Oklahoma City, OK 73105
For Immediate Release: May 16, 2016
Senate approves additional finance reforms to fund core
The full Senate voted Monday to approve a group of
bills aimed at helping close the budget gap for the 2017 fiscal
year. The finance reform measures will generate more than $250 million
that can be appropriated in the 2017 budget as part of a comprehensive
effort to address the state’s $1.3 billion shortfall.
Senate Finance Chair Mike
Mazzei presented the measures on the floor.
“The reality is without these kinds of reforms, our schools,
health and mental health services, public safety and other core
services will be forced to significant cuts—this is on top
of those that they are already struggling with as a result of two
revenue failures in the current budget year,” said Mazzei,
R-Tulsa. “We are working to do everything we can to protect
the services Oklahomans across our state depend on.”
The measures passed by the Senate include:
• SB 1604, which makes the earned income tax credit nonrefundable.
This change would not increase taxes for anyone. Those who owe income
taxes could still claim this credit. The amount of the credit will
no longer exceed the amount of actual taxes owed. Those who owe
no income taxes would no longer be eligible to receive a direct
cash payment. This change would generate $28,910,000, with $24,573,500
for the General Revenue Fund (GRF).
• SB 1606, which eliminates the “double deduction.”
Higher income taxpayers who itemize on federal returns may deduct
certain state and local taxes paid. This change would require the
amount of state and local sales and income taxes deducted at the
federal level to be added back to Oklahoma income on state returns.
Nearly every state in the country does not allow this deduction
at the state level for simply paying your state taxes. This reform
will only affect tax filers who itemize their deductions. These
taxpayers are typically middle- to high-income earners. This would
generate $97,302,000, of which $83,348,893 would go to GRF.
• SB 1582, which places a $25 million annual cap on the total
amount of statewide credits manufacturers will be allowed for capital
investment or new jobs for tax years 2016 through 2018. This would
generate $14 million, $11 million of which would go to GRF. This
and other changes in business credits would generate $160 million
• SB 1605, which eliminates the child care facility credit.
This credit is for the facility itself and the owners. This would
mean a difference of $129,000, with $110,321 going to GRF.
• HB 3206, which would authorize OMES to certify any funds
remaining in the Cash Flow Reserve Fund in December as available
for transfer and appropriation. This measure would yield $125 million
For more information, contact:
Sen. Mazzei: (405) 521-5675