Property Tax Reform Finally Approved

The Legislature took action last week to approve an issue about which I have written many times during my four years as State Representative.

Time and again I have heard from House District 31 constituents about their desire to slow the rate by which property tax assessments increase each year. Every year since I have been in the Legislature, this proposal has partially worked its way through the legislative process, only to meet a road block and become derailed.

This fact obviously does nothing to help the sense of desperation in the requests for reform from Oklahoma property owners who feel helpless and unable to respond to the increases that in some cases threaten to force families to sell their family homes. In many cases, these home owners have seen 5% increases each year for a number of years as property tax bills struggle to catch up with property tax assessments.

A senior citizen constituent visited my office once and produced a detailed spreadsheet calculating the implications of a continued 5% increase on his home assessment price over the upcoming years. He could demonstrate how, with compounded interest, the amount of his property tax would double over the next several years. His home property taxes were nearly equal to 25% of his social security income.

And even though property values are currently in a state of decline, because assessors have had to increase the price of properties in excess of the 5% cap in the past, many homeowners will likely continue to see their assessments rise by 5% even in a down economy when their personal budgets may be shrinking.

Now, you will finally have a chance to take action and let your voice be heard on this issue. By a vote of 77-16, the House of Representatives has approved House Joint Resolution 1002. HJR 1002 will allow the people of Oklahoma to vote on changing the Oklahoma Constitution to lower the state’s property tax increase cap from 5% to 3%.

This becomes one of the first state questions which the Legislature has approved to be placed on the 2012 general election ballot.

The adoption of this important reform makes this the best year for tax reform since I started in the Legislature in 2007. Earlier this year it was learned that a statutory trigger previously approved by the Legislature will be enacted and will lower the state income tax to 5.25% starting on January 1st of next year. With the property tax cap likely being reduced and the income tax also getting smaller, I believe this is the most encouraging year for Oklahoma taxpayer in the last 5 years.

You can watch the House discussion of the property tax reform proposal by visiting hd31.org/89 online.