Oklahoma lawmakers were getting an earful from constituents about rising homeownership costs, including property taxes.
In response, Republican legislative leaders filed a constitutional amendment to reduce how much a property’s assessed value, used to calculate property taxes, can increase each year. Oklahoma voters will see the proposal, via State Question 847, on the Nov. 3 general election ballot.
Proponents of SQ 847 say it would give future relief to homeowners facing inflationary pressures, including seniors living on fixed incomes. Critics contend the change would put too much pressure on local and county services, like public schools and sheriff’s offices, that rely on property tax revenue.
To help Oklahoma voters in research ahead of election day, Oklahoma Watch compiled the following information on the measure:
What Exactly Does SQ 847 Propose?
SQ 847 would not lower property tax rates. Instead, it proposes lowering annual assessment caps for tax purposes in the following increments:
- Homesteads and agricultural property: Reduced from 3% to 1.75%.
- Other real property, including commercial and rental properties: Reduced from 5% to 4%
For example, under SQ847, a homestead property valued at $200,000 in 2026 could have a maximum assessed value of $203,500 in 2027.
The measure would also create a separate tiered cap system for homestead owners 65 or older whose income is above the threshold for the existing senior property tax freeze program. Income limits vary by county based on U.S. Department of Housing and Urban Development data. In Oklahoma County, the 2026 income limit for a household was $99,000.
The tiers are as follows:
- 100-120% of qualifying income amount: assessed growth capped at 0.35%
- 120-140% of qualifying income amount: assessed growth capped at 0.70%
- 140-160% of qualifying income amount: assessed growth capped at 1.05%
- 160-180% of qualifying income amount: assessed growth capped at 1.40%
- 180% or more of qualifying income amount: assessed growth capped at 1.75%
Who Supports SQ 847, and Why?
Republicans in the House and Senate voted overwhelmingly to send SQ 847 to the ballot. House Speaker Kyle Hilbert, R-Bristow, and Senate Pro Tem Lonnie Paxton, R-Tuttle, sponsored the measure. They argue the change would benefit households and business owners facing inflationary pressures.
The measure initially proposed a 1% growth cap for homesteads and agricultural land and 3% for real property. Hilbert said lawmakers amended it to the current rate after consulting with representatives for county commissioners, municipalities and public schools.
“I’m not going to stand here and say that every one of those entities loves the bill and endorses it, but many said they would rescind their opposition,” Hilbert said on the House floor. “This is a strong support for taxpayers. It would give the lowest cap on growth for homestead property in the entire country.”
The Oklahoma Farm Bureau endorsed the proposal last month, saying it could help keep small farm and ranching operations afloat.
“Factors like drought, input costs, fluctuating commodity and livestock prices and more can mean that farmers and ranchers could actually lose money on a given piece of land in a year while property taxes on that land continue to steadily climb,” the organization wrote in its voter guide.
Who Opposes SQ 847, and Why?
Democrats in the House and Senate voted against sending the measure to the ballot, arguing municipalities and counties would struggle during times of high inflation.
Rep. Andy Fugate, D-Del City, said the state could be forced to pick up the slack if local entities face revenue shortfalls.
“This bill strangles our counties, it strangles our jails, it strangles our schools and it sends Oklahoma on a downward spiral,” he said in debate against the measure.
The Oklahoma Policy Institute, a nonpartisan public policy think tank, has also urged voters to reject the measure. The organization says property owners could face higher tax bills under the measure if county governments and school districts seek to raise millage rates to cover existing bond projects.
Two local officials expressed concerns with SQ 847 during a Sept. 15 interim study on county revenue streams. Brent Bryant, assistant city manager for the city of Oklahoma City, said the city estimates it could lose $683 million in bonding capacity over 20 years if the measure takes effect.
“We’ll have to change the sequencing of our projects and the project scopes will be diminished,” Bryant said.
Cordell Ehrich, the assistant superintendent of business and operations at Deer Creek Public Schools, said the measure would likely affect local school districts. Per state law, Oklahoma school districts cannot bond more than 10% of the total assessed value of property within the district.
He said reduced bonding capacity could lead to larger classroom sizes and more temporary spaces as districts scale back new construction.
“There may not be an impact in the first year, but three, five, 10 years down the road, there could be some significant impacts that are really difficult to correct,” Ehrich said.
Has Anyone Completed a Fiscal Analysis on SQ 847?
The official ballot title states SQ 847 would have a fiscal impact, but that the exact amount is unknown.
In an April analysis, the Oklahoma Policy Institute estimated that the measure would cut $42 million of local revenue in the first year and $241 million by the fifth year. Those estimates do not include the cost of the senior freeze cap amendment.
Has a Similar Measure Ever Appeared on the Ballot? If So, What Happened?
Yes. In 2012, lawmakers sent State Question 758 to the ballot, which reduced the annual assessment growth cap on homesteads from 5% to 3%. More than two-thirds of voters approved the measure, which took effect in 2013.
Has Anyone Reported Spending Money For or Against SQ 847?
Not yet, according to Oklahoma Ethics Commission records. The deadline to file pre-general election reports is Monday, Oct. 26.
If Approved, When Would SQ 847 Take Effect?
The measure would take effect beginning in the 2027 tax year.
Oklahoma Watch, at oklahomawatch.org, is a nonprofit, nonpartisan news organization that covers public-policy issues facing the state.
