Revenue Reform Resources

Oregon's current property tax system was created more than thirty years ago, and it is no longer working for the communities it was meant to serve. The costs for local services like fire protection, roads, libraries, and parks are rising at real-world speed, but rules set in the 1990s are artificially capping the funding available for these services. That growing gap has become a barrier to delivering the things our community needs. 

The inflexibility in the system is forcing cities and towns across the state to cut services residents depend on. And because a property's taxable value is still tied to what it was worth in 1995, neighbors in similar homes can pay very different tax bills for the same services. 

After more than a decade of finding efficiencies and absorbing cuts, communities of all sizes are reaching the limits of what local budgets can provide. It's time to modernize a tax system that no longer fits today's communities. 

The LOC’s Board of Directors has identified revenue reform as a priority and is funding efforts to study the viability of reforms, including changes to the property tax system. The LOC has engaged with a consultant to develop a communications plan and materials, which will be available for distribution by the end of 2026.  

To inform this work, the LOC hosted focus groups, conducted public opinion research, and created the Oregon Local Revenue Tools Guidebook. This guidebook builds on insights and themes from the 2024 revenue reform research process. Some key findings informing this guidebook include the following: 

• Many Oregonians believe the property tax system is outdated and does not work well. 
• They are cautious about changes that could raise their taxes. 
• Oregonians generally believe municipal revenues are sufficient to provide ongoing city services. 
• Public support is greater for targeted changes, especially those that tax new developments, visitors and tourists, and large businesses.