Early February marks the annual Great Homeowner Freakout. It happens each year when property owners receive their property valuations in the mail for tax purposes. They open an envelope and BAM …
They owe more money than they did last year. Sometimes a lot more money.
Property taxes are set each year by counties. That money goes toward municipal services, school districts and libraries — a lot of the things that make up the fabric of the community.
In Gov. Kevin Stitt’s final State of the State speech earlier this week, he called for a statewide freeze on property taxes. Some of you might be willing to sign off on it after seeing your new property valuation.
Here’s a breakdown of how they’re set.
First, county assessors estimate the assessed value of property based on its market value. Market value is determined through sales of similar properties — those comparable in square footage, features and location.
For an example, the Tulsa Flyer looked at the taxes of a house we picked at random in south Tulsa near Minshall Park.
Counties use what’s called a “total taxable value.” That’s the county’s idea of the fair market value of the house, taking into account a state law that caps the maximum property tax increase in any given year.
Our sample house has a fair cash value of $304,100, but its total taxable value is $219,474.
The taxable value of a property is determined by multiplying the assessed value by an assessment ratio, which is set by the county.
Counties can also set different assessment ratios for different types of property. In Tulsa County, the assessment ratio is 11%. The total taxable value of the house is multiplied by the county’s assessment ratio to determine the value the county will base its assessment on.
To calculate the estimated property taxes, you’ll take the property’s net assessed value at $23,142 and multiply it by the tax rate, which is assessed in mills. Mills are worth $1 in tax for every $1,000 in taxable value.
Different municipal entities have different mill rates. They stack up to determine the total tax bite on any given property. The total millage for the sample property is 136.74 mills, which brings the estimated taxes to $3,301.18.
But … Then there’s the homestead exemption, which provides certain legal protections, but also lets homeowners living in their primary home deduct $1,000 from the gross assessed value.
By applying the homestead exemption to the gross assessed value, the property’s net assessed value becomes $23,142, which means a total tax bill of $3,164.
Head hurt yet? Here’s the hammer: The previous year’s taxes were $2,945. The house’s taxes increased 7.4 percent in a year, or nearly three times the current U.S. inflation rate.
Want to see how your house’s taxes were calculated? It’s public information – and searchable – at the Tulsa County Assessor.
Homeowners can choose to appeal the valuation through the county assessor’s office. There are three levels of appeal: an informal appeal, a formal appeal through the county’s Board of Equalization and through appeals filed at the district court level. The appeal has to begin within 30 days of the valuation notice and in Tulsa County It starts with this form.
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