Property taxes are another concept in real estate that our clients are often confused about. How are property taxes calculated? How can one house in one neighborhood have such a high property tax and another house in an adjacent neighborhood have such a low one?
One of the many amazing things about living in Oregon is that according to our tax code, a property’s assessed value can only increase approximately 3% annually, even if a property is sold over and over again. For example, if the home you purchased for $200,000 increases in value and you later sell it for $600,000, a tax assessor can’t then assess that property at $600,000.
There are other factors that can affect your property tax. Every neighborhood has different property tax rates, so they can be all over the map. If you do a permitted remodel, your home’s assessed value may go up. In addition, areas are reassessed out of necessity every 10 to 15 years. However, if you sell your home for quite a bit more than what it was assessed for, that won’t necessarily flag the assessor.
If you want an accurate idea of your home’s value, visit your county’s tax assessment office. They can not only answer your questions, but they can also show you how you can protest your property’s assessed value. Although we are not tax assessors, we are also happy to aid in this process! We love to be resources for our clients for any and all real estate questions.