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About The Blue Mountain eagle. (John Day, Or.) 1972-current | View Entire Issue (Feb. 22, 2017)
News Blue Mountain Eagle REVENUE Continued from Page A1 the Oregon Department of Revenue, and put limits on how much a property’s as- sessed value could increase from year to year. The state’s cities advo- cate a “transition” back to real market value-based calculations and for permit- ting local voters to approve rates exceeding the limits established by Measure 5. Without a reduction in tax rates, the proposal would lead to higher prop- erty taxes. According to the League of Oregon Cities, there is a state average of a 25 percent difference be- tween the real market value of property and its assessed value. The Legislature is also looking at a homestead exemption, which could cushion homeowners from sudden tax leaps on their primary residences. Cities contend Measures 5 and 50 have meant that owners of similarly priced properties can pay signifi- cantly disparate amounts in taxes, and that cities have to compete with other local jurisdictions, such as coun- ties and fire protection dis- tricts, for key funding. Even if residents of a city support measures to pay for local libraries or to build a new police station, for example, the total tax rate per $1,000 of assessed valuation can’t exceed the state limits. The proposal could also lead to greater increases in assessments. Assessed valuations — due to the requirements of Measure 50 — typically grow at a slower rate than real mar- ket value. On the other hand, when the real estate market dips, so do real market values. A senate resolution, Senate Joint Resolution 3, proposes repealing Mea- sure 50 and replacing it with a real market val- ue-based system. “We would support that in theory,” said Wendy Johnson, an intergovern- mental relations associate for the League of Oregon Cities, noting that the de- tails have not been ironed out. That resolution is the first placeholder bill in what cities expect to be a broader property tax reform package, Johnson said. OREGON CAPITAL INSIDER Get the inside scoop on state government and politics! Wednesday, February 22, 2017 Grant County Assessor David Thunell shows one of the files he keeps on every property in the county, listing real market and assessed values. The Eagle Sean Hart year, unless voters approved higher increases. TAX Continued from Page A1 A property worth $50,000 would pay half the tax of a property worth $100,000. The tax rates charged by each district could vary from year to year. If the bud- get committee determined $100,000 was needed and the property values in the district totaled $1,000,000, the rate would be 10 per- cent. If $150,000 was need- ed for the same property values, the rate would be 15 percent. Most levies, however, were limited to a maximum growth rate of 6 percent per Measure 5 — $15 limit In 1990, Oregon voters approved Measure 5, a con- stitutional amendment limit- ing property taxes to a total of $15 per $1,000 of real market value — up to $10 for general government and $5 for education. Taxes were still based on the levy system, unless the resulting tax rate exceeded these limits. If either educa- tion or general government taxes exceeded its limit, property owners would pay only that maximum rate, rather than a proportion of the levy. Measure 50 — assessed value Measure 50, approved by voters in 1997, ended the levy system, established per- manent tax rates for all the districts and separated as- sessed value from real mar- ket value. Assessed values for each property in 1997-98 were set at 90 percent of the 1995-96 real market value. Assessed values were limited to a 3-percent increase each year. Although taxes were based on the reduced assessed value, the Measure 5 limits remained tied to real market value. Instead of levies with vari- able tax rates, a permanent tax rate was calculated for each district using a complex for- mula based on what the dis- tricts would have raised under the old system, while incorpo- rating a tax cut, and dividing the total by the new assessed values. These permanent rates multiplied by the assessed values of properties are still used to compute property tax- es today. Special assessments and exemptions Certain properties are as- sessed differently, such as those designated for farm or forest use, and exemptions also re- duce tax amounts for certain people or properties. In 1999, the Oregon Leg- islature established the forest- land program as a special tax assessment, and changes were made to calculations for farm use special assessments. Al- though taxes are still based on the assessed value and the real market value is still the estimat- ed selling price, for these spe- cial assessments the Measure 5 limits are based on the reduced special assessment, known as the Measure 5 value, instead of the real market value. After the amount of tax due for a property is calculated, ex- emptions — such as those for veterans — reduce the amount due for those who qualify. R obbins Farm Equipment 05326 A12 3850 10th St. Baker City 10218 Wallowa Lake Hwy. La Grande 1160 S Egan Burns 86812 Christmas Valley Hwy. Christmas Valley 541-523-6377 541-963-6577 541-573-6377 541-523-6377
