Item A: Measure 37 Givings Tax - Laserfiche WebLink

Home Browse Search

ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Measure 37 Givings Tax Meeting Date: January 25, 2006 Agenda Item Number: A Department: Planning & Development/City Attorney Staff Contact: Susan Muir/Glenn Klein www.eugene-or.gov Contact Telephone Number: 682-6077/682-5080 ISSUE STATEMENT Ballot Measure 37 requires that when certain regulations restrict the use of property and reduce its value, the government must pay compensation for such restrictions or waive the regulation. The purpose of this work session is to explore options for the creation of a tax or charge on “increases in value,” also known as a “givings tax,” in order to create a fund to pay such compensation claims. BACKGROUND At the January 19, 2005, City Council meeting, Councilor Bettman noted that one of the impacts of Measure 37 is to make it more difficult for the City to revise existing regulations and adopt new regulations by requiring compensation (or waiver of the regulation) if the regulation reduces the value of a property. Councilor Bettman also noted that while some regulations may reduce the value of some property, other regulations (and other government actions) can also have the effect of increasing the value of other property. She asked the council to hold a work session to explore whether the City should pursue the creation of a tax, fee or charge to capture some of the increase in value in order to fund payment of Measure 37 claims. Following a poll of the council, a work session was scheduled for June 13, 2005. At the June 13, 2005, meeting, the City Attorney and the Planning and Development Director updated the council on what had happened to that time on Measure 37 issues, including an update on what was happening in the legislative session. They also identified some of the issues related to implementing a “givings tax,” including Measure 5 limitations, a legislative pre- emption on a real estate transfer tax, and a significant administrative burden for developing and implementing the tax. The council directed staff to undertake additional analysis and to return to the council with specific options for the council to consider for a givings tax. Measure 37 Litigation On October 14, 2005, the Marion County Circuit Court issued a decision finding that Measure 37 was unconstitutional. That decision was appealed directly to the Oregon Supreme Court. On January 10, 2006, the Supreme Court held oral argument. A decision from the Supreme Court most likely will be issued somewhere between early summer and the end of the year. L:\CMO\2006 Council Agendas\M060125\S060125A.doc