Or. Admin. R. 150-310-0010 - Adjustment of Operating Tax Rate Limitation for Gap Bonds

Current through Register Vol. 61, No. 4, April 1, 2022

(1) For purposes of this rule the following definitions apply:
(a) A "Qualifying Taxing District Obligation," also known as "Gap Bond," means any portion of a local taxing district 1997-98 levy that was used to repay:
(A) Principal and interest for any bond issued before December 5, 1996, and secured by a pledge or explicit commitment of ad valorem property taxes or a covenant to levy or collect ad valorem property taxes;
(B) Principal and interest for any other formal, written borrowing of moneys executed before December 5, 1996, for which ad valorem property tax revenues have been pledged or explicitly committed, or that are secured by a covenant to levy or collect ad valorem property taxes;
(C) Principal and interest for any bond issued to refund an obligation described in paragraph (A) or (B) of this section.
(b) "Operating Tax Rate Limit" means the maximum rate of operating taxes certified by the Department of Revenue that a district may impose.
(c) "Operating Taxes" means ad valorem property taxes that are subject to a permanent rate limit under section 11, Article XI of the Oregon Constitution, or statutory rate limit under ORS 310.236(4), if applicable.
(2) Any taxing district whose Operating Tax Rate Limit was established in 1997-98 and whose operating levy certification for 1997-98 included levy amounts for Gap Bonds which were part of a tax base or other permanent continuing levy authority must have its Operating Tax Rate Limit increased for the tax year following the repayment of the debt obligation as outlined in this rule.
(3) In the year in which the Gap Bond debt is repaid the district must send a letter at least 30 days prior to the end of the fiscal year to the county assessor of each county in which the district imposes taxes with a copy directed to the:

Property Tax Division

Oregon Department of Revenue

PO Box 14380

Salem Oregon 97309-5075

At a minimum, the letter must include the following information:

(a) Name of the taxing district
(b) Levy amount identified as Gap Bonds on the 1997-98 M-50 Form
(c) Amount of Gap Bond debt paid by that levy which has been retired during the current tax year
(4) Within 30 days of receipt of its copy, the Department of Revenue must send a letter to the district and a copy of the letter to the county assessor(s): The letter must include the following information:
(a) The name of the district
(b) The Operating Tax Rate Limit before recalculation
(c) The new Operating Tax Rate Limit increase after recalculation
(d) The tax year for which the new Operating Tax Rate Limit increase will first apply
(5) The Department of Revenue must calculate the increase in the Operating Tax Rate Limit for the district by:
(a) Calculating the percentage the Measure 5 operating tax was reduced in the Measure 50 calculations to arrive at the Measure 50 tax without compression.
(b) Applying the reduction percentage in subsection (a) above to the Gap Bond or portion of Gap Bond authority.
(c) Adding the resulting amount remaining after the reduction calculation in (b) above to the Measure 50 (M5O) tax without compression.
(d) Dividing the new total amount calculated in subsection (c) by the 1997-98 assessed value used to calculate the operating rate limit of the taxing district to arrive at the new Operating Tax Rate Limit. The rate will be carried out seven places and truncated.
(6) The final Operating Tax Rate Limits after all Gap Bond debt is repaid and the calculations, as done by the Department of Revenue, are shown in the following table: [Table not included. See ED. NOTE.]

Notes

Or. Admin. R. 150-310-0010
REV 13-1999, f. 12-30-99, cert. ef. 12-31-99; REV 5-2000, f. & cert. ef. 8-3-00; REV 3-2001, f. 7-31-01, cert. ef. 8-1-01; Renumbered from 150-310.055, REV 24-2016, f. 8-11-16, cert. ef. 9/1/2016; REV 12-2017, f. & cert. ef. 6/15/2017

Table referenced is not included in rule text. Click here for PDF copy of table.

Stat. Auth.: ORS 305.100

Stats. Implemented: ORS 310.055

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