What is the correct answer to: Oregon property taxes are:

The correct answer is Assessed locally with Measure 50 limits. Answer B is correct because Oregon's property taxes are administered and collected at the county level by local assessors and tax collectors, not by the state or federal government, and Measure 50 (enacted by voters in 1997 as a constitutional amendment) limits annual assessed value growth to 3% per year under Article XI, Section 11 of the Oregon Constitution. This local administration combined with the Measure 50 cap is the defining structural feature of Oregon's property tax system that every Oregon real estate licensee must understand.

What background knowledge is needed for this Transfer Of Title question?

Oregon's modern property tax framework emerged from a turbulent period of voter revolt against rapidly rising tax bills in the 1990s. Measure 5, passed in 1990, first limited property tax rates for education and government services. Measure 47 followed in 1996 but contained drafting problems, leading to the corrective and clarifying Measure 50 in 1997, which became a permanent constitutional amendment. Measure 50 established the concept of 'maximum assessed value' (MAV), which was set at 90% of the 1995-96 real market value and can grow no more than 3% annually. This two-tiered system — real market value versus assessed value — is unique to Oregon and is a frequent source of confusion for new property owners and licensees alike.

What is a good way to remember the answer to this Transfer Of Title question?

Remember **'Measure 50 = 3% Max, Local Tax'** using the visual of a speedometer capped at 3 mph — no matter how fast the real estate market accelerates, Oregon's assessed value can only crawl forward at 3% per year. The speedometer is held by a county assessor (local), not a state or federal official, reinforcing the local administration aspect of the rule. Remember Oregon's property tax system with MAV. Think 'Maximum value, Annual 3% cap, Value determines tax' to recall how Measure 50 works.

What exam tip applies to this Transfer Of Title question?

Oregon property tax questions almost always hinge on two facts: (1) local assessment and collection, and (2) the Measure 50 constitutional cap on assessed value growth. If an answer choice mentions state or federal collection, eliminate it immediately. If an answer choice correctly identifies both the local nature and the Measure 50 limitation, that is almost certainly the correct answer.

How does this Transfer Of Title concept apply in real world practice?

A buyer purchases a home in Eugene, Oregon for $450,000, but the county assessor's records show a maximum assessed value (MAV) of only $280,000 due to Measure 50's long-term growth cap on a home that was purchased years ago at a much lower price. The buyer's first annual property tax bill will be based on the lower $280,000 MAV rather than the $450,000 purchase price, resulting in a significantly lower tax bill than the buyer might expect based on purchase price alone. However, if the buyer adds a major addition to the home, the improvement's value is added to the MAV at current market rates, potentially causing a notable increase in the assessed value going forward.

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Oregon property taxes are:

Correct Answer

B) Assessed locally with Measure 50 limits

Oregon property taxes are assessed locally with limits established by Measure 50.

Answer Options

Collected by the state

Assessed locally with Measure 50 limits

Not applicable

Collected federally

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Escrow

Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.

General Warranty Deed

A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.

Intestate Succession

Intestate succession is the legal process by which a deceased person's property is distributed according to state law when they die without a valid will. State statutes determine the order of inheritance.

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Oregon property taxes are:

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