Agenda - 04/19/05 JEO Mtg. - Laserfiche WebLink

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MEASURE NO. 50 EXPLANATORY STATEMENT In 1996, voters approved Measure 47, an amendment to the Oregon Constitution that limits the amount of property taxes that may be collected from each parcel of property. The limitation first applies for the 1997-1998 tax year and reduces taxes on each parcel of property to their level in a prior tax year. Measure 47 permits a three percent increase in taxes each year for tax years following 1997-1998. Measure 47 permits a taxing district to impose new or additional taxes if the taxes have been approved by voters. Measure 47 creates a number of exceptions that allow for taxes to be increased by more than the otherwise applicable limitation. Measure 47 imposes certain spending priority requirements and expenditure limitations. This measure would replace the percentage of tax limitations in Measure 47 with a reduction in the maximum assessed value of property for the 1997-1998 tax year and a limitation on the percentage amount that the maximum assessed value of property may increase each tax year. This measure also directs the Legislative Assembly to generally reduce property tax levies by an average of 17 percent. Specifically, this measure does the following: * Reduces the maximum assessed value of property for the 1997-1998 tax year to 90 percent of the property's assessed value for the 1995-1996 tax year. For tax years subsequent to 1997-1998, the maximum assessed value of property would increase by three percent per year. * Limits increases in assessed value for new property, improvements and certain other events to a fraction of the property's real market value. * Directs the Legislative Assembly to reduce the total amount of levy of taxing districts by a statewide average of 17 percent for the 1997-1998 tax year. Excepts certain taxes from reduction. Adopts policy of distributing reductions so as to approximate Measure 47 reductions. For subsequent tax years, requires the district to permanently fix tax rate at 1997-1998 level. * Permits voters of taxing district to elect to impose local option property taxes in excess of amount otherwise constitutionally permitted. Limits duration of local option tax to five years or ten years, if used to fund capital projects. Prescribes voter participation requirements. * Prohibits local government from increasing fees as alternative revenue source to make up for property tax revenue reduction caused by initial implementation of this measure, unless approved by voters. * Retains existing property tax rate limitation of $5 per $1,000 of value for schools and $10 per $1,000 of value for nonschool government (1990 Measure 5). Retains existing constitutional exception from all tax limitations for taxes levied to pay bonds if bonds are approved by voters. Prescribes voter participation requirements. (This impartial statement explaining the ballot measure was provided by the 1997 Legislature.) http://www, sos.state.or.us/elections/may2097/voters.guide/M50/M50EX.HTM 01/28/2005