Property taxes for the state of Oregon.
The amount of property taxes you pay in The Beaver State is based on the assessed value of your property and the amount of taxes imposed by various taxing districts. The Oregon Constitution, however, sets limits on these factors such as the maximum assessed value (MAV), which caps an increase in property assessment at no more than 3% per year. There are exceptions, though, such as:
- change in property value due to new improvements
- property is partitioned or subdivided
- property is rezoned and used consistently with rezoning
- property is taken into account as remitted property
- property becomes disqualified for exemption (partial or special)
Each year, the MAV and the real market value (RMV) are calculated by a county assessor, and the property is then taxed on the lesser value, which is called the assessed value.
Real market value is another term for fair market value, or the price your property would sell on the market to a willing buyer. Oregon assesses property at 100% its real market value. The way your property is appraised is through physical inspection by the appraiser and comparison to similar properties on the market.
A property’s MAV is essentially its taxable portion. The first MAV for each property was set in the 1997-98 tax year, so for that year the MAV was the property’s 1995-96 real market value minus 10%. A $100,000 house in 1995-96, for example, would have a 1997-98 MAV of $90,000.
At least one-third of your property tax payment is due by November 15, with additional payments due by February 15 and May 15. If you pay the full amount by November 15, you will receive a 3% discount, and if you pay two-thirds of the full amount by November 15, you will receive a 2% discount. Any late payments will be charged with an interest rate of 1.33% per month, or 16% annually. (Installment payments are unallowable on tax bills that equal $40.) More information on property taxes can be found on Oregon’s Department of Revenue website, through this link and this link.
Through the Disabled Citizen Property Tax Deferral Program and the Senior Citizen Property Tax Deferral Program, qualifying homeowners 62 years and over have the option to delay (rather, defer) the payment of property taxes. The state then pays these taxes to the county and charges a 6% interest rate, which is also deferred. These taxes can be paid when the taxpayer dies, sells the property, discontinues residence in the property, or new ownership is instated.
To qualify, the individual must live on the property and maintain a household income of $36,500 or less. Individuals can remain in these programs as long as this income level is not exceeded. Also, disabled taxpayers who meet these requirements can qualify as well, but only if they receive (or are eligible to receive) Social Security Disability benefits.
Oregon Department of Revenue
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