The House sent 381 House bills and joint resolutions to the Senate by the March 24 third-reading deadline for bills in chamber of origin.
House Republicans sent the Senate nine bills and joint resolutions directly intended to provide much-needed tax relief for hard-working Oklahomans. With inflation at a 40-year high, Americans across the country are feeling the burden of the federal government’s out of control spending.
More states cut taxes – especially income taxes – last year than any year since 1986, which means Oklahoma must stay vigilant on tax relief to stay competitive economically. Due to wise budgeting, we’re in a position to help provide relief to hardworking families.
With revenues and reserves at all-time highs and our annual general revenue fund collections 21% above estimates, now is the time to cut taxes.
Below are several bills the House passed that we think would be helpful to Oklahomans. These are just a few of the options we have available to choose from.
HB 1358 provides a one-time income tax rebate of $125 for individuals and $250 for households. Rebates can help offset all types of inflation, from groceries to gas to everything in between. Anytime government has a surplus, we should try to give some of it back to taxpayers.
HB 3350 permanently lowers the income tax rate by 0.25%, taking top rate from 4.75% to 4.5%. Cutting income tax presents long-term economic benefits by keeping our income tax rate competitive with other states, moving us from 9th to 7th nationally for lowest state income tax rates.
HB 3349 suspends the 4.5% state grocery sales tax for two years but maintains the local grocery tax. Making groceries more affordable during inflation has consensus support. A two-year temporary approach allows policymakers to have a larger tax reform discussion to determine if a permanent repeal is affordable.
HB 3353 boosts the state grocery sales tax credit for low-income Oklahomans for two years. This targets those who need it most, at half the cost of a total suspension.
HB 4358 phases out the corporate income tax over eight years, continuing progress started last year when we reduced the rate from 6% to 4%. A steady phasedown of this tax protects the budget and sends a positive message that Oklahoma is open for business.
HB 3693 grants Oklahoma veterans a full tax exemption on retirement benefits they receive for their service. Currently, veterans of the U.S. Armed Forces receive tax exemptions for up to 75% or $10,000 of the retirement benefits they receive from any component of the armed forces. This bill encourages individuals leaving military service at bases in Oklahoma to stay in the state during their retirement.
HB 2986 allows excise tax to be based on the net cost of a vehicle rather than the gross cost. This saves taxpayers money when buying and trading-in a car. It also brings Oklahoma in line with how regional states calculate excise tax, based on the net cost of a vehicle rather than the gross cost.
HB 3635 gradually reduces the state income tax rate to zero. This bill would first put everyone on a single tax rate of 4.75% and increase standard deduction amounts. Tax reductions would only trigger in “up” revenue years, so no reduction in a down year and no loss of revenue. Taxpayers in the lowest brackets would stop paying income taxes sooner than anyone else.
HJR 1047 would have Oklahomans vote whether to freeze the assessed value of a home for ad valorem taxes for Oklahomans 65 and over. If approved by voters, Oklahomans 65 and older on fixed incomes can budget better from year to year.
We’re working hard to return your tax dollars to you during this financially stressful time. I’ll keep you updated on these bills’ progress through the remainder of the legislative process.
Rep. Toni Hasenbeck, a Republican, represents House District 65 in the Oklahoma House of Representatives. Her district includes Cotton County and portions of Comanche, Stephens, Grady and Caddo Counties.