OKLAHOMA CITY - When the votes were tallied in the state Senate last week on a potential income tax cut bill, one southwest Oklahoma legislator was one of two Republicans who voted no.
A state media outlet reported that during the debate on House Bill 1539, Sen. Brent Howard (R-Altus) said he didn’t think the proposal “went through the process it should have.” The measure, authored by Rep. Mark Lepak (R-Claremore) and co-sponsored by Rep. Gerrid Kendrix (R-Altus), seeks to modify Oklahoma’s individual income tax structure based on state revenue growth.
In addition to establishing lower income tax rates for single and married filers, a key piece of the bill would permit incremental tax rate reductions of 0.25% each year based on the State Board of Equalization’s annual revenue report each December. Total state revenue collections must increase by at least $300 million compared to an established base established with the June 30, 2023, fiscal year. The reductions would continue until individual income tax rates reached zero and tie income tax rates to the state’s economic performance. If signed into law by Gov. Kevin Stitt, the measure would start Nov. 1, 2025.
In addition to Howard voting no, Sen. Darcy Jech (R-Kingfisher) was also opposed along with seven Democrats. The measure passed off the Senate floor, 36-9, and is now headed for a final lap back through the House. With final approval from both chambers, the bill would advance to the governor’s desk.
Stitt has fought for state income tax cut reductions in previous years and this year proposed his “half and a path” plan. If feasible, and approved by both the House and Senate, it will cut 0.5% from the state’s 4.75% income tax rate and begin a path toward no income tax.
Believing that an income tax cut would make Oklahoma more competitive with surrounding states for business growth, the governor is in favor of an immediate tax cut.
President Pro Tem Lonnie Paxton (R-Tuttle), along with Sen. Spencer Kern (R-Duncan) voted in favor of HB 1569.
Revenue is lower this year than in recent years. However, since the beginning of the current legislative term, Paxton has said he is in favor of income tax cuts if those cuts are done responsibly.
Paxton told the media that cutting taxes is a “worthy discussion.”
In other legislative action, he had 15 bills see movement last week with several receiving policy recommendations to the appropriate committees.
Three bills Paxton authored are set for hearings this week. They are:
• Senate Bill 680, which relates to heated tobacco products, specifically seeks to modify the state’s tobacco tax laws and focuses on heated tobacco products. The definition of “cigarette” encompasses products that are intended to be heated rather than burned and will bring the newer tobacco products under tax regulations that are already in place.
Exemptions in the bill would apply to federally recognized Native American tribes with existing compacts, the U.S. government and veterans’ hospitals. This measure is co-sponsored by Rep. Trey Caldwell (R-Lawton).
• SB 684 pertains to income tax credit and specifically relates to the Oklahoma Parental Choice Tax Credit Act for education expenses. It would modify tax years for certain annual credit limits to be enforced. The measure also outlines a procedure for enforcement of the annual limit.
In addition, the bill would require participating private schools to provide enrollment and tuition information to the Oklahoma Tax Commission and allow an audit of claimed expenses.
• SB 1027, which seeks to amend state statutes pertaining to initiative and referendum measures by increasing the requirements for petition circulation, collecting signatures and language put on the ballot. This bill is co-sponsored by Rep. Stacy Jo Adams (R-Duncan).
Paxton also authored Senate Resolution 14, which seeks to commemorate the 90th anniversary of Black Sunday and to remind Oklahomans of the continuing need to protect and conserve the state’s soil, water and other natural resources.
Black Sunday occurred in Oklahoma on April 14, 1935, during the Dust Bowl period of the 1930s and was the worst natural disaster of the time in the United States, according to the resolution. It had a profound effect on the people and the land.
Following the Black Sunday storm, Oklahoma became committed to soil conservation and the protection of soil resources. Oklahoma became a national leader in conservation. Land management practices were put in place that have transformed, protected and sustained the land for the 90 years since the tragic storm, Paxton wrote.
Oklahoma’s soil conservation effort has been a longstanding and effective partnership between local conservation districts, the Oklahoma Conservation Commission and the federal Natural Resources Conservation Service.
Sen. Brent Howard (R-Altus) authored nine bills that saw legislative action last week, with several receiving policy recommendations to the appropriate committees. Two will receive hearings on April 15. They are:
• SB 536, which pertains to county election boards and would authorize certain actions by an assistant secretary under specified circumstances. It would amend state law that pertains to secretary and assistant secretary’s duties and clarify their roles and responsibilities.
For example, the bill would allow the assistant secretary to execute the secretary’s duties during absences due to illness, disqualification, recusal or other approved reasons and provides a formal process for the temporary replacement. This measure, SB 536, is co-sponsored by Rep. Gerrid Kendrix (R-Altus).
• SB 1020, which pertains to the Office of the State Treasurer and would amend state statutes to provide special exemptions related to property purchasing and leasing requirements.