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Property subject to taxation includes all privately owned real property (land, buildings and improvements) and personal property (machinery, office furniture and equipment) for non-residential taxpayers. T'here is no property tax on household furnishings (exempt in 1913), personal belongings, automobiles (exempt in 19?0), crops, orchards, business inventories or intangible property such as stocks, bonds or bank accounts, except for centrally assessed utilities, for which intangible personal property is subject to taxation. Property used for charitable, religious, fraternal and governmental purposes has been exempt and reductions in assessments have been granted (upon application) for veterans' homesteads, farm and forest land, open space and historic buildings. The assessment roll, a listing of all taxable property, will, under Measure 50, be prepared as of January 1 of each year, moved from July 1. Certain properties, such as utilities, are valued on the unitary valuation approach (ORS 308.505-308.660). Under the unitary valuation approach, the ta~cpaying entity's operating system is defined and a value is assigned for the operating unit using the market value approach (cost, market value and income appraisals). Values are then allocated to the entities' operations in Oregon, then to each county the entity operates in, and finally to site locations. Ballot Measure 50 resets "assessed value" for purposes of property tax levies beginning in fiscal yeaz 1997-98. See "Measure 50" herein. Tax Levy The process of ascertaining and declaring the amount of taxes to be raised from taxpayers is termed "certifying the lery." Authority to levy property taxes is vested with the governing body of each local government unit. The governing body determines the levy annually before July 15 as part of the budget process. Annual budgets for local units aze based on a fiscal year which begins on July 1 and ends the following June 30. Constitutional and statutory provisions limit the amount that a governing body may lery. Strategic Iuvestments Program The Strategic Investments Program ("SIP") was authorized by the Legislature in 1993 to provide tax incentives for capital intensive investments by firms in Oregon's key industries, particularly in the high technology and metals industries. SIP recipients receive a tax break on the assessed value of new construction over $100 million for 15 years. The $100 million cap on assessed value increases by six percent per year. SIP recipients pay an annual Community Service Fee which is equal to one-fourth of the value of the tax break and which is allocated to local governments. Allocation is determined by negotiation of the local governments. The Community Service Fee is outside of the Constitutional property taac rate limitations. Property Tax Collections Oregon Revised Statutes Chapter 311 requires that all tax levy revenues collected by a county for all taxing units within the county be placed in an unsegregated pool, and each taxing unit shazes in the pool in the same proportion as its levy bears to the total of all taxes levied by all taxing units within the county. As a result, the tax collection record of each taxing unit is a pro-rata share of the total tax collection record of all taxing units within the county combined. Under the partial payment schedule, taxes are payable in three equal installments on the fifteenth of November, February and May of the same fiscal year. Discounts are allowed where partial or full prepayment of taxes is made, as follows: (a) A property owner who pays at least two-thirds of the taxes due, but less than the total, on or before November 15 will receive a two percent discount of such taxes paid on or before November 15; or (b) A property owner who pays the total taxes due, on or before November 15, will receive a three percent discount of total ta~ces due. For late payments, interest accrues after each payment due date at the rate of sixteen percent per year. The method ~ of giving notice of taxes due, the County Treasurer's account for the money collected, the division of the taxes 37