OKLAHOMA CITY – Sweeping tax code reform and workforce initiatives will dominate the State Chamber of Commerce’s lobbying efforts in the coming weeks.
Several lawmakers championed numerous bills chamber officials touted during a press conference held Feb. 6 at the state Capitol.
“We want to make this the best state in the country to do business, raise a family and grow here,” said Emily Crouch, chamber vice president of governmental affairs. “This agenda supports that mission.” Tax code reform State Rep. Gerrid Kendrix (R-Altus) is a CPA who said the tax code is difficult for business owners to navigate and should be “streamlined.”
Kendrix said he wants to see the state move from a six-bracket tax code to a single bracket tax code.
“Anybody that pays taxes would see the exact same tax break,” he said.
Senate Bill 304 would impose a flat 4.5% income tax with a standard deduction of $13,550 for single filers, $24,900 for joint filers and $19,225 for those filing as head of household.
Oklahoma’s six tax brackets range from 0.25% to 4.75%, according to SmartAsset, which publishes financial advice and tax tools.
According to Corporate Finance Institute, some experts say flat tax leads to growing economies, while others say there is a lack of evidence to support that claim. Critics also say a flat tax places financial strain on middle- and lower-income earners.
Kendrix also championed tax reform which, he said, would keep more businesses in Oklahoma. Businesses are assessed for taxes based on payroll, property, or sales, but Kendrix supports a single sales factor to compete with states which use it.
“We wind up having our state businesses, that here inside the borders of the state, paying more based on the fact that they have assets and payroll in the state than someone just across the state line,” he said.
While SB 60 calls for a single sales factor, House Bill 1200 would allow businesses totaling or exceeding $100 million in property investments or expenditures to choose either the sales factor method or the current threepronged method. All other corporations will be required to use the single sales factor apportionment formula to determine state taxable income.
According to revenue impact statements for both bills, the measures could lead to a decline in corporate income tax revenue for the state. Workforce initiatives Bills aimed to boost workforce include tax credits for businesses that offer childcare services for their workers, incentives for work-based learning and further staffing for the Oklahoma Workforce Commission.
SB 95 would allow a business to offer unpaid apprenticeships or internships and include them in workers compensation coverage.
Sen. Ally Seifried (R-Claremore) spoke of work-based learning to increase skilled workforce readiness “on the job, day one” to boost the workforce.
'I think this can really be a really good opportunity to try to open up some opportunities for our students and our businesses who are struggling… to run their business and find the employees, and they also want to support the future workforce,' she said.
Rep. Suzanne Schreiber (D-Tulsa) advocated for several bills that would create a tax credit for employers that provide onsite childcare, reimburse workers, or secure slots for the children at existing daycare facilities.
The Greater Oklahoma City Chamber of Commerce estimated in 2023 the shortage of childcare access costs the state $1.2 billion each year, according to news reports.
“We still have only one (childcare) spot for every three children in the state and we still have rates that are costing families as much as instate tuition,” Schreiber said. “This is an issue we have to work on.”
HB 1848 would provide a 30% tax credit for businesses who share the cost of childcare with employees or provide childcare. The credit is capped at $30,000.
Schreiber proposed similar legislation last year without success, but said she is encouraged to make another attempt.
“…this (childcare) is workforce infrastructure and people are coming to that understanding as we are advocating,” she said.
Two Senate bills address workforce development programs.
SB 662 is an amendment that requires the Oklahoma Workforce Commission to implement and expand workforce development programs. SB 663 transfers the Oklahoma Workforce Coordination Revolving Fund from the Department of Commerce to the Oklahoma Workforce Commission.
The Legislature created the commission in 2023.
Rep. Brian Hill (R-Mustang) said the commission will launch a soon-to-be data hub “to identify economic trends and workforce needs.” The commission also recently hired a director and will move to fully staff the agency, he said.
According to findings published in December 2024 from the U.S.
Chamber, Oklahoma has 52 workers for every 100 jobs. Oklahoma Career Tech Board said in a January 2024 news release that the state has a shortage of skilled workers, including healthcare, automotive, construction, broadband, and aerospace. Legal reform Rep. Erick Harris (R-Edmond) spoke in favor of HB 2619 to require disclosure from entities which fund lawsuits. The lawmaker has a background in business litigation.
The amendment measure targets third parties from funding “frivolous lawsuits” which are recruited to pay for lawsuits against businesses, Harris said.
The bill would require a third party to disclose a “commercial litigating funding agreement,” but also states a “consumer litigating agreement” would be exempt.
“We don’t care about Mom funding litigation related to their daughter’s personal injury claim,” Harris said.
Harris also said the bill bans litigation involving “foreign adversaries of the United States.”