The Oklahoma state legislature recently passed a bill (House Bill 1) that would exempt all state taxes on the sale of property valued at $250,000 or less from capital gains tax. The bill was passed, and signed by Gov. Mary Fallin (R), despite criticism that it could encourage speculative real-estate transactions, and that the bill will transfer a huge amount of cash to the wealthiest Oklahomans.
After last week’s announcement that Oklahoma would join the ranks of states that have enacted the Republican tax plan, the state dropped a bombshell this morning by claiming they will levy a new 1% sales tax in addition to the excise tax on oil and natural gas drilling. The Oklahoma Department of Commerce released a press release early this morning, stating that the state will begin collecting the tax beginning July 1, 2018. The new tax will be imposed on final sales, which would include any goods sold to a consumer or business in the state’s final taxable territory, as well as on gross receipts from any business located outside the state’s final taxable territory.
The Tax Cuts and Jobs Act was passed on Thursday, December 22, 2017, and it’s good news for many Americans. The bill is supposed to cut taxes for the middle class, create jobs and boost the economy. Right now, Oklahoma has the fifth highest child poverty rate in the country, so we thought we’d take a look at how the Tax Cuts and Jobs act will help Oklahoma families. [http://www.ideasforeurope.com/oklahoma-joins-tax-cutters]. Read more about taxes services near me and let us know what you think.
Oklahoma Governor Kevin Stitt.
Sue Ogrocchi/Associated Press
The extension of the pandemic year widened the political gap between Democratic and Republican states, with the latter generally resisting longer shutdowns and performing better economically. Today, Oklahoma rewards its citizens with tax breaks to make the state more competitive.
Republicans control the House, Senate and governor’s office in the Sooner state, and last week
Governor Kevin Stitt
signed the tax bill. The corporate tax rate will be reduced from 6% to 4% on January 1, and the law also cuts the personal income tax rate by 0.25 percentage points. The maximum rate is reduced to 4,75%. In fiscal year 2022, the tax credits could reach $347 million.
During this session, we have not experienced a budget crisis because we have kept the state’s economy as strong as possible while ensuring the health and safety of Oklahoma citizens, said the Speaker of the Oklahoma House of Representatives.
In the dark days of spring 2020, the state projected a revenue shortfall of $1.4 billion, but during the 2021 legislative session there was a surplus of $1.6 billion. It was the perfect time to introduce the tax credits, McCall says.
According to the Tax Foundation, the new tax rates rank Oklahoma sixth among states with an income tax and second among states with a corporate tax, along with Missouri. In Oklahoma, tax increases require a vote of three-fourths of the legislature or a referendum of the voters, so cuts have some power.
Oklahoma is betting that its low taxes will attract businesses and new residents. It still lags behind neighboring Texas, an economic powerhouse that has no income tax. But its rates are competitive with those of other states in the region. According to the Tax Foundation, the Sooner State joins Montana, Idaho and Iowa in lowering income taxes since the pandemic began.
And then there’s New York. Despite gloomy predictions of a pandemic budget, tax revenues have remained virtually unchanged, even in the face of
Governor Andrew Cuomo
severe restrictions. New York City has received tens of billions in pandemic aid from the federal government. But instead of controlling costs, Albany recently raised personal and corporate tax rates, which are among the highest in the country.
California, which last year eliminated a number of deductions for businesses without lowering tax rates, recently announced a budget surplus of nearly $76 billion. That sounds like a reason to cut taxes, but Sacramento is considering a new income tax increase for individuals and businesses, as well as the country’s first property tax.
In its March spending bill, Congress declared that federal funds should not be used to pay for tax cuts in the states. Oklahoma argues that this mandate does not apply in this case because the state executive branch administers the federal pandemic funds and the state funds the tax cuts from the surplus. But it could also affect other states’ tax assessments, and Oklahoma has joined other states in denouncing this unconstitutional attempt by Congress to strip states of their taxing power.
Good luck and in the meantime, congratulations to the legislators and the people of Sunor.
Potomac observation: Republicans have a record fundraising quarter, no thanks to corporate PACs. Images : Getty Images Composite: Mark Kelly
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