Real estate transfer tax in Oregon: none, with one old exception

What does Oregon law say?

Two provisions work together.

• The Constitution. Article IX, Section 15 says the state, a city, county, district or other political subdivision “shall not impose, by ordinance or other law, a tax, fee or other assessment upon the transfer of any interest in real property, or measured by the consideration paid or received upon the transfer.” It “does not apply to any tax, fee or other assessment in effect and operative on December 31, 2009.” Voters adopted it on November 6, 2012, through an initiative petition.
• The statute. ORS 306.815 had already barred cities, counties and districts from taxing the transfer of a fee estate. It exempts a local tax in effect and operative on March 31, 1997 (subsection 4). It also says a fee or charge that becomes due at the time of transfer is not a “tax or fee upon the transfer” unless it is imposed on the right, privilege or act of transferring title (subsection 2).

The result is a ban on new transfer taxes and a freeze on old ones. A government that had no such tax by the 2009 date cannot add one under the current text.

Why do some closing charges not count as a transfer tax?

Closing statements list many charges tied to the sale, and not all of them are taxes. ORS 306.815(2) says a fee or charge that becomes due at the time of transfer is not a tax or fee upon the transfer unless it is imposed on the right, privilege or act of transferring title. Recording fees, which pay for filing the deed in the public record, are such a charge. A charge computed as a percentage of the sale price would be different: the Constitution names fees “measured by the consideration paid or received.”

Is there a tax in Portland or Multnomah County?

No transfer tax appears in the Multnomah County recording fee schedule. For a deed, the county lists $86 for the first page and $5 for each additional page. Those amounts follow from the statutes that set the clerk’s recording fee ($5 per page, ORS 205.320) and add $1, $10 and $60 per recorded instrument (ORS 205.323). Recording fees pay for keeping the public record. They do not rise with the price of the home.

The one old exception: taxes already in force

A local tax that was already in force before the dates above survives. The constitutional text we read does not name which local governments had one. Multnomah County’s recording schedule, which we did read, lists only recording fees. If you buy or sell in another county, ask that county’s assessment and taxation office or your title company whether a pre-2010 transfer tax applies, and at what rate.

What do you pay instead?

Without a transfer tax, the government charges at closing are mostly recording fees and any prorated property tax. Other costs, such as title insurance and escrow, come from private companies. See closing costs in Oregon for every line, and Oregon property tax for the annual tax that replaces a one-time charge.

Example: a $500,000 sale in Portland

This is an example, not a quote. It assumes a $500,000 price, a 3-page deed and a 20-page deed of trust.

The recording lines total $277. A $600,000 price with the same page counts would leave that total unchanged. Who pays the recording fees is a term of your purchase agreement. For a city overview, see buying in Portland.