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 140
 
                   Senate Joint Resolution 16
 
Sponsored by Senator FERRIOLI
 
 
                             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.
 
  Proposes amendment to Oregon Constitution to grant cities and
counties authority to establish inverse taxing districts in
residential areas in which real market value has grown by less
than three percent per year or has declined for at least two tax
years. Assesses property at maximum assessed value, growing at
three percent per year, if property is not owner-occupied and is
undervalued relative to regional averages. Dedicates incremental
tax raised due to inverse taxing district to infrastructure
improvement in district.
  Refers proposed amendment to people for approval or rejection
at next regular general election.
 
                        JOINT RESOLUTION
Be It Resolved by the Legislative Assembly of the State of
  Oregon:
   { +  PARAGRAPH 1. + } The Constitution of the State of Oregon
is amended by creating a new section 16 to be added to and made a
part of Article XI, such section to read:
   { +  SECTION 16. + }  { + (1) A city may establish an area, or
more than one area, within the territorial boundaries of the city
as an inverse taxing district if:
  (a) The area is primarily used for residential purposes; and
  (b) For the previous two property tax years the real market
value of all taxable residential real property (not including
property subject to special assessment) within the area has grown
by less than three percent per year or has declined.
  (2) A county may establish an area, or more than one area,
within the territorial boundaries of the county as an inverse
taxing district if:
  (a) The area is primarily used for residential purposes;
  (b) For the previous two property tax years the real market
value of all taxable residential real property (not including
property subject to special assessment) within the area has grown
by less than three percent per year or has declined; and
  (c) The area consists of unincorporated territory outside the
boundaries of any city.
  (3)(a) Taxable residential property located in an inverse
taxing district shall be assessed under paragraph (b) of this
subsection for ad valorem property tax purposes if the property:
  (A) Is not occupied by the owner of the property;
 
  (B) Has a real market value per square foot that is less than
the regional average real market value per square foot of
residential property of the same class; and
  (C) Is undervalued relative to a regional average real market
value under subparagraph (B) of this paragraph because of a lack
of upkeep or maintenance or a failure to make repairs.
  (b) Taxable residential property described in paragraph (a) of
this subsection shall be assessed at the maximum assessed value
of the property under subsection (1) of section 11 of this
Article, increasing at a rate of three percent per tax year,
until the tax year for which:
  (A) As of the assessment date, the property is no longer
property described in paragraph (a) of this subsection; or
  (B) The inverse taxing district is terminated.
  (c) Paragraph (f) of subsection (1) of section 11 of this
Article does not apply to property described in paragraph (a) of
this subsection.
  (4)(a) For each tax year for which an inverse taxing district
exists within a city or county, the difference between the ad
valorem property taxes imposed on property assessed under
subsection (3) of this section and the ad valorem property taxes
that would have been imposed on the property had the property
been assessed as provided in section 11 of this Article shall be
distributed to the city or county that established the inverse
taxing district.
  (b) Tax revenues distributed to a city or county pursuant to
this subsection are dedicated to infrastructure improvements
within the inverse taxing district from which the tax revenues
were generated.
  (c) For purposes of this subsection, 'ad valorem property
taxes' means the ad valorem property taxes of each taxing
district imposing ad valorem property taxes within the inverse
taxing district.
  (5) An inverse taxing district may be established for no more
than 20 tax years. A city or county may establish a new inverse
taxing district containing all or a part of the territory
included in the original inverse taxing district, if the
conditions described in subsection (1) or (2) of this section
continue to exist following the termination of the original
inverse taxing district.
  (6) The Legislative Assembly may enact legislation implementing
the provisions of this section, including but not limited to
legislation that:
  (a) Defines terms;
  (b) Establishes regions for purposes of computing regional
average real market values of residential real property; and
  (c) Establishes classes of residential real property.
  (7) This section does not apply to property subject to
exemption or special assessment. + }
 
  PARAGRAPH 2.  { + The amendment proposed by this resolution
shall be submitted to the people for their approval or rejection
at the next regular general election held throughout this
state. + }
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