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Crook County withholds portion of property taxes amid Department of Revenue appeal; budget accounts for potential refunds
Summary
County staff told the budget committee they issued a PRC (property tax withholding) to hold back disputed centrally assessed tax dollars tied to a Department of Revenue appeal, and budgeted estimated reductions for affected county funds.
Crook County finance staff told the Budget Committee that the county has issued a PRC (partial refund certificate/withholding) for the 2024–25 tax year while an appeal over centrally assessed intangible property proceeds through the Oregon Department of Revenue.
Why it matters: The PRC allows the county treasurer to withhold a portion of taxes otherwise disbursed so the county can avoid a larger interest penalty if a refund must be made. Finance staff told the committee the PRC affects multiple taxing districts and county funds; the proposed budget includes estimated reductions to several funds to avoid budget shortfalls if the appeal succeeds.
Finance director Christina said the withholding avoids a 12% interest penalty that would apply if the county later had to refund taxes already distributed. The appeal was initiated in 2021. The county estimated the PRC’s impact on Crook County funds for fiscal year 2026 at roughly $100,000 for the sheriff’s fund, $47,000 for the general fund, $18,000 for the debt service fund and about $2,424,000 for the library fund; those amounts were incorporated into the proposed budget.
The county treated the PRC amount conservatively in the proposed FY2026 plan. "These amounts have been accounted for in the proposed budget. The goal is to minimize this disruption while protecting the county from a potential refund liability," the manager said. Staff told the committee they expect a decision on the appeal in the second half of 2025 and will update budgets when the outcome is known.
What the PRC is and how the county is handling it: The PRC is a statutory mechanism tied to centrally assessed property appeals; the county uses it to hold disputed collections in trust rather than distribute them immediately to taxing districts. Crook County staff included estimated reductions in affected funds to preserve fiscal balance and reduce the need for mid‑year surprises.
Status: The committee adopted the FY2026 budget with the PRC impacts accounted for and asked staff to monitor the appeal and revisit the budget if the Department of Revenue issues a decision before the fiscal year begins.
