Opinion ID: 1155438
Heading Depth: 1
Heading Rank: 1

Heading: INTERPRETATION OF SUBSECTION (3)(a) OF MEASURE 5

Text: Article XI, section 11b, of the Oregon Constitution (Measure 5) limits the taxes that may be imposed on any property by limiting tax rates. Article XI, section 11b(3)(a) contains the following exception: (3) The limitations of subsection (1) of this section apply to all taxes imposed on property or property ownership except[:] (a) Taxes imposed to pay the principal and interest on bonded indebtedness authorized by a specific provision of this Constitution[.] That provision is ambiguous. The phrase authorized by a specific provision of this Constitution could modify the antecedent noun, bonded indebtedness, as the majority holds, or it could modify the antecedent phrase, [t]axes imposed to pay the principal and interest on bonded indebtedness. Although both readings are plausible, the latter reading is more correct. First, the parallel structure between the main part of subsection (3) and paragraph (a) suggests the latter reading. Subsection (3) states that Measure 5's limitations apply to all taxes imposed except those delineated in paragraphs (a) and (b). Paragraph (a) tracks the same wording, excepting [t]axes imposed to meet certain specified purposes. The grammatical aim of subsection (3) and paragraph (a) is to describe taxes. Second, the overriding purpose of Measure 5 is to limit the taxes that may be imposed on any property by limiting tax rates. Coalition for Equit. School Fund. v. State of Oregon, 311 Or. 300, 310, 811 P.2d 116 (1991). The focus of all of Measure 5 is on taxes. Reading subsection (3)(a) to identify a particular kind of tax as excepted suggests that the phrase authorized by a specific provision of this Constitution relates to [t]axes imposed to fulfill the specified purposes. For those reasons, the inquiry should be whether a specific provision of the Oregon Constitution authorizes the imposition of taxes to pay the principal and interest on bonded indebtedness.