Portland property tax will increase slightly
Homeowners in the greater Portland area could be in for a nasty surprise the next time they open their mailbox if they haven’t been keeping up with the news. Property tax letters with newly increased tax rates are already on their way to residents. Most homeowners should expect to pay a slight increase the next time they file their taxes.
Portland resident owners won’t be too surprised, though. Anyone who has owned a property in Metro Portland (which spans multiple counties) for more than a few years knows that property taxes go up 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 can see every year. Other factors may come into play.
Why Portland Property Taxes Are Higher in 2021
In 2021, voters approved new tax levies and bonds that will pay for modernized infrastructure and public services. For example, a library and bond for parks and public schools in Portland will benefit the Multnomah County community for years to come. Similarly, Clackamas County residents approved bonds to create new schools in the Canby and West Linn-Wilsonville school districts. Washington County tax hikes will pay for libraries and public safety.
What does the tax increase look like?
Although property tax rates will only increase by a few percentage points, the total amount of taxes collected from ratepayers by each county serving the Portland area is not to be overlooked. Washington County will see a 4% increase in tax revenue from $1.258 billion to $1.309 billion. In Clackamas County, a 3.7% increase in taxes pushes revenue up to $998.6 million from $962.2 million last year. Multnomah County will see the biggest increase with tax revenue increasing 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 Nov. 15, earning them a 3% discount. Paying 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 in thirds over six months. The first payment is still due on November 15, with subsequent payments due on February 15 and May 16.
Although the taxable value increases throughout Oregon at 3%, the amount of tax due is still likely to 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 opportunity to appeal the value of industrial, commercial, real estate and personal property before the December 31st. Appealing to the county council will provide the opportunity to reduce the assessed value and reduce the amount of tax due.
Some tax bills will decrease
However, not all owners will pay more. Changes to tax legislation reflect the impact of the COVID-19 pandemic. Hotel owners, for example, may receive lower bills than before. These declines reflect the impact of the pandemic on the hospitality industry, as people have reduced business and leisure travel over the past eighteen months.