Property tax bills are landing in metro Portland mailboxes.

Taxes generally don’t increase more than 3% per year for most Oregon homeowners, thanks to the way Oregon capped increases for nearly three decades.

In Multnomah County, which contains most of Portland, overall tax revenue growth has been significantly slower this year than in neighboring Clackamas and Washington counties.

Property taxes come from what’s called a home’s assessed value — a figure typically tied to its 1995 value plus a 3 percent annual increase — rather than its actual market value. Ballot measures approved by voters in 1996 and 1997 established this method.

Locally approved levies and bonds, or major home renovations, however, can push up homeowners’ overall bill beyond the usual 3%.

Reported tax revenue across a county can also increase well beyond 3 percent in a year, accounting for voter-approved tax measures, new construction and the authorized 3 percent increase. .

Property taxes send billions of dollars to local governments in Oregon each year. Although they are collected by the county, most of the money is redistributed to taxing districts, from schools to municipal governments to fire districts.

A Metro bond for the Oregon Zoo will maintain a fee of about 9 cents per $1,000 of assessed value, or about $23.40 per year for a property with an assessed value of $275,000.

Here’s what homeowners in Multnomah, Clackamas and Washington counties can expect:

Multnomah County

Multnomah County is expected to collect just over $2.4 billion in tax revenue, a 2.9 percent increase from the previous year. The county sends out about 300,000 notices and statements of value.

The drop below the usual 3 percent rate of increase is attributable to slowing construction and falling values ​​of downtown office buildings, Assessor Mike Vaughn said.

For example, the Montgomery Park office complex at 2701 NW Vaughn St. sold earlier this year for well below its 2023 assessed value of $72.7 million, which had generated a tax bill of more than $1.6 million. THE It sold for $33 million in August would likely trigger a new assessed value that is closer to its most recent sale price.

“That would indicate a decrease in (the assessed value),” Vaughn said.

The Portland Business Journal in September 2023 reported on a preliminary analysis from county and city officials showing that even if every downtown commercial property lost half of its true market value, the city of Portland stood to lose tax revenue equal to less than $4 million.

That insulation from wild swings highlighted in the analysis is still true, Vaughn said, but if such a downward trend continued for another four to six years, “you’d definitely see a decrease.”

“You could actually start to see properties being taxed purely on land value; that their improvements” — meaning buildings and other structures built on the land — “don’t really add much value,” he said.

Regardless, Vaughn emphasized the general stability of the property tax system, also noting that residents, not commercial buildings like offices, provide the largest share of revenue.

In Gresham, a new five-year police and fire tax will add $1.35 per $1,000 of assessed value.

Clackamas County

Clackamas County is on pace to collect nearly $1.2 billion, a 4.2% year-over-year increase. It sends some 170,000 statements.

Molalla residents in particular could notice big increases in their property taxes due to two new bonds approved by voters.

Assessor Bronson Rueda said a new police station bond for the town of Molalla and a middle school bond for the Molalla River School District would add about 85 cents and $1.54, respectively, per $1,000 of assessed value. Based on an average value of $250,000, the bonds would add $597.50 on top of other tax increases for those living in the two districts.

Bronson also said he is hosting a virtual town hall where county residents can ask questions about Oregon’s property tax system or log off to ask questions about their individual bills. It will take place on Wednesday, November 6 from 6 p.m. to 8 p.m. Details are at clackamas.us/event/2024/at-town-hall.

Washington County

Washington County said it is looking at an overall tax collection of nearly $1.6 billion, up 5.7 percent from the previous year. The county has sent out about 205,000 property tax statements.

Joe Nelson, director of the Washington County Department of Assessment and Taxation, said that although the value of office and apartment buildings has dropped insignificantly, the county has seen a lot of new construction this year.

“We’re a very active county,” Nelson said, adding, “I don’t think there are any surprises there.”

The most notable bond measure that will affect many taxpayers comes from the Tualatin Hills Park & ​​Recreation District.

Although it’s only 50 cents per $1,000 of assessed value, more than 89,000 accounts will see that reflected on their bills, Nelson said.

“It’s going to be very widespread,” he said.

How to deposit

An initial payment is due November 15, with discounts available for those who pay in full (for a 3% reduction) or two-thirds (for a 2% reduction) of their bill. Taxpayers must have at least the first third of their payments cleared by November 15, with additional thirds due on February 15 and May 15.

However, most homeowners with a mortgage can expect their lender to pay property taxes on their behalf. Counties will send their invoices in a different color when the mortgage company is recorded as having requested the invoice.

County Help

Portland area taxpayers can direct questions to:

• Multnomah County: 503-988-2225; [email protected]
• Clackamas County: 503-655-8671; [email protected]
• Washington County: 503-846-8801; [email protected]

— Jonathan Bach covers housing and real estate. Contact him by email at [email protected] or by phone at 503-221-4303.

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