Curious why two similar homes in Prineville can have different tax bills? You are not alone. Property taxes in Oregon have a few moving parts that can feel confusing when you are buying, selling, or budgeting for the year. This guide breaks down the terms, the rules that drive your bill, and a simple way to estimate monthly costs. You will also get a practical checklist tailored to Prineville and nearby Central Oregon counties. Let’s dive in.
How Oregon taxes work
RMV vs. AV
Real Market Value (RMV) is what your county assessor estimates your home would sell for on the open market. Assessed Value (AV) is the number used to calculate taxes. Under Measure 50, AV generally increases by up to 3% per year. If there is a qualifying change of ownership or new construction, AV is typically reset toward RMV.
How bills are calculated
Counties and local districts set permanent rates and voter‑approved levies. Your annual tax is the sum of those rates applied to your AV. The simplified formula is:
- Annual tax = (AV ÷ 1,000) × total tax rate
Your statement lists each district, such as county, city, school, fire, and bonds, with its portion of the total.
Why AV matters more than RMV
Most Oregon property taxes are based on AV, not RMV. That can help long‑term owners because AV growth is limited even when market values jump. If you buy at today’s market price, AV may reset toward that price, then future increases are generally capped at 3% per year.
Measure 5, Measure 50, compression
Measure 5 rate caps
Measure 5 limits property tax rates when expressed against RMV. School‑related taxes are capped at 5 dollars per 1,000 dollars of RMV. Non‑school taxes are capped at 10 dollars per 1,000 dollars of RMV. If combined rates exceed those caps, the excess is reduced. This reduction is called compression.
Measure 50 AV limits
Measure 50 created today’s AV system. After the initial setup, AV can rise only up to 3% per year. It also set permanent tax rates for districts, which are applied to AV to compute taxes. When a property has qualifying new construction or a change of ownership, AV is typically reset toward RMV, then is subject to the 3% cap in later years.
What compression means for you
Compression is a technical recalculation that lowers certain levies when the Measure 5 caps would be exceeded. It can change the effective rate you pay in a given year and how the total is distributed among districts. Compression does not change the 3% AV cap under Measure 50.
What to check in Prineville
Pull tax history
Get the current year’s statement and the last two to three years of tax history. This shows AV vs. RMV, total taxes, and every levy. Sellers often have the latest bill, and the Crook County Assessor can provide records.
Verify AV and RMV
Compare AV to RMV. If AV is well below RMV, future increases are generally limited to 3% per year. If AV is close to RMV, that 3% cap still applies going forward, which helps with budgeting.
List districts and levies
Identify every taxing district that applies, including county, city, school district levies and bonds, fire, library, water, and any local option levies. Recent voter‑approved bonds can raise rates for a set period, which affects your final bill.
Check exemptions and deferrals
Some owners may qualify for programs that lower or defer taxes, such as senior or disabled homeowner deferrals and disabled veteran exemptions. Eligibility and applications run through the state and your county assessor. The Oregon Department of Revenue Property Tax program explains statewide rules and programs.
Ask about improvements
Permitted additions or new structures can increase AV beyond the 3% cap in the year they are added. Check for recent or pending permits with the county.
Urban renewal areas
If a property sits in an urban renewal or tax‑increment financing area, part of the tax flow is redirected to the urban renewal agency. This usually does not change your total bill but can affect how funds are distributed locally.
Know appeal windows
If you believe RMV or AV is incorrect, there is a defined appeal period after assessment notices are issued. Contact the county assessor for procedures and deadlines.
Confirm payment details
Ask the County Treasurer or Tax Collector about due dates, payment options, and penalties for late payment. If you have a mortgage, confirm whether taxes are paid through escrow.
Estimate your monthly tax
A simple calculation
- Find your AV on the tax bill. 2) Find the total tax rate shown as dollars per 1,000 dollars of AV. 3) Apply the formula.
- Hypothetical example: AV = 300,000 dollars; total rate = 12.50 per 1,000 dollars of AV.
- Annual tax = (300,000 ÷ 1,000) × 12.50 = 300 × 12.50 = 3,750 dollars.
- Monthly estimate = 3,750 ÷ 12 = 312.50 dollars per month.
This is only an example. Always use the actual AV and rates for the property you are evaluating.
Plan for future years
If you are buying at a higher market price, expect AV to reset toward that value. In later years, AV growth is generally limited to 3% per year. Local voter‑approved levies and bonds can change rates and may trigger compression, which can shift your final bill.
If you use escrow
Lenders often collect a monthly escrow amount to cover property taxes and insurance. Ask your lender for the escrow estimate so you can compare apples to apples on your total monthly housing cost.
Quick buyer and owner checklist
- Pull the current tax bill plus 2–3 years of history.
- Confirm AV and RMV. Ask if AV is likely to reset at purchase.
- List all taxing districts, current rates, and any voter‑approved bonds or levies.
- Check exemptions or deferrals you may qualify for.
- Ask the assessor about permits or improvements that could change AV.
- Estimate annual tax using AV × rate, then divide by 12 for monthly budgeting.
- If financing, request your lender’s escrow estimate.
Where to get official info
- Statewide rules and programs: Visit the Oregon Department of Revenue Property Tax program for explanations of RMV vs. AV, Measure 5, Measure 50, exemptions, deferrals, and appeals.
- County specifics: Contact the Crook County Assessor for Prineville properties. For nearby areas, the Deschutes County Assessor and Jefferson County Assessor provide property lookups, levies, and local procedures. The County Treasurer or Tax Collector posts payment dates and methods.
Buying, selling, or budgeting in Prineville gets easier when you understand how AV, RMV, Measure 5, Measure 50, and compression work together. If you want a property‑specific review or help comparing homes across Crook, Deschutes, and Jefferson counties, our team can walk you through the numbers and the local context.
Ready for tailored guidance on your next move in Central Oregon? Connect with The Agency Bend to Request a Premium Market Consultation.
FAQs
How are Prineville property taxes calculated?
- Your annual bill equals your Assessed Value divided by 1,000, then multiplied by the total tax rate from all applicable districts. The tax statement lists each district and its portion.
What is the 3% cap under Measure 50?
- After setup, a property’s Assessed Value generally can increase by up to 3% each year, except when there is a qualifying change of ownership or new construction that can reset AV toward RMV.
How does Measure 5 compression affect my bill?
- If combined school or non‑school taxes would exceed caps when measured against RMV, certain levies are reduced so the bill fits within those limits. Compression can change your effective rate in a given year.
Will my taxes go up if I buy a home in Prineville?
- Often, yes. If you purchase at a higher market value than the prior owner’s AV, the property’s AV may reset toward the sale price, then future AV growth is generally limited to 3% per year.
Where can I find my property’s AV and RMV in Crook County?
- Check your current tax statement or contact the Crook County Assessor for property records, AV and RMV history, and assessment notices.
Can seniors or disabled veterans lower or defer taxes?
- Some owners may qualify for state‑administered deferral programs or exemptions. Review eligibility with your county assessor and the Oregon Department of Revenue’s Property Tax resources.
