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 2372
 
                         House Bill 3271
 
Sponsored by Representative KROPF
 
 
                             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.
 
  Permits certain special districts to establish tax zones in
which property taxes are imposed at different rates to reflect
qualitative differences in levels of service provided.
 
                        A BILL FOR AN ACT
Relating to tax zones; creating new provisions; and amending ORS
  198.720.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 5 of this 2003 Act are added to
and made a part of ORS 198.705 to 198.955. + }
  SECTION 2.  { + A district board may seek elector approval to
divide the district into zones for the purpose of imposing and
levying property taxes at a different rate and amount on the
assessed value of all taxable property in each zone. The
establishment of tax zones within a district under sections 2 to
5 of this 2003 Act must be based upon and reflect qualitative
differences in the services provided by the district to the
residents and their property in each zone. + }
  SECTION 3.  { + (1) A district board seeking to establish tax
zones under sections 2 to 5 of this 2003 Act shall cause a notice
of a public hearing relating to the formation of the 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 collected 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 2003 Act, the district board seeking to establish tax
zones under sections 2 to 5 of this 2003 Act shall conduct a
public hearing at 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 submit a measure to the
electors of the district that establishes the zones and zone
boundaries.  The measure shall state the operating tax rates
proposed to apply to each zone, stated as a percentage, not to
exceed 100 percent, of the lesser of the district's statutory or
permanent rate limit.  The measure may contain any other
provisions deemed necessary by the district board.
  (3) The measure shall be approved and the zones established if
a majority of district electors voting on the question vote in
favor of the measure.
  (4) If district electors establish zones within a district
pursuant to this section, the operating tax rate applicable to
each zone may not be modified for three tax years following zone
establishment.
  (5) If zones within a district are established under this
section, zone boundaries may not be changed unless notice of the
proposed zone boundary change is given and elector approval of
the change is obtained in the same manner as zones are
established under sections 2 to 5 of this 2003 Act. + }
  SECTION 5.  { + (1) If a district is divided into tax zones
under sections 2 to 5 of this 2003 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 when the district
board adopts its budget for any fiscal year.
  (2) The operating tax rate for each 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 198.720 is amended to read:
  198.720. Except as otherwise specifically provided by the
principal Act:
  (1) A district may consist of contiguous or noncontiguous
territory located in one or more adjoining counties. If any part
of the territory subject to a petition for formation or
annexation is within a city, the petition shall be accompanied by
a certified copy of a resolution of the governing body of the
city approving the petition.
  (2) A district may not include territory included within
another district formed under the same principal Act when the
other district is authorized to perform and is performing the
services the affected district is authorized to perform, unless:
  (a) Withdrawal of such territory is proposed and the territory
is withdrawn by withdrawal proceedings conducted in the other
district simultaneously with the formation or annexation
proceedings, and the proposed boundary changes are approved for
both districts; or
  (b) The principal Act provides for automatic withdrawal of the
affected territory in such a case.
  (3) The boundary lines of a district formed under ORS 198.705
to 198.955 shall include only such territory as may in reason be
served by the facilities or services of the district.
  (4) For purposes of ad valorem  { + property + } taxation, a
boundary change { + , including the creation or modification of
tax zones, + } must be filed in final approved form with the
county assessor and the Department of Revenue as provided in ORS
308.225.
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