Are you paying too much property tax?

This is the time of year that most of our clients receive their property tax statements. These statements will show a “Maximum Assessed Value” (“MAV”) and a “Real Market Value” (“RMV”). Oregon taxpayers pay real property taxes based on the lower of MAV or RMV. The MAV number is typically 3% more than MAV for the prior year, unless the taxpayer made improvements to the property. RMV is the value that the assessor estimates that the property would sell for on the open market. The assessors don’t usually look at each individual property to determine RMV – instead, they may group similar properties and apply a trending ratio to all of those properties. So, what the assessor estimates the RMV on your property is may not be what it would actually sell for. It has been our experience that our clients often have a more realistic idea of what their property is worth. If the real RMV listed on a taxpayer’s tax statement is below the number on the tax statement and MAV, then it may be worthwhile to appeal the value of that property and get a tax refund.

Depending on the type of property, a taxpayer would either appeal to the Magistrate Division of the Oregon Tax Court or to their local board of tax appeals. The deadline to appeal the value of most properties is December 31st. If you’d like to appeal, it is very important to start gathering documents early. Please let us know if you have any questions or if there is anything we can do to assist with an appeal!