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Legal Updates & Alerts

Curb the Pain of Recent Property Tax Increases: Appeal By Dec. 31

December 13, 2016
By Michael Mangan

Due to the convergence of unusual circumstances and Oregon's unique property tax laws, property taxpayers have an opportunity to obtain significant tax savings this year and for the following five years by appealing their "real market values" this year. 

Normally, taxpayers are not concerned with appealing "real market value" assessments unless such an appeal would also result in a lower "assessed value." Why? Because in Oregon, property taxes are largely governed by "assessed values." But, this year is unique. As property values continue to appreciate, Oregon assessors are bringing properties out of something called "compression," an unseen tax limitation that most taxpayers have benefited from for almost a decade. As a result, property taxes are increasing exponentially in comparison to past years.
 
The valuation methodologies used by county assessors often miss a property's individual characteristics. As a result, many properties are overvalued when appreciation occurs. It is often only by filing an appeal that a taxpayer can correct its real market value. This year matters more than most because it could be the last year most benefit from compression. The successful appeal of a property's real market value this year may keep it below the compression threshold for the next five years, which would result in significant tax savings. Appeals must be filed no later than December 31, 2016 to protect your rights.
 
If you would like to know whether your property may benefit from a real market value appeal, is in compression, or might qualify for compression as a result of an appeal, please contact Michael Mangan or the attorney with whom you regularly work at our firm.