Oregon Property Tax Follows Measure 5 and Measure 50

Oregon was the first state in the country to require statewide land use planning, and the exam tests the regulatory consequences of that decision across every property transaction type.

The PSI exam for Oregon tests 50 state specific questions alongside 80 national questions with a 75% passing threshold. Measure 5 and Measure 50 property tax rules, Oregon's statutory agency disclosure framework, and prior appropriation water rights are three areas where state-specific law produces answers that generic study materials get wrong. Here's the thing most people miss: Oregon's tax structure isn't complicated because Oregon wants to be difficult. It's the compounded result of two separate voter initiatives that were never designed to work together cleanly.

Property Taxes (Measure 5/50)

Oregon's property tax system operates under two constitutional amendments. Measure 5 from 1990 and Measure 50 from 1997 together create a tax calculation the OREA tests because no other state uses the same structure.

Measure 5 caps tax rates at $5/$10 per $1,000 of real market value, while Measure 50 froze assessed values at 90% of 1995-96 levels with a 3% annual growth cap, the exam tests how these two measures interact to determine actual tax bills.

The PSI exam will ask how Measure 5 rate caps interact with Measure 50 assessed value limits, how to calculate a property's tax bill when assessed value is well below market value, and what the 3% annual growth cap means for a recently sold property. Why do Oregon tax bills confuse everyone? Because Measure 5 and Measure 50 work together about as smoothly as two people sharing one umbrella.

Agency Disclosure

Oregon's statutory agency framework defines three distinct relationship types: seller's agent, buyer's agent, and disclosed limited agent. Each carries different disclosure forms and delivery timing that the OREA tests with precision.

Oregon requires specific written agency disclosure forms at defined points, and students confuse the timing requirements and differences between seller's agent, buyer's agent, and disclosed limited agent under Oregon's statutory framework.

Know when each form must be provided, what each relationship type is called under Oregon statute, and when a disclosed limited agent differs from a dual agent in terms of obligations owed. The OREA exam uses Oregon's specific terminology throughout. The exam doesn't reward overthinking on terminology: know the three names Oregon actually uses and apply them precisely.

Water Rights

Oregon's prior appropriation system carries a "use it or lose it" rule with a specific abandonment trigger. Beneficial use must occur at least once every five years or the water right is forfeited, a detail that national prep courses on prior appropriation never include.

Oregon follows prior appropriation with a "use it or lose it" rule requiring beneficial use at least once every five years or the right is forfeited, the exam tests that water rights transfer with the land unless specifically severed.

The OREA exam tests whether water rights transfer automatically with a deed, what the five-year beneficial use requirement means for a water right's validity, and how a seller's failure to use a water right for several years affects what a buyer actually receives at closing.

Prior appropriation governs water rights across the Pacific Northwest, but each state applies it differently. Montana is mid-stream in a multi-decade water rights adjudication, and Washington tests prior appropriation alongside groundwater permit requirements. Oregon's water rights law and its interaction with property transfers is the specific topic the Oregon exam focuses on.