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 2263-1
House Bill 3277
Sponsored by Representative STARR; Representatives DEVLIN, HILL,
KRUMMEL, WILSON, Senators HARTUNG, METSGER
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 as
introduced.
Eliminates offset from State School Fund grant for property
taxes of school district that are imposed on new construction or
other exceptions to general rule determining assessed value of
property. Eliminates offset for five tax years following
determination of assessed value under exceptions.
If exception value also constitutes increment value in urban
renewal area of certain urban renewal plans, specifies that taxes
imposed by school districts on exception value be distributed to
school district instead of urban renewal district.
Requires moneys distributed to school district under Act to be
used for capital projects.
Applies to tax and fiscal years beginning on or after July 1,
2003.
Refers Act to people for their approval or rejection at special
election held on same date as next biennial primary election.
A BILL FOR AN ACT
Relating to finance; creating new provisions; amending ORS
327.013, 457.010 and 457.440; and providing that this Act shall
be referred to the people for their approval or rejection.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 308. + }
SECTION 2. { + (1) As used in this section:
(a) 'Exception value' means a positive amount equal to the
difference, in a tax year in which the assessed value of property
is determined under ORS 308.149 to 308.166, between:
(A) The assessed value the property would have had under ORS
308.146 (2) or under any partial exemption or special assessment
provision applicable to the property, or the assessed value that
would have been applicable to the property but for the property's
disqualification; and
(B) The assessed value of the property under ORS 308.149 to
308.166.
(b) 'School district' means a common or union high school
district.
(2) For each tax year, the county assessor shall determine the
amount of operating taxes of a school district that are imposed
on the total exception value of the district.
(3) For purposes of determining the amount described in
subsection (2) of this section, the assessor shall reduce the
amount of operating taxes extended on exception value by the same
percentage by which the district's operating taxes are reduced as
the result of compression under ORS 310.150.
(4) For each school district, the assessor shall report to the
Department of Revenue the amount of school district operating
taxes that are imposed on the exception value of the district.
(5) The Department of Revenue shall compile the total amount of
operating taxes of each school district that are reported to the
department by the assessor under subsection (4) of this section
and shall report the total amount for each school district to the
Department of Education. + }
SECTION 3. ORS 457.010 is amended to read:
457.010. As used in this chapter, unless the context requires
otherwise:
(1) 'Blighted areas' means areas that, by reason of
deterioration, faulty planning, inadequate or improper
facilities, deleterious land use or the existence of unsafe
structures, or any combination of these factors, are detrimental
to the safety, health or welfare of the community. A blighted
area is characterized by the existence of one or more of the
following conditions:
(a) The existence of buildings and structures, used or intended
to be used for living, commercial, industrial or other purposes,
or any combination of those uses, that are unfit or unsafe to
occupy for those purposes because of any one or a combination of
the following conditions:
(A) Defective design and quality of physical construction;
(B) Faulty interior arrangement and exterior spacing;
(C) Overcrowding and a high density of population;
(D) Inadequate provision for ventilation, light, sanitation,
open spaces and recreation facilities; or
(E) Obsolescence, deterioration, dilapidation, mixed character
or shifting of uses;
(b) An economic dislocation, deterioration or disuse of
property resulting from faulty planning;
(c) The division or subdivision and sale of property or lots of
irregular form and shape and inadequate size or dimensions for
property usefulness and development;
(d) The laying out of property or lots in disregard of
contours, drainage and other physical characteristics of the
terrain and surrounding conditions;
(e) The existence of inadequate streets and other rights of
way, open spaces and utilities;
(f) The existence of property or lots or other areas that are
subject to inundation by water;
(g) A prevalence of depreciated values, impaired investments
and social and economic maladjustments to such an extent that the
capacity to pay taxes is reduced and tax receipts are inadequate
for the cost of public services rendered;
(h) A growing or total lack of proper utilization of areas,
resulting in a stagnant and unproductive condition of land
potentially useful and valuable for contributing to the public
health, safety and welfare; or
(i) A loss of population and reduction of proper utilization of
the area, resulting in its further deterioration and added costs
to the taxpayer for the creation of new public facilities and
services elsewhere.
(2) 'Certified statement' means the statement prepared and
filed pursuant to ORS 457.430 or an amendment to the certified
statement prepared and filed pursuant to ORS 457.430.
(3) 'City' means any incorporated city.
(4) 'Consolidated billing tax rate' means the total of all
district ad valorem property tax rates used to extend taxes after
any adjustments to reflect tax offsets under ORS 310.105 and
310.108, except that 'consolidated billing tax rate' does not
include any urban renewal special levy rate under ORS 457.435.
{ + (5) 'Exception value' has the meaning given that term in
section 2 of this 2001 Act. + }
{ - (5)(a) - } { + (6)(a) + } 'Existing urban renewal plan'
means an urban renewal plan that provides for a division of ad
valorem property taxes as described under ORS 457.420 to 457.460
adopted by ordinance before December 6, 1996, that:
(A) Except for an amendment made on account of ORS 457.190 (3)
and subject to paragraph (b) of this subsection, is not changed
by substantial amendment, as described in ORS 457.085 (2)(i)(A)
or (B), on or after December 6, 1996; and
(B) For tax years beginning on or after July 1, 1998, includes
the limit on indebtedness as described in ORS 457.190 (3).
(b) If, on or after July 1, 1998, the maximum limit on
indebtedness (adopted by ordinance before July 1, 1998, pursuant
to ORS 457.190) of an existing urban renewal plan is changed by
substantial amendment, then 'indebtedness issued or incurred to
carry out the existing urban renewal plan' for purposes of ORS
457.435 includes only the indebtedness within the indebtedness
limit adopted by ordinance under ORS 457.190 (3)(c) before July
1, 1998.
{ - (6) - } { + (7) + } 'Fiscal year' means the fiscal year
commencing on July 1 and closing on June 30.
{ - (7) - } { + (8) + } 'Governing body of a municipality'
means, in the case of a city, the common council or other
legislative body thereof, and, in the case of a county, the board
of county commissioners or other legislative body thereof.
{ - (8) - } { + (9) + } 'Housing authority' or 'authority'
means any housing authority established pursuant to the Housing
Authorities Law.
{ - (9) - } { + (10) + } 'Increment' means that part of the
assessed value of a taxing district attributable to any increase
in the assessed value of the property located in an urban renewal
area, or portion thereof, over the assessed value specified in
the certified statement.
{ - (10) - } { + (11) + } 'Maximum indebtedness' means the
amount of the principal of indebtedness included in a plan
pursuant to ORS 457.190 and does not include indebtedness
incurred to refund or refinance existing indebtedness.
{ - (11) - } { + (12) + } 'Municipality' means any county
or any city in this state. 'The municipality' means the
municipality for which a particular urban renewal agency is
created.
{ + (13) 'Operating taxes' has the meaning given that term in
ORS 310.055.
(14) 'School district' means a common or union high school
district. + }
{ - (12) - } { + (15) + } 'Taxing body' or 'taxing
district' means the state, city, county or any other taxing unit
which has the power to levy a tax.
{ - (13) - } { + (16) + } 'Urban renewal agency' or
'agency' means an urban renewal agency created under ORS 457.035
and 457.045.
{ - (14) - } { + (17) + } 'Urban renewal area' means a
blighted area included in an urban renewal plan or an area
included in an urban renewal plan under ORS 457.160.
{ - (15) - } { + (18) + } 'Urban renewal project' or
'project' means any work or undertaking carried out under ORS
457.170 in an urban renewal area.
{ - (16) - } { + (19) + } 'Urban renewal plan' or 'plan'
means a plan, as it exists or is changed or modified from time to
time for one or more urban renewal areas, as provided in ORS
457.085, 457.095, 457.105, 457.115, 457.120, 457.125, 457.135 and
457.220.
SECTION 4. { + Section 5 of this 2001 Act is added to and made
a part of ORS chapter 457. + }
SECTION 5. { + (1) For each tax year, the county assessor of a
county in which an urban renewal area described in subsection (2)
of this section is located and in which a school district is
located shall determine that portion of the increment of each
code area in the urban renewal area that also constitutes
exception value.
(2) Subsection (1) of this section applies to any urban renewal
area that was established by:
(a) An existing urban renewal plan; or
(b) An urban renewal plan adopted or substantially amended on
or after the effective date of this 2001 Act. + }
SECTION 6. ORS 457.440 is amended to read:
457.440. During the period specified under ORS 457.450:
(1) The county assessor shall determine the amount of funds to
be raised each year for urban renewal within the county levied by
taxing districts in accordance with section 1c, Article IX of the
Oregon Constitution, and ORS 457.420 to 457.460.
(2) Not later than July 15 of each tax year, each urban renewal
agency shall determine and file with the county assessor a notice
stating the amount of funds to be raised for each urban renewal
area as follows:
(a) If the municipality that activated the urban renewal agency
has chosen Option One as provided in ORS 457.435 (2)(a), the
notice shall state that the maximum amount of funds that may be
raised by dividing the taxes under section 1c, Article IX of the
Oregon Constitution, shall be raised for the agency.
(b) If the municipality that activated the urban renewal agency
has chosen Option Two as provided in ORS 457.435 (2)(b), the
notice shall state the amount of funds to be raised by the
special levy.
(c) If the municipality that activated the urban renewal agency
has chosen Option Three as provided in ORS 457.435 (2)(c), the
notice shall state the amount of funds to be raised by special
levy in addition to the amount to be raised by dividing the taxes
as stated in the ordinance adopted under ORS 457.435 (1).
(d) If the plan is not an existing plan, the notice shall state
that the maximum amount of funds that may be raised by dividing
the taxes under section 1c, Article IX of the Oregon
Constitution, shall be raised for the agency.
(3) If a municipality has chosen Option Three pursuant to ORS
457.435, the maximum amount of funds that may be raised for an
urban renewal agency by dividing the taxes as provided in section
1c, Article IX of the Oregon Constitution, may be limited by the
municipality in which the urban renewal agency is located. The
decision of the municipality to limit the amount of funds to be
included in the notice filed under subsection (2) of this section
shall be reflected in the certified statement filed by the urban
renewal agency with the county assessor.
(4) Not later than September 25 of each tax year, the assessor
of any county in which a joint district is located shall provide,
to the assessor of each other county in which the joint district
is located, the assessed values of the property in the joint
district that is located within the county, including the
certified statement value and the increment for each code area
containing any urban renewal area located within the joint
district, and a copy of the notice filed by the urban renewal
agency for the area located within the joint district under
subsection (2) of this section.
(5) { + (a) Except as provided in paragraph (b) of this
subsection, + }the maximum amount of funds that may be raised
for an urban renewal plan by dividing the taxes as provided in
section 1c, Article IX of the Oregon Constitution, shall be
computed by the county assessor as follows:
{ - (a) - } { + (A) + } The county assessor shall compute
the total consolidated billing tax rate for each code area in
which an urban renewal area of the plan is located.
{ - (b) - } { + (B) + } The assessor shall determine the
amount of taxes that would be produced by extending the tax rate
computed under
{ - paragraph (a) - } { + subparagraph (A) + } of this
{ - subsection - } { + paragraph + } against the increment of
each code area.
{ - (c) - } { + (C) + } The total amount determined for all
code areas containing urban renewal areas included within the
urban renewal plan is the maximum amount of funds to be raised
for the urban renewal plan by dividing the taxes.
{ + (b) If the urban renewal plan is one described in section
5 of this 2001 Act, the maximum amount of funds that may be
raised for the urban renewal plan by dividing the taxes as
provided in section 1c, Article IX of the Oregon Constitution,
shall be computed by the county assessor as follows:
(A) The county assessor shall compute the total consolidated
billing tax rate for each code area in which an urban renewal
area of the plan is located.
(B) The assessor shall determine the operating tax rate of the
school district.
(C) The assessor shall determine the amount of taxes that would
be produced by extending the tax rate computed under subparagraph
(A) of this paragraph against the increment of each code area.
(D) The assessor shall determine the amount of school district
taxes that would be produced by extending the school district
operating tax rate on the exception value in each code area.
(E) The amount determined in subparagraph (D) of this paragraph
for each code area shall be reduced by the school district's
compression percentage, as determined under section 2 (3) of this
2001 Act.
(F) The total amount determined for all code areas containing
urban renewal areas included within the urban renewal plan, minus
the total amount of school district taxes determined under
subparagraph (E) of this paragraph for all code areas containing
an urban renewal area included within the urban renewal plan, is
the maximum amount of funds to be raised for the urban renewal
plan by dividing the taxes. + }
(6)(a) The maximum amount of funds that may be raised for an
urban renewal agency as determined under subsection (5) of this
section, or the maximum amount, as determined under subsection
(2) of this section, shall be certified by the county assessor to
the tax collector. The tax collector shall include the amount so
certified in the percentage schedule of the ratio of taxes on
property prepared under ORS 311.390 and filed with the county
treasurer. Notwithstanding ORS 311.395 (5), the county treasurer
shall credit the amount to the urban renewal agency and shall
distribute its percentage amount to the urban renewal agency as
determined by the schedule at the times other distributions are
made under ORS 311.395 (6).
(b) The county assessor shall notify the urban renewal agency
of the amounts received under subsection (5) of this section or
amounts received pursuant to the notice provided in subsection
(2) of this section for each urban renewal plan area. Any amounts
received by the urban renewal agency under paragraph (a) of this
subsection shall be attributed to the urban renewal plan in which
the urban renewal area is included, shall be paid into a special
fund of the urban renewal agency for the urban renewal plan and
shall be used to pay the principal and interest on any
indebtedness issued or incurred by the urban renewal agency to
finance or refinance the urban renewal plan.
(7) Unless and until the total assessed value of the taxable
property in an urban renewal area exceeds the total assessed
value specified in the certified statement, all of the ad valorem
taxes levied and collected upon the taxable property in the urban
renewal area shall be paid into the funds of the respective
taxing districts.
(8) The agency may incur indebtedness, including obtaining
loans and advances in carrying out the urban renewal plan, and
the portion of taxes received under this section may be
irrevocably pledged for the payment of principal of and interest
on the indebtedness.
(9) The Department of Revenue shall by rule establish
procedures for giving notice of amounts to be raised for urban
renewal agencies and for determination of amounts to be raised
and distributed to urban renewal agencies.
(10) The notice required under this section shall serve as the
notice required under ORS 310.060 for the special levy described
under ORS 457.435.
{ + (11) The amount determined under subsection (5)(b)(E) of
this section shall be reported to the Department of Revenue,
along with the name of the school district whose operating tax
rate was used to calculate the amount. + }
SECTION 7. 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.
(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) The amount reported by the Department of Revenue for
the district under section 2 (5) of this 2001 Act for the fiscal
year for which the report is made and for the four succeeding
fiscal years; and + }
{ - (b) - } { + (c) + } 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;
(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 8. 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.
(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) The amount reported by the Department of Revenue for
the district under section 2 (5) of this 2001 Act for the fiscal
year for which the report is made and for the four succeeding
fiscal years; and + }
{ - (b) - } { + (c) + } 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;
(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 9. { + Sections 10 and 11 of this 2001 Act are added
to and made a part of ORS chapter 328. + }
SECTION 10. { + (1) That portion of property tax revenues that
a school district receives that equals the amount reported to the
Department of Education under section 2 of this 2001 Act, for the
fiscal year for which the report is being made and for the four
succeeding fiscal years, is dedicated to and may be spent only
for capital projects, as defined in ORS 280.060.
(2) Moneys described in subsection (1) of this section may not
be loaned, borrowed or pledged as security for any purpose other
than for the completion of capital projects. + }
SECTION 11. { + (1) Each school district shall establish an
account to be known as the exception value revenues account.
(2) Property tax revenues described in section 10 of this 2001
Act shall be deposited in the exception value revenues account.
(3) The school district shall provide an annual accounting for
moneys deposited in the exception value revenues account, showing
the total amount of exception value revenues collected and the
capital projects that were funded. + }
SECTION 12. { + (1) Sections 2 and 5 of this 2001 Act and the
amendments to ORS 457.010 and 457.440 by sections 3 and 6 of this
2001 Act apply to property tax years beginning on or after July
1, 2003.
(2) The amendments to ORS 327.013 by sections 7 and 8 of this
2001 Act apply to State School Fund distributions occurring in
fiscal years beginning on or after July 1, 2003. + }
SECTION 13. { + This 2001 Act shall be submitted to the people
for their approval or rejection at a special election held
throughout this state on the same date as the next biennial
primary election. + }
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