New Oregon Law. No. 4 above has been stricken,2 and the following rules (found at ORS 90.675(14)(d) and (e) and (15) of HB 3016,) will apply. On January 1, 2016, if the landlord follows these new laws, the tax collector and Department of Revenue (collectively “tax collector”) will be required to cancel unpaid taxes in the following additional circumstances:
1. The landlord sells the home to a buyer who intends to occupy it in the community in which it is currently located, after:
a. Purchasing it at the abandonment sale; or
b. Acquiring it as a result of a written agreement with the tenant or tenant’s
personal representative, etc. in accordance with ORS 90.675(23)(a) [currently (22)(a)].
1 If there are remaining funds after that, the balance is paid in the following order to any lienholder to the extent of any unpaid balance owed on the lien and the remainder to the tenant, together with an itemized accounting.
2 Currently in ORS 90.675(d)(A), (B), and (C). Note that HB 3016 also added the following text to No. 2: “...and the landlord disposes of the property.”
2. The following additional conditions must be met:
There is a lien on the home for unpaid property taxes and special assessments owed to a county or to the Department of Revenue;
The landlord must prepare and sign and affidavit or declaration (hereinafter “Affidavit of Compliance”) in the form set forth on MHCO Form 31A, with the county tax collector or the Department of Revenue (hereinafter, “tax collector”). Upon filing this Affidavit of Compliance, the county tax collector will provide title to the home for the landlord to give to a buyer at the time of the sale.
After the sale, the landlord must file a second Affidavit of Compliance in the form set forth on MHCO Form 31B, with the tax collector. It must be accompanied by:
i. Payment of the amount remaining from the sale proceeds after the deduction of the landlord’s claims and costs, up to the amount of the unpaid taxes or tax lien. The landlord may retain the amount of the sale proceeds that exceed the amount of the unpaid taxes or tax lien;
Payment of any county warrant fees; and
A third Affidavit of Compliance, this time from the buyer, in the form set
forth on MHCO Form 31C, stating his/her intent to occupy the property in the community. Thereupon, the tax collector shall cancel all any remaining unpaid taxes or tax liens on the property.
Effect of New Law. The new law will permit landlords to sell abandoned homes with unpaid property taxes to persons who will reside in them at the community in which they are currently located. To the extent that the net sale proceeds (after deduction of the landlord’s statutory claims and costs) are insufficient to pay the former resident’s unpaid property taxes, the shortfall will be waived by the tax collector. If the sale proceeds cover more than the landlord’s statutory claims and costs, and all of the unpaid taxes, the landlord may retain any excess.