Detail, east Portland photo, courtesy Miles Hochstein / Portland Ground.



For old times' sake
The bojack bumper sticker -- only $1.50!

To order, click here.







Excellent tunes -- free! And on your browser right now. Just click on Radio Bojack!






E-mail us here.

About

This page contains a single entry from the blog posted on January 16, 2013 10:02 AM. The previous post in this blog was In Lake O., a "palace coup". The next post in this blog is Chip Kelly's gone, after all!. Many more can be found on the main index page or by looking through the archives.

Archives

Links

Law and Taxation
How Appealing
TaxProf Blog
Mauled Again
Tax Appellate Blog
A Taxing Matter
TaxVox
Tax.com
Josh Marquis
Native America, Discovered and Conquered
The Yin Blog
Ernie the Attorney
Conglomerate
Above the Law
The Volokh Conspiracy
Going Concern
Bag and Baggage
Wealth Strategies Journal
Jim Hamilton's World of Securities Regulation
myCorporateResource.com
World of Work
The Faculty Lounge
Lowering the Bar
OrCon Law

Hap'nin' Guys
Tony Pierce
Parkway Rest Stop
Utterly Boring.com
Along the Gradyent
Dwight Jaynes
Bob Borden
Dingleberry Gazette
The Red Electric
Iced Borscht
Jeremy Blachman
Dean's Rhetorical Flourish
Straight White Guy
HinesSight
Onfocus
Jalpuna
Beerdrinker.org
As Time Goes By
Dave Wagner
Jeff Selis
Alas, a Blog
Scott Hendison
Sansego
The View Through the Windshield
Appliance Blog
The Bleat

Hap'nin' Gals
My Whim is Law
Lelo in Nopo
Attorney at Large
Linda Kruschke
The Non-Consumer Advocate
10 Steps to Finding Your Happy Place
A Pig of Success
Attorney at Large
Margaret and Helen
Kimberlee Jaynes
Cornelia Seigneur
Mireio
And Sew It Goes
Mile 73
Rainy Day Thoughts
That Black Girl
Posie Gets Cozy
{AE}
Cat Eyes
Rhi in Pink
Althouse
GirlHacker
Ragwaters, Bitters, and Blue Ruin
Frytopia
Rose City Journal
Type Like the Wind

Portland and Oregon
Isaac Laquedem
StumptownBlogger
Rantings of a [Censored] Bus Driver
Jeff Mapes
Vintage Portland
The Portlander
South Waterfront
Amanda Fritz
O City Hall Reporters
Guilty Carnivore
Old Town by Larry Norton
The Alaunt
Bend Blogs
Lost Oregon
Cafe Unknown
Tin Zeroes
David's Oregon Picayune
Mark Nelsen's Weather Blog
Travel Oregon Blog
Portland Daily Photo
Portland Building Ads
Portland Food and Drink.com
Dave Knows Portland
Idaho's Portugal
Alameda Old House History
MLK in Motion
LoveSalem

Retired from Blogging
Various Observations...
The Daily E-Mail
Saving James
Portland Freelancer
Furious Nads (b!X)
Izzle Pfaff
The Grich
Kevin Allman
AboutItAll - Oregon
Lost in the Details
Worldwide Pablo
Tales from the Stump
Whitman Boys
Misterblue
Two Pennies
This Stony Planet
1221 SW 4th
Twisty
I am a Fish
Here Today
What If...?
Superinky Fixations
Pinktalk
Mellow-Drama
The Rural Bus Route
Another Blogger
Mikeyman's Computer Treehouse
Rosenblog
Portland Housing Blog

Wonderfully Wacky
Dave Barry
Borowitz Report
Blort
Stuff White People Like
Worst of the Web

Valuable Time-Wasters
My Gallery of Jacks
Litterbox, On the Prowl
Litterbox, Bag of Bones
Litterbox, Scratch
Maukie
Ride That Donkey
Singin' Horses
Rally Monkey
Simon Swears
Strong Bad's E-mail

Oregon News
KGW-TV
The Oregonian
Portland Tribune
KOIN
Willamette Week
KATU
The Sentinel
Southeast Examiner
Northwest Examiner
Sellwood Bee
Mid-County Memo
Vancouver Voice
Eugene Register-Guard
OPB
Topix.net - Portland
Salem Statesman-Journal
Oregon Capitol News
Portland Business Journal
Daily Journal of Commerce
Oregon Business
KPTV
Portland Info Net
McMinnville News Register
Lake Oswego Review
The Daily Astorian
Bend Bulletin
Corvallis Gazette-Times
Roseburg News-Review
Medford Mail-Tribune
Ashland Daily Tidings
Newport News-Times
Albany Democrat-Herald
The Eugene Weekly
Portland IndyMedia
The Columbian

Music-Related
The Beatles
Bruce Springsteen
Seal
Sting
Joni Mitchell
Ella Fitzgerald
Steve Earle
Joe Ely
Stevie Wonder
Lou Rawls

E-mail, Feeds, 'n' Stuff

Wednesday, January 16, 2013

Portland wants "welcome, stranger" rule for property tax

One of the items on the City of Portland's crowded wish list from state government is a change to the property tax limitations in the state constitution. Portland wants to shift to a system more like California's, in which the tax limitations fall away when a new buyer acquires a piece of property:

A constitutional amendment to reset assessed values to real market values at the time a property is sold will establish a process to correct significant inequities in tax bills between similarly valued properties while restoring lost revenues to vital public services like schools and public safety. The Legislative Revenue Office estimates that if voters approve a measure to reset assessed value to real market value at sale, local property tax revenues would increase by approximately $92 million statewide in the first year and by $1.1 billion in the tenth year.

No doubt other money-hungry local governments in Oregon feel the same way as Portland. But as we understand it, they'd have to get a vote of the people to pass such a proposal. Do you think it has any chance? If Don McIntire were still around, we'd say surely no, but Don's gone.

We're having trouble seeing how "welcome, stranger" would "correct significant inequities in tax bills between similarly valued properties." Wouldn't they make those problems much worse? Newcomers will pay far greater taxes than old-timers owning identical houses.

Comments (19)

What happens when real market value drops below the previous assessed value?

No question that government will "find a fix" for that "problem"...by restricting the drop in taxable value. I'd have problem with resetting, as long as if the property value plummets, so do the taxes.

If you're talking about resetting on sale, I'm sure the city'd be fine with having "welcome, stranger" work both ways. If you're talking about resetting annually, that's repealing Measure 5, which the city is not overtly advocating at the moment.

This is the first of two-part plan. First get property taxes higher for new buyers. Then when they scream and shout unfair, unfair - go to part two and enact "fairness" where everyone pays more.

Resetting property taxes on a sale, means many people will not be able to afford to move. Much like in a New York rent controlled apartment.

If you have to sell, you will move out of state. Say to somewhere with lower taxes, better schools and fewer crackpots in government.

Thanks
JK

This is another socialist type movement to kill the American dream of owning a home. It is more of a money grab by government than an attempt to equalize property taxes. If this passes, how much of the raided revenue will be used for more social engineering programs, for subsides handed out to fat cat developers to construct more ugly bunkers and for rent assistance since more people will be renting homes from sleazy landlords than owning them? It is highly likely Sammyboy had his slimy fingers all over this part of the City's lobby agenda.

Portland's new city motto: "Making housing unaffordable"

I'd support a compromise. Statewide, the average property owner is taxed at an assessed value that is 74% of the real market value. How about we reset on sale to raise the taxable assessed value of the property to the state average, as a floor. (If the property is already assessed at over 74% of sale price, no reset.)

This would be less of a drastic shift to new property owners, make change more gradual, and would more gradually bring property assessments closer to (but never all the way up to) market values. It would also be hard for the buyers to say it's unfair, since they'd be paying based on what the average property owner does.

The Tribune's article, and color-coded map from Tualatin Valley Fire and Rescue does a good job of explanation if you didn't catch it yet.
http://portlandtribune.com/pt/9-news/126280-similar-properties-unequal-taxes


Sarah Carlin Ames

This is just another desperate money grab by a local government looking for more revenue.

Does anyone have a link directly to the map Ms. Ames and Tribune reference? I am not seeing it in the article nor google search.

Right now, homes with low property taxes under the current system sell for more than homes with relatively high property taxes. That makes sense because buyers shop for homes based on their projected monthly payments, which includes taxes, not on sales price alone. The difference between a home with an $1800/year property tax bill and a home with a $4800/year property tax bill is $250/month, which translates into at least a $75,000 premium for the lower-taxed property right now. If the law passes, all those premiums will go away in large part, so in that sense, existing homeowners will bear the brunt of the tax increase, not newcomers to the market.

Anyway they can think of collecting more money from people!

Is the city waiting for the old-timers to fade away and then? What if the "welcome stranger" collection backfires, as new ones won't be coming in willing to pay or
”bail out” for the financial problems created by the Portland agenda?
Then what? . . . blocks of homes sitting empty because few can afford the taxes. . .tear them down and fill the city with more apartment bunkers, put people into worksforce and subsidized housing because people cannot afford single family homes?

If this passes, tension will be set up between neighbors, where the old-timers pay less and new ones pay enormous taxes, but what do these "collectors" care? This may be another plan on the list of destabilizing the old neighborhoods. This seems to be what is happening, taking the schools that are anchors out of neighborhoods by eliminating them or changing boundaries, putting apartment bunkers without parking into neighborhoods, intolerable infill and congestion, less garbage pickup and . . .

I wonder what role if any the the Office of Equity might have in this?

"...tension will be set up between neighbors, where the old-timers pay less and new ones pay enormous taxes.."

Due to Prop. 13 in California, my in-laws who bought their house in 1963 and stayed put, paid $100 a year in property taxes, while the people next door to them who bought their home in the 1980s paid more than $6,000. Same style house, same neighborhood...

My inner east side home is currently taxed at about 1% of "real market value". According to my tax bill, assessed value is less than 50% of "real market value". Homes in Seattle are taxed at approximately 1% of real market value. Washington state has no state income tax.

Why should Oregon, with the highest state income tax in the country, also have property taxes that are more than twice what a neighbor state's are, a state that has no income tax?

Property tax inequities are fierce. When I lived in North Portland a little over a decade now, I conducted my own "research," and found enormous disparities between houses of similar or dissimilar value. Mine happened to be relatively lower value but certifiably much higher tax assessment, which was infuriating.

That said: the only thing I am sure about regarding any property tax realignments is that they will not be revenue neutral. Which is probably the only thing sticking equally in everyone's craw.

I have three answers for this question -

NO!
NO!
And Flipping NO!

Gads, and y'all keep voting these pinheads into office - sheesh.

I've suggested this one before. The most equitable way to set property tax values is for the owner of the property to set the value as of a specific date - such as January 1st. The owner can set the value to any amount, but would be required to sell the property at for the amount set.

The owner would set the value high if they wanted to keep the property in hopes that nobody would buy their property or low if they wanted to sell the property.

People would have all year to seek properties they would like to buy, then if the value is right on January 1st they buy the property.

I currently pay $2000 more in tax than neighbors on the same street. I don't now exactly how to fix the property tax system in Portland, but the current system is very inequitable and Measure 5 is the reason.

And for those who can't pay attention very long, I'll repeat: The city's proposed change would make matters worse.

Man, I pay $5K right now and if this was the case the new owner would have to pay at least 75% more, something approaching $9K! That would be nuts! (and I think my taxes are already nuts because when I bought this place in '06 they were $2800... and then I was "re-assessed").

Property tax limits are out the window anyway if you so much as add an electrical circuit because they can use that as an excuse to "re-assess". And they wonder why people don't pull permits!


Sponsors


As a lawyer/blogger, I get
to be a member of:

In Vino Veritas

Chloe, Pinot Grigio, Valdadige 2013
Edmunds St. John, Bone-Jolly Gamay Noir 2013
Kirkland, Pinot Grigio, Friuli 2013
St. Francis, Red Splash 2011
Rodney Strong, Canernet, Alexander Valley 2011
Erath, Pinot Blanc 2013
Taylor Fladgate, Porto 2007
Portuga, Rose 2013
Domaine Digioia-Royer, Chambolle-Musigny, Vielles Vignes Les Premieres 2008
Locations, F Red Blend
El Perro Verde, Rueda 2013
Chateau Ste. Michelle, Indian Wells Red 2
If You See Kay, Red 2011
Turnbull, Old Bull Red 2010
Cherry Tart, Cherry Pie Pinot Noir 2012
Trader Joe's Grand Reserve Cabernet, Oakville 2012
Benton Lane, Pinot Gris 2012
Campo Viejo, Rioja, Reserva 2008
Haden Fig, Pinot Noir 2012
Pendulum Red 2011
Vina Real, Plata, Crianza Rioja 2009
Edmunds St. John, Bone/Jolly, Gamay Noir Rose 2013
Bookwalter, Subplot No. 26
Ayna, Tempranillo 2011
Pete's Mountain, Pinot Noir, Haley's Block 2010
Apaltagua, Reserva Camenere 2012
Lugana, San Benedetto 2012
Argyle Brut 2007
Wildewood Pinot Gris 2012
Anciano, Tempranillo Reserva 2007
Santa Rita, Reserva Cabernet 2009
Casone, Toscana 2008
Fonseca Porto, Bin No. 27
Louis Jadot, Pouilly-Fuissé 2011
Trader Joe's, Grower's Reserve Pinot Noir 2012
Zenato, Lugana San Benedetto 2012
Vintjs, Cabernet 2010
14 Hands, Hot to Trot White 2012
Rainstorm, Oregon Pinot Gris 2012
Silver Palm, North Coast Cabernet 2011
Andrew Rich, Gewurtztraminer 2008
Rodney Strong, Charlotte's Home Sauvignon Blanc 2012
Canoe Ridge, Pinot Gris, Expedition 2012
Edmunds St. John, Bone-Jolly Gamay Noir Rose 2012
Dark Horse, Big Red Blend No. 01A
Elk Cove, Pinot Noir Rose 2012
Fletcher, Shiraz 2010
Picollo, Gavi 2011
Domaine Eugene Carrel, Jongieux 2012
Eyrie, Pinot Blanc 2010
Atticus, Pinot Noir 2010
Walter Scott, Pinot Noir, Holstein 2011
Shingleback, Cabernet, Davey Estate 2010
Coppola, Sofia Rose 2012
Joel Gott, 851 Cabernet 2010
Pol Roget Reserve Sparkling Wine
Mount Eden Chardonnay, Santa Cruz Mountains 2009
Rombauer Chardonnay, Napa Valley 2011
Beringer, Chardonnay, Napa Reserve 2011
Kim Crawford, Sauvignon Blanc 2011
Schloss Vollrads, Spaetlese Rheingau 2010
Belle Glos, Pinot Noir, Clark & Telephone 2010
WillaKenzie, Pinot Noir, Estate Cuvee 2010
Blackbird Vineyards, Arise, Red 2010
Chauteau de Beaucastel, Chateauneuf-du-Pape 2005
Northstar, Merlot 2008
Feather, Cabernet 2007
Silver Oak, Cabernet, Alexander Valley 2002
Silver Oak, Cabernet, Napa Valley 2002
Trader Joe's, Chardonnay, Grower's Reserve 2012
Silver Palm, Cabernet, North Coast 2010
Shingleback, Cabernet, Davey Estate 2010
E. Guigal, Cotes du Rhone 2009
Santa Margherita, Pinot Grigio 2011
Alamos, Cabernet 2011
Cousino Macul, Cabernet, Anitguas Reservas 2009
Dreaming Tree Cabernet 2010
1967, Toscana 2009
Charamba, Douro 2008
Horse Heaven Hills, Cabernet 2010
Lorelle, Horse Heaven Hills Pinot Grigio 2011
Avignonesi, Montepulciano 2004
Lorelle, Willamette Valley Pinot Noir 2011
Villa Antinori, Toscana 2007
Mercedes Eguren, Cabernet Sauvignon 2009
Lorelle, Columbia Valley Cabernet 2011
Purple Moon, Merlot 2011
Purple Moon, Chardonnnay 2011
Horse Heaven Hills, Cabernet 2010
Lorelle, Horse Heaven Hills Pinot Grigio 2011
Avignonesi, Montepulciano 2004
Lorelle, Willamette Valley Pinot Noir 2011
Villa Antinori, Toscana 2007
Mercedes Eguren, Cabernet Sauvignon 2009
Lorelle, Columbia Valley Cabernet 2011
Purple Moon, Merlot 2011
Purple Moon, Chardonnnay 2011
Abacela, Vintner's Blend No. 12
Opula Red Blend 2010
Liberte, Pinot Noir 2010
Chateau Ste. Michelle, Indian Wells Red Blend 2010
Woodbridge, Chardonnay 2011
King Estate, Pinot Noir 2011
Famille Perrin, Cotes du Rhone Villages 2010
Columbia Crest, Les Chevaux Red 2010
14 Hands, Hot to Trot White Blend

The Occasional Book

Saul Bellow - Mister Sammler's Planet
Phil Stanford - White House Call Girl
John Kaplan & Jon R. Waltz - The Trial of Jack Ruby
Kent Haruf - Eventide
David Halberstam - Summer of '49
Norman Mailer - The Naked and the Dead
Maria Dermoȗt - The Ten Thousand Things
William Faulkner - As I Lay Dying
Markus Zusak - The Book Thief
Christopher Buckley - Thank You for Smoking
William Shakespeare - Othello
Joseph Conrad - Heart of Darkness
Bill Bryson - A Short History of Nearly Everything
Cheryl Strayed - Tiny Beautiful Things
Sara Varon - Bake Sale
Stephen King - 11/22/63
Paul Goldstein - Errors and Omissions
Mark Twain - A Connecticut Yankee in King Arthur's Court
Steve Martin - Born Standing Up: A Comic's Life
Beverly Cleary - A Girl from Yamhill, a Memoir
Kent Haruf - Plainsong
Hope Larson - A Wrinkle in Time, the Graphic Novel
Rudyard Kipling - Kim
Peter Ames Carlin - Bruce
Fran Cannon Slayton - When the Whistle Blows
Neil Young - Waging Heavy Peace
Mark Bego - Aretha Franklin, the Queen of Soul (2012 ed.)
Jenny Lawson - Let's Pretend This Never Happened
J.D. Salinger - Franny and Zooey
Charles Dickens - A Christmas Carol
Timothy Egan - The Big Burn
Deborah Eisenberg - Transactions in a Foreign Currency
Kurt Vonnegut Jr. - Slaughterhouse Five
Kathryn Lance - Pandora's Genes
Cheryl Strayed - Wild
Fyodor Dostoyevsky - The Brothers Karamazov
Jack London - The House of Pride, and Other Tales of Hawaii
Jack Walker - The Extraordinary Rendition of Vincent Dellamaria
Colum McCann - Let the Great World Spin
Niccolò Machiavelli - The Prince
Harper Lee - To Kill a Mockingbird
Emma McLaughlin & Nicola Kraus - The Nanny Diaries
Brian Selznick - The Invention of Hugo Cabret
Sharon Creech - Walk Two Moons
Keith Richards - Life
F. Sionil Jose - Dusk
Natalie Babbitt - Tuck Everlasting
Justin Halpern - S#*t My Dad Says
Mark Herrmann - The Curmudgeon's Guide to Practicing Law
Barry Glassner - The Gospel of Food
Phil Stanford - The Peyton-Allan Files
Jesse Katz - The Opposite Field
Evelyn Waugh - Brideshead Revisited
J.K. Rowling - Harry Potter and the Sorcerer's Stone
David Sedaris - Holidays on Ice
Donald Miller - A Million Miles in a Thousand Years
Mitch Albom - Have a Little Faith
C.S. Lewis - The Magician's Nephew
F. Scott Fitzgerald - The Great Gatsby
William Shakespeare - A Midsummer Night's Dream
Ivan Doig - Bucking the Sun
Penda Diakité - I Lost My Tooth in Africa
Grace Lin - The Year of the Rat
Oscar Hijuelos - Mr. Ives' Christmas
Madeline L'Engle - A Wrinkle in Time
Steven Hart - The Last Three Miles
David Sedaris - Me Talk Pretty One Day
Karen Armstrong - The Spiral Staircase
Charles Larson - The Portland Murders
Adrian Wojnarowski - The Miracle of St. Anthony
William H. Colby - Long Goodbye
Steven D. Stark - Meet the Beatles
Phil Stanford - Portland Confidential
Rick Moody - Garden State
Jonathan Schwartz - All in Good Time
David Sedaris - Dress Your Family in Corduroy and Denim
Anthony Holden - Big Deal
Robert J. Spitzer - The Spirit of Leadership
James McManus - Positively Fifth Street
Jeff Noon - Vurt

Road Work

Miles run year to date: 372
At this date last year: 234
Total run in 2013: 257
In 2012: 129
In 2011: 113
In 2010: 125
In 2009: 67
In 2008: 28
In 2007: 113
In 2006: 100
In 2005: 149
In 2004: 204
In 2003: 269


Clicky Web Analytics