Lawmakers discuss eliminating property tax during fall study
Tax reform was a hot topic at the Capitol during the session. Recent legislation led to cuts to state income and grocery taxes.
Senators David Bullard (R-Durant) and Shane Jett (R-Shawnee) have requested interim studies to evaluate ways to reform the tax, which funds schools, law enforcement, and roads.
Lawmakers agree on Oklahoma budget, could see income tax cut
'We're looking at what is a sound and meaningful way to make sure that we're protecting the property owners and we're also properly investing in the services that they care about,' said Jett.
Bullard said he has already started collecting data on ways to replace property taxes. He said one idea would be with a consumption tax, which is a tax that a person pays when they spend money, rather than when they earn it.'With a consumption tax, if we can move that way when the economy's up, there's no end to how much they could get in revenue coming in,' said Bullard. 'The problem is going to be what do you do when it's down.'
Bullard said there would be a risk because of the ebb and flow of that type of tax as a solution.
According to the Tax Foundation, in 2024, Oklahomans paid an average of $914 in state and local property taxes per capita. It was among the lowest in the nation. New Jersey had the highest property taxes, with people there paying $3,539 per capita.
Democratic Senator Julia Kirt (D-Oklahoma City) questions why the state would want to eliminate a reliable form of funding for something that was uncertain.'Tell me the five-year plan. Tell me the 10-year plan, because we better be looking down the road,' said Kirt. 'What are [Oklahomans] willing to give up? Are they willing to give up having a county jail? Are they willing to give up having sheriffs if they need help in rural Oklahoma? I don't think they are.' Interim studies at the Capitol are expected to get underway in the coming weeks.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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