On Real Estate & More – May 2026

IN 2025, the Oregon Legislature passed Oregon House Bill 3940, a major funding measure designed to stabilize wildfire prevention, response, and recovery efforts statewide. For rural property owners in Southern Oregon, the bill has real implications.

While HB 3940 does not directly raise property tax rates, it changes how wildfire protection costs are funded and distributed. Because Southern Oregon faces some of the highest wildfire risks in the state, rural property owners in the area are more likely than urban homeowners to experience the financial effects over time.

Southern Oregon has been at the center of major wildfire events in recent years, including the Almeda Fire, which highlighted the need for more reliable wildfire funding and preparedness. In response, the state moved toward a long-term funding model for wildfire protection. HB 3940 represents a shift from emergency funding after fires to ongoing investment in prevention, mitigation, and being ready to respond.

For rural property owners, this means wildfire protection will become a permanent ongoing cost rather than an occasional emergency expense. The key financial changes will be fire protection assessments, not traditional property taxes.

HB 3940 includes changes to:

  • Forest protection district assessments
  • Minimum fire protection charges
  • Funding formulas for wildfire readiness
  • Cost-sharing among landowners and agencies

In practical terms, rural property owners may notice adjustments to annual fire protection assessments, changes in acreage-based fees, updated billing structures from fire districts or the Oregon Department of Forestry and gradual increases in wildfire-related service costs. These charges may appear on property tax statements or as separate invoices, depending on the district.

Property owners with five or more acres, forestland or wooded property, rural residential or agricultural land, or property outside city limits are the most likely to see incremental cost adjustments. This is particularly true in areas served by the Oregon Department of Forestry or rural fire protection districts, where wildfire readiness costs are closely tied to acreage and risk level.

Owners of homes on small acreage may see modest changes over time, especially if their property is in a wildfire-prone zone or their local fire district updates funding levels. Most homeowners should expect gradual increases rather than sudden spikes.

HB 3940 also created programs designed to reduce wildfire risk and support property owners financially.

These programs may include grants or cost-sharing for:

  • Defensible space improvements
  • Vegetation management
  • Fire-resistant roofing or siding
  • Fuel reduction and property cleanup

In wildfire-prone regions like Southern Oregon, these programs can help reduce long-term risk, improve property insurability, maintain property value, and lower potential loss during wildfire events.

HB 3940 does not change Oregon’s property tax limits, and it does not create a new statewide property tax. However, rural property owners in Southern Oregon may see indirect financial impacts through fire protection assessments, local district levies, service fee adjustments, or wildfire mitigation requirements. These costs are typically incremental and tied to local service levels rather than statewide tax policy.

The long-term trend is clear: wildfire protection is becoming a permanent infrastructure cost in rural Oregon.

For property owners in Southern Oregon, this likely means gradual increases in wildfire-related assessments, more structured funding for rural fire protection, greater emphasis on defensible space and mitigation, and continued pressure on rural fire district budgets.

For rural property owners in Southern Oregon, House Bill 3940 represents a shift toward long-term wildfire preparedness funding rather than an immediate property tax increase.

Understanding these changes now can help property owners plan for future operating costs and manage rural property more effectively. If you want more information about these changes, reach out to your local fire protection district or the Oregon Department of Forestry.