Supreme Court hearing focuses on whether State Question 843 should be blocked before supporters begin collecting signatures.
OKLAHOMA CITY – The Oklahoma Supreme Court heard arguments this week in a legal challenge to State Question 843, a proposed ballot initiative that would gradually eliminate property taxes on owner-occupied homesteads, with Vice Chief Justice Dana Kuehn questioning whether the court should intervene before supporters have even begun collecting signatures.
The case, IP-123982, challenges the legal sufficiency of the proposed state question, which would phase out homestead property taxes over three years.
According to reporting by The Oklahoman, Kuehn raised concerns during Tuesday’s hearing about whether the court should weigh in on the proposal before the initiative petition process has run its course.
The challenge was filed by a group of 10 Oklahomans who argue State Question 843 violates multiple provisions of the Oklahoma Constitution and could threaten funding for public schools, CareerTech programs and other local government services that rely heavily on property tax revenue.
The proposal, backed by Rep. Jay Steagall, Sen. Shane Jett and former state Rep. Mike Reynolds, would reduce homestead property taxes by 33.3 percent in 2027, 66.7 percent in 2028 and eliminate them entirely beginning in 2029.
As reported by The Oklahoman, proponents argued during the hearing that Oklahoma courts have historically afforded broad protection to the initiative petition process and that voters should ultimately decide the issue.
Opponents contend the proposal is unconstitutional and could result in substantial revenue losses for schools and other local entities funded through ad valorem taxes. Estimates prepared during the initiative review process projected more than $1 billion in annual revenue reductions once the exemption is fully implemented.
The challenge has paused the initiative process since April while the Supreme Court considers the case.
No timeline has been announced for a decision. If the court allows the measure to proceed, supporters would still need to gather approximately 92,000 valid signatures before the proposal could be placed before Oklahoma voters.
A ruling from the Supreme Court will determine whether supporters can move forward with what could become one of the most significant tax policy questions presented to Oklahoma voters in recent years.
Source: Courtroom details and descriptions of oral arguments are based on reporting by The Oklahoman.
