Article XI, Section 11 of the Oregon State Constitution

In this post, we will look at section 11 of Article XI of the Oregon State Constitution.  Article XI is entitled Corporations and Internal Improvements.  Section 11 deals with property tax.  It is actually quite long and will need to be looked at in 2 separate posts.

Section 11, Subsection (1)

This subsection created a reset to assessed property values and generally established that the assessed value could not be increased by 3% per year unless something special happens to the property during that year.  There is also a limit in (1)(f) that the assessed value cannot exceed the market value.  These kinds of dampening structures might make things seem unpainful for home owners during good times, but there are dangers for the state/city/county in bad times.

Section 11, Subsection (2)

This subsection defines that the reset and increase limits in subsection (1) should apply to properties in special circumstances to a certain extent and that laws may be made to define the exact rules to do so.

Section 11, Subsection (3)

This subsection seeks to define a rate limit for property taxes. But since there are some special cases to be considered, this subsection is quite long and complexly worded.

Section 11, Subsection (4)

This subsection describes what kind of levies can be imposed via a question on the ballot for voters to vote on.  However, the levy can only be in force for 5 years, or for capital projects, 10 years.

Section 11, Subsection (5)

This subsection defines additional exceptions to the tax reduction and increase limits imposed on subsection (1).  As an example, where there was a levy created to pay for a bond issue for a capital project, this would not be reduced nor would it be subject to the increase limit if that was the original plan.

Section 11, Subsection (6)

This subsection provides yet another exception to the reduction clause which is any levy or tax paid as property tax that goes to fund the local hospital.

Section 11, Subsection (7)

This subsection provides rules for dealing with levies in ballot questions which are contemporaneous with the proposed constitutional amendment.

Section 11, Subsection (8)

This subsection gives participation percentage requirement for any election other than the biennial general election.

Section 11, Subsection (9)

This subsection states that the State will provide, out of the general fund, money to the public school system that might be lost due to the reductions in subsection (1).