Measure 63

Proposed by initiative petition to be voted on at the General Election, November 4, 2008.

Ballot Title

Exempts specified property owners from building permit requirements for improvements valued at/under 35,000 dollars

Result of "yes" vote

"Yes" vote exempts farm and residential real property owners from applicable state and local building permit requirements for improvements valued at 35,000 dollars or less.

Result of "no" vote

"No" vote requires farm and residential real property owners to comply with applicable state/local building permit requirements for improvements valued at/under 35,000 dollars.

Summary

Current law requires owner of residential real property or farm property to comply with applicable state and local building permit requirements when making improvements to real property. Measure creates exemption for residential real property and farm property owners from applicable state and local building permit requirements for improvements when the total value of improvements made within a calendar year does not exceed 35,000 dollars. Measure requires improvements to comply with applicable setback requirements and height limitations. Requires property owners to disclose improvements made without building permits to prospective buyers. Requires electrical wiring made to improvement covered by measure to be performed or approved by licensed electrical contractor. Amount of exemption increases annually to adjust for inflation. Measure supersedes conflicting state and local laws. Other provisions.

Estimate of financial impact

This measure will reduce local government revenue between $4 million and $8 million each year. The measure will reduce state government revenue between $450,000 and $750,000 each year.

The measure will reduce local government spending between $4 million and $8 million each year. The measure has no effect on state government spending.


Explanation of Estimate of Financial Impact

Through a reduction in the number of building permits, this measure will reduce local government revenue between $4 million and $8 million annually and will depend on the level of construction activity and the degree to which inspections are still requested by residential property owners. The measure will also reduce local government spending by a similar amount, as fewer inspections for minor improvements will be required.

Similarly, because the state receives a surcharge of 12% on certain local permit revenue, this measure will reduce state government revenues between $450,000 and $750,000 per year.

County assessors use permit information to identify taxable property. If these permits are no longer issued this property will be more difficult to identify and assess. As a result there may be some loss of property tax revenue for schools and other local governments. Similarly, there may be some loss of school district construction tax revenue.

Committee Members:

Secretary of State Bill Bradbury
State Treasurer Randall Edwards
Scott Harra, Director, Dept. of Administrative Services
Elizabeth Harchenko, Director, Dept. of Revenue
Debra Guzman, Local Government Representative

(The estimate of financial impact and explanation was provided by the above committee pursuant to ORS 250.127.)