Reduce Annual Increases in Property Values for Tax Calculations Amendment

This measure amends Section 8B and Section 8C of Article 10 of the Oklahoma Constitution. Section 8B currently limits annual growth in fair cash value of most types of real property to five percent (5%) or to three percent (3%) for homesteads. For real property for which a homestead exemption is granted and real property classified as agricultural land, it would limit growth to one and seventy-five-hundredths percent (1.75%) for 2027 and subsequent years. For other types of real property, it would limit growth in fair cash value to four percent (4%) annually. The measure would change Section 8C in Article 10 that prohibits any increase in fair cash value of homestead property for persons age sixty-five (65) or older whose income does not exceed certain limits. This provision is sometimes referred to as the “senior freeze”. Instead of prohibiting any increase in fair cash value for these homesteads, there would be an annual limit of one and seventy-five-hundredths percent (1.75%). The income test for this new structure would be different. The annual limit could be reduced based on how much gross household income the homestead owner had in the preceding year. Depending on the amount of gross household income the property owner had in the preceding year, if the income level was one hundred percent (100%) or less of the income amount determined using an income measurement from federal law, the fair cash value of the homestead could not increase. If the income amount was in excess of certain thresholds, the limit on increases in fair cash value for homesteads owned by persons age sixty-five (65) or older could be thirty-five-hundredths percent (0.35%), seventenths percent (0.7%), one and five-hundredths percent (1.05%), one and four-tenths percent (1.4%) or one and seventy-fivehundredths percent (1.75%).

SHALL THE PROPOSAL BE APPROVED?