Part 6/9:
The Role of Measures 5 and 50 in Tax Policy
Oregon's landmark measures—Measure 5 and Measure 50—aim to restrict how much property values can increase and determine how assessed values relate to actual market conditions. Measure 50, for instance, caps annual valuation increases at 3%, which initially protected assessments during ascending markets but now hampers accuracy during declines.
In the case of Big Pink, assessment values in 2019 were around $168 million—well below its market value—a disparity exacerbated by these caps. The recent sale at $45 million, the land value alone, indicates the market’s deep decline. Such distressed sales influence assessments across the city, leading to substantial reductions in tax revenue when evaluated under existing caps.