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(3) A taxing district which supports a hospital faciliry through ad valorem property ta~ces shall be exempt from the reduction. Local Optior: Provisions. Local governments (including community colleges) other than school districts and educational service districts are authorized to ask voters for limited term levies outside the limits of Measure 50, but subject to the limits of Measure 5, assuming the levy is approved by voters. Capital Construction and Improvements Definition. Measure 50 narrows the definition of capital construction and improvements for which general obligation bonds may be issued and may be exempt from the limitations imposed thereunder and under Measure 5. Capital construction and improvements for which exempt bonded indebtedness can be authorized cannot include reasonably anticipated maintenance and repair items, or supplies and equipment which are not intrinsically a part of the structure, but may include public safety vehicles. ORS 310.140 defines capital construction and improvements to include all activities related to the construction, modification, replacement, repair, remodeling and renovation of structures which have a useful life of over one year; the acquisition of land, or legal interest in land, in conjunction with the capital construction of a structure; the acquisition and installation of machinery, furnishings and equipment which have a life over one year; and activities related to capital construction such as planning, design, studies, permits, and acquisition of fmancing. SB 1215 further modified this statute to include public safety and law enforcement vehicles with a useful life of five years or more and to exclude maintenance and repairs which may be deducted as an expense under the provisions of the Internal Revenue Code of 1986 and which do not add materially to the value of the property nor appreciably prolong its life; and supplies and equipment which aze not intrinsic to the structure means those not necessary to permit a structure to perform the functions for which it was constructed, or which upon installation constitute fixtures or would be subject to ad valorem tauation as real property if not owned by a government. Education Replacement Mandate. Measure 50 requires the Legislative Assembly to replace revenues lost by the ~ public school system because of the property tax limitation measure. The Oregon Legislative Revenue Office has estimated that total property tax revenues collected by the public school system for operations under Measure 50 was $88233 million for the tax year 1997-98 and will be approximately $928.41 million for the tau year 1998-99. Total State funding for the public school system during the biennium will reach $4.2 billion with an addition of $150 million provided by capital bonds approved by voters state-wide at the November 4, 1997 general election. These estimates are based on certain assumptions that may or may not hold true. Fees and Charges Provisions. Measure 50 also contains a prohibition on the increase of fees (except for school districts), taxes, assessments or other charges in the first year without voter approval as alternative funding sources to offset property tax reductions caused by the implementation of the Measure. Legal Uncertainties. The Oregon Legislatwe recently adopted legislation implementing Measure 50. It is possible that the Oregon courts will be required to interpret the language of the Measure and define how it is to be applied. Given these and other variables, the true impact of Measure 50 is not yet known. Property Tax Administration Property tax administration, governed by the Oregon Constitution, the State's taxation laws and regulations of the Department of Revenue includes the processes of assessment, levy and collection of taxes. Implementing legislation for the new constitutional provisions of Measure 50 will substantially change current administrative approaches. Valuation of Property-Assessment The process of identifying and assigning a value to taxable property is termed "assessment." Assessment of property is administered by the County Assessor except for public utility property and certain classes of industrial ~ property which are assessed by the State Department of Revenue. Administrative and judicial remedies are available to property owners who disagree with assessments. 36