Voters panned the effort to change Oklahoma’s reimbursement system Tuesday, preserving incentives for businesses and property tax revenue for local government bodies like public schools and libraries.
Nearly 74% of voters said “no” to State Question 844, per unofficial results from the state election board Tuesday night.
Large manufacturers have been able to claim five-year property tax exemptions in Oklahoma since 1985 as part of a voter-approved effort to attract more business to the state. But that tax revenue is essential for many public entities where those businesses set up shop, so the Legislature reimburses the revenue that would be lost.
The question would have amended the state constitution to give the Legislature the ability to change how much they reimburse local government entities, causing many public school leaders to express concerns.
In Owasso Public Schools, this reimbursement program grants an average of $2.5 million in revenue per year, Superintendent Margaret Coates said at a July board meeting. Without that funding, districts like hers would have to make cuts to staffing, student programs and other operational expenses, she said.
The state question was proposed after lawmakers passed House Joint Resolution 1087. Supporters argued the incentive program was costing too much.
After the vote Tuesday, the constitutionally-bound system of reimbursement and exemptions remains as is.
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