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Oklahoma's #SQ844 Explained (video)
Find out what State Question 844 does, why it was introduced, and how it could affect communities across Oklahoma. Aanahita Irani Ervin, OK Policy’s Fiscal Policy Analyst, explains the measure appearing on Oklahoma's August 25 ballot. [OK Policy]
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Rethinking pretrial detention in Oklahoma (Capitol Update)
Sen. Mark Mann, D-Oklahoma City, has requested an interim study entitled “Does Oklahoma have the Resources Necessary to Implement Criminal Pretrial Supervision Requirement?” The Senate, unlike the House, does not publish the specifics of interim study requests. However, from the title, it appears Sen. Mann wants to examine the potential costs of providing an alternative to pretrial incarceration where appropriate. [Steve Lewis / Capitol Update]
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OK Policy & Together OK are bringing the voices of your community to the Capitol.
This summer, we’re hosting listening sessions in towns and cities across the state to provide an opportunity for the public to have conversations with our fellow Oklahomans about issues that matter most in their communities. By hearing directly from residents, we can better advocate for state policies that reflect your priorities.
Sessions are free and open to the public, and participants will be compensated for their time (in-person events only). [Learn More]
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"When we hit that valley and those taxes have been cut and there’s no way to replace that, that’s when we’re going to feel it."
- Senator Mark Mann, D-Oklahoma City, discussing the Legislature’s income tax overhaul, which merges tax brackets and includes automatic triggers that could further reduce the state’s income tax rate over time. He noted that while the oil and gas industry is in a strong position today, future downturns are inevitable. [The Oklahoman]
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Ad Valorem Manufacturing Exemption
In 1985, Oklahoma voters approved State Question 588 with a 69.7 percent majority. This created the ad valorem manufacturing exemption. Under Article X, Section 6B of the Oklahoma Constitution, a qualifying entity is exempt from ad valorem taxes upon new, expanded or acquired manufacturing facilities for a period of five years. Since 1985, the range of entities eligible for the exemption has been expanded.
The law says that the state will reimburse local recipients of ad valorem taxes, such as counties and school districts, for the full amount of lost revenue under the exemption. The cost of the exemption grew to $161.2 million in Tax Year 2019, but has since declined to $110.3 million in Tax Year 2023. In 2023, 37 percent of the total exemption ($40.8M) was claimed by computers, of which the lion’s share – $$40.4M – went to Mayes Co. for its Google factory. The second largest sector in 2023 was large manufacturing (35 percent, $$38.8M). Traditional manufacturing (20 percent, $22.4M) and distribution (8 percent, $8.2M) were the other categories. While wind producers were responsible for much of the growth in the cost of the ad valorem exemption in the 2010s, legislation passed in 2015 made wind producers ineligible to claim the exemption for facilities developed after 2016.
One percent of state personal income tax and corporate income tax revenues go to the Ad Valorem Reimbursement Fund to cover the cost of the exemption. This fund typically falls far short of what is needed. In most years, this leads to a supplemental appropriation to schools and counties for lost property tax revenue; for FY 2025, the supplemental was $64.8M for schools and $8.8M for counties (HB 2766, s. 143 & 144).
[Look up more key terms to understand Oklahoma politics and government here]
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Opinion: Low turnout, high stakes: Why legislative leaders love an August runoff
They’d never voice it publicly, of course, but Oklahoma‘s legislative leadership undoubtedly is praying the sizzling summer heat extends all the way through August.
Sun worshippers? Masochists? Stockholders in air conditioning manufacturers? Or electric utilities?
Maybe. But there’s a simpler, more obvious answer: It’s what they think is best for their political agenda.
Remember, the poohbahs at NE 23rd and Lincoln Blvd. tried mightily this session to load the Aug. 25 runoff with state questions that could help expand their power and defang People Power the state’s Founders carved into the Oklahoma Constitution.
One politically devious way to do so is to send proposed constitutional amendments to the state ballot with the lowest voter turnout: the August runoff, when fewer contested races are grabbing public attention, back-to-school preparations are wrapping up and many folks are hibernating in air conditioning to escape the heat.
Lower turnout, of course, means fewer voters to hoodwink into thinking they are taking steps to save the state, if not the republic, from … what? Hordes of illegal immigrants pouring over the border? Spendthrift local governments? Woke school superintendents and teachers indoctrinating students?
As it turned out, the powers-that-be managed to get only two state questions, 844 and 846, onto Aug. 25’s ballot – thwarted by a loose Senate alliance of Republican Freedom Caucus members and super-minority Democrats that forced the worst proposals to November’s general election when turnout is highest.
Even though Republicans will determine their gubernatorial nominee and Democrats their U.S. Senate standard-bearer on Aug. 25, it is doubtful many registered voters have bothered to save the date on their calendars, much less taken note of the proposed constitutional amendments up for consideration.
But these two legislatively-crafted state questions would have real-world consequences for workaday Oklahomans. [Arnold Hamilton / The Journal Record]
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600,000 - Number of annual ambulance runs in Oklahoma during 2022 that were funded through special districts that receive funds through property taxes. [OK Policy]
$104.2 million - Oklahoma’s Parental Choice Tax Credit program awarded households earning $150,000 or more $104.2 million, or 40.8 percent of the total distributed funds, for the 2026-27 school year — a 2 percent increase over the previous year. [Oklahoma Tax Commission]
$9 - The estimated annual tax savings for Oklahomans in the bottom 20% of incomes under a quarter-point income tax cut, compared with $2,936 for those in the top 1%. [OK Policy]
686,800 - Number of Oklahomans helped by SNAP benefits in 2024, which is 17 percent of the state’s population (or 1 in 6). [Center on Budget and Policy Priorities]
$88,635,421 - The amount Oklahoma reimbursed school districts, counties, and municipalities for property tax revenue lost to the state’s five-year manufacturing property tax exemption. SQ 844 would remove the constitutional requirement for those reimbursements, allowing lawmakers to decide whether — and how much — to repay local governments in the future. [Oklahoma Tax Commission]
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More States Jeopardizing Local Services With Property Tax Cuts and Caps: Everyone should have the opportunity to live in a community with strong public schools, beautiful parks, and safe roads, but many states are threatening to take away local governments’ ability to build thriving communities by cutting or capping property taxes. Policymakers can make housing more affordable without undermining local budgets by adopting measures like targeted property tax breaks, rental assistance, and steps to increase the supply of affordable housing. [Center on Budget and Policy Priorities]
The True Cost of Private School Voucher Programs: Educating students using private school vouchers is more expensive than educating them in public schools. A 2018 study found the cost of educating a student through an Arizona private school voucher program was 75% higher than the cost of educating a public school student.1 Another study estimated that shifting to a system of private school vouchers could raise education costs by 25% or more when accounting for students who would have attended private schools without a voucher, plus the additional administrative costs for the program, such as record keeping and monitoring. [Education Law Center / Public Funds Public Schools]
The Changing Landscape of State Tax Rates: Overall, historical data reveal a shift in how states raise revenue. Many states have repeatedly cut top personal and corporate income tax rates in recent years, sometimes while also approving higher sales tax rates. Because sales taxes fall more heavily on working families, this shift has generally made many state tax systems more regressive. Other states, however, have charted a very different course and have moved to increase taxes on higher-income households to fund public services. These trends underscore a key policy choice facing states today. As federal support for state programs retracts and economic inequality reaches record highs, decisions about tax structure will shape who pays for essential public services. Strengthening progressive revenue sources — through higher rates on high-income households and corporations — offers states a way to maintain and strengthen public investments that improve the lives of working families. [Institute on Taxation and Economic Policy]
H.R. 1’s Key Harms to Oklahoma: HR 1, also referred to as the One Big Beautiful Bill Act, passed by Congress and was signed by President Trump in July 2025. HR 1 severely cuts the Supplemental Nutrition Assistance Program (SNAP), harming the thousands of Oklahoma residents who rely on this program for food. [Hunger Free Oklahoma]
Rethinking Property Tax Incentives for Business: State and local governments across the U.S. spend billions of dollars each year on property tax incentives to attract businesses, despite limited evidence that these programs deliver meaningful economic benefits. Instead, research suggests governments could see better results by investing in workforce training, business services, and other economic development strategies. Where property tax incentives remain in place, experts recommend stronger limits, greater transparency and accountability, approval from all affected governments, and ending state reimbursements for lost local property tax revenue. Local governments can also improve these programs by setting clear eligibility criteria, targeting businesses that bring new economic activity to the region, limiting spending, and making the decision-making process more open. [Lincoln Institute of Land Policy]
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What’s up this week at Oklahoma Policy Institute? The Weekly Wonk shares our most recent publications and other resources to help you stay informed about Oklahoma. Numbers of the Day and Policy Notes are from our daily news briefing, In The Know.
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Contact
Oklahoma Policy Institute
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Tulsa, OK 74120
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918-794-3944 | info@okpolicy.org
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