Tom is a licensed Oregon broker advising a first-time buyer, Priya, who is purchasing a home in Corvallis. The home's current MAV is $220,000 and its RMV is $480,000. Priya is purchasing the home for $495,000. Priya asks Tom what her property tax assessed value will be after she takes ownership. Which response is most accurate under Oregon law?
Correct Answer
C) Her assessed value will remain $220,000 because the MAV carries over to the new owner and is less than the RMV
Under Oregon's Measure 50 (ORS 308.146), the sale of a property does NOT trigger reassessment. The MAV of $220,000 carries over to Priya as the new owner. Since MAV ($220,000) is less than RMV ($480,000), the Assessed Value remains $220,000. Priya's purchase price of $495,000 has no effect on her assessed value or her property tax bill. This is one of the most important Oregon-specific property tax concepts for brokers to understand and communicate to buyers.
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