The tax assessed value would have be determined based on a formula set in 1996.? The County tracks two numbers, one is the market value of the property and the other is the tax assessed value. Taxes are computed based by multiplying the ‘mill rate’ by the tax assessed value.? The mill rate varies around the Metro area but ranges between $16.-$21.50.
Since our tax assessed value (State wide) was frozen in 1996 and is only allowed to be increased by 3% per year, the gap between the ‘market value’ and the ‘tax value’ became very wide during the boom years. This was good for homeowners because the actual tax is based on the lower of the two values.
We do not reassess the value for taxes when a property is sold. You can contest your taxes (once per year in December) if you have a current appraisal that shows the current market value of your property is at least 5% below the tax assessed value.
If the property is located in the City of Portland you can go to www.PortlandMaps.com and enter the address. Click on the ‘Assessor’ tab and scroll down to the bottom of the page where they list the ‘Assessment History’.? There you will find the ‘Real Market Value’ and the ‘Tax Assessed Value’.? In the recent downturn in real estate, the Real Market Value has often been higher than what the property is selling for but has NOT been lower than the Tax Assessed Value.
A typical house built before 1995 with an asking price of $250,000. would have an approximate annual tax bill of $2,500.? in the suburbs and about $2,800. in the City of Portland. A newer home would have a higher tax assessed value even though the market value is approximately the same, bringing the annual tax bill to around $2,800. in the suburbs and $3,100 in the City. This is a general statement that holds true for most properties. There are thousands of properties that are tax assessed significantly lower or higher than their neighbors. It’s always good luck to get one that is assessed lower.