INFORMATIONAL MEETING

TAPES 27 A-B,28 B, 29 A

 

HOUSE REVENUE COMMITTEE

FEBRUARY 2, 2005   1:30 PM   STATE CAPITOL BUILDING

 

Members Present:                      Rep. Tom Butler, Chair

                                                Rep. Vicki Berger, Vice-Chair

                                                Rep. Mark Hass, Vice-Chair

                                                Rep. Brian Boquist

                                                Rep. Sal Esquivel                                       

                                                Rep. Larry Galizio

                                                Rep. Betty Komp

                                                Rep. Andy Olson

                                                Rep. Chuck Riley

                       

 

Witnesses Present:                      Dennis Day, Polk County Assessor

                                                Jerry Hanson, Director of Assessment & Taxation, Washington Co.

Tom Linhares, Director, Tax Supervising & Conservation Commission

 

 

Staff Present:                          Paul Warner, Legislative Revenue Officer

                                                Mary Ayala, Economist

                                                Kristi Bowman, Committee Assistant

                                               

 

TAPE 27, SIDE A

003

Chair Butler

Calls meeting to order at 1:34 p.m.

 

 

 

006

Chair Butler

Committee business announcement for field trip on 2/4/05.

 

 

 

007

Rep. Boquist

Additional information regarding field trip on 2/4/05.

 

 

 

INFORMATIONAL MEETING

 

 

 

045

Jerry Hanson

All speakers provide their professional experience and provide brief program introduction.

 

 

 

087

Hanson

Discusses handout (exhibit 1). Discusses post Measure 50 property tax system.

 

 

 

174

Chair Butler

Asks clarifying question on Measure 50 limit of 3% on assessed value.

 

 

 

180

Hanson

Responds that normally the maximum limit on assessed value is 3%, and many properties are assessed at “real market value” because that value is less than the maximum assessed value, especially with industrial and utility and personal property. This type depreciates more quickly because of other tax depreciations.

 

 

 

199

Hanson

Continues Measure 50 discussion.

 

 

 

215

Dennis Day

Comments on local option/school compression issues. Taxing districts need to be careful about the amount of money asked for and what actually is realized after compression

 

 

 

243

Rep. Riley

Asks for explanation of compression.

 

250

Day

Responds that there is no specific definition of compression in the handout, but continues with specific examples (see comments below for additional information regarding compression).

 

260

Rep. Hass

Comments on local option taxes being considered this session. Asks how compression would affect those taxes.

 

 

 

265

Hanson

Responds that taxes would not be affected. Compression is in the constitution.  Gives specific information regarding Measure 50 compression language.

 

 

 

290

Rep. Hass

Follow-up comment. If there was any way to change state law to increase local option, is there a way to deal with compression parameters. Is it a constitutional or statute issue.

 

 

 

304

Paul Warner

Local option is the amount that can be raised without affecting the Measure 50 formula. First limit is compression. The taxpayer wants to know the impact of an increase, and that depends on the type of property and the various options on that property.

 

 

 

328

Rep. Boquist

Comments on the high number of counties and taxing districts that have compression limits.

 

 

 

340

Chair Butler

Gives examples of compression in his district (Ontario, OR).

 

 

 

370

 

Comments and discussion on compression interspersed.

 

 

 

403

Rep. Hass

Comments on local option recently passed in Beaverton that recently resulted in an excess amount of money for the school district in the second year.

 

 

 

TAPE 28 SIDE A (malfunction)

TAPE 27 SIDE B

005

Hanson

Continues Measure 50 discussion.

 

 

 

020

Hanson

Discusses Wall St. Journal article in handout which discusses revolt against tax assessors in other parts of the country.

 

 

 

030

Hanson

Continues overview using handout.

 

 

 

047

Hanson

Discusses complexities of dealing with Measure 50. 1) There is a limit on how a property can increase value. 2) The term “minor construction” was not clearly defined and is difficult to track over time. 3) Exceptions: how are values assessed if there are multiple changes to the property. Comments that a lot of time is spent on this process.

 

 

 

240

Hanson

Explains how Measure 50 exception is applied to a specific property (see example in the handout).

 

 

 

270

Rep. Berger

Clarifies how the property is taxed before and after improvements. Asks how the exception value is determined.

 

 

 

287

Hanson

Explains that the permit process, copy of plans, and site visit determine valuation.

 

 

 

300

Day

Discusses annual functions in an assessment office (see Assessment/Tax Calendar page in handout).

 

 

 

365

Day

Discusses types of value to maintain. There are now six additional values that must be tracked on all properties.

 

 

 

399

Day

Discusses a real property tax statement (handout) to demonstrate various values.

 

 

 

TAPE 28 SIDE B

030

Chair Butler

Asks for clarification on some of the values stated on tax statement in handout.

 

 

 

048

Day

Explains the different values as applied to this property.

 

 

 

074

Hanson

Adds additional explanation to the value definitions.

 

 

 

079

Rep. Komp

Asks about availability of data regarding property values.

 

 

 

099

Day

Explains that the special assessed value is based on the use of the land, not the zoning.

 

 

 

105

Rep. Esquivel

Comments on assessment appeal situations.

 

 

 

130

Day

Uses specific situations (the change of course of a river or a house that has burnt down) that have occurred in his county to explain examples of appeals.

 

 

 

180

Tom Linhares

Comments on Measure 50 anomaly regarding maximum assessed value and real market value involving reduction of property values.

 

 

 

224

Chair Butler

Follow-up questions about appeal process.

 

 

 

226

Hanson

Explains that the homeowner goes to local assessor and requests an  appeal. Next step is the magistrate division at the tax court, then the tax court, and finally the supreme court.

 

 

 

244

Day

Discusses Changed Property Ratio (see handout) designed to equalize new properties to a similar level as existing properties.

 

 

 

280

Rep. Riley

Asks if all classifications are the same for all counties.

 

 

 

286

Hanson

Responds that these classifications were defined by statute in 1997. Maximum CPR is 1.00.

 

 

 

370

Chair Butler

Asks where assessors can go for further assistance.

 

 

 

383

Hanson

Responds that the county assessors have organizations that provide on-going training as well as access to Dept. of Revenue on-going training. The counties use off-the-shelf software for maintaining their databases, and often small counties will pool their resources to research the best s

 

 

 

444

Chair Butler

Due to time constraints, panel is asked to return to provide the rest of the presentation.

 

 

 

446

Warner

Discusses open dates for further discussion.

 

 

 

TAPE 29 SIDE A

045

Chair Butler

Adjourns meeting at 3:02 p.m.

Tape Log Submitted by:			 		Reviewed by: 
 Kristi Bowman, Committee Assistant		Kim Taylor James, Committee   Coordinator

 

Exhibit Summary:

1. Handout: Oregon Property Tax Administration, Dennis Day and Jerry Hanson, 37 pp., 02/02/05