2015 ORS 457.435¹
Property tax collection methods for existing plans
  • special levies

(1) For each existing urban renewal plan that includes a provision for a division of ad valorem taxes under ORS 457.420 (Plan may provide for division of property taxes) to 457.460 (Financial report required for agency), the municipality that activated the urban renewal agency that is carrying out the plan shall adopt an ordinance choosing one of the options listed in subsection (2) of this section as the method of collecting ad valorem property taxes sufficient to pay, when due, indebtedness issued or incurred to carry out the plan as permitted by section 11 (16), Article XI of the Oregon Constitution.

(2) The options referred to in subsection (1) of this section are as follows:

(a) Option One: To collect amounts sufficient to pay the obligations, as budgeted for the plan, from ORS 457.440 (Computation of amounts to be raised from property taxes), and if the amount estimated to be received from ORS 457.440 (Computation of amounts to be raised from property taxes) is not sufficient to meet the budgeted obligations of the plan for the tax or fiscal year, to make a special levy in the amount of the remainder upon all of the taxable property of the municipality that activated the urban renewal agency and upon all of the taxable property lying outside the municipality but included in an urban renewal area of the plan.

(b) Option Two: To make a special levy in the amount stated in the notice given under ORS 457.440 (Computation of amounts to be raised from property taxes) (2) upon all of the taxable property of the municipality that activated the urban renewal agency, and upon all of the taxable property lying outside the municipality but included in an urban renewal area of the plan.

(c) Option Three: To collect an amount equal to the amount stated in the ordinance adopted as provided in subsection (1) of this section by dividing the taxes pursuant to ORS 457.440 (Computation of amounts to be raised from property taxes), and to make a special levy upon all of the taxable property of the municipality that activated the urban renewal agency and upon all of the taxable property lying outside the municipality but within an urban renewal area of the plan. The county assessor shall adjust the amount of the total assessed value included in the certified statement filed under ORS 457.430 (Certification of assessed value of property in urban renewal area) so that the amount collected by dividing the taxes pursuant to ORS 457.440 (Computation of amounts to be raised from property taxes) does not exceed the amount stated in the ordinance to be collected by dividing the taxes pursuant to ORS 457.440 (Computation of amounts to be raised from property taxes).

(3)(a) The total amount obtained under an option listed in subsection (2) of this section for any plan shall not exceed the maximum amount that could have been certified to the assessor for the plan under ORS 457.440 (Computation of amounts to be raised from property taxes) (1995 Edition) for the tax year beginning July 1, 1997.

(b) For each tax year beginning after the 1997-1998 tax year, the limitation of paragraph (a) of this subsection shall be adjusted by a percentage change equal to the percentage change in the increment within the urban renewal area from the preceding year.

(4)(a) The ordinance choosing the option referred to in subsection (1) of this section shall be adopted no later than July 1, 1998, and shall be applicable for tax years beginning on or after July 1, 1998. If not so adopted, the municipality shall be considered to have chosen Option One as its method of collection of ad valorem property taxes sufficient to pay, when due, indebtedness issued or incurred to carry out the existing urban renewal plan. An option, once chosen, may not be changed to another option. In addition, if Option Three is chosen, the amount specified in the ordinance choosing the option to be collected by dividing the taxes pursuant to ORS 457.440 (Computation of amounts to be raised from property taxes) shall not be changed by subsequent ordinance or amendment to the certified statement.

(b) The option chosen, together with the particulars of the option, including but not limited to any limit on the amount to be received from ORS 457.440 (Computation of amounts to be raised from property taxes), shall be reflected in the notice filed by the urban renewal agency with the county assessor.

(5)(a) The county assessor, or county assessors if the taxable property is in more than one county, shall extend the special levy against all of the taxable property of the municipality that activated the urban renewal agency and all of the taxable property lying outside the municipality but included in an urban renewal area of the plan.

(b) Any amounts collected from special levies made under this section shall be paid into the special fund or funds of the urban renewal agency referred to in ORS 457.440 (Computation of amounts to be raised from property taxes) (6) and shall be used to pay the principal and interest to finance or refinance the existing urban renewal plan or plans of the urban renewal agency.

(6) This section applies to existing urban renewal plans with respect to principal and interest on indebtedness until the indebtedness is fully paid or it is found that deposits in the special fund are sufficient to pay the principal and interest on the indebtedness issued or incurred under the existing urban renewal plan.

(7) Nothing in this section shall prevent the funding of urban renewal indebtedness as provided under ORS 457.440 (Computation of amounts to be raised from property taxes). [1997 c.541 §454; 1999 c.579 §32]

Notes of Decisions

Tax incre­ment financing pro­ce­dure did not violate Article XI, sec­tion 11 of Oregon Constitu­tion which prohibits taxing units use of power of levy to raise more revenue than its tax base. Dennehy v. Dept. of Rev., 305 Or 595, 756 P2d 13 (1988)

Atty. Gen. Opinions

Urban renewal financing by taxes, (1974) Vol 36, p 1005; withdrawal of funds by county assessor from urban renewal agency, (1977) Vol 38, p 1062; expected effect of Ballot Measure 47 (Oregon Constitu­tion Article XI, sec­tion 11g) on invest­ment bonds, (1996) Vol 48, p 67

Law Review Cita­tions

61 OLR 123 (1982)

Chapter 457

Notes of Decisions

Provisions of this chapter creating urban renewal agencies, and pro­vi­sions of Housing Authorities Law, ORS 456.055 (General definitions for ORS 456.055 to 456.235) to 456.235 (Dissolution of housing authorities), are parallel statutory schemes, and thus identical pro­vi­sions in the two acts will be given same effect. Housing Authority of Lane County v. Board of Commissioners, 35 Or App 785, 582 P2d 844 (1978), Sup Ct review denied

Atty. Gen. Opinions

Authority of urban renewal agency in selec­tion of projects and de­linea­tion of project boundaries, (1977) Vol 38, p 1062


1 Legislative Counsel Committee, CHAPTER 457—Urban Renewal, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors457.­html (2015) (last ac­cessed Jul. 16, 2016).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2015, Chapter 457, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano457.­html (2015) (last ac­cessed Jul. 16, 2016).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.