By Warren Vieth
Oklahoma City, OK – By WARREN VIETH
Oklahoma Watch
A legislative task force assigned to evaluate state tax incentives programs is closing in on about a dozen tax credits that have been reducing state revenue collections by more than $150 million annually.
At the same time, a second task force established to examine the overall structure of state taxes appears likely to up the ante by suggesting broader changes that could help finance a partial reduction of income tax rates.
Even more pressure may be applied by Gov. Mary Fallin, who is expected to call for a tax code overhaul and income tax reduction in her next state of the state address.
If enacted, the proposals would represent a significant shift in state tax policy. But opposition to specific proposals is likely to be fierce, and the outcome might disappoint those who hoped that closing loopholes would generate enough money to reverse recent cuts in state spending or get rid of the the income tax.
"This Legislature is going to have some tough votes," said Rep. David Dank, chairman of the tax incentive task force. "The easy part's done."
House Speaker Kris Steele said the recommendations of Dank's task force would get priority consideration.
"This is not window-dressing or smoke-and-mirrors sort of committee," said Steele, R-Shawnee. "It's very legitimate and very serious. The members are digging deep It will be a top priority moving into next session."
Dank's task force will hold its ninth meeting on Wednesday (Nov30). It is expected to adopt a set of criteria for evaluating tax credits that were created to stimulate economic development and job creation. Top lawmakers contend some of them have produced marginal results, outlived their usefulness or been subject to abuse.
Of the nearly 50 tax credits to be evaluated, the task force has singled out about a dozen for special scrutiny. Most are transferable, which means recipients can sell the them to other people who had nothing to do with the plant openings, business projects or investments the credits were intended to finance.
Those credits have been reducing state revenue collections by an estimated $TK million a year, according to calculations by Oklahoma Watch.