(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
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
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
(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
(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
(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.
The department will seek to collect a
deferral debt from a transferee, as defined in ORS
in the following circumstances.
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
(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.
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).
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
(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.
The department will release its lien on
the tax-deferred property only after all deferred taxes, interest and fees have
(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
(b) By itself,
cancellation or inactivation of an account is not an event requiring repayment
of all deferred taxes, interest and fees.
Or. Admin. R.
f. 12-5-78, cert. ef. 12-31-78; TC 2-1979, f. & cert. ef. 3-5-79; REV
1-2003, f. & cert. ef. 7-31-03; REV 12-2007, f. 12-28-07, cert. ef. 1-1-08;
REV 8-2012, f. 12-18-12, cert. ef. 1-1-13; REV 1-2013, f. & cert. ef.
3-28-13; Renumbered from 150-311.684,
27-2016, f. 8-12-16, cert. ef.
32-2018, amend filed 12/31/2018, effective
Statutory/Other Authority: ORS
Statutes/Other Implemented: ORS