<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<!--[if !mso]>
<style>
v\:* {behavior:url(#default#VML);}
o\:* {behavior:url(#default#VML);}
w\:* {behavior:url(#default#VML);}
.shape {behavior:url(#default#VML);}
</style>
<![endif]-->
<style>
<!--
/* Font Definitions */
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri","sans-serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.MsoAcetate, li.MsoAcetate, div.MsoAcetate
{mso-style-priority:99;
mso-style-link:"Balloon Text Char";
margin:0in;
margin-bottom:.0001pt;
font-size:8.0pt;
font-family:"Tahoma","sans-serif";}
p.MsoNoSpacing, li.MsoNoSpacing, div.MsoNoSpacing
{mso-style-priority:1;
margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri","sans-serif";}
span.BalloonTextChar
{mso-style-name:"Balloon Text Char";
mso-style-priority:99;
mso-style-link:"Balloon Text";
font-family:"Tahoma","sans-serif";}
span.EmailStyle20
{mso-style-type:personal;
font-family:"Calibri","sans-serif";
color:windowtext;}
span.EmailStyle21
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#1F497D;}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNoSpacing><b>To: School District Superintendents and Business
Managers<o:p></o:p></b></p>
<p class=MsoNoSpacing><b>From: Oregon Department of Revenue<o:p></o:p></b></p>
<p class=MsoNoSpacing><b><o:p> </o:p></b></p>
<p class=MsoNoSpacing><b>RE: School Construction Tax Limits for fiscal years
2009-10 and 2010-11<o:p></o:p></b></p>
<p class=MsoNoSpacing><b><o:p> </o:p></b></p>
<p class=MsoNoSpacing><b>Background:<o:p></o:p></b></p>
<p class=MsoNoSpacing>Passed in 2007, SB 1036 allowed school districts to
impose a tax on new construction measured by the square footage of improvements
(affordable housing, public buildings, agricultural buildings, hospitals,
private schools, and religious facilities are exempt). SB 1036 defined and
required revenues to be used for capital improvements. Construction taxes
imposed by a school district must be collected by a local government, local
service district, special government body, state agency or state official that
issues a permit for structural improvements regulated by the state building
code. An intergovernmental agreement with local governments collecting the tax
is required and collection expenses are limited to 4% of tax revenue. The
Department of Consumer and Business Services (DCBS) is allowed to establish an
administration fee of .25% of tax revenue. School districts with construction
tax revenue are required to develop long-term facility plans. Construction
taxes may be used for repayment of capital improvement debt. <o:p></o:p></p>
<p class=MsoNoSpacing><b><o:p> </o:p></b></p>
<p class=MsoNoSpacing><b>Tax Limit Calculations:<o:p></o:p></b></p>
<p class=MsoNoSpacing>SB 1036 set tax rate limits of $1 per square foot for
residential use and $0.50 for nonresidential use, along with a $25,000 tax
limit on nonresidential properties. Beginning in 2009, tax rates were indexed
to inflation using the Engineering News-Record Construction Cost Index. As
prescribed in statute, the Oregon Department of Revenue (DOR) is responsible
for updating tax rate limits and notifying affected districts. To notify
affected districts DOR has partnered with Department of Education who receives
updated limit calculations from DOR and notifies the affected districts. <o:p></o:p></p>
<p class=MsoNoSpacing><o:p> </o:p></p>
<p class=MsoNoSpacing>Tax rate limits by fiscal year:<o:p></o:p></p>
<p class=MsoNoSpacing><o:p> </o:p></p>
<p class=MsoNoSpacing><img width=323 height=99 id="Picture_x0020_1"
src="cid:image003.png@01CB1934.32BB7190"><o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
<p class=MsoNormal><b>Questions?</b> Contact: Derrick Gasperini, Communications
Manager, Oregon Department of Revenue<br>
503-945-8565, <a href="derrick.w.gasperini@state.or.us">derrick.w.gasperini@state.or.us</a><o:p></o:p></p>
<p class=MsoNormal><o:p> </o:p></p>
</div>
<p>**********************************************************************<br />This email and any files transmitted with it are confidential and<br />intended solely for the use of the individual or entity to whom they<br />are addressed. If you have received this email in error please notify<br />the sender immediately and delete the communication and any attachments.</p><p>This footnote also confirms that this email message has been swept by<br />MIMEsweeper for the presence of computer viruses.<br />**********************************************************************</p>
</body>
</html>