End of Session Round-Up: A quiet year in taxes

Thanks to last year's revenue increases and a strong economy, fueled especially by booming oil and gas revenues, lawmakers entered the 2019 session looking at a large budget surplus  It was clear from the start that tax policy would be far less prominent and contentious than in past years. [More...]

Budget Overview: The rebuilding project continues

Overall, it's best to think of this budget as a second step on what needs to be a long journey. When adjusted for inflation, this budget is still 10.1 percent  below the FY 2009 level. Over half of state agencies still have lower budgets than they did in FY 2009 without accounting for inflation. [More...]

Increasing the scholarship tax credit hurts public schools and benefits affluent Oklahomans

Correction 4/1/19: This post has been updated to correct information about the income eligibility for scholarship recipients.  In 2011, the Legislature passed the Oklahoma Equal Opportunity Education Scholarship Act, which grants tax credits to individuals or corporations who make a… Read more [More...]

Bill Watch: Quieter year expected on the tax front

Some of the fiercest battles of recent legislative sessions have centered on tax policy as lawmakers debated competing tax proposals to limit funding cuts and provide teachers a raise. This year, thanks to a strong economy and recent tax increases, the state's budget outlook is greatly improved. Yet even if the stakes are lower, lawmakers still filed hundreds of bills this session that would revise Oklahoma's tax system. [More...]

2019 Priority: End the capital gains tax break

Download this fact sheet as a printable pdf here. Read about the rest of OK Policy’s 2019 Legislative Policy Priorities here. Oklahoma law provides for a 100 percent deduction from state income tax of any gains from the sale of… Read more [More...]

The real cost of the capital gains deduction could be much more than $100 million, but we have good options for reform

Oklahoma’s capital gains deduction is the most expensive tax incentive in the state, according to reports from the Oklahoma Tax Commission. In 2015-2016, this deduction cost $105 million, and it led to an estimated $474 million in forgone tax revenues from 2010… Read more [More...]

Capital gains deduction is an expensive loophole benefiting a small number of Oklahomans (Guest post: Cynthia Rogers, Ph.D)

Cynthia Rogers, PhD, is a professor of economics at the University of Oklahoma and a commissioner on the State of Oklahoma’s Incentive Evaluation Commission. The Capital Gains Tax Deduction allows Oklahoma taxpayers to avoid paying taxes on income from the… Read more [More...]

2018 Policy Priority: End oil and gas tax breaks

See the full list of our 2018 policy priorities. Download this fact sheet as a PDF. Background Oklahoma’s historical tax rate on oil and gas drilling is 7 percent, but a special tax break gives the industry a 2 percent… Read more [More...]

Repeal the capital gains tax break

A tax break that benefits a small number of wealthy taxpayers and costs the state of Oklahoma around $100 million per year cannot “be credibly shown to have significant economic impact or a positive return on investment for the State,”… Read more [More...]

Private school tax subsidy blurs the line between charitable gift and money laundering (Guest post: Carl Davis)

Carl Davis is Research Director at the Institute on Taxation and Economic Policy (ITEP), a non-profit, non-partisan research organization that works on federal, state, and local tax policy issues. When is a charitable contribution not a “donation” at all?  If a taxpayer… Read more [More...]