OAR 123-623-1950
Local Distribution of Community Service Fee
(1)
The County shall see to the entire annual distribution of funds comprising the community service fee including but not limited to some or all of the following:(a)
The County;(b)
City government(s), if any part of Approved Project is located within incorporated territory;(c)
Any (other) local taxing district that levies taxes on property located in a tax code area containing any part of the Approved Project; or(d)
Local organizations or programs that provide a relevant and significant community service, even without taxing authority.(2)
A distribution formula shall determine the exact percentage of the community service fee received or retained by an entity listed in section (1) of this rule. A schedule of distribution formulae that varies from year to year is allowable.(3)
Establishment of the annual formula may occur in one of only the following two ways:(a)
By official action of the Commission, if subsection (b) of this section is not satisfied; or(b)
By formal agreement that the following local parties have at least accepted in principle, and that is effective on or before the same date of the third month after the Commission’s determination of the Approved Project:(A)
County government;(B)
City government described in subsection (1)(b) of this rule; and(C)
Local taxing districts listed in ORS 198.010 (“District” defined for chapter) or 198.180 (“District” defined for ORS 198.190) and described in subsection (1)(c) of this rule, to the extent that the sum of property tax authority for such participating districts equals or exceeds 75 percent of the total for all such districts (prorated by the anticipated proportion of the Approved Project among tax code areas). Property tax authority consists of the sum of a district’s permanent and local option (levy) rate authority, whether used and unused, but it excludes the levy/tax rates for bonded indebtedness.(4)
If local parties timely reach and effect such an agreement:(a)
They may mutually amend or revise the agreement at a later time; and(b)
The County shall formally report the annual distribution formula to the Department, to:(A)
Confirm that the Commission need not establish such formula; and(B)
Inform about the redistribution of amounts received under ORS 285C.635 (Determination of personal income tax revenue)(3).(5)
In the event that the parties in subsection (3)(b) of this rule have not concluded an agreement (aside from outstanding signatures) before the requisite three-month period, the Commission:(a)
Shall take necessary steps as soon as reasonably possible for purposes of subsection (3)(a), as described in section (6), of this rule; or(b)
May delay official action, at its sole discretion, upon learning that a sufficient set of the parties described in subsection (3)(b) of this rule are having productive negotiations, with which they wish to continue. Under such circumstances:(A)
The Commission may officially sanction an agreement reached when negotiations successfully conclude; and(B)
The parties may not subsequently amend or revise such an agreement in any way that would effectively modify the established distribution formula.(6)
In determining a distribution formula the Commission, as necessary:(a)
May rely primarily on the relative proportions of prevailing property tax rates among affected local taxing districts;(b)
May consider adjusting such proportions according to the Approved Project’s demand or direct impact on the public service(s) provided by each entity, taking account of expected new property tax revenues even with the Abatement, as well as consideration of the goals and purposes of applicable state policies;(c)
Shall set an annual distribution percentage for each entity described in section (1) of this rule that the Commission determines will receive a portion of the distribution; and(d)
Shall in the process of issuing the distribution formula to the County government, notify all entities of this official, final action.(7)
In an SIZ, each Approved Project will entail a separate agreement or Commission action for the distribution of the community service fee arising from it, consistent with this rule. Nevertheless, with respect to any SIZ, the County and affected local parties may agree to a generalized distribution formula and standard agreement for all future Approved Projects.
Source:
Rule 123-623-1950 — Local Distribution of Community Service Fee, https://secure.sos.state.or.us/oard/view.action?ruleNumber=123-623-1950.