Opinion ID: 3218859
Heading Depth: 3
Heading Rank: 2

Heading: Maximum assessed value and Measure 50

Text: The real market value of property, however, is not necessarily the assessed value that goes on the tax roll. That qualification derives from Measure 50, a constitutional amendment enacted in 1997 (codified as Article XI, section 11, of the Oregon Constitution), and its enabling legislation. In sum, Measure 50 caps property taxes: The assessed value of the property will be the lesser of the real market value or what is called the “maximum assessed value.” See Or Const, Art XI, § 11(1) (describing calculation of maximum assessed value); 6 ORS 308.146(2).7 The maximum assessed value generally is designed to keep the assessed property value from increasing more than three percent per year. See Or Const, Art XI, § 11(1)(b); ORS 308.146(1). For purposes of determining compliance with Measure 50, “property” means “[a]ll property included within a single property tax account[.]” ORS 308.142(1)(a). A property tax account is an administrative division of feasible, and that results in the highest value. See The Appraisal of Real Estate, 12th edition (2001).” OAR 150-308.205-(A)(1)(e). The “highest and best use” of real property is an integral part of determining its real market value. See OAR 150-308.205-(A)(2)(i): “Determining highest and best use for the unit of property is necessary for establishing real market value. This determination of highest and best use may include, among others, all possible uses that might result from retaining, altering or ceasing the integrated nature of the unit of property.” 6 The relevant part of Article XI, section 11, provides: “(1)(a) For the tax year beginning July 1, 1997, each unit of property in this state shall have a maximum assessed value for ad valorem property tax purposes that does not exceed the property’s real market value for the tax year beginning July 1, 1995, reduced by 10 percent. “(b) For tax years beginning after July 1, 1997, the property’s maximum assessed value shall not increase by more than three percent from the previous tax year.” 7 ORS 308.146 provides in part: “(1) The maximum assessed value of property shall equal 103 percent of the property’s assessed value from the prior year or 100 percent of the property’s maximum assessed value from the prior year, whichever is greater. “(2) Except as provided in subsections (3) and (4) of this section, the assessed value of property to which this section applies shall equal the lesser of: “(a) The property’s maximum assessed value; or “(b) The property’s real market value.” Cite as 359 Or 822 (2016) 827 property. ORS 308.142(2) (also for purposes of complying with Measure 50, the term “property tax account” means “the administrative division of property for purposes of listing on the assessment roll”).