How the Tax Year Works
Oregon’s tax year runs from July 1st – June 30th with the bill due in November. »
- From July 1st – October 31st seller pays buyer for taxes prorated from July 1st – the closing date, then buyer pays the tax bill when due.
- From November 1st – June 30th buyer reimburses seller for taxes from the closing date – June 30th.
If you are paying the taxes on your own you have the following choices:
- Pay in full and receive a 3% discount.
- Pay in 3 rds: 1/3 November, 1/3 in February, and 1/3 in May.
If your lender is paying the bill, they will pay in full and you get the 3% discount.
The county publishes a green bill if they think you are in charge of paying it, and yellow if they know your lender is in charge.
The county assesses the “value” of the home in January for the November bill.
They publish two values: the assessed value and the real market value.
The assessed value is protected by measure 50 – see below “new construction.”
The real market value is their independent estimate. This number is important because you cannot pay more than 2% of your RMV to the bond measures.
Bond measures significantly impact your property taxes; you can affect these by voting.
Once the bill is published, you have 90 days to dispute it.
When a home sells, it does not change the taxes (like it does in Ca.) because of Measure 50.
- Prorates are based off last year’s taxes ~ ask escrow
- Lenders will assume taxes will be 120% of the purchase price. This calculation is used for the collection of impounds and for qualifying.
- However…what will the taxes really be?
In 1997 Oregonians passed measure 50 because taxes were going up too fast. The measure brought the “assessed valued” back to what it was in 1995 minus 10%. Then it capped how much the county can raise the assessed value each year after that. New construction was grandfathered in by way of using a “change property ratio” (CPR) which reduces the assessed value of a newly constructed home i.e., they are only taxed on a fraction of their actual value. Each county has their own CPR and it changes annually.
Here are the 2015/2016 rates:
- Washington County: 73%
- Clackamas County: 78.1%
- Multnomah County: 59.41%
Content courtesy of Director’s Mortgage.
Dawn Carter | Sr. Mortgage Specialist
503-636-6000 | www.directorsmortgage.net
Image courtesy of everydayplus at FreeDigitalPhotos.net