3% & 5% Limitations
Helpful Information on the 3% & 5% Limitation
The limitation on assessment increases is not an automatic increase. Oklahoma County residents have saved more than $766 million in lower property taxes since the initial 5% limitation was overwhelmingly passed by voters in 1996. Annual property sales determine if current market prices have increased or decreased. For example if market conditions determine the value has gone down 10% then our records for that property will be changed to reflect that decrease.
In November of 2012 Oklahoman's overwhelmingly passed State Question 748. This State Question amended Article X § 8B of The State Constitution. This amendment extends additional tax savings to agricultural land and also to properties that qualify for homestead exemption. These two classifications of property now have a 3% limitation to increases in their fair cash value. Previously increases to these same property values were not to exceed 5%.
Article X § 8B. Limit on Percentage of Fair Cash Value of Real Property
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 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 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. If title to the property is transferred, changed, or conveyed to another person, the property shall be assessed for that year based on the fair cash value as set forth in Section 8 of Article X of this Constitution. If any improvements are made to the property, the increased value to the property as a result of the improvement shall be assessed for that year based on the fair cash value as set forth in Section 8 of Article X of this Constitution. The provisions of this section shall not apply to any personal property which may be taxed ad valorem or any property which may be valued or assessed by the State Board of Equalization.
If you currently hold properties that meet the criteria mentioned above, no further action should be required. However, if you are eligible, but do not currently have homestead exemption on your primary residence an application for this benefit and the 3% limitation that coincides with it is required. Download applications here or to learn more about homestead exemption please go here.
Feel free to call us at 405-713-1249 Monday through Friday 8:00 a.m. to 4:45 p.m..