Claremore Daily Progress

Top Stories

May 1, 2013

House gives final approval to income tax cut

OKLAHOMA CITY —

The Oklahoma House gave final legislative approval Wednesday to a bill that would slash the state’s income tax rate to 5 percent in 2015 and provide $120 million for improvements to the state Capitol, both top priorities of Republican Gov. Mary Fallin.

The Republican-controlled House voted 65-35, mostly along party lines, to send the bill to Fallin, who is expected to sign it. It would cut the state’s top income tax rate from 5.25 percent to 5 percent beginning Jan. 1, 2015, with a second cut to 4.85 percent set for 2016 if state revenues continue to rise.

Cutting the income tax rate has been a top priority for Fallin, who says a tax cut will help improve Oklahoma’s economy and make the state more attractive to businesses and industries.

“Lowering the income tax rate will let Oklahoma families keep more of their hard-earned money while spurring job growth and business expansion in Oklahoma,” Fallin said in a statement. “My thanks go out to the Legislature for their work on this important issue.”

But Democrats argued the tax cut was irresponsible and would dramatically reduce funding for critical state services such as public education, health care and programs for the poor.

House Democratic Leader Scott Inman questioned the wisdom of approving an income tax cut for 2015 or 2016 when it’s possible that state revenues could plummet before then.

“Even if we fall off a cliff by $1 billion, we’re still going to cut $120 million?” said Inman, D-Del City. “Explain to me how that is fiscally responsible.”

The initial drop in the top rate to 5 percent is expected to have a fiscal impact of about $136 million annually when fully implemented, while the second reduction to 4.85 percent would bring the overall annual cost to $237 million, according to state finance officials.

The savings on the average Oklahoma tax return would be about $82 at 5 percent, and $143 at 4.85 percent, according to the Oklahoma Tax Commission.

Text Only
Top Stories
  • Meth arrests Meth busts net 12 arrests

    Rogers County deputies arrested 12 individuals over the weekend who were allegedly involved in the manufacturing and distribution of methamphetamine near Foyil.

    April 23, 2014 1 Photo

  • Bill to dedicate $600M for Okla. schools scheduled

    A bill designed to increase public school funding by $600 million annually is scheduled for a hearing on the floor of the Oklahoma Senate.

    April 23, 2014

  • Judge Post Judge Post disqualifies herself from DA’s cases

    District Judge Dynda Post has signed a court order removing herself from juvenile or other cases involving District Attorney Janice Steidley’s office because Steidley recently questioned the judge’s impartiality.

    April 23, 2014 1 Photo

  • Rogers County schools experience minimal test disruptions

    Rogers County school districts experienced minimal disruptions Tuesday during end-of-instruction (EOIs) exams. Administrators and teachers were not sure what to expect following the suspension of EOIs statewide on Monday.

    April 23, 2014

  • Construction bid awarded for King Rd. widening

    After some discussion, the Claremore City Council unanimously voted Monday night to award the bid for the widening and resurfacing of King Road to A&A Asphalt, Inc.

    April 23, 2014

  • Oklahoma high court reinstates tax panel's ruling

    The Oklahoma Supreme Court has reinstated a state Tax Commission ruling that rejected an out-of-state company's attempt to claim a tax break on capital gains for Oklahoma-based businesses.

    April 22, 2014

  • Senate passes bill to cut income taxes

    A House-backed plan to cut both the state’s individual and corporate income tax rates has passed the Oklahoma Senate, although a final agreement on a tax cut has yet to be reached.

    April 22, 2014

  • CASA Burrage award Oklahoma CASA Association recognizes Sen. Burrage

    The Oklahoma CASA Association recognized Sen. Sean Burrage for his dedication to Oklahoma’s children at their recent state conference in Norman.

    April 22, 2014 1 Photo

  • RCSO against DOC’s plans to move state prisoners out
    Rogers County Undersheriff Jon Sappington spoke with county commissioners Monday about his concerns with plans to remove state inmates from county jails.
     

    April 22, 2014

  • School board approves date for building bonds sale
    The Claremore Board of Education approved May 14 as the set date for the sale of district building bonds, issued in November 2007 for the construction of Catalayah Elementary, the new Claremore High School gymnasium, Lantow Field expansion and other district renovations.
     

    April 22, 2014