Section 568.495 - Disposition of district assets; insolvency; rules(1) If a soil and water conservation district that is being dissolved has tax levying authority, the board of trustees for the district shall turn over to the county treasurer any surplus moneys remaining to the credit of the district after payment of the indebtedness of the district. If the assets of the district are insufficient to pay the indebtedness, the board of trustees shall levy taxes, within the limits of the authority of the district, for the liquidation of the indebtedness.(2) In each year that the county receives surplus moneys to the credit of a district described in subsection (1) of this section, the county assessor shall certify any moneys in the district account on June 30, except moneys not in excess of $6,000 that the county retains for administration. The certified moneys shall be disposed of in one of the following manners, as selected by the county assessor: (a) Notwithstanding ORS 310.105, the moneys may be offset against that portion of the levies of taxing units levied against the property values of property within the dissolved district. The Department of Revenue shall adopt rules further defining the method of offset. If the moneys are offset as provided under this paragraph, the moneys shall be distributed to each taxing unit in the amount of that taxing unit's offset.(b) The amount may be credited to each property appearing on the tax roll for the year for which the credit applies within the dissolved district on the basis of current assessed value. If the certified moneys are distributed under this paragraph, the moneys shall be deposited in the unsegregated tax collections account established under ORS 311.385 and distributed in the same manner as other moneys in that account. The Department of Revenue shall adopt rules further defining the method to be used to credit the amount.(3) If a district that is being dissolved does not have tax levying authority, the board of trustees shall turn over to the State Department of Agriculture any surplus moneys remaining to the credit of the district after payment of the indebtedness of the district. If the assets of the district are insufficient to pay the indebtedness, the board of trustees shall determine whether any of the indebtedness is given priority by law over other indebtedness. The board of trustees shall apply the assets of the district first to the payment of indebtedness that is given priority by law over other indebtedness. If any assets remain after the payment of indebtedness that is given priority by law, the board of trustees shall apply the assets to the payment of a uniform percentage of each remaining indebtedness.(4) The board of trustees may transfer any district assets, other than moneys, available after the payment of all district indebtedness to the State Department of Agriculture or to another soil and water conservation district.