Statute Text
Legislative findings; definitions.
(1) The Legislative Assembly finds that Article XI, section 11b, of the Oregon
Constitution, was drafted by citizens and placed before the voters of the State
of Oregon by initiative petition. Article XI, section 11b, of the Oregon
Constitution, uses terms that do not have established legal meanings and
require definition by the Legislative Assembly. Article XI, section 11b, of the
Oregon Constitution, was amended by Article XI, section 11 (11), of the Oregon
Constitution. This section is intended to interpret the terms of Article XI,
section 11b, of the Oregon Constitution, as originally adopted and as amended
by Article XI, section 11 (11), of the Oregon Constitution, consistent with the
intent of the people in adopting these provisions, so that the provisions of
Article XI, section 11b, of the Oregon Constitution, may be given effect
uniformly throughout the State of Oregon, with minimal confusion and
misunderstanding by citizens and affected units of government. As used in the
revenue and tax laws of this state, and for purposes of Article XI, section
11b, of the Oregon Constitution:
(a)(A) Actual
cost means all direct or indirect costs incurred by a government unit in order
to deliver goods or services or to undertake a capital construction project.
The actual cost of providing goods or services to a property or property
owner includes the average cost or an allocated portion of the total amount of
the actual cost of making a good or service available to the property or
property owner, whether stated as a minimum, fixed or variable amount.
(B) Actual cost
includes, but is not limited to, the costs of labor, materials, supplies,
equipment rental, property acquisition, permits, engineering, financing,
reasonable program delinquencies, return on investment, required fees,
insurance, administration, accounting, depreciation, amortization, operation,
maintenance, repair or replacement and debt service, including debt service
payments or payments into reserve accounts for debt service and payment of
amounts necessary to meet debt service coverage requirements.
(b) Assessment
for local improvement means any tax, fee, charge or assessment that does not
exceed the actual cost incurred by a unit of government for design,
construction and financing of a local improvement.
(c) Bonded
indebtedness means any formally executed written agreement representing a
promise by a unit of government to pay to another a specified sum of money, at
a specified date or dates at least one year in the future.
(d)(A) Capital
construction means, for bonded indebtedness issued prior to December 5, 1996,
and for the proceeds of any bonded indebtedness approved by electors prior to
December 5, 1996, that were spent or contractually obligated to be spent prior
to June 20, 1997, the construction, modification, replacement, repair,
remodeling or renovation of a structure, or addition to a structure, that is
expected to have a useful life of more than one year, and includes, but is not
limited to:
(i) Acquisition
of land, or a legal interest in land, in conjunction with the capital
construction of a structure.
(ii) Acquisition,
installation of machinery or equipment, furnishings or materials that will
become an integral part of a structure.
(iii) Activities
related to the capital construction, including planning, design, authorizing,
issuing, carrying or repaying interim or permanent financing, research, land
use and environmental impact studies, acquisition of permits or licenses or
other services connected with the construction.
(iv) Acquisition
of existing structures, or legal interests in structures, in conjunction with
the capital construction.
(B) Capital
construction, for bonded indebtedness issued on or after December 5, 1996,
except for the proceeds of any bonded indebtedness approved by electors prior
to December 5, 1996, that were spent or contractually obligated to be spent
before June 20, 1997, has the meaning given that term in subparagraph (A) of
this paragraph except as provided in subparagraphs (C) and (D) of this
paragraph.
(C) Capital
construction includes public safety and law enforcement vehicles with a
projected useful life of five years or more.
(D) Capital
construction does not include:
(i) Maintenance
and repairs, the need for which could be reasonably anticipated;
(ii) Supplies and
equipment that are not intrinsic to the structure; or
(iii)
Furnishings, unless the furnishings are acquired in connection with the
acquisition, construction, remodeling or renovation of a structure, or the
repair of a structure that is required because of damage or destruction of the
structure.
(e)(A) Capital
costs means costs of land and of other assets having a useful life of more
than one year, including costs associated with acquisition, construction,
improvement, remodeling, furnishing, equipping, maintenance o