Measure 5 Tax Limitation

The Oregon Constitution sets limits on the amount of property taxes that can be collected from each property tax account. These limits are often called the "Measure 5 limits."

To calculate these limits, taxes are divided into categories described in the constitution. The categories are:

  • education
  • general government

 

Some taxes, usually for general obligation bonds, are not subject to limitation.

The limits are $5 per $1,000 of real market value (RMV) for education taxes and $10 per $1,000 of RMV for general government taxes.

If taxes in either category exceed the limit for that property, the taxes are reduced or "compressed" until the limit is reached.

Local option taxes are compressed first. If the local option tax is compressed to zero, and the limit still hasn't been reached, the other taxes in the category are proportionally reduced.

Please note that these limits are based on the RMV of the property, not the "taxable assessed value."