State House passes 'inflation relief' package while Senate adjourns

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OKLAHOMA CITY – The Oklahoma Legislature, echoing the tension that headlined the final days of 2022’s regular session, endorsed several bills to fund projects with federal American Recovery Plan Act money and passed a package of bills to reduce taxes on Oklahomans.

Well, at least the House of Representatives did.

Last Wednesday the House of Representatives passed eight tax reduction bills in a special session labeling them ‘inflation relief.’

Legislation included bills that phased in a two-year income tax reduction, a two-year sales tax relief credit that ranged from $40 to $200, several bills that would reduce or end the state’s portion of the sales tax on groceries and a measure that allocated more money to the state Health Care authority “due to agency receiving larger than anticipated federal matching funds.”

The state Senate, however, wasn’t so accommodating.

While the House was still in session working through its tax cut legislation, the Senate adjourned for the day. The Senate’s Republican leadership indicated they weren’t sure when the Senate would return.

At the same time, Senate Republicans raised questions about the legality of passing of passing the House tax relief package. Senate Pro Tempore Greg Treat criticized the House’s action saying it wasn’t sound policy. Treat, an Oklahoma City Republican, told The Oklahoman newspaper the House was wasting taxpayer money for a political stunt.

The back-and-forth echoed the final week of the legislative session when legislative leaders and Gov. Kevin Stitt threw political barbs at each other in dueling media statements.

House Majority Floor Leader Jon Echols issued a terse statement calling on the Senate to act on the legislation.

“The inflation relief the House delivered can become law as soon as the Senate stops delaying and starts acting,” Echols (R-Oklahoma City), said. “The House desk remains open to receive whichever bills the Senate passes so the governor can sign them into law, contrary to inaccurate statements otherwise.”

House leaders also took issue with the Senate’s claim the bills could not become law. Citing the House’s legal staff, Echols and McCall said the bills were proper. “Because the House directed its desk to remain open after the special session Sine Die motion, the bills can be received after the Senate votes on them and sent to the governor for signature,” the pair’s media statement said.

“The bottom line is if the Senate was passing bills instead of fabricating false legal excuses, Oklahomans could stop paying state sales tax on groceries come July 1. If senators don’t want to help Oklahomans, they should just say so and stop blaming everyone but themselves,” Echols said.

While the debate raged over the Legislature’s attempt at tax reduction, lawmakers did consider several measures that funded projects with American Rescue Plan Act funds.

Those bills included several that funded programs at state CareerTech schools and one which appropriates $15 million to complete the new School of Optometry at Northeastern State University in Tahlequah.

“The NSU School of Optometry is one of the crown jewels of our state,” state Rep. Bob Ed Culver (R-Tahlequah) said. “The work that they do training future optometrists is felt across the world, and this funding will help them continue that important work far into the future. The campus also happens to be located in the most beautiful area of our state, my hometown of Tahlequah. I’m proud of the work they are doing.”

State lawmakers are reviewing more than $18 billion worth of budget requests for ARPA funds. The Legislature has until December 2024 to allocate money for specific projects. Federal law requires that the ARPA funds be spent by December 2026.