Item 3E: Ratification of IGR Actions

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There was no change to the staff recommendation. HB 2494 Ms. Wilson said that HB 2494 would extend the active duty military property homestead exemption to include mobilization. Staff recommended a position of Priority 2, Oppose. The bill expanded an existing exemption that was now based on deployment. Mr. Hill said his recommendation was not based on the merits of those receiving the exemption, but rather on the City’s legislative policies, which discouraged property tax exemptions not reimbursed by the State of Oregon. Such exemptions were imposed by the State and might further a State goal but they occurred at local expense. Responding to a question from Ms. Ortiz, Mr. Hill said the State did not reimburse the City for property tax exemptions related to deployment. Mr. Hill noted that such exemptions currently totaled $15 million to $28 million annually for local government. The committee agreed to retain the staff recommendation, with Mr. Poling indicating support for the existing exemption. He said that without more definition of what was entailed in regard to mobilization, he was also supportive of the staff recommendation. HB 2474 Ms. Wilson noted the staff recommendation to support the bill at a level of Priority 2, Support. Ms. Taylor indicated that she preferred not to support the bill, which would reduce the discount on annual property taxes, because she believed it would result in delays in property tax collections. Ms. Ortiz noted that she paid her taxes on the day they were due, and she thought the bill would be a disincentive. She wanted to support the bill at a level of Priority 3. Mr. Poling wanted to oppose the bill because it would increase how much money tax payers paid out-of-pocket noting that the bill reduced the discount, which was cash in hand for homeowners that they needed for other purposes. The bill might benefit the City, but he preferred to see the taxpayer benefit. Ms. Taylor concurred. Mr. Poling, seconded by Ms. Taylor, moved to change the recommendation for HB 2474 to Priority 3, Oppose. The motion did not pass, 2:1; Ms. Ortiz voting no. HB 2496 Ms. Wilson said the bill would authorize a property tax exemption for charitable organizations, and staff recommended opposition based on the City’s legislative policies. Mr. Hill reviewed the bill, which extended an existing property tax to non-charitable organizations in a retroactive manner. He was unable to speak to the number of organizations that would qualify for the exemption. Ms. Taylor expressed concern about the retroactive nature of the bill, which would require the City to reimburse such organizations for past property taxes. Responding to a question from Ms. Taylor, Mr. Hill said that Greenhill was a nonprofit organization that already qualified for the exemption. Ms. Ortiz suggested that organizations such as the Shelter Animal Resource Alliance, which operated SARA’s Treasures on River Road, would benefit. MINUTES—Council Committee on Intergovernmental Relations February 11, 2009 Page 2