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DENNEHY v. DEPT. OF REV.

No. TC 2395; SC S33695.

756 P.2d 13 (1988)

305 Or. 595

Thomas P. DENNEHY, Appellant, v. DEPARTMENT OF REVENUE, State of Oregon, Respondent.

Supreme Court of Oregon, In Banc.

Decided May 17, 1988.

Reconsideration Denied July 6, 1988.

Attorney(s) appearing for the Case

Gregory J. Howe, Portland, appeared and filed a brief on behalf of appellant.

Marilyn J. Harbur, Asst. Atty. Gen., Salem, appeared and filed a brief on behalf of respondent. With her on the brief was Dave Frohnmayer, Atty. Gen., Salem.

John W. Osburn, of Miller, Nash, Wiener, Hager & Carlsen, Portland, filed an amicus curiae brief on behalf of Portland, Beaverton, North Clackamas, and Tigard School Districts.

Howard A. Rankin and Katherine G. Georges, of Rankin, Vav Rosky, Doherty, Maccoll & Mersereau, Portland, and Oliver I. Norville, of Norville & Hiefield, Portland, filed an amicus curiae brief on behalf of the League of Oregon Cities, Gresham City, and the following urban renewal agencies: Albany Redevelopment Agency, Beaverton Urban Renewal Agency, Clackamas County Development Agency, Coos County Urban Renewal Agency, Eugene Renewal Agency, Lake Oswego Redevelopment Agency, Newport Development Com'n, Portland Development Com'n, Seaside Imp. Com'n, Tualatin Development Com'n, and Urban Renewal Agency of the City of Salem.

LINDE, Justice.

Since 1916, the power of the state and other taxing units to raise revenue has been limited according to a formula spelled out in the Oregon Constitution. Following a constitutional amendment adopted in 1960, the Legislative Assembly enacted laws for financing urban renewal projects by using ad valorem taxes on the increase of property values in a redeveloped area to pay expenditures incurred for the project. Plaintiff, a resident and property owner...

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