Oregon 30-Hour Real Estate Law Practice Test

What is the calculation used to determine the maximum assessed property value?

1. Current market value multiplied by 105%

2. Previous year real market value multiplied by 103%

3. Current year maximum assessed value multiplied by 100%

4. Previous year maximum assessed value multiplied by 104%

The correct answer is: Previous year real market value multiplied by 103%

The calculation for determining the maximum assessed property value in Oregon is based on the concept of assessed value limits established by Measure 50. Under Measure 50, the maximum assessed value for a property is calculated using the previous year's real market value multiplied by a prescribed limit, which in this case is set at 103%. This approach means that each year, the assessed value can only increase by a maximum of 3% from the previous year's real market value, regardless of changes in the current market conditions or property improvements. This methodology is designed to provide stability and predictability in property taxation. The other options present different multipliers or values that do not align with the 3% increase rule set forth by Measure 50. Therefore, the selection of the previous year's real market value multiplied by 103% accurately reflects the guidelines for determining the maximum assessed property value in Oregon.