71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 177
Sponsored by Senator HARPER
CHAPTER ................
AN ACT
Relating to taxation; creating new provisions; amending ORS
308.225, 310.061, 310.100, 310.147 and 328.265; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 5 of this 2001 Act are added to
and made a part of ORS chapter 328. + }
SECTION 2. { + (1) The district board of a school district may
divide the district into tax zones for the purpose of imposing
and levying ad valorem property taxes at different rates and
amounts on the assessed value of all taxable property in each
zone if the school district:
(a) Supplies a portion of kindergarten through grade 12
education in certain areas of the school district; and
(b) Supplies all of kindergarten through grade 12 education in
the remainder of the school district.
(2) The establishment and boundaries of tax zones within a
district must be based upon and reflect qualitative differences
in the levels of service provided by the district.
(3) When a district board decides to divide the district into
zones under subsection (1) of this section, the board shall
conduct a public hearing on the formation of the proposed zones.
The hearing shall be held after notice to the public is published
as provided in section 3 of this 2001 Act. + }
SECTION 3. { + (1) The district board of a school district
seeking to establish tax zones under sections 2 to 5 of this 2001
Act shall cause a notice of a public hearing relating to the
formation of the tax zones to be published once a week for two
successive weeks in the newspaper in general circulation in the
district that, in the judgment of the district board, will afford
the best notice to the residents of the district.
(2) The notice published under this section shall set forth:
(a) The resolve of the district board to divide the district
into zones.
(b) The boundaries of the proposed zones.
(c) The estimated percentage of the total amount of ad valorem
taxes of the district that will be imposed in each zone.
(d) The date, hour and place of the hearing.
(e) That all interested persons may attend and shall be given a
reasonable opportunity to be heard. + }
SECTION 4. { + (1) Following the notice required under section
3 of this 2001 Act, the district board of a school district
seeking to establish tax zones shall conduct a public hearing at
Enrolled Senate Bill 177 (SB 177-A) Page 1
which district residents and property owners may testify about
the proposed zones.
(2) Following the hearing, if the district board decides to
proceed, the district board shall adopt a resolution establishing
the zones, zone percentages and zone boundaries. + }
SECTION 5. { + (1) If a school district is divided into tax
zones under sections 2 to 5 of this 2001 Act, the district board
shall determine, make and declare each item of ad valorem
property tax, as set forth in ORS 310.060 (2), for each zone
established in the district when the district board adopts its
budget for any fiscal year.
(2) The operating tax rate for each tax zone of the district
may not exceed the lesser of the statutory or permanent rate
limit for operating taxes of the district established under ORS
310.200 to 310.242 or section 11 (3), Article XI of the Oregon
Constitution. + }
SECTION 6. ORS 328.265 is amended to read:
328.265. (1) The district school board of each school district
having an outstanding bond issue shall file annually with the
county treasurer or county fiscal officer a copy of the school
district budget and tax levy.
(2) { + (a) + } If the tax required by ORS 328.260 is not
levied by the district school board, the county treasurer shall
certify the amount necessary to the governing body of the county
which shall then levy a tax on all taxable property in the
appropriate school district sufficient to raise the required
amount.
{ + (b) If the school district has established tax zones
pursuant to sections 2 to 5 of this 2001 Act, a levy imposed
under this subsection shall be apportioned among the tax zones of
the school district consistently, with the percentages set forth
in the resolution adopted under section 4 of this 2001 Act. + }
(3) The county assessor shall extend the tax so levied upon the
county tax rolls for such school district. The tax collector
shall collect the tax and pay the sums collected into the county
treasury to the credit of the fund established by ORS 328.260.
SECTION 7. ORS 310.061 is amended to read:
310.061. (1) If a school district certifies a rate pursuant to
ORS 310.060 that is less than the maximum rate of operating
{ - property - } taxes allowed by law, the county assessor for
each county within which the school district is located shall
determine the amount of operating { - property - } taxes that
would have been imposed by the school district if the school
district had certified the maximum rate of operating
{ - property - } taxes allowed by law.
{ + (2) If a school district has established tax zones
pursuant to sections 2 to 5 of this 2001 Act, solely for purposes
of subsection (1) of this section:
(a) The maximum rate of operating tax allowed by law shall be
determined for each tax zone of the district; and
(b) The maximum rate of operating tax for a tax zone in which
the district does not provide all of kindergarten through grade
12 education shall equal the maximum rate of operating tax for
the district multiplied by the percentage established for the
zone in the resolution adopted under section 4 of this 2001
Act. + }
{ - (2) - } { + (3) + } Each county assessor who is
required to calculate an amount under subsection (1) of this
section shall report that amount to the Department of Education.
SECTION 8. ORS 310.100 is amended to read:
Enrolled Senate Bill 177 (SB 177-A) Page 2
310.100. Each ad valorem property tax of a taxing district
shall apply to all the taxable property { - therein - } { +
of the district, or to all the taxable property in a tax zone of
a district that has established two or more tax zones within the
district + }, as shown by the assessment roll last compiled by
the assessor. The assessor, upon the application of the governing
body or of the duly accredited officer of any such taxing
district, shall furnish a certificate, properly verified, showing
the aggregate valuation of the taxable property therein.
SECTION 9. ORS 310.147 is amended to read:
310.147. (1) Each year, the county assessor shall establish a
system of code areas, identified by code numbers, which shall
represent all of the various combinations of taxing
districts { + , or tax zones of taxing districts in which
district taxes differ, + } as of July 1 of that year in which a
piece of property was located in the county on January 1 of that
year.
(2) The assessor shall compute a tentative consolidated ad
valorem property tax rate for each code area. The tentative
consolidated ad valorem property tax rate for the code area shall
be determined for each category under ORS 310.150. The tentative
consolidated ad valorem property tax rate for each category for
the code area shall be the sum of the category rates determined
under ORS 310.090 for each taxing district in the code area as
further modified by ORS 310.108.
(3)(a) The assessor shall compute the consolidated category
rate for each category under ORS 310.150 using the ad valorem
property taxes to be imposed on each property after adjustment
under ORS 310.150. In the case of the exempt bonded indebtedness
category, the tentative consolidated category rate for the code
area shall be the consolidated category rate for the code area.
(b) The total consolidated rate for the code area shall equal
the sum of the consolidated rates for each category determined
under paragraph (a) of this subsection after adjustment under ORS
310.150.
(4) The assessor shall indicate on the assessment roll the code
area number for each item of property assessed. In addition, the
assessor shall compile in duplicate a list of all code areas and
their numbers and identify for each area the names of each taxing
district in the area, the rate, after adjustment under ORS
310.150, for each item of the taxing district reported on the
notice filed under ORS 310.060, the total rate for each taxing
district and by category as described in ORS 310.150 and the
total consolidated rate for the code area. The list shall
constitute a part of the certificate prepared under ORS 311.105,
to be delivered to the county clerk and to the tax collector.
SECTION 10. { + Sections 2 to 5 of this 2001 Act and the
amendments to ORS 310.061, 310.100, 310.147 and 328.265 by
sections 6 to 9 of this 2001 Act apply to tax years beginning on
or after July 1, 2002. + }
SECTION 11. ORS 308.225 is amended to read:
308.225. (1) In preparing the assessment roll in any year, a
county assessor shall disregard changes or proposed changes
described in subsections (3) { + , + } { - and - } (4)
{ + and (5) + } of this section in the boundary lines of any
taxing district levying ad valorem property taxes if the
description and map showing changes or proposed changes are not
filed in final approved form, in accordance with and at the time
required by subsection (2) of this section.
Enrolled Senate Bill 177 (SB 177-A) Page 3
(2)(a) If a boundary change is made or proposed, the person,
governing body, officer, administrative agency or court making
the determination that the boundary change is final shall file
with the county assessor and the Department of Revenue the legal
description of the boundary change or proposed change and an
accurate map showing the change or proposed change in final
approved form, prior to the next March 31.
(b)(A) Except as is otherwise provided in subparagraph (B) of
this paragraph the legal description of the boundary change shall
consist of a series of courses in which the first course shall
start at a point of beginning and the final course shall end at
that point of beginning. Each course shall be identified by
bearings and distances and, when available, refer to deed lines,
deed corners and other monuments, or, in lieu of bearings and
distances, be identified by reference to:
(i) Township, range, section or section subdivision lines of
the U. S. Rectangular survey system.
(ii) Survey center line or right of way lines of public roads,
streets or highways.
(iii) Ordinary high water or ordinary low water of tidal lands.
(iv) Right of way lines of railroads.
(v) Any line identified on the plat of any recorded subdivision
defined in ORS 92.010.
(vi) Donation land claims.
(vii) Line of ordinary high water and line of ordinary low
water of rivers and streams, as defined in ORS 274.005, or the
thread of rivers and streams.
(B) In lieu of the requirements of subparagraph (A) of this
paragraph, boundary change areas conforming to areas of the U. S.
Rectangular survey may be described by township, section,
quarter-section or quarter-quarter section, or if the areas
conform to subdivision lots and blocks, may be described by lot
and block description.
(c) A map shall be provided to the filing body by the county
assessor or the department within 14 days after the filing body
notifies the assessor and department that a boundary change is
being proposed. The boundary line shall then be accurately
entered thereon by the person, body, officer or agency making the
filing.
(d) The description and map shall be filed in final approved
form not later than March 31 of the assessment year to which the
change applies. Proposed boundary changes shall be certified to
the county assessor and the department in the same manner as
boundary changes. If the taxing district is located in more than
one county, the description and map shall be filed with the
assessor in each county and with the department within the time
provided in this subsection.
(3) For purposes of this section, boundary change means the
change that occurs in the boundaries of a district by reason of:
(a) The formation of a new district;
(b) The consolidation or merger of two or more districts or
parts thereof;
(c) The annexation of territory by a district;
(d) The withdrawal of territory from a district; or
(e) The dissolution of a district. { +
(4) For purposes of this section, the establishment of tax
zones within a district constitutes a boundary change. + }
{ - (4) - } { + (5) + } For the purposes of this section, a
proposed change means a boundary change which has not become
Enrolled Senate Bill 177 (SB 177-A) Page 4
final or effective by March 31, but which is certain to become
final or effective prior to July 1 of the same year.
{ - (5) - } { + (6) + } Each description and map filed
under subsection (2) of this section shall be submitted to the
Department of Revenue and approved or disapproved within 30 days
of receipt.
{ - (6) - } { + (7) + } Within five days of its
determination, the Department of Revenue shall mail to each
county assessor with whom a filing has been made and to the
filing body notice of its approval or disapproval under
subsection { - (5) - } { + (6) + } of this section. If
disapproved, the department shall explain what steps must be
taken to correct the description or map, and shall cooperate with
the filing body in helping it meet the requirements of this
section, and whenever possible, the filing date of March 31.
Corrected descriptions and maps must then be resubmitted to the
department, and approved, and filed with the assessor or
assessors.
{ - (7) - } { + (8) + } The filing of the description and
map under this section is for assessment and taxation purposes
only and does not affect or relate to filing for any other
purpose.
SECTION 12. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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Enrolled Senate Bill 177 (SB 177-A) Page 5
Passed by Senate March 19, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 11, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 177 (SB 177-A) Page 6
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 177 (SB 177-A) Page 7