Oregon voters approved two constitutional amendments—Measure 5 and Measure 50—that continue to shape how property taxes are calculated and limited across the state. Here’s a breakdown of what each measure does and how it impacts your property taxes.
Measure 5, passed in 1990, places limits on how much property tax can be collected from each property, based on its Real Market Value (RMV). These limits are split into two categories:
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Education taxes: Limited to $5 per $1,000 of RMV
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General government taxes: Limited to $10 per $1,000 of RMV
That means a property valued at $200,000 can be taxed up to $1,000 for education and $2,000 for general government, regardless of the assessed value.
If the taxes in either category exceed the limit, they are “compressed” (reduced) to meet the cap. Compression occurs in the following order:
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Local option levies are reduced first.
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If the cap still isn’t met, other taxes in that category are proportionally reduced.
Note: Taxes that fund general obligation bonds are typically not subject to Measure 5 limits.
Approved in 1997, Measure 50 fundamentally changed how property values are assessed for taxation. It introduced a new value system:
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Maximum Assessed Value (MAV): For 1997–98, properties were reassessed to 90% of their 1995–96 value. This became the starting MAV.
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MAV can increase by no more than 3% per year, except under certain conditions (like new construction or remodeling).
Each year, your property’s Assessed Value (AV) is the lower of:
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The Real Market Value (RMV), or
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The Maximum Assessed Value (MAV)
This ensures property tax increases are gradual and predictable, protecting homeowners from dramatic spikes—unless significant changes are made to the property or the market shifts substantially.
Exceptions to the 3% cap that can cause AV to rise faster include:
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New construction or major remodeling
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Property rezoning
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Creation of new lots or subdivisions
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When RMV is lower than MAV and the market begins to rebound
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Established permanent tax rates for all local taxing districts that had existing tax bases or serial levies.
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Local option levies for temporary additional services and bond measures for capital improvements can still be passed by voters.
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These are outside the permanent tax rate but must be approved in a general election or in an election with at least 50% voter turnout (known as the “double majority” rule).
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| Measure | Focus | Key Limits |
|---|---|---|
| Measure 5 | Limits taxes by RMV | $5 per $1,000 RMV (Education) $10 per $1,000 RMV (General Government) |
| Measure 50 | Limits value growth | MAV increases capped at 3%/year AV = lower of RMV or MAV |
Both measures work together to manage property taxes in Oregon—ensuring stability, limiting rapid increases, and requiring voter approval for most new revenue sources.