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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 3354
Sponsored by Representative BOICE, Senator SMITH DB
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: This Act lets counties keep proceeds of their land sales. (Flesch Readability Score: 95.1).
Distributes the balance of the proceeds from county sales of real property to the county general
fund.
A BILL FOR AN ACT
Relating to county sales of lands; amending ORS 275.275.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 275.275 is amended to read:
275.275. (1) The proceeds arising under ORS 275.090 to 275.290 and 275.296 to 275.310 must be:
(a) First, applied to refund the county general fund for the full amount actually paid by the
county to advance the state tax upon all properties upon which the county has foreclosed liens for
delinquent taxes;
(b) Second, applied to the county general fund in an amount equal to the penalty and fee de-
scribed in ORS 312.120 for each property upon which the county has foreclosed a lien for delinquent
taxes;
(c) Third, applied to refund the county general fund for all the costs and expenses actually in-
curred by the county in the maintenance and supervision of the properties and in any suits or pro-
ceedings by the county to quiet title to or to defend the county’s title to property sold, including
suits or land use proceedings to ascertain and determine the actual boundaries of the properties;
(d) Fourth, in a county with a population of 650,000 or more or in a county with a population
of 200,000 or more and that elects to distribute funds under this subsection:
(A) First, distributed to a local government, as defined in ORS 174.116, that has filed a notice,
in accordance with ORS 275.130, relating to a local improvement lien arising under ORS 223.680 or
223.685 against the property in the principal amount of the lien, plus any interest and penalties that
have accrued to the date of sale of the property.
(B) Second, if the proceeds arise under ORS 275.090 from the sale of real property acquired by
foreclosure of delinquent tax liens or by exchange for land originally acquired by foreclosure of
delinquent tax liens, applied to an account or fund created in the discretion of the county treasurer,
in or outside of the county general fund, for use under ORS 271.330 to provide:
(i) Funds for housing placement and retention support services for youth and families with
children;
(ii) Flexible rental assistance for housing placement for youth and families with children; or
(iii) Funds to develop new low income housing that is affordable to youth and families with
children with 30 percent or lower median family income.
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 4055 HB3354
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(C) Third, except as provided in subparagraph (B) of this paragraph, applied to the county gen-
eral fund; and
(e) Fifth, except as provided in paragraph (d) of this subsection, if the proceeds arise from the
sale of real property acquired by the county in a manner other than by foreclosure of delinquent tax
liens or by exchange for land originally acquired by foreclosure of delinquent tax liens, [applied]
all remaining funds are distributed to the county general fund. The proceeds described in this
paragraph include payments for the real property sold under a purchase agreement pursuant to ORS
275.190 or 275.200.
(2) The proceeds arising under ORS 275.294:
(a) Must be credited to the county general fund by the county treasurer, if received from a lease
or conveyance granting rights to explore, prospect for or remove biogas that is produced by de-
composition of solid waste at any land disposal site or former land disposal site owned by the
county. As used in this paragraph, “land disposal site” has the meaning given that term in ORS
459.005.
(b) Must be segregated from the portion of the proceeds described in paragraph (a) of this sub-
section and deposited in a separate account maintained by the county. Interest earned on the seg-
regated portion of the proceeds must be credited to the account established under this paragraph.
(c) May be used, in an amount that does not exceed 10 percent of the proceeds, to reimburse a
taxing district within the county for costs and expenses necessarily incurred by the district in pro-
viding improved, additional or extraordinary services required on lands in the county as a result of
exploration, drilling, mining, logging or other activities authorized under a lease or conveyance un-
der ORS 275.294. As used in this paragraph, “improved, additional or extraordinary services” in-
cludes, but is not limited to, fire protection and road construction and maintenance.
(d) May be used to reimburse the county for its actual costs and expenses incurred under this
subsection and under ORS 275.294 for:
(A) The maintenance and supervision of a lease or conveyance granting rights to explore, pros-
pect for, mine or remove valuable minerals, oil or gas from the lands;
(B) The maintenance and supervision of a lease or conveyance granting rights to conduct
underground storage, as defined in ORS 520.005; and
(C) Litigation resulting from a lease or conveyance described in subparagraph (A) or (B) of this
paragraph.
(3)(a) After a portion of the proceeds arising under ORS 275.090 to 275.290 and 275.296 to 275.310
and a portion of the proceeds arising under ORS 275.294 are applied as provided in subsections (1)
and (2) of this section, the balance of the proceeds arising under ORS 275.090 to 275.290 and 275.296
to 275.310 and the balance of the proceeds arising under ORS 275.294, including the payments for
land sold under contract pursuant to ORS 275.190 or 275.200, must be distributed by the county
treasurer as follows:
(A) First, to a municipal corporation that has filed a notice, in accordance with ORS 275.130,
relating to a local improvement lien against the property from which the sale proceeds are derived.
The amount of the distribution to each municipal corporation must be in the principal amount of the
lien, plus the interest and any penalties that accrued to the date of sale of the property.
(B) Second, to [governmental units in accordance with the formula provided in ORS 311.390 for
the distribution of tax collections. The amount distributed to governmental units must be the amount
remaining after the distribution, if any, under subparagraph (A) of this paragraph] the county gen-
eral fund.
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(b) Notwithstanding ORS 294.080, as used in this subsection, “balance of the proceeds” includes
all accumulated interest earned on the proceeds arising under ORS 275.294 that are segregated
pursuant to subsection (2)(b) of this section, unless a court of competent jurisdiction rules otherwise.
(4) Distribution of moneys under subsections (2) and (3) of this section must be made on or be-
fore June 30 in each year.
(5) The county treasurer or auditor shall verify the costs and expenses to be reimbursed under
subsection (2) of this section.
(6) The county treasurer shall distribute reimbursements under subsection (2) of this section in
accordance with an order of the governing body of the county.
(7) Notwithstanding subsection (1) of this section, a county with a population of 650,000 or more
may convey real property acquired by foreclosure of delinquent tax liens or by exchange for land
originally acquired by foreclosure of delinquent tax liens as provided in ORS 271.330.
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