Salem, OR – Oregon Governor Tina Kotek has announced her support for a temporary property tax levy aimed at addressing a $14 million budget gap facing the city of Salem. The levy, which would charge property owners 98 cents per $1,000 of assessed value, is expected to cost the average Salem homeowner about $229 annually. The funds are critical for keeping the city’s essential services, such as libraries, parks, and the senior center, operational.
Kotek expressed her endorsement of the levy, emphasizing its importance in sustaining vital community services. “They’ve made a strong case that [the levy] will help keep the senior center open, the libraries open,” Kotek told reporters. “It’s a really important measure.” However, the governor acknowledged that, as a resident of the state-owned Mahonia Hall, she would not personally be required to pay the levy, as state properties are exempt from local property taxes. This exemption, she noted, is part of the reason Salem is facing such financial difficulties.
State government buildings make up roughly 8% of the property in Salem, yet the city provides essential services, including police and fire response, to these properties without receiving any tax revenue in return. The situation has led to calls for the state to contribute more directly to the city’s budget. Kotek, while supporting the levy, reiterated her stance on the need for the state to assist Salem financially, given the significant share of state-owned property in the city.
“I have been publicly supportive of the state helping the city of Salem out,” Kotek said. “We do have obviously a lot of state buildings that don’t pay local property tax. We do need to have a conversation.”
While the governor has publicly voiced her support, she has yet to see a formal proposal from the state legislature that would address Salem’s financial struggles. A bipartisan group of legislators, led by Rep. Tom Andersen, D-Salem, has introduced House Bill 2531, which would allocate $7 million annually to the city to support emergency response services related to state-owned properties. However, the bill did not receive a hearing before a legislative deadline, and Andersen confirmed that he has not yet discussed the proposal with Governor Kotek.
Despite the setback, Andersen remains hopeful that the proposal will gain traction. His next step is to seek support from the Joint Ways and Means Committee to include the request in the state’s budget or the “Christmas tree bill”—an end-of-session bill that includes various legislative priorities. Andersen pointed out that $7 million is a relatively modest sum in the context of Oregon’s state budget.
“This $7 million, we can find that in the legislative couches,” Andersen remarked.
The proposal has garnered support from other local representatives, including Democratic Sen. Deb Patterson, Republican Rep. Kevin Mannix, and Democratic Rep. Lesly Muñoz, all of whom represent portions of Salem. Additionally, Republican Rep. Ed Diehl and Democratic Rep. Paul Evans, from neighboring districts, are co-sponsoring the bill. Andersen and other proponents of the measure argue that Salem plays a critical role in providing services to state-owned buildings, and the city should be compensated for its efforts.
In a recent testimony before the legislature, Andersen highlighted the historical importance of the city’s emergency services. He showed a photo of the Oregon State Capitol burning in the 1930s, noting that it was the Salem fire department that saved lives during the disaster. “The city provides valuable, extremely needed and necessary services to the state property within the city limits,” Andersen emphasized. “That should be acknowledged, and there should be some sort of payment from the state to the city for those services.”
As the legislative session continues, it remains to be seen whether the proposed levy will gain enough support from Salem residents and whether lawmakers will ultimately act to address the city’s financial challenges. For now, Kotek’s backing of the levy provides a clear signal that the governor is committed to finding ways to support the capital city amid its budget crisis.
