B&H University

Understanding Property Taxes

November 7, 2013

Changed Property Ratio (“CPR”)

Clackamas County 2013 2012 2011 2010 2009 2008 2007 2006 2005

Residential (1XX) 0.894 0.9020 0.8210 0.7370 0.6500 0.5550 0.5440 0.6000 0.6840

Comm/Local Ind (2XX) 0.903 0.9030 0.8860 0.8110 0.6120 0.5360 0.5630 0.6470 0.6850

State Industrial (3XX) 1.000 1.0000 0.9610 0.8700 0.6880 0.6470 0.6730 0.7000 0.7550

Multifamily (7XX) 0.807 0.8670 0.8990 0.8830 0.7210 0.6700 0.6730 0.7780 0.8150

Multnomah County 2013 2012 2011 2010 2009 2008 2007 2006 2005

Residential (1XX) 0.6972 0.7279 0.6931 0.6040 0.5515 0.5046 0.5159 0.5697 0.6150

Comm/Local Ind (2XX) 0.5699 0.5413 0.4883 0.4549 0.4425 0.4345 0.4660 0.5091 0.5353

State Industrial (3XX) 1.0000 1.0000 0.8376 0.8750 0.7754 0.7649 1.0000 1.0000 1.0000

Multifamily (7XX) 0.5837 0.5998 0.5644 0.5420 0.5461 0.5500 0.5639 0.5709 0.5934

Washington County 2013 2012 2011 2010 2009 2008 2007 2006 2005

Residential (1XX) 0.822 0.8510 0.7870 0.7200 0.6580 0.5770 0.5430 0.5720 0.6970

Comm/Local Ind (2XX) 0.741 0.7180 0.6550 0.6070 0.5470 0.5290 0.5750 0.6060 0.6510

State Industrial (3XX) 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

Multifamily (7XX) 0.630 0.6710 0.6850 0.6770 0.6280 0.5900 0.6490 0.6940 0.7540

Washington   Multnomah   Clackamas

Proforma Income $ 2,345,600 $ 2,345,600 $ 2,345,600

Proforma Expenses $ (703,680) $ (703,680) $ (703,680)

Proforma NOI $ 1,641,920 $ 1,641,920 $ 1,641,920

Base cap rate 5.50% 5.50% 5.50%

Effective tax rate 1.26% 1.41% 1.55%

Overall cap rate 6.76% 6.91% 7.05%

Real Market Value $ 24,288,757 $ 23,772,800 $ 23,278,171

x CPR 0.6300 0.5837 0.8070

Max. Assessed Value $ 15,301,917 $ 13,876,183 $ 18,785,484

Assessed value $ 15,301,917 $ 13,876,183 $ 18,785,484

x Actual tax rate 2.00% 2.41% 1.93%

Projected taxes $ 306,038.34 $ 334,416.02 $ 361,620.57

Impact of CPR on New Construction

Measure 5 Compression Calculator

Property:ABC Corporation File No.:123456

Account No.:R000000 Tax Year:2013-14

Assessed Value Sch. Tax Rate M 5 Rate Trigger RMV Current RMV

$3,047,280 $19,921.80 0.0065376 0.005 $3,984,360 $3,984,360

Assessed Value Govt. Tax Rate M 5 Rate Trigger RMV Current RMV

$3,047,280 $39,843.60 0.0130751 0.01 $3,984,360 $3,984,360

Revised RMV Rev. Sch. Rev. Govt.   Total Savings/Refund

$3,500,000 $17,500.00 $35,000.00 = $7,265.40