Our County

Compression is the process used to reduce property taxes to the Measure 5 limits. Prior to

Measure 5, compression did not exist. Reductions in taxes due to compression are the

difference between what taxing districts wish to raise through property taxes (tax extended)

and the amount they actually raise (tax imposed).

Measure 5 introduced limits, phased in between 1991–92 and 1995–96, on the taxes paid

by individual properties. The limits are $5 per $1,000 real market value for school taxes

and $10 per $1,000 real market value for general government taxes. These limits are applied

only to operating taxes, not bonds. For each property, the assessor compares education

taxes with the education limit and other governmental taxes with the general

government limit. If property taxes exceed the Measure 5 limits, then taxes are compressed

in a specific order. First, local option taxes are reduced, possibly to zero. If there

are no local option taxes or they have been reduced to zero, the tax rates from the permanent

It is important to note that while property tax rates under Measure 50 are applied to a

Measure 50, this distinction was unnecessary because assessed value equaled real market

value. While the Measure 5 limits still apply under Measure 50, the effect of the Measure 5

limits is minimal for most properties because Measure 50 substantially reduced property