Benton County, Oregon Property Tax Tutorial

Would you be surprised to know that only 39% of registered voters in our region voted in May? That means when your property tax bill goes up this year – and yes, it probably will because there were two school levies on the ballot and both passed – and if you didn’t not voted, you let about a third of the people in the area choose that for you.

On average, property taxes can legally only increase by 3% per year unless additional levies or obligations are passed.

Maximum appraised value over actual market value

The average homeowner pays property tax based on the maximum assessed value of their home. However, there are different ways to determine this value.

The assessed value is the value of your property according to the city and/or state. It’s the value you’re taxed on, and it can go up if you make major improvements to the property — like a $75,000 facelift — or if the house next door sells for a lot more than the city thought it would. she was worth. This is the value used by insurance companies to determine how much it would cost to replace everything on your property in the event of a disaster.

Actual market value is also called “trend value”, which means it’s the amount that real estate agents and potential buyers are willing to say your home is worth at any given time – with this number being higher in a real estate market which has few houses. and many buyers.

If you buy an older home – let’s call it “used property” – your tax bill is based on the maximum assessed value of that home. The State of Oregon assumes that the value of your property will increase by 3% each year. This means that even if the economy is stable, you will always pay more taxes; if the value of your house increases by 20%, you will still only pay 3%. Your used property carries with it the taxable value it had before you bought it, which means that the used property you paid $500,000 for could be taxed at $250,000, for example.

However, if you buy a new house – let’s call it “new property” – then your new property will be listed on the tax assessment books at the full amount you paid. The actual market value and the assessed value of the new property is almost the same amount. This means that the new property you just paid $500,000 for will be taxed at $500,000, costing you double the taxes in the first year.

Here’s another fun fact: after you buy a property, you won’t know how much the tax bill will be because the appraiser can take up to a year to determine the assessed value.

Current property tax numbers

Property tax assessments are done at the end of the calendar year, so taxes will be due relatively soon. For Benton County, the current mileage rate — the rate at which property taxes are calculated — is 1.080% per $100,000 of assessed value. This means that for a house with a taxable value of $500,000, the owner will pay $5,400 in property taxes.

The average mileage rate for Oregon is 0.940% and 1.110% for the United States.

In Oregon, the amount of property tax is tied to the property, not the property – which means that the assessed value does not reach the actual market value when sold, but rather remains at the rate before the property. purchase, unless substantial improvements are made.

Taxes are calculated on the lesser of two numbers between assessed value and actual market value, so if a home loses value due to a market downturn, a homeowner may have lower property taxes for that year. This slowdown was observed by many homeowners in 2012 and 2013 due to the housing market bubble experienced at that time.

If you want to know the assessed value of your home, contact the Benton County Assessment Department.

By Sally K Lehman

Penny D. Jackson