Economy down, property taxes up

By Mick Hinton

Despite a sharp economic downturn here and across the nation, many Cleveland County residents will be receiving notices showing that their property taxes are increasing.

Cleveland County Assessor David Tinsley is sending out about 60,000 notices that show property tax increases, with the first batch being mailed Friday and Saturday.

Several notices reflect a 5 percent hike due to increases in property values.

This first mailing will include residents who live in the Norman and Noble school districts. Also included will be many property owners in the Moore school district.

About 75 percent of these property taxes collected by the county go to local schools.

The second batch of tax notices will be mailed in early March to other county residents including those in Lexington.

These property tax hikes have pitted Republicans against Republicans, both at the state and local levels.

Republican Tinsley said the state constitution states that he must raise ad valorem (property) taxes each year until assessment of properties including homes and businesses match the market value of nearby properties.

"I am only following the law," Tinsley said.

"Our charge is to assess properties at market value," Tinsley said. In 1996, the people voted to limit those increases to a maximum of 5 percent annually, until the assessments reach fair market value.

Fellow Republican Bobby Cleveland said he doesn't think the law compels assessors to raise taxes each year.

"This tax increase is simply wrong," said Cleveland, who is county Republican Party chairman.

This is occurring despite an economic downturn here and across the nation, Cleveland said.

Cleveland's reading of the law is that assessors have the option of raising taxes, provided they do not go up by more than 5 percent a year.

Cleveland is mayor of Slaughterville and his son, Rod Cleveland, serves as a Cleveland County commissioner, although he said his views reflect only his personal opinion.

Meanwhile, a state tax commission official said the law requires assessors to raise property taxes by 5 percent annually until these properties reflect the market values in their area.

Kenny Chuculate, deputy director of the Ad Valorem Division of the state Tax Commission, said an attorney general's opinion issued in 2001 clearly states that assessors must raise property values by 5 percent annually, until market value is reached.

However, the law does not authorize an assessor to increase property values by more or less than 5 percent annually.

So Cleveland thinks the law should be changed to cap annual property tax increases at 3 percent.

At the state Capitol, some Republicans agree with Cleveland while others do not.

Republican state Rep. David Dank of Oklahoma City came out verbally swinging at House of Representatives Speaker Chris Benge who has been reluctant to reduce taxes now, amid state budget shortfalls.

Referring to Benge, Dank said, "Right now one man is standing in the way."

The lawmaker said Benge should step aside and allow the Legislature to limit the annual tax hike to 3 percent annually, and send the proposition to a vote of the people.

Benge, also a Republican, said lawmakers must take "a fiscally responsible approach to both government spending and tax relief."

However, Senate Republicans have adopted as part of their platform an effort to drop the 5 percent to 3 percent annually.

Benge pointed out that the state faces a budget shortfall of at least $729 million for the fiscal year that ends June 30.

It is estimated that next year's state budget will be $1.3 billion less than the current budget of about $7 billion.

"There is no doubt that Rep. Dank's measures (would) directly affect local school budgets, at a time when schools are already struggling," Benge said.

However, Dank contends that reducing the annual rate to 3 percent would not hurt schools because property values would not change. If property values could increase by 3 percent -- rather than 5 percent -- annually, it would just slow down the amount of time it would take to get property up to its market value.

Stephen Ellis of Norman, whose two daughters attend Lincoln Elementary School, is alarmed that some politicians at the state Capitol are talking about reducing money going to public schools.

"That's a nutty view, if you ask me," Ellis said.

"I can't see how the schools can afford to have less money," said Ellis, a former president of the Lincoln Parent-Teachers Association.

Ellis said he was concerned when the taxes on his home were increased, so he went to the assessor and complained.

"The assessor's office gave me a walk-through to explain the increase," said Ellis.

He learned his increased tax assessment was based on market sales in the neighborhood.

This also means that the value of his property had increased, Ellis said, which is a good thing.

"It's hard to see that anything is more important than the schools," Ellis said.

He said Lincoln school has a high number of students who qualify for free or reduced school lunches. Lincoln also is a school that has to provide for special needs children.

One of the school's strong points is that Lincoln Elementary has a diversified student population, Ellis said, including several whose parents work at the University of Oklahoma. Ellis himself is an OU assistant professor.

Ellis said there is considerable turnover among teachers' aides assigned to the program because they are paid so little money.

Ellis' wife Cynthia Rogers agreed that now would be the wrong time to reduce school funding which she says is already inadequate.

"You get what you pay for," Rogers said.

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