Weekly Opinion Editorial

THE SCHOOLMARM’S RULER!

by Steve Fair

On Wednesday, the State House Rules Committee will vote on two proposed property tax reforms sponsored by State Representative David Dank, (R-OKC). Dank says his two bills could be the most important of the 2011 legislative session.

*****

"Oklahoma is out front on a number of vital reforms this year, but if we fail to address the issue of ad valorem tax reform, we will be sending a message that we are just not serious about restraining the growth of government," said state Rep. David Dank (R-Oklahoma City).

*****

What Dank wants to do is allow the citizens of Oklahoma to vote on a two (2) percent annual cap that would limit future property tax increases and to place a permanent freeze on property tax levels for seniors over 65 for as long as they own their homes.

"If ever there was a bipartisan issue, this is it," Dank said. "Despite what some opponents may claim, this is not a tax cut. It would not reduce revenue for schools or counties by a single penny. It is merely tax restraint."

*****

Back in 1996, Oklahoma voters overwhelmingly passed SQ 676 which placed a five (5%) limit on property tax increases. Voters were led to believe they were voting for a ‘maximum’ increase of five percent, but an Attorney General’s opinion in 2001 said property tax must increase at five (5) percent until it reached the assessed value of the property. One man, Jack Edens, an OKC newsman, warned of the fishhooks in SQ 676, but his warnings were largely ignored. Now county government throughout the state uses the five (5) percent like a schoolmarm with a ruler, whacking property owners every year with ‘mandatory’ increases.

*****

"The current 5-percent allowable annual increase in ad valorem taxes is the only automatic tax increase on the books," Dank says. "Imagine the uproar if income or sales taxes went up 5 percent every year."

*****

According to the Tax Foundation, an organization whose stated goal is to educate taxpayers about sound tax policy and the size of the tax burden at all levels of government, Oklahoma property tax rates are among the fasting growing in the country.

The Tax Foundation also says Oklahoma's taxpayers have gone from the 42nd highest state and local tax burden in 1977 to the 19th highest in 2008. Estimated at 9.8% of income, Oklahoma's current state/local tax burden is just above the national average of 9.7%. Oklahomans pay $3,761 per capita in state and local taxes. For more information go to their web site, http://www.taxfoundation.org/

*****

"The hardest hit is seniors, who have not seen a cost of living increase in Social Security or most pensions in two years," Dank claims. "That annual extra 5 percent property tax increase, along with increases in expenses like gasoline, utilities, Medicare premium increases, prescription drugs, insurance premiums and groceries are literally driving many of them from their homes into nursing homes, which wind up costing the taxpayers much more."

*****

Last legislative session, Senator Jim Reynolds, (R-OKC) sponsored SJR5 which capped the annual increase in property taxes at 2.5% or the rate of inflation, whichever was less. The Joint Resolution passed the Senate, but did not get a floor vote in the House because then Speaker of the House Chris Benge, (R-Tulsa) opposed the proposal, calling SJR5 a ‘tax cut.’ “I just don’t think that the timing is good to reduce revenue,” Benge said. Reynolds proposal did not ‘cut’ taxes- it only slowed down the growth of taxes.

*****

“Not only are his statements out of touch with the core Republican principle of limited government we were sent here to espouse, they are factually incorrect,” Dank said about Benge’s opposition.

*****

Benge is no longer in the legislature, so it’s a better than odds on chance that Dank will get his proposals voted on in the House. If his bills get through the Senate, Governor Fallin is likely to sign them and so it’s very likely the voters of Oklahoma will be considering Dank’s proposals on the ballot as State Questions in 2012.

*****

Anytime a revenue stream to government is threatened, bureaucrats fight like crazy. They never want to give up any money that might jeopardize their livelihood. Dank’s proposals make sense and will move Oklahoma forward. The people should be allowed to vote on amending the State Constitution to slow down the growth of property taxes.

*****

It’s time the voters of Oklahoma took the ruler away from the schoolmarm.