72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 654
 
                         House Bill 2187
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for the Department of Revenue)
 
 
                             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.
 
  Requires urban renewal revenues raised through special levy or
through division of tax to be categorized as general government
property taxes for purposes of constitutional limitation on
property taxes.
  Applies to property tax years beginning on or after July 1,
2002.
  Takes effect on 91st day following adjournment sine die.
 
                        A BILL FOR AN ACT
Relating to urban renewal; creating new provisions; amending ORS
  310.150; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 310.150 is amended to read:
  310.150. (1) The three categories within which ad valorem
property tax items are to be categorized in the notice to be
filed under ORS 310.060 and for which category rates of ad
valorem property taxes are to be computed under ORS 310.090 and
tentative consolidated category rates are to be computed for each
code area under ORS 310.147 are as follows:
  (a) Taxes levied or imposed for the purpose of funding exempt
bonded indebtedness.
  (b) Taxes levied or imposed for the purpose of funding the
public school system and that are not described in paragraph (a)
of this subsection.
  (c) Taxes levied or imposed for the purpose of funding
government operations other than public school system operations
and that are not described in paragraph (a) of this subsection.
  (2) After computation of the tentative ad valorem property tax
consolidated rate for each category under ORS 310.147, and after
calculation of the amount of ad valorem property taxes to be
imposed on properties in the county, but before extending any
taxes on the assessment and tax roll, the assessor shall
determine whether the total amount of taxes on property to be
imposed on each property in the code area in each category is
within the limits described in subsection (3) of this section.
  (3)(a) The assessor shall determine whether the ad valorem
property taxes to be imposed on any property exceed the limits
described in this subsection in order to ensure, as guaranteed in
section 11 (11) and 11b, Article XI of the Oregon Constitution,
that taxes imposed in each geographic area taxed by the same
local taxing districts do not exceed $5 (public school system)
and $10 (other government) per $1,000 of real market value.
  (b) For the category of taxes imposed for the purpose of
funding the public school system that are not for the purpose of
paying principal and interest on exempt bonded indebtedness, if
the tentative consolidated ad valorem property tax rate
determined under subsection (2) of this section exceeds $5 per
$1,000 of real market value, the consolidated rate shall be
adjusted as provided in this section so that the consolidated
rate for the public school system category equals $5 per $1,000
of real market value.
  (c) For the category of taxes imposed for the purpose of
funding government operations other than the public school system
and that are not for the purpose of paying principal and interest
on exempt bonded indebtedness, if the tentative consolidated ad
valorem property tax rate exceeds $10 per $1,000 of real market
value, the consolidated rate shall be adjusted as provided in
this section so that the consolidated rate for the other
government category equals $10 per $1,000 of real market value.
  (d) For the category of taxes imposed for the purpose of paying
principal and interest on exempt bonded indebtedness, the
tentative consolidated rate determined under subsection (2) of
this section shall be the consolidated rate for the exempt bonded
indebtedness category.
  (4) If the taxes on property in either category to be imposed
on any property in the code area exceed the limit established for
that category in subsection (3) of this section, the assessor
shall reduce the taxes by applying a reduction ratio.
  (5)(a) If local option taxes described under ORS 280.040 to
280.145 have been adopted by one or more taxing districts in the
code area, the reduction ratio shall be calculated under this
subsection and applied only to the local option taxes imposed on
the property for which the taxes are being determined.
   { +  (b) Local option taxes subject to compression under this
subsection include urban renewal division of tax revenue that is
derived from the division of local option tax authority. + }
    { - (b) - }  { +  (c) + } The numerator of the reduction
ratio shall be the amount obtained (but not less than zero) by
subtracting the tentative consolidated category rate of ad
valorem property taxes that are not local option taxes from the
maximum rate of ad valorem property taxes for the category
described in subsection (3) of this section.
    { - (c) - }  { +  (d) + } The denominator for the ratio shall
be the total rate of all local option taxes for the category.
    { - (d) - }  { +  (e) + } The assessor shall multiply the
reduction ratio determined under this subsection by each local
option tax amount to which the property is subject in the
category.
    { - (e) - }  { +  (f) + } So reduced, the assessor shall
again determine if the total taxes for the category to be imposed
on the property exceed the limits described in subsection (3) of
this section. If the reduced taxes for the category do not exceed
the category limit, such taxes shall be the taxes used to compute
the consolidated rate for the code area in which the property is
located. If the reduced taxes for the category still exceed the
category limit after all local option taxes have been eliminated,
the taxes in the category shall be subject to further reduction
under subsection (6) of this section.
  (6)(a) If the property is not subject to local option taxes or
if all local option taxes have been eliminated as a result of the
application of the reduction ratio calculated under subsection
(5) of this section, and the tentative consolidated rate
determined under ORS 310.147 for the category exceeds the maximum
rate of ad valorem property taxes for the category described in
 
subsection (3) of this section, the reduction ratio shall be
determined under this subsection.
  (b) The numerator of the reduction ratio shall be the maximum
rate permitted for the category described in subsection (3) of
this section.
  (c) The denominator of the reduction ratio shall be the
tentative consolidated category rate under ORS 310.147 (or the
category rate applicable to the property after the reduction
under subsection (5) of this section, if applicable).
  (d) The assessor shall multiply the reduction ratio determined
under this subsection by the amount of each taxing district item
of ad valorem property tax that is a component of the tentative
consolidated category rate for the code area in which the
property is located.
    { - (7) The determination of the appropriate category for an
item of tax is based on the tax as certified by the taxing
district under ORS 310.060 and not based on the tax imposed on
the urban renewal increment as described in ORS chapter 457. - }
   { +  (7) In determining whether the taxes described in
subsection (1)(c) of this section exceed the limitation under
subsection (3)(c) of this section, all moneys raised through the
urban renewal special levy described in ORS 457.435 and all
moneys raised through the urban renewal division of tax,
including amounts derived from exempt bonded indebtedness
authority and local option tax authority, must be categorized as
subject to the limitation described in subsection (3)(c) of this
section. + }
  SECTION 2.  { + The amendments to ORS 310.150 by section 1 of
this 2003 Act apply to property tax years beginning on or after
July 1, 2002. + }
  SECTION 3.  { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
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