Marion County tax statements were mailed this week and should arrive in property owner mailboxes within a few days. Tom Rohlfing, Marion County Assessor, certified the 2016-2017 Tax Roll on October 5, 2016.
As of the January 1, 2017, valuation date, the aggregate Real Market Value of all property countywide increased by 8.2% from last year, to $42.2 billion. This is almost twice the 4.25% average rate of increase since 2000. This rapid increase in market value stems from such factors as the healthy economy, high employment rates, national interest in moving to the region, and low interest rates on mortgages.
Escalating values of residences and residential land located in cities and towns largely fueled the increase, jumping by $2.1 billion or 13.1%. An increase of 12.2% in the total Real Market Value of existing, unchanged residences and land is largely responsible, with new construction and remodeling activity also as factors.
The total value of rural property, including acreage homes, farms, and forest lands, showed more modest growth, increasing by 6.8%. Although a more modest increase than for urban properties, this is still very strong growth in historical terms.
Due to Measure 50 benefits, most homeowners will experience much smaller tax increases than the preceding figures suggest. The typical unchanged home will experience only a 3% increase in assessed value no matter where located in the county. However, changes in tax rates due to new or expiring bonds will significantly affect owners in selected communities. The largest is a 14.4% tax increase for the average Jefferson homeowner due to a $14.35 million school bond.
Salem homeowners will incur an increased rate on an existing Salem-Keizer School District bond, plus the tab on the new $61.8 million public safety bond approved in May, for a 5% overall increase. Most Keizer homeowners will pay 4.2% more due to the same school bond. Donald homeowners will find a 4% increase on their bills, due to higher rates on a City of Donald bond. Homeowners in both Silverton and Aurora will see a typical increase of approximately 1.8%.
Commercial and industrial properties show a modest 2.8% growth in total value as compared to urban homes or rural property. Trends vary by property type. New industrial facilities, including fertilizer production and cold storage facilities, added significant market value. Warehouses and prime retail and office properties experienced value increases on an individual basis as cannabis production and economic growth increased demand for this type of facility. Also contributing is a multi-year lack of new warehouse construction, although this is expected to change over the next couple of years.
Apartment construction added significant new value; however, existing apartments slowed their increase after several years of investment popularity. Non-prime commercial properties continue to show weakness, especially in smaller cities and towns.
Assessed Value countywide grew by 3.63% to $24.2 billion, standing at just 57% of total Real Market Value. A big factor in the gap between market and assessed values is the Measure 50 limit of 3% annual growth in the Maximum Assessed Value of unchanged property. However, over 13,400 properties receive sharply reduced assessed values and taxes due to farm or forest special assessment and more than 14,800 properties receive full or partial tax exemptions.
The value of Marion County property exempt from taxation increased by $180 million to just below $6.7 billion. Much of the new industrial construction qualified for exemption under Enterprise Zone provisions intended to promote job growth. Furthermore, exemptions continue to expand due to new legislation and tax court interpretations of existing statutes. For example, the offices of independent associations representing the interests of governmental entities were recently ruled by the Tax Court judge as eligible for the same exemption as most government owned property.
Primary beneficiaries of Marion County property taxes are public schools, Chemeketa Community College, and educational service districts receiving 43.7% of the total. Other major recipients include cities (23.8%), Marion County government (18.2%), and fire districts (6.8%). Urban renewal districts receive about 3.1%. These percentages are similar to last year.
Marion County Assessor Tom Rohlfing encourages property owners to promptly review their tax statement for accuracy. This includes checking for correct ownership, mailing, and location addresses. To aid with this, the Assessor's Office provides a wide array of information on its website, including information about how each property is assessed. A new map search tool also helps to locate properties.
Taxes are due by November 15, 2017, to receive the 3% discount and avoid interest charges. Owners with questions, or who feel changes are needed, may contact the Assessor's Office at (503) 588-5144. Those who disagree with the Real Market Value placed on their property are encouraged to request a review prior to filing an appeal. If the property owner still does not agree with the value once the review is completed, instructions on the back of the tax statement describe how to appeal to the local Board of Property Tax Appeals, made up of volunteers with training, experience, and knowledge of property valuation.
For more information visit the Marion County Assessor website at www.co.marion.or.us or contact the office at (503) 588-5144 or email assessor@co.marion.or.us.
