Oregon Property Taxes

When you purchase a home in Central Oregon, your REALTOR may pull a DIAL Report to determine the assessed value, real market value, ownership and sales history of the property.

According to the Deschutes County Government, Oregon, the process of identifying taxable property and assigning a value to it is termed appraisal. County assessors appraise most property in Oregon.

The amount of property tax you pay is based on two things:

1. The assessed value of your property; and
2. The tax rates and bond debt service amount your taxing districts levy.
3. The Millage rate for property taxes in Central Oregon is approximately 1.3.

Assessed Value of Your Property

In 1997, Oregon voters passed Oregon Ballot Measure 50 which limits increases in assessed value to a maximum of 3% per year. When economic times were good, this applied.

Property taxes may increase by more than 3% due to voter-approved ballot measures. A “double majority” of the voters is required to approve a permanent rate limit. This means that a ballot measure proposing a permanent rate limit must receive a majority of affirmative votes at an election in which at least 50 percent of the registered voters cast ballots.

In addition, taxes may also increase or decrease due to other changes, such as the amount a district needs to pay for voter-approved bond debt, or property annexations.

Appealing the Assessed Value of Your Property

If you feel the assessor has incorrectly estimated the value of your property, you have the right to appeal. Your appeal must be based on the property’s value, not on the amount of taxes shown on the tax statement. To receive a reduction in your value, you must convince your county board of property tax appeals that the value of your property is too high. Support your belief with information such as appraisal reports or comparable sales data.

Real Market Value

Real market value (RMV) is typically the price your property would sell for in a transaction between a willing buyer and a willing seller on January 1, the assessment date for the tax year. To estimate the initial RMV for your property, your county assessor appraises your property using a physical inspection and a comparison of market data from similar properties. For ensuing tax years, your county assessor may study trends of similar properties to update the RMV for your property. Some property, such as farm or forest property, may be subject to special valuation processes.