The following schedule applies to the net taxable income of salaried workers, sole proprietors, and partners who are residents of Oregon. Non-residents of Oregon are also taxed at these rates on income derived from sources within the state. The property tax in Oregon is used for the support of local taxing districts such as public schools, cities, and counties. No property tax has been collected to finance state need since 1 940. The property tax applies to privately owned real estate such as land, homes, farms, stores, factories, warehouses and commercial offices.
Personal property held for the use and enjoyment of individuals is exempt from taxation.
However, personal property such as machinery, equipment and supplies used to produce income, or with the potential of producing income, is subject to taxation. Assessed taxable values are 100 percent of true market value. The rate of taxation on property is governed by the needs of the taxing districts within the constitutional and statutory limits. After a district has gained voter approval of its tax base, the district can levy the tax base amount plus 6 percent each year without seeking further voter approval. The tax is levied on that portion of net income assignable to Oregon.