(The Center Square) – Oklahoma Gov. Kevin Stitt said Thursday that now is the time for lawmakers to pass tax cuts.
The House of Representatives passed a bill creating a flat 4.5% tax rate beginning with the 2024 tax year. The rate reduces by .25 percentage points each year the state achieves specific revenue targets.
House Bill 2285, which also reduces the state’s standard income tax reduction, received a “do pass” recommendation from the Senate Appropriations Committee last month.
The Senate also received House Bill 1995 from the House in March, which would eliminate the 4.5% tax on food and food ingredients.
“If we don’t get a tax cut done this year, I don’t know when we are going to do it,” Stitt said in his weekly news conference. “Like I’ve said over and over again, we have a $6.2 billion savings account. We have billion two in excess revenue over excess expenses. And it’s going to be a shame if the House and Senate, and the House has already passed it over to the Senate, by the way, several tax cuts. If the Senate doesn’t take up a tax cut, shame on us.”
The latest tax collections from Treasurer Todd Russ’ office show a slowing economy. April’s 12-month gross receipts total declined for the first time since June 2022. The state collected $17.49 billion, a 7.1% drop. The numbers are still higher than last year when the state collected an additional $1.07 billion, according to the treasurer’s office.
The House and Senate are also at odds over school choice and teacher raises. Stitt said he met with House and Senate leadership on Monday.
“I’m still very optimistic,” Stitt said when asked if the two were close to an agreement. “We are so close.”
The bills should result in a 15% increase in public education, Stitt said.
The Legislature is scheduled to wrap up the session on May 24.
This article First appeared in the center square