'Laughable': OK Senate shuts down the idea of a personal income tax cut happening this year
While the Governor and lawmakers are making progress on the FY25 budget, the Senate is still being hounded to consider a cut to the personal state income tax but it stands firm in that it will not happen this year.
OKLAHOMA CITY (KFOR)- While the Governor and lawmakers are making progress on the FY25 budget, the Senate is still being hounded to consider a cut to the personal state income tax but it stands firm in that it will not happen this year.
Governor Kevin Stitt hosted the third day of the 2024 Budget Summit Monday morning.
The first hour of the meeting was consumed with another request for a personal income tax cut.
Will you vote on and take up with your chamber the income tax cut for the poorest Oklahomans?
Governor Kevin Stitt
One bill the Speaker of the House mentioned several times Monday morning is House Bill 2950 which the House passed in March. The Senate has yet to vote on it though.
It initially cut all tax brackets by 0.25%.
HB2950 would now establish a flat tax rate and revenue triggers that would allow that rate to be reduced in the future. It proposes that when the state has an exceeded revenue of $400 million then Oklahomans would receive a .0025% income tax cut.
It would apply to those who have a taxable income in excess of:
- Thirteen Thousand Five Hundred Fifty Dollars ($13,550.00) for taxpayers having a single or married filing separate filing status, or
- Twenty-seven Thousand One Hundred Dollars ($27,100.00) for taxpayers having a married joint return filing status, head of household or qualifying widow filing status.
When the tax rate has been reduced to 3%, the rate would be reduced by three-tenths of a point each year until the rate is zero and the personal income tax is completely phased out.
Senate President Pro Tempore Greg Treat (R-OKC) has said a personal income tax cut is not feasible this year because the state simply cannot afford it.
Both the Governor and Speaker of the House Charles McCall (R-Atoka) asked Pro Tem Treat if he would support any version of an income tax reduction before the regular legislative session ends on May 31.
"No. We will move on down the road and look at it," stated Pro Tem Treat.
The Pro Tem said he needs to see cuts to the proposed budget in order to make a personal income tax reduction work. Gov. Stitt suggested flat budgets.
"To say we don't have room to give an income tax break to the poorest Oklahomans, I don't think we're being we're being honest," said Gov. Stitt.
I think it's somewhat laughable... that's obviously a set up just to make me look bad. You don't run the Senate chamber. I decide what goes up for a vote on the Senate floor in consultation with my office. I'm not going to sit here and give control of the Senate to the governor of the state.
Senate President Pro Tempore Greg Treat (R-OKC)
The Senate and House did agree on two state agency budgets Monday morning.
The budget needs to be finalized by the end of May when session adjourns. Fiscal Year 25 begins July 1.