On Nov. 6, Oklahoma voters will decide six state questions to amend the State Constitution. Many lawmakers and Gov. Mary Fallin support state question 766.
SQ 766 would exempt corporations’ intangible property from property taxes.
The Oklahoma Policy Institute has analyzed the question as follows: SQ 766 would provide a large tax cut to centrally-assessed corporations, such as utilities, airlines, railroads and telecommunications companies. It would cost local governments an estimated $50 million in property tax revenue, 60 percent of which goes to schools. For budget items that cannot be cut, such as bond issues and legal judgments, local assessors will have to increase property tax rates to offset lost revenue. The failure of SQ 766 would not mean a significant tax increase for business, because the Legislature has already created a $25 Business Activity Tax as a “tax in lieu of” intangible personal property tax. This tax will continue if SQ 766 fails.