Thursday, June 8, 2017

Oregon Senate to Vote on Bill that Could Raise Property Taxes on New & Renovated Properties in Multnomah County

Oregon House Bill 2088 unanimously passed out of committee and now heads to the Senate floor. The bill gives cities the ability to use city-specific rather than county-specific averages to calculate tax values of new and renovated property, and applies only to counties with greater than 700,000 residents (Multnomah County). Currently, the taxable value of new homes is calculated based on "the average difference between assessed value and market value countywide." Proponents of the bill argue that this calculation causes inequity, as new construction in Multnomah County is taxed at 53% of its assessed value, while most older homes in Gresham are taxed at 75% of their values. New homes and homes that undergo a renovation valued at $10,000 in one year or $25,000 over five years would be affected. Cities would have to vote to enact the new system. Initially the Oregon State Association of County Assessors came out against the bill due to the potential costs associated with implementing a new system for assessment, but after the bill was amended to ensure counties would be reimbursed the Association took a more neutral stance. If adopted by cities in Multnomah County, the new assessment method would apply to residential, commercial, and industrial properties. Read more.