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.) 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 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 Oregon: 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 ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ Fiscal YearSchool SystemOther than Schools ____NOTE_TO_WEB_CUSTOMERS:__________________________________ THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR. FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE. _______________________________________________________________ 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 ____________________________________________________________ END OF POSSIBLE IRREGULAR TABULAR TEXT ____________________________________________________________ { + (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 project. (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 Constitution. (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 district. (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. + } ----------