US Laws, Codes, Statutes & Cases

Chapter 310 — Property Tax Rates and Amounts;

Tax Limitations; Tax Reduction Programs

 

2007 EDITION

 

TAX RATES & AMOUNTS; TAX LIMITATIONS

 

REVENUE AND TAXATION

 

PROPERTY TAX RATES AND AMOUNTS

 

(County Tax Duties Generally)

 

310.010     Determination of amount of tax for county and other purposes

 

310.020     Levy of tax to defray county expenses

 

310.030     Levy of taxes required or permitted by law

 

310.040     Reducing levy where necessity for budget item eliminated

 

(Procedure to Certify Taxes and Determine Tax Rates)

 

310.055     Operating taxes

 

310.060     Notice certifying taxes; contents; extension of time to give notice or correct erroneous certification

 

310.061     Assessor to determine and report maximum school district operating tax when district certifies lesser rate; determination modified if district divided into zones

 

310.065     Procedure where notice not given

 

310.070     Procedure when taxes exceed limitations or are incorrectly categorized

 

310.090     Computation of rate for each item of tax; category rates; total rates

 

310.100     Taxes to apply to property shown by assessment roll; furnishing certificate showing aggregate valuation of taxable property

 

310.105     Rate adjustments to reflect nontimber offsets; no effect on permanent or statutory rate limits

 

310.110     Apportionment of taxes where taxing district lies in two or more counties; estimates

 

TAX LIMITATIONS

 

(1990 Measure 5 Limits on Amount of Tax)

 

310.140     Legislative findings; definitions

 

310.143     Certification of taxes on taxable property subject to 1990 Measure 5 limits; refunds of taxes on property not certified, erroneously certified or certified by nongovernmental entity

 

310.145     Ordinance or resolution classifying and categorizing taxes subject to 1990 Measure 5 limits

 

310.147     Code area system; tentative consolidated tax rates per category; total consolidated code area rates after adjustment; recordation on assessment roll

 

310.150     Segregation into categories; category limits; determination whether amount of taxes on property is within limits; method of reducing taxes to meet limits

 

310.153     Total amount to be raised for each taxing district and item; basis for assessor’s certificate

 

310.155     Public school system limit; definitions

 

310.156     Certain community college library limits

 

310.160     Unit of property; description for purposes of determining if amount of taxes exceeds 1990 Measure 5 limits

 

310.165     Partially exempt or specially assessed property; treatment of additional taxes imposed upon disqualification from special assessment or exemption

 

310.170     Allocation by districts of distributions from unsegregated tax collections account among taxes subject to 1990 Measure 5 limits

 

(Election Challenges)

 

310.190     Effect of election challenge on tax; resolution of challenge

 

310.193     Taxing district duty to notify assessor of challenge

 

(Calculation of 1997 Measure 50 Permanent and Supplemental Statutory Rate Limits on Operating Taxes and 1997-1998 Tax Reductions)

 

310.200     Purpose

 

310.202     Definitions for ORS 310.200 to 310.242

 

310.204     “Hospital facility” defined

 

310.206     1997-1998 tax certification notice

 

310.208     1997-1998 urban renewal certification

 

310.210     Measure 5 imposed tax estimate

 

310.212     Measure 47 comparison taxes

 

310.214     Measure 47 comparison tax adjustments for certain nonschool taxing districts

 

310.216     Pre-reduction Measure 50 taxes

 

310.218     Preliminary reduction percentages

 

310.220     Assessor certification to Department of Revenue; contents

 

310.222     Computation of 1997 Measure 50 reduction and supplemental statutory reduction; certification to assessor

 

310.228     Determination of state replacement obligation

 

310.230     Adjustment of Measure 47 comparison taxes and supplemental statutory reduction to account for certain additions of value

 

310.232     Subtraction of urban renewal increment from assessed value

 

310.234     Nonschool taxing district 1997-1998 operating tax adjustment for timber offsets

 

310.236     Determination of taxing district 1997-1998 operating taxes and permanent and statutory rate limits for tax years after 1997-1998; 1997-1998 pre-compression consolidated rates for code areas and categories

 

310.237     Reallocation of Measure 47 comparison taxes and adjustment of rate limits for certain districts for 2000-2001 and later tax years

 

310.238     Rate conversion; Measure 5 assessed value rate

 

310.239     Effect of increase of permanent rate limit of certain school districts

 

310.240     Calculation of taxes imposed on urban renewal increment for 1997-1998; special levies

 

310.242     1997-1998 compression of consolidated rates

 

310.244     Adjustment of city’s post-compression tax rate under certain circumstances

 

310.246     Department of Revenue may adjust permanent rate limit to correct mistakes; corrections to be made by June 30, 1998

 

TAX REDUCTION PROGRAMS

 

(Generally)

 

310.585     Distribution of certain property tax relief moneys to counties

 

310.595     Determination of apportionment to counties

 

(Manufactured Structures)

 

310.622     Manufactured structures eligible as homesteads under tax laws of state

 

(Floating Homes)

 

310.623     Floating home eligible as homestead

 

(Elderly Rental Assistance)

 

310.630     Definitions for ORS 310.630 to 310.706

 

310.635     Eligibility; amount; processing claims; treatment of payments

 

310.651     Definitions for household asset limitation on eligibility

 

310.652     Limitation on eligibility for refund based on household assets

 

310.657     Submission of claim; treatment of late claim; determination of amount of claim by department; notification of denial

 

310.690     Department of Revenue rulemaking authority; forms

 

310.692     Suspense account; fiscal year allocation; proration of payments

 

310.695     Construction

 

310.706     Applicability of ORS chapters 305 and 314; no interest on payments; claims must be filed in three years

 

(Property Tax Work-Off Programs)

 

310.800     Property tax work-off programs

 

PROPERTY TAX RATES AND AMOUNTS

 

(County Tax Duties Generally)

 

      310.010 Determination of amount of tax for county and other purposes. The county court or board of county commissioners of each county shall, in July of each year, estimate and determine the amount of money to be raised for county purposes for the current fiscal year, and also the several amounts to be raised in the county for other purposes, as required or authorized by law. The determination shall be entered in its records.

 

      310.020 Levy of tax to defray county expenses. The county court or board of county commissioners for each county in the state shall, in July of each year, levy a tax upon all taxable property in the county sufficient in amount to defray the expenses of the county for the current fiscal year.

 

      310.030 Levy of taxes required or permitted by law. The county court or board of county commissioners shall, in July of each year, levy all taxes which by law it is required to levy, and any other taxes which it may determine to levy and by law it is permitted to levy.

 

      310.040 Reducing levy where necessity for budget item eliminated. If after a tax levy has been made by any county court or board of county commissioners and before the extension of the levy upon the tax rolls, the necessity for any item contained in the budget upon which the levy is based is eliminated by act of the Legislative Assembly, the county court or board of county commissioners shall by appropriate order reduce the amount of the levy by the amount of such item. Thereupon the levy shall be extended upon the rolls as so reduced.

 

      310.045 [1965 c.604 §2; repealed by 1969 c.612 §5]

 

(Procedure to Certify Taxes and Determine Tax Rates)

 

      310.050 [Amended by 1959 c.181 §1; part renumbered 310.065; 1967 c.293 §3; 1979 c.689 §15; 1991 c.459 §217; 1997 c.541 §243; repealed by 2005 c.94 §61]

 

      310.055 Operating taxes. (1) As used in the property tax laws of this state, “operating taxes” means ad valorem property taxes that are subject to a permanent rate limit under section 11, Article XI of the Oregon Constitution, or statutory rate limit under ORS 310.236 (4) or 310.237, if applicable.

      (2) For the tax year beginning July 1, 1997, operating taxes consist of the sum of the following (or such lesser amount as is certified to the assessor under ORS 310.206 (4)(b):

      (a) The total amount of ad valorem property taxes as provided in ORS 310.200 to 310.242, except that the amount under this paragraph does not include:

      (A) Local option taxes;

      (B) Ad valorem property taxes used to repay taxing district bond or pension and disability plan obligations described in section 11 (5), Article XI of the Oregon Constitution;

      (C) Ad valorem property taxes that would otherwise be subject to this paragraph, except that the taxes are of a taxing district other than a city, county or school district, and are used to support a hospital facility;

      (D) Ad valorem property taxes that would otherwise be subject to this paragraph, except that the levy of the taxes was approved by voters prior to December 5, 1996, that met the voter participation requirements in section 11 (8), Article XI of the Oregon Constitution, and that are first imposed in the tax year beginning July 1, 1996, or July 1, 1997;

      (E) Serial or one-year levies described in ORS 280.040 to 280.140 (1995 Edition) that replace levies that were imposed in the tax year beginning July 1, 1996, that were approved by voters in an election held after December 4, 1996, and that are first imposed for the tax year beginning July 1, 1997, if the rate or the amount of the levy is not greater than the rate or the amount of the replaced levy;

      (F) Taxes imposed to pay principal and interest on exempt bonded indebtedness; and

      (G) Urban renewal increment taxes; and

      (b) The total amount of the following ad valorem property taxes, without reduction under ORS 310.200 to 310.242:

      (A) Ad valorem property taxes of a taxing district other than a city, county or school district that are used to support a hospital facility;

      (B) Ad valorem property taxes approved by voters prior to December 5, 1996, that met the voter participation requirements in section 11 (8), Article XI of the Oregon Constitution, and that are first imposed in the tax year beginning July 1, 1996, or July 1, 1997; and

      (C) Serial or one-year levies described in ORS 280.040 to 280.140 (1995 Edition) that replace levies that were imposed in the tax year beginning July 1, 1996, that were approved by voters after December 4, 1996, and that are first imposed for the tax year beginning July 1, 1997, if the rate or the amount of the levy is not greater than the rate or the amount of the replaced levy.

      (3) For tax years beginning on or after July 1, 1998, each taxing district is authorized to levy the full amount of the operating taxes of the district on all taxable property within the boundaries of the district. Operating taxes consist of:

      (a) Ad valorem property taxes imposed at the rate established as the permanent rate limit or statutory rate limit, if applicable, for the taxing district or such lesser rate as the taxing district certifies to the assessor under ORS 310.060; or

      (b) If the district is imposing operating property taxes for the first time, ad valorem property taxes imposed at the rate established in the manner provided for by law as the permanent rate limit for the district or such lesser rate as the taxing district may determine. [1997 c.541 §321; 1999 c.21 §24; 1999 c.186 §4; 2001 c.114 §23]

 

      310.060 Notice certifying taxes; contents; extension of time to give notice or correct erroneous certification. (1) Not later than July 15 of each year, every city, school district or other public corporation authorized to levy or impose a tax on property shall file a written notice certifying the ad valorem property tax rate or the estimated amount of ad valorem property taxes to be imposed by the taxing district and any other taxes on property imposed by the taxing district on property subject to ad valorem property taxation that are required or authorized to be placed on the assessment and tax roll for the current fiscal year. The notice shall be accompanied by two copies of a lawfully adopted ordinance or resolution that categorizes the tax, fee, charge, assessment or toll as subject to or not subject to the limits of section 11b, Article XI of the Oregon Constitution, identified by the categories set forth in ORS 310.150.

      (2) For any ad valorem property taxes levied by the taxing district, the notice shall state as separate items:

      (a) The taxing district’s rate of ad valorem property taxation that is within the permanent rate limitation imposed by section 11 (3), Article XI of the Oregon Constitution, or within the statutory rate limit determined in ORS 310.236 (4)(b) or 310.237, if applicable;

      (b) The total rate or amount of the taxing district’s local option taxes imposed pursuant to ORS 280.040 to 280.145 that have a term of five years or less and that are not for capital projects;

      (c) The total amount of the taxing district’s local option taxes that are for capital projects;

      (d) The total amount levied for the payment of bonded indebtedness or interest thereon that is not subject to limitation under section 11 (11) or section 11b, Article XI of the Oregon Constitution; and

      (e) The total amount levied that is subject to section 11b, Article XI of the Oregon Constitution, but that is not subject to the permanent ad valorem property tax rate limit described in section 11 (3), Article XI of the Oregon Constitution, because the amount levied is to be used to repay:

      (A) Principal and interest for any bond issued before December 5, 1996, and secured by a pledge or explicit commitment of ad valorem property taxes or a covenant to levy or collect ad valorem property taxes;

      (B) Principal and interest for any other formal, written borrowing of moneys executed before December 5, 1996, for which ad valorem property tax revenues have been pledged or explicitly committed, or that are secured by a covenant to levy or collect ad valorem property taxes;

      (C) Principal and interest for any bond issued to refund an obligation described in subparagraph (A) or (B) of this paragraph; or

      (D) Local government pension and disability plan obligations that commit ad valorem property taxes.

      (3)(a) The notice shall also list each rate or amount subject to the limits of section 11b, Article XI of the Oregon Constitution, identified by the categories set forth in ORS 310.150.

      (b) If an item described in subsection (2) of this section is allocable to more than one category described in ORS 310.150, the notice shall list separately the portion of each item allocable to each category.

      (4) For any other taxes on property imposed by the taxing district, the notice shall state:

      (a) The total amount of money to be raised by each other tax, in the aggregate or on a property by property basis, as appropriate.

      (b) Each amount that is subject to the limits of section 11b, Article XI of the Oregon Constitution, identified by the categories set forth in ORS 310.150.

      (5) For any district authorized by law to place any other fees, charges, assessments or tolls on the assessment and tax roll, the notice shall state the total amount of money to be raised on a property by property basis.

      (6) In addition to the notice required under subsection (1) of this section, any taxing district that is subject to the Local Budget Law shall also provide the documents required by ORS 294.555 (3).

      (7)(a) Not later than July 15 of each year, the taxing district shall give the notice and documents described in this section to the assessor of the county in which the principal office of the taxing district is located and, if the taxing district is located in more than one county, to the assessor of each county in which any part of the taxing district is located. Not later than September 30 of each year, the taxing district shall provide a complete copy of the budget document to the clerk of the county in which the principal office of the taxing district is located and, if the taxing district is located in more than one county, to the clerk of each county in which any part of the taxing district is located.

      (b) If there is no county clerk in a county to which a taxing district is required by paragraph (a) of this subsection to submit a budget document, then the taxing district shall submit the budget document to the county assessor in that county.

      (c) If the taxing district is subject to the jurisdiction of a tax supervising and conservation commission under ORS 294.625, then the taxing district shall submit a copy of its budget to the tax supervising and conservation commission in lieu of filing a copy of the budget with the county clerk of the county under paragraph (a) of this subsection or with the county assessor of the county under paragraph (b) of this subsection.

      (8) The Department of Revenue shall prescribe the form of notice required by this section. All amounts shall be stated in dollars and cents or ad valorem property tax rates in dollars and cents per thousand dollars of assessed value, as required by law. If the notice is given to the assessor, clerk or tax supervising and conservation commission of more than one county, a copy of each other such notice given shall accompany every notice given.

      (9) For good and sufficient reason, the county assessor may extend the time for the giving of the notice or correcting an erroneous certification for the current year up to but not later than October 1 as the county assessor considers reasonable. [Amended by 1955 c.259 §1; 1967 c.293 §4; 1973 c.333 §2; 1979 c.241 §28a; 1981 c.790 §12; 1985 c.784 §2; 1991 c.459 §218; 1993 c.270 §44; 1995 c.293 §1; 1997 c.154 §5; 1997 c.541 §244; 1999 c.186 §5; 1999 c.632 §23; 2001 c.135 §31; 2001 c.695 §32; 2001 c.753 §7; 2005 c.750 §1; 2007 c.894 §2]

 

      310.061 Assessor to determine and report maximum school district operating tax when district certifies lesser rate; determination modified if district divided into zones. (1) If a school district certifies a rate pursuant to ORS 310.060 that is less than the maximum rate of operating taxes allowed by law, the county assessor for each county within which the school district is located shall determine the amount of operating taxes that would have been imposed by the school district if the school district had certified the maximum rate of operating taxes allowed by law.

      (2) If a school district has established tax zones pursuant to ORS 328.570 to 328.579, solely for purposes of subsection (1) of this section:

      (a) The maximum rate of operating tax allowed by law shall be determined for each tax zone of the district; and

      (b) The maximum rate of operating tax for a tax zone in which the district does not provide all of kindergarten through grade 12 education shall equal the maximum rate of operating tax for the district multiplied by the percentage established for the zone in the resolution adopted under ORS 328.576.

      (3) Each county assessor who is required to calculate an amount under subsection (1) of this section shall report that amount to the Department of Education. [1999 c.186 §12; 2001 c.246 §7]

 

      Note: 310.061 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 310 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      310.065 Procedure where notice not given. If the written notice of a taxing district’s ad valorem property tax or other tax is not given to the county assessor at the time specified, or as extended, under ORS 310.060, the assessor shall not include the tax in the computation of the total district tax rate under ORS 310.090. [Formerly part of 310.050; 1993 c.270 §45; 1997 c.541 §246]

 

      310.070 Procedure when taxes exceed limitations or are incorrectly categorized. (1) If the ad valorem property taxes reported to the clerk, assessor or tax supervising and conservation commission under ORS 310.060 are in excess of the constitutional or statutory limitations, or both, the assessor, upon the advice of the Department of Revenue, shall extend upon the tax roll of the county only such part of the taxes as will comply with the constitutional and statutory limitations and requirements governing the taxes.

      (2) If any part of the taxes on property certified under ORS 310.060 is incorrectly categorized as subject to or not subject to the limits of section 11b, Article XI of the Oregon Constitution, the Department of Revenue shall notify the taxing unit governing body and the county assessor and the county assessor shall extend the taxes on the roll in a manner that complies with the Oregon Constitution. For purposes of this section, taxes are incorrectly categorized only if:

      (a) The sole authority of the taxing unit to impose taxes on property is provided by statute and the statute does not authorize the imposition of taxes on property categorized as reported under ORS 310.060; or

      (b) The Oregon Tax Court or the Oregon Supreme Court has finally determined the correct manner in which a tax on property of the taxing unit should be categorized and that determination is different from the category reported under ORS 310.060. For purposes of this paragraph, “finally determined” means that the Oregon Tax Court has entered a decision which has become final as described under ORS 305.440 or that, upon appeal from the Oregon Tax Court, the Supreme Court has entered a decision.

      (3) If any item certifying ad valorem property taxes under ORS 310.060 incorrectly characterizes the item attributes under section 11, Article XI of the Oregon Constitution, the Department of Revenue shall notify the taxing district governing body and the county assessor, and the county assessor shall extend the taxes on the roll in a manner that complies with the Oregon Constitution. [Amended by 1967 c.293 §5; 1971 c.646 §3; 1981 c.790 §13; 1983 s.s. c.5 §19; 1985 c.319 §2; 1993 c.270 §46; 1997 c.541 §247; 2005 c.750 §2]

 

      310.080 [Repealed by 1957 c.626 §1]

 

      310.081 [Subsections (1) and (2) of 1961 Replacement Part enacted as 1957 c.626 §11; subsection (3) of 1957 Replacement Part enacted as part of 1957 s.s. c.2 §4; 1959 c.388 §9; repealed by 1963 c.570 §33]

 

      310.082 [1957 s.s. c.2 §4; repealed by 1959 c.388 §15]

 

      310.084 [1957 c.626 §12; repealed by 1963 c.570 §33]

 

      310.090 Computation of rate for each item of tax; category rates; total rates. (1) Subject to ORS 310.070, the county assessor shall compute the rate for each item of ad valorem property taxes, the category rate of ad valorem property taxes for each category described in ORS 310.150 and the total rate of ad valorem property taxes for each taxing district as provided in this section.

      (2) If the item of tax that is reported on the notice filed under ORS 310.060 is an amount, the rate of tax for that item shall be computed by dividing the amount by the assessed value used to compute the tax rate. The assessed value used to compute the tax rate is the tax levying district’s assessed value adjusted as otherwise provided by law.

      (3) The computed tax rates under subsection (2) of this section or as reported on the notice filed under ORS 310.060 shall be carried to the number of decimal places specified by rule of the Department of Revenue and truncated. The truncated rate shall be expressed as a rate per thousand dollars of assessed value.

      (4) All of the taxing district’s taxes that are reported on the notice filed under ORS 310.060 as rates and that are within the same category under ORS 310.150 shall be added together and added to the rates computed under subsection (2) of this section that are within the same category to obtain the category rates for the taxing district.

      (5) The total tax rate of the district shall be the total of the truncated tax rates calculated for the taxing district for the year. [Amended by 1967 c.293 §11; 1991 c.459 §221; 1997 c.541 §248]

 

      310.100 Taxes to apply to property shown by assessment roll; furnishing certificate showing aggregate valuation of taxable property. Each ad valorem property tax of a taxing district shall apply to all the taxable property of the district, or to all the taxable property in a tax zone of a district that has established two or more tax zones within the district, as shown by the assessment roll last compiled by the assessor. The assessor, upon the application of the governing body or of the duly accredited officer of any such taxing district, shall furnish a certificate, properly verified, showing the aggregate valuation of the taxable property therein. [Amended by 1991 c.459 §222; 1997 c.541 §250; 2001 c.246 §8; 2001 c.553 §6]

 

      310.105 Rate adjustments to reflect nontimber offsets; no effect on permanent or statutory rate limits. (1) If a taxing district lying in two or more counties is entitled to offsets which have been provided by statute, the rates determined under ORS 310.090 shall be further adjusted to reflect the offsets.

      (2) Adjustments under this section shall be made to ensure that the rate of taxation is uniform throughout the taxing district.

      (3) Adjustments made under this section shall not affect the permanent rate limit determined for purposes of section 11 (3), Article XI of the Oregon Constitution, or the statutory rate limit determined in ORS 310.236 (4)(b) or 310.237, if applicable. [1971 c.720 §1; 1977 c.892 §37; 1979 c.438 §4; 1993 c.801 §37; 1997 c.541 §251; 1999 c.186 §6]

 

      310.108 [1997 c.541 §252; 1999 c.1078 §§33,33b; repealed by 2003 c.621 §26]

 

      310.110 Apportionment of taxes where taxing district lies in two or more counties; estimates. (1) If a taxing district lies in two or more counties, and the district certifies an item of ad valorem property tax as an amount in the notice required under ORS 310.060, the amount certified by the district shall be apportioned on the basis of the assessed value used to compute the tax rate for the current tax year, in the proportion that the assessed value of the part of the district lying in each county bears to the assessed value of the whole district. However, if a boundary change affecting the district becomes effective as to the levy being apportioned, an adjustment of the assessed value shall be made so as to reflect the boundary change.

      (2) Any assessor who is unable to certify the current assessed value for any joint district lying partially in the county by September 25 shall, with the cooperation of the Department of Revenue, estimate as closely as practicable the assessed value of that district for the purpose of apportioning the ad valorem property taxes of the joint district in the current year as equitably as is possible. The estimate shall be completed and certified to the assessor or assessors of the other counties on the fifth business day after September 25 and shall be used as the basis for the apportionment required by this section. [Amended by 1953 c.194 §2; 1963 c.274 §1; 1967 c.199 §1; 1971 c.482 §1; 1977 c.892 §38; 1979 c.438 §5; 1981 c.804 §86; 1985 c.613 §5; 1991 c.459 §223; 1997 c.541 §254; 1999 c.1078 §69; 2003 c.621 §94]

 

      310.120 [Repealed by 1977 c.730 §4]

 

      310.125 [1961 c.719 §§1,2; 1975 c.189 §1; 1991 c.459 §224; 1997 c.541 §256; repealed by 2005 c.94 §61]

 

      310.130 [Amended by 1991 c.459 §224a; 1993 c.270 §47; repealed by 1997 c.541 §268]

 

      310.135 [1979 c.241 §53; renumbered 310.404 in 1991]

 

TAX LIMITATIONS

 

(1990 Measure 5 Limits on Amount of Tax)

 

      310.140 Legislative findings; definitions. The Legislative Assembly finds that section 11b, Article XI of the Oregon Constitution, was drafted by citizens and placed before the voters of the State of Oregon by initiative petition. Section 11b, Article XI of the Oregon Constitution, uses terms that do not have established legal meanings and require definition by the Legislative Assembly. Section 11b, Article XI of the Oregon Constitution, was amended by section 11 (11), Article XI of the Oregon Constitution. This section is intended to interpret the terms of section 11b, Article XI of the Oregon Constitution, as originally adopted and as amended by section 11 (11), Article XI of the Oregon Constitution, consistent with the intent of the people in adopting these provisions, so that the provisions of section 11b, Article XI of the Oregon Constitution, may be given effect uniformly throughout the State of Oregon, with minimal confusion and misunderstanding by citizens and affected units of government. As used in the revenue and tax laws of this state, and for purposes of section 11b, Article XI of the Oregon Constitution:

      (1) “Actual cost” means all direct or indirect costs incurred by a government unit in order to deliver goods or services or to undertake a capital construction project. The “actual cost” of providing goods or services to a property or property owner includes the average cost or an allocated portion of the total amount of the actual cost of making a good or service available to the property or property owner, whether stated as a minimum, fixed or variable amount. “Actual cost” includes, but is not limited to, the costs of labor, materials, supplies, equipment rental, property acquisition, permits, engineering, financing, reasonable program delinquencies, return on investment, required fees, insurance, administration, accounting, depreciation, amortization, operation, maintenance, repair or replacement and debt service, including debt service payments or payments into reserve accounts for debt service and payment of amounts necessary to meet debt service coverage requirements.

      (2) “Assessment for local improvement” means any tax, fee, charge or assessment that does not exceed the actual cost incurred by a unit of government for design, construction and financing of a local improvement.

      (3) “Bonded indebtedness” means any formally executed written agreement representing a promise by a unit of government to pay to another a specified sum of money, at a specified date or dates at least one year in the future.

      (4) “Capital construction”:

      (a) For bonded indebtedness issued prior to December 5, 1996, and for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent prior to June 20, 1997, means the construction, modification, replacement, repair, remodeling or renovation of a structure, or addition to a structure, that is expected to have a useful life of more than one year, and includes, but is not limited to:

      (A) Acquisition of land, or a legal interest in land, in conjunction with the capital construction of a structure.

      (B) Acquisition, installation of machinery or equipment, furnishings or materials that will become an integral part of a structure.

      (C) Activities related to the capital construction, including planning, design, authorizing, issuing, carrying or repaying interim or permanent financing, research, land use and environmental impact studies, acquisition of permits or licenses or other services connected with the construction.

      (D) Acquisition of existing structures, or legal interests in structures, in conjunction with the capital construction.

      (b) For bonded indebtedness issued on or after December 5, 1996, except for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, has the meaning given that term in paragraph (a) of this subsection, except that “capital construction”:

      (A) Includes public safety and law enforcement vehicles with a projected useful life of five years or more; and

      (B) Does not include:

      (i) Maintenance and repairs, the need for which could be reasonably anticipated;

      (ii) Supplies and equipment that are not intrinsic to the structure; or

      (iii) Furnishings, unless the furnishings are acquired in connection with the acquisition, construction, remodeling or renovation of a structure, or the repair of a structure that is required because of damage or destruction of the structure.

      (5) “Capital improvements”:

      (a) For bonded indebtedness issued prior to December 5, 1996, and for the proceeds of any bonded indebtedness approved by electors before December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, means land, structures, facilities, personal property that is functionally related and subordinate to real property, machinery, equipment or furnishings having a useful life longer than one year.

      (b) For bonded indebtedness issued on or after December 5, 1996, except for the proceeds of any bonded indebtedness approved by electors prior to December 5, 1996, that were spent or contractually obligated to be spent before June 20, 1997, has the meaning given that term in paragraph (a) of this subsection, except that “capital improvements”:

      (A) Includes public safety and law enforcement vehicles with a projected useful life of five years or more; and

      (B) Does not include:

      (i) Maintenance and repairs, the need for which could be reasonably anticipated;

      (ii) Supplies and equipment that are not intrinsic to the structure; or

      (iii) Furnishings, unless the furnishings are acquired in connection with the acquisition, construction, remodeling or renovation of a structure, or the repair of a structure that is required because of damage or destruction of the structure.

      (6) “Direct consequence of ownership” means that the obligation of the owner of property to pay a tax arises solely because that person is the owner of the property, and the obligation to pay the tax arises as an immediate and necessary result of that ownership without respect to any other intervening transaction, condition or event.

      (7)(a) “Exempt bonded indebtedness” means:

      (A) Bonded indebtedness authorized by a specific provision of the Oregon Constitution;

      (B) Bonded indebtedness incurred or to be incurred for capital construction or capital improvements that was issued as a general obligation of the issuing governmental unit on or before November 6, 1990;

      (C) Bonded indebtedness incurred or to be incurred for capital construction or capital improvements that was issued as a general obligation of the issuing governmental unit after November 6, 1990, with the approval of the electors of the issuing governmental unit; or

      (D) Bonded indebtedness incurred or to be incurred for capital construction or capital improvements, if the issuance of the bonds is approved by voters on or after December 5, 1996, in an election that is in compliance with the voter participation requirements of section 11 (8), Article XI of the Oregon Constitution.

      (b) “Exempt bonded indebtedness” includes bonded indebtedness issued to refund or refinance any bonded indebtedness described in paragraph (a) of this subsection.

      (8)(a) “Incurred charge” means a charge imposed by a unit of government on property or upon a property owner that does not exceed the actual cost of providing goods or services and that can be controlled or avoided by the property owner because:

      (A) The charge is based on the quantity of the goods or services used, and the owner has direct control over the quantity;

      (B) The goods or services are provided only on the specific request of the property owner; or

      (C) The goods or services are provided by the government unit only after the individual property owner has failed to meet routine obligations of ownership of the affected property, and such action is deemed necessary by an appropriate government unit to enforce regulations pertaining to health or safety.

      (b) For purposes of this subsection, an owner of property may control or avoid an incurred charge if the owner is capable of taking action to affect the amount of a charge that is or will be imposed or to avoid imposition of a charge even if the owner must incur expense in so doing.

      (c) For purposes of paragraph (a)(A) of this subsection, an owner of property has direct control over the quantity of goods or services if the owner of property has the ability, whether or not that ability is exercised, to determine the quantity of goods or services provided or to be provided.

      (9)(a) “Local improvement” means a capital construction project, or part thereof, undertaken by a local government, pursuant to ORS 223.387 to 223.399, or pursuant to a local ordinance or resolution prescribing the procedure to be followed in making local assessments for benefits from a local improvement upon the lots that have been benefited by all or a part of the improvement:

      (A) That provides a special benefit only to specific properties or rectifies a problem caused by specific properties;

      (B) The costs of which are assessed against those properties in a single assessment upon the completion of the project; and

      (C) For which the property owner may elect to make payment of the assessment plus appropriate interest over a period of at least 10 years.

      (b) For purposes of paragraph (a) of this subsection, the status of a capital construction project as a local improvement is not affected by the accrual of a general benefit to property other than the property receiving the special benefit.

      (10) “Maintenance and repairs, the need for which could be reasonably anticipated”:

      (a) Means activities, the type of which may be deducted as an expense under the provisions of the federal Internal Revenue Code, as amended and in effect on December 31, 2006, that keep the property in ordinarily efficient operating condition and that do not add materially to the value of the property nor appreciably prolong the life of the property;

      (b) Does not include maintenance and repair of property that is required by damage, destruction or defect in design, or that was otherwise not reasonably expected at the time the property was constructed or acquired, or the addition of material that is in the nature of the replacement of property and that arrests the deterioration or appreciably prolongs the useful life of the property; and

      (c) Does not include street and highway construction, overlay and reconstruction.

      (11) “Projected useful life” means the useful life, as reasonably estimated by the unit of government undertaking the capital construction or capital improvement project, beginning with the date the property was acquired, constructed or reconstructed and based on the property’s condition at the time the property was acquired, constructed or reconstructed.

      (12) “Routine obligations of ownership” means a standard of operation, maintenance, use or care of property established by law, or if established by custom or common law, a standard that is reasonable for the type of property affected.

      (13) “Single assessment” means the complete assessment process, including preassessment, assessment or reassessment, for any local improvement authorized by ORS 223.387 to 223.399, or a local ordinance or resolution that provides the procedure to be followed in making local assessments for benefits from a local improvement upon lots that have been benefited by all or part of the improvement.

      (14) “Special benefit only to specific properties” shall have the same meaning as “special and peculiar benefit” as that term is used in ORS 223.389.

      (15) “Specific request” means:

      (a) An affirmative act by a property owner to seek or obtain delivery of goods or services;

      (b) An affirmative act by a property owner, the legal consequence of which is to cause the delivery of goods or services to the property owner; or

      (c) Failure of an owner of property to change a request for goods or services made by a prior owner of the property.

      (16) “Structure” means any temporary or permanent building or improvement to real property of any kind that is constructed on or attached to real property, whether above, on or beneath the surface.

      (17) “Supplies and equipment intrinsic to a structure” means the supplies and equipment that are necessary to permit a structure to perform the functions for which the structure was constructed, or that will, upon installation, constitute fixtures considered to be part of the real property that is comprised, in whole or part, of the structure and land supporting the structure.

      (18) “Tax on property” means any tax, fee, charge or assessment imposed by any government unit upon property or upon a property owner as a direct consequence of ownership of that property, but does not include incurred charges or assessments for local improvements. As used in this subsection, “property” means real or tangible personal property, and intangible property that is part of a unit of real or tangible personal property to the extent that such intangible property is subject to a tax on property. [1991 c.459 §210; 1997 c.541 §258; 1999 c.21 §25; 1999 c.90 §33; 2001 c.660 §28; 2003 c.46 §24; 2003 c.77 §6; 2003 c.195 §23; 2003 c.802 §63; 2005 c.832 §18; 2007 c.614 §6; 2007 c.783 §125]

 

      310.143 Certification of taxes on taxable property subject to 1990 Measure 5 limits; refunds of taxes on property not certified, erroneously certified or certified by nongovernmental entity. (1) Any tax on property that is imposed on property that is subject to ad valorem taxation by any unit of local government shall be certified to the assessor each year, as provided under ORS 310.060. Except as otherwise specifically provided by law, any tax, fee, charge or assessment that is not a tax on property or is not imposed on property subject to ad valorem taxation shall not be certified to the assessor. Each tax certified shall be certified in whichever of the following forms is applicable:

      (a) In dollars and cents in either the total amount to be raised from all property in the unit;

      (b) In dollars and cents per property; or

      (c) As a rate per $1,000 of assessed value.

      (2) If any unit of local government imposes on property that is subject to ad valorem taxation a tax on property, as defined in ORS 310.140, that is not certified to the assessor under ORS 310.060 for imposition and collection, and a court of competent jurisdiction determines that the tax is subject to the limits of section 11b, Article XI of the Oregon Constitution, the unit of local government shall pay any refunds ordered by the court. No refunds shall be paid from the unsegregated tax collections account, and the assessor shall not be required to redetermine the amount of other taxes imposed on any property that also is subject to the challenged tax.

      (3) Notwithstanding ORS 311.806, when any unit of local government certifies a tax on property to be collected by the tax collector, and the amount of the tax on individual properties is calculated by the unit of local government, any claim for refund of such taxes due to an error in calculation of the amount of the tax shall be made to the unit of local government within the same time and in the same manner as claims for refund are to be made under ORS 311.806. The unit of local government shall pay any refunds it determines to be due to errors in calculation of the amount of the tax out of the funds available to the unit of local government. Such refunds shall not be paid from the unsegregated tax collections account, and the assessor shall not be require