Dear Neighbors,
I want to take a moment to share some information with you about the significant changes in property tax assessments, or the ad valorem tax formula, mandated by the State. This is a big shift affecting all cities across DeSoto County, including the City of Olive Branch.
Ad Valorem Taxes reflect on the property taxes based on the value of your home, land, or business property. Over time, property values change; just like our City has grown and changed. Maybe your neighborhood has grown, a new business has opened nearby, and maybe you’ve seen first hand that the real estate price has gone up or down. Reassessments allow for the County and State to look at current market values to make updates to the taxable value of every property.
Right now, we don’t know exactly what the revenue impact will be for our City. That’s because property owners still have the opportunity to appeal their new tax assessments. The County will hear those appeals in the coming weeks. By August, we expect to have more accurate numbers, and then in September we’ll put together a balanced budget that will go into effect October 1.
Because of those timelines, the Board of Aldermen and I are taking great care to understand the impact of these changes fully so that we can make the most responsible decisions possible. Like you, the Board and I are taxpayers ourselves. We share your concerns and your desire to see your tax dollars spent wisely. Taxes are your fiscal investment in your City to support its infrastructure, its future planning, and the recreational amenities you and your family love and enjoy. Taxes are a necessary part of keeping essential services running.
At the same time, other changes are also affecting city budgets like lower car tag fees and lower grocery taxes. While I’m glad to see those costs go down for families, we’ll have to plan carefully since they also mean less revenue to pay for city operations. We’ve been assured that cities will not lose revenue from grocery tax reductions, but we still have to see how it plays out in practice.
Our number one priority remains to public safety. We want to make sure our police, fire, and EMS teams have what they need to keep you and your families safe. We also must maintain and improve roads, parks, utilities, the airport, and our city-owned natural gas service.
It’s important to understand that Olive Branch has not raised our millage rate in over 11 years. In fact, we currently have the lowest millage rate of all cities in DeSoto County:
Horn Lake – 50 mills
Southaven – 46.78 mills
Hernando – 40.76 mills
Walls – 41 mills
Olive Branch – 38.5 mills
If you’re 65 or older or have a disability exemption on your home, your property value is frozen, so you won’t be taxed on higher values. In fact, you’ll likely see your property taxes go down.
While the differences in millage rates might not look huge on paper, they translate into very different budgets for each city. Because Olive Branch has operated very efficiently, there isn’t as much room to cut millage compared to cities with higher rates. While we won’t know the exact amount until all assessments and appeals are finalized, I’m confident that we will continue to remain the lowest tax rate in the County that is a great place to live, work, worship, and play.
I appreciate your patience as we work through this process. Please know that we are doing everything possible to balance fairness to taxpayers with the responsibility to keep our city running strong. If you have questions or concerns, don’t hesitate to reach out.
Thank you for your understanding and for being engaged in the future of Olive Branch.
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