There is no effect on the taxable value of land as a result of solely including property in urban reserves. For private property, the taxable value is equal to the property’s ‘assessed value,’ which is, by law, lower than the market value of the property. Unless property redevelops or changes use, Oregon state law limits the increase in a property’s assessed value to 3 percent per year, and it cannot exceed the property’s real market value. It is normal for the market value of a property to fluctuate year-to-year and this does not trigger a recalculation of the assessed value.
If a property in urban reserves was later brought into the UGB it is likely that its market value would change, but this alone would not necessarily change the tax rate or the assessed value. If a property is annexed into the City limits, the tax rate applied to the taxable value of the property will increase, and the overall tax burden will increase accordingly. See the property owner matrix for more information.