Article XI, Section 11 of the Oregon State Constitution (part 2)

In this post, we continue looking at the subsections of Article XI, section 11 of the Oregon State Constitution.  Article XI is entitled "Corporations and Internal Improvements".  Section 11 deals with a property tax reduction that was voted on by the people back about 1995.  In the previous post, we looked at subsections (1) through (9).  We now continue...

Subsection (10)

This subsection  defines two terms: Ad Valorem Property Tax and Improvements.

Subsection (11)

This subsection defines real market value.  Direct taxes are limited to $15 per $1000 of real market value except taxes to pay back bonds.  If the $15 per $1000 is exceeded, then there is a calculation on how taxes get reduced to that level.

Subsection(12)

This subsection says that a bond to pay back an older bond is included in the provisions.

Subsection(13)

This subsection defines what can be purchased using bond money.  It does include cop cars and firetrucks, provided that their useful life is deemed 5 years or more.  It does not allow maintenance expenses, supplies and equipment.

Subsection(14)

This subsection states that taxes for paying off bond principal and interest are calculated on assessed value not real market value.

Subsection(15)

This subsection discusses urban renewal project funding based on an increase in value and increase in taxes collected, that these additional taxes shall go to funding the urban renewal project only.

Subsection(16)

This subsection grandfathers any urban renewal projects that were enacted from the limits and reductions in subsection (1).

Subsection(17)

This subsection addresses how to handle the taxation year of 1997 in case the amendment passes.

Subsection(18)

This subsection references two different sections of the constitution which have stipulations that taxation has to be done equally.  I do not really see anything from my reading (although it is somewhat superficial), but I suspect that there were doubts expressed and as a result this was inserted as a precautionary measure.

Subsection(19)

This subsection directs that a law is written to limit the ability of local taxing districts to impose new fees or other charges, especially as a means to make up for lost revenue due to the tax reduction.

Subsection(20)

This subsection simply states that if a part of this section is invalidated, the rest remains valid.  This points to the fact that probably some of this really should have been issued as a public law instead of cluttering the constitution with so may details.