Local Budgeting Manual, 150-504-420 - Oregon State Library - State ...
and excluded from limitation. This resolution or ordinance is the basis for the certification of tax limitation category that is submitted to the assessor (ORS 294.555). The categorization of tax may be included in the resolution or ordinance imposing the ad valorem tax. Such a resolution would show the amount of ad valorem tax by fund by category. For example, a nonschool local government could declare the tax by fund and category as follows: General Excluded Government from Limitation Limitation General Fund $200,000 Debt Service Fund $111,000 Category Total Total Tax $311,000 $200,000 $111,000 See Chapter 13 for more information about tax limitation categories and certifying ad valorem property taxes to the assessor. Adopting the Budget Without Total Taxing Authority Approval If a tax request election is held after July 1, the governing body must still adopt and appropriate the budget before June 30. This legal requirement gives the local government authority to make expenditures after July 1. The governing body must adopt and appropriate the budget in full, anticipating approval of the tax ballot measure. However, the district should not resolve to impose or categorize the tax until it has voter approval. Extension to Certify Taxes/Late Tax Failure Adopt and appropriate the budget by June 30, even if a part of the taxing authority still requires voter approval. The local government must request by July 15 an extension from the assessor to certify its taxes. The written request must state the reason for the request and if the district will be levying to pay for bonded debt. No other documents need to be submitted to the assessor at this time [OAR 150-294.555(2)-(A)]. The assessor may grant an extension up to October 1 [ORS 310.060(8)]. Tax notices submitted after October 1 cannot be placed on the tax roll. If the local option tax fails, the governing body, by ordinance or resolution after a public hearing, adjusts budgeted resources and reduces appropriations to reflect a decrease in available resources [OAR 150-294.435(1)-(B)]. The governing body can reduce expenditures and revenues without republishing the budget summary. 52 Reducing appropriations and amending the budget estimates after a local option tax fails require decisions by the governing body. The tax failure could change the financial plan for the fiscal year. It is advisable to begin this decision-making process with enough time before the election to prepare an amended budget. Then if the voters reject the local option tax request, the amended budget is ready in time to meet the extended filing deadline provided by the assessor. The figures in the adopted column of the budget detail sheets must match the figures appropriated in the amended resolution. The governing body must adopt the amended budget, which will reflect any reduction in appropriations by fund, and resolve to impose the taxes as approved by the voters in the amended budget. An authorized official of the municipal corporation dates and signs the resolution. The amended budget, revised appropriations and taxing authority then become official for the rest of the current fiscal year. When the local government’s taxing authority is finally determined, it must submit the following to the county assessor by the extended filing date: The documents submitted to the assessor’s office include the following: • two copies of the notice of property tax, which includes the categorization certification and the statement of the budget committee approved tax amounts; • two copies of the resolution statements that adopt the budget, make appropriations, and declare and categorize taxes; and • two copies of the ballot measure for any tax that received voter approval. Distribution of the Tax Certification Documents By each July 15, a local government that is subject to Local Budget Law, and imposes an ad valorem tax or a “tax on property,” submits the required documents to the county assessor and, where applicable, the tax supervising and conservation commission. The documents include: • Two copies of the notice of property tax containing the categorization certification and the statement of the budget committee approved tax amounts. • Two copies of the resolution statements that adopt the budget, make appropriations, and declare and categorize taxes. • Two copies of the ballot measure for any tax that received voter approval. • Your complete budget only if requested by the assessor or the Department of Revenue. These statutory requirements are found and cross-referenced in ORS 294.555(2) and ORS 310.060. Administrative
Rule 150-294.555(2)-(B) offers a more detailed explanation of the required procedure and documentation. All local governments that impose an ad valorem tax must submit two copies of the tax certification document and resolutions to the assessor in the county where the principle office of the local government is located. If a local government is located in more than one county, in addition to the distribution described above, one copy of all the documents must be sent to each assessor of the other counties in which the government is located [ORS 310.060(7)]. If a local government, which is subject to Local Budget Law, cannot levy or chooses not to impose an ad valorem tax, it must file a copy of the resolution adopting and appropriating the budget with the Department of Revenue [ORS 294.555(1)]. Send resolutions to Department of Revenue, Property Tax Division, PO Box 14380 NE, Salem OR 97309–5075. 53 Not later than September 30 of each year, provide a complete copy of the budget document to the clerk of the county where the principal office of the taxing district is located. If the taxing district is located in more than one county, provide a copy to the clerk of each county in which any part of the district is located [ORS 310.060(7)]. When required, submit one copy of the budget document to the tax supervising and conservation commission. Furnish a copy of the budget document to the county treasurer if the treasurer makes payments for bonds issued by the local government. School districts are required to submit copies of the budget document to the Department of Education and their educational service districts. Do not submit copies of the budget document to the county assessor unless requested to do so. Examples of Resolutions Required by ORS 294.435 Example 1—Organizational Unit Budget: Resolution Adopting the Budget Be it resolved that the City Council of the City of Baylor hereby adopts the budget for fiscal year 2000-2001 in the sum of $788,406 now on file at the City Hall. Resolution Making Appropriations Be it resolved that the amounts for the fiscal year beginning July 1, 2000, and for the purposes shown below are hereby appropriated as follows: General Fund Administration Department $50,703 Police Department 131,103 Fire Department Non-Departmental: 27,170 Transfer to Fire Equipment Reserve 7,500 General Operating Contingency 5,000 Fund Total Utility Fund $221,476 Personal Services $112,730 Materials and Services 118,700 Capital Outlay 1,000 Transfer to Debt Service Fund 2,462 Fund Total $234,892 Resolution Imposing Taxes Debt Service Fund Debt Service $113,000 Fund Total Community Center Fund $113,000 Materials and Services $7,000 Transfer to Debt Service Fund 4,300 Fund Total Street Fund $11,300 Materials and Services $38,500 Capital Outlay 35,000 Contingency 5,000 Fund Total Fire Equipment Reserve Fund $78,500 Capital Outlay $-0- Be it resolved that the City Council of Baylor hereby imposes the taxes provided for in the adopted budget in the aggregate amount of $230,995; and that these taxes are hereby imposed for tax year 2000-2001 upon the assessed value of all taxable property within the district.
150-504-420 (Rev. 2-02) Local Budge