Adjustment of city’s post-compression tax rate under certain circumstances

(1) This section applies to a city with a Measure 5 tax estimate that was reduced by compression. (2) Notwithstanding ORS 310.200 to 310.242, the combination of the constitutional and the statutory reductions determined under ORS 310.222 shall not cause a city’s Measure 50 post-reduction taxes prior to additions made in ORS 310.236 (2)(a) and (b), to be less than the lesser of: (a) The city’s Measure 47 comparison taxes; or (b) The city’s Measure 50 pre-reduction taxes. (3) Notwithstanding ORS 310.200 to 310.242, in the case of a city whose voters approved a local option tax in March 1997 of less than $100,000 per year and whose Measure 47 comparison taxes plus the local option taxes exceed the city’s Measure 50 pre-reduction taxes plus local option taxes, the city’s post-reduction Measure 50 taxes shall not be less than $228,000. (4) The Department of Revenue shall increase a city’s post-reduction tax rate by the amount necessary to meet the requirements of subsections (2) and (3) of this section. (5) The department shall also adjust the post-reduction tax rates of each taxing district, other than a school district, taxing the same property as a city affected by subsections (2) and (3) of this section to ensure that the district’s tax revenue is not reduced by more than one-quarter of one percent by the operation of this section. (6) The calculations in this section shall be based on department estimates and shall include the effects of code area compression, but shall not include the effect of property-by-property compression. (7) If the statewide constitutional reduction percentage determined under ORS 310.222 no longer equals 17 percent after the department makes the determinations described in this section, the department shall recalculate the constitutional reduction percentages as described in ORS 310.222 until the statewide reduction percentage equals 17 percent.