Bill Text: OR HJR7 | 2013 | Regular Session | Introduced

Bill Title: Proposing amendment to Oregon Constitution relating to allowable rate of taxes to fund public school system.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Failed) 2013-07-08 - In committee upon adjournment. [HJR7 Detail]

Download: Oregon-2013-HJR7-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 2084

                    House Joint Resolution 7

Sponsored by Representative GELSER; Representatives BUCKLEY,
  GARRETT, KENY-GUYER (Presession filed.)


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

  Proposes amendment to Oregon Constitution to return to former
maximum allowable rate of taxes to fund public school system of
$7.50 per $1,000 of property's real market value and allow period
during which school districts may seek approval of voters for
increase in permanent rate limit.
  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
  PARAGRAPH 1. The Constitution of the State of Oregon is amended
by amending section 11b, Article XI, and by creating new sections
11m, 11n and 11o to be added to and made a part of Article XI,
such sections to read:
   { +  Sec. 11b. + } (1) { + (a) + } During and after the fiscal
year 1991-92, taxes imposed upon any property shall be separated
into two categories: One which dedicates revenues raised
specifically to fund the public school system and one which
dedicates revenues raised to fund government operations other
than the public school system. The taxes in each category shall
be limited as set forth in the table which follows and these
limits shall apply whether the taxes imposed on property are
calculated on the basis of the value of that property or on some
other basis:

                     MAXIMUM ALLOWABLE TAXES
                      For Each $1000.00 of
                  Property's Real Market Value


Fiscal YearSchool SystemOther than Schools


1991-1992  $15.00   $10.00
1992-1993  $12.50   $10.00
1993-1994  $10.00   $10.00
1994-1995  $ 7.50   $10.00
  { -
1995-1996$ 5.00     $10.00 - }

and thereafter
   { +  (b) + } Property tax revenues are deemed to be dedicated
to funding the public school system if the revenues are to be
used exclusively for educational services, including support
services, provided by some unit of government, at any level from
pre-kindergarten through post-graduate training.
  (2) The following definitions shall apply to this section:
  (a) 'Real market value' is the minimum amount in cash which
could reasonably be expected by an informed seller acting without
compulsion, from an informed buyer acting without compulsion, in
an 'arms-length' transaction during the period for which the
property is taxed.
  (b) A 'tax' is any charge imposed by a governmental unit upon
property or upon a property owner as a direct consequence of
ownership of that property except incurred charges and
assessments for local improvements.
  (c) { + (A) + } 'Incurred charges' include and are specifically
limited to those charges by government which can be controlled or
avoided by the property owner  { - . - }  { +  because: + }
  (i)   { - because the - }  { +  The + } charges are based on
the quantity of the goods or services used and the owner has
direct control over the quantity;   { - or - }
  (ii)   { - because the - }  { +  The + } goods or services are
provided only on the specific request of the property owner; or
  (iii)   { - because the - }  { +  The + } goods or services are
provided by the governmental unit only after the individual
property owner has failed to meet routine obligations of
ownership and such action is deemed necessary to enforce
regulations pertaining to health or safety.
   { +  (B) + } Incurred charges   { - shall - }   { + may + }
not exceed the actual costs of providing the goods or services.
  (d) { + (A) + } A 'local improvement' is a capital construction
project undertaken by a governmental unit { + : + }
  (i)   { - which - }  { +  Which + } provides a special benefit
only to specific properties or rectifies a problem caused by
specific properties  { - , and - }  { + ; + }
  (ii)   { - the - }  { +  The + } costs of which are assessed
against those properties in a single assessment upon the
completion of the project  { - , - }  { + ; + } and
  (iii)   { - for - }  { +  For + } which the payment of the
assessment plus appropriate interest may be spread over a period
of at least   { - ten - }  { +  10 + } years.
   { +  (B) + } The total of all assessments for a local
improvement shall not exceed the actual costs incurred by the
governmental unit in designing, constructing and financing the
  (3) The limitations of subsection (1) of this section apply to
all taxes imposed on property or property ownership
except { + : + }
  (a) Taxes imposed to pay the principal and interest on bonded
indebtedness authorized by a specific provision of this
  (b) Taxes imposed to pay the principal and interest on bonded
indebtedness incurred or to be incurred for capital construction
or improvements, provided the bonds are offered as general
obligations of the issuing governmental unit and provided further
that either the bonds were issued not later than November 6,
1990, or the question of the issuance of the specific bonds has
been approved by the electors of the issuing governmental unit.
  (4) In the event that taxes authorized by any provision of this
Constitution to be imposed upon any property should exceed the
limitation imposed on either category of taxing units defined in
subsection (1) of this section, then, notwithstanding any other
provision of this Constitution, the taxes imposed upon such
property by the taxing units in that category shall be reduced
evenly by the percentage necessary to meet the limitation for
that category. The percentages used to reduce the taxes imposed
shall be calculated separately for each category and may vary
from property to property within the same taxing unit. The
limitation imposed by this section shall not affect the tax base
of a taxing unit.
    { - (5) The Legislative Assembly shall replace from the
State's general fund any revenue lost by the public school system
because of the limitations of this section. The Legislative
Assembly is authorized, however, to adopt laws which would limit
the total of such replacement revenue plus the taxes imposed
within the limitations of this section in any year to the
corresponding total for the previous year plus 6 percent. This
subsection applies only during fiscal years 1991-92 through
1995-96, inclusive. - }
   { +  SECTION 11m. + }  { + (1)(a) Notwithstanding subsection
(3) of section 11 of this Article, during the calendar years 2015
through 2019, or a period determined by the Legislative Assembly,
a school district may increase the limit on the rate of ad
valorem property tax imposed by the district by submitting the
increased permanent rate limit to a vote of the voters in the
  (b) The increased permanent rate limit must be approved by a
majority of voters voting on the question.
  (2) For calendar years beginning after 2019, the Legislative
Assembly may provide by law for periods during which a school
district may increase the district's permanent rate limit in the
manner provided in subsection (1) of this section.
  (3) As used in the laws of this state, unless the context
requires otherwise, the 'permanent rate limit' and 'permanent
rate limitation' of a school district include the permanent rate
limit of the school district as increased pursuant to this
section. + }
   { +  SECTION 11n. + }  { + Notwithstanding paragraph (b) of
subsection (11) of section 11 of this Article, for property tax
years beginning on or after July 1, 2015, the limits on property
taxes per $1,000 of real market value described in subsection (1)
of section 11b of this Article shall be determined on the basis
of property taxes imposed in each geographic area taxed by the
same local taxing districts. + }
   { +  SECTION 11o. + }  { + (1) The amendments to section 11b
of this Article by House Joint Resolution 7 (2013) apply to
property tax years beginning on or after July 1, 2015.
  (2) This section is repealed on January 2, 2019. + }

  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. + }