2015 ORS 305.228¹
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 (Collections Unit), 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 (Oregon Tax Court) to 305.560 (Appeals procedure generally). 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 (Warrant for collection of taxes).

(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 (Payments to and by state agencies by electronic funds transfers). [1985 c.85 §3; 1995 c.650 §111; 1999 c.61 §1]

Chapter 305

Notes of Decisions

Policy of efficient and effective tax collec­tion makes doctrine of estoppel against govern­ment in tax cases one of rare applica­tion. Pacific Conference v. Dept. of Rev., 7 OTR 429 (1978)

Law Review Cita­tions

9 WLJ 193-260 (1973); 48 WLR 147 (2011)


1 Legislative Counsel Committee, CHAPTER 305—Administration of Revenue and Tax Laws; Appeals, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors305.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 305, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano305.­html (2015) (last ac­cessed Jul. 16, 2016).
 
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.