Tiny Tax Bills
November 10th, 2008
The Oregonian, By John Kirkland
Dustin Micheletti said he and his wife Kesia moved to Oregon from California partially because of the lower housing prices. Still, he said would not have been able to afford a home had it not been for a program that will save the couple more than $150 in property taxes per month.
The program is the Single Family New Construction Tax Abatement program. Administered by the Portland Development Commission (PDC), it was designed to encourage home ownership in distressed parts of the city. The neighborhoods eligible for the program, called “Homebuyer Opportunity Areas,” are located throughout north, northeast and southeast Portland. Builders can apply to the PDC to have their new homes or condominiums qualify for the program, and buyers must do the same.
Generally speaking, the sales price of the home must be no more than $275,000, and the buyer’s annual income must be no more than $67,500. If all qualifications are met, the buyer pays property taxes only on the land the building sits on, not the building itself — a considerable savings, since the building is typically valued much higher than the land.
Ann Johnson, PDC loan production supervisor, said those who participate in the program usually pay a third or less of the normal property tax on a detached single family home. The tax abatement lasts for 10 years after purchase. After that the homeowner begins paying taxes on both the land and the building.
The PDC also offers tax abatement programs for certain multifamily developments along transit corridors, and for low-income housing held by charitable, nonprofit organizations.
Read the rest of the story here. Learn more about the Portland Development Commission’s tax abatement programs here.