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Prepared For:Barney and WorthLeague of Oregon Cities Survey ReportSeptember 2012Prepared BY:DHM RESEARCH(503) 220-0575 ? 239 NW 13th Ave., #205, Portland, OR 97209 ? 08Fall1 | Introduction and methodology Davis, Hibbitts & Midghall, Inc. (DHM Research), in partnership with Barney & Worth, Inc., conducted a telephone survey of Oregon voters on behalf of the League of Oregon Cities. The objective of the survey was to determine public perceptions of property taxes in Oregon and their willingness to support changes to the current system.This survey was the second stage of research for the League of Oregon Cities. In August 2012, DHM Research and Barney & Worth, Inc., conducted three focus groups with voters in Deschutes County, Lane County, and the Portland metro area. The results here are consistent with and help to quantify the focus group findings. Research Design: Scientific random sample survey of 600 voters in Oregon Conducted September 11 – September 17, 2012Contact respondents using a registered voter list including cell 15 minute survey instrumentQuotas for age, gender, area of state, and political affiliation to assure the groups’ were representative of the general population Quality control measures including pre-testing, callbacks, and validations In gathering responses, a variety of quality control measures were employed, including questionnaire pre-testing and validations. In the annotated questionnaire, results may add up to 99% or 101% due to rounding. Statement of Limitations: Any sampling of opinions or attitudes is subject to a margin of error. The margin of error is a standard statistical calculation that represents differences between the sample and total population at a confidence interval, or probability, calculated to be 95%. This means that there is a 95% probability that the sample taken for this study would fall within the stated margins of error if compared with the results achieved from surveying the entire population.For a sample size of 600, the margin of error for each question falls between +/-2.4% and +/-4.0%, at the 95% confidence level. The reason for the difference lies in the fact that, when response categories are relatively even in size, each is numerically smaller and thus slightly less able – on a statistical basis – to approximate the larger population. DHM Research: DHM Research has been providing opinion research and consultation throughout the Pacific Northwest and other regions of the United States for over three decades. The firm is non-partisan and independent and specializes in research projects to support public policy-making. 2 | summary and observations Before receiving information about property taxes in Oregon voters are mildly supportive of the existing system, but a majority are also open to making some changes to it.A slim majority (52%) of voters agreed that overall the property tax system is working well.However, feelings about the existing system were not strong, with 65% of voters saying that they only “somewhat” agree or disagree that Oregon’s property tax system is working well compared to 30% who “strongly” agreed or disagreed.In the initial test, before hearing details about it, 45% of voters said that that Oregon’s property tax system needs “minor tweaks” and 17% felt that the system is so flawed that we need to “start over from scratch.” Together, 62% of voters start from a place of being receptive to reforms.It is important to voters that property taxes go towards paying for services that they value, including schools and public safety.80% of voters believe that they understand what property taxes pay for.79% of voters agreed that property taxes pay for services that are important to them.In the previous focus group research, voters were less able to accurately describe what property taxes pay for (and how the system works overall) than is suggested in their answers here. Nonetheless, voters in those groups placed a high value on funding basic local government services and see that as the primary value of property taxes.A lack of local voter control and inequities in the existing system are the most powerful arguments against the existing property tax system and reasons to support reforms.The survey explained how the current property tax system works and asked about the lack of local asked about the lack of local voter control and inequities multiple ways, and voters consistently answered that that these are negative features of the existing system.66% of voters felt negatively about the current system prohibiting local voters from increasing permanent rates.83% of voters felt negatively that two homes, in the same community with the same market value, can have drastically different property tax bills.Voters are receptive to information about the current property tax system, and once informed about it become more supportive of change.After receiving information about Oregon’s property taxes, 81% of voters said that the system needs “minor tweaks” or needs to “start over from starch,” a 19 percentage-point increase from the initial test.“Don’t know” responses in the survey were relatively infrequent, indicating that voters will understand basic messages about the property tax system. There is majority support for three of four of the League of Oregon Cities reform proposals tested.84% supported ensuring all property owners pay their share of the temporary taxes approved by local voters for services.64% supported resetting a property’s taxable value to its sales price when it is sold.64% supported allowing temporary taxes for local services to exceed statewide limitations, when approved by voters.However, 54% opposed allowing local voters to extend the maximum timeframe of voter-approved temporary levies from 5 years to 10 years.There is also majority support for three other property tax reforms proposals.79% support amending the Oregon constitution to guarantee that all properties with similar market values are taxed at similar rates.69% support allowing local governments and schools to increase their maximum allowable tax rates if approved by a majority of voters.67% support allowing local voters to increase the amount an individual property can be taxed above the $5 per $1,000 limit for schools, with the money staying in the local school district.However, 60% oppose allowing elected school boards to increase those same limits.Opinions about Oregon’s property tax system are similar across all demographic groups, including by political party and area of state.Care is taken throughout this report to note demographic differences for each item. Although there are statistically significant difference on most items, the gaps among groups are generally small.With tax and spending issues, there are quite often large and consistent differences in attitudes by political party and area of the state. However, with regards to property taxes in Oregon, opinions varied little by ideology or geography.3 | key findings3.1 General Voter Sentiment The survey started by asking voters if they believed that things in Oregon are headed in the right direction, or if things are off on the wrong track (Q1). They were about split with 46% saying that the state is headed in the right direction and 42% feeling that it’s off on the wrong track.Most positive (right direction)Tri-County: 51%Democrat:51%Willamette Valley: 48%Republican: 48%Most negative (wrong track)Rest of state: 35%Independent: 35%DHM Research has been tracking voter sentiment in Oregon for many years. Chart 2 shows statewide voter responses to “right direction/wrong track” questions over the last 15 years. Not since the late 1990s, at the peak of the economic boom, have “right direction” percentages been above 50%. In the last decade, the “right direction” percentages have stayed in a range of 39%-46%.Voters were also asked if things in their community are headed in the right direction, or are things off on the wrong track (Q2). Nearly six of 10 voters said that their community is headed in the right direction, compared to 35% who said they are off on the wrong track. This is consistent with previous research that voters are typically more satisfied with the direction of their local community than the state at-large.Most positive (right track)Renters: 68%$50k-$$75k: 65%Tri-county: 62%Democrats: 62%College grads: 61%Most negative (wrong direction)Homeowners: 55%High school or less: 53%<$50k: 52%Rest of state: 51%Independents: 51%3.2 Baseline Opinions about Property Taxes Voters were asked, open ended, what is the first thing that comes to mind when they think about property taxes in Oregon (Q3).Table 1Reactions to Property Taxes in OregonResponse Category N=600They are too high45%They are fair/not too high/lower than other states13%I don’t pay property taxes/doesn’t affect me9%They are misspent/going to the wrong places4%Everyone should pay their fair share3%I would rather pay a sales tax than a property tax3%They should go to schools3%They are increasing3%All other responses2% or lessDon’t know/no answer3%Source: DHM Research, September 2012A plurality of voters (45%) said that they feel that property taxes are too high. This was by far the most common response. In a second tier were comments about the rates being fair or low (13%) and that they didn’t feel personally affected by property taxes (9%). Other responses related to tax dollars being misspent (4%),that not everyone is paying their fair share (3%), and suggestions that property taxes ought to be replaced with a sales tax (3%).Voters were asked if they agreed or disagreed that overall the property tax system in Oregon is working pretty well (Q13). A slight majority, 52%, agreed while 42% disagreed. Notably, about two-thirds of voters, 67%, said they agreed or disagreed just “somewhat” with this statement, indicating that most voters are not ardent opponents or supporters of the property tax system. This is consistent with the focus group research, where property taxes were not a priority issue.Overall the property tax system in Oregon is working well. (Q13) (52% agree; 43% disagree)Most likely to agree18-34: 61%Most likely to disagree55+: 46%Homeowners: 46%The voters were presented four statements about property taxes in Oregon and asked to indicate which was closest to their personal feelings (Q4). Nearly one-half (45%) said that the property tax system has some flaws, but with some minor tweaks it can be updated to meet today’s needs. Another 17% said that the system is fatally flawed, and the only way to fix it is to start over from scratch. Taken together, then, 62% of Oregon voters said that at least some reforms to the property tax system are needed. Just 9% said that the system is working as intended and should be maintained, and 25% felt that they did not know enough about it to say if it is working or not.This question was asked a second time, later in the survey, after giving the respondents information about the property tax system. As is discussed below, after learning more about the system and its consequences, support for reform increased significantly, where more than eight in 10 voters were open to reform.The demographic groups most open to some property tax reforms had higher incomes, more education, and were more likely to be homeowners. Not surprisingly, those who said they needed more information were younger, less educated, with lower incomes, and renters. There were not statistically significant differences by political party or area of the state.Minor tweaks>$100k: 59%College grad: 51%Homeowner: 50%Start from scratchNo group differencesDon’t know enoughRenters: 51%18:34: 39%High school or less: 35%<$50k: 33%It’s working55+: 13%3.3 Perceptions of Oregon’s Property Tax System To better understand how voters perceive property taxes in Oregon, they were presented with a series of statements about tax rates, voter control, services funded, and other issues. For each statement, voters indicated if they strongly agreed, somewhat agreed, somewhat disagreed, or strongly disagreed. The responses to the statements were sorted into three distinct TIERA strong majority of voters said they understand what property taxes pay for, and that they pay for public services that are important to them.In the focus group research, some voters expressed confidence that they understood property taxes in Oregon, but when pressed by the moderator to describe them, very few were able to do so accurately. Several thought that property taxes funded state programs or they vastly overestimated the amount of tax dollars that typically go to services such as parks or roads. Still others believed that Oregon had some of the highest property taxes in the country and that they are based on real market values. On the other hand, voters in the focus groups also said that one of the best aspects of Oregon’s property tax system was that it funds importance public services, especially schools, public safety, and vulnerable populations.I understand what property taxes pay for. (Q6) (80% agree; 16% disagree)Strongest with$50k+: 84-88%Homeowners: 83%55+: 83%Strongest disagreeRenters: 26%18-34: 25%Property taxes pay for public services that are important to me. (Q12) (79% agree; 17% disagree)Strongest agree55+: 82%Some college/college grad: 81-82%Strongest disagree18-34: 22%High school or leas: 21%MIDDLE TIERThe middle tier includes statements about local voter control, tax rates, and government spending. More than six in 10 voters agreed to each of these statements. It may seem contradictory that voters agreed with two of these statements. One said that voters can pay for services they want, while the other said that local voters don’t have enough control. In the focus group, the voters strongly and repeatedly stressed that they place a high value on being able to control their tax rates. However, there was also a lot of confusion about how rates are set and the role of voters and elected officials in setting rates. They have experience voting for levies and understood that process, yet, many also felt that tax rates keep going up and up and they didn’t feel like voters had a voice. This belief is validated by the fact that a majority of voters surveyed agreed to the statement that “local governments and schools need to live within their means and stop increasing our property taxes.”If there are services I want, I can vote to pay more. (Q10) (64% agree; 29% disagree)Strongest agreement$74k-$100k: 71%Males: 68%18-34: 68%Strongest disagreementRest of state: 33%55+: 33%Local voters don’t have enough control of their property tax rates. (Q9) (63% agree; 30% disagree)Strongest agreementChildren in the household: 69%Some college: 68%$50k-$75k: 68%Females: 67%Willamette Valley/Rest of state: 66-67%Republican/Independent: 66-67%Strongest disagreement$100K+: 39%College grad: 35%Male: 35%Tri-county: 35%Democrat: 35%Property taxes are too high. (Q7) (63% agree; 29% disagree)Strongest agreementHigh school or less: 70%Children in the household: 68%Some college: 67%35-54: 66%Strongest disagreement$75k-$100k: 38%College grad: 37%55+: 33%Local governments and schools need to live within their means and stop increasing our property taxes. (Q8) (62% agree; 35% disagree)Strongest agreement Some college or less: 73-75%Strongest disagreementCollege grad: 47%BOTTOM TIERIn the bottom tier were two statements about understanding how property tax rates are set and feeling that not all property owners are paying their fair share. About one-half of voters agreed to these statements.It should be noted again that while about one-half of voters said that they understand how property tax rates are set, in the focus group research very few voters could accurately describe the system. In the three focus groups conducted for this project, only one person in each group was able to give a reasonably accurate description of the system. So despite what voters may think they know about the property tax system, in fact, the evidence is that very few are well informed.I understand how property tax rates are set. (Q5) (54% agree; 39% disagree)Strongest agreement $100k+: 67%$75k-$100k: 61%Males: 59%Strongest disagreementHigh school of less: 50%<$50k: 47%Some properties owners are not paying their fair share of their taxes. (Q11) (49% agree; 30% disagree; 22% don’t know)Strongest agreementFemales: 54%Strongest disagreement$100k: 37%Males: 37%Most unsure<50k: 27%3.4 Positive and Negative Aspects of the Current Property Tax SystemThe next two sections of the survey presented voters with information about Oregon’s property tax system. The first was a series of statements describing its basic features. The second section described the consequences of the system on taxpayers and local governments.For this first section, voters were read descriptions of specific features of Oregon’s property tax system and asked if that is a very good, good, poor, or very poor feature of the system. The purpose of these questions was to learn what aspects of the current system voters may be most open or resistant to changing. Voters were supportive of predictability and limits on the property tax rates, but negative towards restrictions on local voter control. POSITIVE FEATURES OF THE CURRENT PROPERTY TAX SYSTEMWithout local voter approval, property taxes cannot increase more than 3% per year. (Q15) (79% good; 18% poor)Most positive (% good)Some college: 86%Rest of state: 85%Independent: 85%Most negative (% poor)55+: 22%Voter approved tax levies are limited to no more than five years. (Q17) (67% good; 22% poor)All demographic groups felt similarly about this aspect of the property tax system.Property owners cannot be taxed more than $10 per $1,000 of its current market value to pay for city, county, and special district services combined. For example, $2,000 per year for a home with a market value of $200,000. (Q18) (58% good; 33% poor)Most positive (% good)18-34: 65%Children in the household: 64%Most negative (% negative)$75k+: 39-42%College grad: 38%Property owners cannot be taxed more than $5 per $1,000 of itscurrent market value for schools. For example, $1,000 per year for a home with a market value of $200,000. (Q19) (55% good; 34% poor)Most positive (% good)$50k-$75k: 63%Most negative (% poor)$75k: 40-41%NEGATIVE FEATURES OF THE CURRENT PROPERTY TAX SYSTEMOregon’s property tax limits are defined in the Oregon Constitution and cannot be changed by local voters. (Q14) (47% good; 46% poor)Most positive (% good)High school or less: 53%Most negative (% poor)18-34: 54%College grad: 51%In 1997, Oregon voters approved a constitutional amendment that set a maximum permanent rate each local government can collect in property taxes based on their circumstances at the time. That rate cannot be increased by local voters. (Q20) (43% good; 50% poor)Most positive (% good)Rest of state: 51%Independent: 51%High school or less: 50%Most negative (% poor)$75k+: 60%College grad: 55%The amount a property can be taxed does not change when it is sold, regardless of how much it has increased in its market value or sales price. (Q16) (40% good; 50% poor)Most positive (% good)High school or less: 48%18-34: 46%Male: 45%Most negative (% poor)College grad: 56%3.5 Positive and Negative Consequences of the Current Property Tax SystemNext, the voters were read a series of statements about the consequences of that system on taxpayers and government services. Among the nine consequences, a majority found five of them positive and four negative. Positive consequences were that property taxes pay for valued services, that the power of elected officials is limited, that rates are predictable, and that Oregon has relatively low rates. Negative consequences were the lack of local voter control and inequalities in how the system treats individual property owners and communities. POSITIVE CONSEQUENCESThe majority of property tax revenue goes to fund local schools, police, and fire protection. (Q29) (90% positive; 9% negative)Most positive$50k-$75k: 95%Children in the household: 94%Most negativeHigh school of less: 15%*It is notable that more than one-half of voters said this is a “very positive” consequence of the property tax system.Oregon’s property tax laws take control out of politicians’ hands. Government services must be budgeted within the limits and property tax rates cannot increase without a vote of the people. (Q28) (84% positive; 13% negative)All demographic groups felt similarly about this consequence of the property tax system.*It is notable that more than one-half of voters said this is a “very positive” consequence of the property tax systemVoter approved property tax levies expire in 5 years and must be renewed. (Q25) (76% positive; 19% negative)All demographic groups felt similarly about this consequence of the property tax system.Property taxes in Oregon are predictable. The strict limitations prevent property taxes from rapid increases when the real estate market is booming. (Q26) (72% positive; 22% negative)Most positiveChildren in the household: 80%18-34: 78%Most negative55+: 29%Compared to other states, Oregon’s property taxes are relatively low. Oregon now ranks among the 20 states with the lowest property taxes per person. (Q27) (67% positive; 25% negative)Most positiveRest of state: 72%Independent: 72%18-54: 71-72%Most negativeWillamette Valley: 31%Republican: 31%55+: 30%NEGATIVE CONSEQUENCESLocal tax measures often do not raise the amount of revenue approved by voters at the ballot box because of limitations in Oregon’s constitution. (Q22) (41% positive; 50% negative)Most positiveHigh school or less: 48%Male: 47%Most negative18-34: 58%College grad: 57%The maximum property tax rate for each local government was set in 1997 based on its needs at the time. Local voters are prohibited from increasing that rate regardless of how their circumstances have changed. (Q23) (30% positive; 66% negative)Most positiveHigh school or less: 39%Male: 34%Most negative18-34: 75%$100k+: 72%College grad: 70%The maximum property tax rate varies dramatically from one community to another, with some able to tax 10 times more than others. (Q24) (26% positive; 67% negative)Most positiveHigh school or less: 36%$100k+: 33%Male: 31%Most negative75k-$100k: 76%Some college: 74%Female: 71%Two homes, in the same community with the same market value, can have drastically different property tax bills, with one home paying thousands more each year than another similar home. (Q21) (12% positive; 83% negative)Most positiveHigh school or less: 20%Male: 16%Most negativeFemale: 88%Some college: 88%*It is notable that more than one-half of voters said this is a “very negative” consequence of the property tax system.3.6 Willingness to Reform Oregon’s Property Tax System – Post TestAfter presenting voters with information about how Oregon’s property tax system works, and the consequences of that system, they were asked a second time if they would be willing to support reforms (Q30). After learning more about property taxes, 81% of voters said they were open to at least some changes to Oregon’s property tax laws. Two-thirds (66%) said that the system has flaws and needs “minor tweaks.” Another 15% said that property taxes in Oregon are fatally flawed and that we need to “start over from scratch.” Taken together, 81% of informed voters agreed that Oregon’s property tax system is less than optimal and would support reforms. This is a 19 percentage-point increase from the initial test. Most of the increase in support for reform came from voters who in the initial test said that they “did not know enough” to say whether the system is working or not. Practically no voters became less supportive of reform once they learned more about the system and its consequences.Demographically, the groups who showed the greatest increase in support for property tax reform from the initial to post test were 18-34 year olds, renters, Republicans, and those in the Willamette Valley. Chart 15 compares voters who became more supportive of reform, from the initial test to post test, to voters whose opinions did not change on how they responded to negative information about Oregon’s property tax system. This analysis shows that information about inequities (two homes with the same market value taxed at different rates), effects of compression (local measures often do not raise approved revenue because of limitations), and lack of local voter control (prohibits raising permanent rates) had the greatest impact on voter attitudes. Although a majority of all voters disliked that property tax rates vary dramatically from community to community, that particular consequence had little impact on voters’ desire for property tax reform.3.7 Reform proposalsThe survey tested eight reform proposals. Four of the proposals are being considered by the League of Oregon Cities, and four are being considered by others who are also interested in changing Oregon’s property tax system.LEAGUE OF OREGON CITIES PROPERTY TAX PROPOSALS There was majority support for three of the four League of Oregon Cities’ proposals. The strongest support was for ensuring that all property owners pay their share of temporary taxes. The survey avoided the word “compression,” but the idea of this proposal is to ensure that when local voters approve a tax levy the burden of paying for it does not fall exclusively on properties below the compression limitations.A majority of voters also supported resetting a property’s taxable value at sale, and allowing temporary taxes to exceed statewide limitations when approved by voters. However, a majority of voters opposed extending the maximum timeframe of temporary levies from 5 years to 10 years.Ensure all property owners pay their share of the temporary taxes approved by local voters for services. (Q34) (84% support; 11% oppose)Strongest support$50k+: 89-90%Females: 87%Strongest oppositionMales: 14%Reset a property’s taxable value to its sales price when it is sold. (Q32) (64% support; 29% oppose)Support for this proposal was similar across all demographic groups.Allow temporary taxes for local services to exceed statewide limitations, when approved by voters. (Q33) (64% support; 33% oppose)Strongest support$100k+: 75%18-54: 68-69%College grad: 68%Female: 67%Strongest oppositionMale: 39%55+: 39%<$50k: 36%Allow local voters to extend the maximum timeframe of voter-approved temporary levies from 5 years to 10 years. (Q31) (42% support; 52% oppose)Strongest support8-34: 54%Strongest oppositionMale: 57%Tri-county: 56%55+: 56%ADDITIONAL PROPERTY TAX PROPOSALS In addition to the League of Oregon Cities’ proposals, voters also indicated their support for amending the Oregon constitution to guarantee that all properties with similar market values are taxed at similar rates, as well as allowing local voters to approve increases in their permanent rates and $5/$1000 tax limits for schools. However, a majority opposed allowing elected school boards to increase these limits without voter approval. Amend the Oregon constitution to guarantee that all properties with similar market values are taxed at similar rates. (Q37) (79% support; 17% oppose)Strongest support<$50k: 84%Strongest opposition$75k-$100k: 24%55+: 22%Allow local governments and schools to increase their maximum allowable tax rates, which were set in 1997, if approved by a majority of voters. (Q36) (69% support; 28% oppose)Strongest support18-34: 76%College grad: 76%Female: 72%Strongest oppositionSome college: 35%Male: 33%Allow local voters to increase the amount an individual property can be taxed above the $5 per $1,000 limit for schools, with the money staying in the local school district. (Q35) (67% support; 30% oppose)Strongest support18-34: 75%College grad: 71%Female: 71%Strongest oppositionSome college: 36%55+: 35%Male: 35%Allow elected school boards to increase the amount an individual property can be taxed above the $5 per $1,000 limit for schools, with the money staying in the local school district. (Q38) (37% support; 60% oppose)Strongest support18-34: 51%Rent: 50%College grad: 42%Strongest oppositionSome college: 68%$50k-$75k: 67%55+: 67%Homeowner: 65%League of Oregon Cities - Property Tax Reform SurveyN=600, Oregon Statewide, Voters15 minutes; Margin of error +/- 4.0%Hi, my name is ________ from DHM Research, a public opinion research firm in the Oregon. We are doing research about issues in your community. We are not trying to sell anything. May I please speak to ____________________WARM UPAll in all, would you say that things in Oregon are headed in the right direction, or are things off on the wrong track?Response Category N=600Right direction46%Wrong track42%Don’t know12%All in all, would you say that things in your community are headed in the right direction, or are things off on the wrong track?Response Category N=600Right direction58%Wrong track35%Don’t know8%BASELINE ATTITUDES TOWARDS PROPERTY TAXESI would like to spend some time asking about taxes in Oregon. What is the first thing that comes to mind when you think about property taxes in Oregon? (Open. Record up to three responses.)Response Category N=600They are too high45%They are fair/not too high/lower than other states13%I don’t pay property taxes/doesn’t affect me9%They are misspent/going to the wrong places4%Everyone should pay their fair share3%I would rather pay a sales tax than a property tax3%They should go to schools3%They are increasing3%All other responses2% or lessDon’t know/no answer3%Which of the following four statements is closest to your feelings about property taxes in Oregon.Response Category N=600Oregon’s property tax system is working as intended and we should maintain it.9%Oregon’s property tax system has some flaws, but with some minor tweaks it can be updated to meet today’s needs.45%Oregon’s property tax system is fatally flawed. The only way to fix it is to start over from scratch.17%I don’t know enough about Oregon’s property tax system to know if it’s working or not.25%Don’t know3%I would like to learn more about how you feel about property taxes in Oregon. I will read a number of characterizations that some people make about Oregon’s tax system and for each tell me if you strongly agree, somewhat agree, somewhat disagree, or strongly disagree with that characterization. (Randomize Q5-Q13)Response CategoryStrongly AgreeSmwtAgreeSmwtDisagreeStrongly DisagreeDon’t knowI understand how property tax rates are set24%30%20%19%7%I understand what property taxes pay for44%36%9%7%4%Property tax rates are too high38%25%20%9%8%Local governments and schools need to live within their means and stop increasing our property taxes43%19%17%18%3%Local voters don’t have enough control over their property tax rates 37%26%18%12%7%If there are services I want, I can vote to pay more31%33%12%17%7%Some property owners are not paying their fair share of taxes27%22%17%12%22%Property taxes pay for public services that are important to me48%31%10%7%4%Overall the property tax system in Oregon is working pretty well11%41%24%19%5%SUPPORT FOR CURRENT PROPERTY TAX SYSTEMIn Oregon, the primary funding source for city and county governments is property tax. If you own a home or other property, you pay property tax. Property tax is also a major source of revenue for public schools. I’m going to read you statements about how the property tax system works in Oregon. For each tell me if you feel that is a very good, good, poor, or very poor aspect of how property taxes are paid in Oregon. (Randomize Q14-Q20)Response CategoryVery GoodGoodPoorVery PoorDon’t knowOregon’s property tax limits are defined in the Oregon Constitution and cannot be changed by local voters.16%31%30%16%7%Without local voter approval, property taxes cannot increase more than 3% per year.31%48%12%6%4%The amount a property can be taxed does not change when it is sold, regardless of how much it has increased in its market value or sales price.9%31%34%16%10%Voter approved tax levies are limited to no more than five years. 14%53%16%6%11%Property owners cannot be taxed more than $10 per $1,000 of its current market value to pay for city, county and special district services combined. For example, $2,000 per year for a home with a market value of $200,000.13%45%24%9%10%Property owners cannot be taxed more than $5 per $1,000 of a property’s current market value for schools. For example, $1,000 per year for a home with a market value of $200,000.10%46%23%11%11%In 1997, Oregon voters approved a constitutional amendment that set a maximum permanent rate each local government can collect in property taxes based on their circumstances at the time. That rate cannot be increased by local voters.14%29%33%17%7%PROPERTY TAX CONSEQUENCESOregon’s property tax system has had many different impacts on property owners and on local governments and schools, some of which you may find positive or negative. I am going to share with you some examples of the outcomes of the Oregon property tax system. After each tell me if you think that outcome is very positive, somewhat positive, somewhat negative, or very negative. (Randomize Q21-Q29)Response CategoryVery PositiveSmwtPositiveSmwt NegativeVeryNegativeDon’t knowTwo homes, in the same community with the same market value, can have drastically different property tax bills, with one home paying thousands more each year than another similar home.3%8%29%54%5%Local tax measures often do not raise the amount of revenue approved by voters at the ballot box because of limitations in Oregon’s constitution. 12%29%35%16%9%The maximum property tax rate for each local government was set in 1997 based on its needs at the time. Local voters are prohibited from increasing that rate regardless of how their circumstances have changed.10%20%38%28%5%The maximum property tax rate varies dramatically from one community to another, with some able to tax over 10 times more than others.7%19%30%38%7%Voter approved property tax levies expire in 5 years and must be renewed.28%48%13%5%6%Property taxes in Oregon are predictable. The strict limitations prevent property taxes from rapid increases when the real estate market is booming. 27%46%15%7%5%Compared to other states, Oregon’s property taxes are relatively low. Oregon now ranks among the 20 states with the lowest property taxes per person.30%37%16%10%8%Oregon’s property tax laws take control out of politicians’ hands. Government services must be budgeted within the limits and property tax rates cannot increase without a vote of the people.51%33%9%4%3%The majority of property tax revenue goes to fund local schools, police and fire protection.58%32%4%4%2%PROPERTY TAX REFORMSNow that you know a little more about property taxes in Oregon, which of the following four statements is closest to your feelings about property taxes in Oregon. Response Category N=600Oregon’s property tax system is working as intended and we should maintain it.7%Oregon’s property tax system has some flaws, but with some minor tweaks it can be updated to meet today’s needs.66%Oregon’s property tax system is fatally flawed. The only way to fix it is to start over from scratch.15%I don’t know enough about Oregon’s property tax system to know if it’s working or not.11%Don’t know2%Some people have ideas for changing how property taxes work in Oregon. For each of the following, please tell me if you would strongly support, somewhat support, somewhat oppose, or strongly oppose the proposal. (Randomize Q31-34)Response CategoryStrong SupportSmwt SupportSmwt OpposeStrong OpposeDon’t knowAllow local voters to extend maximum timeframe of voter-approved temporary taxes from 5 years to 10 years.14%28%24%28%6%Reset a property’s taxable value to its sales price when it is sold.27%37%15%14%7%Allow temporary taxes for local services to exceed statewide limitations, when approved by voters.25%39%15%18%4%Ensure all property owners pay their share of the temporary taxes approved by local voters for services.47%37%6%5%5%(Randomize Q35-38)Response CategoryStrong SupportSmwt SupportSmwt OpposeStrong OpposeDon’t knowAllow local voters to increase the amount an individual property can be taxed above the $5 per $1,000 limit for schools, with the money staying in the local school district. 30%37%13%17%3%Allow local governments and schools to increase their maximum allowable tax rates, which were set in 1997, if approved by a majority of voters.30%39%11%17%3%Amend the Oregon constitution to guarantee that all properties with similar market values are taxed at similar rates.44%35%8%9%4%Allow elected school boards to increase the amount an individual property can be taxed above the $5 per $1,000 limit for schools, with the money staying in the local school district.14%23%19%41%4%DEMOGRAPHICSThese last few questions are for statistical purposes only.Age (Don’t ask. Record from sample.)Response Category N=60018-246%25-3413%35-5442%55-6418%65+21%Gender (By Observation)Response Category N=600Male46%Female54%Do you own your home, rent your home, or something else?Response Category N=600Own home80%Rent home17%Something else2%Refused2%Which of the following best represents your total household income before taxes in the year 2011?Response Category N=600Less than $24,99913%$25,000-$49,99924%$50,000-$74,99922%$75,000-$99,99914%$100,000-$149,99911%$150,000+5%Refused11%What is the highest level of education that you’ve had the opportunity to complete? Response Category N=600Less than high school2%High school diploma18%Some college30%College degree27%Graduate/professional school22%Refused1%Do you have children under 18 living in your household?Response Category N=600Yes32%No67%Refused1%Area of state (Don’t read. Record from sample.)Response Category N=600Tri-County 43%Willamette Valley27%Rest of State30%Political party (Don’t read. Record from sample.)Response Category N=600Democrat40%Republican33%Independent/Non-Affiliated/other27%Voter history (Don’t read. Record from sample.)Response CategoryN=6000/1 of 421%2 of 416%3 of 422%4 of 440% ................
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