07/18/1979 Meeting - Laserfiche WebLink

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, principal residence as of the 30th of June, but they must file to receive it. There are three categories of renters: 1) Those who have earned - $15,000 or less. They have already filed their HARRP form. They do not have to do anything. They will receive their HARRP and 4.7 percent additional refund also. 2) Those that earn $16,000 to $17,500. They need to file and get their refund along with the 4.7-percent renter re 1 i ef. 3) Those that earned over $17,500. They need to file a special renter relief form. Mr. Baines said that he would talk about the 30 percent that isn't 30 percent, and the five percent that isn't five percent. The 30 percent that isn't 30 percent: By calculations, only 12 percent of the present City budget is not covered by the 30-percent tax relief. That is to say, there is 12 percent bonded indebtedness and the interest not covered by the State 30 percent. Existing serial levies are not excluded. Future serial levies for capital construction are excluded from the 30-percent State-paid tax relief. The taxing district will get the same number of dollars, but the taxpayer pays 30 percent less on those items which are not present bonded indebtedness and future bonded indebtedness, and serial levies for capital construction (the Legislature did not want to pay for locally-voted monuments), so the person in the 4-J District will get about 27 percent (30 percent of 12 percent not covered is three percent, and subtracting that from the 30 percent of the total tax bill) tax paid by the State of Oregon. It will be on their tax bill when it comes in October. People who do not file for property tax relief until after August 1, 1979, will receive a check from the State of Oregon after - January 1, 1980. The five percent that is not five percent: In growth counties, the five percent will not be five percent. The Legislature was concerned that the tax burden had shifted from commercial to residential. They cited the phasing out of the inventory tax in the last few years, the change of Western Oregon to a severence tax (timber is taxed when it is cut and not when it is standing), and the rise in the value of residential property, and the new residential construction. The Legislature separated the OOPRS and the non-OOPRS. They asked the counties to report how much property they had separately and what the indicated ratio is, market value as a ratio of the previous assessed value of the property. The counties sill send these rat i os to the State wh i ch wi 11, in turn, determi ne the state- wide ratio (assessed value over market or true cash value). Mr. Baines said to suppose that the statewide average is an increase of 20 percent over the previous year's assessed value and to suppose the homestead (OOPR) accounts in some growth counties is 30 percent. The State would return to the counties a correction factor (.875). The counties would take the correction factor and multiply it by the .130, and the result would be the increase that the counties would use to change the property value. The actual increase to change the property value would be 1.1375, or 14 percent, and that is the five percent that is not five percent. This program will start a year from this coming October, when the 1980-81 values show on the tax statements. - 7/18/79--5 38~