71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2864
 
                           A-Engrossed
 
                         House Bill 3127
                   Ordered by the House May 29
             Including House Amendments dated May 29
 
Sponsored by Representatives WIRTH, SHETTERLY; Representatives
  BROWN, HILL, KING, KROPF, KRUMMEL, WILLIAMS (at the request of
  Wayne Giesy and the Oregon Short Line Railroad Association)
 
 
                             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.
 
    { - Exempts newly constructed, installed or acquired railroad
or electric rail track improvements or equipment used to maintain
or repair rail lines from property taxation for up to 10
years. - }
    { - Permanently exempts newly constructed or installed rail
line crossing improvements from property taxation. Permanently
exempts railroad, car or electric rail improvements or tangible
personal property that is at least ___ percent funded through
federal, state or local government sources. - }
    { - Applies to tax years beginning on or after July 1,
2002. - }
   { +  Prohibits increase in real market value of railroad
property by any increase in value caused by newly constructed or
rehabilitated rail line improvements or rail crossing
improvements or newly acquired equipment used primarily to
maintain or repair rail lines. Applies for five tax years.
Applies to property owned or leased by Class II or Class III
railroad or by Class I railroad if used for commuter rail
service.
  Applies to property placed in service on or after assessment
date in 2002 and before July 1, 2012. + }
 
                        A BILL FOR AN ACT
Relating to taxation.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 and 3 of this 2001 Act are added to
and made a part of ORS 308.505 to 308.665. + }
  SECTION 2.  { + (1) The real market value of railroad property
may not be increased by any increase in value caused by any newly
constructed or rehabilitated rail line improvements or rail
crossing improvements or newly acquired equipment used primarily
for the maintenance or repair of rail lines, for the tax year in
which the newly constructed, rehabilitated or acquired property
is first placed in service, as of the assessment date, and the
four immediately succeeding tax years.
 
  (2) Following the fifth tax year, the newly constructed or
rehabilitated rail line or rail crossing improvements or newly
acquired equipment shall be disqualified from partial exemption
under this section.
  (3) Subsection (1) of this section applies to railroad property
that is owned or leased by a Class II or Class III railroad, or
property that is owned or leased by a Class I railroad and used,
in whole or part, for commuter rail service.
  (4) As used in this section, 'commuter rail service' means rail
service:
  (a) Designed to carry passengers no more than 50 miles between
outlying suburban areas and central locations within an urban
area; and
  (b) Primarily, but not exclusively, used during morning and
evening periods for travel to and from work. + }
  SECTION 3.  { + (1) A railroad company seeking to claim a
partial exemption under section 2 of this 2001 Act shall file
with the Department of Revenue, on or before March 15 of each
year, in such form as the department may prescribe, a statement
of all property described in section 2 of this 2001 Act that was
newly constructed, rehabilitated or acquired during the preceding
calendar year and that was in service as of the assessment date.
  (2) The department shall review the statement and may
physically appraise the property listed on the statement. If the
property meets the requirements of section 2 of this 2001 Act,
the department may not include any value for the property listed
on the statement in the real market value of all property of the
company otherwise determined under ORS 308.505 to 308.665.
  (3) Subsection (2) of this section applies to the tax year for
which the statement is filed under this section and to the four
immediately succeeding tax years. + }
  SECTION 4.  { + Sections 2 and 3 of this 2001 Act apply to
improvements or equipment newly constructed, rehabilitated or
acquired on or after July 1, 2002, and before July 1, 2012. + }
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