1. League of Oregon Cities: Property Tax Now and in Our Dreams
Panel:
Scot Langton, Deschutes County Assessor
President Pete Truax, Mayor of Forest Grove
Dr. Paul Warner, Legislative Revenue Officer
Wendy Johnson, LOC Intergovernmental Relations Associate

5. Property Taxes Have Become More Stable

6. Oregon’s Property Tax Burden Has Declined (Property Taxes as a % of Personal Income)

7. Property Tax Relief Programs Have Virtually Disappeared (Includes State Funded PTR, ERA, NPH and HARRP, excludes SPTD)

8. Consequences of Oregon’s Property Tax Initiatives
Advantages
Disadvantages
Stability and Predictability for Taxpayers
Stability and Predictability for Local Governments
Taxpayer Acceptance—far fewer appeals
For Taxpayers:
Horizontal Inequities
More Regressive for Low Income Households
For Local Governments:
Not Responsive to Economic Growth or Change
Inflation Nightmare

9. Potential Elements of Property Tax Reform (1)
Tax Relief
Homestead Exemption
Circuit Breaker
Expanded Senior Deferral Program
Increase Value Limit Flexibility
Moving Average Using Multiple Years
Index to Inflation with Max and Min
Reset at Time of Sale
Modify CPR Calculation
Return to Market Value/ Reset Rate Limits

10. Potential Elements of Property Tax Reform (2)
Relax Rate Limits
Increase Measure 5 Caps
Increase Local Option Flexibility
Expand Measure 5 Definition of Capital
Increase Flexibility for Permanent Rate Adjustments
Return to Constrained Levy System
Expand Property Tax Base
Reduce Impact of Exemptions and Partial Exemptions
Add Taxable Property to the Base

13. Property Tax Exemptions– passed in 2015
HB 2126: vertical housing exemption sunset extension
to 2026
HB 2171: nonprofit history and science
museums exemption revision; nonprofit organizations
exemption reform for 2016
HB 3125: new exemption for food processing machinery and equipment used to process grains, eggs, milk and bakery products
HB 3492: new exemption for solar projects (payment in lieu of taxes)

14. SB 611– Central Assessment
Centrally assessed= taxed on real property and personal property (both tangible and intangible)
New property tax exemptions:
Value of franchises of communication companies
Value of satellites used to provide communications services directly to retail customers
Caps intangibles using a historical or original cost formula
Qualified high speed gigabit communication service projects
Data Centers: further clarifications to ensure that data centers are generally not centrally assessed

15. SB 611– Central Assessment
Revenue Impact (in $Millions):
Impact Explanation:
The revenue impact includes losses in revenue for local governments derived from the exemptions provided in the bill that would reduce value and subsequent taxes levied for existing companies in Oregon. The revenue impact does not include estimates for potential companies that could receive exemption under the qualified project investment exemption. This potential loss is not included because, while the exemption will be available to companies meeting the qualified project investment requirements, there is no assurance that an undertaking such as this will occur.
Fiscal Year
Biennium
Local Government
(4.3)
(8.8)
(9.1)
Local Education Districts
(3.5)
(7.2)
(7.5)
Total Revenue Loss
(7.8)
(16.0)
(16.6)

16. Failed 2015 Property Tax Exemption Bills (But Issues Likely to Come Back)
SB 938: industrial property improvements/deferral
HB 3246: energy efficiency improvements/ greenhouse gas reduction improvements
HB 2734: brownfield remediation costs

17. HB 2171– Comprehensive Tax Reform
PROBLEMS TO ADDRESS IN PROPERTY TAX REFORM
Permanent Rate (frozen at 1997)
Assessed Value/Real Market Value
Caps ($10 per $1000 on RMV)
3% Growth limit on Assessed Value
Levy Time Lines
Compression
Property Tax Exemptions and Deferral Programs
Intangible Property

18. THE END
Questions and Answers….