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