|
AN ACT TO END PROPERTY TAXES BE IT ENACTED BY THE PEOPLE OF OREGON:
Sections 11 and 11a of Article XI of the Constitution of the State of Oregon are repealed and new sections 11 and 11a are adopted in lieu thereof which sections shall read:
Section 11 (1) On and after July 1, 1999, there shall be no tax imposed on or levied against real or personal property.
(2) The state legislative assembly shall adopt legislation imposing a sales tax on retail goods and certain retail services as defined by law. The sales tax shall not exceed five percent (5%), and shall not be levied on shelter, essential medical expenses including health insurance, motor vehicle fuel, food or home consumption, seed and fertilizer for farm production of food, crops, heat, power, and other essential services as defined by law.
(3) Under no circumstances shall there be any tax, fee, charge or assessment against property while the sales tax is in effect. Incurred charges and assessments for local improvements as defined by section 11b of Article XI of this Constitution as of the date this section was approved by voters, are not prohibited or considered a tax on property for purposes of this section.
(4) Sales tax revenues shall be collected by the state and distributed to local governments and taxing districts to replace revenues lost due to abolition of property taxes. Because existing bonded indebtedness creates a contractual obligation, notwithstanding subsection (8) of this section, revenue generated by the sales tax shall be dedicated first to paying contractual obligations existing as a result of voter approved bonded indebtedness existing on or before the effective date of this 1998 Amendment.
(5) The total sales tax rate shall not be increases to a rate exceeding five percent (5%), except with the approval of not less than two-thirds of the electors voting in an election held on the first Tuesday after the first Monday of any November. Any increase in the rate which would make the total sales tax rate greater than five percent (5%) shall not be in effect for a period greater than two years.
(6) A county, city, district, or other unit of local government shall not impose a local retail sales tax, which together with the state sales tax would exceed the limits set forth in this section.
(7) So as not to create an undue burden on businesses, businesses shall be reasonably reimbursed for the cost of collecting sales tax revenue. The rate of reimbursement shall be established by the state legislative assembly, and may be based on a sliding scale so as to reimburse lower volume businesses a higher percentage of revenues collected than higher volume businesses.
(8) The state legislative assembly shall adopt legislation establishing the exact rate of the sales tax (at a rate at or below five percent (5%), to ensure that to the extent possible under the restrictions set forth in this section, revenue generated by the sales tax is sufficient to replace, approximately, the revenue each local government and taxing district would have received from property taxes (other than taxes levied to pay voter approved bond indebtedness) in the tax year 1999-2000, and to reimburse retail businesses and the state for the cost of collecting and administering the sales tax. The sales tax rate actually imposed may be as much as five percent (5%), with the excess revenue, that revenue collected from taxes levied at a rate above the rate set by the state legislative assembly to replace property tax revenues and reimburse collection and administration costs, dedicated to repaying bond indebtedness and financing future capital construction projects. The state legislative assembly shall adopt a formula whereby the money collected for capital construction projects is distributed fairly to local governments and taxing districts. The revenue so dedicated may not be used to finance local government of taxing district operations unless approved by two-thirds of the voters in a November election.
(9) For purposes of this section, all taxes imposed in lieu of ad valorem property taxes, including privilege taxes enacted to produce in lieu of ad valorem property taxes, shall be treated in the same manner as ad valorem property taxes, reduced to zero, and prohibited from reenactment.
(10) SEVERABILITY. If any phrase, clause or part of this Act is invalidated by a court of competent jurisdiction, the remaining phrases, clauses and parts shall remain in full force and effect. |
|
