Rising Property Taxes Examined

Story by Linda Agee
Property taxes in Oklahoma have been rising steadily each year, making homeownership more difficult for many.

During an Oklahoma House study last year, Bradley Ward, Ph.D., deputy state director of Americans for Prosperity, a nonprofit organization that advocates for policy reforms at the local, state, and national levels, presented supporting facts from the U.S. Census Bureau. He displayed a chart showing property taxes have increased 367% since 1993, outpacing household income

growth, inflation, and other tax sources. He pointed out that “The gap between tax burden and ability to pay is widening.”

This impacts all homeowners but is especially troubling for seniors on fixed incomes. As property tax and insurance rates continue to rise, some will be forced to sell their homes and downsize or move in with relatives. Consider the following example, showing how property taxes can affect affordability:
1) In Oklahoma today, the property tax on a $200,000 home would be around $2,500 per year.

2) In 30 years (using the current 3% annual cap on valuation), the tax burden on that same home will have grown to around $6,000 per year. And the homeowner will have paid over $118,000 in property taxes.

This example does not take into consideration school bonds, reassessments due to home improvements or changes to tax laws, so the amounts would likely be more.

Some might call taxing the increase in home value a tax on “unrealized capital gains” because it is a “paper profit,” which means taxing the increase in an asset before it is sold.

State Senator Dusty Deevers (R-District 32) said in a press release posted to the state legislature website in July 2025, “I hear more about property taxes from my constituents than any other issue, and for good reason. This is a fundamental issue that makes living in one’s home difficult for Oklahomans, especially seniors and young families trying to buy their first homes.”

People opposed to property tax reform say reducing or eliminating the property tax on Oklahoma homesteads will harm our schools. This is not true. The state constitution says, “The Legislature shall, by appropriate legislation, raise and appropriate funds for the annual support of the common schools of the State …” It does not mandate the source of that funding.

According to statistics from the State Department of Education, less than 30% of total revenue to fund schools comes from homestead properties. Schools also receive revenue from commercial property tax, the Commissioners of the Land Office, the state lottery, the oil and gas tax, the motor vehicle tax, Rural Electric Association Co-ops, the mortgage tax, tribal donations, state appropriations, federal grants, and other miscellaneous sources. Some counties, like Pottawatomie County, also collect sales tax for schools.

Another misconception is that reducing or eliminating tax on homesteads will increase taxes on other, non-residential properties. Again, not true. Taxable fair cash value of commercial properties is already capped at 5% annually.

Several property tax reform bills have been introduced during the current legislature, the most prominent being State Question 823 sponsored by former State Representative Mike Reynolds, Senator Shane Jett (R-District 17) and Representative Jay Steagall (R-District 43). An initiative petition is currently underway to place this on the November ballot, and if approved by voters, it would eliminate property taxes on Oklahoma homesteads.

Schools and municipal services must be funded, so SQ 823 would be phased in over four years, giving the Legislature time to determine appropriate sources of replacement revenue.

In addition to ensuring adequate funding for schools and government services, Mike Reynolds believes the legislature should also address spending. He said, “I think a lot of government funding has gotten completely out of control, so I want the money to be used appropriately.”

Many state legislators agree. Senator Deevers introduced Senate Bill 679, the Property Tax Transparency Act. The bill did not advance during the current session but can be reintroduced during the next legislative session, which starts on February 1, 2027. At least, the conversation has begun.

Bottom line is, our government has relied too long on taxing residential properties to fund schools and government services, to the point of either taxing people out of their homes or destroying their hopes of ever owning a home.

For additional information, visit www.propertytaxreform-ok.com.