2013 ORS § 311.679¹
Estimate of deferred taxes
  • lien
  • foreclosure
  • voluntary payment

(1)(a) At the time that property taxes are deferred under ORS 311.666 (Definitions for ORS 311.666 to 311.701) to 311.701 (Senior Property Tax Deferral Revolving Account), or if property taxes were deferred prior to July 1, 1990, the Department of Revenue shall estimate the amount of property taxes deferred for tax years beginning on or after July 1, 1990, interest on the deferred taxes and any fees paid by the department in connection with lien filing, recording, release or satisfaction.

(b) The department shall have a lien in the amount of the estimate.

(2) If during the period of deferral the amount of taxes, interest and fees exceeds the estimate under subsection (1) of this section, the department shall have a lien for the amount of the excess.

(3)(a) A lien created under subsection (1) of this section attaches to the homestead to which the deferral relates on July 1 of the first tax year of deferral or on July 1, 1990, as applicable.

(b) A lien for the excess created under subsection (2) of this section attaches to the homestead on July 1 of the tax year in which the excess occurs.

(4) A lien created under subsection (1) or (2) of this section has the same priority as other real property tax liens except that liens of mortgages, trust deeds or security interests that are filed, recorded or noted on a certificate of title or in any record maintained by the Department of Consumer and Business Services pursuant to ORS 446.566 (Ownership document contents) to 446.646 (Department of Consumer and Business Services rules) prior in time to the attachment of a lien for deferred taxes are prior to the lien for deferred taxes.

(5)(a) The notice of lien for deferred taxes recorded as provided in ORS 311.675 (Recording liens) (1) and (2) arising on or after October 3, 1989, shall list the amount of the estimate of deferred taxes, interest and fees made by the department under subsection (1) of this section. Any amendment to the notice of lien to reflect a lien for excess, as described under subsection (2) of this section, shall list the amount of the excess that the department claims as a lien.

(b) If notice of lien with respect to any homestead has been filed or recorded as provided under ORS 311.675 (Recording liens) (1) to (3) prior to January 1, 1990, and the lien has not been released or satisfied, the department shall cause a further notice of lien to be recorded in the mortgage records of the county. The further notice of lien shall list the amount of the estimate of deferred taxes and interest made by the department under subsection (1) of this section and any amendment to the notice to reflect a lien for excess, described under subsection (2) of this section, and shall list the amount of the excess that the department claims as lien.

(6)(a) A lien created under this section may be foreclosed by the department as if it were a purchase money mortgage under ORS chapter 88.

(b) In a foreclosure action under this section, a court may award:

(A) Reasonable attorney fees to the prevailing party.

(B) All costs associated with foreclosure of the lien to the department if the department prevails.

(7) Receipts from foreclosure proceedings shall be credited in the same manner as other repayments of deferred property taxes under ORS 311.701 (Senior Property Tax Deferral Revolving Account).

(8)(a) By means of voluntary payment made as provided under ORS 311.690 (Voluntary payment of deferred tax and interest), the taxpayer may limit the amount of the lien for deferred taxes created under this section.

(b) If the taxpayer desires that the limit be reflected in the records of the county, the taxpayer must request, subject to any rules adopted by the department, that the department cause a partial satisfaction of the lien to be recorded in the county.

(c) Upon receipt of such a request, the department shall cause a partial satisfaction, in the amount of the voluntary payment, to be recorded.

(d) Nothing in this subsection affects the priority of the liens of the department, as originally created under subsections (1) and (2) of this section.

(9)(a) Nothing in this section affects any lien arising under ORS 311.666 (Definitions for ORS 311.666 to 311.701) to 311.701 (Senior Property Tax Deferral Revolving Account) for taxes assessed before January 1, 1990.

(b) A lien for taxes does not arise under ORS 311.666 (Definitions for ORS 311.666 to 311.701) to 311.701 (Senior Property Tax Deferral Revolving Account) for taxes assessed after December 31, 1989, except as provided under this section.

(10) This section first applies to liens for deferred taxes arising on or after October 3, 1989. [1989 c.948 §3; 1995 c.526 §2; 1995 c.618 §64; 1999 c.1097 §5; 2007 c.70 §79; 2007 c.363 §3; 2011 c.723 §7]

Note: See first note under 311.666 (Definitions for ORS 311.666 to 311.701).