Oregon's property tax rates are higher than a number of other States. The main reason is that we do not have a sales tax (on anything). Just think, you can buy a new car and only pay an additional $50 for a two-year auto registration.
Oregon's property tax system is primarily a rate-based system calculated on the Tax Assessed value of a property. There is a constitutional limit on tax assessed value increases. This means that property taxes are not reassessed when a home sells. The tax assessed value was actually frozen in 1997/98 by Measure 50. Making the Real Market Value of a home and the Tax Assessed Value two entirely different numbers. It is entirely possible for a home to sell for $500K (real market value) but have a tax assessed value of just $300K. By law, the tax assessed value cannot increase more than 3% per year without a vote of the people. Examples of a vote would be a school, fire or library bond or levy. The approval of a bond increases the mill-rate.
The tax rate or 'mill-rate' is charged per $1000 of tax assessed value. The mill-rate varies from one community to another. In the Portland Metro area, mill-rates range from $15.00 to $20.30. Example: A home tax assessed at $242,000 (a real market value of $390K) with a mill-rate of $16.40, would owe annual property taxes of $3968. The highest mill-rate is within the City of Portland and Multnomah County. The City of Portland is partially in Washington County which has a much lower mill-rate. This is something to pay attention to when buying a home. A typical home selling between $250K and $300K would have a property tax of $2500-$3000 per year.
For homes located within the City of Portland, you can find out the tax assessed value and the annual tax due by entering the address at this web site: www.PortlandMaps.com.
Property Taxes are levied and become a lien on the property on July 1. Tax statements are mailed by October 25. Tax payments are due November 15 of the same calendar year. Taxpayers may elect to pay in thirds. If they do so, no discount is allowed, and the first one-third of taxes are due November 15, the second one-third on February 15, and the final one-third on May 15. A discount of 3 percent is allowed if full payment is made by November 15; a 2 percent discount is allowed for a two-thirds payment by November 15. For late payments, interest accrues at a rate of 1-1/3 percent per month (16 percent per year).