Senate Supports Property Tax Cap Vote

The State Senate has approved a measure to cut the growth of annual property tax increases. Senate Joint Resolution 5, by Sen. Jim Reynolds, was passed on Wednesday. The legislation would let Oklahomans vote to lower the current property tax cap of five percent to three percent.

“Thousands of Oklahoma citizens are begging for relief,” said Reynolds, R-Oklahoma City. “This tax is especially difficult for many low-income and elderly people on fixed incomes.”

In 1996, Oklahoma voters approved a five percent cap on property value assessments. While the intention was to keep annual property tax increases under that cap, County Assessors have instead raised property taxes the maximum five percent each year.

“It’s gotten out of control. Since the mid-eighties, the average U.S. inflation rate has been 2.7 percent, but with the current five percent cap, people in many counties have seen their property taxes go up each year at nearly twice the rate of inflation, even when values have remained flat or even dropped,” Reynolds said.

Senate President Pro Tempore praised Reynolds and members of the Senate who supported SJR 5.

“If nothing is done, property taxes will continue to double about every 14 years,” Coffee said. “Sixteen other states have stronger safeguards for homeowners than Oklahoma. We need to act this year to give our citizens some relief.”

Reynolds added SJR 5 would not take away any money from schools or other county services.

“This simply limits the amount County Assessors can increase property taxes,” Reynolds said. “If approved by the people, this will promote and encourage home ownership and increase the quality of life in Oklahoma.”

The measure now moves to the House of Representatives.

SENATOR REYNOLDS OFFERING PROPERTY TAX RELIEF LEGISLATION

Senator Jim Reynolds (R-OKC), will sponsor legislation offering property tax relief to Oklahoma homeowners in the 2009 legislative session. Reynolds’ bill will cap the annual increase in property taxes at 2.5% or the rate of inflation, whichever is less, effective January, 2010.

“I’ve talked to too many homeowners in my district and around the state who are feeling pinched every year when they get their property tax assessment,” said Reynolds. “Due to a flaw in current law, County Assessors are raising property taxes the maximum allowable 5% every year, even when real property values may be remaining flat or even dropping.

SJR 5 is similar to a bill Reynolds offered in previous years, cutting the growth of property taxes for all homeowners, including newlyweds, baby boomers and seniors.

Reynolds notes that numerous states across the nation have instituted safeguards against escalating property taxes, while in Oklahoma over the past two decades, property taxes have increased at a rate nearly twice the rate of inflation.

“At this rate, property taxes on young families, retirees, and all homeowners will double every fifteen years,” Reynolds added.

“With housing values flat or declining in many areas, it’s unconscionable that taxes continue to increase,” Reynolds said. “This tax relief will promote and encourage home ownership, bringing more families and retirees into our neighborhoods, and increasing the quality of life in Oklahoma,” he concluded.

If passed by the Senate and House, SJR 5 will go to a vote of the people for ratification.