Many Oregonians whose homes were destroyed in 2020 wildfires will soon be protected from potentially massive property tax increases after they rebuild, if county leaders in their communities agree.
About 4,000 homes were destroyed in wildfires across the state in September 2020 — most of them in Santiam Canyon or Southern Oregon’s Jackson County. Already, thousands of those properties have been rebuilt — and many homeowners have faced an unwelcome surprise when taxes came due.
Under Oregon law, a home’s assessed value can go up by no more than 3% each year, except when there’s new construction or significant upgrades. That’s left people rebuilding from the 2020 wildfires facing thousands of dollars in higher yearly taxes.
Mia Mohr, a resident of Lyon in the Santiam Canyon whose house was destroyed by the fires, testified in support of the property tax reset during the recent legislative session.
“Victims of the 2020 wildfires, particularly those who could least afford to rebuild, have experienced many challenges and hardships since losing everything in the devastating wildfire,” she said in written testimony. “...I didn’t have the option to replace my home built in 1968 with a 1968-valued home. I could only replace it with a same square-foot new home.”
In this file photo from Sept. 7, 2020, firefighters work to extinguish a blaze that ultimately destroyed numerous homes in Santiam Canyon. A new law offers a property tax reset for homeowners as they rebuild from Oregon's 2020 fires.
Mark Turney / Courtesy of U.S. Forest Service
The unexpected property tax increase she and other community members have faced has been a significant burden, she said.
Marion County Commissioner Kevin Cameron told OPB that the tax reset approved in this year’s legislative session is part of an ongoing effort to respond to the financial and personal hardships people have faced since the September 2020 wildfires.
“One of the first things we realized, right after the wildfires, is that property tax statements were going out in September, October of 2020 — and people were going to get a property tax statement when they have no house,” he said.
Leaders in hard-hit counties set up programs that allowed people to reduce their tax bills if they’d lost their homes — but it was not an automatic process.
Then, as residents started to rebuild, many were shocked by their new property tax statements.
“Their property tax statements would double or in some cases even triple,” Cameron said.
State Sen. Frank Girod, a Republican from Stayton, began pushing for a property tax reset in the 2023 legislative session, but it took until this year for it to pass as Senate Bill 1545.
The bill, which Gov. Tina Kotek signed into law this month, essentially resets the tax rate to 2020-21 levels for these homes, as long as they’re built to the same square footage as before the fire. Commissioners in the eight Oregon counties where the fires caused widespread damage will need to opt in for their constituents to receive these protections.
Cameron said he expects Marion County commissioners to approve the tax reset, and to work hard to communicate with eligible home owners about the program in affected communities. People will have to apply to qualify.
The property tax reset is temporary and limited. When houses are rebuilt larger than the home that was burned, that additional square footage will be assessed based on its value at the time of construction. When owners sell their rebuilt homes, those properties will be assessed based on market value at that time.
And only homes that are occupied full-time are eligible, which means people’s second homes around Detroit Lake are not qualified for the tax reset, Cameron said. “They will have to pay regular property taxes,” he said. “This is to encourage those who were living here to come back and rebuild.
