Ever wonder why your neighbor’s Portland tax bill looks nothing like yours, even for similar homes? If you are buying or selling in Irvington, the way Oregon sets values and limits taxes can be confusing. You want a clear, local explanation that helps you plan your budget and make smart decisions. This educational overview breaks down how Real Market Value, Assessed Value, Measure 50’s growth cap, and “compression” actually work in Multnomah County so you can move forward confidently. Let’s dive in.
Oregon property tax basics
Oregon tracks two values for every property each year. The county sets both as of January 1 for the coming tax year. Your bill is based on Assessed Value, not what your home could sell for.
- Real Market Value (RMV) is the county’s estimate of what your property would sell for on the open market as of January 1.
- Assessed Value (AV) is the number used to calculate your taxes. AV is related to RMV but is limited by state law.
Your taxes are the tax rate multiplied by AV. Rates are shown as dollars per $1,000 of AV. Bills are typically mailed in the fall, with scheduled installment due dates. For exact dates and payment options, confirm with Multnomah County.
RMV vs. AV: what each means
RMV is market-based. It reflects comparable sales, location, and property characteristics as of January 1. RMV moves with the market.
AV is capped by law. Measure 50 created limits on how much AV can grow each year for most properties. This keeps tax increases steadier for long-time owners, even in hot markets.
When conditions require a reassessment, AV can move toward RMV. Without a reassessment trigger, AV changes are generally capped.
Measure 50 and the 3 percent cap
Measure 50 set the structure Oregon uses today. It fixed permanent tax rates for local governments and created a limit on AV growth.
How the cap works
For most properties without qualifying changes, AV cannot increase by more than a commonly described 3 percent per year. This cap generally applies year over year, even if RMV rises much faster. The cap controls tax growth for existing owners.
When AV can reset
A qualifying change in ownership, new construction, or major improvements commonly triggers reassessment. When that happens, AV is typically reset toward current RMV, then future increases are capped again from that new base. Specific exclusions and transfer rules exist under Oregon law, so timing and details matter.
What “compression” means on your bill
Compression is a required reduction that can apply when combined levies would otherwise exceed constitutional or statutory limits. In practice, it can lower the effective rate applied to your AV for a given year. Compression does not change your AV or the rules under Measure 50.
Think of it as a proportional adjustment the county applies to keep taxes within legal limits. It can make the listed rate on your bill appear lower, even when assessed values in the district have grown.
Triggers that change your taxes
Change in ownership
Buying a home in Irvington often triggers reassessment. If the seller’s AV was held down by years of capped growth, your AV may move toward current RMV after your purchase. That can increase the tax line in your monthly housing cost.
Timing ties to January 1. A closing that transfers ownership before January 1 can be reflected for that tax year. A closing after that date may affect the next tax year.
Renovations and new construction
Additions, major remodels, conversions that add living area, or other structural changes usually increase RMV. Those changes typically lead to an AV adjustment at the next assessment cycle.
Routine maintenance like painting, reroofing, or non-structural repairs generally does not trigger reassessment. If you are planning a project, confirm with the county how it could affect AV.
Assessor-initiated changes
Periodic reappraisals, correction of omitted property, or other assessor actions can change AV. These are less common but do occur.
Simple math to estimate taxes
The formula is straightforward: Taxes due = (Assessed Value / 1,000) × Total tax rate (dollars per $1,000 of AV). AV is the key number to use for your estimate.
Hypothetical example: existing owner
- AV today: $400,000. Total rate: $20 per $1,000 AV.
- Annual tax = (400,000 / 1,000) × $20 = $8,000.
- If AV increases by 3 percent next year, AV becomes $412,000. Tax would be (412 × $20) = $8,240, an increase of $240.
Hypothetical example: after a purchase
- Seller’s AV: $400,000. Market at sale (RMV): $600,000.
- After purchase, AV resets toward RMV for the new tax year. If AV resets to $600,000 and the rate is $20 per $1,000 AV, tax would be (600 × $20) = $12,000.
- After that year, capped growth rules generally apply again, unless another qualifying change occurs.
Use these as templates. Substitute the current AV or a potential reset AV and the current local rate to estimate your own outcome. For exact numbers, contact Multnomah County Assessment and Taxation or consult their tax tools.
Irvington-specific tips for buyers
Irvington has many older homes and historic properties. Restoration and additions are common, which can affect future taxable value.
- Ask for the seller’s most recent tax bill and assessment history. Review RMV and AV for context.
- Compare the sale price to the seller’s current AV. A wide gap suggests a potential jump for your first bill after reassessment.
- If you plan a remodel, budget for a possible AV increase once work is complete. Confirm which projects may trigger reassessment before you start.
Irvington-specific tips for sellers
Buyers factor taxes into affordability. Being proactive can support smoother negotiations.
- Share recent tax bills and the property’s AV/RMV history during disclosures.
- If you are considering major improvements before listing, discuss the timing with a tax professional. Some projects can influence reassessment timing and buyer expectations.
- Set pricing and communication with the likely post-sale tax picture in mind. Clear information builds trust with buyers who are new to Measure 50 rules.
Portland levies, bonds, and urban renewal
Your total tax rate includes permanent rates and voter-approved bonds from local districts. These can change over time and vary by location.
Some parts of Portland fall within urban renewal or Tax Increment Financing areas. In those districts, increases in assessed value can be allocated differently among taxing bodies. If you are evaluating a specific property, review the city’s maps and confirm details with the county.
Key timelines in Multnomah County
- January 1 is the assessment date for values and ownership status for the tax year.
- The county typically mails tax bills in the fall with scheduled installment options.
- If your closing occurs near year-end, ask your escrow officer and the county how timing will affect your first bill.
Action steps before you buy or list
- Review the property’s AV and RMV history through the county.
- Estimate taxes using the formula with the current AV or a potential reset AV.
- If planning a remodel, confirm whether your project could trigger reassessment.
- Ask about any exemptions or special situations that may apply to the property.
- For precise guidance, contact the Multnomah County Assessor or an Oregon tax professional.
Ready to make a move in Irvington with clear numbers and a solid plan? Schedule a free market consultation with Devin Arthurs for straightforward, owner-led guidance backed by modern tools and local experience.
FAQs
When does a purchase show up on my Multnomah County tax bill?
- Ownership changes are tied to the January 1 assessment date. A closing before January 1 can be reflected for that tax year, while a closing after may affect the next tax year. Confirm exact timing with the county.
Does a sale reset my Assessed Value to the sale price in Portland?
- Not automatically. A qualifying ownership change typically triggers reassessment to current Real Market Value, which may be similar to the sale price. The new AV then becomes the base for capped growth.
Do small remodels on an Irvington home increase taxes?
- Routine maintenance like paint or a roof replacement usually does not. Structural additions, major remodels, or conversions that add living area commonly trigger reassessment and can increase AV.
Can my Assessed Value go down if the market cools?
- AV generally does not drop automatically with market declines. Reductions can occur through assessor action or specific processes. Contact the assessor for review or appeal options.
How do I estimate my future property taxes in Multnomah County?
- Use the formula: (AV / 1,000) × total rate. Try scenarios using current AV or a potential reset AV if a purchase or improvement is involved. For precise figures, consult the county’s tools or staff.
Where can I find authoritative property numbers for a home in Irvington?
- Check the Multnomah County Assessor’s property records for AV, RMV, and history. For definitions and rules, refer to Oregon Department of Revenue resources and the Oregon Revised Statutes.
