Thursday, October 17th 2024, 6:11 pm
Voters will decide a state question in November that allows for public infrastructure tax districts in Oklahoma. Those districts would essentially be able to issue bonds to pay for various projects if they pass a vote.
Lawmakers are split on whether the districts are a good thing.
Supporters of State Question 833 said it would lead to more housing and development in Oklahoma, while opponents think it gives too much power to only a few people.
State Question 833 adds a new section to Oklahoma's constitution, allowing the creation of public infrastructure districts.
"The basic idea is to provide additional money for improvements to an area to make it more commercially viable," said State Representative Andy Fugate, D-Del City.
If it passes, those special districts could pass bond issues up to $10 million to pay for things like sewage, roads, sidewalks, and projects like pools or even golf courses. Any bonds passed would raise property taxes for people living in the district.
To create the district, 100 percent of landowners within the area would have to agree and obtain city council approval. The district would be controlled by a board of trustees.
“If you aren't within that PID, you aren't being assessed; only those getting the benefit of the amenities could pay for this," said State Senator John Haste, R- Broken Arrow.
Haste backs the proposal, stating that those zones would help bring much-needed housing to Oklahoma.
“You can choose to participate or choose not to," he said. "Each individual has that opportunity.”
“The state question says 100 percent of landowners in an area has to make the request," said Fugate. "That sounds reasonable until you realize the single developer could own the entire piece of land and they’re the only one making the request.”
Fugate worries that any extra taxes might prevent people from supporting municipal and school bond issues.
“It puts this PID district in competition with other bonds in the community," Fugate said. “Who profits off the amenities? The developers, who increase the price of the home because of other things that exist in the communities.”
Lawmakers against the state question argue that there are better ways to incentivize development, like tax credits.
Builders associations said the state question is a win-win and gives developers flexibility without having to tax everyone.
Tulsa Home Builders Association:
"We strongly support State Question 833. It gives developers the ability to enhance infrastructure and amenities within their projects, while ensuring that only the residents of those specific developments experience any increase in property taxes." Jeffrey Smith Executive Vice President Tulsa Home Builders Association
NAIOP Oklahoma, Commerical Real Estate Development Assocation:
"NAIOP Oklahoma supports State Question 833, as it aligns with our mission to promote sustainable development. It offers developers the flexibility to address community needs while fostering collaboration.
The legislation empowers developers to pursue diverse projects, from mixed-use developments to urban revitalization, with customized solutions for local improvements."
Statement from Rep. Chris Banning, R- Bixby
“If I recall, it was concerns about a housing shortage that led to State Question 833, but I personally believe housing is a free-market concern that doesn't require government intervention. President Ronald Reagan was correct when he said ‘Government is not the solution to our problem; government is the problem.’ We need less government, not more. I was one of the 27 House Floor ‘no votes’ on SJR16 which led to state question 833 being on the ballot.
If passed, SQ 833 would be enshrined in the Oklahoma State Constitution. Oklahomans should carefully research every state question before casting a yes vote.”
City of Tulsa:
“The City of Tulsa is not currently involved in discussions regarding the state question on PID Districts, but as this evolves, the City may have a more active role.”
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