Comparative Tax Rates (largest tax district in each City)

1. Starting a new city from scratch is a different operation than that of an existing city. Like a new business, the City has many start-up costs that must be dealt with during the initial years. Items such as a computer network system, telephone system, office furniture, website development, office space, council chambers, audio/video recording system, intergovernmental agreements, contracts, associated legal expenses and many others must be purchased.
2. To deal with the many programs and start-up and ongoing issues facing the City, the City has hired staff to include: City Manager, City Recorder, Asst. City Manager/Finance Director, Community Development Director, Public Works Director and 11 support staff.
3. The City has in place an enhanced law enforcement program through Clackamas County Sheriff's Office. The level of service has been significantly increased to address citizen concerns with safety.
4. The City is required to develop a Comprehensive Plan, an accompanying zoning ordinance, and provide for municipal services. The process is complex and time consuming. The plan must meet state land use goals that include comprehensive public involvement. The City has been diligently working on plans to provide various municipal services and on the Comprehensive Plan to meet the deadlines.
5. City roads have been inventoried, evaluated for repairs and prioritized. Dedicated State Gas Tax has been secured. Dozens of streets have been resurfaced; a street sweeping/culvert cleaning program has been implemented. The Anderson Road construction project and other future road projects are on hold due to the voter decision to not authorize the City to collect certain franchise fees.
6. Acquiring other revenue resources (state revenue sharing, franchise fees, grants and traffic fines).  In the start-up months the City's revenue came almost 100% from property taxes. Due to the effort of the City Council, staff and City partners, property taxes now account for 28% of the total budgeted revenue.
    

1. The home owner makes a significant improvement to their property that increases the value of the existing improvements i.e. an addition to the home, in-ground swimming pool, building a shop or building a house on unimproved property.  Any of these actions that result in an improvement of over $10,000 will add to your assessed value.
2. Voters approve a local option levy.  Local option levies are typically for the provision of services (police, fire etc.)  Local option levies last for up to five years.  Renewal of the local option levy requires voter approval.
3. Voters approve a bond to build something i.e. a school, zoo structures, a fire station, buy equipment such as fire engines.
4. Voters approve formation of a new service district.  Most recently in Clackamas County voters approved a library district for most of Clackamas County (Damascus City Council made the decision not to include Damascus at this time).  Property owners in this new district will see an increase in the tax rate they pay of $.39/$1,000 of assessed value.
5. The property owner takes action on the zoning of their property.  Example #1: A property owner owns 2 acres of land with a home on it that is zoned RA1 (rural agriculture one acre minimums).  The owner decides to divide the property to give their parents a place to build a home.  The assessed value on the home and one acre would be assessed slightly lower and the new one acre property would be assessed a value similar to other one acre lots in the area.  The total assessed value of both properties would be higher resulting in increased property taxes.
6. The city re-zones a property AND the property owner moves forward with doing something with their property.  It’s the same as the previous scenario.  Nothing changes until the property owner does something different to their property.
7. Most if not all taxing entities (county, cities and special districts) in the area are levying their maximum allowed tax rate except for City of Damascus.  At the incorporation election in November 2004, voters approved a maximum tax rate of $3.88/$1,000.  Since incorporation City Council has levied $3.30/$1,000.  If and when the city moves forward with other service provisions the City Council has the option to levy an additional $.58/$1,000.

1.  Annually, assessed values may be increased by 3%;
2. The property owner makes a major improvement ($10,000 or more in one year or other criteria); 
3. The property owner develops their property - (rezoning does not increase the assessed value until the property owner develops their property as permitted by the zoning).
    

Since Measure 50 passed, RMV has grown much faster than the 3% increase in AV required by law.  The AV of an average home in Clackamas County is equal to 65% of its RMV.  As long as RMV is greater than AV, the 3% annual increase in AV will continue and taxes will typically increase about 3% unless the property has new construction, other measure 50 exception value, or new money measures are passed by the voters.  View graph provided by the Clackamas County Assessor that details RMV and AV history.