Diana owns a home in Medford. She recently added a large addition to her property, which the county assessor classifies as an 'exception event' under Measure 50. Which of the following best describes the consequence of this exception event on Diana's property taxes?
Correct Answer
D) Diana's MAV will increase by more than 3% in the year the addition is completed, reflecting the added value of the improvement
Under ORS 308.153, certain events — called 'exception events' — allow a property's MAV to increase by more than the standard 3% annual cap in the year the event occurs. New construction additions are a classic exception event. The assessor calculates the RMV of the new improvement, determines a proportional MAV addition using the statewide MAV-to-RMV ratio, and adds it to the existing MAV. This means the MAV can jump significantly in that year. After the exception year, the new combined MAV is again subject to the 3% annual cap.
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