Nearly $5 billion in tax credits and exemptions were given away in 2010 in Oklahoma. These tax credits take funding away from the 650,000 students that are educated in our public schools by reducing the amount of money in the state’s general revenue fund, further crippling our under-funded schools.
During the 2011 Legislative Session, Representative David Dank passed HB1285 creating the Task Force for the Study of State Tax Credits and Economic Incentives. The Task Force aims to find any credits that are no longer serving their purpose to help free up funds to the many programs receiving cuts.
One of the main areas of focus for public education is the Ad Valorem Reimbursement Fund that was reviewed at the August 26, 2011 meeting. The number of manufacturers participating in the five year ad valorem exemption program has sky rocketed over the last several years making it difficult for the state to keep up with the amount of reimbursements owed back to public schools.
Aug 10 - Dank questions need to reimburse locals for five-year ad valorem tax exemptions
The next meetings for the Tax Credit & Expenditures Task Force is on September 28, 2011 at 10am in the House Chamber at the Oklahoma State Capitol.
Five Lessons From the Task Credit Task Force Meeting
Tax Breaks: Setting out the case for and against
Dank fears revenue loss when tax-credit moratorium expires
The Task Force shall conduct a study
regarding all state tax credits regardless of the tax type against which
such credit may be claimed and any other economic incentives that
affect state or local tax liabilities. The study shall include, but
shall not be limited to:
- The justification for the enactment of any state tax credits based
upon the relevant economics of the applicable industry or economic
- The economic impact related to the utilization of state tax credits;
- Analysis of the utilization of the credits by tax credit purchasers;
- The impact of tax credits on any and all economic sectors of the state economy;
- The adequacy or inadequacy of state tax credits or other economic incentives; and
- Such other matters related to state tax credits or economic incentives as the Task Force deems relevant.
We will be in attendance to each of these meetings and will be posting real-time updates on Facebook and Twitter. So be sure to follow us if you are not already. You can also sign up to receive our social media updates as text messages to your phone.
- September 28, 2011, 10am-4pm - House Chamber, State Capitol [agenda]
The Task Force will review the following:
- Home Office Tax
Credit (Insurance Premium Tax)
Production Tax Exemptions for Horizontal Drilling, Deep Wells and
Enhanced Recovery Methods