(2) A delinquent taxpayer is subject to a penalty of $10 for each $1,000 (or fraction thereof) of assessed value of the property as placed on the assessment roll of the department for the year of delinquency; except that for a delinquent taxpayer required to file a statement under ORS 308.805 to 308.820, the penalty shall be based upon the assessed value of such property of the taxpayer as would have been placed upon the assessment roll of the department if such property were subject to ad valorem taxation. The penalty may not be less than $10 or more than $5,000.

(3) The department shall send any delinquent taxpayer against whom a penalty is imposed under this section a notice of its intention to impose the penalty, by mailing a notice to the taxpayer at the last-known address shown on the records of the department. The notice shall contain the amount of the penalty and the basis for its imposition.

(4)(a) If a delinquency penalty is imposed under this section, the taxpayer may file an application with the department to waive or reduce the penalty. An application under this paragraph must be filed with the department within 30 days from the mailing of the notice of intention to impose a delinquency penalty. The Director of the Department of Revenue may establish by rule instances in which the department may waive or reduce the penalty. A determination to waive or reduce a penalty is final, and no appeal may be taken from the determination.

(b) Rules adopted under this subsection shall be based on the department’s finding that:

(A) Good and sufficient cause exists for the actions of the taxpayer that resulted in the imposition of a penalty;

(B) The actions of the taxpayer that resulted in the imposition of a penalty constitute a first-time offense on the part of the taxpayer; or

(C) The action of the department to waive or reduce the penalty enhances the long-term effectiveness or efficiency of the voluntary tax compliance system.

(5) Upon completion of the review of the assessment roll of the department by the director, the department shall note on the assessment roll the name of each delinquent taxpayer, if not otherwise on the roll, and after the name the dollar amount of the penalty imposed under this section that was not waived or reduced by the director under subsection (4) of this section. The amount of penalty constitutes a lien as of July 1 of the year of imposition on all real and personal property of the delinquent taxpayer in the state.

(6) Any penalty collected under this section shall be deposited in the unsegregated tax collections account of the counties in which the property of the taxpayer is located. [1977 c.884 §13; 1981 c.804 §29; 1991 c.459 §85; 1997 c.154 §29; 2003 c.317 §1; 2009 c.128 §2]