Be It Resolved by the Legislative Assembly of the State of Oregon:
PARAGRAPH 1.
Section 11, Article XI of the Constitution of the State of Oregon, is amended
to read:
Sec. 11. (1)(a)
For the tax year beginning July 1, 1997, each unit of property in this state
shall have a maximum assessed value for ad valorem property tax purposes that
does not exceed the property's real market value for the tax year beginning
July 1, 1995, reduced by 10 percent.
(b) For tax years beginning after July 1, 1997, the
property's maximum assessed value shall not increase by more than three percent
from the previous tax year.
(c) Notwithstanding paragraph (a) or (b) of this
subsection, property shall be valued at the ratio of average maximum assessed
value to average real market value of property located in the area in which the
property is located that is within the same property class, if on or after July
1, 1995:
(A) The property is new property or new improvements to
property;
(B) The property is partitioned or subdivided;
(C) The property is rezoned and used consistently with the
rezoning;
(D) The property is first taken into account as omitted
property;
(E) The property becomes disqualified from exemption,
partial exemption or special assessment; or
(F) A lot line adjustment is made with respect to the
property, except that the total assessed value of all property affected by a
lot line adjustment shall not exceed the total maximum assessed value of the
affected property under paragraph (a) or (b) of this subsection.
(d) Property shall be valued under paragraph (c) of this
subsection only for the first tax year in which the changes described in
paragraph (c) of this subsection are taken into account following the effective
date of this section. For each tax year thereafter, the limits described in
paragraph (b) of this subsection apply.
(e) The Legislative Assembly shall enact laws that
establish property classes and areas sufficient to make a determination under
paragraph (c) of this subsection.
(f) Each property's assessed value shall not exceed the
property's real market value.
(g) There shall not be a reappraisal of the real market
value used in the tax year beginning July 1, 1995, for purposes of determining
the property's maximum assessed value under paragraph (a) of this subsection.
(2) The maximum assessed value of property that is assessed
under a partial exemption or special assessment law shall be determined by
applying the percentage reduction of paragraph (a) and the limit of paragraph
(b) of subsection (1) of this section, or if newly eligible for partial
exemption or special assessment, using a ratio developed in a manner consistent
with paragraph (c) of subsection (1) of this section to the property's
partially exempt or specially assessed value in the manner provided by law.
After disqualification from partial exemption or special assessment, any
additional taxes authorized by law may be imposed, but in the aggregate may not
exceed the amount that would have been imposed under this section had the
property not been partially exempt or specially assessed for the years for
which the additional taxes are being collected.
(3)(a)(A) The Legislative Assembly shall enact laws to
reduce the amount of ad valorem property taxes imposed by local taxing
districts in this state so that the total of all ad valorem property taxes
imposed in this state for the tax year beginning July 1, 1997, is reduced by 17
percent from the total of all ad valorem property taxes that would have been
imposed under repealed sections 11 and 11a of this Article (1995 Edition) and
section 11b of this Article but not taking into account Ballot Measure 47
(1996), for the tax year beginning July 1, 1997.
(B) The ad valorem property taxes to be reduced under
subparagraph (A) of this paragraph are those taxes that would have been imposed
under repealed sections 11 or 11a of this Article (1995 Edition) or section 11b
of this Article, as modified by subsection (11) of this section, other than
taxes described in subsection (4), (5), (6) or (7) of this section, taxes
imposed to pay bonded indebtedness described in section 11b of this Article, as
modified by paragraph (d) of subsection (11) of this section, or taxes
described in section 1c, Article IX of this Constitution.
(C) It shall be the policy of this state to distribute the
reductions caused by this paragraph so as to reflect:
(i) The lesser of ad valorem property taxes imposed for the
tax year beginning July 1, 1995, reduced by 10 percent, or ad valorem property
taxes imposed for the tax year beginning July 1, 1994;
(ii) Growth in new value under subparagraph (A), (B), (C),
(D) or (E) of paragraph (c) of subsection (1) of this section, as added to the
assessment and tax rolls for the tax year beginning July 1, 1996, or July 1,
1997 (or, if applicable, for the tax year beginning July 1, 1995); and
(iii) Ad valorem property taxes authorized by voters to be
imposed in tax years beginning on or after July 1, 1996, and imposed according
to that authority for the tax year beginning July 1, 1997.
(D) It shall be the policy of this state and the local
taxing districts of this state to prioritize public safety and public education
in responding to the reductions caused by this paragraph while minimizing the
loss of decision-making control of local taxing districts.
(E) If the total value for the tax year beginning July 1,
1997, of additions of value described in subparagraph (A), (B), (C), (D) or (E)
of paragraph (c) of subsection (1) of this section that are added to the
assessment and tax rolls for the tax year beginning July 1, 1996, or July 1,
1997, exceeds four percent of the total assessed value of property statewide
for the tax year beginning July 1, 1997 (before taking into account the
additions of value described in subparagraph (A), (B), (C), (D) or (E) of
paragraph (c) of subsection (1) of this section), then any ad valorem property
taxes attributable to the excess above four percent shall reduce the dollar
amount of the reduction described in subparagraph (A) of this paragraph.
(b) For the tax year beginning July 1, 1997, the ad valorem
property taxes that were reduced under paragraph (a) of this subsection shall
be imposed on the assessed value of property in a local taxing district as
provided by law, and the rate of the ad valorem property taxes imposed under
this paragraph shall be the local taxing district's permanent limit on the rate
of ad valorem property taxes imposed by the district for tax years beginning
after July 1, 1997, except as provided in subsection (5) of this section.
(c)(A) A local taxing district that has not [previously] imposed ad valorem property
taxes for any tax year beginning on or
after July 1, 1990, and that seeks to impose ad valorem property taxes
shall establish a limit on the rate of ad valorem property tax to be imposed by
the district. The rate limit established under this subparagraph shall be
approved by a majority of voters voting on the question. The rate limit
approved under this subparagraph shall serve as the district's permanent rate
limit under paragraph (b) of this subsection.
(B) A local taxing
district described in this paragraph may divide its district into tax zones and
establish limits on the rate of ad valorem property tax to be imposed by the
district. The rate limits established under this subparagraph shall serve as
the district's permanent rate limits. Each rate limit shall be applicable to
the tax zone for which it was established. Tax zones and rate limits may be
established under this subparagraph only if:
(i) At the time the
election is held, each proposed tax zone contains at least five percent of the
voters of the local taxing district seeking to establish the zones; and
(ii) The measure
proposing the tax zones and rate limits is approved by a majority of voters in
each proposed tax zone.
[(B)] (C) The voter participation
requirements described in subsection (8) of this section apply to an election
under this paragraph.
(d) If two or more local taxing districts seek to consolidate or merge, the limit on the rate of ad valorem property tax to be imposed by the consolidated or merged district shall be the rate that would produce the same tax revenue as the local taxing districts would have cumulatively produced in the year of consolidation or merger, if the consolidation or merger had not occurred.
(e)(A) If a local taxing district divides, the limit on the
rate of ad valorem property tax to be imposed by each local taxing district
after division shall be the same as the local taxing district's rate limit
under paragraph (b) of this subsection prior to division.
(B) Notwithstanding subparagraph (A) of this paragraph, the
limit determined under this paragraph shall not be greater than the rate that
would have produced the same amount of ad valorem property tax revenue in the
year of division, had the division not occurred.
(f) Rates of ad valorem property tax established under this
subsection may be carried to a number of decimal places provided by law and
rounded as provided by law.
(g) Urban renewal levies described in this subsection shall
be imposed as provided in subsections (15) and (16) of this section and may not
be imposed under this subsection.
(h) Ad valorem property taxes described in this subsection
shall be subject to the limitations described in section 11b of this Article,
as modified by subsection (11) of this section.
(4)(a)(A) A local taxing district other than a school
district may impose a local option ad valorem property tax that exceeds the
limitations imposed under this section by submitting the question of the levy
to voters in the local taxing district and obtaining the approval of a majority
of the voters voting on the question.
(B) The Legislative Assembly may enact laws permitting a
school district to impose a local option ad valorem property tax as otherwise
provided under this subsection.
(b) A levy imposed pursuant to legislation enacted under
this subsection may be imposed for no more than five years, except that a levy
for a capital project may be imposed for no more than the lesser of the
expected useful life of the capital project or 10 years.
(c) The voter participation requirements described in
subsection (8) of this section apply to an election held under this subsection.
(5)(a) Any portion of a local taxing district levy shall
not be subject to reduction and limitation under paragraphs (a) and (b) of
subsection (3) of this section if that portion of the levy is used to repay:
(A) Principal and interest for any bond issued before
December 5, 1996, and secured by a pledge or explicit commitment of ad valorem
property taxes or a covenant to levy or collect ad valorem property taxes;
(B) Principal and interest for any other formal, written
borrowing of moneys executed before December 5, 1996, for which ad valorem
property tax revenues have been pledged or explicitly committed, or that are
secured by a covenant to levy or collect ad valorem property taxes;
(C) Principal and interest for any bond issued to refund an
obligation described in subparagraph (A) or (B) of this paragraph; or
(D) Local government pension and disability plan
obligations that commit ad valorem property taxes and to ad valorem property
taxes imposed to fulfill those obligations.
(b)(A) A levy described in this subsection shall be imposed
on assessed value as otherwise provided by law in an amount sufficient to repay
the debt described in this subsection. Ad valorem property taxes may not be
imposed under this subsection that repay the debt at an earlier date or on a
different schedule than established in the agreement creating the debt.
(B) A levy described in this subsection shall be subject to
the limitations imposed under section 11b of this Article, as modified by
subsection (11) of this section.
(c)(A) As used in this subsection, “local government
pension and disability plan obligations that commit ad valorem property taxes”
is limited to contractual obligations for which the levy of ad valorem property
taxes has been committed by a local government charter provision that was in
effect on December 5, 1996, and, if in effect on December 5, 1996, as amended
thereafter.
(B) The rates of ad valorem property taxes described in
this paragraph may be adjusted so that the maximum allowable rate is capable of
raising the revenue that the levy would have been authorized to raise if
applied to property valued at real market value.
(C) Notwithstanding subparagraph (B) of this paragraph, ad
valorem property taxes described in this paragraph shall be taken into account
for purposes of the limitations in section 11b of this Article, as modified by
subsection (11) of this section.
(D) If any proposed amendment to a charter described in
subparagraph (A) of this paragraph permits the ad valorem property tax levy for
local government pension and disability plan obligations to be increased, the
amendment must be approved by voters in an election. The voter participation
requirements described in subsection (8) of this section apply to an election
under this subparagraph. No amendment to any charter described in this
paragraph may cause ad valorem property taxes to exceed the limitations of
section 11b of this Article, as amended by subsection (11) of this section.
(d) If the levy described in this subsection was a tax base
or other permanent continuing levy, other than a levy imposed for the purpose
described in subparagraph (D) of paragraph (a) of this subsection, prior to the
effective date of this section, for the tax year following the repayment of
debt described in this subsection the local taxing district's rate of ad
valorem property tax established under paragraph (b) of subsection (3) of this
section shall be increased to the rate that would have been in effect had the
levy not been excepted from the reduction described in subsection (3) of this
section. No adjustment shall be made to the rate of ad valorem property tax of
local taxing districts other than the district imposing a levy under this
subsection.
(e) If this subsection would apply to a levy described in
paragraph (d) of this subsection, the local taxing district imposing the levy
may elect out of the provisions of this subsection. The levy of a local taxing
district making the election shall be included in the reduction and ad valorem
property tax rate determination described in subsection (3) of this section.
(6)(a) The ad valorem property tax of a local taxing
district, other than a city, county or school district, that is used to support
a hospital facility shall not be subject to the reduction described in
paragraph (a) of subsection (3) of this section. The entire ad valorem property
tax imposed under this subsection for the tax year beginning July 1, 1997,
shall be the local taxing district's permanent limit on the rate of ad valorem
property taxes imposed by the district under paragraph (b) of subsection (3) of
this section.
(b) Ad valorem property taxes described in this subsection
shall be subject to the limitations imposed under section 11b of this Article,
as modified by subsection (11) of this section.
(7) Notwithstanding any other existing or former provision
of this Constitution, the following are validated, ratified, approved and
confirmed:
(a) Any levy of ad valorem property taxes approved by a
majority of voters voting on the question in an election held before December
5, 1996, if the election met the voter participation requirements described in
subsection (8) of this section and the ad valorem property taxes were first
imposed for the tax year beginning July 1, 1996, or July 1, 1997. A levy
described in this paragraph shall not be subject to reduction under paragraph
(a) of subsection (3) of this section but shall be taken into account in
determining the local taxing district's permanent rate of ad valorem property
tax under paragraph (b) of subsection (3) this section. This paragraph does not
apply to levies described in subsection (5) of this section or to levies to pay
bonded indebtedness described in section 11b of this Article, as modified by
subsection (11) of this section.
(b) Any serial or one-year levy to replace an existing
serial or one-year levy approved by a majority of the voters voting on the
question at an election held after December 4, 1996, and to be first imposed
for the tax year beginning July 1, 1997, if the rate or the amount of the levy
approved is not greater than the rate or the amount of the levy replaced.
(c) Any levy of ad valorem property taxes approved by a
majority of voters voting on the question in an election held on or after
December 5, 1996, and before the effective date of this section if the election
met the voter participation requirements described in subsection (8) of this
section and the ad valorem property taxes were first imposed for the tax year
beginning July 1, 1997. A levy described in this paragraph shall be treated as
a local option ad valorem property tax under subsection (4) of this section.
This paragraph does not apply to levies described in subsection (5) of this
section or to levies to pay bonded indebtedness described in section 11b of
this Article, as modified by subsection (11) of this section.
(8) An election described in subsection (3), (4),
(5)(c)(D), (7)(a) or (c) or (11) of this section shall authorize the matter
upon which the election is being held only if:
(a) At least 50 percent of registered voters eligible to vote
in the election cast a ballot; or
(b) The election is a general election in an even-numbered
year.
(9) The Legislative Assembly shall replace, from the
state's General Fund, revenue lost by the public school system because of the
limitations of this section. The amount of the replacement revenue shall not be
less than the total replaced in fiscal year 1997-1998.
(10)(a) As used in this section:
(A) “Improvements” includes new construction,
reconstruction, major additions, remodeling, renovation and rehabilitation,
including installation, but does not include minor construction or ongoing
maintenance and repair.
(B) “Ad valorem property tax” does not include taxes
imposed to pay principal and interest on bonded indebtedness described in
paragraph (d) of subsection (11) of this section.
(b) In calculating the addition to value for new property
and improvements, the amount added shall be net of the value of retired
property.
(11) For purposes of this section and for purposes of
implementing the limits in section 11b of this Article in tax years beginning
on or after July 1, 1997:
(a)(A) The real market value of property shall be the
amount in cash that could reasonably be expected to be paid by an informed
buyer to an informed seller, each acting without compulsion in an arm's length
transaction occurring as of the assessment date for the tax year, as
established by law.
(B) The Legislative Assembly shall enact laws to adjust the
real market value of property to reflect a substantial casualty loss of value
after the assessment date.
(b) The $5 (public school system) and $10 (other
government) limits on property taxes per $1,000 of real market value described
in subsection (1) of section 11b of this Article shall be determined on the
basis of property taxes imposed in each geographic area taxed by the same local
taxing districts.
(c)(A) All property taxes described in this section are
subject to the limits described in paragraph (b) of this subsection, except for
taxes described in paragraph (d) of this subsection.
(B) If property taxes exceed the limitations imposed under
either category of local taxing district under paragraph (b) of this
subsection:
(i) Any local option ad valorem property taxes imposed
under this subsection shall be proportionally reduced by those local taxing
districts within the category that is imposing local option ad valorem property
taxes; and
(ii) After local option ad valorem property taxes have been
eliminated, all other ad valorem property taxes shall be proportionally reduced
by those taxing districts within the category, until the limits are no longer
exceeded.
(C) The percentages used to make the proportional
reductions under subparagraph (B) of this paragraph shall be calculated
separately for each category.
(d) Bonded indebtedness, the taxes of which are not subject
to limitation under this section or section 11b of this Article, consists of:
(A) Bonded indebtedness authorized by a provision of this
Constitution;
(B) Bonded indebtedness issued on or before November 6,
1990; or
(C) Bonded indebtedness:
(i) Incurred for capital construction or capital
improvements; and
(ii)(I) If issued after November 6, 1990, and approved
prior to December 5, 1996, the issuance of which has been approved by a
majority of voters voting on the question; or
(II) If approved by voters after December 5, 1996, the
issuance of which has been approved by a majority of voters voting on the
question in an election that is in compliance with the voter participation
requirements in subsection (8) of this section.
(12) Bonded indebtedness described in subsection (11) of
this section includes bonded indebtedness issued to refund bonded indebtedness
described in subsection (11) of this section.
(13) As used in subsection (11) of this section, with
respect to bonded indebtedness issued on or after December 5, 1996, “capital
construction” and “capital improvements”:
(a) Include public safety and law enforcement vehicles with
a projected useful life of five years or more; and
(b) Do not include:
(A) Maintenance and repairs, the need for which could
reasonably be anticipated.
(B) Supplies and equipment that are not intrinsic to the
structure.
(14) Ad valorem property taxes imposed to pay principal and
interest on bonded indebtedness described in section 11b of this Article, as
modified by subsection (11) of this section, shall be imposed on the assessed
value of the property determined under this section or, in the case of
specially assessed property, as otherwise provided by law or as limited by this
section, whichever is applicable.
(15) If ad valorem property taxes are divided as provided
in section 1c, Article IX of this Constitution, in order to fund a
redevelopment or urban renewal project, then notwithstanding subsection (1) of
this section, the ad valorem property taxes levied against the increase shall
be used exclusively to pay any indebtedness incurred for the redevelopment or
urban renewal project.
(16) The Legislative Assembly shall enact laws that allow
collection of ad valorem property taxes sufficient to pay, when due,
indebtedness incurred to carry out urban renewal plans existing on December 5,
1996. These collections shall cease when the indebtedness is paid. Unless
excepted from limitation under section 11b of this Article, as modified by
subsection (11) of this section, nothing in this subsection shall be construed
to remove ad valorem property taxes levied against the increase from the dollar
limits in paragraph (b) of subsection (11) of this section.
(17)(a) If, in an election on November 5, 1996, voters
approved a new tax base for a local taxing district under repealed section 11
of this Article (1995 Edition) that was not to go into effect until the tax
year beginning July 1, 1998, the local taxing district's permanent rate limit
under subsection (3) of this section shall be recalculated for the tax year
beginning on July 1, 1998, to reflect:
(A) Ad valorem property taxes that would have been imposed
had repealed section 11 of this Article (1995 Edition) remained in effect; and
(B) Any other permanent continuing levies that would have
been imposed under repealed section 11 of this Article (1995 Edition), as
reduced by subsection (3) of this section.
(b) The rate limit determined under this subsection shall
be the local taxing district's permanent rate limit for tax years beginning on
or after July 1, 1999.
(18) Section 32, Article I, and section 1, Article IX of
this Constitution, shall not apply to this section.
(19)(a) The Legislative Assembly shall by statute limit the
ability of local taxing districts to impose new or additional fees, taxes,
assessments or other charges for the purpose of using the proceeds as
alternative sources of funding to make up for ad valorem property tax revenue
reductions caused by the initial implementation of this section, unless the new
or additional fee, tax, assessment or other charge is approved by voters.
(b) This subsection shall not apply to new or additional
fees, taxes, assessments or other charges for a government product or service
that a person:
(A) May legally obtain from a source other than government;
and
(B) Is reasonably able to obtain from a source other than
government.
(c) As used in this subsection, “new or additional fees,
taxes, assessments or other charges” does not include moneys received by a
local taxing district as:
(A) Rent or lease payments;
(B) Interest, dividends, royalties or other investment
earnings;
(C) Fines, penalties and unitary assessments;
(D) Amounts charged to and paid by another unit of government
for products, services or property; or
(E) Payments derived from a contract entered into by the
local taxing district as a proprietary function of the local taxing district.
(d) This subsection does not apply to a local taxing
district that derived less than 10 percent of the local taxing district's
operating revenues from ad valorem property taxes, other than ad valorem
property taxes imposed to pay bonded indebtedness, during the fiscal year
ending June 30, 1996.
(e) An election under this subsection need not comply with
the voter participation requirements described in subsection (8) of this
section.
(20) If any provision of this section is determined to be
unconstitutional or otherwise invalid, the remaining provisions shall continue
in full force and effect.
PARAGRAPH 2.
The amendment proposed by this
resolution shall be submitted to the people for their approval or rejection at
the next regular general election held throughout this state.
Filed in the office of
Secretary of State July 16, 2001
__________