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 1986
Senate Bill 744
Sponsored by Senator MONROE, Representatives SCHAUFLER, J SMITH;
Senator MONNES ANDERSON, Representative SHIELDS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Permits urban renewal plans to include school construction or
reconstruction projects and funding for fire apparatus to serve
urban renewal areas. Permits certain urban renewal plans to add
certain noncontiguous lands to urban renewal areas. Requires
urban renewal agencies to categorize tax increment revenues used
for school projects within urban renewal plan as school system
funds.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to urban renewal; amending ORS 310.150, 457.010,
457.085, 457.170, 457.190, 457.220 and 457.460; and prescribing
an effective date.
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 { - . - } { + ; or
(j) The existence of physical, economic or financial conditions
that prevent or impede the construction or reconstruction of
public facilities within the area or in a nearby area. + }
(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
(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 { + amount of + } 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 { + or nearby
noncontiguous land + } 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.
SECTION 2. ORS 457.085 is amended to read:
457.085. (1) An urban renewal agency shall provide for public
involvement in all stages in the development of an urban renewal
plan.
(2) An urban renewal plan proposed by an urban renewal agency
shall include all of the following:
(a) A description of each urban renewal project to be
undertaken.
(b) An outline for the development, redevelopment,
improvements, land acquisition, demolition and removal of
structures, clearance, rehabilitation or conservation of the
urban renewal areas of the plan.
(c) A map and legal description of the urban renewal areas of
the plan.
(d) An explanation of its relationship to definite local
objectives regarding appropriate land uses and improved traffic,
public transportation, public utilities, telecommunications
utilities, recreational and community facilities and other public
improvements.
(e) An indication of proposed land uses, maximum densities and
building requirements for each urban renewal area.
(f) A description of the methods to be used for the temporary
or permanent relocation of persons living in, and businesses
situated in, the urban renewal area of the plan.
(g) An indication of which real property may be acquired and
the anticipated disposition of said real property, whether by
retention, resale, lease or other legal use, together with an
estimated time schedule for such acquisition and disposition.
(h) If the plan provides for a division of ad valorem taxes
under ORS 457.420 to 457.460, the maximum amount of indebtedness
that can be issued or incurred under the plan.
(i) A description of what types of possible future amendments
to the plan are substantial amendments and require the same
notice, hearing and approval procedure required of the original
plan under ORS 457.095 as provided in ORS 457.220, including but
not limited to amendments:
(A) Adding land to the urban renewal area, except for an
addition of land that totals not more than one percent of the
existing area of the urban renewal area.
(B) Increasing the maximum amount of indebtedness that can be
issued or incurred under the plan.
(j) For a project { - which - } { + that + } includes a
public building, an explanation of how the building serves or
benefits the urban renewal area.
{ + (k) For a project that includes an undertaking to acquire
funding for fire apparatus to primarily serve the urban renewal
area, evidence of the projected useful life of the fire apparatus
and an explanation of how the fire apparatus will primarily serve
the urban renewal area. + }
(3) An urban renewal plan shall be accompanied by a report
which shall contain:
(a) A description of physical, social and economic conditions
in the urban renewal areas of the plan and the expected impact,
including the fiscal impact, of the plan in light of added
services or increased population;
(b) Reasons for selection of each urban renewal area in the
plan;
(c) The relationship between each project to be undertaken
under the plan and the existing conditions in the urban renewal
area;
(d) The estimated total cost of each project and the sources of
moneys to pay such costs;
(e) The anticipated completion date for each project;
(f) The estimated amount of money required in each urban
renewal area under ORS 457.420 to 457.460 and the anticipated
year in which indebtedness will be retired or otherwise provided
for under ORS 457.420 to 457.460;
(g) A financial analysis of the plan with sufficient
information to determine feasibility;
(h) A fiscal impact statement that estimates the impact of the
tax increment financing, both until and after the indebtedness is
repaid, upon all entities levying taxes upon property in the
urban renewal area; and
(i) A relocation report which shall include:
(A) An analysis of existing residents or businesses required to
relocate permanently or temporarily as a result of agency actions
under ORS 457.170;
(B) A description of the methods to be used for the temporary
or permanent relocation of persons living in, and businesses
situated in, the urban renewal area in accordance with ORS 35.500
to 35.530; and
(C) An enumeration, by cost range, of the existing housing
units in the urban renewal areas of the plan to be destroyed or
altered and new units to be added.
(4) An urban renewal plan and accompanying report shall be
forwarded to the planning commission of the municipality for
recommendations { - , prior to - } { + before + } presenting
the plan to the governing body of the municipality for approval
under ORS 457.095.
(5) An urban renewal plan and accompanying report shall be
forwarded to the governing body of each taxing district affected
by the urban renewal plan and the agency shall consult and confer
with the taxing districts { - prior to - } { + before + }
presenting the plan to the governing body of the municipality for
approval under ORS 457.095. Any written recommendations of the
governing body of each taxing district shall be accepted,
rejected or modified by the governing body of the municipality in
adopting the plan.
(6) No urban renewal plan shall be carried out until the plan
has been approved by the governing body of each municipality
pursuant to ORS 457.095 and 457.105.
SECTION 3. ORS 457.170 is amended to read:
457.170. An urban renewal agency may plan or undertake any
urban renewal project to carry out an approved urban renewal
plan. In planning or undertaking an urban renewal project, the
urban renewal agency has the power:
(1) To carry out any work or undertaking and exercise any
powers which a housing authority is authorized to perform or
exercise under ORS 456.055 to 456.235, subject to the provisions
of this chapter provided, however, that ORS 456.155 and 456.160
do not limit the power of an agency in event of a default by a
purchaser or lessee of land in an urban renewal plan to acquire
property and operate it free from the restrictions in those
sections.
(2) To carry out any rehabilitation or conservation work in an
urban renewal area.
(3) To acquire real property, by condemnation if necessary,
when needed to carry out the plan.
(4) To clear any areas acquired, including the demolition,
removal or rehabilitation of buildings and improvements.
(5) To install, construct or reconstruct streets, utilities and
site improvements in accordance with the urban renewal plan.
{ + (6) To undertake a project to acquire fire apparatus with
a projected useful life of 10 years or more, if the fire
apparatus will primarily serve the urban renewal area. + }
{ + (7) To construct or reconstruct public schools in
accordance with the urban renewal plan. + }
{ - (6) - } { + (8) + } To carry out plans for a program of
the voluntary repair and rehabilitation of buildings or other
improvements in an urban renewal area in accordance with the
urban renewal plan.
{ - (7) - } { + (9) + } To assist in relocating persons
living in, and property situated in, the urban renewal area in
accordance with the approved urban renewal plan and to make
relocation payments.
{ - (8) - } { + (10) + } To dispose of, including by sale
or lease, any property or part thereof acquired in the urban
renewal area in accordance with the approved urban renewal plan.
{ - (9) - } { + (11) + } To plan, undertake and carry out
neighborhood development programs consisting of urban renewal
project undertakings in one or more urban renewal areas which are
planned and carried out on the basis of annual increments in
accordance with the provisions of this chapter for planning and
carrying out urban renewal plans.
{ - (10) - } { + (12) + } To accomplish a combination of
the things listed in this section to carry out an urban renewal
plan.
SECTION 4. 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) { + (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) The maximum amount of indebtedness that may be issued
or incurred under an urban renewal plan adopted by ordinance on
or after November 1, 2009, that provides for a division of taxes
pursuant to ORS 457.440 must 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, that
are based on the anticipated project completion dates in the
report accompanying the plan. Anticipated completion dates may
not exceed 20 years from the date the ordinance approving the
plan is adopted.
(C) If the maximum amount of indebtedness that may be issued or
incurred under an urban renewal plan is increased by amendment of
the plan on or after November 1, 2009, the increased amount must
be based upon the anticipated project completion dates in the
report accompanying the amendment. Anticipated completion dates
may not exceed 20 years from the date the ordinance approving the
amendment is adopted. + }
(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.
SECTION 5. ORS 457.220 is amended to read:
457.220. (1) Except for the provisions of subsection (2) 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 { + not + } more than 20
percent of the total land area of the original plan
{ - shall - } { + may + } be added to the urban renewal areas
of a plan by amendments.
{ + (4)(a) In addition to and not in lieu of land added to an
urban renewal area under subsection (3) of this section,
noncontiguous land may be added to an urban renewal area of a
plan by amendment if:
(A) The cumulative area of the noncontiguous land does not
exceed 10 percent of the urban renewal area described in the
original plan;
(B) The plan was in effect for at least 10 years before the
adoption of the amendment adding the noncontiguous land; and
(C) The amount of money available to pay the cost of the plan
has increased from the estimates required to be filed with the
original plan under ORS 457.085 by at least 10 percent.
(b)(A) An amendment adding noncontiguous land to an urban
renewal area must include an increase in the maximum amount of
indebtedness allowed under the plan. The increase in the maximum
amount of indebtedness allowed under this subsection is in
addition to and not in lieu of other increases in the maximum
amount of indebtedness otherwise authorized by this chapter.
(B) An amount of not more than 15 percent of the difference
between the original maximum amount of indebtedness and the
maximum amount of indebtedness allowed under the amendment
adopted under this subsection must be allocated by the plan for
projects that are:
(i) Located in the noncontiguous area; and
(ii) Eligible for tax increment expenditures under ORS
457.170. + }
SECTION 6. ORS 457.460 is amended to read:
457.460. (1) An agency shall, by { - August 1 of each - }
{ + January 31 of the year next following the close of the
fiscal + } year, 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 { - ; - } { + , stated separately
for each urban renewal plan administered by the agency;
(b) The amount of money in the special fund of the urban
renewal agency attributed to each urban renewal plan at the end
of the preceding fiscal year;
(c) The total outstanding indebtedness for each urban renewal
plan administered by the agency at the end of the preceding
fiscal year; + }
{ - (b) - } { + (d) + } 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) - } { + (e) + } 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) - } { + (f) + }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) - } { + (g) + } 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 { +
and the county assessor of the county in which the administrative
offices of the agency are located + }. Notice shall be published
that the statement has been prepared and is on file with the
municipality { + , the county assessor + } 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 - }
{ + 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) - } { + (f) + }
of this section and shall set forth in full the information
required under subsection { - (1)(e) - } { + (1)(g) + } of
this section.
SECTION 7. ORS 310.150 is amended to read:
310.150. (1) The three categories within which ad valorem
property tax items are to be categorized in the notice to be
filed under ORS 310.060 and for which category rates of ad
valorem property taxes are to be computed under ORS 310.090 and
tentative consolidated category rates are to be computed for each
code area under ORS 310.147 are as follows:
(a) Taxes levied or imposed for the purpose of funding exempt
bonded indebtedness.
(b) Taxes levied or imposed for the purpose of funding the
public school system and that are not described in paragraph (a)
of this subsection.
(c) Taxes levied or imposed for the purpose of funding
government operations other than public school system operations
and that are not described in paragraph (a) of this subsection.
(2) After computation of the tentative ad valorem property tax
consolidated rate for each category under ORS 310.147, and after
calculation of the amount of ad valorem property taxes to be
imposed on properties in the county, but before extending any
taxes on the assessment and tax roll, the assessor shall
determine whether the total amount of taxes on property to be
imposed on each property in the code area in each category is
within the limits described in subsection (3) of this section.
(3)(a) The assessor shall determine whether the ad valorem
property taxes to be imposed on any property exceed the limits
described in this subsection in order to ensure, as guaranteed in
section 11 (11) and 11b, Article XI of the Oregon Constitution,
that taxes imposed in each geographic area taxed by the same
local taxing districts do not exceed $5 (public school system)
and $10 (other government) per $1,000 of real market value.
(b) For the category of taxes imposed for the purpose of
funding the public school system that are not for the purpose of
paying principal and interest on exempt bonded indebtedness, if
the tentative consolidated ad valorem property tax rate
determined under subsection (2) of this section exceeds $5 per
$1,000 of real market value, the consolidated rate shall be
adjusted as provided in this section so that the consolidated
rate for the public school system category equals $5 per $1,000
of real market value.
(c) For the category of taxes imposed for the purpose of
funding government operations other than the public school system
and that are not for the purpose of paying principal and interest
on exempt bonded indebtedness, if the tentative consolidated ad
valorem property tax rate exceeds $10 per $1,000 of real market
value, the consolidated rate shall be adjusted as provided in
this section so that the consolidated rate for the other
government category equals $10 per $1,000 of real market value.
(d) For the category of taxes imposed for the purpose of paying
principal and interest on exempt bonded indebtedness, the
tentative consolidated rate determined under subsection (2) of
this section shall be the consolidated rate for the exempt bonded
indebtedness category.
(4) If the taxes on property in either category to be imposed
on any property in the code area exceed the limit established for
that category in subsection (3) of this section, the assessor
shall reduce the taxes by applying a reduction ratio.
(5)(a) If local option taxes described under ORS 280.040 to
280.145 have been adopted by one or more taxing districts in the
code area, the reduction ratio shall be calculated under this
subsection and applied only to the local option taxes imposed on
the property for which the taxes are being determined.
(b) Local option taxes subject to compression under this
subsection include urban renewal division of tax revenue that is
derived from the division of local option tax authority.
(c) The numerator of the reduction ratio shall be the amount
obtained (but not less than zero) by subtracting the tentative
consolidated category rate of ad valorem property taxes that are
not local option taxes from the maximum rate of ad valorem
property taxes for the category described in subsection (3) of
this section.
(d) The denominator for the ratio shall be the total rate of
all local option taxes for the category.
(e) The assessor shall multiply the reduction ratio determined
under this subsection by each local option tax amount to which
the property is subject in the category.
(f) So reduced, the assessor shall again determine if the total
taxes for the category to be imposed on the property exceed the
limits described in subsection (3) of this section. If the
reduced taxes for the category do not exceed the category limit,
such taxes shall be the taxes used to compute the consolidated
rate for the code area in which the property is located. If the
reduced taxes for the category still exceed the category limit
after all local option taxes have been eliminated, the taxes in
the category shall be subject to further reduction under
subsection (6) of this section.
(6)(a) If the property is not subject to local option taxes or
if all local option taxes have been eliminated as a result of the
application of the reduction ratio calculated under subsection
(5) of this section, and the tentative consolidated rate
determined under ORS 310.147 for the category exceeds the maximum
rate of ad valorem property taxes for the category described in
subsection (3) of this section, the reduction ratio shall be
determined under this subsection.
(b) The numerator of the reduction ratio shall be the maximum
rate permitted for the category described in subsection (3) of
this section.
(c) The denominator of the reduction ratio shall be the
tentative consolidated category rate under ORS 310.147 (or the
category rate applicable to the property after the reduction
under subsection (5) of this section, if applicable).
(d) The assessor shall multiply the reduction ratio determined
under this subsection by the amount of each taxing district item
of ad valorem property tax that is a component of the tentative
consolidated category rate for the code area in which the
property is located.
(7) In determining whether the taxes described in subsection
(1)(c) of this section exceed the limitation under subsection
(3)(c) of this section, all moneys raised through the urban
renewal special levy described in ORS 457.435 and all moneys
raised through the urban renewal division of tax, including
amounts derived from exempt bonded indebtedness authority and
local option tax authority, { + but not including moneys raised
through the urban renewal division of tax that are used for urban
renewal projects for the construction or reconstruction of public
schools, + } must be categorized as subject to the limitation
described in subsection (3)(c) of this section.
SECTION 8. { + This 2009 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-fifth
Legislative Assembly adjourns sine die. + }
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