Assessor briefs board on CAFA application, supports House Bill 3518 to boost assessment-and-tax funding

Joe Davidson, Lincoln County Assessor, presented the county’s application for the 2025–26 County Assessment and Tax Fund (CAFA) and reviewed the program’s funding mechanics and a pending legislative proposal to increase support.

Davidson explained CAFA’s two funding sources at the county level — a portion of recording fees (currently $9 per recorded document allocated to the local CAFA account) and a share of delinquent property tax interest — and summarized how those local deposits are pooled and distributed by the Oregon Department of Revenue. He said the Department of Revenue takes a 10% administrative deduction to support state appraisal responsibilities; the remaining funds are distributed to counties based on claimed assessment-and-tax (A&T) expenses submitted in the CAFA application.

Davidson showed historical charts demonstrating that CAFA revenue has remained relatively flat while counties’ assessment expenses have risen, noting the county is now a “donor” county that contributes more to the pool than it receives back. He described House Bill 3518, which the assessor and several counties have supported at the legislature. The bill would (1) double the portion of recording-fee revenue dedicated to CAFA (from $9 to $18 per recorded document), (2) replace the delinquent-interest allocation with a 0.3% holdback of total property tax collection that would be directed to A&T functions, and (3) restore a state biennial payment (proposed at $10,000,000) to CAFA. Davidson said modelers expect the bill could increase CAFA coverage of county A&T expenses from roughly 11–12% toward about 30%.

Commissioners discussed the proposal and thanked the assessor for outreach to the legislature; the board signaled consensus to move the CAFA application forward for a decision on April 16. Davidson reminded the board the CAFA application is due to the Department of Revenue by May 1.