ORS Chapter 280
Chapter 280 — Financingof Local Public Projects and Improvements;
City and County EconomicDevelopment
2009 EDITION
PUBLICPROJECTS; CITY AND COUNTY DEVELOPMENT
PUBLICFACILITIES, CONTRACTING & INSURANCE
TAXATIONFOR LOCAL PUBLIC IMPROVEMENTS
280.040 Definitionsfor ORS 280.040 to 280.145; use of certain tax revenues
280.050 Providingfunds for financing cost of services, projects, property and equipment
280.055 Obtainingand advancing of funds to county service districts
280.057 Localoption taxes for community colleges; maximum amount
280.060 Levyof local option taxes outside constitutional limitation; duration of levy;approval of levy as approval of bonds
280.064 Periodfor use of revenues raised by local option tax
280.070 Mannerof holding elections for local option tax or permanent rate limit; additionalstatement in ballot title
280.075 Ballotstatements for local option tax measures
280.080 Contentsof order, resolution or ordinance calling election
280.090 Submissionof several proposals to impose local option taxes
280.145 Seriallevy under former law
280.150 Appropriatingmoney and issuing bonds to construct, operate and maintain joint facilities
CITYAND COUNTY ECONOMIC DEVELOPMENT PROJECTS
(Cities)
280.410 Definitionsfor ORS 280.410 to 280.485
280.415 Legislativefindings
280.420 Eligibilityof projects for financing; standards; ordinance for applications
280.422 Exceptionto eligibility standards
280.424 Bond-financedsingle room occupancy rental housing to conform with federal law
280.425 Citypowers concerning property
280.430 Contractualpowers of city; requirements for project loans and leases
280.431 Requiredcondition of purchase for low income single room housing project
280.432 Limitationson housing loans from bond proceeds; discrimination; relocation; conversion
280.435 Limitationon city power
280.440 Authorityto issue revenue bonds
280.445 Factorsconsidered in determining whether to issue bonds
280.450 Issuanceof bonds
280.455 Administrativeexpenses
280.460 Refundingbonds
280.465 Validityof bonds
280.470 Covenantsin bonds
280.475 Limitationsof bonds; recitals
280.480 Powersand rights of bondholders
280.482 Reportrequired; content
280.485 Effectof ORS 280.410 to 280.485 on powers of city
(Counties)
280.500 Countyeconomic development plan; criteria
280.505 Coordinationof plan with other local governments and plans
280.508 Countypublic purpose revolving loan fund
(LotteryFinanced Projects)
280.518 Displayof information that program is financed by State Lottery
280.010 [Repealed by1983 c.260 §13]
280.020 [Repealed by1983 c.260 §13]
280.030 [Repealed by1983 c.260 §13]
TAXATIONFOR LOCAL PUBLIC IMPROVEMENTS
280.040Definitions for ORS 280.040 to 280.145; use of certain tax revenues. (1) As used inORS 280.040 to 280.145:
(a)“Local option tax” means a tax described under section 11 (4) or (7)(c),Article XI of the Oregon Constitution.
(b)“Subdivision” includes only such counties, municipal corporations,quasi-municipal corporations and civil or political corporations orsubdivisions as are empowered by law to levy ad valorem property taxes, exceptthat “subdivision” does not include an education service district.
(2)All ad valorem tax revenues that are received by any subdivision as a result ofa levy under ORS 280.040 to 280.090 and that are derived from an ad valorem taxlevied for purposes other than general operations shall be:
(a)Kept by the treasurer or other financial officer in a fund that is separate anddistinct from other funds of the subdivision.
(b)Expended only for the purpose for which the taxes were imposed. [Amended by1997 c.541 §302; 1999 c.632 §21; 1999 c.1094 §1]
280.050Providing funds for financing cost of services, projects, property and equipment. Funds may beobtained as prescribed in ORS 280.040 to 280.145 for the purpose of financingthe cost of any service, project, property or equipment which a subdivision haslawful power to perform, construct or acquire, and of repairs and improvementsthereto and of maintenance and replacement thereof. [Amended by 1967 c.203 §4]
280.055Obtaining and advancing of funds to county service districts. Funds may beobtained by a county as prescribed by ORS 280.040 to 280.145 for the purpose ofadvancing funds to a district established under ORS 451.410 to 451.610 tofinance the cost of any service facility which the district is authorized toconstruct, maintain and operate. [1969 c.646 §17]
280.057Local option taxes for community colleges; maximum amount. A local optiontax levied by a community college district or community college servicedistrict may not exceed the amount of reduction in ad valorem property taxescaused under ORS 310.200 to 310.242. [1997 c.541 §308b]
Note: 280.057 wasadded to and made a part of 280.040 to 280.145 by legislative action but wasnot added to any smaller series therein. See Preface to Oregon Revised Statutesfor further explanation.
280.060Levy of local option taxes outside constitutional limitation; duration of levy;approval of levy as approval of bonds. (1) Upon approval of a majority of theelectors of a subdivision in a manner that qualifies under section 11 (8),Article XI of the Oregon Constitution, a subdivision may levy local optiontaxes outside the limitation imposed by section 11 (3), Article XI, OregonConstitution, over the period of time that is authorized by the electors. Theamount levied each year shall be:
(a)Uniform, or substantially so, throughout the period during which the taxes arelevied; or
(b)Computed annually at the same dollar rate per thousand dollars assessed valuein the subdivision, such rate to be declared in and made a part of the ballotmeasure to be submitted to the electorate.
(2)Notwithstanding subsection (1) of this section, a subdivision may certify forextension on the assessment and tax roll under ORS 310.060 a lesser amount oflocal option tax or a lesser rate of local option tax if the subdivisiondecides to collect less than the entire local option tax authorized by electors.The subdivision shall certify the lesser amount or rate in the written noticerequired to be made under ORS 310.060.
(3)(a)The period of time authorized by the electors shall not exceed five years or,if the local option tax is for capital projects, the lesser of:
(A)The expected useful life of the capital projects to be financed by the tax; or
(B)Ten years.
(b)A local option tax for capital projects does not exceed the expected usefullife of the capital projects financed by the tax if the estimated weightedaverage life of the tax does not exceed the estimated dollar weighted averageof the capital assets comprising the capital projects that are to be financedby the tax. The estimated dollar weighted average life of capital projects shallbe calculated under rules of the Department of Revenue that ensure that a localoption tax for capital projects is levied for no more than 10 years and no morethan the useful life of the component of the capital projects financed by thetax that has the longest useful life.
(4)(a)All local option taxes authorized by ORS 280.040 to 280.145 that are forcapital projects and that have a term of more than five years shall besubmitted to electors separately from local option taxes with a term of fiveyears or less.
(b)For purposes of this subsection, “capital project” means the acquisition ofland upon which to construct an improvement, the acquisition of a building, theacquisition or construction of improvements, the acquisition of an addition toa building which increases the square footage of the building, the constructionof a building, the construction of an addition to an existing building whichincreases the square footage of the building or the acquisition of andinstallation of machinery and equipment which will become an integral part of abuilding or an addition to a building, the purchase of furnishings, equipmentor other tangible property with an expected useful life of more than one yearor a combination of those items.
(5)If a ballot measure authorizing a local option tax states that the taxingdistrict may issue bonds that are payable from that tax, voter approval of thetax shall constitute voter approval of the bonds, except that the approvalshall not entitle the taxing district to collect a greater amount of tax thanthe taxing district would have been entitled to collect if the ballot measureonly authorized local option taxes and did not authorize bonds. If the localoption tax is approved by voters in a manner that qualifies under section 11(8), Article XI of the Oregon Constitution, then the taxing body may issue thebonds in a principal amount that, together with the estimated interest to bepaid on the bonds while the bonds are outstanding, does not exceed the revenuesestimated to be received from the local option tax levy. A taxing district maypledge the revenues received from the local option tax and the taxing district’sfull faith and credit to pay bonds authorized under this subsection. [Amendedby 1953 c.134 §2; 1977 c.730 §1; 1979 c.241 §24; 1981 c.804 §79; 1989 c.658 §1;1997 c.541 §303; 1999 c.21 §6; 1999 c.559 §4; 1999 c.1094 §2]
280.064Period for use of revenues raised by local option tax. Subject to ORS294.305 to 294.565 and the applicable provisions of a charter, ordinance orresolution of a subdivision, a subdivision may use revenues raised by a localoption tax beyond the period of years during which the subdivision isauthorized to levy the local option tax if the revenue is used for the purposeauthorized by the electors. [2003 c.195 §6]
Note: 280.064 wasadded to and made a part of 280.040 to 280.145 by legislative action but wasnot added to any smaller series therein. See Preface to Oregon Revised Statutesfor further explanation.
280.070Manner of holding elections for local option tax or permanent rate limit;additional statement in ballot title. (1) An election within a county for thepurpose of approving a tax levy or tax rate under ORS 280.060 shall be calledby the county court or board of county commissioners and shall be held on adate specified in ORS 203.085.
(2)An election within a city for the purpose of approving a tax levy or tax rateunder ORS 280.060 or under section 11 (3)(c), Article XI of the OregonConstitution, shall be called by the governing body of the city and held on adate specified in ORS 221.230.
(3)An election within a political subdivision other than a county or city for thepurpose of approving a tax levy or tax rate under ORS 280.060 or under section11 (3)(c), Article XI of the Oregon Constitution, shall be called by thegoverning body of the subdivision and held on a date specified in ORS 255.345.
(4)(a)Except as provided in paragraph (b) of this subsection, the ballot title for ameasure authorizing the imposition of local option taxes shall contain thefollowing additional statement:
______________________________________________________________________________
Thismeasure may cause property taxes to increase more than three percent.
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(b)The ballot title for a measure authorizing the renewal of current local optiontaxes shall contain the following additional statement:
______________________________________________________________________________
Thismeasure renews current local option taxes.
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(c)The statement required by this subsection shall be placed after the question onthe ballot title and may not be considered for purposes of the word countlimitations under ORS 250.035.
(5)As part of the question, the ballot title for a measure authorizing or renewingthe authorization of the imposition of local option taxes shall state:
(a)The length in years of the period during which the proposed local option taxwill be imposed.
(b)The first fiscal year in which the proposed local option tax will be imposed.
(6)As part of the question, the ballot title for a measure authorizing theestablishment of a permanent rate limitation shall contain the followinginformation:
(a)The tax rate per $1,000 of assessed value of the proposed permanent ratelimitation.
(b)The first fiscal year in which the proposed permanent rate limitation will beimposed.
(7)The ballot title for a measure authorizing the imposition of local option taxesor a permanent rate limitation shall be in compliance with ORS 250.036. [Amendedby 1983 c.350 §133; 1997 c.541 §304; 1999 c.632 §22; 2007 c.71 §82; 2009 c.720 §1]
280.075Ballot statements for local option tax measures. (1)Notwithstanding any other law and when not inconsistent with or otherwiseprovided for in the Oregon Constitution, whenever a proposed local option taxis submitted to a vote of the people by any subdivision, the statement in theballot title for the measure that explains the chief purpose of the measure andgives reasons for the measure shall state the total amount of money to beraised by the proposed local option tax, in dollars and cents. If the statementin the ballot title for the measure submitted includes an estimated tax impact,it shall be based on the most current estimate of assessed value from thecounty assessor. The measure shall bear the statement: “The estimated tax costfor this measure is an ESTIMATE ONLY based on the best information availablefrom the county assessor at the time of estimate.”
(2)Subsection (1) of this section does not apply to a local option tax describedin ORS 280.060 (1)(b). For a levy described in ORS 280.060 (1)(b), an estimateof the total amount of money to be raised for each year of the proposed localoption tax shall be stated in dollars and cents. If the levy described in ORS280.060 (1)(b) raises more money than estimated, the excess collections abovethat estimate shall be considered a budget resource for the levy fund in thenext fiscal year of the subdivision. This section does not apply to an electionauthorizing general obligation bonds or the tax levies to repay generalobligation bonds.
(3)The statement or statements required by subsections (1) and (2) of this sectionshall be added to and made a part of the 175-word statement required by ORS250.035. The number of words contained in the statements described insubsections (1) and (2) of this section shall not be included in the 175-wordlimitation. [Formerly 310.395; 2007 c.783 §92]
Note: 280.075 wasadded to and made a part of 280.040 to 280.145 by legislative action but wasnot added to any smaller series therein. See Preface to Oregon Revised Statutesfor further explanation.
280.080Contents of order, resolution or ordinance calling election. The order,resolution or ordinance, as the case may be, pursuant to which the electionrequired by ORS 280.060 is called and held, shall set forth:
(1)The purpose for which the funds to be provided by the tax levies are to beexpended.
(2)The estimated total outlay for such purpose.
(3)The period of time authorized by the electors pursuant to ORS 280.060 (3). [Amendedby 1977 c.730 §2; 1997 c.541 §305; 1999 c.1094 §3]
280.090Submission of several proposals to impose local option taxes. If more thanone proposal to impose local option taxes is submitted to the electors at thesame election, the several ballot measures shall be voted upon separately.However, not more than four separate ballot measures proposing local optiontaxes may be submitted to the electors under the provisions of ORS 280.040 to280.145 within a single calendar year. [Amended by 1979 c.241 §25; 1981 c.804 §80;1999 c.21 §7]
280.100 [Repealed by1997 c.308 §38]
280.110 [Repealed by1997 c.308 §38 and 1997 c.541 §308c]
280.120 [Repealed by1997 c.308 §38 and 1997 c.541 §308c]
280.130 [Repealed by1997 c.308 §38 and 1997 c.541 §308c]
280.140 [Repealed by1997 c.308 §38]
280.145Serial levy under former law. Notwithstanding the amendments to ORS280.040, 280.060, 280.070 and 280.080 by sections 302 to 305, chapter 541,Oregon Laws 1997, a serial levy described in section 11 (7)(b), Article XI ofthe Oregon Constitution, may be levied by the subdivision, including a schooldistrict, as provided in ORS 280.040 to 280.140 (1995 Edition). [1997 c.541 §308;1999 c.21 §8]
280.150Appropriating money and issuing bonds to construct, operate and maintain jointfacilities.Incorporated cities, school districts and counties of this state may jointly,in such manner as they shall agree upon, construct, acquire, own, equip,operate and maintain fac