A homeowner in Portland receives her annual property tax statement. The county assessor lists her property's Real Market Value (RMV) at $480,000 and her Maximum Assessed Value (MAV) at $310,000. Which value will the county use to calculate her property tax bill?
Correct Answer
C) The Maximum Assessed Value of $310,000
Under Oregon's Measure 50 and ORS 308.146, property taxes are calculated on the Assessed Value (AV), which is defined as the LESSER of the Real Market Value (RMV) or the Maximum Assessed Value (MAV). Since the MAV of $310,000 is less than the RMV of $480,000, the Assessed Value equals $310,000, and taxes are calculated on that amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A transfer tax is a tax imposed on the transfer of ownership of real estate.
Reconciliation is the final step in the appraisal process where the appraiser analyzes the value indications from all applicable approaches and arrives at a single final opinion of value. It is not a simple average of the three values.
The comparable sales approach estimates a property's value by comparing it to similar properties that have recently sold in the same market area. It is the most widely used and reliable approach for appraising residential properties.
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