2017 ORS 275.275¹
Distribution of proceeds

(1)(a) The proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) must be applied:

(A) First, to refund the county general fund for the full amount advanced by the county to pay the state tax upon all properties upon which the county has foreclosed liens for delinquent taxes;

(B) Second, to the county general fund in an amount equal to the penalty and fee described in ORS 312.120 (Period during which property held by county) for each property upon which the county has foreclosed a lien for delinquent taxes; and

(C) Third, to refund the county general fund for all the costs and expenses incurred by the county in the maintenance and supervision of the properties and in any suits or proceedings by the county to quiet title to or to defend the county’s title to property sold, including suits or land use proceedings to ascertain and determine the actual boundaries of the properties.

(b) The proceeds applied as refunds under paragraph (a)(A) and (C) of this subsection may not amount to more than the tax actually paid and the costs and expenses actually incurred by the county.

(c) Except as provided in paragraph (d) of this subsection, after the refunds authorized under paragraph (a) of this subsection are made, the county treasurer shall credit to the county general fund proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) from the sale of real property acquired by the county in a manner other than by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens. The proceeds described in this paragraph include payments for the real property sold under a purchase agreement pursuant to ORS 275.190 (Cash or installment sale) or 275.200 (Sale of land not sold by sheriff).

(d) In a county with a population of 650,000 or more, after the refunds authorized under paragraph (a) of this subsection are made, the county treasurer shall credit:

(A) The proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) from the sale of real property acquired by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens to an account or fund, created in the discretion of the county treasurer in or outside the county general fund, for use under ORS 271.330 (Relinquishing title of property not needed for public use) to provide:

(i) Funds for housing placement and retention support services for youth and families with children;

(ii) Flexible rental assistance to place youth and families with children into housing; or

(iii) Funds to develop new low income housing that is affordable to youth and families with children with 30 percent or lower median family income.

(B) Except as described in subparagraph (A) of this paragraph, the proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) from the sale of real property acquired by the county in any manner, including payments for the real property sold under a purchase agreement pursuant to ORS 275.190 (Cash or installment sale) or 275.200 (Sale of land not sold by sheriff), to the county general fund.

(2) The proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands):

(a) Must be credited to the county general fund by the county treasurer, if received from a lease or conveyance granting rights to explore, prospect for or remove biogas that is produced by decomposition of solid waste at any land disposal site or former land disposal site owned by the county. As used in this paragraph, “land disposal site” has the meaning given that term in ORS 459.005 (Definitions for ORS 459.005 to 459.437, 459.705 to 459.790 and 459A.005 to 459A.665).

(b) Must be segregated from the portion of the proceeds described in paragraph (a) of this subsection and deposited in a separate account maintained by the county. Interest earned on the segregated portion of the proceeds must be credited to the account established under this paragraph.

(c) May be used, in an amount that does not exceed 10 percent of the proceeds, to reimburse a taxing district within the county for costs and expenses necessarily incurred by the district in providing improved, additional or extraordinary services required on lands in the county as a result of exploration, drilling, mining, logging or other activities authorized under a lease or conveyance under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands). As used in this paragraph, “improved, additional or extraordinary services” includes, but is not limited to, fire protection and road construction and maintenance.

(d) May be used to reimburse the county for its actual costs and expenses incurred under this subsection and under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) for:

(A) The maintenance and supervision of a lease or conveyance granting rights to explore, prospect for, mine or remove valuable minerals, oil or gas from the lands;

(B) The maintenance and supervision of a lease or conveyance granting rights to conduct underground storage, as defined in ORS 520.005 (Definitions); and

(C) Litigation resulting from a lease or conveyance described in subparagraph (A) or (B) of this paragraph.

(3)(a) After a portion of the proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) and a portion of the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) are applied as provided in subsections (1) and (2) of this section, the balance of the proceeds arising under ORS 275.090 (Powers of county as to lands acquired on foreclosure of tax liens, or by exchange, devise or gift) to 275.290 (Sale or lease of timber on county lands) and 275.296 (Validation of certain conveyances prior to August 3, 1955) to 275.310 (Partition of land in which county has acquired interest) and the balance of the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands), including the payments for land sold under contract pursuant to ORS 275.190 (Cash or installment sale) or 275.200 (Sale of land not sold by sheriff), must be distributed by the county treasurer as follows:

(A) First, to a municipal corporation that has filed a notice, in accordance with ORS 275.130 (Claims of municipal corporations against the land to be filed prior to sale), relating to a local improvement lien against the property from which the sale proceeds are derived. The amount of the distribution to each municipal corporation must be in the principal amount of the lien, plus the interest and any penalties that accrued to the date of sale of the property.

(B) Second, to governmental units in accordance with the formula provided in ORS 311.390 (Tax and interest distribution percentage schedule) for the distribution of tax collections. The amount distributed to governmental units must be the amount remaining after the distribution, if any, under subparagraph (A) of this paragraph.

(b) Notwithstanding ORS 294.080 (Disposition of interest earned on funds held by county treasurer), as used in this subsection, “balance of the proceeds” includes all accumulated interest earned on the proceeds arising under ORS 275.294 (Sale or lease of right to prospect for and remove minerals or oil and gas from county lands) that are segregated pursuant to subsection (2)(b) of this section, unless a court of competent jurisdiction rules otherwise.

(4) Distribution of moneys under subsections (2) and (3) of this section must be made on or before June 30 in each year.

(5) The county treasurer or auditor shall verify the costs and expenses to be reimbursed under subsection (2) of this section.

(6) The county treasurer shall distribute reimbursements under subsection (2) of this section in accordance with an order of the governing body of the county.

(7) Notwithstanding subsection (1) of this section, a county with a population of 650,000 or more may convey real property acquired by foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of delinquent tax liens as provided in ORS 271.330 (Relinquishing title of property not needed for public use). [1963 c.606 §5; 1969 c.595 §11; 1982 s.s.1 c.19 §1; 1983 c.537 §5; 1985 c.707 §1; 1989 c.833 §78; 1993 c.613 §1; 1997 c.805 §5; 2005 c.243 §9; 2015 c.242 §1; 2017 c.315 §2]

Note: Section 2, chapter 242, Oregon Laws 2015, provides:

Sec. 2. The amendments to ORS 275.275 (Distribution of proceeds) by section 1 of this 2015 Act apply to proceeds and real property:

(1) Acquired by a county by foreclosure of a delinquent tax lien or by exchange for land originally acquired by foreclosure of delinquent tax liens; and

(2) Received by the county on or after the effective date of this 2015 Act [January 1, 2016]. [2015 c.242 §2]

Notes of Decisions

Interest earned on principal received from mineral leases is component of “total proceeds” and therefore, defendant was entitled to 10 percent of principal and interest. State ex rel School Dist. 13 v. Columbia County, 66 Or App 237, 674 P2d 608 (1983), Sup Ct review denied

Atty. Gen. Opinions

County deduc­tion of administrative costs for manage­ment of oil and gas leases and foreclosed prop­erty sales, (1980) Vol 41, p 4

1 Legislative Counsel Committee, CHAPTER 275—County Lands, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors275.­html (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 275, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano275.­html (2017) (last ac­cessed Mar. 30, 2018).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.