State lawmakers advanced a Republican revenue package in special session Tuesday, but its passage in the full House and Senate is no sure thing.
House Bill 1035 includes $1.50 cigarette tax and 6 cent gas and diesel tax increases, raises taxes on other tobacco products, and expands mixed beverage taxes to low-point beer. It's estimated to be worth $184 million this year and more than $442 million next year.
The plan is expected to fund health and social services cut after the cigarette tax was ruled unconstitutional, a $3,000 teacher pay raise, a $1,000 raise for most state employees, and the return of the Earned Income Tax Credit.
The House Joint Committee on Appropriations and Budget passed HB1035 18–9. It will require three-fourths majorities in both chambers of the legislature.
All six Democrats on the House committee voted no. Rep. Emily Virgin said the bill disproportionately hits low- and middle-income Oklahomans.
"You’re asking for them to pay for their own raises. You’re asking for them to pay for their own Earned Income Tax Credit. You’re asking them to pay for their own mental health care services," Virgin said.
Democrats also noted HB1035 does not include a gross production tax increase. Majority Floor Leader Jon Echols offered a deal to the minority caucus.
"You help us get this bill across the line, I’ll guarantee you a straight up-and-down vote on 5 percent GPT on the floor," Echols said. "I’ve been saying for two months … we don’t have the votes in this caucus, you’ve been saying we do. Let’s fund state government and protect our citizens."
Three Republicans on the House committee voted no, including Rep. John Bennett of Sallisaw.
"Instead of raising taxes on our citizens, we should consider enacting sensible tax and expenditure limits, reform tax credits and perform audits. Budget deficits are not a revenue problem but a spending problem," Bennett said.
The Senate Joint Committee on Appropriations and Budget took up HB1035 shortly after the House committee adjourned late Tuesday afternoon. They passed the measure 10–2, meaning floor votes could happen as early as Wednesday.
