Portland Property Taxes Going Up in 2022
Multnomah County passed a new measure in May 2021 that will impact property tax payers in Portland in 2022. This is in addition to the three new measures passed in November 2020 and the usual 3% increase Portland homeowners see every year. Additional measures could be voted on in November 2021 that will increase property taxes locally in 2022.
Why Do Property Taxes Go Up Every Year?
In Portland, the 3% increase is based on a calculation that multiplies a home’s assessed value by the current going tax rate, which varies by county and city. In Oregon, the assessed value of a home for tax purposes is calculated by determining the value of the home in 1995, and adding 3% for every year since. Since the Portland real estate market has increased on average more than 3% a year since 1995, this would mean property taxes were set on assessed values lower than actual property values – if it was not for many additional expensive local measures passed in the form of bonds and levies and added to Portland homeowners property tax bills each year. The renewal of old Bonds and Levies and the addition of new bonds and levies keep property taxes climbing.
What Happened to Portland Property Taxes in 2021?
In our property tax update for 2021, we highlighted three newly passed ballot measures from November 2020 that increased property tax in 2021, that will continue into 2022. To recap, they are:
- Measure 26-213, a five-year tax levy to fund Portland’s Parks and Recreation Bureau and allow for the safe reopening of community centers, pools, and rec programs due to the pandemic, as well as parks maintenance. The measure, which will add $0.80 of property tax per $1,000 assessed property value will also fund low-income youth programs.
- Measure 26-211, a new Multnomah County library bond with funds earmarked for expanding and renovating eight existing libraries, building a new “flagship” library in East Portland, and other facility upgrades. The bond will be funded by a $0.61 property tax increase per $1,000 of assessed value.
- Measure 26-215, a Portland Schools bond to replace and renovate four schools in Portland School District, add capacity for alternative schools, create a culturally-responsive community plan, improve schools in North/Northeast Portland, and add security and seismic safety improvements across the district. The bond will cost property owners $2.50 per $1,000 of assessed value; however, because a similar bond was passed in 2017, this was not an increase over what Portland property owners were already paying (since 2017) toward Portland school bonds.
Additional Portland Property Taxes Increases in 2022
A new Multnomah County measure passed in May, 2021 that will have additional impact not just on Portland homeowners, but on all Multnomah County homeowners. Measure 26-221 appeared on the ballot on referral, meaning that state legislature or local lawmakers voted to put the measure up for consideration, rather than through citizen initiative. The measure received 78.55% of the vote to increase county property taxes $0.05 per $1,000 in assessed property value. The funds raised through the levy, a proposed $3.4 to $3.9 million, will go to the Oregon Historical Society’s library, museum, and educational programs.
Active Bonds and Levies in Multnomah County Increasing Property Taxes in 2022
Measure 26-96 – Affecting Metro (tri-county area). Funds for Oregon Zoo.
Measure 26-152 – Affecting Metro (tri-county area). Funds for natural areas.
Measure 26-197 – Affecting Portland. Funds various child safety programs.
Measure 26-199 – Affecting Metro (tri-county area). Housing for low income.
Measure 26-203 – Affecting Multnomah. Additional funds for habitats, natural areas.
Measure 26-207 – Affecting Portland. Additional funding for schools.
Measure 26-211 – Affecting Multnomah. Funds for library facilities.
Information from Oregon Metro and Multnomah County.
New additional measures may appear on the 2021 ballot that increase local property taxes.
How do Portland’s Property Taxes Compare?
Oregon property taxes are mid-range compared to other states. Despite this, though, Multnomah, Washington, and Clackamas counties have the highest in the state. And in 2020, Lincoln Institute determined that Portland proper ranked in the top 5 in the entire country. This is partially due to the fact that Oregonians enjoy no sales tax on any purchase. Also, Oregon is still a popular moving destination with its population increasing by 1.14% between 2019 and 2020, according to Portland State University’s Population Research Center.
Love Oregon but Want to Avoid High Property Taxes?
Homeowners can see some tax relief if they look for their next home outside of Multnomah County and even more so if they purchase outside the Metro area (Multnomah, Washington, and Clackamas Counties). If you’re thinking of making a move to any of our diverse Portland suburbs, contact our top 1% buyer’s agents today.October 15, 2021