What will happen if real estate prices drop causing market values to fall below assessed values?
The real market value (RMV) on your tax statement represents the market value of the property as of January 1, 2008. This is the estimate of value the property would have sold for on that date. Market values in some areas have increased while in other areas the market has been flat or declining. The real estate market in the Portland Metro area has been more resilient than some other areas of Oregon and the rest of the nation. It is important to understand that your property taxes are based on your assessed value, not market value. In most cases assessed values are significantly lower than market values. A decline in the market value does not automatically reduce your Measure 50 assessed value unless real market value falls below your maximum assessed value.
The real market value (RMV) on your tax statement represents the market value of the property as of January 1, 2010. This is the estimate of value the property would have sold for on that date. It is important to understand that your property taxes are based on your assessed value, not market value. In most cases assessed values are significantly lower than market values. A decline in the market value does not automatically reduce your Measure 50 assessed value unless real market value falls below your maximum assessed value.
