County Examining Taxing Power of Heritage District

This article was in Thursday’s (March 15th, 2018) Herald and News

Written By: Stephen Floyd, H&N Staff Reporter 

Klamath County commissioners are looking into the limitations of a proposed heritage district that would take the place of a temporary levy generating tax revenue for the Klamath County Museum.

During a commissioners’ meeting Wednesday, Commissioner Donnie Boyd said he came across a state law allowing heritage districts to tax up to 0.25 percent of a county’s total land value.

For Klamath County, with roughly $8.56 billion in total property assessment, this would mean the proposed district could raise up to $21.4 million annually. Boyd said he felt very uneasy about creating a district with the discretion to impose such a high volume of taxes.

“I flat don’t feel comfortable giving that kind of power to anyone,” said Boyd.

Ballot issue

A heritage district was proposed to commissioners Feb. 21 as a way to permanently secure property taxes for the museum, rather than a levy requiring renewal every few years. Supporters of the idea have asked commissioners for a resolution placing the issue on the Nov. 6 ballot, rather than supporters gathering signatures to do the same.

Mark Clark, with the Klamath County Museum Foundation, said the intent of the district is to keep the tax rate the same at $0.05 per $1,000 of assessed value. The district would then contract with the county to fund and operate the museum.

Commissioners initially said they would need to consult with county counsel to determine the legal requirements for such a plan. After hearing Boyd’s concerns Wednesday, commissioners again said they need to seek legal advice.

“We want to make sure we do it right,” said Commissioner Derrick DeGroot.

Boyd acknowledged he may have taken the law he read out of context and consulting with counsel will help clear up the matter. But even if the district can be held to the current tax rate, Boyd said he would prefer the temporary levy to a permanent taxing district.

“I would rather have the citizens come back to it every five years,” he said.

Elected board

Clark said Wednesday the citizens would still have a say in how the money was raised and spent by electing the board for the district. He also said the tax rate would not be permanent and could be reduced or eliminated in the event the museum was able to subsist on private funding.

Greg Williams, also with the museum foundation, said it would be beneficial to have a stable revenue source allowing the museum to be aware of what they can expect year after year.

“It would be nice to have permanent funding,” said Williams.

DeGroot said he feels certain a decision will be made to place the matter before voters in November. He said the issue that remains is how the proposal for a district will be defined and communicated.

“I don’t think it’s a matter of if we put it on the ballot, I think it’s what we put on the ballot and understanding what we put on the ballot,” said DeGroot.

To read this article and others on the Herald and News website, please refer to the following link:

County Examining Taxing Power of Heritage District (H&N) 

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