Or. Admin. R. 150-311-0690 - Timing and Repayment of Disqualified, Cancelled or Inactivated Accounts Under the Property Tax Deferral Program
(1) The Department of Revenue will pay
property taxes to the county on behalf of each applicant that has been approved
for the property tax deferral programs under ORS
311.666 to
311.701. Once the application is
approved, the department will pay the taxes each year for as long as the
property and deferral program applicant remain eligible. A lien will be placed
on the property. The department tax-deferred property account will include the
deferred taxes, lien fees, and interest on the deferred taxes.
(2) "Cancelled" means that the tax-deferred
property has been removed from the deferral program at the written request of
the tax-deferred property applicant, and not for reason of any of the events
listed in ORS 311.684.
(a) If a tax-deferred property account is
cancelled prior to September 1, the department will not pay the current year
taxes to the county on behalf of the deferral program applicant.
(b) The department will pay the current year
taxes to the county on behalf of the deferral program applicant if a
tax-deferred property account is cancelled on or after September 1.
(c) A cancelled tax-deferred property account
may be paid in full at any time after cancellation but no later than as
required by ORS 311.686.
(3) "Disqualified" means the tax-deferred
property is no longer subject to property tax deferral and the department will
no longer pay taxes on behalf of the deferral program applicant. In addition,
the department will send notice of disqualification to the deferral program
applicant requiring repayment of all deferred taxes, fees and interest by
August 15 of the year following the calendar year in which any one of the
events set forth in ORS
311.684 occurs.
(4) "Inactivated" means the department has
determined that the deferral program applicant or tax-deferred property has
become ineligible for deferral of future property taxes due to failure to meet
eligibility requirements. If a tax-deferred property account is inactivated,
the department will send the deferral program applicant a notice of
inactivation and not pay current or future year taxes to the county on behalf
of the deferral program applicant, but the department's lien for deferred
property taxes will remain on the property.
(5) The department will seek to collect a
deferral debt from a transferee, as defined in ORS
311.666, in the following
circumstances.
(a) The transferee is occupying
or using the tax-deferred property more than 90 days following the deferral
program applicant's date of death, including use of the property as a lessor,
and is a potential recipient of the property under intestate succession or by
devise,
(b) The transferee
received the tax-deferred property from the estate of the deceased applicant,
or
(c) The transferee received a
right to the property by gift or assignment from an insolvent deferral program
applicant.
(6) If a
probate proceeding has been initiated, the department shall suspend collection
activity under subsections (5)(a) and (b) until the homestead has been
transferred out of the estate.
(7)
Notwithstanding section (5), bona fide purchasers or a person or entity that
receives property outside of an estate, such as by operation of law, are not
considered transferees unless they fall within section 5(c).
(8) The department may collect from a
transferee or transferees the lesser of the following:
(a) The amount of the balance due per the
department's deferred property tax lien, including deferred taxes, interest and
fees, or
(b) The positive amount
remaining after subtracting outstanding debts under liens with higher priority
than the department's deferred property tax lien from the real market value on
the last certified property tax roll preceding the disqualifying event for the
county in which the property is located.
(9) The department will release its lien on
the tax-deferred property only after all deferred taxes, interest and fees have
been paid.
(a) Repayment of a disqualified
account is due and payable to the department on or before August 15 of the year
following the calendar year in which a disqualifying circumstance
occurred.
(b) By itself,
cancellation or inactivation of an account is not an event requiring repayment
of all deferred taxes, interest and fees.
Notes
Statutory/Other Authority: ORS 305.100
Statutes/Other Implemented: ORS 311.666, 311.686 & 311.695
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.