Oct 22, 2024
OKLAHOMA CITY (KFOR) — Some Oklahomans say they’re confused by a question that will appear on ballots next month, which would allow for “Public Infrastructure Districts” to be established within cities if passed. News 4 is breaking down for voters exactly what the proposal means. State Question 833 (SQ 833) will appear on Oklahoma voters’ ballots during the Nov. 5 general election.   Two lengthy paragraphs appear on the ballot to describe SQ 833. The description essentially says, if passed, SQ 833 would allow for cities in Oklahoma to establish Public Infrastructure Districts –or PIDs—within their city limits. What would Oklahoma State Question 834 do if passed? PIDs would be able to establish a special property tax to fund and maintain infrastructure and amenities within their boundaries. Below the ballot description of SQ 833, voters will have the option to vote for or against the proposal. But what is a Public Infrastructure District? It gets complicated. Take the following hypothetical scenario: You own a big, empty field that you plan to develop and build a neighborhood on. Obviously, the neighborhood will need things like roads, sidewalks, sewer systems and other public infrastructure to be functional. Additionally, you—the developer—may want to build shared amenities like a pool, golf course, or club house to make the neighborhood more attractive to potential homebuyers. As it stands right now, the developer typically pays to build things like roads and other public infrastructure, as well as shared amenities like pools and club houses. Typically, once the developer builds them, they cede those things over to the city, or maybe a homeowner’s association—to pay to maintain moving forward. State question to raise minimum wage moves forward But now, assume the big empty field you plan to develop falls within a Public Infrastructure District. In that case, the developer can still build the public infrastructure and shared amenities, without having to pay for them. Instead, the Public Infrastructure District could pay to build them, and also pay to maintain them moving forward. That’s because, under SQ 833, a Public Infrastructure District could charge an additional property tax to all property owners within the PID’s boundaries. The tax would have a maximum mill rate of 10—meaning property owners could be charged up to 100 dollars for every $100k their property is worth. Property owners in a PID would still have pay all other normal property taxes and HOA fees in full. “This is another tool in the tool belt,” said State Sen. John Haste (R-Tulsa) who co-sponsored the bill that got SQ 833 on the ballot. “We're a destination state and then we've got new businesses coming in. So with that, we have growth. So we have needs for, more housing, affordable housing, all types of housing and developments, that kind of stuff. So I had conversations with a variety of people, and then we looked at some other states, what they were doing. Utah, Missouri, Texas, Colorado. And in those states, Public Infrastructure Districts were one of the things that were being used." Recreational marijuana failed – now what? Haste argues PIDs would save cities the money they would have ordinarily spent maintaining roads and other public infrastructure, since PIDs could pay for them instead, if SQ 833 passes. Similarly, he says it could save HOAs costs on shared amenities they typically maintain in the same way.   He also claims—with developers no longer having to foot the bill for building public infrastructure—they could be inclined to pass those savings on to home buyers.   “This way it's spread out more and so therefore and you know exactly what you're paying and which will also then bring your cost of lots down,” Haste said. Haste says PIDs would be each be overseen by their own chosen board.   The process for creating a PID within a city if SQ 833 passes would not require an election. Instead, any property owner would be able to petition a city to create a PID. 100 percent of the property owners in a proposed PID’s boundaries would have to sign the petition supporting the proposed PID in order for it to advance. If it advances, the proposal would then go before the city council. State Chamber, OK Farm Bureau challenge raising the state’s minimum wage If a majority of the city council votes to approve the proposal, the PID would be established.   But if even one of the property owners in a within a proposed PID’s boundaries refuses to sign the petition supporting it, the PID proposal dies. While it may seem like a tall task to try to get every property owner in an area on board with a proposed PID, there would be another, easier way to get a PID proposal before a city council: get it approved before anyone else lives there. Assume the following hypothetical example: The owner of a big, empty field can petition for a new PID to include the big empty field, and only the big empty field, within its boundaries. In that case, the only person living within the proposed PID’s boundaries would be the big empty field’s owner, meaning they would be the only person needed to sign the petition in support of the PID in order to get the proposal in front of the city council. Assuming the city council votes to approve the PID for the big empty field, the field’s owner could then develop the field with houses, and anyone who buys one of those houses would, by default, be subject to the PID’s property tax. Not all Oklahoma lawmakers like that idea. “It gives, essentially, a homeowners association the taxation power of government,” said State Rep. Andy Fugate (D-Del City). ‘Leave it at home’: A reminder that wearing or doing certain things at the polls could get you in trouble Fugate worries, if passed, sq 833 wouldn’t include anything that could prevent a PID from making its publicly-funded infrastructure inaccessible to all citizens. “You could have a scenario where you have a landowner who owns all the property in a square mile area, and they turn that into an ultra-exclusive gated community,” Fugate said. He also thinks people paying in to a PID might feel less inclined to support things like school or city bond measures.   “My fear is that people will buy property in this exclusive area, in this exclusive community, will take a look at their property taxes and say, you know what? I can reduce my property taxes by voting against these other bonds that don't really help me at all,” Fugate said. As for Haste, he says you wouldn’t have to live in a PID if you didn’t want to. “It's not forcing anyone to do anything,” Haste said. “And an individual can say, This is not for me, that's fine. You do not have to participate. Someone else says, Yes, this worked for me, then fine, but you have choice.
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