Bill Text: OR HJR23 | 2013 | Regular Session | Introduced

---

Bill Title: Proposing amendment to Oregon Constitution relating to adoption of land value taxation system by local taxing districts.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HJR23 Detail]

Download: Oregon-2013-HJR23-Introduced.html

---

     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 2140

                    House Joint Resolution 23

Sponsored by COMMITTEE ON REVENUE

                             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.

  Proposes amendment to Oregon Constitution to allow local taxing
districts to adopt land value taxation system that taxes land at
one rate and all other property at lesser rate. Requires land
value taxation system to be in lieu of uniform ad valorem
property taxation system of district. Exempts land value tax from
constitutional limits on property taxes.
  Refers proposed amendment to people for their approval or
rejection at next regular general election.

                        JOINT RESOLUTION
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 11m to be added to and made a part of
Article XI, such section to read:
   { +  SECTION 11m. + }  { + (1)(a) The Legislative Assembly
shall enact laws to authorize a local taxing district to adopt a
land value taxation system that taxes land at one rate and all
other property at a lesser rate.
  (b) A measure submitting the question to district voters may be
referred by resolution of the district governing body, by
resolution of an elected tax supervising and conservation
commission that exists in the county in which at least half the
territory of the district is located, or by initiative petition.
The measure may be voted on only at a general election.
  (2) A land value taxation system adopted pursuant to this
section is in lieu of the uniform ad valorem property taxation
system of the local taxing district, except for taxes imposed to
pay principal and interest on bonds issued prior to the effective
date of the land value taxation system adopted pursuant to this
section.
  (3) The land value taxation system adopted by a jurisdiction
shall apply in:
  (a) All local taxing districts within the adopting
jurisdiction.
  (b) Any local taxing district in which more than half the tax
parcels are located within the adopting jurisdiction.
  (4)(a) Taxes collected under a land value taxation system
adopted pursuant to this section shall be computed on the real
market value of property subject to the tax as of January 1 of
the current assessment year.
  (b) All taxable parcels shall be taxed at the same differential
tax rate. A class of property defined by land use may not be
taxed at a rate different from any other class of property
defined by land use.
  (c) The tax rate applicable to improvement assessments may not
equal or exceed the rate applicable to land assessments.
  (5) For the first property tax year in which a jurisdiction
adopts a land value taxation system, the total revenue collected
by each local taxing district within the adopting jurisdiction
shall equal the total revenue that would have been payable under
the uniform ad valorem property taxation system.
  (6)(a) A jurisdiction that adopts a land value taxation system
shall set an annual land tax rate ratio by defining the
proportion of the total rate that applies to land assessments and
setting the remaining proportion as the rate applied to
improvement assessments.
  (b) Each local taxing district within the adopting jurisdiction
shall set its annual differential tax rates according to the land
tax rate ratio defined by the adopting jurisdiction.
  (7) A jurisdiction may phase in a land value taxation system
over a multiyear period by incrementally increasing the land tax
rate ratio.
  (8)(a) A jurisdiction that adopts a land value taxation system
shall evaluate the annual land rent capture rate derived from the
total land tax revenue within the jurisdiction and may adjust the
land tax rate ratio in order to achieve an optimal land rent
capture rate.
  (b) During periods of high land price inflation within the
local real estate market, a jurisdiction may raise the land tax
rate ratio in order to decrease the pace of the inflation.
  (9)(a) The Department of Revenue shall adopt rules that:
  (A) Establish operational guidelines for administering a land
value taxation system;
  (B) Establish methods for calculating differential tax rates;
and
  (C) Advise county assessors in assessing land values, using
methods that conform to paragraph (b) of this subsection.
  (b) For purposes of assessing land values:
  (A) A mass appraisal technique is to be preferred.
  (B) The goal is to ensure that the assessed land values are
current, closely approximate real market values and do not lag
behind changes in land values as reflected in property sales.
  (C) An assessor may not:
  (i) Use a land-residual method that separates land values from
improvement values;
  (ii) Discount the value of large lots that could legally be
subdivided and built upon; or
  (iii) Assign a lower value to excess land on individual
large-lot parcels, except where state or local environmental
regulations imposed on the property restrict the use of the
excess land and diminish its value.
  (10)(a) The limitations of sections 11 and 11b of this Article
do not apply to a land value taxation system adopted pursuant to
this section.
  (b) Article I, section 32, and Article IX, section 1, of this
Constitution, do not apply to a land value taxation system
adopted pursuant to this section. + }

  PARAGRAPH 2.  { + The amendment proposed by this resolution
shall be submitted to the people for their approval or rejection
at the next regular general election held throughout this
state. + }
                         ----------