Cap and groan: Tax bill deserves rational debate

Published: February 29, 2008

WHEN Oklahomans voted in 1996 to cap property tax increases at 5 percent per year, many thought that would be a ceiling and not necessarily the actual increase. The reality is that in the more prosperous counties, increases are always 5 percent.

The people may get another chance to vote on a property tax ceiling. Senate Joint Resolution 59 would cap increases at the lesser of 3 percent or the rate of inflation. Only residential property is included in the proposal.

SJR 59 has cleared its first hurdle, passing out of a Senate committee. It faces an uphill climb because declining tax revenues make any potential tax decrease a tough sell this year.

Nevertheless, the bill deserves a fair hearing. If not this year, it might be more palatable in the future. We generally favor letting the people vote on the major issues of our day.

The 5 percent increases have outpaced general inflation (although not necessarily inflation in property values). The increases also have outpaced the annual pay raises given to many Oklahoma workers.

Naturally, the beneficiaries of ad valorem taxes are alarmed by the proposal. Same goes for their traditional supporters among opinion leaders. We've already seen the patently absurd, straw-man argument that a lower property tax cap is tantamount to closing schools and throwing students out on the streets.

Caps allow property owners to more easily absorb increases in tax liability. The increases will come, but homeowners are rightly concerned they can't keep up with a tax burden if no caps are in place.

The 5 percent cap was a compromise that followed a defeated proposal for a more severe restriction. If SJR 59 makes it through the Legislature, the people can decide if they're willing to accept the consequences of reducing property tax revenues.

Let's debate this one without the immature, schoolyard taunting.

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