Oklahoma lawmakers are gearing up for 74 interim studies this fall at the State Capitol, with at least two focusing on a major tax reform proposal: eliminating property taxes.
Tax reform has remained a hot topic in recent legislative sessions, following cuts to state income and grocery taxes. Now, Senators David Bullard (R-Durant) and Shane Jett (R-Shawnee) are pushing to examine alternatives to the property tax, which currently funds essential services like schools, law enforcement, and road maintenance.
“We’re looking at what is a sound and meaningful way to make sure that we’re protecting the property owners and we’re also properly investing in the services that they care about,” Jett said.
Bullard, who has already begun collecting data, is considering a consumption tax as a potential replacement. Unlike property or income taxes, a consumption tax would apply when residents spend money rather than when they earn or own it.
“With a consumption tax, if we can move that way when the economy’s up, there’s no end to how much they could get in revenue coming in,” Bullard explained. “The problem is going to be what do you do when it’s down.”
The volatile nature of consumption taxes raises concerns about the long-term stability of essential services. Despite Oklahoma’s relatively low average property tax—$914 per capita in 2024, among the lowest in the nation—critics worry about the risks of eliminating a consistent revenue stream.
Senator Julia Kirt (D-Oklahoma City) voiced skepticism, stressing the importance of a long-term strategy:
“Tell me the five-year plan. Tell me the 10-year plan, because we better be looking down the road,” she said. “What are [Oklahomans] willing to give up? Are they willing to give up having a county jail? Are they willing to give up having sheriffs if they need help in rural Oklahoma? I don’t think they are.”
The interim studies will begin in the coming weeks, offering lawmakers a chance to debate the future of Oklahoma’s tax structure—and what residents might have to give up in exchange.
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