Senate Bill 118 was heard, along with proposed amendments, on March 21 by the Senate Finance & Revenue Committee. SB 118-1 would exclude from full or partial exemptions or special assessments related to enterprise zones or strategic investment programs, property taxes imposed by school districts or education service districts. The bill would apply to any exemptions or special assessments for properties initially qualified on or after the effective date of this measure.
Being sold as a bill to protect revenues for education, AOC re-characterized it as a bill that raises the question whether the
education community is part of the larger community? After all, the benefits of these economic development programs flow to the whole community and its economy, and grow revenues for school funding and other critical local public services. The programs (2.011, 2.012, 2.013, 2.014, and 2.101) provide immediate investments in exchange for significant mid-and long-term growth in the economy. In fact, the 2017-19 Biennium Oregon Tax Expenditure Report evaluated the five targeted economic development programs as achieving their purposes.
Moreover, the Oregon State Association of County Assessors also opposes the bill for several reasons, including the need to create new tax code areas that may contain only the school district and one property.
A work session on SB 118 has not yet been scheduled.
Contributed by: Gil Riddell | AOC Policy Director