Tax Reset for Santiam Canyon Wildfire Survivors Signed into Law

Santiam Canyon wildfire survivors have something to celebrate this month as Senate Bill 1545 was signed into law.   

Senate Bill 1545 addresses the urgent need to reset property tax assessments for Santiam Canyon residents affected by the devastating 2020 Labor Day wildfires. Marion County worked diligently alongside the bill’s sponsors to get it across the finish line this legislative session.

“As a Commissioner, I have witnessed firsthand the immense challenges faced by individuals and families who lost their homes in the fires and subsequently had to rebuild,” said Commissioner Kevin Cameron, Chair. “Senate Bill 1545 offers a lifeline to those struggling to rebuild by mitigating the burden of increased property taxes.”

Under Oregon's current tax laws, property tax assessments are subject to certain limitations, with the maximum assessed value of unchanged properties increasing by no more than 3% each year. However, legal or physical changes to the property, such as rebuilding after a wildfire, are exceptions to this limit, often resulting in significant property tax increases for affected residents.

Senate Bill 1545 provides much-needed relief to fire-impacted residents by allowing them to reset their property taxes to the homestead's real market value for the 2020-2021 tax year, based on the original square footage of their original residence. This measure has the potential to lower property taxes back to pre-fire rates for those who have rebuilt or plan to rebuild their homes on the same lot.

“This bill will be monumental for survivors already struggling to make ends meet after the fires,” said Senator Fred Girod, the bill’s chief sponsor. “Resetting the assessed value of homes rebuilt after being destroyed in the wildfires acknowledges the financial hardship faced by property owners who have already endured the trauma of losing their homes.”

While SB 1545 grants counties the discretion to reset assessed values, it does not mandate it. However, providing counties with this option is a crucial step toward ensuring fairness and equity for fire-affected residents. It is imperative that we support these individuals and families as they work to rebuild their lives and communities in the aftermath of such devastating loss.