71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to HB 2010
LC 552/HB 2010-12
HOUSE AMENDMENTS TO
HOUSE BILL 2010
By COMMITTEE ON WATER AND ENVIRONMENT
May 30
On page 1 of the printed bill, line 2, after '294.316 ' insert
a comma and delete the rest of the line.
In line 3, after '305.620' insert 'and 327.013'.
Delete lines 5 through 27 and delete pages 2 through 9 and
insert:
' { + SECTION 1. + } { + As used in sections 1 to 22 of this
2001 Act:
' (1) 'CERCLA' means the federal Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, 42 U.S.C. 9601
et seq., as amended and in effect on December 31, 2000, and
federal regulations adopted thereunder.
' (2) 'District' means an environmental cleanup district
established under sections 1 to 22 of this 2001 Act.
' (3) 'District board' means the governing body of an
environmental cleanup district.
' (4) 'Occupy' means to exercise a lawful right of present use
or possession of real or tangible personal property. An owner of
property may be considered to occupy the property only if the
owner is exercising a lawful right to present use or possession
of the property, and the present use or possession of the
property by the owner consists of activities other than those
activities that the owner is mandated by law to carry out.
' (5) 'RD/RA work plan' means a written document developed by
potentially responsible parties and approved by the United States
Environmental Protection Agency that specifies the remedial
actions to be undertaken as the result of a record of decision
issued by the United States Environmental Protection Agency and
in which the Department of Environmental Quality concurs.
' (6) 'Taxpayer' means a person who occupies property within
the district and who incurs gross receipts during the tax year.
' (7) 'Tax year,' unless the context requires otherwise, means
the personal income or corporate excise or income tax year of the
taxpayer. + }
' { + SECTION 2. + } { + (1) The Legislative Assembly finds
that the listing of an area on the National Priorities List
described in 42 U.S.C. 9605, commonly known as establishing a
Superfund site, and the remedial investigations and feasibility
studies undertaken following such a listing, identify the
presence of pollutants, hazardous substances and contaminants in
the area, including oil contaminants, that are not directly
traceable to a particular responsible party. The Legislative
Assembly further finds that CERCLA and ORS 465.200 to 465.510 and
465.900 provide for joint and several liability among numerous
potentially responsible parties for the cleanup of such areas.
Because joint and several liability does not identify a
potentially responsible party's share of cleanup costs, remedial
actions are often greatly delayed as potentially responsible
parties litigate each share of the joint and several liability.
The Legislative Assembly declares that establishing an
environmental cleanup district to administer grants, funded
through a privilege tax, to be used by potentially responsible
parties to implement RD/RA work plans will facilitate rapid
cleanup of the area. The Legislative Assembly further declares
that authorizing the district to impose a privilege tax is
justified to rapidly restore property values, and the property
tax revenues associated with those values, that are currently
depressed due to CERCLA liability and liability under ORS 465.200
to 465.510 and 465.900.
' (2) It is the intent of the Legislative Assembly that the
district board of an environmental cleanup district strive to
award grants for the implementation of an RD/RA work plan to
clean up hazardous substances on land within the district or
within water or sediments on submerged or submersible lands
within, contiguous or proximate to the environmental cleanup
district, if such contamination causes joint and several
liability under CERCLA or ORS 465.200 to 465.510 and 465.900 and
if the contamination is not directly traceable to separately
identifiable responsible parties.
' (3) The Legislative Assembly declares the following to be
public purposes for which an environmental cleanup district is
created:
' (a) To provide grants for remedial actions required under an
RD/RA work plan; and
' (b) To provide alternative funding that is not derived from
property taxes to local taxing districts that are not potentially
responsible parties under CERCLA or ORS 465.200 to 465.510 and
465.900. + }
' { + SECTION 3. + } { + (1) In each city of this state with
a population of 350,000 or more and in which an area is first
placed on the National Priorities List described in 42 U.S.C.
9605 after July 1, 2000, and before the effective date of this
2001 Act, there is established an environmental cleanup district.
' (2) The boundaries of the environmental cleanup district
shall encompass only that territory in which ownership or
operation of the majority of property causes liability under
CERCLA or under ORS 465.200 to 465.510 and 465.900. The district
board shall enact an ordinance that describes the precise
boundaries of the district and may amend that ordinance at any
time to reflect changes in liability under CERCLA or ORS 465.200
to 465.510 and 465.900. An emergency may not be declared in an
ordinance described in this subsection.
' (3) An environmental cleanup district established under this
section shall constitute a municipal corporation of this state
and a public body, corporate and politic, exercising public
power. A district shall be considered a unit of local government
for purposes of ORS 190.003 to 190.125, a public employer for the
purposes of ORS 236.610 to 236.640 and a political subdivision
for purposes of ORS 305.620.
' (4) An environmental cleanup district is not subject to ORS
294.305 to 294.565. + }
' { + SECTION 4. + } { + (1) The governing body of an
environmental cleanup district shall consist of a board of seven
members, who shall be appointed by the Governor as follows:
' (a) One member who owns property, or who represents an owner
of property, in the district that, without diminution in value
due to CERCLA liability or liability under ORS 465.200 to 465.510
and 465.900, has a fair market value of at least $20 million.
' (b) One member who owns property, or who represents an owner
of property, within the district.
' (c) One member representing a recognized environmental
advocacy organization.
' (d) One member representing the city in which the
environmental cleanup district is located.
' (e) If located within a port district organized under ORS
chapter 777 or 778, one member representing the port district.
' (f) The Governor shall appoint the remaining members as
at-large members.
' (2) All appointments of members of the board are subject to
Senate confirmation in the manner provided in ORS 171.562 and
171.565.
' (3) The term of office of a board member is four years, but
each board member serves at the pleasure of the Governor until
the member's term expires. A board member is eligible for
reappointment. Before the expiration of the term of a board
member, or following the member's resignation or inability to
continue service, the member's successor shall be appointed by
the Governor so that the composition of the board remains as
described in subsection (1) of this section. A board member whose
term has expired shall continue to serve until a successor has
been appointed. + }
' { + SECTION 5. + } { + (1) The members of the first
district board of an environmental cleanup district established
under sections 1 to 22 of this 2001 Act shall be appointed by the
Governor on or before March 1, 2002.
' (2) The Governor shall establish a temporary chairperson from
among the board members described in subsection (1) of this
section and establish a time, not later than April 1, 2002, for
the first meeting of the board. The board shall select a
permanent chairperson from among its members at the first meeting
of the board. + }
' { + SECTION 6. + } { + (1) The district board of an
environmental cleanup district shall have the following duties
and powers:
' (a) Subject to section 3 (2) of this 2001 Act, to enact
ordinances to establish or modify the boundaries of an
environmental cleanup district and to impose a privilege tax
described in sections 8 to 19 of this 2001 Act.
' (b) To develop procedures by which grants of moneys may be
applied for and awarded.
' (c) Following promulgation of an RD/RA work plan, to hire an
environmental consultant to assist the district board in
evaluating grant proposals.
' (d) To award grants of environmental cleanup district moneys
to potentially responsible parties for undertaking remedial
actions set forth in an RD/RA work plan.
' (e) To make and accept contracts, deeds, releases and
documents that, in the judgment of the district board, are
necessary or proper in the exercise of the powers of the
district.
' (f) To sue and be sued.
' (g) To perform any act necessary or proper to the complete
exercise and effect of any of the district's powers under
sections 1 to 22 of this 2001 Act.
' (2) The Department of Environmental Quality shall provide
administrative and technical assistance to a district on the
establishment of district boundaries under section 3 of this 2001
Act. The Department of Revenue shall provide administrative and
technical assistance to a district in establishing tax rates
under section 8 of this 2001 Act. The Department of Environmental
Quality shall provide administrative and technical assistance to
a district in awarding grants under section 21 of this 2001
Act. + }
' { + SECTION 7. + } { + An environmental cleanup district
may not award environmental cleanup district grants for remedial
action:
' (1) That is not pursuant to a record of decision issued by
the United States Environmental Protection Agency and in which
the Department of Environmental Quality concurs and an RD/RA work
plan promulgated as a result of the record of decision;
' (2) Ordered by the United States Environmental Protection
Agency or the Department of Environmental Quality for one or more
specifically identified responsible parties to perform;
' (3) To be performed on land that is not submerged or
submersible land and from which hazardous substances, including
oil contaminants, are not releasing into water or onto submerged
or submersible land; and
' (4) Ordered to be performed prior to the completion of the
remedial investigation/feasibility study of the area described in
section 3 of this 2001 Act. + }
' { + SECTION 8. + } { + (1) An environmental cleanup
district may elect to impose an annual privilege tax on each
taxpayer. If an election is made by the district to impose an
annual privilege tax, each taxpayer shall be subject to the tax
for the privilege of receiving the benefits of environmental
cleanup district grant funding under section 21 of this 2001 Act.
' (2) A district board of a district electing to impose a
privilege tax pursuant to sections 8 to 19 of this 2001 Act, on
or before July 1 of each year, shall determine a rate of tax to
be imposed on the gross receipts of each district taxpayer.
' (3) A district may not impose a tax that raises more than
$10.1 million annually. Any amounts collected in excess of $10.1
million annually shall be refunded to district taxpayers.
' (4) The board shall enact an ordinance setting forth the tax
rate applicable for the tax year. An emergency may not be
declared in an ordinance described in this subsection. The board
shall send a certified copy of the ordinance to the Department of
Revenue.
' (5) The rate of tax that is adopted by ordinance under
subsection (2) of this section shall be the rate of privilege tax
for tax years beginning in the calendar year next following the
year in which the rate of tax is adopted. + }
' { + SECTION 9. + } { + (1) As soon as is practicable
following the adoption of an ordinance establishing the
boundaries of an environmental cleanup district and following the
adoption of an ordinance establishing a privilege tax rate, the
Department of Revenue shall prescribe an information return form
for taxpayers within the district to complete.
' (2) Each taxpayer shall complete the information return in
the time and manner prescribed by the department. The information
return shall contain the information required by the department,
including but not limited to:
' (a) The United States gross receipts of the taxpayer for the
taxpayer's most recent tax year for which a federal income tax
return has been filed;
' (b) The average value of the taxpayer's real and tangible
personal property owned or rented and used in the district for
the tax year for which gross receipts are being reported;
' (c) The total amount paid in the district as compensation,
for the tax year for which gross receipts are being reported; and
' (d) The total sales of the taxpayer in the district for the
tax year for which gross receipts are being reported.
' (3) ORS 314.655, 314.660 and 314.665 apply to the items being
reported under subsection (2)(b) to (d) of this section. + }
' { + SECTION 10. + } { + (1) A privilege tax imposed by an
environmental cleanup district at the rate determined under
section 8 of this 2001 Act shall be imposed on the gross receipts
of the taxpayer for the tax year of the taxpayer that begins in
the calendar year to which the ordinance setting forth the rate
applies. The tax shall be imposed only on that portion of the
gross receipts of a taxpayer within an environmental cleanup
district that is apportioned to the district under this section.
' (2)(a) For purposes of this section, the gross receipts of a
taxpayer consist of the sum of sales receipts received by the
taxpayer during the tax year.
' (b) The taxpayer receives receipts from sales when the
taxpayer receives consideration:
' (A) For the transfer of title to, or possession of, property
that is stock in trade or other property of a kind that would
properly be included in the inventory of the taxpayer if on hand
at the close of the tax period or property held by the taxpayer
primarily for sale to customers in the ordinary course of the
taxpayer's trade or business;
' (B) For the performance of services that constitute business
activities other than those described under subparagraph (A) of
this paragraph; or
' (C) From any combination of subparagraphs (A) and (B) of this
paragraph.
' (3) The gross receipts of a taxpayer shall be apportioned to
a district by multiplying the entire gross receipts of the
taxpayer by a fraction, the numerator of which is the property
factor plus the payroll factor plus the sales factor, and the
denominator of which is three.
' (4) For purposes of this section, the property factor shall
be determined as prescribed in ORS 314.655, except that the
numerator shall consist of the average value of the taxpayer's
real and tangible personal property owned or rented and used in
the environmental cleanup district during the tax year.
' (5) For purposes of this section, the payroll factor shall be
determined as prescribed in ORS 314.660, except that the
numerator shall be the total amount paid in the environmental
cleanup district during the tax year by the taxpayer for
compensation.
' (6) For purposes of this section, the sales factor shall be
determined as prescribed in ORS 314.665, except that the
numerator shall be the total sales of the taxpayer in the
environmental cleanup district during the tax year. + }
' { + SECTION 11. + } { + (1) A taxpayer subject to an
environmental cleanup district privilege tax shall pay estimated
taxes to the Department of Revenue on or before the 15th day
following the conclusion of each quarter of the tax year.
' (2) Estimated taxes for each quarter shall equal 25 percent
of the total privilege tax paid by the taxpayer for the preceding
tax year.
' (3) Estimated privilege taxes shall be paid in the manner
prescribed by the Department of Revenue. + }
' { + SECTION 12. + } { + Notwithstanding section 11 of this
2001 Act, estimated privilege taxes need not be paid for the
first tax year in which a taxpayer is subject to the
environmental cleanup district privilege tax under sections 8 to
19 of this 2001 Act. + }
' { + SECTION 13. + } { + (1) Notwithstanding sections 8 and
10 of this 2001 Act, an environmental cleanup district privilege
tax imposed on a taxpayer may not exceed an amount computed by
multiplying the total consolidated ad valorem property tax rate
determined under ORS 310.147 (3)(b) for the property tax year
beginning in the calendar year in which also begins the privilege
tax year of the taxpayer by the indexed value of the property
occupied by the taxpayer.
' (2) The indexed value of the property occupied by the
taxpayer shall be determined by multiplying the real market value
of the property for the property tax year beginning July 1, 2002,
by the ratio of the average maximum assessed value over the
average real market value for that tax year, and increasing that
product by three percent for the current property tax year and
three percent for each intervening tax year after the tax year
beginning July 1, 2002.
' (3) The county assessor of the county in which the
environmental cleanup district is located shall assist the
taxpayer in determining the real market value of the property of
the taxpayer within the district for the tax year beginning July
1, 2002. If the property consists of principal industrial
property, or secondary industrial property for which the
Department of Revenue has not delegated appraisal duties under
ORS 306.126, the department shall assist the taxpayer in
determining the real market value of the property of the taxpayer
within the district for the tax year beginning July 1, 2002.
' (4) This section applies to a taxpayer that occupies property
within an environmental cleanup district, without regard to the
qualification of the property for property tax exemption or
special assessment, other than the exemptions for publicly owned
property in ORS 307.040, 307.065, 307.090 and 307.110 (3). + }
' { + SECTION 14. + } { + (1) A person who occupies
residential property in an environmental cleanup district,
including a person occupying one or more units of residential
rental property, is exempt from any privilege tax imposed by an
environmental cleanup district pursuant to sections 8 to 19 of
this 2001 Act.
' (2) This state and any municipal corporation or political
subdivision of this state that occupies property within an
environmental cleanup district is exempt from any privilege tax
imposed by an environmental cleanup district pursuant to sections
8 to 19 of this 2001 Act. + }
' { + SECTION 15. + } { + (1) A taxpayer subject to an
environmental cleanup district privilege tax shall file a
privilege tax return and pay the tax, less the total amount of
estimated tax payments for the tax year made under section 11 of
this 2001 Act, on the earlier of:
' (a) The date on which the taxpayer's personal income or
corporate income or excise tax return is filed; or
' (b) The date on which the taxpayer's personal income or
corporate income or excise tax return is due to be filed.
' (2) The return shall be on a form prescribed by the
Department of Revenue and shall accompany the taxpayer's personal
income or corporate excise or income tax return for the tax
year. + }
' { + SECTION 16. + } { + (1) If the amount of privilege tax
paid by a taxpayer under sections 8 to 19 of this 2001 Act
exceeds the amount of tax payable, the Department of Revenue
shall refund the amount of the excess to the taxpayer.
' (2) A refund does not include interest if the refund is made
within 180 days of the date the return is filed.
' (3) If a refund is made more than 180 days after the date the
return is filed, the refund shall include interest at the rate
established under ORS 305.220 for each month or fraction of a
month from the date of payment of the excess amount to the date
of refund.
' (4) Refund payments shall be made from the suspense account
described in section 19 of this 2001 Act. + }
' { + SECTION 17. + } { + (1) Unless the context requires
otherwise, the provisions of ORS chapters 305, 314 and 316 (or
ORS chapter 317, in the case of a taxpayer that is a corporation)
as to the audit and examination of reports and returns,
determination of deficiencies, assessments, claims for refunds,
penalties, interest, jeopardy assessments, warrants, conferences
and appeals to the Oregon Tax Court, and procedures relating
thereto, apply to sections 8 to 19 of this 2001 Act.
' (2) The privilege tax imposed by an environmental cleanup
district pursuant to sections 8 to 19 of this 2001 Act may not
become a lien on property owned or occupied by a taxpayer. The
privilege tax is a personal liability of a taxpayer subject to
the tax until the tax is paid. The privilege tax does not cease
to be a personal liability of the taxpayer when the taxpayer
ceases to occupy property within an environmental cleanup
district.
' (3) A taxpayer that begins to occupy property within an
environmental cleanup district is not subject to the privilege
tax for any period of time occurring prior to the date the
taxpayer begins to occupy property within the environmental
cleanup district. + }
' { + SECTION 18. + } { + If a taxpayer occupies property in
an environmental cleanup district for only part of a tax year,
the tax otherwise due under sections 8 to 19 of this 2001 Act
shall be prorated based on the number of days during the tax year
that the taxpayer occupied the property. + }
' { + SECTION 19. + } { + (1) All moneys received by the
Department of Revenue from the privilege tax imposed by an
environmental cleanup district pursuant to sections 8 to 19 of
this 2001 Act, including related interest and penalties, shall be
held in a suspense account established under ORS 293.445.
' (2) After the payment of refunds of the privilege tax:
' (a) Amounts necessary to reimburse the Department of Revenue
for the expenses of the department in administering sections 8 to
19 of this 2001 Act are continuously appropriated to the
department and shall be deposited in the Department of Revenue
Administration Account established under ORS 305.063; and
' (b) All other moneys shall be distributed to the
environmental cleanup district as provided in the agreement
entered into between the department and the district under ORS
305.620. + }
' { + SECTION 20. + } { + (1) An environmental cleanup
district must make distributions to all of the following local
taxing districts that may be located in the environmental cleanup
district:
' (a) A common or union high school district;
' (b) An education service district that imposes a local option
tax under ORS 280.040 to 280.145;
' (c) A community college district that imposes a local option
tax under ORS 280.040 to 280.145; or
' (d) A special district described in ORS 198.010, other than a
port district organized under ORS chapter 777 or 778, that has
not been identified as a responsible party for specific response,
removal or remedial actions ordered to be performed pursuant to
CERCLA or ORS 465.200 to 465.510 and 465.900.
' (2) The distribution to the local taxing districts described
in subsection (1) of this section shall be made annually, on or
before December 31 of each calendar year in which the privilege
tax described in sections 8 to 19 of this 2001 Act is being
imposed. The amounts to be distributed shall be computed by
multiplying the total amount of privilege tax moneys received by
the environmental cleanup district under section 19 of this 2001
Act for the calendar year by the ratios used in the percentage
distribution schedule developed under ORS 311.390:
' (a) For the property tax year beginning in the calendar year
for which the distribution is made; and
' (b) For the local taxing districts listed under subsection
(1) of this section. For the districts listed in subsection
(1)(b) and (c) of this section, only the ratios used for
distributing local option tax revenues may be used to make the
distributions described in this section.
' (3) The amounts computed under subsection (2) of this section
shall be distributed to the local taxing districts listed in
subsection (1) of this section.
' (4) The balance of moneys remaining after the distribution
described in subsection (3) of this section shall be placed in
the local government investment pool to be invested as prescribed
in ORS 294.805 to 294.895. Such funds may be withdrawn at any
time following promulgation of an RD/RA work plan applicable to
the listed area described in section 3 (1) of this 2001 Act. + }
' { + SECTION 21. + } { + (1) Following United States
Environmental Protection Agency approval of an RD/RA work plan,
potentially responsible parties may apply to the district board
of an environmental cleanup district for grant moneys to be used
to undertake remedial actions set forth in the RD/RA work plan.
' (2) An application for a grant shall be made using the
procedures and forms required by the environmental cleanup
district and shall contain the information required by the
district for evaluating the proposed use of grant moneys.
' (3) To the extent grant funds are available, the district
shall award grants to potentially responsible parties for use in
implementing remedial actions that promote the policies set forth
in section 2 (2) of this 2001 Act. + }
' { + SECTION 22. + } { + An environmental cleanup district
established under sections 1 to 22 of this 2001 Act may be
dissolved in the manner provided in ORS 198.920 to 198.955. + }
' { + SECTION 23. + } { + Section 24 of this 2001 Act is
added to and made a part of ORS chapter 307. + }
' { + SECTION 24. + } { + (1) Taxable real and personal
property located in an environmental cleanup district as of the
assessment date for the tax year shall be assessed under this
section.
' (2) The specially assessed value of property assessed under
this section shall equal 40 percent of the real market value of
the property for the tax year beginning July 1, 2002, increased
by three percent for the current tax year and for each
intervening tax year after the tax year beginning July 1, 2002.
' (3)(a) For the first tax year for which property is subject
to assessment under this section, the maximum assessed value of
the property shall equal the specially assessed value of the
property under subsection (2) of this section multiplied by the
ratio of the average maximum assessed value to average real
market value of property of the same class in the county in which
the property assessed under this section is located.
' (b) For each tax year after the first tax year in which
property is subject to special assessment under this section, the
maximum assessed value of the property shall equal 103 percent of
the maximum assessed value of the property for the current tax
year.
' (4) The assessed value of property assessed under this
section shall equal the lesser of:
' (a) The specially assessed value of the property as
determined under subsection (2) of this section; or
' (b) The maximum assessed value of the property as determined
under subsection (3) of this section.
' (5) This section does not apply:
' (a) To residential property in an environmental cleanup
district or to commercial property that consists of multiunit
residential rental property; or
' (b) In property tax years that begin in a calendar year in
which no privilege tax is being imposed under sections 8 to 19 of
this 2001 Act. + }
' { + SECTION 25. + } ORS 198.010 is amended to read:
' 198.010. As used in this chapter, except as otherwise
specifically provided, 'district' means any one of the following:
' (1) A people's utility district organized under ORS chapter
261.
' (2) A domestic water supply district organized under ORS
chapter 264.
' (3) A cemetery maintenance district organized under ORS
chapter 265.
' (4) A park and recreation district organized under ORS
chapter 266.
' (5) A mass transit district organized under ORS 267.010 to
267.390.
' (6) A metropolitan service district organized under ORS
chapter 268.
' (7) A special road district organized under ORS 371.305 to
371.360.
' (8) A road assessment district organized under ORS 371.405 to
371.535.
' (9) A highway lighting district organized under ORS chapter
372.
' (10) A health district organized under ORS 440.305 to
440.410.
' (11) A sanitary district organized under ORS 450.005 to
450.245.
' (12) A sanitary authority, water authority or joint water and
sanitary authority organized under ORS 450.600 to 450.989.
' (13) A vector control district organized under ORS 452.020 to
452.170.
' (14) A rural fire protection district organized under ORS
chapter 478.
' (15) An irrigation district organized under ORS chapter 545.
' (16) A drainage district organized under ORS chapter 547.
' (17) A water improvement district organized under ORS chapter
552.
' (18) A water control district organized under ORS chapter
553.
' (19) A weather modification district organized under ORS
558.200 to 558.440.
' (20) A port organized under ORS 777.005 to 777.725 and
777.915 to 777.953.
' (21) A geothermal heating district organized under ORS
chapter 523.
' (22) A transportation district organized under ORS 267.510 to
267.650.
' (23) A library district organized under ORS 357.216 to
357.286.
' (24) A 9-1-1 communications district organized under ORS
401.807 to 401.857.
' { + (25) An environmental cleanup district established
under sections 1 to 22 of this 2001 Act. + }
' { + SECTION 26. + } ORS 294.316 is amended to read:
' 294.316. The provisions of ORS 294.305 to 294.565 do not
apply to the following municipal corporations:
' (1) Drainage districts organized under ORS chapter 547;
' (2) District improvement companies organized under ORS
chapter 554;
' (3) Highway lighting districts organized under ORS chapter
372;
' (4) Irrigation districts organized under ORS chapter 545;
' (5) Road districts organized under ORS chapter 371;
' (6) Soil and water conservation districts organized under ORS
chapter 568 that will not levy an ad valorem tax during the
ensuing year;
' (7) Municipal public utilities operating under separate
boards or commissions, authorized under ORS chapter 225 and city
charters, and people's utility districts organized under ORS
chapter 261, both operating without ad valorem tax support during
the ensuing year;
' (8) Housing authorities organized under ORS 446.515 to
446.547 and ORS chapter 456 that are not carrying out urban
renewal activities using a division of ad valorem taxes under ORS
457.440 during the ensuing year;
' (9) Water control districts organized under ORS chapter 553
that will not levy an ad valorem tax during the ensuing year;
' (10) Hospital financing authorities organized under ORS
441.525 to 441.595;
' (11) Export trading corporations organized under ORS 777.755
to 777.800; { - and - }
' (12) Diking districts organized under ORS chapter 551
{ - . - } { + ; and
' (13) Environmental cleanup districts established under
sections 1 to 22 of this 2001 Act. + }
' { + SECTION 27. + } ORS 305.620 is amended to read:
' 305.620. (1) Any state agency or department may enter into
agreements with any political subdivision of this state for the
collection, enforcement, administration and distribution of local
taxes of the political subdivision imposed upon or measured by
gross or net income, wages or net earnings from self-employment
{ - or - } { + , + } local general sales and use taxes { + or
gross receipts + }.
' (2) The department or agency shall prescribe the rules by
which the agreements entered into under subsection (1) of this
section are administered.
' (3) The department or agency shall prescribe the rules by
which the taxes described by subsection (1) of this section are
administered, collected, enforced and distributed.
' (4) A political subdivision may appear as an intervenor at
any conference held by the Department of Revenue or conference,
hearing or proceeding held by another department or agency in
connection with a local tax administered by the department or
agency. The political subdivision may be represented by its own
counsel. The department or agency shall adopt rules governing the
procedures to be followed by the political subdivision in making
an appearance.
' (5) Costs incurred by the department or agency in the
administration, enforcement, collection and distribution of taxes
under the agreements entered into under subsection (1) of this
section shall be first deducted from the taxes collected before
distribution is made to the political subdivision which is a
party to the agreement.
' (6) The Oregon Tax Court shall have exclusive jurisdiction to
review determinations of the Department of Revenue or orders of
another department or agency relating to the collection,
enforcement, administration and distribution of local taxes under
agreements entered into under subsection (1) of this section.
' (7) A proceeding for refund or to set aside additional taxes
or taxes assessed when no return was filed may be initiated
before the state agency or department or as provided in ORS
305.514 (1)(g).
' (8) An appeal from a determination or an order may be taken
by the taxpayer or by the political subdivision whose taxes are
in issue, by filing an original and two certified copies of a
complaint with the clerk of the Oregon Tax Court at its principal
office at the state capital, Salem, Oregon, within 60 days after
the notice of the determination of the Department of Revenue or
the order of the department or agency is sent to the taxpayer or
the political subdivision. The filing of the complaint in the
Oregon Tax Court shall constitute perfection of the appeal.
Service of the taxpayer's complaint shall be accomplished by the
clerk of the tax court by filing a certified copy of the
complaint with the administrative head of the department or
agency and a certified copy with the political subdivision.
Service of the political subdivision's complaint shall be
accomplished by the clerk of the tax court by filing a certified
copy of the complaint with the administrative head of the
department or agency and mailing a certified copy of the
complaint to the taxpayer. The complaint of a taxpayer shall be
entitled in the name of the person filing as plaintiff and the
department or agency as defendant. The complaint of a political
subdivision shall be entitled in the name of the political
subdivision as plaintiff and the taxpayer and the department or
agency as defendants. A copy of the order of the department or
agency shall be attached to the original complaint. All
procedures shall be in accordance with ORS 305.405 to 305.494.
' { + SECTION 28. + } ORS 327.013 is amended to read:
' 327.013. The State School Fund distributions shall be
computed as follows:
' (1) General Purpose Grant = Funding Percentage X Target Grant
X District extended ADMw.
' (2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
' (3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
' (4) Statewide Target per ADMw Grant = $4,500.
' (5) Teacher Experience Factor = $25 X {District average
teacher experience - statewide average teacher experience}. '
Average teacher experience' means the average, in years, of
teaching experience of certified teachers as reported to the
Department of Education.
' (6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
' (7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
' (A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
' (B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
' (C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
' (D) -0.1 for each student in average daily membership
enrolled in an elementary district operating kindergarten through
grade 6 or kindergarten through grade 8 or in an area of a
unified school district where the district is only responsible
for educating students in kindergarten through grade 8.
' (E) 0.25 times the sum of the following:
' (i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
' (ii) The number of children in foster homes in the district
as determined by the report of the Department of Human Services
to the federal Department of Education, 'Annual Statistical
Report on Children in Foster Homes and Children in Families
Receiving AFDC Payments in Excess of the Poverty Income Level,'
or its successor, for October 31 of the year prior to the year of
distribution; and
' (iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
' (F)(i) An additional amount as determined by ORS 327.077
(1997 Edition) shall be added to the ADMw for each remote small
school in the district.
' (ii) An additional amount as determined by section 23,
chapter 1066, Oregon Laws 1999, for each small high school in the
district that is equal to the small high school additional
weighting amount.
' (G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
' (b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
' (8) Transportation Grant = 70 percent of Approved
Transportation Costs.
' (9) Local Revenues are the total of the following:
' (a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
' (b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
' (c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
' (d) The amount of revenue received by the district from the
county school fund;
' (e) The amount of revenue received by the district from the
25 percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
' (f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
' (g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
' (h) Moneys received in lieu of property taxes;
' (i) Federal funds received without specific application by
the school district and which are not deemed under federal law to
be nonsupplantable; { - and - }
' (j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law { + ; and
' (k) Any amount of environmental cleanup district privilege
tax revenue received by the district pursuant to sections 1 to 22
of this 2001 Act, except for any amount of privilege tax revenue
received in lieu of local option taxes that are excluded from
Local Revenues under subsection (10)(b) of this section + }.
' (10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
' (a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
' (b) If a school district imposes local option taxes pursuant
to ORS 280.040 to 280.145, an amount equal to the lesser of:
' (A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145 { + or received from an environmental cleanup district
privilege tax under sections 1 to 22 of this 2001 Act in lieu of
the local option tax + };
' (B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
' (C) $500 per district extended ADMw.
' (11)(a) Facility Grant = 8 percent of total construction
costs of new school buildings.
' (b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
' (c) As used in this subsection:
' (A) 'New school building' includes new school buildings,
adding structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
' (B) 'Construction costs' does not include costs for land
acquisition.
' { + SECTION 29. + } ORS 327.013, as amended by section 30,
chapter 1066, Oregon Laws 1999, is amended to read:
' 327.013. The State School Fund distributions shall be
computed as follows:
' (1) General Purpose Grant = Funding Percentage X Target Grant
X District extended ADMw.
' (2) The funding percentage shall be calculated by the
Superintendent of Public Instruction to distribute as nearly as
practicable the total sum available for distribution of money.
' (3) Target Grant = Statewide Target per ADMw Grant + Teacher
Experience Factor.
' (4) Statewide Target per ADMw Grant = $4,500.
' (5) Teacher Experience Factor = $25 X {District average
teacher experience - statewide average teacher experience}. '
Average teacher experience' means the average, in years, of
teaching experience of certified teachers as reported to the
Department of Education.
' (6) District extended ADMw = ADMw or ADMw of the prior year,
whichever is greater.
' (7)(a) Weighted average daily membership or ADMw = average
daily membership + an additional amount computed as follows:
' (A) 1.0 for each student in average daily membership eligible
for special education as a child with disabilities under ORS
343.035, applicable to not to exceed 11 percent of the district's
ADM without review and approval of the Department of Education.
Children with disabilities eligible for special education in
adult local correctional facilities as defined in ORS 169.005 or
adult regional correctional facilities as defined in ORS 169.620
shall not be included in the calculation of the 11 percent.
' (B) 0.5 for each student in average daily membership eligible
for and enrolled in an English as a Second Language program under
ORS 336.079.
' (C) 0.2 for each student in average daily membership enrolled
in a union high school district or in an area of a unified school
district where the district is only responsible for educating
students in grades 9 through 12 in that area.
' (D) -0.1 for each student in average daily membership
enrolled in an elementary district operating kindergarten through
grade 6 or kindergarten through grade 8 or in an area of a
unified school district where the district is only responsible
for educating students in kindergarten through grade 8.
' (E) 0.25 times the sum of the following:
' (i) The number of children 5 to 17 years of age in poverty
families in the district, as determined by the Department of
Education from a report of the federal Department of Education,
as adjusted by the school district's proportion of students in
the county receiving free or reduced price lunches under the
United States Department of Agriculture's current Income
Eligibility Guidelines if the number is higher than the number
determined from census data and only if the school district had
an average daily membership of 2,500 or less for the 1995-1996
school year, and as further adjusted by the number of students in
average daily membership in June of the year of distribution
divided by number of students in average daily membership in the
district, or its predecessors, in June 1990;
' (ii) The number of children in foster homes in the district
as determined by the report of the Department of Human Services
to the federal Department of Education, 'Annual Statistical
Report on Children in Foster Homes and Children in Families
Receiving AFDC Payments in Excess of the Poverty Income Level,'
or its successor, for October 31 of the year prior to the year of
distribution; and
' (iii) The number of children in the district in
state-recognized facilities for neglected and delinquent
children, based on information from the Department of Human
Services for October 31 of the year prior to the year of
distribution.
' (F) An additional amount as determined by ORS 327.077 shall
be added to the ADMw for each remote small elementary school and
for each small high school in the district.
' (G) All numbers of children used for the computation in this
section must reflect any district consolidations that have
occurred since the numbers were compiled.
' (b) The total additional weight that shall be assigned to any
student in average daily membership in a district, exclusive of
students described in paragraph (a)(E) and (F) of this subsection
shall not exceed 2.0.
' (8) Transportation Grant = 70 percent of Approved
Transportation Costs.
' (9) Local Revenues are the total of the following:
' (a) The amount of revenue offset against local property taxes
as determined by the Department of Revenue under ORS 311.175
(3)(a)(A);
' (b) The amount of property taxes actually received by the
district including penalties and interest on taxes;
' (c) The amount of revenue received by the district from the
Common School Fund under ORS 327.403 to 327.415;
' (d) The amount of revenue received by the district from the
county school fund;
' (e) The amount of revenue received by the district from the
25 percent of federal forest reserve revenues required to be
distributed to schools by ORS 294.060 (1);
' (f) The amount of revenue received by the district from state
managed forestlands under ORS 530.115 (1)(b) and (c);
' (g) The amount of revenue received under ORS 334.400 by a
school district in an education service district that provides
equalization under ORS 334.400;
' (h) Moneys received in lieu of property taxes;
' (i) Federal funds received without specific application by
the school district and which are not deemed under federal law to
be nonsupplantable; { - and - }
' (j) Any positive amount obtained by subtracting the operating
property taxes actually imposed by the district, based on the
rate certified pursuant to ORS 310.060, from the amount that
would have been imposed by the district if the district had
certified the maximum rate of operating property taxes allowed by
law { + ; and
' (k) Any amount of environmental cleanup district privilege
tax revenue received by the district pursuant to sections 1 to 22
of this 2001 Act, except for any amount of privilege tax revenue
received in lieu of local option taxes that are excluded from
Local Revenues under subsection (10)(b) of this section + }.
' (10) Notwithstanding subsection (9) of this section, Local
Revenues do not include:
' (a) The amount of revenue actually received by the district,
including penalties and interest on taxes, that is used for
payment of bonds issued to finance or refinance an unfunded
obligation for prior service costs under a contract of
integration pursuant to ORS 238.685 (2)(a); and
' (b) If a school district imposes local option taxes pursuant
to ORS 280.040 to 280.145, an amount equal to the lesser of:
' (A) The amount of revenue actually received by the district
from local option taxes imposed pursuant to ORS 280.040 to
280.145 { + or received from an environmental cleanup district
privilege tax under sections 1 to 22 of this 2001 Act in lieu of
the local option tax + };
' (B) Ten percent of the combined total for the school district
of the general purpose grant, the transportation grant and the
facility grant of the district; or
' (C) $500 per district extended ADMw.
' (11)(a) Facility Grant = 8 percent of total construction
costs of new school buildings.
' (b) A school district shall receive a Facility Grant in the
distribution year that a new school building is first used.
' (c) As used in this subsection:
' (A) 'New school building' includes new school buildings,
adding structures onto existing school buildings and adding
premanufactured structures to a school district if those
buildings or structures are to be used for instructing students.
' (B) 'Construction costs' does not include costs for land
acquisition.'.
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