Is it worthwhile to protest property taxes in Oklahoma for 1-4 unit properties?

[Derrek H.]

Hi BiggerPockets Community,

Question: Is it worthwhile to protest property taxes in Oklahoma for non-homestead, 1-4 unit properties (ie, small residential properties) only if you can limit the increase in taxable value to less than 5%? (I have an SFR rental in Oklahoma.)

I know that taxable real estate values for investment property (AKA non-homestead property) in Oklahoma are limited to a 5% increase per year, which essentially limits the property tax bill increase to 5%. (Please correct me if this is wrong.)

Assuming that non-homestead property taxes cannot go up by more than 5%, does that also mean that in order for a taxable property value protest to reduce your tax bill, you would need to convince the tax assessor/appraisal review board to agree to a new taxable value that is less than 5% higher than your previous value?  

For example, assume my house was assessed at $100,000 in 2022 and my property taxes were $1368. (I am using a fake house value to make this clear. But my Assessment Percentage is actually 12%, and my millage rate is actually 114.94 per 1000.)  $100,000 x 12% Assessment Percentage = $12,000. $12,000 x .11494 = $1379.28 in taxes. (My millage rate is 114.94 per thousand, which equals 114.94/1000, which equals .11494.)  

Then in 2023, the fair market value is determined to be $120,000 (a 20% increase). However, b/c taxable property value can only increase by 5%, my taxable property value (AKA assessed value) can only increase to $100,000 x 1.05 = $105,000. So $105,000 x 12% x .11494 = $1448.244. (Assume that the millage rate stays at 114.94/1000.)   To confirm, ($1448.244 - 1379.28)/1379.28 = .05 = 5%.

Using this example, it seems worthwhile to protest my fair market value only if I can get it to be less than $105,000. If not, then it seems there would be no change in my actual taxes. Is this logic correct?

Put another way, is there any benefit, perhaps in the future, to protesting the fair market value even if you can't get it down under $105,000, but can get it down to $110,000 (which is less than the $120,00 value the tax assessor determined the 2nd year)?

Thank you in advance for your help!