Ordinance No. 20459 - Laserfiche WebLink

Home Browse Search

Chapter 9: Fiscal Impact Statement that Estimates the Impact of the Tax Increment Financing, Both Until and After the Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Plan Area Taxing bodies that overlap with the Plan Area are affected by the use of tax increment funds to implement the Plan. When a district is first created, the assessed value within the Plan Area is established as the "frozen base." This is a way of keeping the overlapping taxing districts "whole" as of the date the urban renewal district is created. In theory, if urban renewal efforts are successful, the value of the district will grow above the base. That increase is called the "incremental value" or "excess value." Property taxes from the overlapping jurisdictions (schools, general governments, bonds) are then divided among the jurisdictions that continue to receive taxes on the frozen base. The Agency receives taxes on the incremental value. This has an impact on the amount of revenue that the overlapping jurisdictions receive, versus what they would have received if there were no urban renewal districts in effect. Impact on Tax Bills: In addition to the impact on the overlapping taxing jurisdictions, urban renewal also makes individual tax bills look different. Urban renewal districts do not impose new taxes; rather, they redistribute taxes from overlapping taxing districts to the urban renewal districts. There are two basic steps to understand how an individual's tax bill is affected by tax increment financing in Oregon. The first step determines the amount of property taxes that the urban renewal agency should receive, and the second step determines how the taxes are accounted for on property tax statements. The first step in determining how tax increment financing affects an individual's tax bill consists of applying the tax rates of the taxing districts (such as the city, county and school districts) to the incremental value of the urban renewal district. That product is the amount of taxes that the urban renewal agency should receive. The second step determines how to divide or split the tax rates of the taxing districts so that when those "divided rates" are applied to all tax bills in the City, the urban renewal agency receives its share, and the taxing districts receive the remainder. As of December 2009 there were seven urban renewal districts in Lane County, and the calculation is done for each of these districts. The Lane County Assessor determines how the tax rates for the schools, city, and county should get divided between the taxing districts and the urban renewal districts. As an example, the City's permanent tax rate is $7.0058 per $1.,000 of assessed value. The Lane County Assessor divides that tax rate into three pieces: $6.9056 goes to the City of Eugene, $0.0744 goes to the Downtown Urban Renewal District, and $0.0258 goes to the Riverfront Urban Renewal District. This calculation is done for each tax rate on the tax bill. After taking the information from the Lane County Assessor about the division of tax rates, an analysis can determine how an individual tax bill is affected by urban renewal division of tax. For the median Eugene home that the Lane County Assessor calculated for FY2009/2010, this Report on the 2010 Amendment 14