Oregon’s current property tax system is limited by two measures passed in the 1990s: Measures 5 and 50. These aimed to reduce taxes and make them more predictable, but they’ve also limited how much local governments can raise revenue.

The Impact on Local Budgets

• Reduced Funding: Measures 5 and 50 significantly reduced property tax revenue for cities and counties. This makes it harder to fund essential services, including law enforcement.
• Limited Ability to Raise Funds: Permanent tax rates and limitations on assessed value growth restrict how much local governments can raise property taxes, even if voters approve. This can make it difficult to keep pace with rising costs like salaries and benefits.

The Recent Levy Rejection

Voters recently rejected a levy for law enforcement. This likely reflects concerns about:

• Increased Taxes: People may be hesitant to raise their own taxes, especially when they feel stretched financially.
• Unsure Outcomes: Levy proposals may not clearly explain how the additional funds would be used.

The Importance of Local Control

While Measures 5 and 50 offered some benefits, they’ve also limited the ability of local communities to address their specific needs.

Looking Ahead

There are ongoing discussions about how to reform Oregon’s property tax system to balance limitations with the ability for local governments to raise revenue they need.

Key Points to Remember:

• The recent levy rejection likely reflects concerns about affordability and the specific use of funds.
• Measures 5 and 50 have limited local government’s ability to raise property taxes, making it harder to fund essential services.
• Discussions about reforming the property tax system are ongoing.

The recent levy rejection has significant implications for Curry County. The Board of Commissioner’s Budget Committee Meeting following the vote outlined budget cutbacks, including reductions in civil and criminal patrols and other detailed reductions. State funds, roll-over funds and special project funds will be used to offset the shortfall. The meeting highlights the challenges local governments face under Oregon’s property tax system.

To learn more about Measures 5 and 50 and their impact, review an FAQ offered by the League of Oregon Cities.