Property Valuation
In Oregon, a property's 'assessed value' for property tax purposes may differ significantly from its 'real market value' due to which legislation?
AOregon Revised Statutes Chapter 696
BMeasure 50, which created Maximum Assessed Value (MAV) limits based on 1995 values✓ Correct
COregon's Statewide Planning Goal 3
DOregon's Forest Practices Act
Explanation
Measure 50 (1997) established Maximum Assessed Value (MAV) for Oregon properties, limiting annual increases in taxable assessed value to 3% per year (with exceptions for major improvements). Properties assessed using MAV may have taxable values significantly below their Real Market Value (RMV), especially in areas with rapid appreciation like Portland, Bend, and the Willamette Valley.
People Also Study
Related Oregon Questions
- A property in Oregon has a market value of $480,000 and is assessed at 90% of market value. The tax rate is $12.50 per $1,000 of assessed value. What is the annual property tax?Real Estate Math
- A property's annual NOI is $48,000. Market cap rates for similar properties are 8%. Using the income approach, what is the estimated value?Real Estate Math
- In Oregon, the county assessor values property for tax purposes using which value basis?Property Valuation
- An Oregon property has an assessed value of $340,000. Oregon's Measure 5 limits property tax to what percentage of real market value for education?Real Estate Math
- An Oregon home sells for $398,000. The county records show a Real Market Value (RMV) of $398,000 and a Maximum Assessed Value (MAV) of $285,000. The tax rate is $15/$1,000. What is the annual property tax?Real Estate Math
- An appraiser is comparing two Oregon properties: one on the east side of Portland (valued at $450,000) and one on the west side (valued at $650,000). The higher west-side value likely reflects:Property Valuation
- Oregon's real estate market in the Bend and Central Oregon area has seen significant price appreciation. A lender ordering an appraisal there would be most concerned about:Finance
- A property produces a net operating income (NOI) of $60,000 per year. If the capitalization rate is 6%, the property's estimated value using the income approach is:Property Valuation
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Math Concepts
Study This Topic
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →