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.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Valuation Question
Background Knowledge for Valuation
Real World Application in Valuation
Related Topics & Key Terms
Key Terms:
More Valuation Questions
Example of economic obsolescence in real estate?
Who typically hires the appraiser in a real estate transaction?
Which appraisal report type do California lenders commonly rely on for single-family residence financing?
Return of an investor’s investment is provided for through:
All of the following are one of the four important elements of value, except:
- → Under the replacement cost approach of appraisal, an appraiser is least interested in:
- → The appraisal process which allocates a percentage of a property’s total value to the land and a percentage to the improvements is known as:
- → Which Tennessee government body is primarily responsible for appraising real property for ad valorem tax purposes at the local level?
- → A property's value decreased because a noisy highway was built nearby. This is an example of:
- → Which of the following is the least important factor used to determine the market value of a property?
- → In Texas, a comparative market analysis (CMA) can be prepared by:
- → All of the following have a specific dollar value, except:
- → In which appraisal approach to value would the value for the land be calculated separately?
- → In Texas, functional obsolescence includes:
- → A capitalization rate of 8% on a property with $40,000 NOI indicates a value of: