On the ballot Nov. 3 is State Question 847, which would lower Oklahoma’s assessment caps for property taxes, potentially lowering revenue for Norman, its public schools and public safety services.
If passed, SQ 847 would take effect in 2027. Assessment caps, which were introduced to Oklahoma in 1996, limit how much a property’s assessed value can increase each year. It was intended to protect homeowners from rapidly raising property taxes.
Property taxes are calculated based on this assessed value. Under the measure, Oklahoma’s homestead and agricultural property assessment cap would change from 3% to 1.75%, and the cap for other properties would decrease from 5% to 4%.
By lowering property tax rates, SQ 847 could actually end up raising bills by causing local governments to raise millage rates, which are tax rates that local governments including counties, municipalities and school districts set for property taxes.
In Oklahoma, property taxes are the primary source of local revenue for cities and school districts, as property tax revenue stays in local communities instead of going to the state. Lower assessment caps would limit how much taxable property values can grow year to year, slowing the growth of revenue available to schools and local governments.
In an email statement to OU Daily regarding SQ 847, Norman Public Schools Superintendent Nick Migliorino wrote NPS takes its responsibility to be good stewards of taxpayer dollars seriously.
“State Question 847 proposes changes to how quickly property values can increase for tax purposes,” Migliorino wrote. “While the measure is intended to limit property tax growth for property owners, it could also have financial implications for public schools, including Norman Public Schools.”
Migliorino wrote that there are two areas related to SQ 847 the school district is watching closely: Funding for day-to-day school operations and the district’s ability to continue investing in school facilities.
“We understand that property taxes matter to families and businesses in our community. At the same time, we have a responsibility to understand how changes to school funding could affect the students and families we serve,” Migliorino wrote. “Our focus will continue to be on making responsible financial decisions, maximizing the resources available to us and providing the best possible educational experience for every student.”
Migliorino wrote that the district encourages the community to learn about SQ 847, understand what it proposes and make an informed decision when they vote.
Norman Mayor Stephen Tyler Holman said that he believes people will look at SQ 847 and think it is a good thing, though he thinks it could result in a tax increase.
“My understanding of this is if it's approved, it could actually result in a tax increase on people,” Holman said. “Because the debt of those bonds would have to be paid that are already voter approved, and that may require the local millage rate to increase in order to cover that.”
Holman said the city has multiple different bond programs that are voter approved, including a street maintenance bond program and a bridge maintenance bond program. SQ 847 could affect the city’s ability to pay these off in a timely manner.
“It could definitely impact how long it takes to get projects paid off,” Holman said. “Depending on if it reduces the amount of revenue coming in to get them paid off.”
In an email statement to the OU Daily, the Cleveland County commissioners wrote that they support providing meaningful tax relief and protecting taxpayer dollars while fostering growth.
“We believe two things can be true: we can provide tax relief to our residents while keeping services funded at a high level,” the commissioners wrote. “Under the proposed state question, existing property tax collections would not be reduced by a potential cap; rather, the impact would be on assessed property values.”
The commissioners wrote that they believe limiting property taxes does not have to mean limiting resources.
“While county budgets are developed with anticipated revenue in mind, property tax revenue has historically provided a consistent funding source in Cleveland County,” the commissioners wrote. “We will continue to plan responsibly for potential changes if this becomes law and prioritize the services our residents rely on.”
Chris Apel, chief strategic officer of the Cleveland County Assessor’s Office, said the possibility of lowered revenue for local entities that receive the property tax is a trade-off voters have to decide on.
“If it’s saving you $50, that’s $50 that the vast majority of it goes to your local schools and career tech,” Apel said. “So, as a community member, do you see that that $50 is better spent going to school districts and taking care of the school funds, teachers, things like that, or not?”
Apel said that schools depend on property taxes a great deal since these taxes stay local, so this state question is decreasing the expected increase in revenue for these entities.
The Oklahoma Farm Bureau supports SQ 847, with the Oklahoma Farm Bureau president stating on the website, “Oklahoma’s farmers and ranchers need real relief from skyrocketing ag input prices and the rising inflation we all face.”
Oklahoma Rep. Jim Grego worked with the Oklahoma Farm Bureau to get the 3% assessment cap for certain properties passed in 2013, before he took office, and said property tax is a tax on prosperity.
“It seems like you buy a few more assets and, you know, you try to get yourself a little better financial position, here comes the tax man,” Grego said. “So anything we can do to lower that will encourage growth and encourage people to make more purchases.”
In reference to the possibility of lowered revenue for local entities, Grego said he doesn’t see it as a loss.
“Let’s think about where that revenue’s coming from. You know, it’s coming out of my pocket and every other land owner and property owner in the state of Oklahoma,” Grego said. “And yes, it might lower (revenue) some, but guess what? I’ll hopefully pay fewer taxes.”
SQ 847 maintains the senior property tax freeze, allowing seniors aged 65 or older to freeze their property taxes at the value it is at the time of applying, if their household income is at or below 100 percent of the county median household income. SQ 847 proposes a tiered assessment cap for seniors making above the income qualification.
The Nov. 3 election will have two state questions, SQ 847 and SQ 845. According to the Oklahoma Policy Institute, lawmakers said SQ 847 is meant to give Oklahomans some relief from property taxes.
This story was edited by Spencer Windholz. Avery Shaw and Tori Pham copy edited this story.
