Or. Admin. Code § 150-311-0700

Current through Register Vol. 63, No. 12, December 1, 2024

Section 150-311-0700 - Election by Spouse or Disabled Heir to Continue Tax Deferral

(1) Definitions. For purposes of this rule:

(a) "Disabled heir" means a person that is a disabled heir as described in ORS 311.666.

(b) "Surviving spouse" means:

(A) A person who is legally married to an applicant at the time of the applicant's death; or

(B) A person who is joined in a registered domestic partnership with an applicant at the time of the applicant's death.

(2) After the applicant's death, a surviving spouse or disabled heir may continue the property in deferred tax status as active or inactive.

(a) When an account continues as active, the department continues to pay the yearly property taxes to the county. The account balance continues in deferral, and interest continues to accrue on all taxes paid.

(b) When an account continues in an inactive status, the department does not continue to pay property taxes to the county. The deferral account balance of past-deferred taxes, accrued interest, and recording fees remains deferred and interest continues to accrue on the past-deferred taxes.

(3) If a surviving spouse or disabled heir did not apply jointly with the now-deceased applicant for the original property tax deferral or was not eligible for deferral, they must file a new deferral application to continue the account as active or inactive.

(a) For the deferral account to remain active, in addition to the timely filing of a new deferral application all the following is required:

(A) The new applicant is:

(i) A surviving spouse that is at least 59-1/2 years of age on the date of the deceased applicant's death,

(ii) A surviving spouse that is a person with a disability as defined in ORS 311.666(8) on the date of the deceased applicant's death, or

(iii) A disabled heir.

(B) The property is the principal residence of the surviving spouse or disabled heir and they have-or anticipate obtaining within two years of the deceased applicant's death-a recorded deed to the property in their name, and

(C) The surviving spouse or disabled heir and the property meet all other eligibility requirements.

(b) If a surviving spouse meets all the requirements of subsection (3)(a) of this rule except the age or disability requirement, the surviving spouse may only continue the deferral account in an inactive status by filing an initial application timely. The surviving spouse is responsible to pay all future property taxes to the county. The surviving spouse may later file a new application to change the deferral account status from inactive to active when by April 15 of any year the surviving spouse has turned 62 years of age or has become disabled and begins to receive or becomes eligible to receive federal Social Security disability benefits.

(4) In the case of a divorce or termination of a registered domestic partnership, if the initial applicant becomes deceased before the divorce or termination of the domestic partnership becomes final, then the surviving spouse remaining in the homestead may file an application to continue the deferral. The requirements of sections (2) and (3) of this rule determine if the account remains active or becomes inactive.

(5) All initial applications to continue deferral must be filed with the county assessor by April 15 following the death of the preceding applicant. The department may determine that good and sufficient cause exists to accept an application filed after April 15 but within 180 days after the department mails or delivers to the applicant the deferred tax due and payable notice. Late filing fees will not be charged on such applications.

(6) The department may request estate or trust information from a surviving spouse or disabled heir for purposes of substantiating their anticipated ownership in cases where they do not already have a recorded deed to the property. If such documentation is found by the department to indicate ownership will eventually rest in the surviving spouse or disabled heir, the department may reinstate deferral in active status. If such documentation fails to satisfy the department that ownership is anticipated to rest in the disabled heir or surviving spouse, the account may be placed in inactive deferral status pending confirmation of the deed.

(7) If a surviving spouse or disabled heir applying under ORS 311.688 does not obtain deed to the property within two years of the death of the preceding applicant, the account may be disqualified from deferral and the accrued balance, including taxes and interest deferred while awaiting confirmation of the deed, may become due and subject to collection.

Or. Admin. Code § 150-311-0700

REV 12-2004, f. 12-29-04, cert. ef. 12-31-04; REV 11-2009, f. 12-21-09, cert. ef. 1-1-10; Renumbered from 150-311.688, REV 27-2016, f. 8-12-16, cert. ef. 9/1/2016; REV 23-2021, amend filed 12/16/2021, effective 1/1/2022

Statutory/Other Authority: ORS 305.100

Statutes/Other Implemented: ORS 311.688