An Oklahoma Senate committee has approved legislation to repeal the trigger for a cut in the state's individual income tax rate.
The Senate Appropriations Committee on Wednesday voted 32-4 for Senate Bill 170 and sent it to the full Senate for a vote.
Legislation passed in 2014 provided a mechanism to reduce Oklahoma's top tax rate from 5 percent to 4.85 percent when tax collections increase by about $100 million annually, enough to cover the cost of the tax cut. Since then, state revenues have plummeted and the state faces a budget hole of $878 million next year.
Sen. Roger Thompson (R-Okemah) is the author of the bill and says his constituents are overwhelmingly in favor of his legislation.
“What I am hearing from Oklahomans is they are very concerned about the current budget situation and how it is impacting core services like education, health and mental health, public safety and transportation. They worry the trigger could undo any improvement by wiping out growth revenue. Senate Bill 170 will stop that from happening.”
State finance officials, including Secretary of Finance Preston Doerflinger and Treasurer Ken Miller, have suggested that lawmakers scrap or revise the trigger point until state revenues have stabilized.