75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2775
B-Engrossed
House Bill 3056
Ordered by the Senate June 9
Including House Amendments dated May 4 and Senate Amendments
dated
June 9
Sponsored by Representatives HUNT, HOLVEY
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.
Sets initial maximum indebtedness for specified urban renewal
plans.
Increases, on July 1 of each year, beginning in 2010, allowable
amount of initial maximum indebtedness for plans that are not
large metropolitan plans by use of specified index and for large
metropolitan plans by use of change in average construction
costs.
Allows urban renewal agency to amend certain plans to increase
maximum indebtedness.
Allows urban renewal agency { - and entity authorized to
exercise powers of urban renewal agency - } to limit collection
of taxes under specified circumstances and according to specified
procedures.
Allows urban renewal agency to notify assessor to collect
maximum division of taxes for newly approved urban renewal plans
and substantially amended plans, including certain plans
classifiable as large metropolitan plans. Creates exceptions.
{ - Declares emergency, effective on passage. - }
A BILL FOR AN ACT
Relating to urban renewal; creating new provisions; and amending
ORS 457.010, 457.190, 457.220, 457.420, 457.440, 457.450 and
457.460.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 457.190 is amended to read:
457.190. (1) An urban renewal agency may borrow money and
accept advances, loans, grants and any other form of financial
assistance from the federal government, the state, county or
other public body, or from any sources, public or private, for
the purposes of undertaking and carrying out urban renewal
projects.
(2) An urban renewal agency may do all things necessary or
desirable to secure such financial aid, including obligating
itself in any contract with the federal government for federal
financial aid to convey to the federal government the project to
which the contract relates upon the occurrence of a substantial
default thereunder, in the same manner as a housing authority may
do to secure such aid in connection with blighted area clearance
and housing projects under the Housing Authorities Law.
(3)(a) Each urban renewal plan adopted by ordinance on or after
July 14, 1997, that provides for a division of taxes pursuant to
ORS 457.440 shall include in the plan the maximum amount of
indebtedness that may be issued or incurred under the plan.
Notwithstanding subsection (1) of this section, if a maximum
amount of indebtedness is not included in the plan, the urban
renewal agency may not issue indebtedness for which taxes divided
under ORS 457.440 are to be pledged to carry out the plan.
(b) Each urban renewal plan adopted by ordinance on or after
December 6, 1996, and before July 14, 1997, that provides for a
division of taxes pursuant to ORS 457.440 but does not include a
maximum amount of indebtedness that may be issued or incurred
under the plan shall be changed, by substantial plan amendment
pursuant to ORS 457.220, to include the maximum amount of
indebtedness that may be issued or incurred under the plan before
July 1, 2000. Notwithstanding subsection (1) of this section, if
a maximum amount of indebtedness is not included in the plan on
or before July 1, 2000, the urban renewal agency may not on or
after July 1, 2000, issue indebtedness for which taxes divided
under ORS 457.440 are to be pledged to carry out the plan.
(c)(A) Each existing urban renewal plan that provides for a
division of taxes pursuant to ORS 457.420 to 457.460 may be
changed by substantial amendment no later than July 1, 1998, to
include a maximum amount of indebtedness that may be issued or
incurred under the plan determined as described in subparagraph
(B) of this paragraph. The additional notices required under ORS
457.120 are not required for an amendment adopted pursuant to
this paragraph.
(B) The maximum amount of indebtedness that may be issued or
incurred under the plan, as determined for purposes of meeting
the requirements of this paragraph, shall be based upon good
faith estimates of the scope and costs of projects, including but
not limited to increases in costs due to reasonably anticipated
inflation, in the existing urban renewal plan and the schedule
for their completion as completion dates were anticipated as of
December 5, 1996. The maximum amount of indebtedness shall be
specified in dollars and cents.
(C) Notwithstanding subsection (1) of this section, if a
maximum amount of indebtedness is not adopted for an existing
urban renewal plan as described in this paragraph before July 1,
1998, the urban renewal agency may not collect funds under ORS
457.435.
{ + (4) For an urban renewal plan initially approved on or
after the effective date of this 2009 Act, other than for a large
metropolitan plan as defined in section 10 of this 2009 Act, the
initial maximum indebtedness that may be issued or incurred under
the plan shall be established as follows:
(a) If the total assessed value in the certified statement
under ORS 457.430 is less than or equal to $50 million, the
initial maximum indebtedness may not exceed $50 million.
(b) If the total assessed value in the certified statement is
more than $50 million and less than or equal to $150 million, the
initial maximum indebtedness may not exceed $50 million plus 50
percent of the total assessed value in the certified statement
that is over $50 million.
(c) If the total assessed value in the certified statement
exceeds $150 million, the initial maximum indebtedness may not
exceed $100 million, plus 35 percent of the total assessed value
in the certified statement that is over $150 million.
(d) Beginning July 1, 2010, the dollar limits set forth in this
subsection may be increased on July 1 of each year by the index
used in the urban renewal report to compute the future costs of
projects that will be financed under the plan.
(e) The limits in this subsection do not apply if the agency
obtains concurrence as provided in section 10 of this 2009
Act. + }
SECTION 2. ORS 457.220 is amended to read:
457.220. (1) Except for the provisions of { - subsection - }
{ + subsections + } (2) { + and (4) + } of this section, an
urban renewal agency shall carry out the urban renewal plan
approved under ORS 457.095.
(2) Any substantial change made in the urban renewal plan
shall, before being carried out, be approved and recorded in the
same manner as the original plan.
(3) No land equal to more than 20 percent of the total land
area of the original plan shall be added to the urban renewal
areas of a plan by amendments.
{ + (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. + }
SECTION 3. ORS 457.420 is amended to read:
457.420. (1) Any urban renewal plan may contain a provision
that the ad valorem taxes, if any, levied by a taxing district in
which all or a portion of an urban renewal area is located, shall
be divided as provided in section 1c, Article IX of the Oregon
Constitution, and ORS 457.420 to 457.460. Ad valorem taxes shall
not be divided if there is no provision in the urban renewal plan
for the division.
(2) No plan adopted after October 3, 1979, shall provide for a
division of ad valorem taxes under subsection (1) of this section
if:
(a) For municipalities having a population of more than 50,000,
according to the latest state census:
(A) The assessed value for the urban renewal areas of the plan,
when added to the total assessed value previously certified by
the assessor for other urban renewal plans of the municipality
for which a division of ad valorem taxes is provided { + , + }
exceeds a figure equal to 15 percent of the total assessed value
of that municipality, exclusive of any increased assessed value
for other urban renewal areas { + and without regard to
adjustments made pursuant to ORS 457.435 (2)(c) or section 7 or
10 (2) to (5) of this 2009 Act + }; or
(B) The urban renewal areas of the plan when added to the areas
included in other urban renewal plans of the municipality
providing for a division of ad valorem taxes, exceed a figure
equal to 15 percent of the total land area of that municipality.
(b) For municipalities having a population of less than 50,000,
according to the latest state census:
(A) The assessed value for the urban renewal areas of the plan,
when added to the total assessed value previously certified by
the assessor for other urban renewal plans of the municipality
for which a division of ad valorem taxes is provided { + , + }
exceeds a figure equal to 25 percent of the total assessed value
of that municipality, exclusive of any increased assessed value
for other urban renewal areas { + and without regard to
adjustments made pursuant to ORS 457.435 (2)(c) or section 7 or
10 (2) to (5) of this 2009 Act + }; or
(B) The urban renewal areas of the plan, when added to the
areas included in other urban renewal plans of the municipality
providing for a division of ad valorem taxes, exceed a figure
equal to 25 percent of the total land area of that municipality.
(3) Property may not be included in more than one urban renewal
area.
SECTION 4. ORS 457.440 is amended to read:
457.440. During the period specified under ORS 457.450:
(1) The county assessor shall determine the amount of funds to
be raised each year for urban renewal within the county levied by
taxing districts in accordance with section 1c, Article IX of the
Oregon Constitution, and ORS 457.420 to 457.460.
(2) Not later than July 15 of each tax year, each urban renewal
agency shall determine and file with the county assessor a notice
stating the amount of funds to be raised for each urban renewal
area as follows:
(a) If the municipality that activated the urban renewal agency
has chosen Option One as provided in ORS 457.435 (2)(a), the
notice shall state that the maximum amount of funds that may be
raised by dividing the taxes under section 1c, Article IX of the
Oregon Constitution, shall be raised for the agency.
(b) If the municipality that activated the urban renewal agency
has chosen Option Two as provided in ORS 457.435 (2)(b), the
notice shall state the amount of funds to be raised by the
special levy.
(c) If the municipality that activated the urban renewal agency
has chosen Option Three as provided in ORS 457.435 (2)(c), the
notice shall state the amount of funds to be raised by special
levy in addition to the amount to be raised by dividing the taxes
as stated in the ordinance adopted under ORS 457.435 (1).
{ + (d) For plans that are initially approved or
substantially amended to increase maximum indebtedness on or
after the effective date of this 2009 Act, the notice must comply
with section 10 of this 2009 Act.
(e) If the agency limits the amount that may be raised by the
division of taxes, as provided in section 7 (1) of this 2009 Act,
the notice shall comply with section 7 (1) of this 2009 Act. + }
{ - (d) - } { + (f) + } If the plan is not { - an
existing plan - } { + described in paragraph (a), (b), (c), (d)
or (e) of this subsection + }, the notice shall state that the
maximum amount of funds that may be raised by dividing the taxes
under section 1c, Article IX of the Oregon Constitution, shall be
raised for the agency.
(3) If a municipality has chosen Option Three pursuant to ORS
457.435, the maximum amount of funds that may be raised for an
urban renewal agency by dividing the taxes as provided in section
1c, Article IX of the Oregon Constitution, may be limited by the
municipality in which the urban renewal agency is located. The
decision of the municipality to limit the amount of funds to be
included in the notice filed under subsection (2) of this section
shall be reflected in the certified statement filed by the urban
renewal agency with the county assessor.
(4) Not later than September 25 of each tax year, the assessor
of any county in which a joint district is located shall provide,
to the assessor of each other county in which the joint district
is located, the assessed values of the property in the joint
district that is located within the county, including the
certified statement value and the increment for each code area
containing any urban renewal area located within the joint
district, and a copy of the notice filed by the urban renewal
agency for the area located within the joint district under
subsection (2) of this section.
(5) 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, shall be computed by the
county assessor as follows:
(a) The county assessor shall compute the total consolidated
billing tax rate for each code area in which an urban renewal
area of the plan is located.
(b) The assessor shall determine the amount of taxes that would
be produced by extending the tax rate computed under paragraph
(a) of this subsection against the increment of each code area.
(c) The total amount determined for all code areas containing
urban renewal areas included within the urban renewal plan is the
maximum amount of funds to be raised for the urban renewal plan
by dividing the taxes.
(6)(a) { - The maximum amount of funds that may be raised for
an urban renewal agency as determined under subsection (5) of
this section, or the maximum amount, as determined under
subsection (2) of this section, shall be certified by the county
assessor to the tax collector. The tax collector - } { + 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 + } shall
include the amount so certified in the percentage schedule of the
ratio of taxes on property prepared under ORS 311.390 and filed
with the county treasurer. Notwithstanding ORS 311.395 (6), the
county treasurer shall credit the amount to the urban renewal
agency and shall distribute its percentage amount to the urban
renewal agency as determined by the schedule at the times other
distributions are made under ORS 311.395 (7).
(b) The county assessor shall notify the urban renewal agency
of the amounts received under subsection (5) of this section or
amounts received pursuant to the notice provided in subsection
(2) of this section for each urban renewal plan area. Any amounts
received by the urban renewal agency under paragraph (a) of this
subsection shall be attributed to the urban renewal plan in which
the urban renewal area is included, shall be paid into a special
fund of the urban renewal agency for the urban renewal plan and
shall be used to pay the principal and interest on any
indebtedness issued or incurred by the urban renewal agency to
finance or refinance the urban renewal plan.
(7) Unless and until the total assessed value of the taxable
property in an urban renewal area exceeds the total assessed
value specified in the certified statement, all of the ad valorem
taxes levied and collected upon the taxable property in the urban
renewal area shall be paid into the funds of the respective
taxing districts.
(8) The agency may incur indebtedness, including obtaining
loans and advances in carrying out the urban renewal plan, and
the portion of taxes received under this section may be
irrevocably pledged for the payment of principal of and interest
on the indebtedness.
(9) The Department of Revenue shall by rule establish
procedures for giving notice of amounts to be raised for urban
renewal agencies and for determination of amounts to be raised
and distributed to urban renewal agencies.
(10) The notice required under this section shall serve as the
notice required under ORS 310.060 for the special levy described
under ORS 457.435.
{ + (11) Notwithstanding any other provision of this chapter,
a city with a population of more than 500,000 on the effective
date of this 2009 Act may, in lieu of its urban renewal agency,
take any actions that an urban renewal agency is authorized to
take under this section and any other actions that are required
to certify, collect, receive, hold and apply tax revenues raised
for the urban renewal agency under section 1c, Article IX of the
Oregon Constitution, and taxes authorized for the urban renewal
agency by section 11 (16), Article XI of the Oregon
Constitution. + }
SECTION 5. ORS 457.450 is amended to read:
457.450. (1)(a) ORS 457.440 shall first apply to the assessment
roll next following the tax roll referred to in ORS 457.430 if
the assessor is provided notice of a plan adoption or amendment
changing area boundaries by the agency prior to January 1 before
the tax year to which the plan first applies.
(b) If the assessor is not provided notice of plan adoption or
amendment changing area boundaries by the agency prior to January
1 before the tax year to which ORS 457.440 would otherwise first
apply, then ORS 457.440 shall first apply to the assessment roll
next following the assessment roll described in paragraph (a) of
this subsection.
(2) When the principal and interest on { + the maximum + }
indebtedness { + of an urban renewal plan + } to which the
portion of taxes is irrevocably pledged for payment under ORS
457.435 or 457.440 is fully paid, or it is found that deposits in
the special fund are sufficient to fully pay principal and
interest on { - that - } { + the maximum + } indebtedness
either through direct payment of the indebtedness or by payment
of principal and interest on bonds or notes issued to finance the
indebtedness, the agency shall notify the assessor of that fact.
(3) All moneys remaining unexpended from the special fund
provided for in ORS 457.435 or 457.440, after payment of all the
principal and interest on indebtedness is provided for, shall be
turned over to the county treasurer by the agency and prorated by
the treasurer back to the taxing districts in which the area, or
part thereof, is located, in proportion to the amount of money in
the fund attributable to each taxing district for the last fiscal
year in which tax levy moneys were paid into the special fund of
the agency under ORS 457.435 or 457.440.
SECTION 6. { + Section 7 of this 2009 Act is added to and made
a part of ORS chapter 457. + }
SECTION 7. { + (1) If the maximum amount of funds under ORS
457.440 is not required to pay the principal and interest on
indebtedness incurred for an urban renewal plan, the urban
renewal agency may take formal action to limit collections under
a plan for a single fiscal year, and may notify the county
assessor pursuant to ORS 457.440 (2)(e) to compute the division
of taxes for the urban renewal area using an assessed value that
is equal to the amount specified by the agency. The assessor may
not use an amount that is greater than the increment.
(2) If the maximum amount of funds under ORS 457.440 is not
required to pay the principal and interest on indebtedness
incurred for an urban renewal plan, the urban renewal agency may
limit future collections under a plan by notifying the county
assessor to permanently increase the amount of the total assessed
value included in the certified statement filed under ORS
457.430. The assessed value included in the certified statement
may not be subsequently decreased except in connection with
boundary changes.
(3) Before taking formal action under this section, the urban
renewal agency shall consult and confer with each taxing district
affected by the urban renewal plan. + }
SECTION 8. ORS 457.460 is amended to read:
457.460. (1) { - An agency shall, by August 1 of each
year, - } { + Not later than January 31 of each year, an urban
renewal agency shall + } prepare a statement on the same basis on
which its financial statements are prepared containing:
(a) The amount of money received during the preceding fiscal
year under ORS 457.420 to 457.460 and from indebtedness incurred
under ORS 457.420 to 457.460;
(b) The purposes and amounts for which any money received under
ORS 457.420 to 457.460 and from indebtedness incurred under ORS
457.420 to 457.460 were expended during the preceding fiscal
year;
(c) An estimate of moneys to be received during the current
fiscal year under ORS 457.420 to 457.460 and from indebtedness
incurred under ORS 457.420 to 457.460;
(d) A budget setting forth the purposes and estimated amounts
for which the moneys which have been or will be received under
ORS 457.420 to 457.460 and from indebtedness incurred under ORS
457.420 to 457.460 are to be expended during the current fiscal
year; and
(e) An analysis of the impact, if any, of carrying out the
urban renewal plan on the tax collections for the preceding year
for all taxing districts included under ORS 457.430.
(2) The statement required by subsection (1) of this section
shall be filed with the governing body of the municipality.
Notice shall be published that the statement has been prepared
and is on file with the municipality and the agency and the
information contained in the statement is available to all
interested persons. The notice shall be published once a week
for not less than two successive weeks before { - September
1 - } { + March 1 + } of the year { - for - } { + in + }
which the statement is { - required - } { + filed, + } in
accordance with ORS 457.115. The notice shall summarize the
information required under subsection (1)(a) to (d) of this
section and shall set forth in full the information required
under subsection (1)(e) of this section.
SECTION 9. { + Section 10 of this 2009 Act is added to and
made a part of ORS chapter 457. + }
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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