Thinking of appealing your property taxes?

Many people are wondering if they should appeal their property taxes due to the decline in the National Real Estate Markets.  In order to decide whether you will be successful in saving some money annually you need to know how taxes are figured.  Here is a brief summary. 

The Key point is that your taxes are calculated on either the market value or the assessed value which ever is less.  When all these measures were voted on and passed North Portland and inner Northeast Portland was viewed as a less desireable place to live, hence the assessed values were low at that time.  Many people target these area’s now to take advantage of the low property taxes. 

Taxable Value Limitations

Over the years, Oregonians have approved three measures that affect property taxes.  Measure 50 has had the most impact on the ways property taxes are collected in the state. 

• 1990 - Measure 5:  This measure limited tax rates to $15 per $1,000 of market value. Still in effect when assessed, or taxable, values are close to market values.

• 1996 - Measure 47:  A key provision took assessed values for each property back to 1995, cut that figure by ten percent, then allowed taxable values to rise by three percent a year going forward.

• 1997 - Measure 50:  Maximum Assessed Value is allowed to increase each year by no more than three (3) percent. There are exceptions to this limit, however. The addition of a new structure, major improvement of an existing structure, and subdivision or partition of the property are examples of exceptions that would increase MAV by more than 3 percent.
   
  Each year the MAV and RMV for each property are figured. The property is then taxed on the lesser value, which is called the Taxable Assessed Value (TAV).

Summary

Property is assessed at the Real Market Value.

• The Real Market Value is compared to the property’s Maximum Assessed Value. The Maximum Assessed Value is allowed to increase each year by no more than three (3) percent.

• Each year the MAV and RMV are figured. The property is then taxed on the lesser value, which is called the Taxable Assessed Value (TAV).

Visit Portland Maps to view a property’s tax.  Just insert a Portland address and the first page will give both the Market Value and the Assessed Value of the property.  Clicking on “Assessor” will provide the details of the property tax.Property taxes are calculated on the market value or the assessed value, which ever is less.