Oklahoma has personal property tax, although somewhat famously, the state’s property taxes are amongst the lowest in the nation. Almost all property in the state is liable for property tax, though there are a few exceptions.
Oklahoma’s personal property tax is levied only on tangible property. As such, assets like land or a house might be taxable, but intangible assets like trademarks, intellectual property, and similar don’t qualify for personal property tax.
Intangible property became exempt from taxation in Oklahoma with the passage of State Question 766 in 2012.
Notably, property tax is a tax on wealth, as opposed to some better-known forms of taxation like those on income or sales. It’s also less regressive than sales tax or excise tax. Yet, the tax isn’t very popular amongst citizens, and farmers or agriculturists don’t have many good things to say about it!
Yet, there have been attempts in Oklahoma to make the tax fairer by reducing the rates for senior citizens or disabled taxpayers. Similarly, some relief might be provided to citizens on some criteria like age, income, or type of property.
Personal property taxes in Oklahoma is used only by local governments. Generally, a county assessor works to assess the Fair Cash Value of the property. According to the constitution of Oklahoma, property tax cannot be levied against more than 13.5% or lower than 11% of the fair cash value of a property.
Tax rates and assessment ratio used to calculate the property tax should stay within the limits of the Oklahoma constitution. A local government cannot change the property tax rate of its own volition. Such a change is possible through voting by the taxpayers in the region.
Personal property tax in Oklahoma accounts for roughly 20% of the total state and local tax revenue. It has seen some growth recently with new buildings coming up and an increase in the value of existing property.