Opinion ID: 1292946
Heading Depth: 1
Heading Rank: 6

Heading: the certified title and proposed substitute

Text: After modifying the original draft ballot title through the administrative process, the Attorney General certified the following ballot title to the Secretary of State: REPEALS TAX EXEMPTION, GRANTS ADDITIONAL BENEFIT PAYMENTS FOR PERS RETIREES QUESTION: Shall tax exemption for PERS pensions be repealed, and amount equaling taxes plus 11 percent interest returned to PERS retirees? EXPLANATION: Removes state income tax exemption for benefits paid to Public Employees' Retirement System members (state, local public retirees). Requires annual, publicly funded payments to PERS retirees that equal previous year's taxes paid on PERS benefits, plus eleven percent interest. Allows limited $5,000 tax exclusion for benefits paid to PERS and federal government retirees. Establishes Public Employees' Tax Account; appropriates $18 million to make annual payments in 1989-91 period. Annual payments to PERS retirees authorized until 1991. Creates Task Force to report to legislature. Petitioners propose that this court substitute a ballot title proposed by petitioners after the end of the administrative process. The proposed substitute reflects written comments made by one or more of the petitioners during the administrative process. Petitioners' suggested substitute title provides: REFUNDS TAXES PLUS INTEREST TO CERTAIN RETIREES; REPEALS TAX EXEMPTION QUESTION: Shall taxes paid by Public Employees' Retirement System retirees be refunded to them, plus 11% interest, from the general fund? EXPLANATION: Repeals state income tax exemption for pensions paid to all Oregon public retirees, but requires publicly financed refunds to Public Employees' Retirement System retirees only, equal to previous year's taxes paid plus 11% interest. Refunds not to be paid to private or to other public retirees. Allows limited $5,000 employees' tax exclusion only to public retirees. Establishes public employees' tax account; appropriates initial $18 million. If measure is not approved, existing law remains in effect. Approval of measure increases financial liability of state.