Oregon Administrative Rules › Chapter 150 - DEPARTMENT OF REVENUE › Division 222 - CITY BOUNDARY CHANGES; MERGERS; CONSOLIDATION; WITHDRAWALS › Section 150-222-0110 - Calculating Phase-in City Tax Rates

Current through Register Vol. 63, No. 7, July 1, 2024
(1) Only the tax rate of the city will be
			 affected by this rule.
(2) This
			 calculation shall be done for each category of levy of the city when the
			 assessor is notified by the city that an annexed area is to have its rate
			 phased-in over a number of years under the authority of ORS
			 222.111. The assessor shall use
			 these steps to calculate the city tax rate(s):
(a) Step 1: Establish the annexed area(s) as
			 a separate code area(s).
(b) Step
			 2: Determine the current year rate computation value of the city without the
			 annexed area(s) for which tax rates are being phased in.
(c) Step 3: Determine the current year rate
			 computation value of the annexed area(s) for which tax rates are being
			 phased-in.
(A) If the city certifies only a
			 rate, determine the maximum billing rate. Any tax offset rate is subtracted
			 from the certified rate based on the value of the nonphased-in areas of the
			 city. Multiply the phase-in ratio percentage by the billing rate for each
			 phase-in area established as a separate code area. The result of this
			 calculation will be the city billing rate for that phase-in area.
(B) If the city only certifies a rate, it is
			 not necessary to complete the rest of the steps. The remaining steps only apply
			 in the case where the city has certified a levy in dollars and
			 cents.
(d) Step 4:
			 Multiply the current year taxable assessed value of the annexed area(s) for
			 which tax rates are being phased-in, by the ratio that the tax rate of the
			 annexed area will be to the maximum rate within the area(s) of the city which
			 will pay the maximum tax rate of the city.
(e) Step 5: Add the result(s) of Step 4 of
			 this rule to the value determined in Step 2.
(f) Step 6: Divide the net category of levy
			 for the city by the value calculated in Step 5 and truncate the rate as
			 provided in OAR 150-310-0050. This is the maximum tax rate of the city.
(g) Step 7: Multiply the result of
			 Step 6 by the ratio the rate in the annexed area will be and round to 7 decimal
			 places. The result is the maximum rate of the city for the category of levy in
			 the annexed area for the fiscal year.
(h) Step 8: Multiply the result of Step 7,
			 the rate in the annexed area, by the current year rate computation value of the
			 annexed area. This is the amount to be raised for this category of levy of the
			 city, before any compression due to the limits of Section 11b, Article XI of
			 the Oregon Constitution, in the annexed area.
(i) Step 9: Multiply the result of Step 6
			 (the maximum city rate) by the current year rate computation value of the city
			 without annexed area(s) which will have a ratio of the city tax rate (the value
			 determined in Step 2). This is the amount of tax to be raised for this category
			 of levy of the city, before any compression due to the limits of Section 11b,
			 Article XI of the Oregon Constitution, in the city portion which is paying the
			 maximum rate.
(j) Step 10: Verify
			 the result by adding the results of Step 8 and 9. This amount should equal the
			 city's category of levy, except for any loss due to the truncation of tax
			 rates.