Oklahoma lawmaker continues attack on business tax credits

HB 1372 would sunset all existing tax credits as of July 1, 2014. Dank said that date would give lawmakers time to examine each tax credit, change it to meet the new criteria or let it expire on the sunset date.

A House of Representatives committee is scheduled to take up both bills next week.

Related to income tax

Four proposals introduced last year basically called for cutting the top personal income tax rate of 5.25 percent by more than half, but the proposals depended on eliminating virtually all tax credits and deductions to help make up for lost revenue.

Gov. Mary Fallin earlier this week called on lawmakers to reduce the rate to 5 percent and use state revenues to make up the lost funds, estimated at $120 million annually when fully implemented.

Dank said the issue of state income tax relief is more important now because many Oklahoma taxpayers are likely to face higher federal income tax bills in 2013 as a result of the federal fiscal deficit.

Various pieces of legislation to change the way tax credits are issued were killed last year in committees. Legislation to end the transferability of tax credits failed in the House Budget Subcommittee on Revenue and Taxation. A bill in a House budget committee that would have extended the existing moratorium on tax credits also failed.