Laserfiche WebLink
<br /> Mr. Gleason said school districts could maintain their present tax base if the <br /> measure is approved. Ms. Field added that school districts would receive 70 <br /> - percent of the sales tax revenue. After two yearst school districts could <br /> request an increase in their property tax base. <br /> Answering questions from Ms. Bascom and Ms. Ehrmant Ms. Field said the present <br /> six percent tax base limitation would continue if Measure 7 passes. She said <br /> the OEA estimates that revenue of about $9.6 million will be recei ved and <br /> about $8.97 million of it would be distributed to schools and property owners. <br /> B. Ballot Measure 9--Constitutional Property Tax Limitation <br /> Ms. Field said Measure 9 is a constitutional amendment and is sponsored by Ray <br /> Phillips. She said Measure 9 would limit property taxes to 1.5 percent and <br /> restrict increases in the assessed value of properties. It would change the <br /> property tax system in Oregon from a tax base system to a rate system. The <br /> measure would limit the property tax rate in 1987-88 to either 2 percent of <br /> the average assessed property value or the 1985-86 property rate rate <br /> (whichever is less). From 1988-89 ont the property tax rate would be limited <br /> to 1.5 percent of the average assessed property value or the 1985-86 property <br /> tax rate (whichever is less). <br /> Ms. Field said Measure 9 does not restrict sales taxes. If voters approve a <br /> property tax increase, it limits the growth of the assessed value of property <br /> tax bases to two percent a year. Measure 9 permits elections on the increase <br /> only twice a year. The measure does not provide any relief for renters or <br /> people with low incomes. She said the measure creates a tax base for some <br /> school districts that need it; consequently, OEA is not likely to oppose the <br /> - Measure 9. <br /> Ms. Field said approval of Measure 9 would decrease Eugene property tax <br /> revenue $6 to $8 million in 1987-88. From 1988-89 on t it would decrease <br /> Eugene property tax revenue $14 to $20 mill ion. She sa i d the State <br /> Legislature will have to determine how to distribute property taxes after <br /> 1987-88. <br /> C. Ballot Measure l1--Constitutional Homeowner'st Renter's <br /> Property Tax Relief Program; Sales Tax Limitation Measure <br /> Ms. Field said Measure 11 is a constitutional amendment. It would become <br /> effective in 1987-88. It prohibits sales taxes unless they are approved by <br /> initiative petitions. It would exempt $25,000 or half of the assessed value <br /> of owner-occupied housing. Measure 11 would require the State to reimburse <br /> cities a minimum of 80 percent of the property tax revenue lost by passage of <br /> the measure. It indicates lottery revenues, and probably income taxes would <br /> be used to reimburse cities for the decrease in property taxes. It requi res a <br /> renter relief program equal to the homeowner's exemption. The HARRP program <br /> would continue. <br /> Ms. Field said Measure 11 would have little direct effect on the City because <br /> the property tax rate could be increased to make up for the homeowner's and <br /> renter's exemptions. However, lottery funds have been used for economic <br /> e MINUTES--Eugene City Council Dinner/Work Session September 22, 1986 Page 2 <br />