A real estate broker in Oregon is advising a client who is considering buying a property. The broker explains that Oregon's property tax system differs from states that reassess property at full market value upon sale. Which of the following statements correctly describes Oregon's approach under Measure 50?
Correct Answer
B) Oregon's MAV carries over to the new owner after a sale, and the 3% annual cap continues to apply regardless of the sale price
Unlike California's Proposition 13, which triggers reassessment at sale, Oregon's Measure 50 does NOT reassess property upon sale. The MAV carries over to the new owner, and the 3% annual cap continues to apply. This means a buyer who pays $600,000 for a property with an MAV of $250,000 will continue to be taxed on the MAV of $250,000 (or its RMV if lower), not on the $600,000 purchase price. This is a critical Oregon-specific concept that affects property tax estimates for buyers.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
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- → The income approach to appraisal is most commonly used for which type of property?
- → Which formula correctly calculates the capitalization rate?
- → External obsolescence in Oklahoma:
- → The sales comparison approach to appraisal is most appropriate for which type of property?
- → Which of the following correctly lists the three types of depreciation recognized in real estate appraisal?
- → The sales comparison approach to appraisal is most commonly used for which type of property?
- → Which four tests must a use satisfy to qualify as the highest and best use of a property?
- → Three depreciation:
- → Cap rate:
- → Which formula best represents the cost approach to appraisal?
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