What will your McMinnville property tax bill look like this year, and why does it change? If you are buying, selling, or planning a remodel, a clear picture of Oregon’s system helps you budget and avoid surprises. In this guide, you will learn how assessed value works, what “compression” means, where to find your records, and what can push your tax bill up in the future. Let’s dive in.
Property tax basics in McMinnville
Real Market Value vs Assessed Value
- Real Market Value (RMV) is the assessor’s estimate of what your property would sell for on the assessment date.
- Assessed Value (AV) is the number your taxes are actually based on. AV is not always the same as market price.
- In some cases, such as a sale or new construction, AV can be reset to the current RMV.
Maximum assessed value cap
Under Measure 50, most existing properties have an assessed value cap called the maximum assessed value (MAV). For long-held homes without major changes, AV generally increases no more than 3 percent per year. That cap helps keep annual tax increases predictable unless a reset event happens.
Measure 5 compression
Measure 5 limits how much total tax rate can be applied to a property. When combined rates would exceed those limits, the state reduces certain levy rates. This compression lowers the effective rate that actually applies to your property. The result is that your bill can move up or down from year to year even if your AV changes only slightly.
How your tax is calculated
Here is the basic formula used in McMinnville and across Yamhill County:
- Find your Assessed Value (AV) for the tax year.
- Add up all levy rates that apply to your property, shown per $1,000 of AV. These include permanent rates for the city, county, and districts, plus any voter-approved local option levies and bonds.
- Apply any compression if limits are triggered.
- Total Annual Tax ≈ (AV ÷ 1,000) × (Total levy rate after compression).
- For a monthly estimate, divide by 12.
Quick example (hypothetical)
- Assessed Value: $350,000
- Total levy rate after compression: $15.00 per $1,000
- Estimated annual tax: (350,000 ÷ 1,000) × 15.00 = $5,250
- Estimated monthly: $5,250 ÷ 12 ≈ $438
Always use your actual AV and the rate shown on your current county statement for the most accurate estimate.
Where to find your records
Yamhill County Assessor
Use the county’s property search to look up a property by address, owner name, or tax account number. You will see RMV, AV, AV history, exemption flags, and parcel details. Look for any year where AV jumped more than the usual 3 percent, which may indicate a sale or new construction.
Tax statements and payments
The Yamhill County Tax Collector provides current tax bills, payment options, due dates, and penalties. Your statement lists line items for each taxing district, permanent rates, voter-approved levies, and any notes about compression or state offsets.
Billing timeline
- Tax statements are mailed in the fall.
- Typical installment schedule: November 15 for the first half, and May 15 for the second half.
- Late payments accrue interest and penalties according to county and state rules. Check the current-year calendar on the county treasurer site before you pay.
What can change your future taxes
Assessed value drivers
- Annual cap: Most properties see AV increase by no more than about 3 percent per year.
- Sale or major remodel: A sale or permitted new construction can reset AV to current RMV, which can cause a one-time jump.
- New construction: Added permitted improvements that increase RMV generally increase AV for the added value.
Levy and rate drivers
- Voter-approved measures: Local option levies or bonds for schools or other districts can increase rates if approved.
- Local budgets: Annual budgets for the city, county, and districts affect levy requests within state limits.
- State policy and funding: State-level changes in school funding or compression rules can shift effective rates.
Red flags to watch
- A recent sale at a much higher price than prior years.
- Recent or active building permits for significant improvements.
- AV history showing a sudden jump.
- Upcoming local ballots with levies or bond measures.
Buyer checklist for McMinnville
- Pull the assessor’s property profile to confirm RMV, AV, and AV history.
- Request the most recent property tax statement from the seller or county.
- Check permit history for additions, remodels, or new construction.
- Ask the listing agent whether the AV was reset at a recent sale.
- Review city and district information for any upcoming levies.
- If you escrow taxes, include taxes + insurance + HOA in your monthly budget.
Seller checklist to prepare for questions
- Be ready to explain any recent sale or permitted improvements that moved AV.
- Share recent tax statements and an assessor printout showing RMV, AV, and AV history.
- Note any exemptions or deferrals and whether a buyer must reapply.
Exemptions and deferrals
Oregon offers programs that can reduce or defer property taxes for eligible owners, including homeowner exemptions and senior or disabled deferral programs. Eligibility and amounts vary, and you must apply and meet the requirements. Check the Oregon Department of Revenue and Yamhill County pages for program details and timelines.
If you want help reading your statement or estimating how a remodel or sale could affect AV, reach out. With local knowledge and practical advice, you can plan your next move with confidence. When you are ready to talk strategy, connect with Zach Bernards Real Estate.
FAQs
How are McMinnville property taxes calculated?
- Taxes are based on your Assessed Value multiplied by the total levy rate per $1,000 after any Measure 5 compression.
What is the 3 percent assessed value cap in Oregon?
- Measure 50 limits most annual AV increases to about 3 percent unless an event like a sale or new construction resets AV.
What does “compression” mean on my tax bill?
- If combined levies exceed Measure 5 limits, the state reduces certain levies so the effective rate fits within those limits.
Where can I look up my property’s AV and tax history?
- Use the Yamhill County Assessor property search to view RMV, AV, AV history, and prior tax statements for your parcel.
When are Yamhill County property taxes due?
- Statements arrive in the fall, with typical installments due on November 15 and May 15; confirm current-year dates with the county.
What should buyers check before making an offer?
- Review the latest tax statement, AV history, and permit history, then estimate taxes using the county rates and the property’s AV.
