Local & Regional
Sun May 5, 2013
Lawsuit On Capital Gains Prompts Worry over Budget
OKLAHOMA CITY (AP) — A lawsuit by an out-of-state company that challenges a tax break on capital gains for Oklahoma-based businesses is causing some consternation at the state Capitol after an analysis on the potential costs of a tax reimbursement show Oklahoma could be on the hook for as much as $480 million.
The Oklahoma Court of Civil Appeals ruled the law that gives an exemption advantage to Oklahoma-based companies is an unconstitutional violation of the Commerce Clause of the U.S. Constitution.
Now the state is looking for the court to clarify whether the ruling applies to previous tax returns by out-of-state individuals and companies.
State officials say that clarification is critical because it could determine if the state must reimburse those who filed amended returns to the tune of up to $480 million.