Administering the Property Tax System

1
Administering the Property Tax System

• Everything you wanted to know but were afraid to
  ask

2
Introduction

• Dave Lawson Assessor/Tax Collector
• Our office staff consists of 16 employees divided
  into 3 sections
• Assessment 1 Program Supervisor, 1 Chief Deputy
  Tax Collector, 1 Office Specialist Tech, 3 Senior
  Office Specialists, 1 Office Specialist 2
• Appraisal 1 Chief Appraiser, 2 Residential
  Appraisers, 2 Farm Appraisers, 1
  Commercial/Industrial Appraiser, 1 Appraiser
  Trainee
• Cartography 1 Cartographer

3
Organizational Chart
4
Our Mission Statement

• Provide quality public service that preserves and
  enhances the quality of life for all citizens
  through the appraisal, assessment and taxation of
  all real and personal property in the county in a
  fair and equitable manner as mandated by the
  State of Oregon.
• The property tax system provides financing for
  local government services approved by voters in
  each jurisdiction.
• Police and Fire Departments, Schools, Libraries,
  Streets, Parks, Public Health and other programs
  as desired by the public.

5
Responsibilities of Assessment and Taxation

• Maintaining ownership records, legal
  descriptions, values, tax records and maps.
• Discovering and appraising all property in
  Yamhill County, which includes residential,
  commercial, industrial, personal property,
  manufactured structures and utilities.
• Review and certification of all local operating
  budgets for taxing districts within Yamhill
  County.
• Calculate, Collect and Distribute all property
  taxes, special assessment and fees.
• Administer many programs that adjust value
  Veterans exemptions,all other exemptions, Senior
  and Disabled Deferrals, Farm and Forest deferral
  and other special use programs.

6
Value Growth
7
Appraisal Stats

• Appraised 2,947 accounts due to new construction.
• Reappraisal of 1,911 residential properties in
  Newberg and Part of McMinnville.
• Processed 820 accounts due to revisions, omitted
  property, special assessment qualifications and
  disqualifications and exemptions.
• Only 72 accounts were appealed.

8
DOR Staff Analysis
9
Funding

• State Assessment and Taxation Grant
• County general fund.
• Some revenue is generated by selling plat
  aerial maps and assessment appraisal records to
  the general public.

10
Percentage Distribution
11
Exemptions

• Literary, Benevolent, Charitable, Scientific
  Institution 307.130
• Fraternal Organizations 307.136
• Religious Organizations 307.140
• Child Care Facilities, Schools, Student
  Housing 307.145
• Senior Services Centers Privately Owned 307.147
• Burial Grounds, Cemeteries, Crematory
  Associations 307.150
• Public Libraries Privately Owned 307.160
• Farm Labor Camps, Day Care Centers 307.495
• Housing for Low Income Rental 307.517
• Non-Profit Low Income Rental Housing 307.541
• Non-Profit Homes for the Elderly (Personal
  Property) 307.370
• Industry Apprenticeship or Training
  Trust 307-580
• Water Associations 307.210
• City 307.090
• County 307.090
• State 307.090
• Federal 307.040
• All Other Municipal Corporations 307.090
• Housing Authorities 456.225

• Enterprise Zone 284.110
• Logging Equipment Personal Property
  (partial) 307.827
• Frost Control Devices (partial) 307.400
• Historical Property (partial) 358.505
• Pollution Control Facilities 307.420
• Facilities Under Construction 307.340
• Multi. Unit Housing in Core Area
  (partial) 307.630
• Manufactured Structure Dealer Inventory 307.400
• Insufficient Value Manufactured Structures (Less
  than 500.)
• Insufficient Value Manufactured Structures (Less
  than 10,000.) 308.250
• Contaminated Property
  AR308.205
• Riparian lands
  308.794
• HB2079 Long Term Care Facilities
• Disabled Veterans Partial Exemption 307.250
• Disabled Veteran 307.250
• Disabled Veterans Spouse 307.250
• Spouse of Service Connected Disabled
  Veteran 307.250

12
Historic Overview

• To understand the current structure of Oregon's
  property tax system, it is helpful to view the
  system in a
• historical context. Although governments in
  Oregon began taxing property before statehood,
  the structure of
• the tax changed very little until the 1990s, when
  two statewide ballot measures dramatically
  altered the system
• (Measure 5 Measure 50). Oregon had a pure levy
  based property tax system until 1991-92. Each
  taxing
• district calculated its own tax levy based on its
  budget needs. County assessors estimated the real
  market values
• of all property in the state. Generally
  speaking, the full market value of property was
  taxable there was no
• separate definition of assessed value. The levy
  for each taxing district was then divided by the
  total real market
• value in the district to arrive at a district tax
  rate. The taxes imposed by each district equaled
  its tax rate
• multiplied by its real market value. Consequently
  there was no difference between taxes imposed and
  tax levies
• under this system. Most levies were
  constitutionally limited to an annual growth rate
  of 6 percent, and levies
• that would increase by more than 6 percent
  required voter- approval. Under this system, the
  tax rate for an
• individual property depended on the combination
  of taxing districts from which it received
  services. Taxes for
• each property were calculated by first summing
  the tax rates for the relevant taxing districts
  to arrive at a
• consolidated tax rate. That tax rate was
  multiplied by the assessed value of the property
  to determine the tax
• imposed on that property. The annual growth in
  taxes on an individual property depended on a
  number of
• factors, including new or larger levies and the
  amount of new construction within the district.
  For example, if
• new construction did not occur, and property
  values did not change, then any growth in levies
  meant taxes
• increased for individual properties. On the other
  hand, new construction within the district meant
  that the
• levies were distributed across greater value. The
  tax rate would fall when the value of the
  district increased.

13
Measures Having Major Impact on Property tax
System

• Measure 5 Passed in 1990. Established a rate
  limit for schools at 5 per 1,000 of real market
  value and 10 per 1,000 of real market value for
  general government. The rates were phased in
  over 5 years.
• Measure 50 Passed in 1997. Established
  permanent rates for operating levies of all
  taxing districts in county. Rolled property
  values back to 1995 values minus 10. Put a
  limit of 3 on property values, when no new
  construction occurs.

14
Measure 5 Impact on Rates
15
Measure 50 Terms

• Real Market Value (RMV) Highest price, in terms
  of dollars, that a willing, well-informed buyer
  would pay and a willing, well-informed seller
  would accept.
• Maximum Assessed Value (MAV) 1995 value minus
  10, increased by 3 since 1997 unless account
  pays on RMV.
• Assessed Value (AV) The lower of RMV or MAV.
• Value Exceptions Value added to RMV and MAV
  when new construction has occurred.
• Changed Property Ratio (CPR) A ratio applied to
  RMV of new construction accounts and accounts
  where a division of property has occurred or an
  exemption or deferral has been removed. Will
  ensure that the property will receive the same
  value benefits as existing properties under
  measure 50.
• Permanent Rate The rate established for each
  taxing district during implementation of Measure
  50

16
Property Events Increasing Value

• The MAV can increase by more than 3 percent for
  any of the following property events
• Changes in the property value as the result of
  new property or new improvements to property
• The property is partitioned or subdivided
• The property is rezoned and used consistently
  with rezoning
• The property is first taken into account as
  omitted property, or
• The property becomes disqualified from exemption,
  partial exemption or special assessment.
• New construction affects MAV if it increases the
  value of the property
• by more than 10,000 in any one year or 25,000
  within any consecutive
• five years.These changes will always have an
  effect on RMV, although they may not have a
  dollar for dollar impact on MAV.

17
RMV Still Necessary?

• In the majority of cases, RMV keeps properties
  out of compression and avoids revenue loss to
  districts.
• The relationship between AV and RMV determines
  the changed property ratio (CPR).
• RMV is required for rating of bond issues.
• Required by statute.

18
Comparison of McMinnville SD 40 Taxes with
without Measure 5 50

• 2002 Real Market Value Exemptions
  2,493,550,887
• Calculated Tax Rate 7.4873
• Divided by 1,000
• Amount to be received Without Measure 5 or 50
  18,669,964
• M5 Tax 7,603,148
• 2002 Assessed Value Exemptions
  1,718,993,421
• Permanent Rate 4.1494
• Divided by 1,000
• Amount to be received With Measure 5 50
  7,618,531
• Adjustment Factor
  .997981
• Tax After Compression 7,603,148

19
MEASURE 5 vs MEASURE 50
20
Example Tax Statement
21
Tax Payments

• Tax payments are received by three methods
• Data Exchange 23
• Key Banks Processing Center 44
• Mail Over Counter Payments 33
• The first two programs are electronically
  posted. Our office staff processes all payments
  into our office.

22
Tax Payment Stats
23
Appeals

• If you feel the assessor has incorrectly
  estimated or determined either the real market
  value or the assessed value of your property, you
  have the right to appeal. Your appeal must be
  based on the property's value, not on the amount
  of taxes shown on the tax statement. To receive a
  reduction in your value, you must convince your
  county board of property tax appeals that your
  property was incorrectly valued too high. Support
  your belief with information such as appraisal
  reports or comparable sales data. Your property
  tax was calculated on the property's assessed
  value, which may not be its real market value. If
  this is the case, you must show that the
  calculation of the assessed value was done
  incorrectly. If you are successful in gaining a
  reduction to only the real market value, your
  taxes may not be reduced.