Buying a new home requires a lot of paperwork and cash – this is why aspiring homeowners need to learn everything about the necessary expenses. Counties and cities have different tax rates you’ll have to consider. One of the most vital streams of income for Oregon is its real estate tax. Property taxes rely on county assessment and various taxation offices to calculate and collect taxes from property owners. The county charges Salem, Oregon’s properties with taxes based on its assessed value which is lower than its real market value. Assigned assessors per county determine and calculate the property’s maximum assessed value based upon its real market value.
The county’s Assessor’s Office is the government entity delegated with the task of evaluating properties within their specific area. The properties included in the assessment are commercial, industrial, residential, farm, forest, manufactures structures, and personal business properties. Marion County‘s Assessor’s Office maintains records on an estimate of 132,000 property tax accounts with a market value of about $50 billion and an assessed value of just around $26.5 billion. In addition to assessing properties, the Assessor’s Office is also responsible for managing programs for exemptions and deferrals, special assessments and enterprise zone exemptions, maps and information on property locations, descriptions, and ownership of properties.
Based on the law imposed by Oregon, the county assessor must value all properties at 100 percent of its real market value (RMV). In estimating an initial RMV for a homeowner’s property, the county assessor appraises the property using a physical inspection of the building and land, and a comparison of sales from other similar properties in the area. Additional studies on sale trends of similar are done by your assessor to update the RMV for your property. Other properties, however, may require a unique valuation process like farmlands and forest properties.
The maximum assessed value, on the other hand, is the limit established for the taxable value of properties. Oregon’s law dictates that the MAV can only increase for two reasons: (1) a three percent annual increase, or (2) specific property events called exceptions. However, exceptions are applied if (1) the RMV is less than the MAV for two years, and (2) certain property upgrades can trigger an increase of no more than three percent.
To identify the taxable property, Oregon county assessors assign offices to appraise properties. County assessors collect sales data for their ratio studies from which they determine the values of properties throughout the year. Properties that are subject to taxation includes all privately owned real estate properties and personal property used in businesses. The city of Oregon does not implement taxes on household furnishings, personal belongings and automobiles, crops for orchards, business inventories, and other intangible properties.
Oregon Tax Rates
The average property tax rate in Oregon charges an average of $16.7 per $1,000 of assessed value. In most cases of property tax, the rates of taxes are permanently established and certified by the districts. The constitution limits the amount of property taxes that counties collect from each property. Calculating these limits include dividing taxes into education and general government categories.
Median Home Value $205,600
Median Annual Property Tax Payment $2,488
Average Effective Property Tax Rate 1.21%
Median Home Value $331,700
Median Annual Property Tax Payment $3,635
Average Effective Property Tax Rate 1.10%
Median Home Value $232,800
Median Annual Property Tax Payment $2,450
Average Effective Property Tax Rate 1.05%
Property Tax Payment
As a proprietor of any real or personal property, your tax statement is mailed directly to you. Residents of Oregon receive their tax statements for their properties between October 15 and October 25. In instances where you pay your taxes through a designated agent or mortgage company, the third party agencies send the tax statement information. Your current mailing address should be shown for your tax statement.
For properties that may be in between or on boundaries, property owners may receive two or more tax statements. Sometimes the city limits cross some properties when this happens; one tax statement covers the part of your property within the city while the other half covers city outskirts. While some counties combine both portions in one statement, other counties may send you a separate tax statement. If you own both real and personal properties, the city assessors may send you a tax statement for each. For mobile homes, counties send two tax statements. One reflects taxes for the mobile home while the other half is for the land and permanent fixtures or improvements on the property.
The state of Oregon offers a selection of payment schemes for its residents. Depending on the financial capacity of the homeowners, payment for property taxes can pay through installments from full payment, ⅔ payment, and ⅓ payment. For full payment and ⅔ payment, taxpayers are granted 3% and 2% discounts, respectively. Payment for installments begins on November 15 and ends on May 15, the next year, at the latest. There is an additional service fee charge for payments done through credit cards (2.80%), debit cards (1.19%), and electronic check ($0.60) under the service provider Official Payments.
Oregon now also accepts different payment methods from its Salem residents, from online, mail, telephone, and in person. Marion County encourages its property owners to pay for their taxes through the mail by sending in a check and the lower portion of their tax statements using an enclosed envelope. Cash sent through the mail is not allowed. Property owners should attach their account numbers on the front of the check to ensure that the payment is credited correctly. Mailed payments go through processing under the US Bank Payment Processing Center for Marion County. Property owners should be mindful of the deadline and must submit their payments on or before the announced due date. Payments credited after the due date loses eligibility for discounts and charges interest on top of that. For online payments, the Official Payments Corporate is a third-party service provider who receives Credit or Debit card, or e-check for property tax payments.