75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
SA to A-Eng. HB 3056
LC 2775/HB 3056-A8
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 3056
By COMMITTEE ON FINANCE AND REVENUE
June 9
On page 1 of the printed A-engrossed bill, line 2, before '
amending' insert 'and' and after 'ORS' insert '457.010,'.
In line 3, after '457.460' insert a period and delete the rest
of the line.
On page 2, line 23, delete 'first' and insert ' initially'.
On page 3, delete lines 2 through 16 and insert:
' (4) On or after the effective date of this 2009 Act, the
urban renewal agency may amend a plan that is not a large
metropolitan plan as defined in section 10 of this 2009 Act to
increase the maximum indebtedness, provided that:
' (a) The aggregate of all amendments under this subsection may
not exceed 20 percent of the plan's initial maximum indebtedness,
as adjusted pursuant to paragraph (b) of this subsection.
' (b) For purposes of computing the 20 percent limit on
increases in maximum indebtedness, the initial maximum
indebtedness may be increased annually on the anniversary date of
initial approval of the plan by the index used in the urban
renewal report to compute the future costs of projects that will
be financed under the plan, beginning on the later of July 1,
1999, or the first anniversary of plan approval. This increase
may be applied only to the first amendment to the maximum
indebtedness that is made on or after the effective date of this
2009 Act.
' (5) The limits in subsection (4) of this section do not apply
if the agency obtains concurrence as provided in section 10 of
this 2009 Act.'.
On page 4, line 22, delete 'first' and insert ' initially'.
In line 26, after '7' insert '(1)' in both places.
In line 28, restore the bracketed material.
In lines 29 through 31, delete the boldfaced material and
restore the bracketed material.
On page 5, line 9, after '(6)(a)' delete the rest of the line
and lines 10 and 11 and insert 'The county assessor shall certify
to the tax collector the amount of funds to be raised for an
urban renewal agency as determined under subsection (2) of this
section. The tax collector'.
On page 6, line 25, delete the second 'agency' and insert '
assessor' and delete 'specify' and insert 'use'.
In line 28, after 'the' delete the rest of the line and line 29
and insert 'urban renewal agency may limit future'.
On page 7, delete lines 16 through 45 and delete pages 8
through 12 and insert:
' { + SECTION 10. + } { + (1) As used in this section,
unless the context requires otherwise:
' (a) 'Assumed increment' means the assessed value of the
increment in the prior year, increased by the average percentage
increase of the increment, if any, during the three prior years.
' (b) 'Large metropolitan plan' means a plan for an urban
renewal area by a city with a population of more than 500,000 on
the effective date of this 2009 Act that is either first approved
on or after the effective date of this 2009 Act or is
substantially amended to increase maximum indebtedness on or
after the effective date of this 2009 Act.
' (c) 'Maximum division of taxes' means the maximum amount of
funds that may be raised for an urban renewal plan by dividing
the taxes as provided in section 1c, Article IX of the Oregon
Constitution, as described in ORS 457.440 (5), without regard to
notices to assessors under this section or section 7 (1) of this
2009 Act or adjustments made pursuant to ORS 457.435 (2)(c).
' (d) 'Transition amount' means the maximum division of taxes
for a plan in the year in which the plan is first substantially
amended to increase maximum indebtedness on or after the
effective date of this 2009 Act.
' (2)(a) Except as provided in paragraphs (b) and (c) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for a plan, other than a
large metropolitan plan, that is first approved on or after the
effective date of this 2009 Act.
' (b) Beginning with the later of the 11th year after the
initial approval of the plan or the first year after the year in
which the maximum division of taxes equals or exceeds 10 percent
of the initial maximum indebtedness in the plan, the agency shall
notify the assessor pursuant to ORS 457.440 (2)(d) to compute the
division of taxes for the urban renewal area using an assessed
value that is not greater than the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to 10 percent of the
initial maximum indebtedness in the plan; and
' (B) 25 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to 10 percent of the
initial maximum indebtedness in the plan.
' (c) Beginning with the first year after the year in which the
division of taxes equals or exceeds 12.5 percent of the initial
maximum indebtedness in the plan, the agency shall notify the
assessor pursuant to ORS 457.440 (2)(d) to compute the division
of taxes for the urban renewal area using an amount of assessed
value that the agency estimates will produce division of tax
revenues that does not exceed 12.5 percent of the initial maximum
indebtedness in the plan.
' (d) After computing the assessed value as required under
paragraph (b) or (c) of this subsection, an urban renewal agency
shall further modify the value if, for reasons other than use of
the assumed increment, the value included in the prior year's
notice to the assessor resulted in division of tax revenues
different from the respective target amounts under paragraphs (b)
and (c) of this subsection. The modification under this paragraph
may not exceed an amount that would result in the difference
between the actual revenues and the target amounts.
' (3)(a) Except as provided in paragraphs (b) and (c) of this
subsection, an urban renewal agency may notify the assessor to
collect the maximum division of taxes for a plan, other than a
large metropolitan plan, that is substantially amended on or
after the effective date of this 2009 Act to increase maximum
indebtedness.
' (b) Beginning with the later of the year after the year in
which the plan is substantially amended or the 11th year after
the plan was initially approved, when the maximum division of
taxes exceeds 10 percent of the initial maximum indebtedness in
the plan, the agency shall notify the assessor pursuant to ORS
457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an assessed value that is not greater than the
sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) 10 percent of the initial maximum indebtedness in the
plan; or
' (ii) The transition amount; and
' (B) 25 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greater of:
' (i) 10 percent of the initial maximum indebtedness in the
plan; or
' (ii) The transition amount.
' (c) Beginning with the first year after the year in which the
division of taxes equals or exceeds the greater of 12.5 percent
of the initial maximum indebtedness in the plan or the transition
amount, the agency shall notify the assessor pursuant to ORS
457.440 (2)(d) to compute the division of taxes for the urban
renewal area using an amount of assessed value that the agency
estimates will produce division of tax revenues that does not
exceed the greater of 12.5 percent of the initial maximum
indebtedness in the plan or the transition amount.
' (d) After computing the assessed value as required under
paragraph (b) or (c) of this subsection, an agency shall further
modify the value if, for reasons other than use of the assumed
increment, the value included in the prior year's notice to the
assessor resulted in division of tax revenues different from the
respective target amounts under paragraphs (b) and (c) of this
subsection. The modification under this paragraph may not exceed
an amount that would result in the difference between the actual
revenues and the target amounts.
' (4)(a) Except as provided in paragraphs (b) to (d) of this
subsection, an urban renewal agency may notify the assessor to
impose the maximum division of taxes for a large metropolitan
plan that is initially approved on or after the effective date of
this 2009 Act.
' (b) In the first year after the year in which the maximum
division of taxes equals or exceeds three percent of the initial
maximum indebtedness in the plan, the agency shall notify the
assessor pursuant to ORS 457.440 (2)(d) to compute the division
of taxes for the urban renewal area using an assessed value that
is not greater than the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to three percent of the
initial maximum indebtedness in the plan; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to three percent of
the initial maximum indebtedness in the plan.
' (c) Except as provided in paragraph (d) of this subsection,
beginning with the year after the year described in paragraph (b)
of this subsection, the agency shall notify the assessor pursuant
to ORS 457.440 (2)(d) to compute the division of taxes for the
urban renewal area using an assessed value that is not greater
than the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greatest amount of
division of tax revenues the agency was permitted to use in any
prior year to compute assessed value under this paragraph or
paragraph (b) of this subsection; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greatest
amount of division of tax revenues the agency was permitted to
use in any prior year under this paragraph or paragraph (b) of
this subsection.
' (d) Beginning with the first year after the year described in
paragraph (c) of this subsection in which the division of tax
revenues equals or exceeds 10 percent of the initial maximum
indebtedness in the plan, the agency shall notify the assessor
pursuant to ORS 457.440 (2)(d) to compute the division of taxes
for the urban renewal area using an amount of assessed value the
agency estimates will produce division of tax revenues that does
not exceed 10 percent of the initial maximum indebtedness in the
plan.
' (e) After computing the assessed value as required under
paragraph (b), (c) or (d) of this subsection, an agency shall
further modify the value if, for reasons other than use of the
assumed increment, the value included in the prior year's notice
to the assessor resulted in division of tax revenues different
from the respective target amounts under paragraphs (b) to (d) of
this subsection. The modification under this paragraph may not
exceed an amount that would result in the difference between the
actual revenues and the target amounts.
' (5)(a) As used in this subsection, 'substantial amendment '
refers to the first substantial amendment to increase maximum
indebtedness for the urban renewal plan after the effective date
of the 2009 Act.
' (b) This subsection applies to an urban renewal plan that
becomes a large metropolitan plan because it is substantially
amended to increase its maximum indebtedness on or after the
effective date of this 2009 Act. This subsection applies
beginning in the first year after the year in which the urban
renewal plan is first amended to increase its maximum
indebtedness on or after the effective date of this 2009 Act.
Except as provided in paragraphs (c) to (e) of this subsection,
an urban renewal agency may notify the assessor to impose the
maximum division of taxes.
' (c) In the first year following a year that the maximum
division of taxes exceeds three percent of the maximum
indebtedness in effect for the plan immediately before the
substantial amendment, the agency shall notify the assessor
pursuant to ORS 457.440 (2)(d) to compute the division of taxes
for the urban renewal area using an assessed value that is not
greater than the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in the plan
immediately before the substantial amendment; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in the plan
immediately before the substantial amendment.
' (d) Except as provided in paragraph (e) of this subsection,
beginning with the year after the year described in paragraph (c)
of this subsection, the agency shall notify the assessor pursuant
to ORS 457.440 (2)(d) to compute the division of taxes for the
urban renewal area using an assessed value that is not greater
than the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greatest amount of
division of tax revenues the agency was permitted to use in any
prior year to compute assessed value under this paragraph or
paragraph (c) of this subsection; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greatest
amount of division of tax revenues the agency was permitted to
use in any prior year under this paragraph or paragraph (c) of
this subsection.
' (e) Beginning with the first year after the year in which the
division of tax revenues equals or exceeds the greater of the
transition amount or 10 percent of the maximum indebtedness in
effect for the plan immediately before the substantial amendment,
the agency shall notify the assessor pursuant to ORS 457.440
(2)(d) to compute the division of taxes for the urban renewal
area using an amount of assessed value that is not greater than
an amount the agency estimates will produce division of tax
revenues equal to the greater of the transition amount or 10
percent of the maximum indebtedness in effect for the plan
immediately before the substantial amendment.
' (f) After computing the assessed value as required under
paragraph (c), (d) or (e) of this subsection, an agency shall
further modify the value if, for reasons other than use of the
assumed increment, the value included in the prior year's notice
to the assessor resulted in division of tax revenues different
from the respective target amounts under paragraphs (c) to (e) of
this subsection. The modification under this paragraph may not
exceed an amount that would result in the difference between the
actual revenues and the target amounts.
' (6)(a) The initial maximum indebtedness for a large
metropolitan plan that is initially approved after the effective
date of this 2009 Act shall be established as provided in ORS
457.190 (4)(a) to (c).
' (b) Beginning in 2010, the dollar amounts in this subsection
may be increased on July 1 of any year by the percent change in
average construction costs since July 1, 2009, according to the
Engineering News-Record Northwest (Seattle, Washington)
Construction Cost Index. The adjusted dollar amounts may be used
only when a large metropolitan plan is initially approved.
' (c) The maximum indebtedness may not be increased by more
than 20 percent of the initial maximum indebtedness of the plan.
' (d) The maximum indebtedness for a plan that becomes a large
metropolitan plan because it is substantially amended on or after
the effective date of this 2009 Act to increase its maximum
indebtedness may not be increased above 20 percent of the maximum
indebtedness in effect for the plan immediately before the first
substantial amendment to increase maximum indebtedness that was
made on or after the effective date of this 2009 Act.
' (7) Limitations imposed under this section and section 7 of
this 2009 Act and ORS 457.190 (4) and 457.220 (4) do not apply to
the extent the municipality approving a plan obtains the written
concurrence of taxing districts imposing at least 75 percent of
the amount of taxes imposed under permanent rate limits in the
urban renewal area. For plans that are initially approved or
substantially amended on or after the effective date of this 2009
Act, compliance with this section is determined based on the
amount of taxes imposed under permanent rate limits in the fiscal
year prior to the fiscal year in which the plan is approved or
amended, as applicable.
' (8) For purposes of this section, a plan is treated as
approved or amended on the day on which the municipality took
final action to enact the nonemergency ordinance approving or
amending the plan.
' (9) The amounts shown in the certified statement filed under
ORS 457.430 are not affected by subsections (2) to (5) of this
section. If the increment for an area is less than the assessed
value that the assessor is directed to use under subsections (2)
to (5) of this section, the division of taxes shall be computed
based on the increment and the assessor shall impose the maximum
division of taxes for the plan.
' (10)(a) Notwithstanding subsection (1) of this section, as
used in this subsection, 'transition amount' means the maximum
division of taxes for the plan in the fiscal year that the first
amendment made after June 1, 2008, to increase maximum
indebtedness takes effect.
' (b) Notwithstanding any provisions in this section to the
contrary, an urban renewal plan that was first approved in 1998
and had an initial maximum indebtedness of $224,780,350 may be
substantially amended after June 1, 2008, to increase maximum
indebtedness by not more than $343,719,650.
' (c) Except as provided in paragraph (d) of this subsection,
an urban renewal agency may notify the assessor to collect the
maximum division of taxes for an urban renewal plan described in
paragraph (b) of this subsection that is substantially amended to
increase its maximum indebtedness after June 1, 2008.
' (d) Beginning with the first fiscal year after the fiscal
year in which the first amendment made after June 1, 2008, to
increase maximum indebtedness in the plan described in paragraph
(b) of this subsection takes effect that the maximum division of
taxes exceeds three percent of the maximum indebtedness in effect
for the plan immediately after the first amendment made after
June 1, 2008, to increase maximum indebtedness takes effect, the
agency shall notify the assessor pursuant to ORS 457.440 (2)(d)
to compute the division of taxes for the urban renewal area using
an assessed value that is the sum of:
' (A) The amount of assessed value the agency estimates will
produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in effect for
the plan immediately after the first amendment made after June 1,
2008, to increase maximum indebtedness takes effect; and
' (B) 75 percent of the amount by which the assumed increment
exceeds the assessed value of the increment the agency estimates
will produce division of tax revenues equal to the greater of:
' (i) The transition amount; or
' (ii) Three percent of the maximum indebtedness in effect for
the plan immediately after the first amendment made after June 1,
2008, to increase maximum indebtedness takes effect.
' (e)(A) To the extent permitted by law, a plan amendment
described in this subsection shall provide direct economic
benefits to the county in which the plan's urban renewal area is
located in the following amounts:
' (i) If the plan is substantially amended to increase maximum
indebtedness by $343,719,650 or more, at least $35,000,000.
' (ii) If the plan is amended to increase maximum indebtedness
by less than $343,719,650, no less than 10.18 percent of any
increase in maximum indebtedness.
' (B) Benefits required under subparagraph (A) of this
paragraph shall be paid as follows:
' (i) $10,000,000 no later than June 30, 2014; and
' (ii) The balance no later than June 30, 2021.
' (11)(a) The Director of the Department of Revenue shall adopt
rules necessary to apportion assessed value among tax code areas
in an urban renewal area for which the urban renewal agency has
notified the assessor pursuant to this section or ORS 457.440
(2)(d) or section 7 of this 2009 Act to compute the division of
taxes.
' (b) The director may adopt any rule necessary or convenient
for the imposition and collection of taxes under this section or
section 7 of this 2009 Act.
' (12) The taxing districts affected by the urban renewal plan
and the urban renewal agency are not liable for any amount by
which amounts intended to be collected pursuant to this section
differ from the targeted amounts in subsections (2) to (5) of
this section. The sole remedy for any difference is the agency's
modification of assessed value in subsequent years' notices as
provided in subsections (2)(d), (3)(d), (4)(e) and (5)(f) of this
section. + }
' { + SECTION 11. + } ORS 457.010 is amended to read:
' 457.010. As used in this chapter, unless the context requires
otherwise:
' (1) 'Blighted areas' means areas that, by reason of
deterioration, faulty planning, inadequate or improper
facilities, deleterious land use or the existence of unsafe
structures, or any combination of these factors, are detrimental
to the safety, health or welfare of the community. A blighted
area is characterized by the existence of one or more of the
following conditions:
' (a) The existence of buildings and structures, used or
intended to be used for living, commercial, industrial or other
purposes, or any combination of those uses, that are unfit or
unsafe to occupy for those purposes because of any one or a
combination of the following conditions:
' (A) Defective design and quality of physical construction;
' (B) Faulty interior arrangement and exterior spacing;
' (C) Overcrowding and a high density of population;
' (D) Inadequate provision for ventilation, light, sanitation,
open spaces and recreation facilities; or
' (E) Obsolescence, deterioration, dilapidation, mixed
character or shifting of uses;
' (b) An economic dislocation, deterioration or disuse of
property resulting from faulty planning;
' (c) The division or subdivision and sale of property or lots
of irregular form and shape and inadequate size or dimensions for
property usefulness and development;
' (d) The laying out of property or lots in disregard of
contours, drainage and other physical characteristics of the
terrain and surrounding conditions;
' (e) The existence of inadequate streets and other rights of
way, open spaces and utilities;
' (f) The existence of property or lots or other areas that are
subject to inundation by water;
' (g) A prevalence of depreciated values, impaired investments
and social and economic maladjustments to such an extent that the
capacity to pay taxes is reduced and tax receipts are inadequate
for the cost of public services rendered;
' (h) A growing or total lack of proper utilization of areas,
resulting in a stagnant and unproductive condition of land
potentially useful and valuable for contributing to the public
health, safety and welfare; or
' (i) A loss of population and reduction of proper utilization
of the area, resulting in its further deterioration and added
costs to the taxpayer for the creation of new public facilities
and services elsewhere.
' (2) 'Certified statement' means the statement prepared and
filed pursuant to ORS 457.430 or an amendment to the certified
statement prepared and filed pursuant to ORS 457.430.
' (3) 'City' means any incorporated city.
' (4) 'Consolidated billing tax rate' means:
' (a) If the urban renewal plan is an existing urban renewal
plan (other than an existing urban renewal plan designated as an
Option Three plan under ORS 457.435 (2)(c)), an urban renewal
plan that was an existing urban renewal plan on October 6, 2001,
(other than an existing urban renewal plan designated as an
Option Three plan under ORS 457.435 (2)(c)) and that was
substantially amended as described in ORS 457.085 (2)(i)(A) or
(B) on or after October 6, 2001, or an urban renewal plan adopted
on or after October 6, 2001, the total of all district tax rates
used to extend taxes after any adjustment to reflect tax offsets
under ORS 310.105, but does not include any rate derived from:
' (A) Any urban renewal special levy under ORS 457.435
{ - ; - } { + . + }
' (B) A local option tax, as defined in ORS 280.040, that is
approved by taxing district electors after October 6, 2001 { - ;
or - } { + . + }
' (C) A tax pledged to repay exempt bonded indebtedness (other
than exempt bonded indebtedness used to fund local government
pension and disability plan obligations that, until funded by the
exempt bonded indebtedness, were described in section 11 (5),
Article XI of the Oregon Constitution), as defined in ORS
310.140, that is approved by taxing district electors after
October 6, 2001 { - ; and - } { + .
' (D) The increase in the rate of ad valorem property tax
allowable under section 11 (5)(d), Article XI of the Oregon
Constitution, for a school district with a statutory rate limit
on July 1, 2003, that is greater than $4.50 per $1,000 of
assessed value, to the extent that the increase is excluded from
local revenues, as that term is used in ORS chapter 327, and
provided that the school district notifies the county assessor of
the rate to be excluded for the current fiscal year not later
than July 15. + }
' (b) In the case of all other urban renewal plans, the total
of all district ad valorem property tax rates used to extend
taxes after any adjustments to reflect tax offsets under ORS
310.105, except that 'consolidated billing tax rate' does not
include any urban renewal special levy rate under ORS 457.435.
' (5)(a) 'Existing urban renewal plan' means an urban renewal
plan that provides for a division of ad valorem property taxes as
described under ORS 457.420 to 457.460 adopted by ordinance
before December 6, 1996, that:
' (A) Except for an amendment made on account of ORS 457.190
(3) and subject to paragraph (b) of this subsection, is not
changed by substantial amendment, as described in ORS 457.085
(2)(i)(A) or (B), on or after December 6, 1996; and
' (B) For tax years beginning on or after July 1, 1998,
includes the limit on indebtedness as described in ORS 457.190
(3).
' (b) If, on or after July 1, 1998, the maximum limit on
indebtedness (adopted by ordinance before July 1, 1998, pursuant
to ORS 457.190) of an existing urban renewal plan is changed by
substantial amendment, then 'indebtedness issued or incurred to
carry out the existing urban renewal plan' for purposes of ORS
457.435 includes only the indebtedness within the indebtedness
limit adopted by ordinance under ORS 457.190 (3)(c) before July
1, 1998.
' (6) 'Fiscal year' means the fiscal year commencing on July 1
and closing on June 30.
' (7) 'Governing body of a municipality' means, in the case of
a city, the common council or other legislative body thereof,
and, in the case of a county, the board of county commissioners
or other legislative body thereof.
' (8) 'Housing authority' or 'authority' means any housing
authority established pursuant to the Housing Authorities Law.
' (9) 'Increment' means that part of the assessed value of a
taxing district attributable to any increase in the assessed
value of the property located in an urban renewal area, or
portion thereof, over the assessed value specified in the
certified statement.
' (10) 'Maximum indebtedness' means the amount of the principal
of indebtedness included in a plan pursuant to ORS 457.190 and
does not include indebtedness incurred to refund or refinance
existing indebtedness.
' (11) 'Municipality' means any county or any city in this
state. 'The municipality' means the municipality for which a
particular urban renewal agency is created.
' (12) 'Taxing body' or 'taxing district' means the state,
city, county or any other taxing unit which has the power to levy
a tax.
' (13) 'Urban renewal agency' or 'agency' means an urban
renewal agency created under ORS 457.035 and 457.045.
' (14) 'Urban renewal area' means a blighted area included in
an urban renewal plan or an area included in an urban renewal
plan under ORS 457.160.
' (15) 'Urban renewal project' or 'project' means any work or
undertaking carried out under ORS 457.170 in an urban renewal
area.
' (16) 'Urban renewal plan' or 'plan' means a plan, as it
exists or is changed or modified from time to time for one or
more urban renewal areas, as provided in ORS 457.085, 457.095,
457.105, 457.115, 457.120, 457.125, 457.135 and 457.220.'.
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