Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 222 - CITY BOUNDARY CHANGES; MERGERS; CONSOLIDATION; WITHDRAWALS
Section 150-222-0110 - Calculating Phase-in City Tax Rates
Universal Citation: OR Admin Rules 150-222-0110
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Only the tax rate of the city will be affected by this rule.
(2) This calculation shall be done for each category of levy of the city when the assessor is notified by the city that an annexed area is to have its rate phased-in over a number of years under the authority of ORS 222.111. The assessor shall use these steps to calculate the city tax rate(s):
(a) Step 1: Establish the annexed area(s) as
a separate code area(s).
(b) Step
2: Determine the current year rate computation value of the city without the
annexed area(s) for which tax rates are being phased in.
(c) Step 3: Determine the current year rate
computation value of the annexed area(s) for which tax rates are being
phased-in.
(A) If the city certifies only a
rate, determine the maximum billing rate. Any tax offset rate is subtracted
from the certified rate based on the value of the nonphased-in areas of the
city. Multiply the phase-in ratio percentage by the billing rate for each
phase-in area established as a separate code area. The result of this
calculation will be the city billing rate for that phase-in area.
(B) If the city only certifies a rate, it is
not necessary to complete the rest of the steps. The remaining steps only apply
in the case where the city has certified a levy in dollars and
cents.
(d) Step 4:
Multiply the current year taxable assessed value of the annexed area(s) for
which tax rates are being phased-in, by the ratio that the tax rate of the
annexed area will be to the maximum rate within the area(s) of the city which
will pay the maximum tax rate of the city.
(e) Step 5: Add the result(s) of Step 4 of
this rule to the value determined in Step 2.
(f) Step 6: Divide the net category of levy
for the city by the value calculated in Step 5 and truncate the rate as
provided in OAR 150-310-0050. This is the maximum tax rate of the city.
(g) Step 7: Multiply the result of
Step 6 by the ratio the rate in the annexed area will be and round to 7 decimal
places. The result is the maximum rate of the city for the category of levy in
the annexed area for the fiscal year.
(h) Step 8: Multiply the result of Step 7,
the rate in the annexed area, by the current year rate computation value of the
annexed area. This is the amount to be raised for this category of levy of the
city, before any compression due to the limits of Section 11b, Article XI of
the Oregon Constitution, in the annexed area.
(i) Step 9: Multiply the result of Step 6
(the maximum city rate) by the current year rate computation value of the city
without annexed area(s) which will have a ratio of the city tax rate (the value
determined in Step 2). This is the amount of tax to be raised for this category
of levy of the city, before any compression due to the limits of Section 11b,
Article XI of the Oregon Constitution, in the city portion which is paying the
maximum rate.
(j) Step 10: Verify
the result by adding the results of Step 8 and 9. This amount should equal the
city's category of levy, except for any loss due to the truncation of tax
rates.
(3) Example: [Example and Table not included. See ED. NOTE.]
Table referenced is not included in rule text. Click here for PDF of table .
Stat. Auth.: ORS 305.100
Stats. Implemented: ORS 222.111
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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