(MT) – Property tax statements are in the mail, and if Mountain residents are
feeling the pinch, there’s good reason.

Welches – and surrounding communities of rural Sandy, Boring and
Government Camp – residents were hit with a 28 percent hike, the largest in
the taxing district.

Property taxes increased throughout the county largely due to new permanent
rates extending nearly county-wide. The voter approved levies of the County
Library District, which has a permanent rate of 39.74 cents per thousand, the
County Extension and 4-H District with a permanent rate of 5 cents per
thousand, and the Oregon Trial School District bond levy of $2.28 per
thousand were major contributors to the increase.

In comparison, the city of Sandy (23 percent) was the only area hit nearly as
hard.

Metro Portland and rural Canby followed at a relatively meager 9 percent.

This property tax statement is the thirteenth statement issued under Measure
50 – the constitutional property tax limitation passed by voters that has
shaped Oregon’s property tax system since May 1997.

The 2009-2010 property tax total to be collected for all districts in the county
is $601,008,884, an average increase of 8.7 percent over last year’s total of
$552,657,758.

Taxes generated from new construction, new money measures approved by
voters, and the required increase of 3 percent in taxable assessed value on
most existing properties were the primary reasons for the $48.3 million
increase.

More than half the increase ($27.4 million) was the result of new voter
approved money measures passed in the November 2008 election.

Most property owners saw their taxes spike beyond what is expected from the
typical 3 percent growth in assessed value required on most property under
Oregon’s tax system. The increases are larger because voters approved eight
new money measures including two new permanent rates, one new local
option levy and five new bonded debt levies that will be seen in their
respective areas.

Measure 50 changed Oregon’s property tax system in several ways. It lowered
1997 assessed values to 1995 levels minus 10 percent; limited assessed value
growth to 3 percent a year; and set permanent tax rates for each taxing
district. The tax system also allows voters to approve additional money
measures that may increase their taxes in excess of the 3 percent.

For Jan. 1, 2009, the total real market value of property in Clackamas County
is $54.5 billion. This is a 9.3 percent decline from $60 billion in 2008. The
assessed value for tax purposes grew from $34.5 billion to $36 billion – an
increase of 4.5 percent. A significant gap between real market value and
assessed value still remains. Property taxes are calculated on the assessed
value.
The average single family home has a market value of $339,000 with a
taxable value of $218,000. The assessed value of an average home in
Clackamas County is equal to 65 percent of its real market value. The
assessor’s values represent the property value as of the assessment date –
Jan. 1, 2009 – and reflects the change from Jan. 1, 2008 to Jan. 1, 2009.

The question arises of why did the assessed value and property tax go up
while the real market value went down? Since Measure 50 passed in 1997,
market values have grown much faster than the 3 percent increase in
assessed value required by law. As long as the market value is greater than
assessed value, the 3 percent annual increase in assessed value will continue
and taxes will typically increase about 3 percent unless the property
has new construction, other Measure 50
exception value or new money measures are passed by the voters.

Property taxes in Clackamas County support 126 local government taxing
districts, including 17 cities and 18 school districts. Other taxing districts
providing services include fire districts, public safety, water districts, the Port
of Portland and Portland Metro.

Full payment of taxes is due Nov. 16, 2009, to receive the 3 percent discount.
A 2 percent discount is given if two-thirds payment is received by Nov. 16. No
discount is allowed on a one-third payment and additional one-third payments
are due Feb. 16 and May 17, 2010.

Taxpayers can file value appeals with the Board of Property Tax Appeals
through Dec. 31, 2009. BOPTA’s phone number is 503-655-8662.