Oregon Ballot Measure 5 (1990)
Encyclopedia
Ballot Measure 5 was a landmark piece of direct legislation
in the U.S. state
of Oregon
in 1990. Measure 5, an amendment to the Oregon Constitution
(Article XI, Section 11), established limits on Oregon's property tax
es on real estate
.
Property taxes dedicated for school funding were capped at $15.00 per $1,000 of real market value per year, and gradually lowered to $5. Property taxes for other purposes were capped at $10 per $1,000 per year. Thus the total property tax rate would be 1.5% at the end of the five-year phase in period. The measure transferred the responsibility for school
funding from local government
to the state, to equalize funding.
The measure was passed in the November 6, 1990 general election
with 574,833 votes in favor, 522,022 votes against. It was one of the most contentious measures in Oregon election history.
numbers are reused, the effect of this measure on the state was significant enough that when Oregonians speak of Measure 5, they are usually referring to the specific measure passed in 1990. Measure 5 is often seen as the beginning of the Oregon tax revolt
. One effect of the measure was that funding for local schools was shifted from primarily local property tax funds to state funds. With this, it led to a general equalization of funding between districts as funds are now given to districts based on the number of students in each district. Schools with higher value property in their districts previously could fund local schools at a higher rate than more economically depressed areas. Passage of the measure and the limits led to some discussion of eliminating county services in Multnomah County
by combining them with Portland
city services or Metro
, as well as talks of combining Multnomah, Washington
, and Clackamas
counties into one large urban county for the Portland metro area.
Portland metropolitan area
, caused a rapid rise in taxes, threatening to force residents on fixed or low incomes to move. Many also liked the provisions of the measure that required equalization of school funding among schools statewide. Proponents hoped or expected that schools would be protected by the introduction of a sales tax
. Opponents warned that the measure would lead to massive cuts in government services.
, the others being Alaska
, Delaware
, Montana
, and New Hampshire
. Furthermore, the measure is blamed for cuts in school programs, the budget crises of 2002 and 2003 and cuts to statewide public safety programs, including deep cuts to the Oregon State Police which never fully recovered from 50% staffing reductions. Many critics say that then-Governor Barbara Roberts
' warning that Measure 5's passage would lead to massive chaos has been borne out. Supporters defend the measure as necessary to curb government spending excesses.
Measure 5 was followed up with Measure 47
in 1996 and Measure 50 in 1997. Measure 47 limited the growth of a property’s assessed value to 3% maximum per year to combat local governments raising assessed values to make up the difference in the rate they could charge. Measure 50 clarified that measure.
Direct democracy
Direct democracy is a form of government in which people vote on policy initiatives directly, as opposed to a representative democracy in which people vote for representatives who then vote on policy initiatives. Direct democracy is classically termed "pure democracy"...
in the U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
of Oregon
Oregon
Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...
in 1990. Measure 5, an amendment to the Oregon Constitution
Oregon Constitution
The Oregon Constitution is the governing document of the U.S. state of Oregon, originally enacted in 1857. As amended the current state constitution contains eighteen sections, beginning with a bill of rights. This contains most of the rights and privileges granted in the United States Bill of...
(Article XI, Section 11), established limits on Oregon's property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
es on real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
.
Property taxes dedicated for school funding were capped at $15.00 per $1,000 of real market value per year, and gradually lowered to $5. Property taxes for other purposes were capped at $10 per $1,000 per year. Thus the total property tax rate would be 1.5% at the end of the five-year phase in period. The measure transferred the responsibility for school
School
A school is an institution designed for the teaching of students under the direction of teachers. Most countries have systems of formal education, which is commonly compulsory. In these systems, students progress through a series of schools...
funding from local government
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...
to the state, to equalize funding.
The measure was passed in the November 6, 1990 general election
General election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
with 574,833 votes in favor, 522,022 votes against. It was one of the most contentious measures in Oregon election history.
Historical significance
Although measureInitiative
In political science, an initiative is a means by which a petition signed by a certain minimum number of registered voters can force a public vote...
numbers are reused, the effect of this measure on the state was significant enough that when Oregonians speak of Measure 5, they are usually referring to the specific measure passed in 1990. Measure 5 is often seen as the beginning of the Oregon tax revolt
Oregon tax revolt
The Oregon tax revolt is a political movement in Oregon which advocates for lower taxes. This movement is part of a larger anti-tax movement in the western United States...
. One effect of the measure was that funding for local schools was shifted from primarily local property tax funds to state funds. With this, it led to a general equalization of funding between districts as funds are now given to districts based on the number of students in each district. Schools with higher value property in their districts previously could fund local schools at a higher rate than more economically depressed areas. Passage of the measure and the limits led to some discussion of eliminating county services in Multnomah County
Multnomah County, Oregon
Multnomah County is one of 36 counties in the U.S. state of Oregon. Though smallest in area, it is the most populous as its county seat, Portland, is the state's largest city...
by combining them with Portland
Portland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
city services or Metro
Metro (Oregon regional government)
Metro, formerly known as Metropolitan Service District, is the regional governmental agency for the Oregon portion of the Portland metropolitan area...
, as well as talks of combining Multnomah, Washington
Washington County, Oregon
- Major highways :* Interstate 5* Interstate 205* U.S. Route 26* Oregon Route 6* Oregon Route 8* Oregon Route 10* Oregon Route 47* Oregon Route 99W* Oregon Route 210* Oregon Route 217* Oregon Route 219-Demographics:...
, and Clackamas
Clackamas County, Oregon
Clackamas County is a county located in the U.S. state of Oregon. The county was named after the Native Americans living in the area, the Clackamas Indians, who were part of the Chinookan people. As of 2010, the population was 375,992...
counties into one large urban county for the Portland metro area.
Arguments for and against
Supporters of Measure 5 were upset because a rise in real estate valuations, caused by an economic boom and the continued influx of new homeowners in the boundedUrban growth boundary
An urban growth boundary, or UGB, is a regional boundary, set in an attempt to control urban sprawl by mandating that the area inside the boundary be used for higher density urban development and the area outside be used for lower density development.An urban growth boundary circumscribes an...
Portland metropolitan area
Portland metropolitan area
The Portland-Vancouver-Hillsboro, OR-WA Metropolitan Statistical Area , also known as the Portland metropolitan area or Greater Portland, is an urban area in the U.S. states of Oregon and Washington centered around the city of Portland, Oregon. The U.S...
, caused a rapid rise in taxes, threatening to force residents on fixed or low incomes to move. Many also liked the provisions of the measure that required equalization of school funding among schools statewide. Proponents hoped or expected that schools would be protected by the introduction of a sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
. Opponents warned that the measure would lead to massive cuts in government services.
Lasting effects and subsequent legislation
The measure has remained controversial since its passage. Oregon remains one of only five states without a sales taxSales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
, the others being Alaska
Alaska
Alaska is the largest state in the United States by area. It is situated in the northwest extremity of the North American continent, with Canada to the east, the Arctic Ocean to the north, and the Pacific Ocean to the west and south, with Russia further west across the Bering Strait...
, Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
, Montana
Montana
Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,...
, and New Hampshire
New Hampshire
New Hampshire is a state in the New England region of the northeastern United States of America. The state was named after the southern English county of Hampshire. It is bordered by Massachusetts to the south, Vermont to the west, Maine and the Atlantic Ocean to the east, and the Canadian...
. Furthermore, the measure is blamed for cuts in school programs, the budget crises of 2002 and 2003 and cuts to statewide public safety programs, including deep cuts to the Oregon State Police which never fully recovered from 50% staffing reductions. Many critics say that then-Governor Barbara Roberts
Barbara Roberts
Barbara Kay Roberts is an American politician from the state of Oregon. A native of the state, she served as the 34th Governor of Oregon from 1991 to 1995. She is the first and, to date, only woman to be elected to that office. A Democrat, Roberts was also the first woman to serve as majority...
' warning that Measure 5's passage would lead to massive chaos has been borne out. Supporters defend the measure as necessary to curb government spending excesses.
Measure 5 was followed up with Measure 47
Oregon Ballot Measure 47 (1996)
Ballot Measure 47 was an initiative in the U.S. state of Oregon that passed in 1996, affecting the assessment of property taxes and instituting a double majority provision for tax legislation...
in 1996 and Measure 50 in 1997. Measure 47 limited the growth of a property’s assessed value to 3% maximum per year to combat local governments raising assessed values to make up the difference in the rate they could charge. Measure 50 clarified that measure.