In Oregon, every, every property owner pays property tax based on 1995 value minus 10% with 3% annual increase. This is the paradise for property tax. Given enough time and high appreciation, property tax will be essentially repealed over many years.
When can we have everyone’s tax bill indexed to 1978 value? Prop 13 missed out the new buyers.
In 1997 measure 50 was passed. This is Oregon’s current property tax law and it completely changed the way taxes are calculated.
Measure 50 calculates property taxes by taking the 1995 value of your home, subtracting 10 percent, and then adding 3 percent per year until the present. The number created is called the home’s Maximum Assessed Value (MAV).
1995 value of home – 10% + 3$/year = MAV
If you have a new home with no ‘95 value, your home’s MAV is calculated using other similar properties in the same county. The 3 percent increase per year still applies.
The basic premise of the law is that your property’s value will rise faster than its MAV, thus generating lower taxes.
If you buy a new house today for 600k and a comparable home nearby is taxed at 150k, your tax base would be 150k as well.
Oregon people love low tax. I think we misjudged Oregonians
Here is the history how Oregon people reduced their property tax through 3 ballot measures. Oregon people are actually conservatives in terms of tax.
This is the best counter example to show those Prop 13 haters. Home appreciation has nothing to do with Prop 13. Property tax can be zero.
Timeline for property taxes from 1990 to now:
Until 1990, property taxes in Oregon were calculated as they are in most of the country, via a percentage of the market value of your home. Oregonians thought this was too high.
In 1990, Measure 5 was passed in an attempt to lower taxes.
Measure 5 capped property taxes at 1.5% of the property’s market value. As property values began to climb, this cap still wasn’t enough. Taxes became too high once again.
In 1997 measure 50 was passed. This is Oregon’s current property tax law and it completely changed the way taxes are calculated.
Measure 50 calculates property taxes by taking the 1995 value of your home, subtracting 10 percent, and then adding 3 percent per year until the present. The number created is called the home’s Maximum Assessed Value (MAV).
1995 value of home – 10% + 3$/year = MAV
Portland and Seattle appreciation is similar. Over the long term, California home price appreciation is only slightly faster. We have dramatic ups and downs.
I like Portland but worried about rains which could cause too much damage to the house.
Zero property tax, reasonable sales tax and reasonable income tax is what I would propose. Oregon really understands me.
Hong Kong, Singapore, China all have zero or very low property tax.
I don’t understand why some property owners are in deep love with property tax. What a brain wash job. It reminds me of some kind of syndrome , falling in love with your kidnappers
, falling in love with your kidnappers