Item 3: Discuss and Approve Non-Unanimous IGR Positions

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term issues that would have very damaging long term consequences. A simple majority to increase the permament is democratic and should be our objective. SJR 0036 Relating Clause: Proposing amendment to Oregon Constitution relating to valuation of property. Title: Proposes amendment to Oregon Constitution creating minimum assessed value for property taxation equal to 50 percent of real market value and maximum assessed value for property taxation equal to 75 percent of real market value. Changes exception valuation of property to 75 percent of real market value. Adds to classes of property subject to exception valuation property sold or transferred to new owner. Refers proposed amendment to people for their approval or rejection at next regular general election. Sponsored by: COMMITTEE ON FINANCE AND REVENUE URL:http://www.leg.state.or.us/09reg/measpdf/sjr1.dir/sjr0036.intro.pdf ContactRespondentDept Updated Priority Policy Poli Numb Recommendation Larry Hill Larry Hill CS-FIN 3/24/2009 Pri 2 Yes YesII. A1 Oppose Comments: SJRs 35, 36 and 37 are proposed Oregon Constitutional amendments with different approaches to the problem of the widening gap between assesed property valuse and real market values. The measures were introduced by the Senate Committee on Finance and Revenue in order to facilitate a discussion on the general issue. I recommend the City participate in the discussion aand urge amendments to whatever measure advances. Specific to SJR 36, the measure would create a minimum assesed value of 50% of real market value. This would have little effect on the City of Eugene. It would also set assessed value at 75% of real market value when a property is improved, rezoned, and so forth, with the addition of an adjustment to 75% of real market value upon sale. Specific to SJR 37, the measure would set assessed value at 75% of real market value rather than at thr changed property ratio when a property is improved, rezoned, or is otherwise classified as having exceptions value. In addition the bill would set assessed value at 75% of real market value upon sale or transfer of property. Right now the changed property ratio for a category of property determined the assessed value of a changed or exceptions value property. This is the average ratio of assessed value to real market value for a property category. in Eugene the changed property ratio varies between 100% for industrial property to 58% for residential property to 46% for recreational property. Switching to a flat 75% rather than the current scale of changed property ratios would increase the assessed value for residential and most changed properties, but lower the assessed value for industrial and some other changed properties. This proposal as introduced could be beneficial to local governments but needs a much closer look. However, it appears the measure would also cap assessed value at 75% of real market value, rather than at the current 100%. This would put many more properties in the City of Eugene into compression and reduce tax revenue unacceptably. This last provision should be strongly opposed. SJR 0037 Relating Clause: Proposing amendment to Oregon Constitution relating to valuation of property. Title: Proposes amendment to Oregon Constitution changing exception valuation of property to 75 percent of real market value. Adds to classes of property subject to exception valuation property sold or transferred to new owner. Refers proposed amendment to people for their approval or rejection at next regular general election. Sponsored by: COMMITTEE ON FINANCE AND REVENUE URL:http://www.leg.state.or.us/09reg/measpdf/sjr1.dir/sjr0037.intro.pdf 59