OKPOLICY.ORG
The House Appropriations and Budget Subcommittee on Finance held a study last week on modernizing the state Sales Tax Relief Credit, which is an income tax credit for low-income people to recover some of the money they pay in state sales tax. The study was requested by House Minority Leader Cyndi Munson, D-Oklahoma City, based on House Bill 3987 that she introduced last session.
HB 3987 would have raised the credit from $40 per dependent in the household to $200 per dependent and raised the qualifying income levels to account for inflation since the Sales Tax Relief Credit was passed in 1990. The committee heard testimony that the $40 credit is worth only $16.50 today. The $40 credit would need to be $97 today to equal its value in 1990. So, HB 3987 would have offered additional tax relief for low-income households. (Note: OK Policy’s Aanahita Ervin spoke at the interim study with an overview of the Sales Tax Relief Credit and how it impacts Oklahoma families.)
I can’t resist recalling how the Sales Tax Relief Credit came into being in 1990.
On February 13, 1990, HB 1017, the $230 million education reform and revenue measure, was brought to the House floor for reconsideration of the emergency clause which had failed earlier by two votes. That day the emergency clause passed the House with the required two-thirds majority (68 “yes,” 31 “no,” and two “excused”) with zero votes to spare. Twelve House Republicans joined 56 Democrats to pass the emergency. Two Republican representatives who had voted “no” earlier switched their votes to “yes” and kept the commitment they had made to Republican Gov. Henry Bellmon.
Later the same day, the bill was brought up on the Senate floor and passed with 25 “yes” and 23 “no.” All 25 “yes” votes were by Democrats. Twelve Democratic senators voted “no” along with all 11 Republican senators. Majority Leader Darryl Roberts, D-Ardmore, held the vote on the emergency over to give Senate leadership and Gov. Bellmon time to round up the votes needed to pass the emergency clause.
There was high drama in getting the votes for final passage of the emergency clause in the State Senate. Proponents were counting six votes short of the 32 votes necessary to pass the emergency. After heroic efforts to get both Republican and Democratic votes on the emergency by Senate leaders and Gov. Bellmon, Sen. Bob Cullison, D-Skiatook, decided to bring the emergency clause to a vote on April 11, 1990, two months after the bill itself had passed.
Sometimes leadership can’t know with certainty how members will vote until the votes light up on the board. That day the emergency failed 27 “yes,” 20 “no,” and one “excused” — five votes short. Sen. Owen Branstetter, R-Ponca City, was the only Republican joining 26 Democrats in voting for the emergency. The bill was held for reconsideration.
Three days later on Saturday, April 14, 1990, Oklahoma Education Association President Kyle Dahlem called for a statewide work stoppage of teachers in Oklahoma. On the following Monday, 8,000 teachers rallied at the Capitol, shutting down 145 school districts in the state.
The next day, Tuesday, April 17, the number of teachers picketing the Capitol grew to 10,000. Other teachers stayed home and demonstrated in their communities. Groups of students organized and called on the legislature to act. On Wednesday, April 18, 18,000 teachers arrived at the Capitol despite the cold, blustery, and rainy weather.
The miserable weather helped the teachers’ cause because it forced them inside the Capitol for warmth during lunchtime and for breaks from their picketing, singing, and chanting. They were shoulder to shoulder with Senators in the hallways and offices. By Thursday, April 19, the last day of the legislative week, the demonstration reached 20,000 strong, and it was clear the teachers were not leaving.
On April 19, the Democratic Senators caucused and, after an emotional five-hour meeting with thousands of teachers outside the Capitol and milling in the hallways, an agreement was reached that produced five Democratic votes for the emergency clause.
The agreement that secured the five Democratic votes required passage of a separate bill, the state Sales Tax Relief Act allowing Oklahomans with household incomes less than $12,000 to file for a refund on the new half-cent sales tax increase that was part of the revenue package in HB 1017.
The Senate returned to session that day and voted to pass the HB 1017 emergency: 32 “yes,” 14 “no,” and two “excused” — exactly what was needed. Sen. Branstetter was the lone Republican voting with 31 Democrats for the emergency to reach the magic number of 32. HB 1017 was on its way to Gov. Bellmon who had called the special session to address “an emergency in education funding,” and Oklahoma had a Sales Tax Relief Credit.
So now, 34 years later, at Rep. Munson’s request, a House committee is looking at bringing the Sales Tax Relief Credit for low-income Oklahomans up to date. It’s never too late to do the right thing.
