Property taxes in Oregon are administered by the counties. Tax rates are established in terms of $1,000 of assessed value. According to the Oregon.gov website, the Oregon Constitution limits increases in the maximum assessed value of a property to no more than 3% a year. But there are exceptions such as an addition or a major improvement.
The constitution also sets limits, called “Measure 5 limits” on the amount of property taxes that can be collected for each property tax account. The limits are $5 per $1,000 of real market value for education taxes and $10 per $1,000 of real market value for general government taxes. But these limits do not apply to some taxes, such as for general bond obligations.
The Homestead exemption in Oregon does not reduce your property taxes. But as explained by Oliveros & O’Brien, P.C., the homestead exemption protects your home from creditors. The exemption is $40,000 for a single person and $50,000 for a married couple. The homestead exemption in Oregon is automatic; you do not need to file an application but you have to meet certain conditions.
Disabled veterans in Oregon, and their surviving spouses or registered domestic partners, can claim a property tax exemption of $17,389 or $20,867 (for 2011) of the assessed value of their homestead. The exemption amount increases by 3% each year.
To qualify for the $17,389 exemption you must own and live on your homestead property and must be certified by the U.S. Department of Veterans Affairs or by any branch of the U.S Armed Forces as having disabilities of 40% or more. Or you must be certified each year by a licensed physician that you have disabilities of 40% or more. And your income in the year prior to the exemption cannot be more than 185% of the Federal Poverty Level Guidelines. Your income for this purpose includes pensions, disability compensation and military retirement pay.
If you are a surviving spouse or partner you can claim the $17,389 exemption if you have not entered into a new marriage or partnership. You can claim the exemption even if your veteran spouse or partner was not disabled and never claimed the disability exemption.
As a veteran, you can claim the $20,867 exemption if you have a 40% or more service-related disability as officially certified by the U.S. Department of Veterans Affairs or any branch of the U.S. Armed Forces. If you are a surviving spouse or partner, you can claim the exemption if your veteran spouse or partner died from a service-connected injury or illness, or received at least one year of the maximum exemption.
This exemption is not automatic; you must apply for it. You should contact your county tax assessor’s office for information on how to apply and the documentation you need. You can find links to the county assessors’ websites on the Oregon.gov website. You don’t have to file a claim each year unless your disabilities are certified by a licensed physician or if there is a change of ownership of your home.
Storm damage
If your property in Oregon is damaged or destroyed as a result of a fire or an Act of God, such as a storm, you may qualify for property tax relief. For example, Clatsop County and Lane County provide information on applying for this property tax relief due to storm damage. After you submit your application, the tax assessor determines a percentage of damage, and if the damage reduces the real market value of your property below the taxable assessed value, your property taxes will be prorated. The prorated portion of taxes to be paid will be canceled or if you have already paid the taxes, the applicable portion will be refunded.
According to the Database of State Incentives for Renewables & Efficiency, Oregon law provides for an exemption from the property’s assessed value for the cost of installing a renewable energy system. This includes solar, wind, biomass, geothermal, and other types of renewable energy systems.
