2017 ORS 305.286¹
Potential refund credit in property tax appeals
  • conditions
  • procedure
  • interest

(1)(a) Whenever any property value or claim for exemption or cancellation of a property tax assessment is appealed, if the dollar amount in dispute exceeds $1 million, the assessor of the county in which the property is located may order the officer in charge of the assessment and tax roll to issue a potential refund credit with respect to the property as provided in this section.

(b) If the appeal relates to property assessed under ORS 308.505 (Definitions for ORS 308.505 to 308.681) to 308.681 (Annual report to legislature on ORS 308.677), the assessor of each county to which a portion of the value is apportioned may issue a potential refund credit under paragraph (a) of this subsection:

(A) Even if the dollar amount in dispute with respect to the county is $1 million or less; and

(B) Independently of the assessor of any other county.

(2) For purposes of this section, the dollar amount in dispute means the dollar amount of real market value or specially assessed value in dispute:

(a) For all tax years to which the appeal relates and any tax year during the pendency of the appeal; and

(b)(A) For all property of a taxpayer that is the subject of an appeal, regardless of whether the property is the subject of separate appeals; or

(B) For property that is assessed under ORS 308.505 (Definitions for ORS 308.505 to 308.681) to 308.681 (Annual report to legislature on ORS 308.677), for all current appeals relating to the property or to a unit of which the property is a part.

(3)(a) Except as expressly provided in this section, nothing in this section affects the laws governing the assessment and collection of ad valorem property taxes with respect to property to which a potential refund credit relates.

(b) Nothing in this section relieves a taxpayer of the obligation to comply with all laws governing the timely payment of ad valorem property taxes assessed on the property of the taxpayer to which a potential refund credit relates.

(4) For purposes of this section, the county assessor shall determine the amount of a potential refund credit as the dollar amount necessary to address the risk presented to the county by an appeal with respect to the tax year that is the subject of the property tax statement of the property to which the potential refund credit relates.

(5)(a) The county assessor may order issuance of a potential refund credit pursuant to this section at any time during a tax year to which an appeal relates and any tax year during the pendency of the appeal.

(b) Within 10 days after issuing a potential refund credit, the county assessor shall notify:

(A) The county treasurer of the amount of taxes included in the potential refund credit; and

(B) The taxpayer of the amount of taxes included in the potential refund credit and of the provisions of this section.

(6)(a) Upon payment by the taxpayer of taxes included in a potential refund credit, the county treasurer shall withhold the amount of taxes included in the potential refund credit from the amounts credited under ORS 311.395 (Periodic statements of tax collections), net of any discounts, and deposit the withheld amount into a trust fund administered by the county treasurer in accordance with paragraph (b) of this subsection.

(b) The county treasurer may:

(A) Deposit the amount withheld under paragraph (a) of this subsection in the investment pool as defined in ORS 294.805 (Definitions for ORS 294.805 to 294.895) or any other investment account.

(B) Create a separate account for any amount withheld that is deposited in the investment pool or other investment account or commingle the amount withheld with other county moneys and account for the amount withheld separately.

(c) The county treasurer shall provide for proper accounting of any interest accruing on the amount withheld.

(7)(a) Upon final resolution of the appeal to which a potential refund credit relates, interest shall be computed and paid solely based on the amount earned by moneys in the investment account in which the amount withheld was deposited during the period the amount withheld was deposited in the account.

(b) If a refund is ordered, notwithstanding ORS 311.812 (No interest on refunds under ORS 311.806), the amount of the refund shall be paid to the taxpayer out of the amount withheld under subsection (6) of this section, with interest as provided in paragraph (a) of this subsection for the period beginning on the later of the payment date or due date of the taxes included in the potential refund credit and ending on the date on which the refund is paid.

(c)(A) To the extent that taxes included in a potential refund credit are held to be due to the taxing districts, notwithstanding ORS 311.505 (Due dates), the county treasurer shall withdraw an amount not to exceed the amount due, with interest as provided in paragraph (a) of this subsection, from any account in which the amount withheld has been deposited under subsection (6) of this section and deposit the amount in the unsegregated tax collections account described in ORS 311.385 (Deposit of property tax moneys in unsegregated tax collections account) for distribution in accordance with ORS 311.390 (Tax and interest distribution percentage schedule).

(B) The potential refund credit shall be deemed imposed in the tax year or years to which the appeal that gave rise to the potential refund credit relates. The effect of the tax limitation under Article XI, section 11b, of the Oregon Constitution, shall be determined with respect to the amount of taxes included in the potential refund credit in the tax year or years in which the taxes were levied.

(8) On or before November 25 of each year, the county assessor shall provide an annual report to the governing body and the treasurer of the county showing the status of all current potential refund credits and the status of the appeals to which the credits relate.

(9) Issuance of a potential refund credit, the withholding of tax amounts, the deposit of amounts withheld in an account and the payment of interest upon resolution of an appeal under this section do not give rise to a cause of action other than an action to ensure proper application of the provisions of this section.

(10) The Department of Revenue may adopt rules for purposes of this section. [2011 c.112 §1; 2017 c.541 §1]

Note: Section 2, chapter 541, Oregon Laws 2017, provides:

Sec. 2. (1) The amendments to ORS 305.286 (Potential refund credit in property tax appeals) by section 1 of this 2017 Act do not apply to deferred billing credits issued under ORS 305.286 (Potential refund credit in property tax appeals) as in effect immediately before the effective date of this 2017 Act [October 6, 2017].

(2) The provisions of ORS 305.286 (Potential refund credit in property tax appeals) as in effect immediately before the effective date of this 2017 Act continue to apply to a deferred billing credit through the payment of a refund or the collection of additional taxes, as applicable, upon final resolution of the appeal to which the deferred billing credit relates. [2017 c.541 §2]

Note: 305.286 (Potential refund credit in property tax appeals) 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.

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 (2017) (last ac­cessed Mar. 30, 2018).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2017, Chapter 305, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano305.­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.