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 2895
Senate Bill 642
Sponsored by Senator STARR
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.
Eliminates school district taxes from division of tax method of
funding urban renewal projects.
Applies to urban renewal plans that are adopted or
substantially amended on or after effective date of Act.
A BILL FOR AN ACT
Relating to urban renewal; creating new provisions; and amending
ORS 457.010, 457.420, 457.430 and 457.440.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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, { + and before the effective date
of this 2009 Act, including a school-supported urban renewal plan
that meets the other requirements of this paragraph, + }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 - }
(b) In the case of all other { + school-supported + } 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 { - . - } { + ; and
(c) In the case of any other urban renewal plan that is not a
school-supported urban renewal plan, the total of all district
tax rates used to extend taxes after any adjustment to reflect
offsets under ORS 310.105, but does not include any rate derived
from:
(A) A school district tax;
(B) Any urban renewal special levy under ORS 457.435;
(C) A local option tax, as defined in ORS 280.040, that is
approved by taxing district electors after October 6, 2001; or
(D) 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. + }
(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) 'School district' means a common school district, a
union high school district, an education service district, a
community college district or a community college service
district.
(13) 'School-supported urban renewal plan' means an urban
renewal plan that:
(a) Provides for a division of ad valorem property taxes as
described under ORS 457.420 to 457.460 that includes the division
of school district ad valorem property taxes;
(b) Was adopted by ordinance before the effective date of this
2009 Act; and
(c) Is not changed by substantial amendment, as described in
ORS 457.085 (2)(i), on or after the effective date of this 2009
Act. + }
{ - (12) - } { + (14) + } 'Taxing body' or 'taxing
district' means the state, city, county or any other taxing unit
which has the power to levy a tax.
{ - (13) - } { + (15) + } 'Urban renewal agency' or
'agency' means an urban renewal agency created under ORS 457.035
and 457.045.
{ - (14) - } { + (16) + } '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) - } { + (17) '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. + }
{ + (18) + } '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. - }
SECTION 2. { + Section 3 of this 2009 Act is added to and made
a part of ORS chapter 457. + }
SECTION 3. { + (1) An urban renewal plan that is adopted on or
after the effective date of this 2009 Act may provide for a
division of ad valorem property taxes as described under ORS
457.420 to 457.460 for all taxing districts within the urban
renewal areas of the plan except for school districts.
(2) A school-supported urban renewal plan that is substantially
amended, as described in ORS 457.085 (2)(i), must include as part
of the substantial amendment that the plan will not provide for a
division of ad valorem property taxes as described under ORS
457.420 to 457.460 or that:
(a) All outstanding indebtedness for which divided tax revenues
have been pledged shall be refunded within 90 days after the
effective date of the substantial amendment; and
(b) The indebtedness refunding the outstanding indebtedness
described in paragraph (a) of this subsection may pledge only
divided tax revenues from taxing districts that are not school
districts. + }
SECTION 4. 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; 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; 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) A plan adopted or substantially amended on or after
the effective date of this 2009 Act may not be a school-supported
urban renewal plan. + }
{ - (3) - } { + (4) + } Property may not be included in
more than one urban renewal area.
SECTION 5. ORS 457.430 is amended to read:
457.430. (1) As soon as practicable after the approval of a
plan containing a provision authorized by ORS 457.420, the county
assessor of each county in which an urban renewal area is located
shall prepare, in duplicate, a certified statement of the total
assessed value, as shown on the county assessment roll last
certified prior to the effective date of the ordinance approving
the plan, of all of the taxable real and personal property
contained in the urban renewal area in the county.
(2) Wherever only a part of an urban renewal area is located in
a taxing district, the assessor also shall show in the statement
required by subsection (1) of this section the assessed value of
the real and personal property in the part of the urban renewal
area located in the taxing district.
(3) One copy of the certified statement shall be filed by the
assessor with the agency and the other copy shall constitute a
part of the public records of the county assessor's office.
(4) { + (a) + } Whenever a part of an urban renewal area comes
within the territory of a taxing district either by annexation,
incorporation of a new taxing district or consolidation, after
the approval of a plan containing a provision authorized by ORS
457.420, the county assessor shall in the same manner as under
subsection (3) of this section file a certified statement or an
amendment to a certified statement to show the assessed value of
the real and personal property in that part of the urban renewal
area incorporated by annexation or consolidation into the taxing
district. The assessed value of the real and personal property so
incorporated shall be determined in the same manner and as of the
same date as provided in subsections (1) and (2) of this section.
{ + (b) This subsection does not apply if the annexation,
incorporation or consolidation affects a school district and the
urban renewal plan is not a school-supported urban renewal
plan. + }
(5) When a certified statement is filed as required by
subsection (1) of this section, if the law provides a reduction
or increase of the valuation for tax purposes of the taxable
property contained in the urban renewal area at the time of the
filing, the assessor shall state the total assessed value as it
is so reduced or increased. After a certified statement has been
filed as required by subsection (1) of this section, if a law is
enacted which provides a reduction or increase of the valuation
for tax purposes of the taxable property contained in the urban
renewal area at the time the certified statement was filed, the
assessor shall amend the certified statement annually or as
otherwise required to reduce or increase the stated total
assessed value of the real and personal property accordingly. An
amendment to the certified statement shall be filed in the manner
provided by subsections (3) and (4) of this section.
(6)(a) Subject to subsections (4) and (5) of this section and
paragraph (b) of this subsection, all certified statements and
amendments thereto filed under this section before July 14, 1997,
shall continue to remain in effect.
(b) Effective as of the tax year beginning on July 1, 1997, the
assessor shall amend the amount of assessed value included in a
certified statement by applying to the certified assessed value
of each tax code area located within an urban renewal area the
percentage obtained by dividing the total assessed value within
the tax code area, including growth in assessed value over the
certified assessed value, by the total real market value within
the tax code area.
SECTION 6. 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 { + and section
3 of this 2009 Act + }.
(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) If the plan is not an existing plan, 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, { + and section 3 of this 2009 Act + } 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, { + and section 3 of this
2009 Act + } 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 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. { + If the urban renewal plan for which funds are
raised is not a school-supported urban renewal plan, the tax
collector shall adjust the schedule prepared under ORS 311.390 to
ensure that school district taxes are not distributed to the
urban renewal agency. + } 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.
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