Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 457 - URBAN RENEWAL
Section 150-457-0420 - Urban Renewal Certification, Calculation and Distribution
Universal Citation: OR Admin Rules 150-457-0420
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions: For purposes of this rule:
(a) "Consolidated
billing tax rate" means:
(A) For reduced rate
plans, the total of all taxing district billing tax rates used to extend taxes,
after any adjustments to reflect tax offsets, but does not include:
(i) Any urban renewal special levy rate;
(ii) Any local option tax rate if
the tax was approved by the voters after October 6, 2001;
(iii) Any exempt bonded indebtedness tax rate
(except for Portland Police and Fire Pension and Disability bonds, if so
issued) approved by the voters after October 6, 2001; or
(iv) The portion of Portland Public School
District's permanent rate levy described in OAR 150-457.440(2) section (13)
that the district notifies the assessor to exempt from division of tax.
(B)
(i) For standard rate plans, the total of all
taxing district billing tax rates used to extend taxes, after any adjustments
to reflect tax offsets, but does not include any urban renewal special levy
rate or rates of new local option taxes.
(ii) Notwithstanding paragraph (1)(a)(B)(i),
if an urban renewal agency filed an impairment certificate under ORS
457.445 with respect to a
standard rate plan, the rates of new local option taxes that were identified in
the impairment certificate must be included in the total.
(b) "Division of tax" means:
(A) For purposes of determining the amount of
division of tax to use in tax calculation, the amount calculated by multiplying
the tax rate for each taxing district levy in a code area by the increment
value used in that code area and summing the product for all code areas in the
plan area. Only those taxing district tax rates that are part of the
consolidated billing tax rate for that plan are used for this calculation.
(B) For purposes of computing the
estimate of the division of tax portion of the maximum authority for existing
plans, the amount calculated by multiplying the consolidated billing tax rate
for the code area by the increment value used in the code area and summing the
product for all code areas in the plan. Only those taxing district tax rates
that are part of the consolidated billing tax rate are used for this
calculation.
(c)
"Division of tax rate" means the rate determined for each taxing district levy
within the consolidated billing tax rate for an urban renewal plan. This rate
is calculated by dividing the division of tax amount by the taxable assessed
value of any shared property for that district. This is the rate that is
multiplied by the taxable assessed value of any shared property of the district
to determine the amount of division of tax extended before compression on that
property from that levy for that plan.
(d) "Existing plan" means an urban renewal
plan that provides for a division of ad valorem property taxes as described
under ORS 457.420 to
457.460, adopted by ordinance
before December 6, 1996, that meets the conditions of 457.010(4).
(e) "Frozen value" means:
(A) The assessed value of the property in an
urban renewal plan area at the plan's inception, as certified by the assessor
under ORS 457.430 and OAR 150-457.430; or
(B) The value stated by the agency
in the notice to the assessor pursuant to ORS
457.455(2).
(f) "Increment value"
means the positive value obtained by subtracting the frozen value in a plan
area from the total assessed value in a plan area, calculated code area by code
area. Negative results are disregarded, resulting in the code area having zero
increment value.
(g) "Increment
value used" means:
(A) For an Option Three
existing plan, that portion of the increment value in the plan area necessary
to raise the amount of division of tax stated in the ordinance selecting Option
Three that was adopted by the urban renewal agency under ORS
457.435, or a lesser amount of
increment value specified by the agency under paragraph (B) of this subsection.
(B) For plans for which the urban
renewal agency specifies, pursuant to ORS
457.455(1) or
457.470, an amount of assessed
value less than the full increment amount that is available, the amount of
increment value specified. The assessor must apportion to the code areas in the
plan area the amount of increment specified by the agency.
(C) For all other plans "increment value
used" means "increment value."
(h) "Maximum authority" means the limitation
on the amount of revenue to be raised for the year for an existing plan area,
as described in ORS 457.435(3).
Only plans that are existing plans have a maximum authority amount. The maximum
authority is adjusted each year to reflect growth in assessed value within the
plan area as provided in ORS
457.435(3)(b).
(i) "New local option tax" means a
local option tax described in ORS
457.445(5) that
is approved by taxing district electors after January 1, 2013.
(j) "Rate computation value" means the total
assessed value in an ad valorem taxing district, plus the value of Fish and
Wildlife properties and of Non-Profit Housing properties, minus urban renewal
increment value used.
(k) "Reduced
rate plan" means any urban renewal plan that is:
(A) Adopted before December 6, 1996,
designated as an existing plan, and also designated as an Option One plan;
(B) Adopted before December 6,
1996, was an existing plan designated as an Option One plan on October 6, 2001,
and was substantially amended as described in ORS
457.085(2)(i)(A) or
(B) on or after October 6, 2001;
(C) Adopted on or after October 6, 2001; or
(D) Adopted before December 5,
1996, and the governing body of the city or county that adopted the plan
irrevocably elects to change the plan from being a standard rate plan to a
reduced rate plan, pursuant to ORS
457.445(4), and
provides the assessor by July 15 of the first tax year it is effective, a copy
of the resolution or ordinance making the election.
(l) "Shared property" is property that is
both within a taxing district that overlaps an urban renewal plan area, and
within the boundaries of a municipality that activated an urban renewal agency.
It also includes any area of a plan that extends beyond the boundaries of the
activating municipality for that plan.
(m) "Standard rate plan" means an urban
renewal plan that is not a reduced rate plan.
(2) Urban renewal agencies making use of tax increment financing must certify their tax increment financing request to the county assessor under ORS 310.060 and pursuant to OAR 150-457.440(2) by July 15 using Department of Revenue Form UR-50 Notice to Assessor for the current tax year. The assessor may, for cause, grant an extension of this date up to October 1.
(3) The assessor must separately calculate the estimated revenue to be raised from each plan area within the territory of a taxing district. To make this calculation the assessor must:
(a) Determine whether the plan is a standard
rate plan or a reduced rate plan. Calculate the consolidated billing tax rate
accordingly;
(b) Determine the
maximum authority of an existing plan by multiplying last year's maximum
authority by the percentage growth in plan increment value this year as
provided in ORS 457.435(3);
(c) Determine the estimated amount
to be raised by the division of tax for the plan. For each code area within the
plan area, multiply the consolidated billing tax rate by the increment value
used in the code area. Add the amounts of all code areas within a plan; and
(d) Determine the maximum amount
of the special levy, if any, for each existing urban renewal plan by
subtracting the estimated amount to be raised by the division of tax from the
maximum authority of the plan. The maximum special levy cannot be less than
zero.
(4) If the plan is an Option One plan:
(a) The assessor must
calculate the maximum amount of urban renewal taxes to be raised through the
division of tax as provided in section (3) of this rule, or a lesser amount of
division of tax using the increment value used that is specified by the agency,
according to the agency's certification on Form UR-50.
(b) If the agency requests one hundred
percent of the division of tax and a special levy amount on Form UR-50, the
assessor must calculate and extend a special levy for the amount certified,
provided the total amount of the special levy plus the estimated division of
tax amount is equal to or less than the maximum authority of the plan as
determined under subsection (3)(b) of this rule.
(c) If the total of the special levy
certified for the plan area plus the estimated division of tax amount computed
for the plan by the assessor exceeds the maximum authority of the plan, the
assessor must reduce the amount of the special levy until the total of the
special levy and the estimated division of tax amount equals the maximum
authority for the plan.
(d) If,
instead of requesting one hundred percent of division of tax, an agency
certifies on Form UR-50 an amount of increment value used, the assessor must
not calculate a special levy for that plan.
(5) If the plan is an Option Three plan:
(a) The agency must certify on Form UR-50 the
amount stated in the ordinance selecting Option Three as the amount to be
collected through the division of taxes, or the amount of increment value that
the agency estimates will raise some lesser amount of division of tax.
(b) If the agency certifies the
amount of division of tax stated in the ordinance selecting Option Three, the
assessor must calculate the amount of increment value necessary to raise the
division of tax amount stated in the ordinance. The amount calculated by the
assessor is the increment value used.
(c) If the agency certifies the amount of
increment value that the agency estimates will raise some lesser amount of
division of tax, the amount specified is the increment value used.
(d) If the agency certifies a special levy
and certifies the amount of division of tax stated in the ordinance selecting
Option Three, and the total special levy plus the estimated division of tax
amount computed for the plan by the assessor exceeds the maximum authority of
the plan, the assessor must reduce the special levy until the total of the two
equals the maximum authority.
(e)
If the agency certifies a special levy and certifies an amount of increment
value used that the agency estimates will raise an amount of division of tax
that is less than the amount stated in the ordinance selecting Option Three,
and the total of the special levy plus the estimated division of tax amount
computed by the assessor using that amount of increment value exceeds the total
that would have been available under the plan's maximum authority had the
agency certified the amount of division of tax stated in the ordinance
selecting Option Three, the assessor must reduce the special levy amount so
that the total of the special levy and the estimated division of tax equals the
total that would have been available under the plan's maximum authority, had
the agency certified the amount of division of tax stated in the ordinance
selecting Option Three.
(6) If the plan is not an existing plan, the agency must certify on Form UR-50:
(a) One
hundred percent of the amount of division of tax; or
(b) The amount of increment value used that
the agency estimates will raise some lesser amount of division of tax, pursuant
to ORS 457.455(1) or
457.470.
(7) The assessor must:
(a) Apportion the increment value used to the
code areas in the plan area in the same proportions as the increment value is
distributed among those code areas.
(b) If the full increment value in a code
area is less than the amount of increment value used that is apportioned to the
code area under subsection (7)(a) of this rule, the assessor must calculate the
division of tax using the full increment value. No increment value is then used
in calculating the taxes of the ad valorem taxing districts for the year.
(c) If the full increment value
exceeds the amount of the increment value used, the assessor must use the
remaining increment value in calculating the taxes of the ad valorem taxing
districts for the current year.
(8) The assessor must:
(a) Use the rate computation value in
calculating taxes for a taxing district that has an urban renewal plan area
within its boundaries and whose rate is part of the consolidated billing tax
rate for the plan.
(b) Calculate
the urban renewal special levy tax rate for each plan area using the current
year taxable value of all taxable property in the municipality that adopted the
plan and any portion of the urban renewal plan area outside of the
municipality. Current year taxable value includes the value of Non-profit
Housing properties, Fish and Wildlife properties and urban renewal increment
value.
(c) Calculate urban renewal
special levy tax rates on a plan area by plan area basis. If one plan area of
an agency extends beyond the boundary limits of the activating municipality,
only the special levy rate for that plan area is extended beyond the boundaries
of the municipality.
(d) Unless
otherwise specifically provided by law, no tax offset applies to the special
levy rate.
(9) The assessor must determine the tax rate for each code area for each tax levy that an ad valorem district certifies as follows:
(a) Determine the rate certified by the
district for tax rate levies or calculate a tax rate for dollar amount levies;
(b) Subtract any offsets as
applicable; and
(c) Subtract any
division of tax rate for that district applicable to that code area from the
result of subsection (9)(b) of this rule.
(10) The assessor must calculate a total division of tax rate for each code area. This is the total of the division of tax rates from all of the levies from all taxing districts with shared property in that code area, if such rates are in the consolidated billing tax rate.
(11) The division of tax rate may have two components. One is the total of rates derived from any local option tax levies. The other component is the total of rates derived from any other levies. The assessor must treat the amount of taxes derived from each of the two total rates separately for purposes of determining compliance with the limitations of section 11(b) Article XI of the Oregon Constitution.
(12) The assessor must calculate the amount of tax on each account that is distributed to each urban renewal agency as follows:
(a) For each property within a
shared property area the assessor must calculate the division of tax amount
extended by multiplying the taxable assessed value of the account by the
division of tax rate for each plan area.
(b) For each property within a shared
property area that has an urban renewal special levy, the assessor must
calculate the amount extended for the special levy by multiplying the taxable
assessed value of the account by the rate calculated for each urban renewal
special levy.
(c) If taxes exceed
the limitations in either category of section 11(b) Article XI of the Oregon
Constitution, the assessor must reduce the taxes to the category limit. The
division of tax portion derived from local option levies must be reduced
proportionately with all other similarly categorized local option levies before
any other taxes in the category are reduced.
(13) The special levy and the division of tax must be imposed on all taxable property in the municipality that activated the urban renewal agency and any portion of the urban renewal plan area outside of the municipality that is shared property for that plan.
(14) The tax statement must display at a minimum for each agency, under the applicable limitation category, the total combined dollar amount imposed for the urban renewal special levy and the division of tax for that account.
(15) In preparing the percentage distribution schedule under ORS 311.390, the tax collector must use the dollar amount generated for urban renewal division of tax and the dollar amount imposed for urban renewal special levy for each urban renewal agency.
Forms and Publications referenced are available from the agency.
Stat. Auth.: ORS 305.100 & 457.470
Stats. Implemented: ORS 457.440, 457.445 & 457.470
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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