There is no effect on the taxable value as a result of solely changing the land use designation of a property. For private property, the taxable value is equal to the property’s ‘assessed value,’ which is, by law, lower than the market value of the property. Unless the property redevelops or changes use, Oregon state law limits the increase in a property’s assessed value to 3% per year, and it cannot exceed the property’s real market value. It is normal for the market value of a property to fluctuate year-to-year and this does not trigger a recalculation of the Assessed Value.
If a property were brought into the UGB it is likely that its market value would change, but this alone would not change the tax rate or the assessed value. However, if property is brought into the UGB and then the use of that property changes to be consistent with the new zoning then the assessed value would be recalculated. If the rezone occurs, but no new development occurs that shows use is consistent with the new zoning, then the billed taxes proceed as normal. If a property is annexed into the City limits, the tax rate applied to the taxable value will increase, and the overall tax burden will increase accordingly. See the property owner matrix for more information.