Largest local property tax increase in Oklahoma history

Storm shelter bait and switch just wrong

(Oklahoma City)  House Republicans advanced the largest local property tax increase in state history today when the House Appropriations and Budget passed HJR1092, a bill that would increase property taxes statewide an average of 30 percent.  The bill authored by Reps. Mark McBride (R – District 53) and Jon Echols (R-District 90) contains the school storm shelter plan proposed by Gov. Mary Fallin in her State of the State address.

“Raising property taxes on home owners, small businesses, and farmers and ranchers to pay for storm shelters is the wrong move for Oklahoma when a better path already exists,” said state Rep. Richard Morrissette. Shifting and increasing the tax burden to property owners is bad fiscal policy.”

On average, statewide, the HJR1092 McBride-Echols-Fallin to allow local school districts the option to vote on bonds to fund the construction of storm shelterswould increase the millage rate 30.55 (for $880 million in construction costs) resulting in an increase in local property taxes of about 30 percent.

“Property tax on a home valued at $100,000 would increase $305 per year for 10 years.  Property tax on a 50-acre farm (land value of $6,000 per acre) would increase $916.50 per year for 10 years.  Property tax on a major corporation's headquarters like Devon Energy would increase nearly $1.5 million per year for 10 years.  Raising property taxes on home owners, businesses, and farmers and ranchers to pay for storm shelters is the wrong move for Oklahoma when a better path already exists,” said state Rep. Richard Morrissette (D-Oklahoma City)

“The McBride-Echols-Fallin plan does not guarantee one storm shelter is built and in fact creates years of barriers that will help ensure not a single additional child is protected. Further, there are no standards to ensure any storm shelter meet FEMA or IBC standards, a failed approach endorsed by McBride and Echols when they funded a storm shelter at Friend School that does not even come close to FEMA guidelines.”

“It is a shame that the Republicans won’t even schedule a hearing on the bill – HJR1078 – that would truly provide for the construction of storm shelters in every school without raising taxes, creating any new taxes, or reducing any spending.  Instead they want to grandstand and push through the largest property tax increase in state history without any plan to build a single storm shelter.”

Morrissette said that HJR1078 provides a more fiscally sound approach to funding the construction of storm shelters in all public schools, noting that Oklahoma City University economics professor Jonathan Willner told KFOR-TV that he believes storm shelter funding should come from the existing franchise tax (HJR1078) rather than an increase in property taxes (HJR1092).

HJR1092 would amend the Oklahoma Constitution to raise the current ceiling on property tax millage in Oklahoma, allowing for a significant increase in property taxes for all landowners, homeowners and business owners in the state.  Under the proposal, local millage would be raised to allow local school districts the option to vote on bonds to fund the construction of storm shelters using a dramatic increase in local property taxes as the funding mechanism for the bonds. An alternative had been put forward by state Rep. Joe Dorman (D-Rush Springs) as HJR1078, a plan to issue bonds paid for with the already existing state franchise tax. 

The Gayly – February 13, 2014 @ 2pm