The full Senate has given its approval to legislation that would reduce Oklahoma’s top income tax rate by .25 and the corporate income tax rate by 1 full percentage point. House Bill 2508, by Sen. Mike Mazzei, was approved Tuesday. A Senate bill aimed at reducing income taxes is awaiting action by the full House.
“I think a lower tax rate tells prospective companies that Oklahoma is ready to compete and open for business,” said Mazzei, R-Tulsa. “It’s one more tool we’ll have for attracting new jobs and spurring greater economic growth, and that in turn will generate more revenue for core services like education, transportation and public safety.”
Mazzei, long-time Senate Finance Committee Chairman, said there are differences between the House and Senate tax cut proposals. HB 2508 would reduce the top income tax rate from 5.25 to 5 percent, and cut the state’s corporate income tax rate from 6 percent to 5 percent.
SB 1246 would not reduce corporate income taxes, but would allow for a further reduction in the individual income tax rate of .15 percent if there’s enough revenue growth, taking the top rate from 5.25 to 4.85 percent. Mazzei said both bills have triggers requiring specific revenue levels before the cuts could go into effect, with 2016 the earliest year the cuts could be implemented.
The principal House author of HB 2508 is Rep. Earl Sears, Vice Chair of the House Appropriations and Budget Committee.
“I’m pleased the Senate approved this responsible tax cut for the hard working people of Oklahoma,” said Sears, R-Bartlesville.
The measure now returns to the House of Representatives.