Tax Shift Sequential to Land-Based Property Tax System in Salem, Oregon

Tom Gihring, Ph.D.
Housing & Planning Consultant
Seattle, Washington

Kris Nelson, MBPA
Geonomics Consulting
Portland, Oregon

In cooperation with
Marion County, Oregon
Department of Assessments

November 1999

“Study results reveal the disproportionately high tax burdens that accompany current property tax limitations: on central business district developed parcels, lower value locations, and residential properties in general. A change to true market assessments and land-based taxation is shown to be less punitive to owners who undertake substantial capital investments—who put their land into production or use land more intensively. The greatest benefits accrue to multifamily and smaller lot residential properties, as well as centrally located fully developed sites. Conversely, LVT tax simulations demonstrate upward tax shifts associated with vacant and underutilized sites, especially those in central locations.”