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Many Douglas County homeowners may have expected their property taxes to go down this year in line with falling home values, but that wasn't the case. Instead, property taxes increased 2.6 percent.
The market value of properties in the county fell $600 million from the year before, to $15.5 billion. However, assessed values increased $200 million over the same period of time, to $7.4 billion.
As a result, property tax bills totaled $87.1 billion, up from $84.9 billion last year.
Call it the Measure 50 effect. Approved by Oregon voters in 1997, Measure 50 stabilized property taxes by preventing huge shifts in property tax assessments whenever property values shot up or fell.
After passage of the law, assessed values were rolled back to the levels imposed in the 1995-96 fiscal year, minus an additional 10 percent. That created a disconnect between the assessed value of a home and the real market value, the amount a homeowner could expect to receive if his or her house was put up for sale.
Under the law, the maximum assessed value increases by 3 percent each year. The only exceptions, which would result in a larger hike, are for the addition of a new structure, major improvements to an existing structure or subdividing or partitioning the property.
For property taxes to go down, the assessed value would have to exceed the market value.
“If the real market value falls below the maximum assessed value for two years in a row, the maximum assessed value will be frozen, with no increases. It will go away from that 3 percent increase and then you'll be assessed on RMV until and if and when RMV climbs back above the maximum assessed value,” Douglas County Assessor Ron Northcraft said.
Currently, assessed values in Douglas County are 48 percent below market values — the difference between the $7.4 billion in assessed value and $15.5 billion in market value.
The owner of a Roseburg house among 16 residential properties that Northcraft's office tracks from year to year holds a current market value of $223,512 and an assessed value of $140,650, a difference of $82,862.
Last year, the owner paid $2,086 in property taxes. And while the market value declined 6.3 percent over the past year, from $238,568, this year's tax bill was $62 higher. The amount, $2,148, was based upon an increase of $4,096 in assessed value.
Altogether, the 16 properties on the list decreased 7.25 percent in market value while taxes increased by 4.6 percent. That compares to a 2.2 percent market value decline and a 4.6 percent tax increase the year before.
Two years ago, before the decline of the real estate market, those properties showed an increase in market values of 20 percent and a tax increase of 3.3 percent. In 2006, market values increased 14 percent and taxes rose by 3 percent.
Lonnie Ferber, a Roseburg property appraiser, said he believes market values are even lower than what the Douglas County Assessor's Office has calculated. And that isn't just because those values were calculated back in January.
“As of Jan. 1, 2010, I feel the new values will be high, too,” Ferber said.
A house in northeast Roseburg that sold recently for $157,000 is listed on the Assessor's Web site as having a real market value of $190,444. The house, with three bedrooms, 2.5 bedrooms and 1,572 square feet of living space, previously sold for $182,000 in May 2008.
Ferber said he felt values were too low several years ago. That was during a boom period where homes commanded premium prices and buyers had to move quickly.
“Five or six years ago, you had to put up or shut up because there were five other buyers right behind you,” Ferber said. “Now people are holding their money and they can be a lot choosier.”
The average property tax increase this year is less than $100 for 94 percent of the 48,579 properties in the county whose owners did not make any major changes or improvements from last year, Northcraft said. A year ago, 15 percent of properties saw an increase of more than $100.
The county has a property tax rate of $1.11 per $1,000 of assessed value. It's one of the lowest rates in the state and is reflective of a time when Douglas County was flush with timber money and county officials didn't see the need for a higher rate. Now the county is stuck with that rate permanently.
The money collected by the county is dedicated to the Douglas County Sheriff's Office. It provides about 40 percent of the $20 million in revenue the office takes in.
In comparison, Lane County has a tax rate of $1.28, a penny higher than Deschutes County. Linn County's tax rate is $3.61, while it's $2.01 in Jackson County.
The three Portland metropolitan counties charge considerably more: $4.34 in Multnomah County, $2.40 in Washington County and $2.39 in Clackamas County.
Coos County's rate is $1.08, while Curry County charges 60 cents and Josephine County charges 59 cents. All three of those counties face dire circumstances when the timber safety net extension expires in two years.
Douglas County's incorporated towns charge between $1.46 per $1,000 in Yoncalla to $8.48 in Roseburg.
The average overall tax rate within Douglas County is $10.13 per $1,000 of assessed value. The lowest rate is $6.79 for rural portions of the county outside Roseburg. The highest rate is $18.84 in Reedsport.
Altogether, there are 115 taxing districts that receive money in Douglas County, including school districts, fire districts and road districts.
Rates in the Elkton and Oakland school districts increased this year to reflect the passage of bond levies. The Elkton levy added 93 cents per $1,000 while the Oakland measure added 38 cents. Property owners in the Glendale Ambulance District will pay 63 cents less per $1,000 because of a decrease in the imposed rate.
Property owners who believe their values are too high may go through an informal review process until early December. Formal appeals to the Board of Property Tax Appeals are due Dec. 31. Hearings before the board will be scheduled in February.
• You can reach reporter John Sowell at 957-4209 or by e-mail at jsowell@nrtoday.com.
The market value of properties in the county fell $600 million from the year before, to $15.5 billion. However, assessed values increased $200 million over the same period of time, to $7.4 billion.
As a result, property tax bills totaled $87.1 billion, up from $84.9 billion last year.
Call it the Measure 50 effect. Approved by Oregon voters in 1997, Measure 50 stabilized property taxes by preventing huge shifts in property tax assessments whenever property values shot up or fell.
After passage of the law, assessed values were rolled back to the levels imposed in the 1995-96 fiscal year, minus an additional 10 percent. That created a disconnect between the assessed value of a home and the real market value, the amount a homeowner could expect to receive if his or her house was put up for sale.
Under the law, the maximum assessed value increases by 3 percent each year. The only exceptions, which would result in a larger hike, are for the addition of a new structure, major improvements to an existing structure or subdividing or partitioning the property.
For property taxes to go down, the assessed value would have to exceed the market value.
“If the real market value falls below the maximum assessed value for two years in a row, the maximum assessed value will be frozen, with no increases. It will go away from that 3 percent increase and then you'll be assessed on RMV until and if and when RMV climbs back above the maximum assessed value,” Douglas County Assessor Ron Northcraft said.
Currently, assessed values in Douglas County are 48 percent below market values — the difference between the $7.4 billion in assessed value and $15.5 billion in market value.
The owner of a Roseburg house among 16 residential properties that Northcraft's office tracks from year to year holds a current market value of $223,512 and an assessed value of $140,650, a difference of $82,862.
Last year, the owner paid $2,086 in property taxes. And while the market value declined 6.3 percent over the past year, from $238,568, this year's tax bill was $62 higher. The amount, $2,148, was based upon an increase of $4,096 in assessed value.
Altogether, the 16 properties on the list decreased 7.25 percent in market value while taxes increased by 4.6 percent. That compares to a 2.2 percent market value decline and a 4.6 percent tax increase the year before.
Two years ago, before the decline of the real estate market, those properties showed an increase in market values of 20 percent and a tax increase of 3.3 percent. In 2006, market values increased 14 percent and taxes rose by 3 percent.
Lonnie Ferber, a Roseburg property appraiser, said he believes market values are even lower than what the Douglas County Assessor's Office has calculated. And that isn't just because those values were calculated back in January.
“As of Jan. 1, 2010, I feel the new values will be high, too,” Ferber said.
A house in northeast Roseburg that sold recently for $157,000 is listed on the Assessor's Web site as having a real market value of $190,444. The house, with three bedrooms, 2.5 bedrooms and 1,572 square feet of living space, previously sold for $182,000 in May 2008.
Ferber said he felt values were too low several years ago. That was during a boom period where homes commanded premium prices and buyers had to move quickly.
“Five or six years ago, you had to put up or shut up because there were five other buyers right behind you,” Ferber said. “Now people are holding their money and they can be a lot choosier.”
The average property tax increase this year is less than $100 for 94 percent of the 48,579 properties in the county whose owners did not make any major changes or improvements from last year, Northcraft said. A year ago, 15 percent of properties saw an increase of more than $100.
The county has a property tax rate of $1.11 per $1,000 of assessed value. It's one of the lowest rates in the state and is reflective of a time when Douglas County was flush with timber money and county officials didn't see the need for a higher rate. Now the county is stuck with that rate permanently.
The money collected by the county is dedicated to the Douglas County Sheriff's Office. It provides about 40 percent of the $20 million in revenue the office takes in.
In comparison, Lane County has a tax rate of $1.28, a penny higher than Deschutes County. Linn County's tax rate is $3.61, while it's $2.01 in Jackson County.
The three Portland metropolitan counties charge considerably more: $4.34 in Multnomah County, $2.40 in Washington County and $2.39 in Clackamas County.
Coos County's rate is $1.08, while Curry County charges 60 cents and Josephine County charges 59 cents. All three of those counties face dire circumstances when the timber safety net extension expires in two years.
Douglas County's incorporated towns charge between $1.46 per $1,000 in Yoncalla to $8.48 in Roseburg.
The average overall tax rate within Douglas County is $10.13 per $1,000 of assessed value. The lowest rate is $6.79 for rural portions of the county outside Roseburg. The highest rate is $18.84 in Reedsport.
Altogether, there are 115 taxing districts that receive money in Douglas County, including school districts, fire districts and road districts.
Rates in the Elkton and Oakland school districts increased this year to reflect the passage of bond levies. The Elkton levy added 93 cents per $1,000 while the Oakland measure added 38 cents. Property owners in the Glendale Ambulance District will pay 63 cents less per $1,000 because of a decrease in the imposed rate.
Property owners who believe their values are too high may go through an informal review process until early December. Formal appeals to the Board of Property Tax Appeals are due Dec. 31. Hearings before the board will be scheduled in February.
• You can reach reporter John Sowell at 957-4209 or by e-mail at jsowell@nrtoday.com.
