Item 3: Ratification of Unanimous and Non-Uanimous IGR Actions

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SJR 0009 Relating Clause: Proposes revision of Oregon Constitution relating to ad valorem property taxation. Requires Legislative Assembly to provide by law for continuation of local option tax levies. Title: Proposes revision of Oregon Constitution relating to ad valorem property taxation. Requires Legislative Assembly to provide by law for continuation of local option tax levies. Lowers maximum allowable taxes to $3.33 per $1,000 of real market value for public school system and $6.67 per $1,000 of real market value for government operations other than public school system. Applies to tax years beginning on or after July 1, 2012. Refers proposed revision to people for their approval or rejection at next primary election. Sponsored by: Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with presession filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of Senate Interim Committee on Finance and Revenue) URL: http://www.leg.state.or.us/11reg/measpdf/sjr1.dir/sjr0009.intro.pdf Contact Respondent Dept Updated Priority Recommendation Larry Hill CS-FIN 1/28/2011 -- Monitor Comments: Like SJR 7 and SJR 8, SJR 9 would amend Article XI of the Oregon Constitution to change our property tax system. SJR 9 changes would be much more sweeping however, repealing Measure 47/50 language from the Constitution. SJR 9 would eliminate the difference between assessed value and real market value of property. Property would be taxed on its real market value, resolving the unfair distribution among classes of property that has developed under Measure 47/50's provisions. Measure 5's caps on total general government and total education taxes would remain in the Constitution, but these caps would be lowered; general government taxes on a property would be capped at $6.67 instead of $10 per $1000 real market value, while education taxes would be capped at $3.33 instead of $5 per $1000 RMV. This will result in compression of taxes in the event these limits are reached for any individual property, with reduction of tax revenue. My analysis of the net impact of these changes on the City of Eugene's revenue is underway but is not yet complete. I recommend that discussions on this measure be closely monitored, but no position be taken at this time. The League of Oregon Cities has made it a high priority to achieve a constitutional amendment allowing local governments to deal with the impacts of Measure 5/50 property tax restrictions. 26