Weekly Opinion Editorial
THE
DEVIL YOU KNOW
by Steve Fair
Oklahomans pay property tax administered at county
level. Property taxes are a funding
source for local services like public schools, county government, career tech,
and rural firefighting. About 70% of
property tax paid in Oklahoma goes to education. The amount of property tax is determined by
the value of a property's fair market value, assessment ratio, any exemptions,
and the local millage rate.
State Senator David Bullard, (R- Durant) has introduced Senate Joint Resolution #23.(SJR23) aka the 'Ad Valorem Reform Act of 2026,." aka SQ#841. Bullard is proposing Oklahoma voters be given the chance to vote on freezing and/or completing eliminating property tax for homeowners. To make up the lost revenue, SJR23 would eliminate, he proposes citizens pay more in sales tax.
“For far too long, Oklahomans have essentially been renting their property from the government. After all, do we really own our property if we pay taxes on it?" Bullard asks.
Bullard said any changes to the tax system would
need to be implemented gradually to avoid destabilizing local budgets. “We can eliminate this unjust tax, but any
changes must be implemented slowly and carefully to ensure we don’t defund our
schools or counties,” he said. Three observations:
First, Bullard makes a good point about property tax. If a citizen's property can be seized for non-payment of taxes, does the owner truly own it? It's a good question, but not a new one. It's been debated since the founding of America. A settled aspect of the law is paying taxes is considered a reasonable condition of property ownership. Courts have consistently ruled the government has the ability to seize property for lawful debts (with due process).
SJR23 seeks to shift simply collection of the lost revenue to another place- it wouldn't eliminate taxes. It is possible citizens could pay more taxes to fund the listed entities.
Second, a consumption tax is the most transparent. With a consumption tax, citizens pay taxes when they choose to spend money. The decision on how much tax you pay is through spending habits. A consumption tax encourages savings, which boosts the economy and increases productivity and wages for all income levels.
That's the problem with an income tax. According to a study by the CATO institute, the current progressive tax system in America has the top half of income earners in the U.S. paid 97.1% of the $4.9 trillion of the federal income tax collected last year. 31.2% of Americans pay zero federal income tax. A consumption tax simplifies taxes, eliminates deductions, and loopholes, making government more transparent. But few citizens track how much sales tax they pay.
Third, Oklahoma's property tax is about average in the U.S. The Sooner state ranks #25 nationally in property tax. Oklahomans pay 0.77% of assessed value annually in property tax. Texas ranks #7 in property tax, Kansas #12, but neither of those states have a state income tax. Colorado and New Mexico have lower property tax rates- Missouri about the same. Oklahoma's tax burden is #21 in the country. The Sooner state ranks #43 in per capita income. Therein lays the problem- Oklahomans remain overtaxed and underpaid.
Three things are certain- death, taxes, and politicians talking about taxes. No one likes taxes, but making radical changes on how revenue is collected should be taken very seriously. Oklahomans may not like paying taxes on property they own, but they can see how much they pay each year. They are not likely to track how much sales tax they will pay each year to replace property tax.
SJR#23 has appeal in theory, but implementation is too sketchy. Oklahomans should probably stick with the devil they know.
Senator Bullard says that because you pay property taxes, you are “renting” your home from the government. Well, let’s talk about that. Let’s talk about what that tax actually buys. It buys the public schools where your children learn. It buys the rural fire departments that save your homes from burning down. It buys the roads, the libraries, and the career techs that give young people a fighting chance!
ReplyDeleteNow, they want to tell you that you can have all that for free. They say, "Let’s just eliminate the property tax!" But then, in the very next breath—and you have to listen closely—they tell you the "solution." They want to hike the sales tax.
Think about the absurdity of that!
A sales tax is one of the most regressive, unfair forms of taxation ever devised by man. It is a tax on the struggle of the poor. When a billionaire in Oklahoma City goes to buy a pair of shoes, that sales tax is a rounding error. It means nothing to him! But when a single mother in Durant or Lawton goes to buy shoes for her growing son, or groceries for her family, that extra tax is money taken right out of her pocket. It is the difference between making rent and falling behind!
The CATO Institute—the mouthpiece of the billionaire class—likes to complain that the top earners pay all the taxes. But they never want to talk about the fact that those same people own almost all the wealth! They don't want to talk about the corporate loopholes that let giant monopolies pay zero in federal taxes while you pay your fair share every single day.
Oklahomans are "overtaxed and underpaid." That part is true! But you are not underpaid because of your local school district. You are underpaid because the CEOs are making 350 times what their workers make! You are underpaid because the minimum wage is a starvation wage!
If we want to provide real relief for homeowners, we don't do it by gutting the schools and taxing your groceries. We do it by demanding that the 1% finally—finally—starts paying their fair share of taxes. We do it by investing in the working class, not by nickel-and-diming them every time they go to the store.
So, I say to the people of Oklahoma: Don't be fooled by this "Reform Act." It is a shell game. It is a transfer of wealth. And it is a direct assault on the public services that every community depends on.
We need an economy that works for all of us, not just the people at the top!