State Question 847, which was proposed by the Legislature, proposes lowering how much a property’s assessed value can increase annually. It would decrease the current cap for homes and agricultural property from 3% to 1.75%. Commercial property owners would see their caps decrease from 5% to 4%. Senior citizens, who make too much to have their rates frozen, would have tiered caps, depending on their income.
Property valuation resets when a property sells.
The state does not receive any income from property taxes, but reducing the caps are expected to have a negative financial impact on public schools, counties, CareerTechs and some municipalities, which rely heavily on property tax revenue. However, the overall financial impact has not been calculated, according to the ballot measure.
Supporters argue:
• This will provide relief for property owners because it would slow the growth of property taxes.
• Property taxes would remain to fund local services. This would just merely slow how fast they grow.
• The tiered system creates a more equitable system for senior citizens.
• It would give Oklahoma homeowners the lowest growth cap in the entire country.
Opponents argue:
• This fails to deliver meaningful relief for property owners.
• Reducing how much property taxes can grow by means there’s less revenue for local services. Costs for services are not decreasing.
• This would result in two identical homes on the same block being taxed at different levels and would inequitably impact new buyers who would have to pay a much higher valuation rate.
• Property taxes for homeowners might actually increase because school districts and other local entities still have to pay their bond debt, meaning there may be need to additional tax rates imposed.
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