Voters axe tax

By Michelle Charles
Journal Staff Writer

Tuesday night, Payne County voters approved a proposition that could make personal property tax bills a thing of the past for most people.

The vote was:

• Yes- 5,160 (58.94%)
• No- 3,592 (41.04%)

Household goods owned by heads of households and livestock employed in the support of families are now tax exempt.

Commercial property and farm equipment will still be taxed as before.

The measure requires adjusting the county’s millage rate to ensure local governments don’t suffer from a loss of revenue.

Payne County Assessor Jacquie Rose repeatedly said the measure would be completely revenue neutral but county property tax valuations affect more than revenue.

The ability of municipalities and school districts to borrow money by issuing bonds is based on the overall value of property in the county.

A reduction in the amount of property being taxed leads to a decrease in the overall valuation, reducing bonding capacity.

After initially voicing concerns about school funding and bonding capacity, Stillwater Public Schools Chief Financial Officer Phillip Storm said the increased millage rate and an adjustment in the school district’s debt cap will take care of the problem.

Rose said she favored making the change because it would apply the tax more fairly over all property owners.

As it was calculated previously, most renters didn’t pay.

Now the tax will be added to the owner’s property tax bill, ensuring payment. The increase should be about $6 per thousand, Rose said.

Rose and Treasurer Bonita Stadler both said they expected to realize savings in supplies, postage and payroll if they were able to stop preparing, sending and collecting separate personal property tax bills.

Rose said she expects to save at least $8,000 in the Assessor’s office alone.

This is part of the July 29, 2010 online edition of The Journal.

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