Constitution of Oregon: 2013 Version
ARTICLE XI, SECTIONS 11b-15
CORPORATIONS AND INTERNAL IMPROVEMENTS
Section 11b. Property tax categories; limitation on categories; exceptions. (1) During and after the fiscal year 1991-92, taxes imposed upon any property shall be separated into two categories: One which dedicates revenues raised specifically to fund the public school system and one which dedicates revenues raised to fund government operations other than the public school system. The taxes in each category shall be limited as set forth in the table which follows and these limits shall apply whether the taxes imposed on property are calculated on the basis of the value of that property or on some other basis:
MAXIMUM ALLOWABLE TAXES
For Each $1000.00 of
Property’s Real Market Value
Fiscal Year School System Other than Schools
1991-1992 $15.00 $10.00
1992-1993 $12.50 $10.00
1993-1994 $10.00 $10.00
1994-1995 $ 7.50 $10.00
1995-1996 $ 5.00 $10.00
Property tax revenues are deemed to be dedicated to funding the public school system if the revenues are to be used exclusively for educational services, including support services, provided by some unit of government, at any level from pre-kindergarten through post-graduate training.
(2) The following definitions shall apply to this section:
(a) “Real market value” is the minimum amount in cash which could reasonably be expected by an informed seller acting without compulsion, from an informed buyer acting without compulsion, in an “arms-length” transaction during the period for which the property is taxed.
(b) A “tax” is any charge imposed by a governmental unit upon property or upon a property owner as a direct consequence of ownership of that property except incurred charges and assessments for local improvements.
(c) “Incurred charges” include and are specifically limited to those charges by government which can be controlled or avoided by the property owner.
(i) because the charges are based on the quantity of the goods or services used and the owner has direct control over the quantity; or
(ii) because the goods or services are provided only on the specific request of the property owner; or
(iii) because the goods or services are provided by the governmental unit only after the individual property owner has failed to meet routine obligations of ownership and such action is deemed necessary to enforce regulations pertaining to health or safety.
Incurred charges shall not exceed the actual costs of providing the goods or services.
(d) A “local improvement” is a capital construction project undertaken by a governmental unit
(i) which provides a special benefit only to specific properties or rectifies a problem caused by specific properties, and
(ii) the costs of which are assessed against those properties in a single assessment upon the completion of the project, and
(iii) for which the payment of the assessment plus appropriate interest may be spread over a period of at least ten years.
The total of all assessments for a local improvement shall not exceed the actual costs incurred by the governmental unit in designing, constructing and financing the project.
(3) The limitations of subsection (1) of this section apply to all taxes imposed on property or property ownership except
(a) Taxes imposed to pay the principal and interest on bonded indebtedness authorized by a specific provision of this Constitution.
(b) Taxes imposed to pay the principal and interest on bonded indebtedness incurred or to be incurred for capital construction or improvements, provided the bonds are offered as general obligations of the issuing governmental unit and provided further that either the bonds were issued not later than November 6, 1990, or the question of the issuance of the specific bonds has been approved by the electors of the issuing governmental unit.
(4) In the event that taxes authorized by any provision of this Constitution to be imposed upon any property should exceed the limitation imposed on either category of taxing units defined in subsection (1) of this section, then, notwithstanding any other provision of this Constitution, the taxes imposed upon such property by the taxing units in that category shall be reduced evenly by the percentage necessary to meet the limitation for that category. The percentages used to reduce the taxes imposed shall be calculated separately for each category and may vary from property to property within the same taxing unit. The limitation imposed by this section shall not affect the tax base of a taxing unit.
(5) The Legislative Assembly shall replace from the State’s general fund any revenue lost by the public school system because of the limitations of this section. The Legislative Assembly is authorized, however, to adopt laws which would limit the total of such replacement revenue plus the taxes imposed within the limitations of this section in any year to the corresponding total for the previous year plus 6 percent. This subsection applies only during fiscal years 1991-92 through 1995-96, inclusive. [Created through initiative petition filed May 8, 1990, and adopted by the people Nov. 6, 1990]
Section 11c. Limits in addition to other tax limits. The limits in section 11b of this Article are in addition to any limits imposed on individual taxing units by this Constitution. [Created through initiative petition filed May 8, 1990, and adopted by the people Nov. 6, 1990]
Section 11d. Effect of section 11b on exemptions and assessments. Nothing in sections 11b to 11e of this Article is intended to require or to prohibit the amendment of any current statute which partially or totally exempts certain classes of property or which prescribes special rules for assessing certain classes of property, unless such amendment is required or prohibited by the implementation of the limitations imposed by section 11b of this Article. [Created through initiative petition filed May 8, 1990, and adopted by the people Nov. 6, 1990]
Section 11e. Severability of sections 11b, 11c and 11d. If any portion, clause or phrase of sections 11b to 11e of this Article is for any reason held to be invalid or unconstitutional by a court of competent jurisdiction, the remaining portions, clauses and phrases shall not be affected but shall remain in full force and effect. [Created through initiative petition filed May 8, 1990, and adopted by the people Nov. 6, 1990]
Section 11f. School district tax levy following merger. [Created through H.J.R. 14, 1989, and adopted by the people Nov. 6, 1990; Repeal proposed by H.J.R. 85, 1997, and adopted by the people May 20, 1997 (present section 11 adopted in lieu of this section and sections 11, 11a, 11g, 11h, 11i and 11j of this Article)]
Note: Section 11f was designated as “Section 11b” by H.J.R. 14, 1989, and adopted by the people Nov. 6, 1990.
Section 11g. Tax increase limitation; exceptions. [Created through initiative petition filed Dec. 8, 1995, and adopted by the people Nov. 5, 1996; Repeal proposed by H.J.R. 85, 1997, and adopted by the people May 20, 1997 (present section 11 adopted in lieu of this section and sections 11, 11a, 11f, 11h, 11i and 11j of this Article)]
Section 11h. Voluntary contributions for support of schools or other public entities. [Created through initiative petition filed Dec. 8, 1995, and adopted by the people Nov. 5, 1996; Repeal proposed by H.J.R. 85, 1997, and adopted by the people May 20, 1997 (present section 11 adopted in lieu of this section and sections 11, 11a, 11f, 11g, 11i and 11j of this Article)]
Section 11i. Legislation to implement limitation and contribution provisions. [Created through initiative petition filed Dec. 8, 1995, and adopted by the people Nov. 5, 1996; Repeal proposed by H.J.R. 85, 1997, and adopted by the people May 20, 1997 (present section 11 adopted in lieu of this section and sections 11, 11a, 11f, 11g, 11h and 11j of this Article)]
Section 11j. Severability of sections 11g, 11h and 11i. [Created through initiative petition filed Dec. 8, 1995, and adopted by the people Nov. 5, 1996; Repeal proposed by H.J.R. 85, 1997, and adopted by the people May 20, 1997 (present section 11 adopted in lieu of this section and sections 11, 11a, 11f, 11g, 11h and 11i of this Article)]
Section 11k. Limitation on applicability of section 11 (8) voting requirements to elections on measures held in May or November of any year. Notwithstanding subsection (8) of section 11 of this Article, subsection (8) of section 11 of this Article does not apply to any measure voted on in an election held in May or November of any year. [Created through H.J.R. 15, 2007, and adopted by the people Nov. 4, 2008]
Section 11L. Limitation on applicability of sections 11 and 11b on bonded indebtedness to finance capital costs. (1) The limitations of sections 11 and 11b of this Article do not apply to bonded indebtedness incurred by local taxing districts if the bonded indebtedness was incurred on or after January 1, 2011, to finance capital costs as defined in subsection (5) of this section.
(2) Bonded indebtedness described in subsection (1) of this section includes bonded indebtedness issued to refund bonded indebtedness described in subsection (1) of this section.
(3) Notwithstanding subsection (1) of this section, subsection (8) of section 11 of this Article, as limited by section 11k of this Article, applies to measures that authorize bonded indebtedness described in subsection (1) of this section.
(4) The weighted average life of bonded indebtedness incurred on or after January 1, 2011, to finance capital costs may not exceed the weighted average life of the capital costs that are financed with that indebtedness.
(5)(a) As used in this section, “capital costs” means costs of land and of other assets having a useful life of more than one year, including costs associated with acquisition, construction, improvement, remodeling, furnishing, equipping, maintenance or repair.
(b) “Capital costs” does not include costs of routine maintenance or supplies. [Created through H.J.R. 13, 2009, and adopted by the people May 18, 2010]
Section 12. People’s utility districts. Peoples’ [sic] Utility Districts may be created of territory, contiguous or otherwise, within one or more counties, and may consist of an incorporated municipality, or municipalities, with or without unincorporated territory, for the purpose of supplying water for domestic and municipal purposes; for the development of water power and/or electric energy; and for the distribution, disposal and sale of water, water power and electric energy. Such districts shall be managed by boards of directors, consisting of five members, who shall be residents of such districts. Such districts shall have power:
(a) To call and hold elections within their respective districts.
(b) To levy taxes upon the taxable property of such districts.
(c) To issue, sell and assume evidences of indebtedness.
(d) To enter into contracts.
(e) To exercise the power of eminent domain.
(f) To acquire and hold real and other property necessary or incident to the business of such districts.
(g) To acquire, develop, and/or otherwise provide for a supply of water, water power and electric energy.
Such districts may sell, distribute and/or otherwise dispose of water, water power and electric energy within or without the territory of such districts.
The legislative assembly shall and the people may provide any legislation, that may be necessary, in addition to existing laws, to carry out the provisions of this section. [Created through initiative petition filed July 3, 1930, and adopted by the people Nov. 4, 1930]
Section 13. Interests of employes when operation of transportation system assumed by public body. Notwithstanding the provisions of section 20, Article I, section 10, Article VI, and sections 2 and 9, Article XI, of this Constitution, when any city, county, political subdivision, public agency or municipal corporation assumes responsibility for the operation of a public transportation system, the city, county, political subdivision, public agency or municipal corporation shall make fair and equitable arrangements to protect the interests of employes and retired employes affected. Such protective arrangements may include, without being limited to, such provisions as may be necessary for the preservation of rights, privileges and benefits (including continuation of pension rights and payment of benefits) under existing collective bargaining agreements, or otherwise. [Created through H.J.R. 13, 1965, and adopted by the people Nov. 8, 1966]
Section 14. Metropolitan service district charter. (1) The Legislative Assembly shall provide by law a method whereby the legal electors of any metropolitan service district organized under the laws of this state, by majority vote of such electors voting thereon at any legally called election, may adopt, amend, revise or repeal a district charter.
(2) A district charter shall prescribe the organization of the district government and shall provide directly, or by its authority, for the number, election or appointment, qualifications, tenure, compensation, powers and duties of such officers as the district considers necessary. Such officers shall among them exercise all the powers and perform all the duties, as granted to, imposed upon or distributed among district officers by the Constitution or laws of this state, by the district charter or by its authority.
(3) A district charter may provide for the exercise by ordinance of powers granted to the district by the Constitution or laws of this state.
(4) A metropolitan service district shall have jurisdiction over matters of metropolitan concern as set forth in the charter of the district.
(5) The initiative and referendum powers reserved to the people by this Constitution hereby are further reserved to the legal electors of a metropolitan service district relative to the adoption, amendment, revision or repeal of a district charter and district legislation enacted thereunder. Such powers shall be exercised in the manner provided for county measures under section 10, Article VI of this Constitution. [Created by S.J.R. 2, 1989, and adopted by the people Nov. 6, 1990]
Section 15. Funding of programs imposed upon local governments; exceptions. (1) Except as provided in subsection (7) of this section, when the Legislative Assembly or any state agency requires any local government to establish a new program or provide an increased level of service for an existing program, the State of Oregon shall appropriate and allocate to the local government moneys sufficient to pay the ongoing, usual and reasonable costs of performing the mandated service or activity.
(2) As used in this section:
(a) “Enterprise activity” means a program under which a local government sells products or services in competition with a nongovernment entity.
(b) “Local government” means a city, county, municipal corporation or municipal utility operated by a board or commission.
(c) “Program” means a program or project imposed by enactment of the Legislative Assembly or by rule or order of a state agency under which a local government must provide administrative, financial, social, health or other specified services to persons, government agencies or to the public generally.
(d) “Usual and reasonable costs” means those costs incurred by the affected local governments for a specific program using generally accepted methods of service delivery and administrative practice.
(3) A local government is not required to comply with any state law or administrative rule or order enacted or adopted after January 1, 1997, that requires the expenditure of money by the local government for a new program or increased level of service for an existing program until the state appropriates and allocates to the local government reimbursement for any costs incurred to carry out the law, rule or order and unless the Legislative Assembly provides, by appropriation, reimbursement in each succeeding year for such costs. However, a local government may refuse to comply with a state law or administrative rule or order under this subsection only if the amount appropriated and allocated to the local government by the Legislative Assembly for a program in a fiscal year:
(a) Is less than 95 percent of the usual and reasonable costs incurred by the local government in conducting the program at the same level of service in the preceding fiscal year; or
(b) Requires the local government to spend for the program, in addition to the amount appropriated and allocated by the Legislative Assembly, an amount that exceeds one-hundredth of one percent of the annual budget adopted by the governing body of the local government for that fiscal year.
(4) When a local government determines that a program is a program for which moneys are required to be appropriated and allocated under subsection (1) of this section, if the local government expended moneys to conduct the program and was not reimbursed under this section for the usual and reasonable costs of the program, the local government may submit the issue of reimbursement to nonbinding arbitration by a panel of three arbitrators. The panel shall consist of one representative from the Oregon Department of Administrative Services, the League of Oregon Cities and the Association of Oregon Counties. The panel shall determine whether the costs incurred by the local government are required to be reimbursed under this section and the amount of reimbursement. The decision of the arbitration panel is not binding upon the parties and may not be enforced by any court in this state.
(5) In any legal proceeding or arbitration proceeding under this section, the local government shall bear the burden of proving by a preponderance of the evidence that moneys appropriated by the Legislative Assembly are not sufficient to reimburse the local government for the usual and reasonable costs of a program.
(6) Except upon approval by three-fifths of the membership of each house of the Legislative Assembly, the Legislative Assembly shall not enact, amend or repeal any law if the anticipated effect of the action is to reduce the amount of state revenues derived from a specific state tax and distributed to local governments as an aggregate during the distribution period for such revenues immediately preceding January 1, 1997.
(7) This section shall not apply to:
(a) Any law that is approved by three-fifths of the membership of each house of the Legislative Assembly.
(b) Any costs resulting from a law creating or changing the definition of a crime or a law establishing sentences for conviction of a crime.
(c) An existing program as enacted by legislation prior to January 1, 1997, except for legislation withdrawing state funds for programs required prior to January 1, 1997, unless the program is made optional.
(d) A new program or an increased level of program services established pursuant to action of the Federal Government so long as the program or increased level of program services imposes costs on local governments that are no greater than the usual and reasonable costs to local governments resulting from compliance with the minimum program standards required under federal law or regulations.
(e) Any requirement imposed by the judicial branch of government.
(f) Legislation enacted or approved by electors in this state under the initiative and referendum powers reserved to the people under section 1, Article IV of this Constitution.
(g) Programs that are intended to inform citizens about the activities of local governments.
(8) When a local government is not required under subsection (3) of this section to comply with a state law or administrative rule or order relating to an enterprise activity, if a nongovernment entity competes with the local government by selling products or services that are similar to the products and services sold under the enterprise activity, the nongovernment entity is not required to comply with the state law or administrative rule or order relating to that enterprise activity.
(9) Nothing in this section shall give rise to a claim by a private person against the State of Oregon based on the establishment of a new program or an increased level of service for an existing program without sufficient appropriation and allocation of funds to pay the ongoing, usual and reasonable costs of performing the mandated service or activity.
(10) Subsection (4) of this section does not apply to a local government when the local government is voluntarily providing a program four years after the effective date of the enactment, rule or order that imposed the program.
(11) In lieu of appropriating and allocating funds under this section, the Legislative Assembly may identify and direct the imposition of a fee or charge to be used by a local government to recover the actual cost of the program. [Created through H.J.R. 2, 1995, and adopted by the people Nov. 5, 1996]
Section 15a. Subsequent vote for reaffirmation of section 15. [Created through H.J.R. 2, 1995, and adopted by the people Nov. 5, 1996; Repeal proposed by S.J.R. 39, 1999, and adopted by the people Nov. 7, 2000]