This bill amends Oregon Constitution increasing ad valorem property taxation to 75% of the real market value.
The bill exempts from ad valorem property taxes lesser of first $25,000 or first 25 percent of real market value of each homestead and requires the legislature to enact laws for administration of exemption, including adjusting $25,000 for inflation. This means that property taxes would no longer be capped at three percent annually and could raise it 30-60%. They are only required to lag behind market value. The legislative revenue office has not done any analysis on what dollar amount this will raise, but it has to be significant, and will grow over the years.
After 1998 the growth in assessed value was limited to three percent annually. Property values, especially with the policies in Oregon, tends to increase at a rate greater than three percent, so over the decades, most properties have seen a huge gap between the real market value — what a home can sell for — and the assessed value, which is capped to increase at no more than three percent annually.
At a time when many businesses have closed and many many folks are out of work is not the time to increase taxes.