We are starting to hear from municipalities about the recent announcement from the DeSoto County Tax Assessor’s Office this week regarding the new property assessments formula mandated by the Mississippi Department of Revenue.
We first reported on Jeff Fitch’s report to the Board of Supervisors Monday that real property assessments will now be based on 85 percent of fair market value, not the 56 percent that had previously been used. Fitch told the board in presenting the real and personal property rolls that the county saw an increase of 24.59 percent, or $686 million in increased assessed value this year.
Property owners are now facing higher tax bills as a result, depending on how the county, municipalities and school district respond. In commenting about his report to DeSoto County News after reporting to the Supervisors, Fitch was confident the county would move to lower millage rates when the time comes to minimize the future impact. Cities and the DeSoto County School District will have to make separate decisions concerning their millage portion of your tax bill, Fitch pointed out.
Wednesday morning, Olive Branch became the first to respond, as Mayor Ken Adams released his view of the issue. Adams expressed confidence that his city would also be reducing its millage rate, which is currently the lowest among county entities at 38.5 mills.
The mayor first said the complete impact won’t be fully known until August when appeals to the county have been completed.
“This is new territory for cities,” Adams said. “I have not located a city official yet who has experienced a reappraisal to the level this one is, and we must be thorough in researching it. We will draft a balanced budget in September to be effective October 1.”
Adams said city officials also pay taxes and want what’s best for the city. He noted Olive Branch will receive less money from car tags and the impact from lower grocery taxes is still uncertain.
While not directly addressing car tags, the overall tax changes from House Bill 1 could lead to a reduction in the cost of vehicle registration fees, which are partly based on sales tax and ad valorem taxes.
“We must make sure we have ample revenue to operate city departments like police, fire, EMS, public works, parks/rec, utilities, etc. and we must operate the only airport in DeSoto County and the only municipal owned and operated natural gas company in the County (not to mention the largest in the State. Other cities use private for-profit gas companies.),” Adams said, adding public safety remains the number one priority for him, so a continued focus will be placed on enhancing police, fire, and EMS departments.
“Olive Branch has not had a millage increase in over 11 years and we have the lowest millage tax rate of all the cities in DeSoto County,” Adams said. “Obviously we must provide equivalent or preferably better services than other cities.”
The mayor said his city operates everything with a low millage rate very frugally, but a city with a higher millage rate will be able to reduce their millage more than Olive Branch.
“I am confident that the City of Olive Branch WILL REDUCE OUR MILLAGE RATE,” Adams concluded. “While we don’t know the amount until the assessments are final, I am also confident that Olive Branch will remain either the lowest or close to the lowest millage rate of all cities in our County.”
According to Adams, following are the municipal millage rates for county cities and the Town of Walls:
