Lawmakers advance state question to cap property tax growth

By EMMA MURPHY
Oklahoma Voice

Despite concerns it could harm local funding for schools, counties and roads, House lawmakers last week advanced a state question aiming to cap property tax growth.
The maximum property value can increase each year is currently at 5% for most commercial properties and 3% for homesteads and agricultural land. An amended version of Senate Joint Resolution 39, if approved by voters, would lower the maximum increase to to 4% for commercial properties and 1.75% for primary residences and agricultural land.
“Lower caps will mean slower growth,” said Rep. Ellen Pogemiller, D-Oklahoma City. “Which means less revenue for schools, CareerTechs and roads, but with the same debt obligation and that reduces their capacity to take on, or even support existing bonds.”
House Speaker Kyle Hilbert, R-Bristow, said the state question would give Oklahoma “the lowest cap on growth in the entire country on an individual homestead.”
“Overall, this is good policy,” he said. “It’s good protections for homeowners and property owners in the state of Oklahoma to do what we can to help protect their dollars.”
Property valuations would reset when ownership changes, Hilbert said.
Rep. Andy Fugate, D-Oklahoma City, said the proposal falls short of meaningful relief for Oklahoma’s property owners, and the Legislature could have instead focused on insurance reform.
The state question would also lower the senior property tax freeze from 3% to 1.75%. The taxable fair cash value of a primary residence of Oklahomans 65 and older is locked in for those who meet income requirements.
Hilbert’s measure proposes creating tiers with smaller caps for low-income seniors based on their county’s median income.
Tiers rise in increments of 20%, and the cap is raised by 0.35% each tier.
Lawmakers are aiming to add the state question to the Aug. 25 ballot, along with a slew of other controversial ballot questions. Adding state questions to the August date, which traditionally has a low turnout, has faced pushback from Democrats and far-right Republicans.
The changes, if approved, would take effect for the 2027 tax year, according to the bill language.
House lawmakers passed the resolution 85-9 and the special election provision 80-14.
The measure heads to the Senate for consideration.