GUT & STUFF – Changes to analysis by Legislative Revenue Officer on Impacts of Ballot Measures 5 and 50 on the disparate impacts and prepare a report on the current state property tax system and options to modernize the state property tax system.

The LRO shall study and prepare a report on the disparate impacts, if any, of Article XI, section 11b, of the Oregon Constitution (Ballot Measure 5 (1990)), and Article XI, section 11, of the Oregon Constitution (Ballot Measure 50 (1997)), had on the state property tax system, including concerns related to budgetary needs,
horizontal inequities, economic development and tax incidence for property owners across this state. So the intent is to establish Measures 5 & 50 as a base and allow for an exception to be taxed more on those not qualified as disadvantaged. That won’t pass a court challenge because it violates the constitution, so there is no purpose for this study or bill.

Measure 5 was enacted by the voters in November 1990. It established maximum property tax rates of 0.5% for school districts collectively and 1.0% for all other taxing districts collectively; bond levies were excluded from these limits. Measure 50 was crafted by the 1997 Legislature and referred to, and passed by, voters in May of 1997. (This was in response to the voter enacted Measure 47 from 1996 that was deemed to be unworkable.)

Measure 50 created permanent tax rate limits for taxing districts; it also created the concept of Maximum Assessed Value (initially set at 90% of 1995-96 real market values) and limited its growth to three percent annually. With both Measures 5 and 50 in effect today, Oregon’s property tax system was changed from a levy-based tax system to a rate-based tax system.

Any study will be slanted with intentions for legislation to create more money through higher taxation.  The sponsorship of legislation by LRO is also unconstitutional.

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