Section 306.353 - Property tax expenditures to be funded(1) If, for tax years beginning on or after July 1, 2001, a new property tax expenditure is created, or an existing property tax expenditure is expanded, 50 percent of the amount of the property tax revenues of a city, county or special district that are forgone as a result of the new expenditure or expansion shall be funded by amounts appropriated to the Property Tax Expenditure Funding Account established under ORS 306.356.(2) Subsection (1) of this section applies: (a) Only to the operating taxes, as defined in ORS 310.055, of the city, county or special district.(b) To the extent that the legislative Act creating the new expenditure or expansion also did not offset the loss of revenue by repealing or restricting one or more property tax expenditures that were in effect for the tax year immediately prior to the tax year in which the new expenditure or expansion first applies.(3) As used in ORS 306.353 to 306.359: (a) "Property tax expenditure" or "expenditure" means a property tax exemption or special assessment of the assessed value of property for ad valorem property tax purposes.(b) "Special district" does not include a taxing district that imposes property taxes for the purpose of funding the public school system.(4) Legislation that extends the applicability or operative period of a property tax expenditure is not subject to the provisions of ORS 306.353 to 306.359.(5) Legislation that authorizes a local taxing district to exempt a class of property from the taxes of that local taxing district is not subject to the provisions of ORS 306.353 to 306.359.