), (3); 1965 c.6 §7; 1971 c.265 §1;
1977 c.870 §32; 1993 c.612 §1; 1995 c.650 §6; 1997 c.99 §§40,41; 1999 c.21 §10;
2001 c.287 §1; 2005 c.345 §8]
305.492
Fees and expenses of witnesses.
Any witness subpoenaed or whose deposition is taken shall receive the fees and
mileage provided for witnesses in ORS 44.415 (2). Witnesses for the state or
its political subdivisions shall be paid from moneys appropriated therefor.
Payment of fees and mileage to other witnesses shall be made by the party at
whose instance the witness appears or the deposition is taken. [Formerly
305.495]
305.493
Fees for transcripts or copies of records. The tax court may fix a fee, not in excess of the fees charged and
collected by the clerks of the circuit court, for comparing, or for preparing
and comparing, a transcript of the record, or for copying any record, entry or
other paper and the comparison and certification thereof. [Formerly 305.500]
(Representation)
305.494
When shareholder may represent corporation in tax court proceedings. Notwithstanding ORS 9.320, any shareholder
of an S corporation as defined in section 1361 of the Internal Revenue Code, as
amended and in effect on December 31, 2006, may represent the corporation in
any proceeding before the Oregon Tax Court in the same manner as if the
shareholder were a partner and the S corporation were a partnership. [Formerly
305.510; 1997 c.839 §42; 1999 c.90 §29; 2001 c.660 §24; 2003 c.77 §2; 2005
c.832 §14; 2007 c.614 §2]
305.495 [1961 c.533 §18; 1989 c.980 §12; renumbered
305.492 in 1995]
(Magistrate
Division)
305.498
Magistrates; appointment; qualifications; oaths; duties; dismissal; appointment
of presiding magistrate. (1)
The magistrate division is established in the Oregon Tax Court. The judge of
the tax court shall appoint one or more individuals to sit as magistrates of
the magistrate division at locations within the state as the judge shall
determine.
(2) An individual who is appointed as a
tax court magistrate shall be a citizen of the
(3) A full-time, part-time or temporary
magistrate shall perform such duties as the judge of the tax court or presiding
magistrate may direct.
(4)(a) Before entering on the duties of
office, each individual employed as a tax court magistrate shall take and
subscribe to an oath or affirmation that the individual:
(A) Will support the Constitutions of the
(B) Does not hold, and while the
individual is a magistrate will not hold, a position under any political party.
(b) The oath or affirmation shall be filed
in the office of the Secretary of State.
(5) An individual while a magistrate shall
hold no other office or position of profit, and shall pursue no other calling
or vocation that is inconsistent with the expeditious, proper and impartial
performance of the duties of a magistrate.
(6) The judge of the tax court may appoint
one of the magistrates as presiding magistrate.
(7) A tax court magistrate and other
officers and employees of the magistrate division of the tax court appointed
under a personnel plan established by the Chief Justice of the Supreme Court of
Oregon are state officers or employees in the exempt service and not subject to
ORS chapter 240. However, an officer or employee shall have the right to be
dismissed only for just cause after hearing and appeal. [1995 c.650 §2]
305.500 [1961 c.533 §§15(2),24; 1963 c.423 §3;
renumbered 305.493 in 1995]
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. (1) Except as provided in subsection (2) of
this section, an appeal to the tax court shall be heard by a tax court magistrate
unless specially designated by the tax court judge for hearing in the regular
division. In any matter arising under the property tax laws and involving a
county or county assessor that is designated for hearing in the regular
division, the Department of Revenue shall be substituted for the county as a
party.
(2) A party to the appeal may request
mediation, or the tax court on its own motion may assign the matter to
mediation. If the mediation does not result in an agreed settlement within 60
days after the end of the mediation session, the appeal shall, absent a showing
of good cause for a continuance, be assigned to a magistrate for hearing.
(3) The tax court, with the assistance of
the State Court Administrator, shall establish procedures for magistrate
division hearings and mediation.
(4)(a) Subject to the rules of practice
and procedure established by the tax court, a magistrate is not bound by common
law or statutory rules of evidence or by technical or formal rules of
procedure, and may conduct the hearing in any manner that will achieve
substantial justice. A hearing may be conducted in person or by telephone.
Magistrates may confer with each other in order to reach a decision on any
matter.
(b) All written magistrate decisions shall
be mailed to the parties to the appeal and to the Department of Revenue within
five days after the date of entry of the written decision.
(5)(a) Any party dissatisfied with a
written decision of a magistrate may appeal the decision to the judge of the
tax court by filing a complaint in the regular division of the tax court within
60 days after the date of entry of the written decision.
(b) If a decision of a magistrate involves
any matter arising under the property tax laws and a county was a party to the
proceeding before the magistrate, the Department of Revenue may file a notice
of appeal whether or not the department had intervened in the proceeding before
the magistrate. In such cases, the department shall appear before the tax court
judge in any proceeding on appeal.
(c) If a decision of a magistrate involves
any matter arising under the property tax laws and a party other than a county
appeals the decision to the tax court judge, the Department of Revenue shall be
the defendant.
(d) Appeal to the judge of the tax court
is the sole and exclusive remedy for review of a written decision of a
magistrate.
(6) Appeal of a final decision of a
magistrate before the judge of the tax court shall be as provided in ORS
305.425 (1) and 305.570.
(7) If no appeal is taken to the tax court
judge within 60 days, the decision of the magistrate shall become final. The
tax court shall enter a judgment enforcing all final decisions of the
magistrate, which judgment shall be binding upon all parties. ORS 305.440 (2)
applies to the final determination of any property tax matter. [1995 c.650 §11;
1997 c.872 §20; 1999 c.340 §1; 2005 c.345 §9; 2007 c.283 §1]
Note: Section 2, chapter 283, Oregon Laws 2007,
provides:
Sec.
2. The amendments to ORS
305.501 by section 1 of this 2007 Act apply to matters assigned to mediation on
or after the effective date of this 2007 Act [January 1, 2008]. [2007 c.283 §2]
305.505
Magistrate division records; statistical reports. (1) The records of the tax court magistrate
division shall include information as to the dates cases are filed and the
dates decisions are issued.
(2) At the time of preparation biennially
of consolidated budgets for submission to the Legislative Assembly under ORS
8.125, the State Court Administrator shall prepare and submit to the
Legislative Assembly general statistical information as to the amount of time
required by the tax court magistrate division to reach its decisions. [1995
c.650 §5a; 2005 c.94 §23]
305.510 [1973 c.681 §2; 1985 c.802 §36; 1995 c.556 §31;
renumbered 305.494 in 1995]
305.514 [1995 c.650 §3a; 1997 c.99 §43; 1997 c.170 §17;
1997 c.541 §64; 2003 c.621 §77; 2003 c.804 §64; repealed by 2005 c.345 §1]
305.515 [1961 c.533 §26; 1965 c.6 §8; 1967 c.78 §11;
1969 c.355 §1; 1971 c.567 §16; 1973 c.752 §11; 1975 c.705 §3; 1977 c.870 §33;
1977 c.892 §55; 1983 c.673 §19; 1985 c.407 §2; 1985 c.759 §39; 1985 c.816 §41;
1989 c.760 §2; 1991 c.459 §18; 1991 c.790 §18; 1993 c.270 §13; 1993 c.612 §2;
1997 c.99 §45; 1997 c.170 §19; repealed by 1995 c.650 §114]
305.520 [1961 c.533 §34; 1995 c.79 §109; repealed by
1995 c.650 §114]
305.525
Notice to taxpayer of right to appeal. At the same time that a notice of assessment, letter of refund denial
or determination or an order of the board of property tax appeals is given to
any taxpayer, the Department of Revenue or board of property tax appeals, as
the case may be, shall in writing also notify the taxpayer of the right of the
taxpayer to appeal to the tax court under ORS 305.404 to 305.560. [1961 c.533 §29;
1977 c.870 §54; 1995 c.650 §64; 1997 c.541 §§66,67]
305.530 [1961 c.533 §27; 1967 c.78 §10; 1971 c.567 §17;
1975 c.762 §18; 1977 c.870 §14; repealed by 1995 c.650 §114]
305.535 [1961 c.533 §28; 1969 c.355 §2; 1977 c.870 §15;
1977 c.892 §57; 1981 c.804 §85; 1983 s.s. c.5 §2; 1991 c.459 §20; 1993 c.270 §14;
repealed by 1995 c.650 §114]
305.540 [1961 c.533 §30; 1971 c.351 §1; repealed by
1995 c.650 §114]
305.543 [1983 c.673 §21; 1991 c.459 §21; 1997 c.541 §69;
repealed by 1995 c.650 §114]
305.545 [1961 c.533 §32; repealed by 1995 c.650 §114]
305.550 [1961 c.533 §31; 1971 c.351 §2; repealed by
1995 c.650 §114]
305.555 [1961 c.533 §33; 1993 c.270 §15; repealed by
1995 c.650 §114]
(Appeals
Procedure; Effect of Pendency of Appeal)
305.560
Appeals procedure generally; procedure when taxpayer is not appellant; intervention. (1)(a) Except for an order, or portion
thereof, denying the discretionary waiver of penalty or interest by the
Department of Revenue, an appeal under ORS 305.275 may be taken by filing a
complaint with the clerk of the Oregon Tax Court at its principal office at
(b) The clerk of the tax court shall serve
copies of all complaints and petitions on the Department of Revenue. Service
upon the department shall be accomplished by the clerk of the tax court filing
the copy of the complaint with the Director of the Department of Revenue.
Except as otherwise provided by law, other service shall be accomplished as
provided in the rules of practice and procedure promulgated by the tax court.
(c)(A) The complaint shall be entitled in
the name of the person filing the same as plaintiff and the Department of
Revenue, county, taxpayer or other person or entity as defendant. If the
complaint relates to value of property for ad valorem property tax purposes and
the county has made the appraisal, the complaint shall be entitled in the name
of the person filing the same as plaintiff and the county assessor as
defendant.
(B) If any, a copy of the order of the department
or board of property tax appeals shall be attached to the complaint.
(2) The complaint shall state the nature
of the plaintiff’s interest, the facts showing how the plaintiff is aggrieved
and directly affected by the order, act, omission or determination and the
grounds upon which the plaintiff contends the order, act, omission or
determination should be reversed or modified. A responsive pleading shall be
required of the defendant.
(3) In any case in which the taxpayer is
not the appealing party, a copy of the complaint shall be served upon the
taxpayer by the appealing party by certified mail within the period for filing
an appeal, and an affidavit showing such service shall be filed with the clerk
of the tax court. A copy of the order of the department, if any, shall be
attached to the complaint. The taxpayer shall have the right to appear and be
heard.
(4)(a) At any time in the course of any
appeal before the tax court, the department may intervene as a matter of right.
A copy of any order or judgment issued by the tax court in any case in which
the department is an intervenor shall be served upon the department in the
manner provided in subsection (1)(b) of this section.
(b) The tax court, in its discretion, may
permit other interested persons to intervene by filing a complaint in such
manner and under such conditions as the court may deem appropriate. [1977 c.870
§10; 1989 c.760 §3; 1991 c.459 §23; 1993 c.270 §16; 1995 c.650 §10; 1997 c.541 §71;
2005 c.225 §4]
305.565
Stay of collection of taxes, interest and penalties pending appeal; exception;
bond. (1) Except as provided
in subsection (2) of this section, proceedings for the collection of any taxes,
interest or penalties resulting from an assessment of additional taxes imposed
by ORS chapter 118, 310, 314, 316, 317, 318, 321 or this chapter shall be
stayed by the taking or pendency of any appeal to the tax court.
(2) Notwithstanding subsection (1) of this
section, the Department of Revenue may proceed to collect any taxes, interest
or penalties described in subsection (1) of this section if the department
determines that collection will be jeopardized if collection is delayed or that
the taxpayer has taken a frivolous position in the appeal. For purposes of this
subsection:
(a) Collection of taxes, interest or
penalties will be jeopardized if the taxpayer designs quickly to depart from
the state or to remove the taxpayer’s property from the state, or to do any
other act tending to prejudice or to render wholly or partially ineffectual proceedings
to collect the tax.
(b) A taxpayer’s position in an appeal is
frivolous if that position is of the kind described in ORS 316.992 (5).
(3) No proceeding for the apportionment,
levy or collection of taxes on any property shall be stayed by the taking or
pendency of any appeal to the tax court, or from an order of the county board
of property tax appeals or the Oregon Tax Court, unless the assessor or tax
collector either as a party to the suit or an intervenor, requests a stay and
it appears to the satisfaction of the court that a substantial public interest
requires the issuance of a stay.
(4) The tax court may, as a condition of a
stay, require the posting of a bond sufficient to guarantee payment of the tax.
Payment of taxes while appeal is pending shall not operate as a waiver of the
appeal or of a right to refund of taxes found to be excessively charged or
assessed. [1977 c.870 §11; 1982 s.s.1 c.29 §4; 1985 c.761 §9; 1991 c.567 §4;
1993 c.270 §18; 1995 c.650 §23; 1997 c.99 §§47,48; 1997 c.325 §13; 1997 c.541 §73]
305.570
Standing to appeal to regular division of tax court; perfection of appeal. (1)(a) Any person, including a county
assessor or county tax collector aggrieved by and affected by a written
decision of a tax court magistrate issued under ORS 305.501, or any person
seeking a remedy in the tax court provided by statute, other than as provided
in ORS 305.275 (1), may appeal to the regular division of the Oregon Tax Court,
and appeal shall be perfected in the manner provided in ORS 305.404 to 305.560.
(b) Except for an appeal brought by a
county assessor or county tax collector, the order being appealed under this
subsection must affect the person or the property of the person making the
appeal or property for which the person making the appeal holds an interest
that obligates the person to pay taxes imposed on the property. As used in this
paragraph, an interest that obligates the person to pay taxes includes a
contract, lease or other intervening instrumentality.
(2) A taxpayer or political subdivision
affected by a determination of the Department of Revenue authorized under ORS
305.620 may appeal to the tax court as provided in ORS 305.620. [1977 c.870 §13;
1983 c.605 §3; 1983 c.749 §3; 1991 c.459 §29; 1993 c.18 §65; 1995 c.650 §24; 1997
c.541 §75; 1997 c.826 §§4,5; 1999 c.21 §11; 1999 c.340 §4]
305.575
Authority of tax court to determine deficiency. In an appeal to the Oregon Tax Court from an
assessment made under ORS 305.265, the tax court has jurisdiction to determine
the correct amount of deficiency, even if the amount so determined is greater
or less than the amount of the assessment determined by the Department of
Revenue, and even if determined upon grounds other or different from those
asserted by the department, provided that claim for such additional tax on
other or different grounds is asserted by the department before or at the
hearing or any rehearing of the case before the tax court. In the event such
other or different grounds are asserted by the department, the opposing party
shall be allowed additional time, not less than 10 days, within which to amend
or otherwise plead thereto, which additional time, however, may be waived by
stipulation of the parties. The order of the tax court shall be sufficient for
the collection by the department of the entire amount found by the court to be
owing and due. [1977 c.870 §21; 1995 c.650 §30]
(Constitutional
Limits Upon Property Taxes; Effects; Determination)
305.580
Exclusive remedies for certain determinations; priority of petitions. (1) The provisions of ORS 305.583, 305.585,
305.587 and 305.589 shall provide the exclusive remedy for determination of
questions concerning:
(a) The effect of the limits of section
11b, Article XI of the Oregon Constitution on taxes, fees, charges and
assessments of units of government.
(b) The authorized uses of the proceeds of
bonded indebtedness described in section 11 (11)(d), Article XI of the Oregon
Constitution.
(2) A petition filed with the regular
division of the Oregon Tax Court pursuant to ORS 305.583, 305.585, 305.587 or
305.589 shall have priority over all other cases pending before the regular
division and shall be heard and decided as soon after coming to issue as is
reasonably possible. [1991 c.459 §25; 1999 c.340 §8; 2003 c.195 §19]
305.583
Interested taxpayer petitions for certain determinations; petition contents;
manner and time for filing; classification notice requirements; bond proceed
use notice requirements. (1)
An interested taxpayer may petition the regular division of the Oregon Tax
Court to determine a question described in ORS 305.580.
(2)(a) For purposes of this section and a
question described in ORS 305.580 (1)(a), “interested taxpayer” means a person
that is subject to the tax, fee, charge or assessment in question.
(b) For purposes of this section and a
question described in ORS 305.580 (1)(b), “interested taxpayer” means a person
that is subject to a tax, fee, charge or assessment that is pledged to secure
or available for payment of bonded indebtedness described in section 11
(11)(d), Article XI of the Oregon Constitution.
(3) The petition shall be filed and
perfected in the following manner only:
(a) The petitioner shall file a petition
with the clerk of the tax court at its principal office in
(b) The petition shall state the facts and
grounds upon which the petitioner contends that the tax, fee, charge or
assessment is affected by section 11 or 11b, Article XI of the Oregon
Constitution, or that a use of the proceeds of bonded indebtedness is not
authorized. The case shall proceed thereafter in the manner provided for
appeals concerning ad valorem property tax assessments. ORS 305.405 to 305.494
shall apply to such actions.
(4)(a) Except as provided in subsections
(5) to (8) of this section, in the case of a question regarding the effect of
the limits of section 11b, Article XI of the Oregon Constitution, on any tax,
fee, charge or assessment that is imposed under a resolution or ordinance
approved by the governing body of a local government unit, the petition shall
be filed within 60 days after the action of the governing body approving the
ordinance or resolution, adopting a new ordinance or resolution or changing an
existing ordinance or resolution under which the tax, fee, charge or assessment
is imposed, if the resolution or ordinance includes a classification of the
tax, fee, charge or assessment as subject to or not subject to section 11 or
11b, Article XI of the Oregon Constitution. If the local government unit has
not classified the tax, fee, charge or assessment, the petition shall be filed
within 60 days after the later of:
(A) The last date, but no later than
November 15, that the tax statements were mailed for the tax year in which the
tax, fee, charge or assessment was imposed; or
(B) The date of imposition of the tax,
fee, charge or assessment on the petitioner.
(b) If the local government unit adopts an
ordinance or resolution classifying all or any of the taxes, fees, charges or
assessments it imposes as subject to or not subject to section 11 or 11b,
Article XI of the Oregon Constitution, as described in ORS 310.145, the
petition shall be filed within 60 days after the governing body adopts the
ordinance or resolution.
(5) In the case of a question concerning
any tax, fee, charge or assessment that is characterized by the local
government unit as an assessment for local improvements, the petition shall be
filed within 60 days after the local government unit gives notice of its
intention to characterize the charge as an assessment for local improvements.
Notice may be given to affected property owners by the local government unit
either when a local improvement district is formed, in a notice of intent to
assess given by the local government unit or by other individual notice prior
to assessment. Notice shall be given no later than the date the assessment is
imposed. Notice given as provided under this subsection is in lieu of the
notice required under subsection (9) of this section.
(6) In the case of a question concerning
any taxes levied to pay principal and interest on bonded indebtedness approved
by the governing body of a local government unit, the petition shall be filed
within 60 days after the date the issuance of the bonded indebtedness was
approved by the governing body of the local government unit if the resolution
or ordinance of the governing body authorizing issuance of the bonded
indebtedness includes a classification of the bonded indebtedness as subject to
or not subject to the limits of section 11 or 11b, Article XI of the Oregon
Constitution. If the local government unit has not classified the bonded
indebtedness, the petition shall be filed within 60 days after the date
specified in subsection (4)(a) of this section.
(7) In the case of a question concerning
any taxes levied to pay principal and interest on bonded indebtedness not
subject to the limits of section 11 or 11b, Article XI of the Oregon
Constitution, that was approved by the electors of the local government unit at
an election held on or after September 29, 1991, the petition shall be filed
within 60 days after the date of the election at which the question of issuing
the bonded indebtedness was approved by the electors of the local government
unit.
(8) In the case of a question concerning
the effect of section 11 or 11b, Article XI of the Oregon Constitution, on any
tax, fee, charge or assessment imposed by the state, the petition shall be
filed within 60 days after the first imposition of the tax, fee, charge or
assessment by a state agency. For purposes of this subsection, a tax, fee,
charge or assessment shall be considered imposed when it is due as provided by
statute or when the state agency notifies a person that the tax, fee, charge or
assessment is due.
(9) A local government unit:
(a) Shall give notice of its adoption of
an ordinance or resolution classifying any of its taxes, fees, charges or
assessments as not being subject to the limits of section 11 or 11b, Article XI
of the Oregon Constitution, by publishing, within 15 days after adoption of the
ordinance or resolution, an advertisement in a newspaper of general circulation
in the county in which the local government unit is located or, if there is no
newspaper of general circulation, in a newspaper of general circulation in a
contiguous county.
(b) May give notice of its adoption of an
ordinance or resolution specifying the authorized uses of the proceeds of
bonded indebtedness by publishing, within 15 days after adoption of the
ordinance or resolution, an advertisement in a newspaper of general circulation
in the county in which the local government unit is located or, if there is no
newspaper of general circulation, in a newspaper of general circulation in a
contiguous county.
(10) A notice described in subsection (9)
of this section shall:
(a) Appear in the general news section of
the newspaper, not in the classified advertisements;
(b) Measure at least three inches square;
(c) Be printed in a type size at least
equal to 8-point type; and
(d) State that the local government unit
has adopted a resolution or ordinance:
(A) Classifying one or more of its taxes,
fees, charges or assessments as not being subject to the limits of section 11
or 11b, Article XI of the Oregon Constitution, that the reader may contact a
designated individual within the local government unit to obtain a copy of the
ordinance or resolution and that judicial review of the classification of the
taxes, fees, charges or assessments may be sought within 60 days of the date of
the resolution or ordinance; or
(B) Specifying the authorized uses of the
proceeds of bonded indebtedness, that the reader may contact a designated
individual within the local government unit to obtain a copy of the ordinance
or resolution and that judicial review of the specification of authorized uses
may be sought within 60 days of the date of the resolution or ordinance.
(11) An ordinance or resolution that
results in a mere change in the amount of a tax, fee, charge or assessment and
does not result in a change in the characteristics or attributes of the tax,
fee, charge or assessment, or contain a change in purpose to which the revenue
is applied, may not be considered a change that may result in a proceeding
commenced under subsection (4) of this section.
(12) In the case of a question concerning
the authorized uses of the proceeds of bonded indebtedness, the petition must
be filed within 60 days after publication of the notice described in subsection
(9)(b) of this section or, if the governing body has not published the notice
described in subsection (9)(b) of this section, the petition must be filed
within 180 days after the questioned use of the proceeds is made. [1991 c.459 §26;
1993 c.18 §66; 1993 c.270 §19; 1995 c.79 §110; 1995 c.650 §73; 1997 c.541 §§78,78a,79,79a;
1999 c.340 §9; 2003 c.195 §20; 2005 c.225 §5; 2005 c.443 §18]
305.585
Local government petitions concerning taxes of another local government under
1990 Measure 5; manner and time for filing. (1) A local government unit may petition the regular division of the
Oregon Tax Court to determine whether the limits of section 11b, Article XI of
the Oregon Constitution apply to a tax, fee, charge or assessment of another
local government unit if the boundaries of both units include common territory
and if the petitioning local government unit will lose or has lost revenue
because of the tax, fee, charge or assessment that is the subject of the
petition.
(2) The petitioner shall file a petition
with the clerk of the tax court at its principal office in
(3) The petition shall state the facts and
grounds upon which the petitioner contends that the tax, fee, charge or
assessment at issue is not subject to the limits of section 11b, Article XI of
the Oregon Constitution. The case shall proceed thereafter in the manner
provided for appeals concerning ad valorem property tax assessments. ORS
305.405 to 305.494 shall apply to such actions.
(4) The petition shall be filed not later
than 30 days after the date the respondent local government unit filed its
certificate required under ORS 310.060 with the county assessor. [1991 c.459 §26a;
1995 c.79 §111; 1995 c.650 §74; 1999 c.340 §10; 2005 c.225 §6]
305.586
Legislative findings; policy on remedies for misspent bond proceeds. (1) The Legislative Assembly finds that,
when general obligation bonds are issued by a government unit to finance the
cost of capital construction or improvements, subjecting the taxes imposed to
pay the principal and interest on that bonded indebtedness to the limits of
section 11b (1), Article XI of the Oregon Constitution, reduces the credit
quality of the bonds, injures bondholders and increases the cost of borrowing
for all local governments in Oregon. The Legislative Assembly also finds that
it is in the best interests of the State of Oregon and local governments in
Oregon to ensure that, if a local government body expends proceeds from such
bonds for other than capital construction or improvements, the holders of the
bonds, who are innocent with regard to such expenditure, will not suffer
impairment of their security and interest in the bonds as a result.
(2) It is the policy of the State of
Oregon and a matter of statewide concern that, notwithstanding ORS 305.587 (1)
and 305.589 (8), if in a proceeding commenced under ORS 305.583 or 305.589, the
Oregon Tax Court finds that the proceeds of general obligation bonds issued for
capital construction or improvements under section 11b (3)(b), Article XI of
the Oregon Constitution, have been expended for purposes other than capital
construction or improvements, the court shall endeavor, to the fullest extent
practicable and consistent with equitable principles, to fashion a remedy that
does not impair the security or value of the bonds to the bondholders and does
not prejudice the ability of the local government body to satisfy its
obligations under the bonds.
(3) In addition, the court shall fashion
any remedy in a manner that takes into account the financial capacity and
practical alternatives available to the local government body, and shall ensure
that the remedy is proportional to, and restricted to correcting the amount of,
any unlawful expenditure of bond proceeds. To the fullest extent possible, the
court shall avoid any remedy that either invalidates, in whole or in part, the
bonds or taxes levied or to be levied for payment of the bonds, or that makes
any amount of the bonds for which the proceeds lawfully were expended subject
to the limits of section 11b (1), Article XI of the Oregon Constitution. [1997
c.171 §5]
305.587
Tax court findings; orders; refunds; bond measure construction; other relief. (1) If, in a proceeding commenced under ORS
305.583, the regular division of the Oregon Tax Court finds that a challenged
tax, fee, charge or assessment is subject to the limits of section 11 or 11b,
Article XI of the Oregon Constitution, the tax court may:
(a) Order the government unit to make
refunds to petitioners of any part of the challenged tax, fee, charge or
assessment imposed on or after the date that is 90 days before the date the
petition was filed and that was collected in excess of the limits of section 11
or 11b, Article XI of the Oregon Constitution. The tax court may not order
refunds if the government unit previously had obtained a judgment of the tax
court or the Oregon Supreme Court under ORS 305.589, that the tax, fee, charge
or assessment in question was not subject to the limits of section 11 or 11b,
Article XI of the Oregon Constitution.
(b) Order such other relief as it
considers appropriate, including cancellation of taxes imposed but not
collected, but such relief shall have prospective effect only. In cases involving
local government units, a copy of the tax court’s order shall be served upon
the assessor of the county or counties in which the local government unit is
located at the same time the order is served upon the parties.
(2) If the tax court orders a unit of
government to make refunds of any tax, fee, charge or assessment that was
imposed and collected in excess of the limits of section 11 or 11b, Article XI
of the Oregon Constitution, the government unit shall do so out of the
resources of the government unit. No refund so ordered shall be paid from the
unsegregated tax collections account. The assessor shall not be required to
recompute the amount of tax due from any property or property owner with
respect to the tax, fee, charge or assessment that is the subject of the order
for any tax year for which a tax statement has been delivered under ORS
311.250.
(3) If, in a proceeding commenced under
ORS 305.585, the tax court finds that a tax, fee, charge or assessment is not
subject to the limits of section 11 or 11b, Article XI of the Oregon
Constitution, the tax court may order such relief as it considers appropriate,
but such relief shall have prospective effect only. In cases involving local
government units, a copy of the tax court’s order shall be served upon the
assessor of the county or counties in which the local government unit is
located at the same time the order is served upon the parties. The assessor
shall not be required to recompute the amount of tax due from any property or
property owner with respect to the tax, fee, charge or assessment that is the
subject of the order for any tax year for which a tax statement has been
delivered under ORS 311.250.
(4) For purposes of this section, taxes,
fees, charges or assessments are deemed imposed when the statement or bill for
the taxes, fees, charges or assessments is mailed.
(5) In the case of a question concerning
the authorized uses of the proceeds of bonded indebtedness, the tax court shall
construe the provisions of the measure authorizing the bonded indebtedness and
the use of the proceeds liberally to allow the government unit to provide the
facilities or services approved by the voters.
(6) If, in a proceeding commenced under
ORS 305.583, the regular division of the tax court finds that a use of the
proceeds of bonded indebtedness is not authorized by the applicable law, the
tax court may prohibit the expenditure or proceed in accordance with ORS
305.586. [1991 c.459 §26b; 1993 c.270 §20; 1997 c.541 §84; 1999 c.340 §11; 2003
c.195 §21]
305.589
Judicial declarations; petition by local government; notice; intervention;
appeal; remedies; costs. (1)
A local government unit or an association of local government units acting for
the common benefit of and on behalf of consenting members may petition the
regular division of the Oregon Tax Court for a judicial declaration of the
court concerning a question described in ORS 305.580.
(2) Notice of the commencement of a
proceeding under this section shall be given by the petitioner or petitioners
by publication of notice directed to all electors, taxpayers and other
interested persons, without naming such electors, taxpayers or other interested
persons individually. The notice shall be published at least once a week for
three successive weeks in a newspaper of general circulation within the
boundaries of the local government unit and each of the consenting members of
the association of local government units, if any, or if no such newspaper is
published therein, then in a contiguous county.
(3) The petitioner or petitioners may
elect to give further notice to affected electors, taxpayers and other
interested persons, or the court may order such further notice as the court
considers practicable.
(4) The action authorized by this section
shall be a special proceeding in the nature of an ex parte proceeding in the
absence of the intervention of a respondent in opposition to the petition.
(5) Jurisdiction of the local government
unit and of consenting members of an association of local government units
shall be obtained by filing of the petition. Jurisdiction over the electors,
taxpayers and other interested persons shall be complete 10 days after the date
of completing publication of the notice provided for in subsection (2) of this
section, or giving of any further notice as provided for in subsection (3) of
this section. Jurisdiction of any other party shall be obtained by appearance
of any interested person who seeks and is granted leave to intervene in the
proceeding.
(6)(a) Any elector, taxpayer or interested
person or local government unit that may be affected by the tax, fee, charge or
assessment that is the subject of the petition may intervene as a petitioner or
respondent by filing the appropriate appearance.
(b) Any elector, taxpayer or interested person
or local government unit that may be affected by the use of the proceeds of the
bonded indebtedness or a person that is subject to a tax, fee, charge or
assessment that is pledged to secure or available for payment of the bonded
indebtedness that is the subject of the petition may intervene as a petitioner
or respondent by filing the appropriate appearance.
(7) Any party to a proceeding commenced
under this section, including a consenting member of an association of local
government units that was a party to the proceeding, may appeal from the
judgment rendered by the tax court to the Oregon Supreme Court in the manner
provided for appeals from other decisions of the tax court under ORS 305.445.
(8)(a) If, in a proceeding commenced under
this section, the court finds that a tax, fee, charge or assessment is subject
to the limits of section 11b, Article XI of the Oregon Constitution, the court
may order such relief as it considers appropriate, but such relief shall be
prospective only.
(b) If, in a proceeding commenced under
this section, the court finds that a use of the proceeds of bonded indebtedness
is not authorized, the tax court may prohibit the expenditure or proceed in
accordance with ORS 305.586.
(9) Costs of the proceeding may be allowed
and apportioned between the parties in the discretion of the court.
(10) As used in this section:
(a) “Association of local government units”
means an association, or any other lawful organization, composed of member
local government units organized for the mutual benefit of such local
government units.
(b) “Consenting member” means a member of
an association of local government units who affirmatively consents, through
filing of a consenting certificate with the tax court, to the commencement of a
proceeding under this section.
(c) “Local government unit” means any unit
of local government, including a city, county, incorporated town or village,
school district, any other special district, or any other municipal or
quasi-municipal corporation, intergovernmental authority created pursuant to
ORS 190.010, a district as defined in ORS 198.010, 198.180 and 198.210 or an
urban renewal agency established under ORS 457.035. [1991 c.459 §27; 1993 c.270
§21; 1999 c.340 §12; 2003 c.195 §22; 2003 c.576 §250; 2005 c.22 §226]
305.591
Court determination that 1990 Measure 5 tax limit is inapplicable; collection
of tax; appeal; stay denied.
(1) If a court of competent jurisdiction determines that all or any part of
section 11b, Article XI of the Oregon Constitution does not apply to a tax on
property, the court may order the assessor, tax collector or other appropriate
public official to impose or collect that tax without regard to that portion of
section 11b, Article XI of the Oregon Constitution the court determines to be
inapplicable.
(2) When so ordered by a court, the
assessor, tax collector or other public official shall take all necessary
action to impose or collect the tax in compliance with the order of the court.
(3) Appeal of a decision of a court that
all or any part of section 11b, Article XI of the Oregon Constitution does not
apply to any tax shall not operate to stay any order of the court directing a
public official to collect the tax without regard to the provisions of all or
part of section 11b, Article XI of the Oregon Constitution. [1991 c.459 §28]
INTERGOVERNMENTAL
TAX RELATIONS
(Federal and
Other States)
305.605
Application of tax laws within federal areas in state. Where not inconsistent with the Constitution
and laws of the United States, notwithstanding any provision of any other
statute of this state, the laws of this state relating to the imposition and
collection of taxes shall apply with respect to any property located, any sale,
use or transaction occurring, any income arising, or any person residing within
any federal area situated within the exterior boundaries of this state. [Formerly
306.240]
305.610
Reciprocal recognition of tax liability; actions in other states for
(2) The Attorney General of
(3) As used in this section, “taxes”
includes:
(a) Tax assessments lawfully made whether
they are based upon a return or other disclosure of the taxpayer, upon the
information and belief of the taxing authority, or otherwise.
(b) Penalties lawfully imposed pursuant to
a taxing statute.
(c) Interest charges lawfully added to the
tax liability which constitutes the subject of the action.
(4) The Oregon Tax Court shall not have
jurisdiction over actions brought pursuant to this section. [Formerly 306.250;
subsection (4) enacted as 1961 c.533 §54; 1967 c.178 §4]
305.612
Reciprocal offset of tax refunds in payment of liquidated tax obligations;
rules. (1) The Director of
the Department of Revenue may enter into an intergovernmental agreement with
the United States Financial Management Service and the Internal Revenue Service
for the purpose of engaging in the reciprocal offset of federal tax refunds in
payment of liquidated state tax obligations and the offset of state tax refunds
in payment of liquidated federal tax obligations.
(2) The director may pay a fee charged by the federal government for the processing of an offset request. The fee may be deducted from amounts remitted to the state by the federal government pursuant to an intergovernmental