Choctaw's police department works out of a former hardware store. Officers moved there in 2002 after a tornado destroyed the previous station, and the building has one jail cell, made from half of a shipping container. Police Chief Kelly Marshall described the space that way to FOX 25 in August.
A new police station was one of three projects on the Aug. 25 special election ballot. Voters turned the whole package down. A month earlier, the City Council had approved a separate plan to pay for growth on about 400 acres of mostly open land. Choctaw's general city budget gets no property tax for operations, so the city's capital projects mostly depend on what people buy at the register inside city limits. The new districts are a way to fund growth from new stores and new construction on that land, without raising the citywide rate voters just refused to raise.
Why a new Choctaw home adds little to City Hall's budget
Most buyers coming from out of state assume that a growing city pays for itself as rooftops go up. More homes, higher assessments, more money for parks and public safety. Oklahoma cities don't work that way.
The City of Oklahoma City's tax page explains that Oklahoma cities and towns cannot levy property taxes for day-to-day operations, so sales tax makes up most of a city's general fund. Choctaw put its own version of that plainly before the August vote: "Choctaw does not receive City property tax revenue for municipal operations. Sales tax is the City's primary source of local revenue for capital improvement projects." That statement is on the City of Choctaw's live feed.
Choctaw homeowners still get a property tax bill, but none of it goes to the city for operations. A new subdivision adds residents who need roads, patrol and parks. Outside a tax increment district, its main contribution to city capital projects comes from what those residents spend at Choctaw businesses.
The rate already reflects this. The Oklahoma Tax Commission's October 2026 report lists Choctaw's city sales tax at 5.25%. Add the 4.5% state rate and Oklahoma County's 0% from the OTC's 2026 rate chart, and a taxable purchase in Choctaw carries 9.75%.
What voters turned down on Aug. 25
The city asked for a dedicated ¾-cent sales tax with a maximum term of 20 years. On every $100 of taxable purchases, 75 cents would have gone into a fund limited to the projects on the ballot. Those projects were:
- The city's first YMCA Recreation and Wellness Center, estimated at $27 million
- Fire department building improvements and apparatus needs
- A new police department
FOX 25 reported that voters rejected the measure 58% to 42%, and that some residents felt Choctaw's sales tax was already too high. That objection is reasonable once you see the math. Without property tax for operations, the city's main lever for new capital money is the same rate residents pay at checkout. A 9.75% rate would have become 10.5%.
The City Council's Oct. 6 and Oct. 20 agendas carried no new sales tax election and no replacement plan for the recreation center. The YMCA project had been presented as depending on voter approval, so for now it is a proposal without a funding source.
The council's other answer: grow the base instead of the rate
On July 21, all seven council members voted to create Tax Increment Districts No. 2 and No. 3 under Ordinance 989-2026, according to the Choctaw Times. The districts cover about 400 acres of undeveloped or underdeveloped land, generally between NE 10th Street and NE 23rd Street, from North Hiwassee Road to Triple X Road.
The two districts split the work. TIF No. 2 captures future sales and lodging tax from the area. TIF No. 3 captures future ad valorem, or property tax. No new tax is created. The agencies that already collect taxes there agree to give up their share of any new revenue for a set period, and the city invests that money back into the area. Those partners are Oklahoma County, the Oklahoma County Health Department, Eastern Oklahoma County Technology Center, Choctaw-Nicoma Park Schools and the Metropolitan Library System.
The districts run for 25 years and are projected to generate about $38 million. The plan estimates about $30 million of that going to public improvements: utilities, streets, sidewalks, parking, parks and amenities. The city's TIF information page describes a mixed-use area with housing, businesses, walking trails, and golf cart paths connecting the golf course to Bouse Park through neighborhoods and business districts.
This is the one place where new construction does feed city projects directly. Inside these districts, growth in both sales tax and property tax from new development goes toward the area's infrastructure for 25 years, and the citywide rate stays at 5.25%. Outside them, the general rule from the last section still applies.
Committed, planned, or only possible
The ordinance sets up the financing, and any building depends on development actually arriving. City attorney Daniel McClure said as much at the June hearing, as reported by the Choctaw Times: "All that the council is trying to do is set up the tee to swing the bat." Here is where each item stands:
| Item | Status as of late October 2026 |
|---|---|
| TIF Districts No. 2 and No. 3 | Approved July 21; Ordinance 992-2026, on the Oct. 6 agenda, corrects the legal description |
| Private developer or retail tenant in the TIF area | None named in the project plan |
| About $30 million in public improvements | Projected over the 25-year term, depending on new tax revenue |
| Trails and golf cart paths to Bouse Park | Part of the plan's described vision |
| Choctaw Road widening south of NE 23rd | Possible TIF use, explicitly "not promised" |
| YMCA recreation center, police station, fire upgrades | Unfunded after the Aug. 25 vote |
The Choctaw Road item deserves a closer look. The TIF's wider project area covers nearly 14 square miles, which is larger than the City of Harrah, so the money can reach well past the 400 acres. Ward 3 Councilman Cody Brewer told the Choctaw Times that the mile sections along Choctaw Road, from 23rd Street south to the city's southern border, were added "to give the ability (not promised)" to address traffic and possibly widen the road.
Choctaw has tried this before
This is the city's second time using the tool. Oklahoma Commerce's 2025 register lists Choctaw TIF No. 1 as established March 2, 2009, with $9.675 million in authorized project costs for infrastructure meant to support retail, office or residential development. It expires June 30, 2029. At the June 16 public hearing, a former councilman pointed to the empty land still sitting in that original district. A planning commissioner said he wasn't against a TIF in general but considered this plan not yet ready.
The base the new districts would build on is moving, if slowly. OTC reports show Choctaw's city sales tax distribution at $1,022,364 in the October 2026 report, up about 11.5% from $916,899 in October 2025. The September 2026 report was essentially flat from a year earlier, at $1,053,001 against $1,053,904. One strong month and one flat month don't make a trend, but neither one shows a shrinking base.
Retail is also returning to NE 23rd. Goodwill of Central Oklahoma opened a store on June 25 at 14407 NE 23rd St. in Choctaw Plaza. The building had been vacant for several years after the Williams grocery closed, according to the Choctaw Times. Each storefront that reopens adds to the same sales tax stream that pays for city capital projects.
What this means if you're comparing Choctaw
Choctaw is often chosen for land, two-lane roads and quick access to Tinker. Those things are true today and don't depend on any council vote. What the summer's decisions settle is a narrower point. Amenities that don't exist yet in Choctaw will need either new development inside the TIF districts or a funding vote that passes, and voters have already declined to raise the sales tax rate once. A buyer expecting a rec center or a wider Choctaw Road within a few years is betting on that development showing up.
Before you pin a decision on a future amenity, watch these items:
- Council agendas on the City of Choctaw's agenda portal. A named developer or tenant in the TIF No. 2 and No. 3 area would be the first sign of private investment.
- Any new sales tax proposal. The rec center, police station and fire upgrades need a funding source, and the last one didn't pass.
- Choctaw Road. It's in the TIF project area, but widening hasn't been promised or scheduled.
- June 30, 2029. That's the listed expiration date for TIF No. 1, the district the 2026 plan is now measured against.
- Monthly OTC sales tax reports. These are public and show whether the base the city relies on is growing.
This post is general information about how Choctaw funds public projects. It isn't legal, tax or financial advice, so please confirm how any tax or district affects your situation with the right professional.
If you're weighing Choctaw against other communities near Tinker and want help sorting what's already in place from what's still on the drawing board, Kat Kosmala Group is glad to go through it with you, road by road and timeline by timeline. Contact Us when you're ready to talk.
