If Urban Renewal Is Not a Tax, Why Is It on My Tax Bill?
My property is not even inside an urban renewal area. Why do I see it on my tax statement?
This is one of the most common and confusing questions about urban renewal.
Urban renewal does not create a new tax or increase your total tax bill.
The amount of revenue generated by an urban renewal area is calculated using the growth in property values inside the urban renewal area only. However, Oregon law requires county assessors to collect those funds by adjusting property tax rates for each taxing district that collects property tax in the City.
As a result, every property tax bill in the City may show an urban renewal line item, even if the property is outside the urban renewal area.
Your total tax rate and total tax bill do not increase because of urban renewal.
Without urban renewal:
- City: 0.25%
- Fire District: 0.25%
- Library District: 0.25%
- Police District: 0.25%
Total Rate: 1.00%
With urban renewal:
- City: 0.24%
- Fire District: 0.24%
- Library District: 0.24%
- Police District: 0.24%
- Urban Renewal District: 0.04%
Total Rate: 1.00%
Why does it appear on tax bills for properties outside the urban renewal area?
Oregon's property tax system requires the assessor to collect urban renewal funds through a process called "division of taxes."
Because of this accounting method, the urban renewal amount appears as a line item on tax statements throughout the city, even for properties that are not located within the urban renewal area.
This does not mean your property is being added to the urban renewal district or charged a new tax.
Key takeaway
Urban renewal is not a new tax and does not increase your total property tax rate. Taxes generated by growth in assessed value within the urban renewal area are redirected to the urban renewal district. The assessor collects those funds by adjusting how existing property taxes are distributed, which is why an urban renewal line item appears on property tax bills citywide.
