CC Minutes - 05/22/06 Work Session

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Mr. Klein clarified that the term “citizen-initiated” meant requested by the property owner because the rezoning would not become effective until the tax was paid. Ms. Taylor said she would support Option 1 with a 25 percent tax and Ms. Bettman’s amendment with the caveat that the tax would not be collected until the use changed. She felt that Option 3 was too expensive to implement. Mr. Papé thanked staff for a well written AIS. He asked if churches and nonprofit organizations would be exempt from the givings tax. Mr. Klein said the option did not contain any exemptions as written, although the council could direct staff to include specific exemptions. Mr. Papé asked when a property would have increased value on the tax rolls and provide increased revenue. Senior Management Analyst Larry Hill said that Lane County typically did not revalue property that had a change in use or plan designation until the County became aware that the change had actually occurred and that could be immediately or months or years later. He said typically the County was notified that a change occurred when there was a land use permit filed and the City transmitted that information to the County. He said it was not possible to rely on the County’s tax records to indicate the value at the current zoning or plan designation. Referring to Ms. Bettman’s proposal to not tax property brought into the UGB until it was sold, Mr. Papé said he could not agree with that if the new owner was going to keep the property in the same use, such as a homestead. Ms. Solomon said the option still felt like double taxation and she would not support it. Ms. Solomon, seconded by Ms. Ortiz, moved to direct the City Manager to prepare an ordi- nance for Option 1 with a flat tax percentage of a range and schedule a public hearing be- fore the Planning Commission and City Council on the draft ordinance. Ms. Bettman offered 25 percent as a friendly amendment. Ms. Solomon declined to accept the amendment. Ms. Bettman, seconded by Ms. Taylor, moved to amend the motion to specify a flat tax of 25 percent. Ms. Bettman said the tax rate representing a starting point for discussion. She said that Measure 37 liability in terms of future claims would require a funding source. Mr. Kelly said that the rate would give the public something to react to during public hearings and he would support the amendment. The vote on the amendment to the motion was a 4:4 tie; Ms. Bettman, Ms. Taylor, Mr. Kelly, and Ms. Ortiz voting in support, and Mr. Papé, Mr. Poling, Mr. Pryor and Ms. Solomon voting in opposition. Mayor Piercy cast a vote in support of the motion and it passed on a final vote of 5:4. MINUTES—Eugene City Council May 22, 2006 Page 5 Work Session