INFORMATIONAL MEETING

 

TAPES 6-7, A-B

 

 

SENATE REVENUE COMMITTEE

JANUARY 23, 2003   1:00 PM   STATE CAPITOL BUILDING

 

Members Present:                      Senator Ryan Deckert, Chair

                                                Senator Tony Corcoran

                                                Senator Lenn Hannon

                                                Senator Charlie Ringo

 

Members Excused:                     Senator Ted Ferrioli, Vice Chair

                                                Senator Bruce Starr

 

Invited Witness:                      John Phillips, Oregon Department of Revenue

 

Staff Present:                          Paul Warner, Legislative Revenue Office

                                                Mazen Malik, Legislative Revenue Office

 

TAPE 6, SIDE A

005

Chair Deckert

Calls meeting to order at 1:06 p.m.

 

010

Mazen Malik

Introduces himself to the Committee and outlines his area of expertise.  Begins overview of Property Tax orientation.

 

 

 

024

Malik

Discusses slide 2: Home Ownership, Ten Highest and Lowest.

 

 

 

052

Malik

Discusses slide 3: Home Ownership, U.S. and Oregon.

 

 

 

075

Malik

Discusses slide 4: Property Tax System.

 

 

 

105

Malik

Discusses slide 5: Oregon Property Tax per Capita and % of Income.

 

 

 

136

Malik

Discusses slide 6: Property Tax per Capita and % of Income – State Rank.  Questions and answers interspersed.

 

 

 

167

Malik

Discusses slide 7: Property Value and Tax Rate -- 1970 – 2001.

 

 

 

201

Malik

Discusses slide 8: Growth of Imposed Tax Levies – 1970 – 2002.

 

 

 

217

Malik

Discusses slide 9: Who Levies Taxes on Property?

 

 

 

247

Malik

Discusses slide 10: What Property is Taxed?  Questions and answers interspersed.

 

 

 

290

Malik

Discusses slide 11: 2001-02 Property Assessed Value Breakdown.

 

 

 

300

Malik

Discusses slide 12: 1979 – 2002 Comparison of Residential and Non-Residential Assessed Value as a % of Total Assessed Value.  Questions and answers interspersed.

 

 

 

444

Paul Warner

Regarding longer term trends on commercial and industrial property, added that increasingly investment dollars are spent on equipment and less on structures.

470

Malik

Discusses slide 13: 2001-02 Property Assessed Value by Property Class.

 

 

 

482

Malik

Discusses slide 14: Oregon County Ranking of Overall Total Assessed Value.

 

TAPE 7, SIDE A

038

Malik

Discusses slide 15: Average Growth in Assessed Value by Property Class from 1990 – 2002.

 

 

 

052

Malik

Discusses slide 16: Total Real Market Value Growth Rates–10-Year Annual Average (1990 – 2000).

 

 

 

066

Malik

Discusses slide 17: Overview of the Current Property Tax System.

 

 

 

070

Malik

Discusses slide 18: Property Tax Bill.  Questions and answers interspersed.

 

 

 

122

Warner

Adds that local option discussion will be included in the school finance orientation to be presented next week.

 

 

 

153

Malik

Discusses slide 19: Components of the Tax Statement.

 

 

 

175

Malik

Discusses slide 20: Building Blacks of the Property Tax System.

 

 

 

183

Malik

Discusses slides 21, 22, and 23: Measure 5.

 

 

 

198

Malik

Discusses slides 24 and 25: Measure 50.  Questions and answers interspersed.

 

 

 

241

Malik

Discusses slide 26: Total Property Taxes.

 

 

 

257

Malik

Discusses slide 27: Value and Rate Limit.

 

 

 

283

Malik

Discusses slide 28: Basic Value Limit.

 

 

 

299

Malik

Discusses slide 29: Value Limit Exception.

 

 

 

334

Malik

Discusses slide 30: Minor Construction.

 

 

 

340

Malik

Discusses slide 31: Comparison of ways to arrive at assessed value.

 

 

 

367

Malik

Discusses slide 32: 2001-02 Property Change Ratios – by Property Class.  Questions and answers interspersed.

 

 

 

390

Malik

Discusses slide 33: M50 Established Maximum Assessed Value.

 

 

 

423

Malik

Discusses slide 34: Specially Assessed Value.

 

 

 

431

Malik

Discusses slide 35: Measure 5 Value.

 

 

 

444

Malik

Discusses slide 36: Tax Rates.

469

Malik

Discusses slide 37: Characteristics of Permanent Rates.  Questions and answers interspersed.

 

TAPE 6, SIDE B

059

Malik

Discusses slide 38: Measure 50 – Voter Approved Levies.

 

 

 

061

Malik

Discusses slide 39: Local Option Election.

 

 

 

077

Malik

Discusses slide 40: School Local Option.

 

 

 

083

Malik

Discusses slide 41: General Obligation Bonded Debt.

 

 

 

090

Malik

Discusses slide 42: Oregon’s Property Tax Limits.

 

 

 

105

Malik

Discusses slide 43: 2001-02 Property Taxes Imposed by District and Tax Source.

 

 

 

114

Malik

Discusses slide 44: 2001-02 Breakdown of Taxes % of Total Taxes.

 

 

 

117

Malik

Discusses slide 45: Statewide Average Tax Growth Rates Since M50.

 

 

 

123

Malik

Discusses slide 46: Measure 50 Tax Calculation.  Questions and answers interspersed.

 

 

 

162

Malik

Discusses slide 47: Measure 5 – Tax Compression.

 

 

 

192

Malik

Discusses slide 48: Example of figuring tax compression.

 

 

 

219

Malik

Discusses slide 49: Tax Compression Occurs.

 

 

 

225

Malik

Discusses slide 50: M5 Compression Losses 1991 – 2002.

 

 

 

251

Malik

Discusses slide 51: Local Option Gap Amount – Size and Growth.

 

 

 

278

Malik

Discusses slide 52: Other Features of the Property Tax System.

 

 

 

293

John Phillips

In response to question of how mailing date of property tax statements was established, responds that the October 25 mailing date allows tax collectors to print and mail the statements so that the tax due date of November 15 can be achieved.  Further questions and answers interspersed.

 

 

 

376

Malik

Begins discussion of Urban Renewal.  Discusses slide 53 and 54: Urban Renewal Basics.

 

 

 

409

Malik

Discusses slide 55: Oregon’s Urban Renewal Agencies.

 

 

 

430

Malik

Discusses slide 56: Urban Renewal.

 

 

TAPE 7, SIDE B

020

Malik

Discusses slide 57: Urban Renewal Revenue Sources.

 

 

 

049

Malik

Discusses slide 58: Example: Urban Renewal Division of Tax Calculation.  Questions and answers interspersed.

 

 

 

055

Malik

Discusses slide 59: Urban Renewal Division of Tax Revenue 1998-2000.  Questions and answers interspersed.

 

 

 

071

Malik

Discusses slide 60: Breakdown of Urban Renewal Division of Tax 1998-1999.

 

 

 

074

Malik

Discusses slide 61: Urban Renewal Revenue Sources.

 

 

 

084

Malik

Discusses slide 62: Urban Renewal Maximum Tax Authority.

 

 

 

088

Malik

Discusses slide 63: Urban Renewal Special Levy Limit.

 

 

 

090

Malik

Discusses slide 64: Options for Urban Renewal Plans.  Questions and answers interspersed.

 

 

 

108

Malik

Discusses slide 65: Urban Renewal Revenue by Source.

 

 

 

111

Malik

Discusses slide 66: Urban Renewal Tax Revenue & Maximum Authority 1992-2000.

 

 

 

117

Malik

Discusses slide 67: Trends in Urban Renewal Program.  Questions and answers interspersed.

 

 

 

155

Warner

Reminds members that they are invited to attend the House Revenue Committee meeting Friday, January 24, to hear about the School Funding and Revenue Options task force report and report from advisory council members.

 

 

 

175

Chair Deckert

Adjourns meeting at 2:45 p.m.

 

 

Tape Log Submitted by,

 

 

 

Carol Phillips, Committee Assistant Reviewed by Kim Taylor James

 

Exhibit Summary:

1.      The Property Tax System, Malik, 34 pp.