Portland Property Taxes…ouch!
It’s that time of year again where property tax bills have been delivered. Unfortunatly, lower home values and property tax bills that have gone way up! Taxes are pegged to values set in January so we won’t see property values that have enjoyed a run up in value recently. In some of the states hardest hit areas like Bend and Medford, property taxes will come in a little lower but these same home owners could be in for a big surprise when the 2013-2014 tax bill arrives! Why is this? Oregon’s tax structure separates market value from the tax assessed value. In these hard hit areas, taxes are pegged on the market value which has fallen below the assessed value, when this happens taxes are based on the lower number. The catch… the 3% cap does not apply until market value catches up to the assessed value. So for these homes, if they were to see a 5% rise in their market value, they could also see a 5% rise in their taxes next year!
For other home owners, the property values never dropped down to their assessed values, and the assessed values continue to rise each year. Statewide, Oregon tax collections are expected to rise by $83 million this year. For most home owners, expect a 3% rise this year.
For those of you that are thinking about the joys of property taxes and want to be a home owner or possibly purchase a Portland condominium, call me to set up tours of available units. Inventory levels are way down right now so if you are thinking about selling your Portland condominium or Pearl District Loft, give us a call…it is a great time to be putting your home on the market!