Text Size:   A+ A- A   •   Text Only
Find     
Site Image
HB 2543
Bill number HB 2543 (2011 Oregon laws, Chapter 723)
 ORS changed Much of ORS 311.666 to 311.775.
 Effective date September 28, 2011
 Applies to Claims for deferral for tax years beginning
July 1, 2011.
 DOR contact Bram Ekstrand  503-945-8262
 Summary Makes significant changes to the eligibility criteria for Senior and Disabled Citizen Property Tax Deferral programs.
   

 
Section Old law  New law
1
Definitions. Adds definitions for "median RMV," "net worth," and "transferee."
2
No net worth test.

Only initial year was based on household income and FAGI for subsequent years.

No criteria for re-entry into the program for previously cancelled or outstanding debts.
Adds a "net worth" test of $500,000; changes the income test from FAGI to total household income for all years; and makes anyone who has been in the program but whose debt was cancelled or delinquent ineligible.
3
No residency requirement.

No insurance requirement.

No home value limit.
Requires applicants to live in their home for at least five years.

Requires applicant to have homeowner's insurance.

Establishes an RMV threshold.

4
No cap on number of program participants.
Sets a cap on number of new applicants at 2011 level + 5 percent. Creates a sorting formula in case the limit is exceeded.
5
Interest on deferred taxes is 6 percent simple.
Interest on deferred taxes is 6 percent compound for any taxes paid after effective date of the bill.
6
 
Limits DOR payment to counties subject to available funds.
7
Allowed foreclosure attorney fees; set lien limit at 90 percent on disabled deferral accounts.
Allows attorney fees and costs.

Removes the 90-percent limit of DOR lien on disabled deferral accounts.
8
Set conditions when repayment begins.
Housekeeping edits only, no change.
9
Upon a finding of ineligibility, DOR could remove participant only up to July 1.
Ineligible participants can be removed until September 1 before November tax payment.
10
Spouse qualification.
Housekeeping edits only, no change.
11
Allowed DOR to partially pay taxes for individuals slightly above income threshold.
 
Once in the program no subsequent application required.
Partial payment provisions removed.
 
Participants must re-apply every two years.
 
12
Discussed DOR lien.
Housekeeping edits only, no change.
13
Delay of foreclosure.
Housekeeping edits only, no change.
14
Allowed a delay of collection for up to five years for heirs living in the home.

No personal debt collection.
Eliminates the delay in collection for heirs.
 
Allows DOR to pursue collection under personal debt against transferees.
15
DOR could offset IRS refunds for "state tax obligations."
DOR can offset IRS refunds for "amounts payable by a transferee."

See also HB 2550, (2011).
16
Mortgages discussion.
Prohibits participants from having a reverse mortgage.
17
Set transfer criteria from deferral account to Oregon Project Independence.
Eliminates the transfer language.
18
Set transfer criteria from deferral account to Oregon Project Independence.
Eliminates the transfer language.
19
Outlined special assessment deferral program.
Eliminates special assessment deferral program.
20
 
Housekeeping edits only, no change.
21
 
Housekeeping edits only, no change.
22
No personal debt collection.
Allows DOR to pursue collection under personal debt against transferees.
23
 
Housekeeping edits only, no change.
24
 
Changes to sections 1-4, 6-18, and 20-22 applicable to tax years beginning July 1, 2011.

Compound interest in section 5 applicable to taxes advanced on or after July 1, 2011.

Program sunsets after the 2021-22 tax year.
25
 
Conforming edits only, no change.
26
 
Conforming edits only, no change.
27
 
Conforming edits only, no change.
28
 
Conforming edits only, no change.
29  
Conforming edits only, no change.
30
 
Conforming edits only, no change.
31
 
Conforming edits only, no change.
32
 
Effective date of the bill is September 28, 2011.