Klamath County Assessor
Reasons the Assessor's Office must maintain Real Market Value (RMV) under Measure 50
- Maintaining Real Market Value remains a statutory requirement of Measure 50.
- Because of Measure 5 limits: Many properties are now taxed based on Measure 5 and Real Market Value (RMV) rather than Measure 50 and the lower Assessed Value (AV); 11,830 accounts in Klamath County are in Measure 5 compression and undergo the Measure 5 comparison test.
- Because of identification and valuation of Exceptions: RMV is needed to calculate the value added by new construction, remodels and other valuation additions. Failure to have a correct RMV would lead to an incorrect AV with the resultant loss of fairness and equity in assessment.
- Because of the Change Property Ratio (CPR): RMV is necessary to compute an accurate annual CPR for each of the property classes. The "CPR" is used one time for all new properties and new construction to compute the Maximum Assessed Value (MAV). The CPR adjusts the Maximum Assessed Value (MAV) of all new properties to a value equivalent to existing properties of a similar type, this results in better fairness and equity in assessment.
- Because of the Sales Ratio Study and Report: RMV will continue to be required for the Sales Ratio Study upon which the Assessor's Office will increasingly rely to enable us to correctly track RMV. Inaccurate RMV's would lead to inaccurate sales ratios which would lead to inaccurate appraisals which would lead to inaccurate assessments.
- Because Assessed Value (AV) cannot exceed RMV: Since property taxes are based on the lower of the MAV or the RMV, it is necessary to be able to determine when RMV falls below MAV and when it is above MAV.
- Because Taxing Districts Levy Authority: Taxes are based on a permanent tax rate multiplied by the assessed value. The annual budget of the 74 taxing districts is dependent upon accurate values.
- Farm or Forest RMV is used when calculating declassification of Farm or Forest land special assessed property and in providing estimated deferred tax liability to owners and buyers.
- Because of the need to evaluate property tax appeals: It is the RMV that property owners can appeal if they believe the Assessor's Office is incorrect. Maintaining RMV is necessary in determining if an appeal has validity and in working toward a fair agreement with the owner.
- Because of the Bonding Authority of Taxing Districts: The bonding debt limit for each taxing district is determined by the RMV of the properties within each taxing district. If the RMV is inaccurate, it could affect the bonding capacity or bond rating of a taxing district.
- Because of the Taxing Districts: The budget of each taxing district is dependent upon the Assessor's Office using every means possible to discover new properties and new improvements and properly valuing each for tax purposes.
- Because RMV is the only value that can be appraised: It is impossible to arrive at an opinion of value on any other basis than RMV; all other values required by Measure 50 are dependent upon the Real Market Value.