Mt. Bachelor Property Management Blog

What You Need to Know About Oregon's Property Tax

Lisa Berg - Tuesday, September 14, 2021

Investing in property to rent in Central Oregon? Get important information about Oregon property tax law. Contact us about our property management services.

If you are considering purchasing investment property in the Central Oregon, you probably have some questions about property taxes. As an experienced Bend rental management company, Mt. Bachelor Property Management has fielded many questions about property taxes: Let’s go over the basics and what to expect after you purchase a property.

1. Property Assessment

Property taxes in Oregon begin with a property assessment, which is designed to assign a specific value to a property so that property taxes can be calculated. These assessments must general be carried out by county assessors. Assessors also collect real estate sales data in an area to study ratios and market value so that property values can be updated – something that happens on the 1st of January each year.

Some types of real estate property are exempt from property tax, such as crops or orchards, and some types must be assessed directly by the state government, such as large industrial sites.

2. Taxing Districts

Every year, Oregon taxing districts (these are typically individual counties) decide their budgets and work to calculate the amount of property taxes needed to meet budget requirements. Tax rates may then be adjusted – the permanent tax limit can’t be changed by the district (more on this below), but it can add addition, lower statutory limits. Districts may also ask their voters for temporary taxing authority above the permanent limit to finance specific projects – these temporary taxes can only last five to 10 years, depending on the type of project.

3. Applying Tax Rates

Property taxes are adding to the tax roll every fall in Oregon. They are added as a rate per $1,000 of assessed value for a property. For additional taxes to finance certain projects or bonds, a rate is decided and calculated based on all taxable property in the district. If there are multiple tax rates for the year – which is common, as counties are typically financing at least one project through local tax options – the rates are combined and applied to the property.

4. Taxable Value Limitation

As we mentioned property tax rates and growth have strict limitations, which are based on the MAV or maximum assessed value of the property. The MAV is calculated each year, but it cannot increase by more than 3% annually (unless the property has undergone significant changes, which is an important consideration for those interesting in upgrading property).

5. Paying Taxes

Taxes are paid directly to the taxing district/county in which the property resides. You can find additional information on the assessor offices for each county here. Note that if you are purchasing a property with the aid of a mortgage, the property taxes are often bundled with mortgage payments, so you will not be making a separate payment.

6. Finding the Current Rate

We’ve gone over how property taxes work in Oregon, but if you’re researching investment property, you’re probably interested in the specifics. If you have the assessed value of a property or at least a good idea, you can visit this calculator from Smart Asset to get an idea of what your taxes for the year would be.

If you are interested in rentals in Central Oregon or investment property in Bend, take time to consider property taxes. Our property management services in Central Oregon will also be happy to answer other questions you may have about Bend homes for rent, the costs involved, and how we can help. Real estate property management in Bend can make it easier to maintain properties, collect fees, and find the best tenants!

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