Property Improvement Triggers Tax Cap Removal in Oklahoma County

The Oklahoma County Board of Equalization (BOE) held a special meeting on June 10, 2025, where a significant discussion centered on property tax assessments and the implications of property improvements on taxable values.

Michael, a representative from the BOE, clarified the mechanics of property tax caps during the meeting. He explained that while there is a 3% cap on property value increases each year, this cap is lifted when property owners make significant improvements to their homes. "Anytime you make valued improvements to your property, the cap comes off," he stated, emphasizing that the new construction value is added to the property’s assessed value, which then resets the cap for future years.

This discussion highlighted the disparities in property tax assessments among neighbors, particularly when one property has undergone renovations while others have not. Michael pointed out that homeowners cannot directly compare their taxable values if they have made improvements that removed the cap, leading to potential confusion about the differences in property values.

The meeting also touched on broader trends in property values, with Michael noting that since February 2021, the average fair market value of homes in Oklahoma County has increased by 44%. In contrast, some properties, including those discussed in the meeting, have seen much lower increases, raising concerns about depreciation and fairness in assessments.

As the BOE continues to navigate these complex issues, property owners are encouraged to understand how improvements affect their tax assessments and to stay informed about the ongoing changes in the local real estate market.