Data from the Oklahoma Tax Commission show that the state’s individual income tax collections grew slightly for Fiscal Year 2008, which concluded on June 30, the co-chairman of the State Senate Finance Committee noted today.
“There were a lot of dire predictions by opponents of tax relief that income tax cuts would drastically shrink income tax revenues. But the facts tell a different story – revenues from individual income taxes continue to grow,” said State Sen. Mike Mazzei, R-Tulsa.
Since 2005, the Legislature has reduced Oklahoma’s top rate for individual income taxes from 6.65% to 5.5%. The Legislature has also increased the standard deduction for individual income taxpayers.
The Oklahoma Tax Commission’s “income tax summary” for FY 2008 shows that individual income taxes apportioned to various state funds totaled $2,780,582,937.48. That’s nearly $3.3 million, or 0.1%, more than was apportioned in FY 2007.
“The Legislature’s income tax relief program, along with Oklahoma’s strong energy and agriculture sectors, have helped keep our state’s economy afloat while the national economy has slowed down,” stated Mazzei. “The growth in income tax revenues has been modest, but they’re still growing, and that’s a far cry from what the doom-and-gloomers predicted would happen.”
Individual income taxes are automatically apportioned to a number of different funds, including the Education Reform (1017) Revolving Fund, the Teachers Retirement Fund, the ROADS Fund, and the General Revenue Fund. The General Revenue Fund is money that is available for appropriation by the Legislature.
For FY 2008, $541,477,126.74 of the individual income tax was apportioned to seven funds other than General Revenue, while $2,239,105,810.74 was deposited in the General Revenue Fund.
State Income Tax Collections Overview