Portland property tax to increase slightly
Homeowners in the greater Portland area might have a nasty surprise the next time they open their mailbox if they haven’t followed the news. Property tax letters with newly increased tax rates are already on the way for residents. Most homeowners should expect to pay a small increase the next time they file taxes.
However, Portland resident homeowners won’t be too surprised. Anyone who has owned a property in the Portland Metro (which covers multiple counties) for more than a few years knows that property taxes go up by at least 3% every year. This 3% tax increase reflects an equal increase in home values each year, as required by Measure 50. This mandate has been in effect since 1997, however, it is not the maximum increase that residents have. can see every year. Other factors may come into play.
Why Portland’s property taxes are higher in 2021
In 2021, voters approved new tax levies and bonds that will pay for the modernization of infrastructure and public services. For example, a library and bonds for parks and public schools in Portland will benefit the Multnomah County community for years to come. Likewise, residents of Clackamas County have approved bonds to create new schools in Canby and West Linn-Wilsonville school districts. The tax hikes in Washington County will pay for libraries and public safety services.
What does the tax increase look like?
While property tax rates will only increase a few percentage points, the total amount of taxes collected from taxpayers by each county serving the Portland area is not to be sneezed at. Washington County will see its tax revenue increase by 4%, from $ 1.258 billion to $ 1.309 billion. In Clackamas County, a 3.7% tax hike pushes revenue up to $ 998.6 million from $ 962.2 million last year. Multnomah County will see the biggest increase, with tax revenue rising 8% from $ 2.047 billion to $ 2.218 billion.
Is there a way to save money on my taxes?
Portland homeowners can offset some of their property tax costs by paying their bills in full by November 15, which will earn them a 3% discount. The payment of 2/3 of the tax bill gives residents a 2% discount. For taxpayers who cannot afford a lump sum payment, the approved payment plan offers another option. Invoices can be paid by third parties over six months. The first payment is always due on November 15, with subsequent payments due on February 15 and May 16.
Although the assessed value increases within the Oregon cap at 3%, the amount of tax owed is still subject to an increase depending on the tax rate. Tax returns also serve as an opinion of value, so an owner (or one of our dedicated agents) will always have the possibility to appeal against the value of industrial, commercial, real estate and personal property before December 31st. Relying on the county council will provide the opportunity to reduce the assessed value and reduce the amount of tax owed.
Some tax bills will go down
However, not all owners will pay more. Changes to tax laws reflect the impact of the COVID-19 pandemic. Hotel owners, for example, may receive lower bills than in the past. These declines reflect the impact of the pandemic on the hospitality industry as people cut back on business and leisure travel over the past eighteen months.