Understanding Property Taxes

Oregon’s current property tax system is shaped by two Oregon constitutional amendments passed in the 1990s: Measures 5 and 50. Prior to Measures 5 and 50, property taxes in Oregon were assessed under a levy-based system, with the levy amount applied to each property’s real market value (RMV). To meet community service demands, each taxing district calculated its own levy according to budgetary needs. However, both Measures 5 and 50 created a rate-based tax system while reducing taxable values and limiting tax rate growth. The rate became a constitutionally fixed amount, leading to a restriction of local government and school revenues.

The City of Florence and Florence Urban Renewal Agency are estimated to receive approximately 25% of the total taxes levied on Florence properties during the 2025-2027 biennium. The remaining taxes go to the county, school district, port, fire district, and other special districts. The projected current year property tax revenue for the City is $6.801 million over the biennium. This represents approximately 32.9% of the General Fund revenue and approximately 10.8% of total City-wide estimated revenue.

For a full understanding of how property taxes are incorporated into the City budget, their relationship to providing public safety services in Florence, and how Measures 5 and 50 impact property tax collection, please view the Property Taxes excerpt from the 2025-2025 Biennial Budget.