Panel examines how property taxes support local services at State Spotlight

As discussions continue across Oklahoma about potential changes to the state’s property tax system, experts at the Greater Oklahoma City Chamber’s State Spotlight event examined how property taxes support essential services and what changes to the system could mean for communities.

Following Governor Kevin Stitt’s fireside chat, the event featured a panel discussion focused on how Oklahoma’s tax structure works and how different revenue sources fund schools, counties and cities.

Before the discussion began, attendees watched a short explainer video outlining how Oklahoma’s three primary taxes — income tax, sales tax and property tax — support different levels of government.

The discussion featured Mike Fina, executive director of the Oklahoma Municipal League (OML); Chris Schroder, executive director of the Association of County Commissioners of Oklahoma (ACCO); Dr. Shawn Hime, executive director of the Oklahoma State School Boards Association (OSSBA); and Dr. Russell Evans, dean of the College of Business at the University of Central Oklahoma (UCO).

How Oklahoma funds local services

The video explained that income tax primarily funds state agencies and programs, while sales tax is a key revenue source for municipalities. Property tax — often referred to as ad valorem tax — largely supports schools and county government operations.

Panelists said that because each tax funds different services, changes to one part of the system can affect how communities support education, infrastructure and public safety.

Local governments face rising costs

Speakers also highlighted the growing costs associated with providing local services.

Counties rely on property tax revenue to help maintain roads and bridges and support other essential services. However, the cost of infrastructure equipment has increased significantly in recent years. Road graders that cost roughly $250,000 five years ago can now cost closer to $350,000.

Cities are facing similar challenges, particularly in public safety. Fire trucks that once cost about $650,000 can now exceed $1.6 million, and departments must also invest in technology and equipment needed to respond to emergencies.

These rising costs can make it more difficult for local governments to maintain services without stable revenue sources.

Education funding considerations

Education leaders also emphasized the role property taxes play in supporting schools and career technology programs.

Oklahoma has increased funding for education in recent years, particularly since the teacher walkouts in 2018. However, speakers noted that the state still trails many neighboring states in per-student funding.

Because property taxes help fund local school districts, discussions about changes to the tax system often include considerations about how education funding would be affected.

Understanding the broader tax system

Economic experts on the panel said tax policy decisions often involve balancing taxpayer relief with maintaining funding for essential services.

Different taxes influence economic activity in different ways, and changes to one revenue source can require adjustments elsewhere to maintain funding for schools, infrastructure and public safety.

As policymakers continue debating potential tax proposals, panelists emphasized the importance of understanding how Oklahoma’s current tax system supports services that communities rely on across the state.