RECALCULATION AFFECTS CLATSOP PROPERTY VALUES, BUT HAS LITTLE TAX IMPACT

The recent arrival of property tax bills in the mail has generated questions to the Clatsop County Assessment and Taxation Department.

Some citizens are asking how the real market values of their homes and other properties listed on their tax statements have increased despite the weak real estate market.

Market values, as recorded by the county, have increased in some cases as a result of a recent recalculation conducted by the appraisal department using more up-to-date data called Cost Factor Books. The books are compiled by the Oregon Department of Revenue and provide detailed valuations based on cost studies for various features of structures, including square footage, cost of bathroom and kitchen components, and a number of other building components that differ for each property.

Prior to the recalculation, properties in the county have been calculated by four different versions of the Cost Factor Books going back as far as 1989. In 2010-2011 the Assessment and Taxation Department recalculated values for all residential properties in the county using the 2005 residential cost factor book, the latest version available. As a result, the market values for some properties were increased while others fell. The cost factor books, and the recalculation, cover only buildings and improvements, not land value.

The department further refined the values by statistically adjusting all values towards the prior year values based on the ratio report, which is the study of real sales in the county. This recalculation in itself only impacted real market values, not the maximum assessed values that limit tax increases due to Measure 50.

Earlier this year the department launched a comprehensive re-assessment program, the first in several years, aimed at conducting in-person appraisals of every property in the county and bringing all real market valuations up to date.

But even if a property’s real market value has increased, it likely will have no impact on the actual tax bill. Property taxes are based on assessed value, not real market value.

Ballot Measure 50, passed by Oregon voters in 1997, limited the increase in a property’s assessed value to 3 percent a year, with exceptions for significant remodeling or additions.

As property prices climbed in the early and mid-2000s, real market values rose faster than assessed values. According to the Oregon Department of Revenue, by 2008 real market values were 86 percent higher than assessed values on average. Today, despite the ongoing real estate slump and decline in prices, most properties’ real market values remain higher than their assessed values. Only if a property’s real market value falls below the assessed value will an owner see a decline in his or her tax bill.

Tax bills also vary from area to area, since Clatsop County has 60 different taxing districts, including schools, cities and water and fire districts. Bills also reflect any new taxes in the form of voter-approved levies or bonds.

Tax payments for 2011 are due on or before Tuesday, Nov. 15. For your convenience, make your payment using the envelope included in your tax bill. Other options include:

· Clatsop County Assessment and Taxation Office, 820 Exchange St., Suite 210, Astoria. Hours are 8:30 a.m. to 5 p.m.

· Local branches of Bank of Astoria, Clatsop Community Bank or Wauna Federal Credit Union.

· Online – go to “Pay Taxes Online” at www.co.clatsop.or.us for more information.

If you disagree with the value of your property as printed on your tax bill or a penalty assessed for late filing, you can file an appeal with the Clatsop County Board of Property Tax Appeals. Forms are available from the Clerk and Elections Division, 820 Exchange St. in Astoria and the Clatsop County website www.co.clatsop.or.us. Petitions must be filed by Jan. 3, 2012.

For more information, go to “Understanding Property Taxes” at www.co.clatsop.or.us.