MUSKOGEE, Okla. — Muskogee property owners could eventually see an increase in their property taxes as the city works to pay $29.25 million in longstanding legal judgments.
City Manager Kendal Francis sent a letter to residents Sep 1 explaining the potential financial impact and what the city planned to do before passing those costs on to taxpayers.
The city is facing three court judgments totaling $29.25 million, plus any applicable interest. Francis said the cases dated back nearly 20 years and involved property owners who claimed the city improperly condemned and demolished their properties.
“This is a serious challenge for our community, and I will not minimize its potential impact,” Francis said in the statement.
Based on information the city received from the Muskogee County Assessor’s Office, the potential increase would amount to approximately $450 per year in additional property taxes for every $100,000 of property valuation.
That means a property with a valuation of $200,000 could potentially see an increase of approximately $900 per year.
However, the increase has not been approved, and property owners would not see an immediate change to their tax bills.
The city would not have to decide whether to place the judgments on the Sinking Fund until June 2027. If that becomes necessary, Francis said the additional property taxes would begin in October 2027 and remain on the tax rolls for three years.
“I believe our responsibility is clear: protect our taxpayers as much as possible, meet the City’s legal obligations, and bring these nearly twenty-year-old cases to a close,” Francis said in the statement.
Between Sep 1 and June 2027, city leaders plan to explore other ways to pay the judgments and reduce or potentially avoid the amount passed directly to property owners.
Francis said the city was examining available city resources, financing alternatives, potential partnerships, payment structures and other legally permissible options.
“The City Council and administration will continue working through the available options carefully and transparently,” Francis said in the statement.
Clifton Haskin is your Muskogee reporter.
Is there something you think he should know about or look into?
You can email him at clifton.haskin@kjrh.com.
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