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Plan to Cut Oklahoma Franchise Tax Gutted from Bill

KWGS File photo

OKLAHOMA CITY (AP) — A bill that would have eliminated the franchise tax on Oklahoma businesses has been gutted and replaced with new language dealing with reporting dates for corporate tax returns.

The new version of the bill was approved on Wednesday by the House Appropriations and Budget Committee.

House author Representative Earl Sears told members he had no plans to resurrect the plan to abolish the state's franchise tax, a $1.25 levy on every $1,000 a corporation invests in Oklahoma.

The tax, which has existed since 1963, generates about $40 million annually, but was recently suspended and is scheduled to go back into effect in July.

The State Chamber has pushed for the elimination of the franchise tax, which it describes as a "nuisance" for Oklahoma businesses.