© 2024 Public Radio Tulsa
800 South Tucker Drive
Tulsa, OK 74104
(918) 631-2577

A listener-supported service of The University of Tulsa
classical 88.7 | public radio 89.5
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Equalization Board to Address Potential State Income Tax Cut

KWGS News File Photo

Besides telling the governor how much money she has for next year’s budget, the state Board of Equalization will also have news Wednesday on a possible income tax cut.

Relatively modest revenue growth of roughly $100 million would be enough to reduce the top income tax rate from 5 to 4.85 percent.

"That's a problem because we could have revenues grow by $100 million and still be upwards of $100 million below this past year's budget," said Oklahoma Policy Institute Executive Director David Blatt.

The top income tax rate applies to single people making more than $7,200 and married couples making more than $12,200.

Any tax cut would go into effect Jan. 1, 2018, giving lawmakers time to alter, delay or reverse it. Blatt said lawmakers seem to be coming to terms with the idea Oklahoma can’t just keep cutting the state budget.

"The challenge is reaching any kind of an agreement as to which taxes to raise or which additional revenues to generate, particularly when you have a super majority requirement for any tax increase and, you know, always strong political pressures in the state against tax increases," Blatt said.

State Treasurer Ken Miller thinks hitting the required revenue growth trigger is unlikely.

According to early estimates, the equalization board will tell Gov. Mary Fallin she has $600 million less for her fiscal year 2018 executive budget than she had for this year's.

Matt Trotter joined KWGS as a reporter in 2013. Before coming to Public Radio Tulsa, he was the investigative producer at KJRH. His freelance work has appeared in the Los Angeles Times and on MSNBC and CNN.