Property taxes have long been a topic of debate in Oklahoma. They fund things like schools and libraries, sending more than $700 million to these essential Tulsa resources last year. But, for many people, particularly seniors living on a fixed income, these taxes add another layer of financial pressure.
“If it keeps going up, it’s going to be worse,” said 77-year-old Ann Loam, who pays $1,400 in annual property taxes. “Give us a break, government.”
One Senate resolution working its way through the Oklahoma legislature could do just that. The Ad Valorem Reform Act would get rid of property taxes for senior homeowners. It’s one of a few potential actions that aim to make these taxes more affordable for Oklahomans.
Lawmakers conducted an interim study last year after hearing people were concerned about being priced out of their homes due to rising property taxes.
Senate leader Lonnie Paxton, R-Tuttle, has strongly pushed back on the idea of eliminating them altogether, and Tulsa County Assessor John Wright says the government’s efforts to make up for that lost money might strain Tulsans’ wallets in other ways.
“Essentially, what you’re talking about is transitioning from property tax reliance over to the sales tax reliance,” Wright said. “If you shift the amount to maintain stable services, the sales tax rate goes up significantly.”
In addition to getting rid of property taxes for senior homeowners, Senate Joint Resolution 23 proposes a freeze for homeowners who qualify for a homestead exemption. If approved by the legislature, the proposal would be put on the ballot for Oklahomans to decide.
The homestead exemption takes $1,000 off your assessed value and limits your property taxes from increasing more than 3% a year. Senate Bill 1809, authored by Paxton, would raise the value deduction from $1,000 to $5,000. The qualifications are below.
- Your name is on the deed, and it’s filed with the county clerk’s office.
- It’s your primary residence, and you’ve lived there since Jan. 1 of that year.
- You’ve submitted an application to the Tulsa County Assessor.
Tulsa homeowners 65 or older can also get a senior value limitation to help lower property taxes. This freezes your taxable property value to that year’s level, and more than 15,000 Tulsans use it. The qualifications are below.
- You’re 65 or older and qualify for a homestead exemption.
- You must be the head of the household.
- You make a gross household income less than the median income calculated by the U.S. Department of Housing and Urban Development, which is $90,300 for this year.
You have to apply for both by March 15 or 30 days after getting your valuation notice in the mail.
While Oklahoma falls on the lower end for property taxes, Wright said Tulsa County’s effective tax rate is a little higher than the rest of the state.
Loam says she’d support the resolution to get rid of her property taxes. But Marsha Owen, 78, thinks there’s more of a catch. She pays around $1,300 in annual property taxes and has a homestead exemption. She thinks insurance costs are a bigger problem and pointed to how the sales tax might increase too.
Owen used to work for Tulsa Public Schools and knows how much school districts rely on property tax dollars. She’d rather see the state cut income tax for seniors instead.
“I don’t know how the state would continue to function, even as well as it does now,” Owen said.
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