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WHAT WILL A BOND COST?
October 11, 2018
How will a new bond measure affect my taxes? As the Assessor & Tax Collector for Wasco County I’ve been receiving many questions. Oregon’s property tax system has several moving pieces that can affect the rate of North Wasco County School District’s proposed bond or any other new bond.
What will I pay?
A rate is not requested for the bond; instead the amount sufficient to pay principal and interest for the bonded debt in the upcoming year is requested.
Annual Repayment Request / Assessed Value = Bond Levy Rate
There is no guarantee or control in place for what this rate will be. The impact of this methodology is that the amount you will pay for a bond is variable and cannot be guaranteed. It will change as a result of changes in the economy, housing market, interest rate, bond market and many other factors.
Growth Rate in Property Taxes
Is there a guaranteed 3% growth in tax revenue annually? Measure 50 has a 3% growth limitation, minus changes to the property. However, when the recession hit Wasco County a few years ago, nearly one quarter of tax accounts had their real market value drop below their maximum assessed value resulting in no 3% increase. Taxes are calculated on the lower of the two. Why is this important to understand? If the assessed values drop it will take a higher bond levy rate to repay the annual bond.
Isn’t there a cap on how much property tax I can pay?
Yes, Measure 5 capped the categories of general government at $10 and education at $5. However, newly issued bonds are not covered under this limitation. If a property’s tax calculation for education caps at $5, you would pay the bond levy in addition to the $5 cap.
Calculating my share of the proposed new bond
If you are using the tax calculator on the website northwascobond.org, take notice if you are in a tax code area that already pays the current D12 Bond, the calculator only shows the additional new amount. To understand the full tax burden you will need to add the amount you currently pay to the calculator amount to come up with the full amount you will pay for the new bond.
The Department of Assessment & Tax is dedicated to helping the community navigate the complexities of Oregon’s Property Tax system. The Department of Revenue is also a good resource for additional questions you may have.