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 183
Senate Bill 566
Sponsored by COMMITTEE ON REVENUE (at the request of Senator Mae
Yih)
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.
Authorizes school districts to establish property tax work-off
programs under which senior citizens could perform services for
school district and receive property tax credits against school
district taxes. Limits credit to amount equal to minimum wage per
hour of service. Reduces State School Fund grant by amount of
credit.
A BILL FOR AN ACT
Relating to property tax work-off programs; creating new
provisions; and amending ORS 327.013.
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 chapter 310. + }
SECTION 2. { + (1) As used in this section and section 3 of
this 2001 Act:
(a) 'Homestead' has the meaning given that term in ORS 311.666.
(b) 'School district' means a common or union high school
district.
(c) 'Senior citizen' means a person who is 55 years of age or
older.
(2) A school district may establish a property tax work-off
program pursuant to which a senior citizen may agree to perform
public service in consideration of payment of the school
district's property taxes extended against the homestead of the
senior citizen and billed to the senior citizen.
(3) A property tax work-off program established under this
section shall specify the maximum dollar amount of credits
against property tax that the district will allow under this
section for a tax year.
(4) Each senior citizen participating in a property tax
work-off program established under this section shall execute an
agreement with the school district on or before November 15 of
the tax year during which the service is to be performed. The
agreement shall provide:
(a) A description of the service to be performed by the senior
citizen;
(b) The number of hours of service to be performed by the
senior citizen during the tax year at the rate described in
subsection (5) of this section; and
(c) Any other terms agreed to by the parties to the agreement
that are not inconsistent with the provisions of this section.
(5) For each hour of service performed for the school district,
the senior citizen shall receive a credit against the taxes
imposed on the homestead by the school district for that tax
year, equal to the amount that would be earned for working one
hour at the rate established under ORS 653.025.
(6) The total amount of credit allowable for all senior
citizens who own and occupy a single homestead may not exceed the
amount of school district property taxes imposed on that
homestead for the tax year.
(7) For purposes of ORS chapters 316 and 656, a senior citizen
who enters into an agreement under this section may not be
considered a worker or employee with respect to the services
performed pursuant to the agreement. A school district may not be
considered an employer of the senior citizen for purposes of
unemployment compensation under ORS chapter 657. + }
SECTION 3. { + (1) On or before December 1 of each tax year, a
school district that has established a property tax work-off
program under section 2 of this 2001 Act shall report the name
and address of each senior citizen participating for the tax year
to the assessor and tax collector for the county in which the
senior citizen's homestead is located. The school district shall
also report the amount of anticipated property tax credit for
each senior citizen participating in the program if the senior
citizen completely performs the agreement.
(2) The county assessor shall treat the anticipated property
tax credit as a payment of property tax received on November 15
of the tax year for purposes of calculating the discount
described in ORS 311.505.
(3) The county tax collector shall reduce the unsegregated tax
collections account distribution percentage for the school
district by the percentage that corresponds to the total amount
of anticipated property tax credits for the county.
(4) On or before August 15 following the end of the tax year
for which a senior citizen has performed property tax work-off
service for a school district, the school district shall report
the actual amount of the credit determined under section 2 of
this 2001 Act to the assessor for the county in which the
homestead is located and to the Department of Education.
(5)(a) If the amount of anticipated credit reported under
subsection (1) of this section is greater than the amount of
actual credit reported under subsection (4) of this section, the
county assessor shall add the difference to the taxes of the
school district that are extended against the homestead on the
next assessment and tax roll.
(b) Additional taxes described in this subsection shall be
deemed assessed and imposed in the year to which the additional
taxes relate. + }
SECTION 4. 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 { + :
(a) + } The total of the following:
{ - (a) - } { + (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) - } { + (B) + } The amount of property taxes
actually received by the district including penalties and
interest on taxes;
{ - (c) - } { + (C) + } The amount of revenue received by
the district from the Common School Fund under ORS 327.403 to
327.415;
{ - (d) - } { + (D) + } The amount of revenue received by
the district from the county school fund;
{ - (e) - } { + (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) - } { + (F) + } The amount of revenue received by
the district from state managed forestlands under ORS 530.115
(1)(b) and (c);
{ - (g) - } { + (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) - } { + (H) + } Moneys received in lieu of property
taxes;
{ - (i) - } { + (I) + } Federal funds received without
specific application by the school district and which are not
deemed under federal law to be nonsupplantable; and
{ - (j) - } { + (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.
{ + (b) Reduced by the amount of property tax work-off
credits allowed for the previous tax year, as reported under
section 3 (4) of this 2001 Act. + }
(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;
(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 5. 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 { + :
(a) + } The total of the following:
{ - (a) - } { + (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) - } { + (B) + } The amount of property taxes
actually received by the district including penalties and
interest on taxes;
{ - (c) - } { + (C) + } The amount of revenue received by
the district from the Common School Fund under ORS 327.403 to
327.415;
{ - (d) - } { + (D) + } The amount of revenue received by
the district from the county school fund;
{ - (e) - } { + (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) - } { + (F) + } The amount of revenue received by
the district from state managed forestlands under ORS 530.115
(1)(b) and (c);
{ - (g) - } { + (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) - } { + (H) + } Moneys received in lieu of property
taxes;
{ - (i) - } { + (I) + } Federal funds received without
specific application by the school district and which are not
deemed under federal law to be nonsupplantable; and
{ - (j) - } { + (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.
{ + (b) Reduced by the amount of property tax work-off
credits allowed for the previous tax year, as reported under
section 3 (4) of this 2001 Act. + }
(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;
(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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