What is the term for the reduction in taxes to the limits when school or general government taxes exceed their limits?

Prepare for the Oregon Property Appraiser Exam. Use flashcards and multiple choice questions with hints and explanations for each question. Get ready for success!

The correct answer is compression, which refers to the mechanism in place to limit the amount of property tax revenue that can be collected when local tax collections exceed legal rate limits, particularly in regard to school or general government taxes. This process ensures that tax revenues do not surpass the thresholds set by law, effectively reducing taxes for property owners when necessary.

The concept of compression is grounded in the principles of tax equity and fiscal responsibility. It aims to prevent excessive taxation and to maintain balance within the local government budget while ensuring that essential services, like education, are still adequately funded within the constraints of taxpayers’ financial burdens.

The other terms do not pertain to this specific outcome. Assessment relates to the process of determining the value of property for taxation purposes, appraisal is about estimating a property's market value, and tax relief generally refers to broader measures to reduce tax burdens rather than specifically addressing the limits on tax collection as seen in compression. This makes compression the precise terminology for the scenario described in the question.

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