Oregon Revised Statutes

Or. Rev. Stat. § 457.440 (2026)

Computation of amounts to be raised from property taxes; notice; rules

✓ current as of May 2026
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      457.440 Computation of amounts to be raised from property taxes; notice; rules. During the period specified under ORS 457.450:

      (1) The county assessor shall determine the amount of funds to be raised each year for urban renewal within the county levied by taxing districts in accordance with Article IX, section 1c, of the Oregon Constitution, and ORS 457.420 to 457.470.

      (2) Not later than July 15 of each tax year, each urban renewal agency shall determine and file with the county assessor a notice stating the amount of funds to be raised for each urban renewal area as follows:

      (a) If the municipality that activated the urban renewal agency has chosen Option One as provided in ORS 457.435 (2)(a), the notice shall state that the maximum amount of funds that may be raised by dividing the taxes under Article IX, section 1c, of the Oregon Constitution, shall be raised for the agency.

      (b) If the municipality that activated the urban renewal agency has chosen Option Two as provided in ORS 457.435 (2)(b), the notice shall state the amount of funds to be raised by the special levy.

      (c) If the municipality that activated the urban renewal agency has chosen Option Three as provided in ORS 457.435 (2)(c), the notice shall state the amount of funds to be raised by special levy in addition to the amount to be raised by dividing the taxes as stated in the ordinance adopted under ORS 457.435 (1).

      (d) For plans that are initially approved or substantially amended to increase maximum indebtedness on or after January 1, 2010, the notice must comply with ORS 457.470.

      (e) If the agency limits the amount that may be raised by the division of taxes, as provided in ORS 457.455 (1), the notice shall comply with ORS 457.455 (1).

      (f) If the plan is not described in paragraph (a), (b), (c), (d) or (e) of this subsection, the notice shall state that the maximum amount of funds that may be raised by dividing the taxes under Article IX, section 1c, of the Oregon Constitution, shall be raised for the agency.

      (3) If a municipality has chosen Option Three pursuant to ORS 457.435, the maximum amount of funds that may be raised for an urban renewal agency by dividing the taxes as provided in Article IX, section 1c, of the Oregon Constitution, may be limited by the municipality in which the urban renewal agency is located. The decision of the municipality to limit the amount of funds to be included in the notice filed under subsection (2) of this section shall be reflected in the certified statement filed by the urban renewal agency with the county assessor.

      (4) Not later than September 25 of each tax year, the assessor of any county in which a joint district is located shall provide, to the assessor of each other county in which the joint district is located, the assessed values of the property in the joint district that is located within the county, including the certified statement value and the increment for each code area containing any urban renewal area located within the joint district, and a copy of the notice filed by the urban renewal agency for the area located within the joint district under subsection (2) of this section.

      (5) The maximum amount of funds that may be raised for an urban renewal plan by dividing the taxes as provided in Article IX, section 1c, of the Oregon Constitution, shall be computed by the county assessor as follows:

      (a) The county assessor shall compute, in the manner required under ORS 457.445, the total consolidated billing tax rate for each code area in which an urban renewal area of the plan is located.

      (b) The assessor shall determine the amount of taxes that would be produced by extending the tax rate computed under paragraph (a) of this subsection against the increment of each code area.

      (c) The total amount determined for all code areas containing urban renewal areas included within the urban renewal plan is the maximum amount of funds to be raised for the urban renewal plan by dividing the taxes.

      (6)(a) The county assessor shall certify to the tax collector the amount of funds to be raised for an urban renewal agency as determined under subsection (2) of this section. The tax collector shall include the amount so certified in the percentage schedule of the ratio of taxes on property prepared under ORS 311.390 and filed with the county treasurer. Notwithstanding ORS 311.395 (6), the county treasurer shall credit the amount to the urban renewal agency and shall distribute its percentage amount to the urban renewal agency as determined by the schedule at the times other distributions are made under ORS 311.395 (7).

      (b) The county assessor shall notify the urban renewal agency of the amounts received under subsection (5) of this section or amounts received pursuant to the notice provided in subsection (2) of this section for each urban renewal plan area. Any amounts received by the urban renewal agency under paragraph (a) of this subsection shall be attributed to the urban renewal plan in which the urban renewal area is included, shall be paid into a special fund of the urban renewal agency for the urban renewal plan and shall be used to pay the principal and interest on any indebtedness issued or incurred by the urban renewal agency to finance or refinance the urban renewal plan.

      (7) Unless and until the total assessed value of the taxable property in an urban renewal area exceeds the total assessed value specified in the certified statement, all of the ad valorem taxes levied and collected upon the taxable property in the urban renewal area shall be paid into the funds of the respective taxing districts.

      (8) The agency may incur indebtedness, including obtaining loans and advances in carrying out the urban renewal plan, and the portion of taxes received under this section may be irrevocably pledged for the payment of principal of and interest on the indebtedness.

      (9) The Department of Revenue shall by rule establish procedures for giving notice of amounts to be raised for urban renewal agencies and for determination of amounts to be raised and distributed to urban renewal agencies.

      (10) The notice required under this section shall serve as the notice required under ORS 310.060 for the special levy described under ORS 457.435.

      (11) Notwithstanding any other provision of this chapter, a city with a population of more than 500,000 on January 1, 2010, may, in lieu of its urban renewal agency, take any actions that an urban renewal agency is authorized to take under this section and any other actions that are required to certify, collect, receive, hold and apply tax revenues raised for the urban renewal agency under Article IX, section 1c, of the Oregon Constitution, and taxes authorized for the urban renewal agency by Article XI, section 11 (16), of the Oregon Constitution. [1961 c.554 §5; 1979 c.621 §26; 1981 c.804 §106; 1983 s.s. c.5 §25; 1985 c.613 §17; 1987 c.158 §87; 1991 c.459 §335a; 1997 c.541 §449; 1999 c.579 §26; 2003 c.190 §§16,17; 2007 c.537 §7; 2009 c.700 §4; 2013 c.579 §3]

Notes of Decisions
Cited in 9 cases (1 in the last 5 years), 1985–2022 · leading case: Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988).
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). · cites it 15× “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). · cites it 6× “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
Dennehy v. Dep't of Revenue, 10 Or. Tax 348 (Or. T.C. 1987). · cites it 26× “Plaintiffs second and third claims are concerned with the procedure for collecting taxes in urban renewal areas and assert that ORS 457.440 violates both Article XI, section 11, and Article I, section 32, of Oregon’s Constitution.”
City of Portland v. Smith, 838 P.2d 568 (Or. 1992). · cites it 4× “ORS 457.440(5)(a) directs the assessor to divide only the frozen value into the total amount of taxes levied by the taxing units to derive a tax rate.”
City of Portland v. Smith, 12 Or. Tax 208 (Or. T.C. 1992). · cites it 10× ““The Tax Court correctly held that the Legislative Assembly did not lack authority to enact ORS 457.440 despite its apparent verbal inconsistency with Article EX, section 1c.”
Urban Renewal Comm. of Oregon City v. Williams, 521 P.3d 494 (Or. Ct. App. 2022). ““ ‘When an urban renewal plan is adopted, the assessor determines and certifies the assessed value of all the taxable property in the urban renewal area as of the assessment date immediately prior to approval of the urban renewal plan. ORS 457.430.”
Scappoose Sand & Gravel, Inc. v. Columbia Cnty., 984 P.2d 876 (Or. Ct. App. 1999). “* * * Tax increment financing places the cost of urban renewal on the property that benefits from the expenditure of the funds so raised.”
Lowthian v. Dep't of Revenue, 707 P.2d 1236 (Or. 1985). “See ORS 457.440. As already noted, ORS 305.275 makes the director the responsible agency, not “the department.”
Dennehy v. Dep't of Revenue, 11 Or. Tax 191 (Or. T.C. 1989). · cites it 2× “The Supreme Court affirmed the decision of this court as to the calculation of tax rates for urban renewal property under ORS 457.440. However, the Supreme Court found that the practice of rounding up in calculating the tax rate under ORS 310.”
— Or. Rev. Stat. § 457.440(1) — 3 cases
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
Dennehy v. Dep't of Revenue, 10 Or. Tax 348 (Or. T.C. 1987). “Plaintiffs second and third claims are concerned with the procedure for collecting taxes in urban renewal areas and assert that ORS 457.440 violates both Article XI, section 11, and Article I, section 32, of Oregon’s Constitution.”
Dennehy v. Dep't of Revenue, 11 Or. Tax 191 (Or. T.C. 1989). “The Supreme Court affirmed the decision of this court as to the calculation of tax rates for urban renewal property under ORS 457.440. However, the Supreme Court found that the practice of rounding up in calculating the tax rate under ORS 310.”
— Or. Rev. Stat. § 457.440(2) — 2 cases
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
— Or. Rev. Stat. § 457.440(2)(a) — 1 case
City of Portland v. Smith, 12 Or. Tax 208 (Or. T.C. 1992). ““The Tax Court correctly held that the Legislative Assembly did not lack authority to enact ORS 457.440 despite its apparent verbal inconsistency with Article EX, section 1c.”
— Or. Rev. Stat. § 457.440(2)(b) — 1 case
City of Portland v. Smith, 12 Or. Tax 208 (Or. T.C. 1992). ““The Tax Court correctly held that the Legislative Assembly did not lack authority to enact ORS 457.440 despite its apparent verbal inconsistency with Article EX, section 1c.”
— Or. Rev. Stat. § 457.440(3) — 1 case
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
— Or. Rev. Stat. § 457.440(4) — 2 cases
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
— Or. Rev. Stat. § 457.440(5) — 1 case
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
— Or. Rev. Stat. § 457.440(5)(a) — 2 cases
City of Portland v. Smith, 838 P.2d 568 (Or. 1992). “ORS 457.440(5)(a) directs the assessor to divide only the frozen value into the total amount of taxes levied by the taxing units to derive a tax rate.”
City of Portland v. Smith, 12 Or. Tax 208 (Or. T.C. 1992). ““The Tax Court correctly held that the Legislative Assembly did not lack authority to enact ORS 457.440 despite its apparent verbal inconsistency with Article EX, section 1c.”
— Or. Rev. Stat. § 457.440(6) — 5 cases
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
City of Portland v. Smith, 838 P.2d 568 (Or. 1992). “ORS 457.440(5)(a) directs the assessor to divide only the frozen value into the total amount of taxes levied by the taxing units to derive a tax rate.”
Dennehy v. Dep't of Revenue, 756 P.2d 13 (Or. 1988). “ORS 457.440 is designed to produce the amounts levied by each taxing unit, but to do so from less than the actual property values by a correspondingly higher rate of levy.”
Urban Renewal Comm. of Oregon City v. Williams, 521 P.3d 494 (Or. Ct. App. 2022). ““ ‘When an urban renewal plan is adopted, the assessor determines and certifies the assessed value of all the taxable property in the urban renewal area as of the assessment date immediately prior to approval of the urban renewal plan. ORS 457.430.”
City of Portland v. Smith, 12 Or. Tax 208 (Or. T.C. 1992). ““The Tax Court correctly held that the Legislative Assembly did not lack authority to enact ORS 457.440 despite its apparent verbal inconsistency with Article EX, section 1c.”
— Or. Rev. Stat. § 457.440(6)(a) — 1 case
Shilo Inn Portland/205, LLC v. Multnomah Cnty., 36 P.3d 954 (Or. 2001). “ORS 457.440(2). To ensure that the amount requested through the division of taxes will be available for distribution to the urban renewal agency, the assessor also determines the maximum amount available for urban renewal by extending the consolidated tax billing rate for each…”
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