The Oklahoma Association of Realtors is against a proposal to cap itemized state income tax deductions.
House Bill 2403 caps them at $17,000 for three years. OAR President Pete Galbraith said that will affect a big incentive for homebuyers.
"The mortgage interest deduction has always been kind of the holy grail, sacred cow of the housing industry, and unless they were to cap it at $30,000 or $40,000, I just don't see any way that the realtors would embrace this," Galbraith said.
Galbraith said effectively capping the mortgage interest deduction will hurt home sales, leading to fewer people buying things like lawnmowers and appliances.
"There's a ripple effect of about $60,000 of economic stimulus for every purchase across the United States," Galbraith said.
HB2403 would bring in an estimated $102 million and is the legislature’s second run at an itemized deduction cap. It exempts charitable deductions, which a previous measure did not do.
Lawmakers say the measure will affect 11 percent of taxpayers. It has not yet been heard on the House or Senate floors.
