Part 4/9:
The sale of Big Pink significantly reduced the city’s potential property tax revenue from this building—by approximately 68%. Previously, in 2024, the city would have collected about $2.7 million annually from this property, but after the sale, the figure dropped to less than $900,000. This dramatic decrease exemplifies tax compression, where declining market values and discounted sales pull down assessed values and, consequently, tax collections.
Because property taxes account for about 50% of Portland’s city revenue, such dramatic reductions threaten the city's budget for essential services, infrastructure, and public safety. Municipal officials are now beginning to recognize the importance of understanding how distressed sales impact their revenue streams.