Oregon Property Taxes
Overview of Oregon Property Taxes
Property taxes are a major source of revenue for the 1,200+ local taxing districts in Oregon. Every homeowner in the Beaver State is required to pay Oregon property taxes to the local county where their property is located. Like is the case with most states, property taxes are administered by taxing districts. The state and its local governments collect $43 billion in revenue every year. Of that, $6 billion or 14.1% of total revenue collected is from property taxes. Oregon is not a high tax state and the average homeowner pays 1.03% of their home value every year in property taxes or $10.25 for every $1,000 in home value. However, the average Oregon property tax bill varies from county to county. For instance, homeowners in Baker County pay an average of $1,620 in property taxes while those in Benton County pay $3,057.
How do Oregon property taxes work? It starts with County Assessors valuing every taxable property within their jurisdiction as of January 1 of each year. Properties are appraised at their “real market value” (RMV) or the price the property would sell for in the open market. To shield homeowners from skyrocketing property values, the Oregon Constitution caps the growth rate of values of taxable properties within the state. The limit is based on your property’s maximum assessed value (MAV). This value cannot increase by more than 3% unless there are changes to the property. Once the Assessor has established your property’s RMV and MAV, Oregon property taxes are applied on the lesser of the two values. This is called the "taxable assessed value."
As long as the MAV remains below RMV, it cannot increase by more than 3% per year. This keeps Oregon property taxes relatively stable even with rising property values. A tax rate is then applied to the taxable assessed value to determine your annual Oregon property tax bill. Tax rates are based on a taxing district’s tax levy amount divided by the total assessed values of properties within their jurisdiction. The state of Oregon caps tax rates to $5 per $1,000 in market value for total school district taxes. Additionally, the total general government taxes cannot exceed $10 per $1,000 in market value. Subsequently, the effective Oregon property tax rate is capped at 1.5% or $15 per $1000 in market value.
If you are planning to buy a home in Oregon and want to understand how much your property tax bill could potentially cost, check out our Oregon Property Tax Tool to see what your bill would be.
Oregon Property Tax Due Dates
In Oregon, the fiscal year starts on July 1 and runs through June 30. For purposes of taxation, property values in Oregon are assessed every year as of January 1 and property tax statements are mailed to homeowners by October 25. You can appeal property taxes if you have reasons to believe the assessor wrongly estimated the value of your property. You first voice your objections with the County Assessor who can agree or disagree with your objections. If you and the assessor fail to agree on valuation, you can file an appeal with the county Board of Tax Appeals by December 31.
But when are property taxes due in Oregon? Oregon property taxes are due on November 15 every year. However, the state allows you to pay your property taxes in three installments due on November 15, February 15, and May 15. Homeowners can choose to pay their taxes in a single payment or make partial payments. The state offers a 3% discount for taxes paid in full by November 15 and a 2% discount if 2/3 of the amount is paid by the same date. If your Oregon property tax bill is below $40, it must be paid in full by November 15.
Taxes that remain unpaid after Oregon property tax due dates are charged interest at a rate of 1.3333% per month (16% per year) until paid. If the taxes remain unpaid for three years after May 16 of the year they were due, they become delinquent. Consequently, the property is then subjected to a “Property Tax Foreclosure” where the property is sold to the county. The state grants homeowners a two-year “redemption period” in which to clear the delinquent Oregon property taxes and accrued interest. At the end of the redemption period, the homeowner loses all rights to the property.
Oregon Property Tax Exemptions
Besides the option to appeal property taxes if wrongly assessed, the state of Oregon offers several exemptions to ease the Oregon property tax burden for eligible homeowners including senior and homestead exemptions. The exemptions do not apply to the tax rates or other special government levies. Additionally, homeowners are still subject to Oregon property tax due dates regardless of exemption eligibility.
Oregon Homestead Exemption
Oregon’s homestead exemption protects a home’s equity against creditors in the event of bankruptcy. Under this exemption, homeowners can protect up to $40,000 of their home’s value or $50,000 for married couples. This exemption is automatic and homeowners don’t have to apply. To qualify, you must be using the property as your principal residence. However, this exemption has no bearing on the accrual of Oregon property taxes. More information about this exemption can be found on the Oregon State Legislature’s website.
Oregon Senior Citizens Exemption
Oregon’s senior exemption is also known as Property Tax Deferral for Senior Citizens. Under this program, the Oregon Department of Revenue (DOR) pays the homeowner’s property taxes in full every year on November 15. A lien is then placed on the property as a security interest holder. If a homeowner is disqualified from the program, they must pay back all of the Oregon property taxes that have been paid by the DOR, accrued interest, and other costs. Eligible homeowners must be at least 62 years of age and be using the property as their principal residence. They must also own and have lived on the property for at least five years.
Other Oregon property tax exemptions include the Veteran's Property Tax Exemption. This provision exempts a portion of the assessed value of a disabled veteran’s property from Oregon property taxes. To qualify, the veteran has to have been honorably discharged, own and live in the property as their principal residence, and have a 40% disability as documented by the Department of Veterans Affairs. For 2021, the amount exempted for a disabled veteran or their surviving spouse is $23,370 of assessed value. For a veteran whose disability is service-connected, the exempted amount is $28,045 of assessed value. Both amounts increase by 3% every year.
How to Appeal Your Property Taxes in Oregon
The state of Oregon allows homeowners to appeal property taxes if they believe their property was wrongly assessed. A successful appeal can lower your Oregon property tax bill, potentially saving you hundreds of dollars in the process. The first step is contacting the County Assessor with your objections. The Assessor reviews the evidence provided and grants or denies those objections. If you disagree with the assessor, you must file a formal appeal with the County Board of Property Tax Appeals (BOPTA) between the date the tax statements are mailed and December 31. Decisions from the BOPTA can be appealed to the Magistrate Division of the Oregon Tax Court within 30 days of receiving the County Board’s decision. The Magistrate’s decision can be further appealed to the Regular Division of the Oregon Tax Court within 60 days of receiving the magistrate’s decision. If you are not satisfied with the Tax Court’s decision, you can appeal to the Oregon Supreme Court.
The process of filing an assessment appeal varies across Oregon though it generally follows the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
How to Appeal Your Property Taxes in Multnomah County
To better understand how to appeal your property taxes in Oregon, here is a breakdown of the process in Multnomah County, the most populous county in Oregon.
Obtain your assessment
If you are a homeowner in Multnomah County, your assessment can be easily obtained from your Property Tax Statement. To access your Tax Statement online, you can follow the instructions provided on the county assessor’s website.
Determine if you are over-assessed
A successful appeal challenges the assessor’s valuation of your property. To determine if your property’s valuation is in line with other similar properties sold within your locality, search for such properties using TaxProper’s search tool.
Complete forms needed to appeal
You can obtain the Board of Property Tax Appeals petition forms from your County Clerk or their website.
File property tax appeal
Property tax appeals can be filed with the Board of Property Tax Appeals clerks in the county where your property is located.
Prepare for hearing
It is the responsibility of the homeowner to present compelling evidence supporting their opinion of value before BOPTA. Evidence can include comparable sales, a quote for the cost of repair for the property, or an appraisal report from an independent appraiser.
A property tax appeal hearing before BOPTA typically lasts 10 minutes. You are required to attend the hearing or send a representative to make your statement, present your evidence, and allow for questions.
Appeal the decision
You can appeal BOPTA’s decision to the Magistrate Division of the Oregon Tax Court. Further appeal avenues include the Regular Division of the Oregon Tax Court and the Oregon Supreme Court.
Property Tax Information for Oregon Counties
The table below provides county-level information about how property taxes work in each Oregon county.
Want to learn more? Click the county links to learn more about a specific Oregon county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|Hood River County||$362,282||$2,553||$7.00|