Oregon Statutes - Chapter 306 - Property Taxation Generally - Section 306.359 - Procedures for determining property tax expenditure funding payments.

(1)(a) As soon as is practicable after the end of the regular session of the Legislative Assembly, the Department of Revenue shall determine the new expenditures and expansions that are subject to the funding requirements of ORS 306.353.

(b) If an expansion of an existing property tax expenditure is subject to the funding requirements of ORS 306.353, the department shall calculate a cost adjustment factor. The factor shall be a fraction, the numerator of which is the estimated statewide amount of forgone property taxes attributable to the expenditure for the year for which the determination is being made minus the estimated statewide amount of forgone property taxes attributable to the expenditure for the tax year immediately prior to the expansion. The denominator shall be the estimated statewide amount of forgone property taxes attributable to the expenditure for the year for which the determination is being made.

(c) The department shall distribute to each county assessor a list of:

(A) The expenditures that are subject to the funding requirements of ORS 306.353 because the expenditures are new expenditures; and

(B) The expenditures that are subject to the funding requirements of ORS 306.353 because the expenditures are newly expanded expenditures, along with each newly expanded expenditure’s corresponding cost adjustment factor.

(2) Each county assessor shall estimate the amount of forgone property taxes of the county and of each city and special district in the county for each expenditure listed by the department. If a cost adjustment factor is applicable to the expenditure, the county assessor shall multiply the forgone property tax attributable to the expenditure by the expenditure’s cost adjustment factor. After taking into account cost adjustment factors, the county assessor shall determine the total amount of forgone property taxes from expenditures listed by the department in subsection (1)(c) of this section and shall certify the total amount so determined for the county and for each city and special district in the county to the department. Certification shall be made on or before October 25 of the tax year.

(3) Subject to subsections (4) and (5) of this section, the department shall pay 50 percent of the amounts certified by the county assessor to the county and to the cities and special districts in the county.

(4) If payments are being made for the first fiscal year of the biennium, the department shall use no more than 50 percent of the Property Tax Expenditure Funding Account balance to make payments under this section.

(5) If the amount of moneys available to make payments under this section is less than the total amount being certified by all county assessors, the payments made under subsection (3) of this section shall be proportionally reduced so that the state does not accrue a debt in excess of the amount available for payment. [1999 c.821 §4]

Note: See note under 306.350.

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Last modified: August 7, 2008