2015 Legislative Session
– Introduced by the Oregon Department of Revenue, House Bill 2486 eliminated the requirement that all urban renewal revenue be categorized as subject to the $10 limitation per $1,000 of real market value under Measure 5 constitutional property tax limits.
DOR introduced this legislation as their ‘fix’ to the Oregon Supreme Court decision in Urhausenv. Eugene which determined that “Property tax revenues are deemed to be dedicated to funding the public school system if the revenues are used exclusively for educational services”. The court reasoned that it was the use of revenues, not the source that determines under what category (education or general government) that Measure 5 limits are calculated.
HB 2486 required the municipality that activated the urban renewal plan to include in notice filed with county assessor a description of amounts subject to Measure 5 education or general government constitutional limits and removed statutory provisions held unconstitutional by Oregon courts. Applies to property tax years beginning on or after July 1, 2016.
After testimony from AORA and others, the legislature removed all provisions dealing with urban renewal and simply used HB 2486 to delete the statutes – ORS 310.155 (2) and (3) – that the Oregon Supreme Court found unconstitutional.