Come join us tomorrow at the Oklahoma City Zoo with OCPA and the Friedman Foundation for the 2009 School Choice Fair from 9 am-noon! The first 300 children get a voucher to get in free. The event will have several private school booths and school choice information. Hope to see you there!

We have just released our legislative issues for this next 2008 legislative session. Click here to check it out.

There's a lot more to the "developer's exception" issue than one could put in a 500 word article in the Oklahoman. The issue is much more complex than that. Here is a collection of some frequently asked question concerning the Developers Exception.

*Is this a call for higher taxes?

No! Americans for Prosperity has never called for, and never will call for, our taxes to be higher. Americans for Prosperity calls for all our property taxes to be lowered... and not just for a few special interest groups but for ALL OF US. We are simply promoting fairness in the tax law and equal treatment under said law.

*Would fixing this exception help lower my property taxes?

Yes, the bottom-line here is that this exception is wrong and unfair to the rest of us who do pay our property taxes, and in all ACTUALITY causes the rest of us to pay much MORE in property taxes due to "developers" not having to pay their share. These special interest groups actually cause our property taxes to go up, because those who take advantage of this law never have to worry about theirs going up.

*Is this a new exception?

The law was passed in '89 and '96 with few amendments since. It is antiquated and vague and simply needs to be fixed.

*Is there a specified type of property that these developers own?

There are only 3 classes of property: Agriculture, residential, and commercial. Nowhere is there a "developer's class" of property in the Oklahoma Constitution. Again, there are no subclasses of properties for developers listed in our constitution.

*How is the developer's exception given out?

It is not usually based on the land in question, instead it is based on the "developer" in question. The developer's exception is nothing more than an exemption of a politically favored group of property owners from the Oklahoma's Constitution's "fair cash value" mandate. Remember, this property tax exception is based on WHO OWNS the property and NOT the use of the property as Mike Means, president of the Builders and Developers Association, would love to make you think! So as long as the "developer" owns the property, and many own properties for years, he will not be taxed based on the fair cash value of the property.

*Do these property tax savings get passed on to me?

No, as soon as you or I purchase the property, it will be taxed on the fair cash value regardless of the use of the property. You may save some money in the initial purchase of the house, but in the long run you will more than make up for the government's lost revenue to these "developers", and the government will take it from your pocketbook.

*What qualifies someone to be a developer?

The law is so vague...even you and I could be considered a "developer" if you pushed the issue. According to some, almost anyone who buys property to build a house is a developer, but it would never get past most county assessors. Here lies part of the problem. This exception is interpreted many different ways here in Oklahoma. Wade Patterson, Tulsa Assessor, or the Enid assessor, or Leonard Sullivan in Oklahoma County, or better yet, the assessor in Cleveland County each interprets this exception differently. Tulsa sues every developer who wants the exception; Enid makes you build something first; Cleveland makes you join their Developer's Association. It is ludicrous and needs to be fixed.

*So, who qualifies to be a "developer"?

In many counties, it's just a wink and a nod, and totally discriminates against those not in the "good 'ol boy" club.

*If it is the "good 'ol boy" system, then are some being hurt by this laws ambiguity?

Certainly! Take a look at Mr. Liddell's lawsuit which is currently in the OK Supreme Court. Mr. Liddell developed and built over 7000 homes, buildings, golf courses, retirement homes, etc, and the assessor there put him completely out of business because he didn't play by their "developer's" rules by joining their little associations, and they stole his properties...all of them.

*Is there any time limits or limitations to how long and who the exception applies to?

Not really. The developer's exception is not fair to anyone but select "developers". Some assessors give builders the exception, and others don't. The use of this exception is so indiscriminate and unfair; I find it hard to believe it made it through the legislature without much of a fight.

This is a true story, and has probably played itself out many times in many other counties, and happens like this: You buy a lot of a certain size. I buy the lot beside yours of the same size. A "developer" buys one right beside ours. You and I are taxed at a value of $150,000 and the "developer" is taxed at a value of $5,952. This has happened and is happening (Cleveland County). All I'm asking for is fairness in the law and equal treatment under the law.

*Is it being misused as an investment tool for land?

Yes, the exception is being abused... and abused badly all over Oklahoma. "Developers" purchase red hot properties and their property taxes never go up. So what do they do? They buy more and more of these properties and hold them until they're worth millions, and in the meantime pay only pennies on the dollar in property taxes. Meanwhile, what's happening to our property taxes? The keep going up because special interest groups don't have to pay their fair share.

*Has anyone challenged this law before?

The issue is currently on the Supreme Court's agenda, and we should have heard something by now, but haven't. In the Home Builders' Association's brief to the Supreme Court, of which Mike Means is the president, they state the following: "The statute can readily be interpreted to offer anyone this interim use value until the lot is improved and occupied; one is not required to be a developer."

Try buying a piece of property and getting an assessor to give you this exception. In my dreams, maybe. Assessor Means and his select group do not have a prayer on this issue. It is unfair to the rest of us who have to pick up the slack for his special interest buddies that he can hand pick to receive this exception. The bottom-line is that a "developer" will be taxed differently when comparing virtually identical lots within the SAME addition and within the SAME use category. This makes this exception extremely unfair!

*Does AFP believe this will fix Education?

As far as Education Spending goes, AFP agrees believes it has become a black hole for our tax dollers. AFP is calling for ALL of our property taxes to be reduced and not just those of special interest groups. Actually, AFP-OK has already selected a few main issues for '08, and "appropriate education spending" is one of them. We feel that OK spends entirely too much on administration. It's more than double and triple to what our neighbors spend on admin edu cost. We have a population of 3.5 million with 539 school districts. Florida has 25 million people with around 75 school districts...and we continue to get D's and F's on our report cards.

Our other issues call for ending the Taxpayer-funded Lobbyist, eliminating the redundant Franchise Tax, and correcting the "developer's exception" law. Of course, we'll never stop calling for good conservative legislation on tort reform, gov't wasteful spending, spending limits, and limited gov't issues.