(1) Subject to the limitations of section 11, Article XI, Oregon Constitution, the board may levy and collect, or cause to be levied and collected, taxes for a
period of 10 years for the purpose of paying the obligations of the district prior
to acquisition or construction of its system and the receipt of the first revenues
therefrom. In any one year, the tax shall not exceed one-twentieth of one percent (0.0005) of
the real market value of all taxable property within the district, computed in accordance
with ORS 308.207. The accumulated percentages for the 10-year period shall not exceed one-fourth of
one percent (0.0025).
(2) No part of such taxes shall be levied and collected for the purpose of paying
either principal or interest, or both, on any revenue bonds issued by the district.
(3) In the event of inadequacy of the revenues of the district to pay the costs of
operation and maintenance thereof and the principal of and interest on the bonds of
the district promptly as the bond principal and interest obligations respectively
become due and payable, neither this limitation nor any other limitation in this chapter
restricts or impairs the right of the district to levy ad valorem taxes against all
property within the district taxable for its purposes in order to provide funds with
which to pay the general obligation bond principal and interest when due.
(4) Any utility district created prior to June 14, 1941, may levy taxes as in this
section provided for the same term and under the same conditions as would be applicable
to districts organized after that date.
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