Did your property taxes go up? Mine did and significantly. Property taxes increase because of two things, valuations and the millage rate. Property values have been going up in Oklahoma for the past several years. The citizens of Oklahoma voted in 1996 that the tax assessor could not increase valuations more than 5% per year, so even if a property increased 10% in a certain year, the valuation would not increase more than 5% thus holding done property taxes. In 2013, the people voted to change the increase allowed to only 3% per year provided the property was homesteaded. If the property was not homesteaded it could continue to increase by the 5% maximum. The exception would be when a property changes owners at which time the property is to be assessed at fair market value. See below:
“Despite any provision to the contrary, on and after January 1, 2013, the fair cash value of any parcel of locally assessed real property shall not increase by more than five percent (5%) in any taxable year; provided, if such property qualified for a homestead exemption or is classified as agricultural land, any increase to the fair cash value of such locally assessed real property in a taxable year shall be limited to three percent (3%). The provisions of this section shall not apply in any year when title to the property is transferred, changed, or conveyed to another person or when improvements have been made to the property.” Treasures office
The valuation of a property is only part of the equation on figuring your property tax amount. The millage rate is the amount per $1000 used to determine the tax amount. If the millage rate goes up your taxes will go up even if the valuation stays the same. Example: The millage rate for the City of Moore rose from 116 in 2015 to 128.22 in 2016. Now multiply that by an increase in valuation and you can have a large increase in property taxes. You could easily see a 10-25% increase in property taxes.
The reason for the increase in millage rate for Moore in 2016 is bonds that were voted in by the residence of Moore. It could also be costs incurred by the city which cause property taxes to go up.
If you have a mortgage with an escrow account and your property taxes increase, your mortgage is going to go up. So what should you do? I will address this question in my next blog.
If you are looking for a Realtor to help you buy or sell that cares and is looking out for your best interest, call me Sandi Walker 405-213-2992. I would love to help you.