downtownguy had a grat explanation of this state question in his blog from Friday. I had even been confused about this question until he explained it.
Anyways, this might be useful to you as you go to the polls on Nov. 2nd.

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From www.downtownguy.blogspot.com, Sat. Oct. 9th, 2004.

"Among the state questions on the November 2nd ballot, is there any more confusing than State Question 707?

In case you’ve not seen it or heard about it, this is what you’ll see:

“This measure amends Section 6C of Article 10 of the Oklahoma Constitution. The amendment deals with the use of certain city, town and county taxes and fees. When authorized by law, cities, towns or counties can put these taxes and fees to use in three ways.. The first use is specific public investments. The second use is aid in development financing. The third use is an income source for other public bodies in the area.

The Legislature can authorize cities, towns and counties to direct the apportionment of those fees and taxes among or between these uses. The amendment allows these apportionments to be prospective. The amendment permits these apportionments to continue from year to year.

The amendment permits cities, towns and counties to pledge certain taxes and fees beyond the current fiscal year and to pledge certain taxes and fees to repay some debts of other public entities.”

Yes, you’re confused. Your response is probably “huh?” And those in the know are equally frustrated with the wording of this question. They fear it will be mistaken as a tax increase. What this is all about isn’t even mentioned on the ballot: Tax Increment Financing (TIF).

TIF’s have become well known in other states, if only because they’ve been used much longer, and much more extensively, than here in Oklahoma. If you want to see how important TIF can be, check out the Presbyterian Health Foundation Research Park, where a biopharmaceutical plant is being built. Picture this entire area as being nothing but a junked up lot along Interstate 235. That’s how it would look without TIF.

Also picture the Skirvin Hotel remaining closed until it burns down - because the pending deal to reopen it as a Hilton also relies heavily on TIF assistance.

So what is Tax Increment Financing, and why does it need a fix at the ballot box?

It’s not a tax increase. Instead, an agreement is usually struck between the county, city, local schools, vo-techs and libraries to declare an area as a TIF district. By doing that, as property values go up in that area, the corresponding tax increase goes back into improving that area instead of going to usual beneficiaries – schools, libraries, county, city and vo-techs.

It’s not easy to understand, but the creation of such districts has been hailed as a key to revitalizing struggling downtowns across the country – and also have been used to lure new businesses and build up existing industries.

The problem in Oklahoma has been that state law never clearly stated whether the TIF proceeds could be used to support the issuing of bonds, which are necessary for big projects – like restoration of the Skirvin Hotel.

This is what the Greater Oklahoma City Chamber of Commerce had to say on State Question 707 and two others on the November 2nd ballot:

Greater Oklahoma City Chamber Board Supports Three State Questions - 9/13/2004

(OKLAHOMA CITY) At the Sept. 10 regular meeting of the Greater Oklahoma City Chamber of Commerce Board of Directors, members voted to affirm board support for three of the nine state questions slated for the general election ballot.
"These three questions are of critical importance to the business community and Oklahoma City," said Burns Hargis, chair of the Greater Oklahoma City Chamber of Commerce.
SQ 707: This question gives local governments more flexibility in implementing tax increment finance districts for economic and community development purposes. The amendment would allow the pledging of apportioned tax increments beyond the fiscal year to repay bonds. "This amendment will give Oklahoma the same ability that the majority of other states currently have in using this powerful economic development tool," Hargis said. "It is critical for rural development as well as larger communities in Oklahoma that this question passes."
SQ 712: This question allows for regulation of tribal gaming and would dedicate a share of the revenue generated from gaming to education. Passage of this question is also important to Oklahoma's horse racing industry and in particular to Remington Park in Oklahoma City because it authorizes the placement of up to 650 player terminals for electronic gaming at the track. "This vote is critical for the future of the track," explained Hargis, "but that is not all. Passage is necessary to bring purses up to a level that benefits the horse industry across our state."
SQ 713: This question increases the tax on cigarette and tobacco products to fund a combination of tax relief for capital gains and significant health initiatives to benefit Oklahomans. "All the components of this question make a positive impact in so many ways, from capital gains tax reduction to matching Medicaid funding to improving trauma care and building a comprehensive cancer center in Oklahoma City. These are critical issues to business and to individuals," Hargis said.

- The Downtown Guy
www.downtownguy.blogspot.com"

While the projects that are proposed are interesting, I disagree with the method.

TIF's pledge future tax revenue in support of projects. Funny... I thought that we already had a HUGE shortfall in tax revenue in just about every county and municipality in the state? This seems like yet another way to plunge these governments even further into debt than they are before.

All in the name of progress?

This "progress" will eventually catch up and the only cure will be more taxes.

At this juncture, SQ 707 is just a bad idea.

As for SQ 712, I have no moral objection to gaming. I just have an objection to this is going to be introduced. So we have a problem with funding in education? Let's throw money at the problem! THAT'LL FIX IT!! Please.

What we need in Oklahoma is some SERIOUS school district consolidation. We need drastic reductions of administrative costs, etc. Any business that spends 80% of its money on salaries wouldn't be in business for very long. We should be holding Sandy Garrett and her cronies to a higher standard.

Besides, do you all actually think that this money going towards education will be much of a net increase in overall state revenue going towards education? Here's what's going to happen on the next funding bill: Say we take in 70 Million on the lottery? Guess what? 70 Million less from the general fund goes towards education -- maybe it'll go to roads, maybe it'll go to some new road between Backass and Pumpkin Center.

I say that the state needs to learn to work with the revenues they already have before we start throwing money at them. It only exacerbates the problem especially with the yay-hoos we have doling out the dough under the Dome here in OKC. I don't trust those good 'ol boys as far as I can throw 'em.

As far as the tribal gaming regulations... I'm all for it. In fact, I'm all for a complete deregulation of gaming! Tax the hell out of it. But don't lie to me and tell me it's for the children. I ain't buyin' it.

As for SQ713: The biggest problem I have with it is that it's essentially a tax on the poor (since far more of them smoke than do well-to-do folks). That aside, I'm all for it. I hate smoking and I hate people who smoke in areas that I have to pass through.

I don't question your right to do it in your own home (as long as you have no children there), but I'll question it in just about every other circumstance. The danger of second-hand smoke is a reality. If a person dies of lung cancer because they choose to smoke, fine, they got what was coming to 'em. But if family members, children of smokers, etc. contract the disease because of all the second hand smoke they were exposed to.. hell.. I think you should be able to file charges.

I will yes them all. Higher cigerette tax may make smokers think twice about invading my healthy surroundings, the lottery and casinos we all know the benefit, although some do not agree that education needs improvement, the marriage proposal, goes without saying, and enableing municipalities to spend tax dollars on civic improvements.

It is a step in the right direction (geographically speaking). However, it is not enough.

End imcome tax, "death" tax, corporate tax, etc. I EARN my income. I do not wish to pay to house these bums on the street.

Forgot... as for the marriage amendment. It's going to be rendered powerless by two things:

1. The 14th Amendment Equal Protection Clause -- "No State shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws."

This amendment clearly is violating the rights of gays to have equal protection under our marriage laws. Unless this amendment is part of the U.S. Constitution, you can forget about it passing judicial muster.

2. Also the full faith and credit clause (4th Amendment) -- "Full Faith and Credit shall be given in each State to the public Acts, Records, and judicial Proceedings of every other State. And the Congress may by general Laws prescribe the Manner in which such Acts, Records and Proceedings shall be proved, and the Effect thereof."

This means that Oklahoma MUST recognize a gay marriage that is licensed in any other state. That includes Massechusetts.

This Oklahoma Amendment is nothing but a ploy to get religious-right folks to the polls and try to get more Republican votes (which I'm actually okay with). It does have the nasty side effect of making us look like a Bible-Belt zealot filled state.

Please note -- I'm not arguing the right or wrong of this, just the legality. Please do not counter with right and wrong arguments because those have nothing to do with my above arguments should you choose to respond to this.

It is called an AMENDMENT. Therefore, a change authorized by the voters. Now. we have been over this. I suggest not discussing it any furtur.

"This Oklahoma Amendment is nothing but a ploy to get religious-right folks to the polls and try to get more Republican votes (which I'm actually okay with). It does have the nasty side effect of making us look like a Bible-Belt zealot filled state. "

So, you think we are a Bible-belt zealot filled state, huh? I don't think so. The Bible belt is something that should not scare you. I am assuming, by your words, that you don't care too much for "religious" folks. Just think how bad it would be without us "religious folk." In the future, you might pass the blame on others, instead of always blaming the "religious folk." Sombody could take offense to that.

An amendment to the State Constitution does not trump the Federal Constitution.

I take no offense to people having religion as long as they don't try to legislate their religion. I have strong feelings about there being a line between religious and secular issues.

I believe in God, Jesus Christ and all that. I also recognize that others don't. I respect their right to not as well as their right not to have to exist under my religion's code of conduct.

How would you feel if someone decided to make a law that required your wife to wear a head scarf when in public? You wouldn't? Okay, now that's how many non-christians feel. I respect your views just as I respect my own, the views of Hindus, Muslims, Jews, etc. When I think about law and what it means to religion, I think each and every religion is equally important. The only way I can reconcile that since many of them clash on almost every issue is to disregard religion and ensure that people have the right to pursue and safely aquire wealth, to be happy, to be free, and to not hurt anyone else in the process of attaining those things. Besides that, I don't think that the law should be used by the majority to opress and restrict the minority, ie. slavery, gay marriage, whatever. You're creating second-class citizens in doing so and that is precisely what our 14th Amendment was designed to stop. All citizens are equal under the law.

I think that good Christians need to look first at their own sins before trying to legislate away the sins of others. Of course, you well know my opinion on this subject as the 'ol back and forth has led to the closing of at least two threads now.

That's why I asked for you to please limit your argument to why anyone thinks that this Oklahoma Amendment will pass Judicial Muster.

Well, the amendments you give don't specifically say anything pertaining to marriage. So, I think it's all how the Supreme Court interprets the law. The 14th amendment does give gays certain equal protection rights under the law, but what exactly is the law regarding marriage in this country? Well, we really don't have a federal law spelling out marriage at the present time, so it's difficult to say how gays fit into that. In some states, state law already defines marriage as being between a man and a woman. So, under state law, gays wouldn't fit into the marriage equation at all. Until more federal laws are written about marriage specifying who and who cannot be married, really there's nothing to go by, and nothing to give gays equal protection under.
Also, in regards to your statement about the 4th amendment...well, there's an obvious disagreement over state laws and federal laws. It will be interesting to see how this carries out. I imagine that eventually the whole gay marrige issue will appear before the Supreme Court. With GW getting re-elected this Fall and probably selecting a few Supreme Court Justices during his administration, I think the outcome will be pretty obvious. The Supreme Court will rule against gay marriage.

Also, take something into account....the Marriage Protection Act passed in the Clinton administration strips the federal courts of jurisdiction over same-sex marriage cases.

If you're in favor of gay marriage, then you shouldn't be voting for GW. That's one thing I really respect GW for....his religious convicitions.

Also, Midtowner, I find it quite interesting that you don't believe in legislating religion but you support Bush. You're quoting a Kerry line when you say that politicians shouldn't legislate religion!

I'm not a single-issue voter. Few people are. Frankly, I don't know what Kerry REALLY thinks about this as he's managed to straddle the issue masterfully trying to pander to both sides.

But that's not the point.

Under the Constitution, if a federal statute or state statute says that marriage is between a "man and a woman", the 14th amendment which affords equal protection to all under the law could easily be found to render such a law unconstitutional because it's denying equal protection by excluding homosexuals seeking marriages/unions, whatever. It's much like saying that only blue-eyed, blonde white people can vote -- that type of a law excludes anyone who's not blue-eyed and blonde and denies them the equal protection or equal right of voting. The 14th amendment is what was applied in Brown vs. the Board of Education, for example to say that seperate does not mean equal. It was the amendment that ended Jim Crow.

I think you're confusing the 4th amendment. While certainly it is true that federal statutes outweigh state statutes and the Constitution and its amendments outweigh federal statutes, that wasn't the meat of what the 4th amendment does. The full faith and credit clause means that states must honor the laws of other states. For example, if I have a conceal and carry permit from the state of Oklahoma, it's valid in Ohio. Also, if two gay folks have a marriage license in Massechusetts, it's also valid in Oklahoma... dig?

Social issues though in this election are really pretty far down on my list. I feel a certain way about them, but obviously, when I look at it from a logical, academic and legal standpoint, that puts me in the minority -- most look at it from a religious and emotional standpoint.

What matters to me are economic ideas, I'm a Keynesian type of guy -- so is Bush. When it comes to foriegn policy, I don't believe we should have to ask France if it's okay to protect ourselves from terrorist threats -- Kerry does. Those are really much more important issues to me (probably because I'm very happy to be a heterosexual and am not effected by that kind of social policy).

I'm posting this editorial because I think it's important that we all support SQ 707. What this does is make it easier to develop. TIF financing is NOT a tax increase. As the editorial points out -- when values go up on these properties, the amount added goes on to pay for the financing tool -- whether bonds or loans, etc. Think about it this way: if we had placed a TIF in Bricktown, where property values have gone up 235% can you imagine how much could be collected?

It should not be confused with general tax collection because it isolates the money. Only the increases in collection (and they usually do increase -- usually there's no place for a district considered for TIFs to go but up) are assigned to pay off the debt. Only the debt will be paid by the money. And only from the properties in the district.

However, OKC has been using this with one of its hands tied behind its back because the constitution did not allow for multi-year allocations for projects that need more than one year's funding.

TIF districts are a good thing. It is not more government, not another diversion of tax dollars. It is a self-sustaining tool that needs constitutional authority to function.

District values WILL rise, and TIF is a way to take advantage of that growth. It's like borrowing money to cut a single, securing the publishing rights, making money off its sales, and earning royalties whenever it 's used.

Oklahoma City will only gain from its use.


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TIF' proposal to boost economic development

By Danny George

The Oklahoma Municipal League's board of directors has voted unanimously to support State Question 707, which will provide a great economic-development tool for all cities and towns without raising taxes.

Although the words "tax increment financing district" aren't mentioned in the state question, that is basically what this issue is about. A tax increment financing (TIF) district is an area within a community that is not likely to be redeveloped through private efforts.

Within the designated district, a municipality can loan money for public improvements and construction. Once development of the property within the district occurs, the assessed value of that property increases. The property tax revenue produced by this increased value -- the incremental increase or "increment" -- is used to pay the eligible or public costs of the project, either directly or through the issuance of bonds.

Passage of SQ 707 would allow cities to pledge these new monies, in advance, to entice business opportunities to move forward and invest in the community. No taxes are raised.

TIF districts already exist. However, the current version only allows municipalities to collect the monies for a year. If they want to pledge the apportioned dollars beyond the current fiscal year to repay bonds, they must get annual approval from the voters. Under SQ 707 citizens would still have to approve TIFs -- but the city just wouldn't have to hold a costly election every year.

Several TIF projects have proven successful to spur economic development and growth in Oklahoma. For example:

Presbyterian Health Foundation Research Park in Oklahoma City. To be able to use TIF for the research park, the Presbyterian Heath Foundation advanced funds in the hope of repayment when TIF bonds could be sold. Already 1,000 jobs have been created with an annual payroll and benefits combined in the $70 million to $80 million range.

Seaboard in Guymon. In an economically depressed area, the purchase of TIF bonds by a business affiliate was necessary to overcome marketability problems of this project. The direct investment exceeds $110 million and created 3,200 jobs. This led to a 50 percent reduction in unemployment and an almost 50 percent increase in per capita income.

In Guymon, new businesses purchased the bonds, which avoided the marketability problems that currently exists for cities and towns with the year-to-year restrictions.

Nancy Nichols, director of administration for the city of Edmond, says this would be perfect for Edmond to further develop its downtown area. But until the language is amended to keep it from going to a vote every year of the 15-year life of a TIF, she doubts whether Edmond would attempt the mechanism.

SQ 707 would streamline the process and provide a great tool for cities to spur new businesses and jobs. We strongly urge your support on Nov. 2.

George is executive director of the Oklahoma Municipal League, an association of cities and towns representing 450 municipalities statewide.

__________________
True greatness requires many fathers.

For a good time, see http://www.okchornets.com/

I will take the message one step further. I will vote yes on every state question we have this year.

After reading the property tax issue, it sounds fine. I will ALWAYS support a lottery even though I think the funds should go in the general fund, will always support casinos (this one should not be here anyway because it was already approved, then repealed). Casinos are a right. They are VERY HIGH tourist and revenue draws. The other has been discussed to the point of exaustion. I think we know how we all stand on that one.