Frequently Asked Questions

Responding to this type of letter is perhaps the most important way a property buyer or seller can help assist in the accuracy of Marion County tax assessments. The Marion County Assessor is required by law to value all property at real market value (ORS 308.232). This is defined as what it would sell for in cash terms paid by an informed buyer to an informed seller, each acting without compulsion in an arm's length transaction (ORS 308.205). Accurate evidence from real estate transactions is vital to this process.

We do not use the information you provide to directly revalue your property. Instead, we use it to develop and refine a model for predicting sales prices of all properties of the same type (i.e., homes, manufactured and mobile homes, land as applicable) in Marion County. This helps us to value properties consistently, and in keeping with market changes. In Oregon, the sale of property does not automatically trigger reassessment as in some other states.

Several of the questions asked on these letters are to determine whether your transaction was reflective of "market" value and, therefore, useful for our studies. Other questions help us make adjustments for special circumstances. For example, selling prices sometimes include more than just the land and buildings, such as furniture or vehicles. We seek to determine what was paid only for those items that are taxable.

Thank you for assisting the Assessor in this endeavor.

ORS 308.425
If during any tax year, any real or personal property is destroyed or damaged by fire of "act of God," the owner or purchaser under a recorded instrument of sale in the case of real property, or the person assessed, person in  possession or owner in the case of personal property, may apply to the tax collector for proration of the taxes imposed on the property for the tax year.

Application for proration of taxes shall be made no later than the end of the tax year or 60 days after the date the property was destroyed or damaged, whichever is later.

For property that is damaged, the tax collector shall collect only one-twelfth of the taxes imposed on the property for the tax year, for each month or fraction of a month that preceded the month during which the property was damaged.

For the month in which property was destroyed or damaged, and for each succeeding month of the tax year, the tax collector shall collect that percentage of one-twelfth of the taxes imposed on such property that the real market value of the property after the destruction or damage bears to the real market value of the property before the destruction or damage as reflected in the last certified assessment roll.

The portion of the property that is damaged and is subsequently repaired is considered new property or new improvements to property under ORS 308.153 (New property and new improvements to property) for the assessment year in which the repairs or replacements are first taken into account.

Note: Partial value reduction formula is unconstitutional because under Article XI, section 11b, assessed value must be reduced to minimum value during tax year. Shatzer v. Dept. of Revenue, 13 OTR 436 (1996), aff'd on other grounds, 325 Or 211, 934 P2d 1119 (1997).

"Act of God" excludes all circumstances produced by human agency, including lack of due care or foresight. Clark v. Multnomah County Assessor, 17 OTR 72 (2003). ORS 308.440 states that no relief shall be given to any person who is convicted of arson with regard to the property for which relief is sought.

The process of identifying taxable property and assigning a value to it is termed "appraisal." State Registered appraisers employed by the Marion County Assessor’s Office estimate values for all residential properties in Marion County.

In Oregon, property subject to taxation includes all privately owned real property (e.g., land, buildings), and manufactured homes. There is no property tax on the following if not used in a business: furnishings, personal items, machinery, or equipment.

The value that appraisers estimate is the Real Market Value (RMV), defined as "...the amount in cash that could reasonably be expected to be paid by an informed buyer to an informed seller, each acting without compulsion in an arm's length transaction occurring as of the assessment date for the year." ORS 308.205. RMV can go up or down depending upon the market and circumstances specific to each property. Tax bills sent out each October show the estimated RMV as of the preceding January 1.

Each year the Assessor’s Office develops a residential mass appraisal model that takes into account the primary variables associated with residential values. Examples of these variables include neighborhood, views, parcel size, home size, quality of construction, and landscaping quality.

This appraisal model is tested against all actual arms length sales in Marion County. The data from this test is then submitted to the Oregon Department of Revenue (DOR). The model must prove accurate at predicting actual sale prices within narrow parameters set by the DOR.

Note that most residential properties in Marion County are not taxed based on the RMV. This is due to Oregon’s unique property tax system as defined by Measure 50. Instead, most are taxed on the Maximum Assessed Value (MAV). Under Measure 50, Assessed Value (AV), the basis for taxation, is the lower of RMV or MAV.

Construction on your “new” home probably began after January 1. Because January 1 is the assessment date, you are taxed only on property which existed as of January 1. The portion of your house which is complete after January 1 will be assessed for the next tax year and will appear on your next tax statement.

Cost and value are not always the same thing. Our conclusion of RMV is based on what the property would sell for in an open market transaction.

If work completed adds value which is below a certain threshold amount, the changes affect your market value only and not the assessed value (AV). If it is above the threshold a percentage of the market value is added to your existing AV. Additionally, any work done is tracked over a five-year period. If the tracked value rises above a certain amount, a percentage of the value is added to your AV.

The threshold for both the individual year and the five year tracked amounts changes annually based upon the change to the Consumer Price Index.

Yes, both are taxable.

Yes. All in-ground gunite, fiberglass and vinyl lined pools are taxable. Check with the proper building inspection office to determine proper permits required, if any. All outdoor pools receive a 50% seasonal use discount. Above ground pools are not taxable, but extensive wood decking or concrete may be.

No. You must contact an independent fee appraiser for your loan appraisal.

No you do not. However, without a physical appraisal, we will use the best information available to us and the resulting RMV may not be a true reflection of your property.

There are a variety of reasons for the differences in taxes and they vary from property to property. There may be exemptions or special assessments involved. Value differences may also result due to quality of construction, location, building size, number of outbuildings, zoning, prior appeals, etc…

Yes. Appraiser field inspections are usually made between January 1 and June 30. Reviews may be requested during this time but values will reflect the condition of the property as of the January 1 assessment date.

ORS 308.204 allows the Assessor to make changes to reduce values in the fall after values have been certified. Receipt of the fall tax statement is typically why a property owner requests a value review. Before an action can be taken, a request for review form needs to be filed with the Assessor explaining the reason for the request for review. Review criteria and the request for review form can be obtained by visiting the forms and resources section of the Assessor's website. If the property owner is not satisfied with the Assessor’s recommendation, an appeal may be filed with the Board of Property Tax Appeals (BoPTA) by December 31.

First, our assessments are based upon a “mass” appraisal system; one sale does not set the market. Second, conditions of the sale and whether it was an arms length transaction are also factors to be considered.

Yes. You must file an application with the Assessor and provide documentation of the error.

Property is valued as of the assessment date of January 1, of each year. Your tax statement sent to you in mid October shows a value that was set 10 months earlier. In a declining market this value may appear high compared with recent market activity and economic news.

There are two values stated on your tax statement. One is the real market value; the other is the assessed value. The real market value is what the Assessor believed your property would sell for if it sold on the open market on January 1. The assessed value is used to compute your taxes. The assessed value is the lower of the real market value or the maximum assessed value. The maximum assessed value was established by Measure 50, passed by voters in 1997. Maximum assessed value for the 1997-98 tax year (the first year the measure was implemented), was the 1995 -96 value less 10 percent. The maximum assessed value will grow by three percent each year provided it is lower than the real market value. There are no limitations on the rate that the real market value changes. It will rise and fall with the market.

If your property did not exist in 1997, the maximum assessed value was established by the use of a change property ratio. The purpose of this ratio is to bring the maximum assessed value of new or changed property to the same general assessment level as unchanged property. Prior to the recent economic downturn, and since the implementation of Measure 50, real market values have generally appreciated greater than the maximum assessed value. By and large, this has resulted in a gap between the maximum assessed value and real market value.

For example, in Marion County the January 1, 2011, approximate assessed value for all residential property was 84% of real market value. This gap in the values allows the assessed value to annually increase, even when the real market value decreases. This can result in an increase in taxes, even in times of declining markets. If the market drops to a point that the real market value of a property is less than its maximum assessed value, there may be a reduction in taxes.

Another factor to consider in the overall tax you pay is the tax rate. Generally speaking, the tax rate is applied to the assessed value to determine a property’s tax. The location of your property will determine what district rates make up your overall tax rate. The tax rates may go up or down from year to year depending on voter approved bonds and/or levies. It is conceivable that your taxes may increase even though your assessed value remains unchanged; or that the taxes may go up more than 3% when the assessed value increased 3%.