What is Measure 5?

The Oregon Constitution sets limits on the amount of property taxes that can be collected from each property tax account. The limits are often referred to as “M5 Limits”. To calculate these limits, taxes are divided into two categories, education and general government. Some taxes, usually for general obligation bonds, are not subject to limitations. The limits are $5 per $1000 of Real Market Value (RMV) for education taxes and $10 per $1000 of RMV for general government taxes.

If taxes in either category exceed the limit for that property, the taxes are reduced or “compressed” until the limit is reached. Local option taxes are compressed first. If the local option tax is compressed to zero, and the limit still hasn’t been reached, the other taxes in the category are proportionally reduced.