Courtesy of KGW.com
06:23 PM PDT on Tuesday, October 20, 2009
By KGW.com Staff
PORTLAND, Ore. -- Homeowners who've seen their property values drop during the past year may be surprised to open their mailboxes this month and find that their property taxes have increased.
In Clackamas County, real property values declined 9.3 percent from a year ago. However, property tax bills mailed this week will increase an average of 8.7 percent.
In Washington County, real market values dropped by an average of 8.7 percent, while the average property bill will increase about 7 percent.
In Multnomah County, property tax bills were expected to go up by 6 percent, despite a drop in real market value.
Rising bills, declining values
There are two reasons for this seeming contradiction - and no elected officials to blame or punish.
Twelve years ago, voters approved Measure 50, which separated the real market value of a property from the actual property taxes, capping the annual rate of tax increases. The tax-limit measure has worked to homeowners' benefit since 1997.
Assessed values have been used ever since to calculate property taxes instead of real market value. However, real market value is the amount paid to buy or sell a home.
Property tax bills only decrease if real market value ever drops below assessed value.
Measure 50 also rolled assessed values back two years when it passed, and instituted a cap on annual property tax increases of 3 percent. Any voter-approved tax measures or bonds that may make the ballot in any given year are on top of that cap, and that is the second reason for higher taxes: local tax measures.
Local measures drive up taxes
Depending on tax district, voters in local areas can approve additional taxes above the 3 percent limits of Measure 50. For example, majorities enacted bond measures funding Oregon Zoo renovations, Portland Community College, and inside Portland proper, the Children's Investment Fund, last November.
Understanding your tax bill
Clackamas County has compiled a city-by-city summary of average property tax increases They range from just a 4 percent increase in Damascus to 28 percent for residents who voted for a major construction bond measure for the Oregon Trail School District. Go here to the Clackamas County Assessment and Taxation home page. Here is a typical Clackamas County property tax statement.
A more thorough and technical explanation of the tax formula was available at the website for The Multnomah County assessor's office.
The Oregon Department of Revenue explains how property taxes work in Oregon. Here are links to every county assessor's office in Oregon.
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