MEASURE 50: OREGON'S PROPERTY TAX SYSTEM

Voters approved Ballot Measure 50 in May 1997, which decreased many tax bills and made future taxes more predictable for individuals. It also preserved the key provisions of Measure 47, the initiative passed by voters in November 1996. The legislation to implement Measure 50 became law on July 14, 1997, known as Senate Bill 1215.

The rate limits created by Measure 50 replace Oregon's traditional levy system, which used the real market value (RMV) to assess individual properties. Under Measure 50, the assessed value (AV) of your home may be less than its real market value and taxes will be limited by the 3% value growth cap. How Measure 50 affects your tax bill each year is determined by whether you've made major changes to your property since 1995.

How Does It Work?

• Limits future taxable value increases.Your property value will not increase by more than 3% annually unless you have a specific exception.
• Establishes permanent tax rate limits. Measure 50 established permanent tax rate limits for Oregon's local taxing districts.
• Allows local option levies.Voters can approve new short-term local option levies outside their permanent rate limit.
• Retains Measure 5 limits. The 1990 tax limitation (Measure 5) remains intact. Tax rates cannot exceed $15 per $1,000 of real market value for operating revenues. Voter approved bonds are outside the tax rate limit of $15 per $1,000 valuation.

Ballot Measure 50 cut each tax district's 1997 levy. The cuts did not affect levies for bonded debt. Once levies were cut, each tax district was given a rate that replaced its old levies. This rate is a permanent limit on the districts taxing authority for operating taxes.

The "Cap:" Maximum Assessed Value
The first year under Measure 50, the assessed value on your property was reduced to its 1995 value less 10%. "Exceptions" were made if a property had a change such as a new addition. In future years, your assessed value will not increase by more than 3% unless your property has an exception or through local option elections. This system will provide more predictability for individual taxpayers.

Local Elections and the Double Majority
Your property taxes can still be increased through local option elections. Approval requires that a majority of voters participate and a majority of those vote “yes.” This double majority requirement does not apply during general elections in November of even numbered years. Bond elections for things such as new schools, fire truck, or land purchase also fall under this requirement. Schools cannot utilize local option elections for operating costs.

Exceptions
Only certain "exceptions" can cause your assessed value to increase more than 3% annually. Those include new improvements, subdivisions, rezoning, disqualification from special assessments and exemptions, and omitted property. Minor construction and ongoing maintenance and repair are not added to a property's assessed value.

Assessing New or Changed Property
New property, including new construction and new lots, will be appraised at the same level as existing property. Assessed value will be established by multiplying real market value times a percentage calculated each year.