Oklahoma Supreme Court Blocks Property Tax Phase-Out Initiative

The Oklahoma Supreme Court invalidated State Question 843 in a 5-4 ruling, blocking a proposed initiative that would have phased out property taxes for residents with homestead exemptions by 2029. The court determined the measure violates the state constitution, which requires real property to be assessed for ad valorem taxes at no less than 11% of its fair cash value. The ruling follows a lawsuit filed in April by ten residents who argued the exemption would devastate the state.

Chief Justice Dustin Rowe and other dissenting justices criticized the ruling, arguing the court acted as a pre-election gatekeeper and lacked jurisdiction to strike down a petition before a public vote. Proponent Mike Reynolds claimed the court took power away from the people and based its decision on hypotheticals.

Separately, Oklahoma voters will decide on State Question 847 during the November 3, 2026, election. This constitutional amendment would lower annual growth caps on property values used for tax calculations starting in 2027. The cap for homesteads and agricultural land would drop from 3% to 1.75%, while other real property would decrease from 5% to 4%. The measure also replaces the current senior freeze for homeowners age 65 and older with a tiered, income-based assessment system.

House Speaker Kyle Hilbert and the Oklahoma Farm Bureau support the measure as a way to protect seniors and small farms from inflation. Opponents, including State Representative Ellen Pogemiller and Representative Andy Fugate, warn that lower caps will reduce revenue for schools, roads, and jails, while diminishing the state's bonding capacity.