Marcus purchases a vacant lot in Eugene and immediately constructs a new home on it. Under Oregon's Measure 50 rules, how will the newly constructed home be treated for property tax assessment purposes?
Correct Answer
B) The home's value will be added to the existing MAV, and the combined MAV will be capped at 3% annual increases going forward
Under Oregon's Measure 50 (ORS 308.153), when new construction is added to a property, the value of the new improvement is added to the existing MAV. The county assessor determines the RMV of the new construction and calculates a proportional MAV addition. From that point forward, the combined MAV is subject to the standard 3% annual cap. This is called an 'exception' event that allows the MAV to increase beyond the normal 3% limit in the year of new construction.
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