Most Oklahoma property owners have received their tax bills from county assessors across the state, of which half must be paid by the end of December. For Blanchard property owners and many other communities statewide, they've noticed a substantial increase in one category - the sinking fund millage rate. The millage rate for any particular fund remains relatively stable over time, except for the Sinking Fund. The monetary amount of ones property tax bill is calculated by multiplying the assessment ratio by the millage rate for each of the seven funds. The only millage category which regularly fluctuates upward or downward each year, is the school Sinking Fund. The school Sinking Fund acquires revenue, in order to make the appropriate annual school bond payments (to the lending institution which funded the new high school). The millage rate for the sinking fund changes annually, either up or down, so that the correct payment can be met. The Sinking Fund millage must change according to property values, which often does not change.
As an example, the 2017 Sinking Fund millage rate in Blanchard is 53.15 Mills. In 2008, Blanchard voters approved a School Bond Issue so that citizens could provide a new high school for Blanchard Public School students. In effect, by passing the bond referendum, Blanchard citizens "borrowed" the money to build a new high school for Blanchard kids. The board of education built the school over the next two years, and our kids were in the school by 2011. Property owners in Blanchard were then obligated to pay back the "loan" used to build the school. Each year, until the loan is paid off in 2019, citizens are obligated to make an annual bond payment. That annual payment to the lending institution can range from about $2 million to over $3 million each year, depending on financial conditions such as personal property values, percentage of collected taxes (schools may collect only 80% of taxes due, as several property owners may not pay on time), and uncollected tax which was counted on. Several corporations often challenge their property tax assessments, so may delay payment for up to 3 years. Also, in 2012, Oklahoma citizens voted to eliminate intangible property tax assessments for national and international corporations in Oklahoma, which effectively eliminated this revenue stream for local schools used to make bond payments. The elimination of intangible property taxation for corporations placed more of the burden on local property owners for paying off bond issues.
The reason(s) your property tax increased: I received several calls over the past month from concerned Blanchard citizens saying the McClain County Assessors Office had told them "it's the school's responsibility your property taxes increased, so call the superintendent". Several callers claimed the Assessors Office had placed blame squarely on the school. I don't know whether or not it is accurate county officials actually blamed the school, but I do know that the Sinking Fund millage increased - not by the school's choice, but because of unrelated factors as stated above. This is the mathematical explanation - The school must make a $3.1 million payment toward the new high school. The $3.1 million is paid directly from the Sinking Fund millage on your property assessment, so the Fund must accumulate exactly $3.1 million over the course of one year. Your Sinking Fund property tax is determined by multiplying your net assessed value in the upper right hand corner of your assessment (in my case, 41,100) x .001 = 41.1 x 53.15 (the Mills) = $2,184 (the amount I must pay to the school Sinking Fund in McClain County). This total is approximately $500 more than I had to pay last year, which is absurd, but necessary - since the school would probably default on the taxpayers loan, if it did not make the full payment. As a taxpaying citizen, I don't like the fact that the District Sinking Fund cannot collect enough ad valorem revenue from sources that were once present, but no longer are - or from those entities that delay or simply do not pay their share - but I must make up the difference for the slackers. The really bad news: I also pay property tax to the District Sinking Fund in Garvin County as well as Stephens County, so the property tax millage rate is, in effect, tripled (for me). There are also major corporate entities which hide property so that it is difficult to assess. As a matter of fact, if the county assessor's office could find and assess all the hidden corporate property - the Sinking Fund mills would be much lower - and we'd all have a Merry Christmas. The bottom line for tax payers is this - The District Sinking Fund millage rate is not determined by the school, it is determined by the bond payment that must be made to the lending institution. The good news for me and other personal property owners is that next year, the Sinking Fund Millage is just as likely to go down, as it went up this year. By the way, several school districts in Garvin County and McClain County (Lindsay, Purcell, Newcastle, etc) have Sinking Fund Millages on property assessments, so will have fluctuations up and down on property taxes.
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