ORGANIZATIONAL MEETING

TAPE 9-10, A-B

HOUSE REVENUE COMMITTEE

JANUARY 21, 2003 8:30 AM STATE CAPITOL BUILDING

Members Present: Representative Lane Shetterly, Chair

Representative Joanne Verger, Vice Chair

Representative Phil Barnhart

Representative Vicki Berger

Representative Pat Farr

Representative Mark Hass

Representative Elaine Hopson

Representative Max Williams

Members Excused: Representative Wayne Scott, Vice Chair

Staff Present: Paul Warner, Legislative Revenue Office

Mazen Malik, Legislative Revenue Office

Kathy Tooley, Committee Assistant

TAPE 9, SIDE A

004

Chair Shetterly

Calls meeting to order at 8:38 a.m.

013 033	Mazen Malik Malik	Began presentation, beginning with “Oregon Property Taxes”, (Page 1, Slide 1, Exhibit 1.) Continued presentation beginning with “Home Ownership”, (Page 1, Slide 2, Exhibit 1).
51	Malik	Continued presentation, beginning with “Home Ownership, U.S. and Oregon”, (Page 1, Slide 3, Exhibit 1).
079	Malik	Continued presentation, beginning with “Property Tax System”, (Page 2, Slide 4, Exhibit 1). Questions and discussion interspersed.
151 191	Malik Malik	Continued presentation, beginning “Oregon Property Tax per Capita and % of Income 1975-2002”, (Page 2, Slide 5, Exhibit 1). Continued presentation, beginning “Property Tax per Capita and % of Income – State Rank”, (Page 2, Slide 6, Exhibit 1). Questions and discussion interspersed.
213	Malik	Continued presentation, beginning “Property Value and Tax Rate 1970-2001”, (Page 3, Slide 7, Exhibit 1). Questions and discussion interspersed.
251 275 291 312 325 340 356 395 405 418 431 458	Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik	Continued presentation, beginning “Growth of Imposed Tax Levies 1970-2002”, (Page 3, Slide 8, Exhibit 1). Continued presentation, beginning “Who Levies Taxes on Property?” (Page 3, Slide 9, Exhibit 1). Continued presentation, beginning “What Property is Taxed?” (Page 4, Slide 10, Exhibit 1). Continued presentation, beginning “2001-02 Property Assessed Value Breakdown”, (Page 4, Slide 11, Exhibit 1). Continued presentation, beginning “1979-02 Comparison of Residential and Non-Residential Assessed Value as a % of Total Assessed Value”, (Page 4, Slide 12, Exhibit 1). Continued presentation, beginning “2001-02 Property Assessed Value by Property Class”, (Page 4, Slide 13, Exhibit 1). Continued presentation, beginning “Oregon County Ranking of Overall Total Assessed Value”, (Page 4, Slide 14, Exhibit 1). Continued presentation, beginning “Average Growth in Assessed Value by Property Class from 1990-2002”, (Page 5, Slide 15, Exhibit 1). Continued presentation, beginning “Total Real Market Value Growth Rates 10 year Annual Average (1990-2000)”, (Page 6, Slide 16, Exhibit 1). Continued presentation, beginning “Overview of the Current Property Tax System”, (Page 6, Slide 17, Exhibit 1). Continued presentation, beginning “Property Tax Bill”, (Page 6, Slide 18, Exhibit 1). Continued presentation, beginning “Components of the Tax Statement” (Page 7, Slide 19, Exhibit 1).

TAPE 10, SIDE A

050	Malik	Continued presentation, beginning “Building Blocks of the Property Tax System”, (Page 7, Slide 20, Exhibit 1). Questions and discussion interspersed
094	Malik	Continued presentation, beginning “Measure 5”, (Page 7, Slide 21, Exhibit 1).
098 105 126 150 173 155 195 197 210 223 265	Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik Malik	Continued presentation, beginning “Measure 5 Limit”, (Page 8, Slide 22, Exhibit 1). Continued presentation, beginning “Measure 5 Limit”, (Page 8, Slide 23, Exhibit 1). Continued presentation, beginning “M50 Value and Rate Limit” (Page 8, Slide 24, Exhibit 1). Discussion interspersed. Continued presentation, beginning “M50 Principles, (Page 9, Slide 25, Exhibit 1). Continued presentation, beginning with “Total Property Taxes” (Page 9, Slide 26, Exhibit 1). Continued presentation, beginning with “Value and Rate Limit”, (Page 9, Slide 27, Exhibit 1). Continued presentation, beginning with “Basic Value Limit”, (Page 10, Slide 28, Exhibit 1). Continued presentation, beginning “Value Limit Exceptions”, (Page 10, Slide 29, Exhibit 1). Continued presentation, beginning “Minor Construction” (Page 10, Slide 30, Exhibit 1). Continued presentation, beginning “New Construction”, Page 11,.Slide 31, Exhibit 1). Questions and discussion interspersed. Continued presentation, beginning “2001-02 Property Change Ratios by Property Class”, (Page 11 Slide 32, Exhibit 1).
295 321 329 345 366 457 459	Malik Malik Malik Malik Malik Malik Malik	Continued presentation, beginning with “M50 Established Max Assessed Value (MAV) (Page 11, Slide 33, Exhibit 1). Question and discussion interspersed. Continued presentation, beginning with “Specially Assessed Value (SAV), (Page, Slide 34, Exhibit 1). Continued presentation, beginning “Measure 5 Value”, (Page 12, Slide 35, Exhibit 1). Continued presentation, beginning “Tax Rates”, (Page 12, Slide 36, Exhibit 1). Continued presentation, beginning with “Characteristics of Permanent Rates” (Page 13, Slide 37, Exhibit 1). Questions and discussion interspersed. Continued presentation, beginning “Measure 50, Voter Approved Levies”, (Page 13, Slide 38, Exhibit 1). Continued presentation, beginning “Local Option Election” (Page 13, Slide 39, Exhibit 1).

TAPE 9, SIDE B

034 050 055 071 081 115 125 150	Malik Malik Malik Malik Malik Malik Malik Malik Malik	Continued presentation, beginning “School Local Option”, (Page 14, Slide 40, Exhibit 1). Continued presentation, beginning “General Obligation Bonded Debt”, (Page 14, Slide 41, Exhibit 1). Continued presentation, beginning “Oregon’s Property Tax Limits, (Page 14, Slide 42, Exhibit 1). Continued presentation, beginning “2001-02 Property Taxes Imposed by District and Tax Source”, (Page 15, Slide 43, Exhibit 1). Continued presentation, beginning “2001-02 Breakdown of Taxes”, (Page 15, Slide 44, Exhibit 1). Continued presentation, beginning “Statewide Average Tax Growth Rates Since M50”, (Page 15, Slide 45, Exhibit 1). Questions and discussion interspersed. Continued presentation, beginning with “Measure 50 Tax Calculation” (Page 16, Slide 46, Exhibit 1). Continued presentation, beginning “Measure 5 – Tax Compression” (Page 16, Slide 47, Exhibit 1). Continued presentation, beginning “Current consolidated school rate”, (Page 16, Slide 48, Exhibit 1). Question and discussion interspersed.
185	Malik	Continued presentation, beginning “Tax Compression Occurs, (Page 17, Slide 49, Exhibit 1) Question and discussion interspersed.
200	Malik	Continued presentation, beginning “M5 Compression Losses (in millions) 1991-2002” (Page 17, Slide 50, Exhibit 1.)
240 259 292 300	Malik Malik Malik Malik	Continued presentation beginning with “Local Option Gap Amount – Size and Growth” (Page 17, Exhibit 1, Slide 51). Continued presentation, beginning with “Other Features of the Property Tax System”, (Page 18, Slide 52, Exhibit 1). Questions and discussion interspersed. Continued presentation, beginning “Urban Renewal”, (Page 18, Slide 53, Exhibit 1). Continued presentation, beginning “Urban Renewal Basics”, (Page 18, Slide 54, Exhibit 1). Questions and discussion interspersed.
311	Malik	Continued presentation, beginning “Oregon’s Urban Renewal Agency” (Page 19, Slide 55, Exhibit 1).
345	Malik	Continued presentation, beginning “Urban Renewal” (Page 19, Slide 56, Exhibit 1). Questions and discussion interspersed.
411	Malik	Continued presentation, beginning “UR Revenue Sources, (Page 19, Slide 57, Exhibit 1).
443	Malik	Continued presentation, beginning “Example: UR Division of Tax Calculation (1 code area with UR Excess Value), (Page 20, Slide 58, Exhibit 1). Questions and discussion interspersed.

TAPE 10, SIDE B

053	Malik Malik	Continued presentation, beginning “Urban Renewal Division of Tax Revenue 1998-2000”, (Page 20, Slide 59, Exhibit 1). Continued presentation, beginning “Breakdown of Urban Renewal Division of Tax 1998-1999” (Page 20, Slide 60, Exhibit 1).
080	Malik	Continued presentation, beginning “UR Revenue Sources”, (Page 21, Slide 61, Exhibit 1).
083	Malik	Continued presentation, beginning “UR Maximum Tax Authority”, (Page 21, Slide 62, Exhibit 1). Question and discussion interspersed.
091	Malik	Continued presentation, beginning “UR Special Levy Limit”, (Page 22, Slide 63, Exhibit 1).
098	Malik	Continued presentation, beginning “Options for UR plans (Page 22, Slide 64, Exhibit 1).
105	Malik	Continued presentation, beginning “UR Revenue by Source”, (Page 22, Slide 65, Exhibit 1).
110	Malik	Continued presentation “UR Tax Revenue & Max. Authority 1992-2000, (Page 22, Slide 66, Exhibit 1).
121	Malik	Continued presentation “Trends in UR Program”, (Page 23, Slide 67, Exhibit 1). Question and discussion interspersed.
194	Chair Shetterly	Adjourned 10:08

Tape Log Submitted by,

Kathy Tooley, Committee Assistant Reviewed by Kim Taylor James

Exhibit Summary:

1. Malik, The Property Tax System, 23 pages.