The Oklahoma House of Representatives Appropriations & Budget Committee passed legislation by Rep. Lonnie Sims, R-Jenks, to update the statutory income qualifier to claim an additional homestead exemption. The qualifier has not been raised since 1997.
House Bill 1009 increases the statutory income qualifier to claim an additional homestead exemption from $20,000 to $25,000. The additional homestead exemption reduces, by $1,000, the assessed valuation on the homestead of a homeowner whose gross household income is below the income qualifier limit.
Sims explained that current statute outlines that Oklahomans aged 65 and older who previously qualified for the exemption are no longer required to file annually, but many retired Oklahomans still do. This puts local tax assessors in a position of having to take away the exemption when informed that the homeowner’s income has increased above the current qualifier of $20,000.
“Many Oklahomans are losing their homestead exemption because of the cost-of-living adjustments that have affected their Social Security income throughout the past 24 years,” Sims said. “Unfortunately, this has pushed many of their incomes beyond the current qualifier. While this tax savings is not much, it can help an individual who is living month-to-month. It’s time we address this so they can keep this benefit.”
On average, the double homestead exemption results in a savings ranging from $87 to $137 annually.
HB 1009 is modeled after legislation Sims authored in the 57th Legislature, House Bill 3653, which passed the House unanimously in March 2020 but was not heard in the Senate due to the pandemic.