Measure No. 77

Senate Joint Resolution 1--Referred to the Electorate of Oregon by the 1999 Legislature to be voted on at the Primary Election, May 16, 2000.

BALLOT TITLE 77

AMENDS CONSTITUTION: MAKES CERTAIN LOCAL TAXING DISTRICTS' TEMPORARY PROPERTY TAX AUTHORITY PERMANENT

RESULT OF "YES" VOTE: "Yes" vote changes portions of certain local districts' property tax authority from temporary to permanent.

RESULT OF "NO" VOTE: "No" vote retains current local districts' temporary and permanent property tax authority.

SUMMARY: Amends Constitution. Adjusts permanent limits on certain local taxing districts' property tax rates to include portions of temporary local option levy approved by voters for the 1997-1998 tax year. Adjustment limited to that portion of the local option levy that was approved in that district as a serial or one-year levy to replace an existing serial or one-year levy. Requires that district's temporary property tax levy authority be reduced by same amount as adjustment made to district's permanent property tax authority.

ESTIMATE OF FINANCIAL IMPACT: This measure affects both the permanent and local option tax rate limits only of Deschutes County, Linn County and the city of Sweet Home. In the first year, 2000-01, this measure will reduce the total authority for these three government units to impose operating taxes by a total of approximately $824,581. This measure shifts a part of the temporary local option authority of these three units to permanent rate authority. It requires their total tax authority to be reduced as outlined in the 1997 property tax limitation Measure 50. Deschutes County's total tax authority is estimated to be reduced by $289,415 in 2000-01. Their local option authority expires beginning the following year, 2001-02. Linn County's tax authority is estimated to be reduced by $397,118 in 2000-01 and $72,928 in 2001-02. Their tax authority would increase an estimated $267,472 in 2002-03, depending upon the growth in property values in the county. The city of Sweet Home's tax authority will be reduced by an estimated $138,076 in 2000-01, $100,300 in 2001-02, and $60,635 in 2002-03. Both Linn County's and the city of Sweet Home's local option authority expires beginning the following year, 2003-04.

In subsequent years, revenue estimates depend on whether local voters renew expiring levies. The level of local option tax authority that voters approve will also affect the total tax revenue effects from this measure. This measure does not affect a taxing dis-trict's ability to seek additional local option tax authority from local voters. The dollar amount raised from the new permanent tax rate authority established under this measure cannot be increased beyond the growth in assessed value. These estimates assume an assessed value growth of 5% based on historical trends.

There is no financial effect on state government revenue or expenditures.

Text of Measure

Be It Resolved by the Legislative Assembly of the State of Oregon:

    PARAGRAPH 1. The Constitution of the State of Oregon is amended by creating a new section 11k to be added to and made a part of Article XI, such section to read:
    SECTION 11k. (1) For tax years beginning on or after July 1, 2000, notwithstanding section 11 of this Article, a local taxing district shall have a permanent limit on the rate of ad valorem property taxes that is equal to the tax rate that would have been achieved for the tax year beginning July 1, 1997, if that portion of a levy described in paragraph (c) of subsection (7) of section 11 of this Article that represented replacement authority for an expiring serial or one-year levy last imposed in the tax year beginning July 1, 1996, had been treated as a levy described in paragraph (b) of subsection (7) of section 11 of this Article. The levy described in paragraph (c) of subsection (7) of section 11 of this Article, or a successor levy, shall be reduced in the manner provided by law.
    (2) Subsection (1) of this section applies only to the permanent rate limit of a local taxing district located in a county in which a local taxing district imposed levies described in paragraph (c) of subsection (7) of section 11 of this Article that were greater than $1.2 million for the tax year and for which the amount treated as replacement authority exceeded $900,000.
    (3) The Legislative Assembly shall enact legislation to achieve the result described in this section.

PARAGRAPH 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at a special election held throughout this state on the same date as the next biennial primary election.

NOTE: Boldfaced type indicates new language; [brackets and italic] type indicates deletions or comments.

Arguments in Favor

Explanatory Statement

Legislative Argument in Support

Statewide Measures

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