Item 3: Ratification of IGR Committee Actions and Direction on Legislative Policy

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alternative fuels. The best approach, however, would be to allow the City to continue to be proactive in doing the right thing while maintaining local control over decision making. SB 0349 Relating Clause: Relating to senior citizen principal residence property tax exemption; providing that this Act shall be referred to the people for their approval or rejection. Title: Establishes principal residence property tax exemption of 50 percent for certain senior citizens. Applies to tax years beginning on or after July 1, 2011. Establishes principal residence property exemption of 50 percent from local option ad valorem property taxation for certain senior citizens. Applies to local option property taxes approved after January 1, 2011, and to tax years beginning on or after July 1, 2011. Refers measure to people for approval or rejection at next general election. Sponsored by: Senator MONROE (at the request of Ron McCarty) URL:http://www.leg.state.or.us/09reg/measpdf/sb0300.dir/sb0349.intro.pdf RespondentDept Updated Priority Policy Poli Numb Recommendation Contact Larry Hill Larry Hill CS-FIN 1/21/2009 Pri 2 Yes II. A2 Oppose Comments: SB 349, if approved by the voters at the next general election, would create a 50% property tax exemption for the principal residence of low income senior citizens who have applied to and been approved for the exemption by the state. The state would be required to replace the revenue that would be lost. The measure does not say where this money would come from. In light of the huge revenue shortfall the state is facing, and the existance of the senior property tax deferral program that already provides property tax relief to low income seniors, this bill is both financially irresponsible and unnecessary. Though it is not possible to estimate the cost of the proposal, it would very likely have a negative impact on state programs, possibly including state shared revenues, if enacted and funded. SB 0351 Relating Clause: Relating to property tax exemption for religious leader dwellings. Title: Exempts from property taxation dwelling provided by religious organization for its spiritual leader and lot on which dwelling is located. Provides that exemption does not apply if spiritual leader occupies another residence as primary dwelling or if religious organization or occupant of dwelling receives pay for use of property, unless pay is for foster care provided in dwelling. Applies to property tax years beginning on or after July 1, 2010. Sponsored by: By Senator MONROE (at the request of Don LaFont) URL:http://www.leg.state.or.us/09reg/measpdf/sb0300.dir/sb0351.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Larry Hill Larry Hill CS-FIN 1/21/2009 Pri 1 Yes II. A2 Oppose Comments: SB 351 would have a negative financial impact on the City of Eugene. It would expand the existing property tax exemption for religious property. The statutes currently exempt property used for public worship, administration, education, literary, benevolent, charitable, entertainment and recreational purposes by religious organizations. SB 351 would expand that exemption to include a dwelling and lot provided by a religious organization and used by a spirtual leader as a primary residence. Current state law already exempts religious property with a assessed value of $3.1 billion. In the "2009-11 Tax Expenditure Report" the Oregon Department of Revenue extimates that curent law will result in a loss of $39.6 million in local property tax revenue, and an accompanying shift of $14.7 million to other 29