A revenue bill passed Thursday by the Oklahoma House could make some corporations pay a tax twice within 10 months.
House Bill 2356 makes the franchise tax due May 1 instead of July 1 starting next year for any entity that paid the maximum amount the year before.
It will boost revenue $12 million next year, but Rep. Shane Stone said he’s against the measure.
"While every year, businesses will be feeling an additional crunch because of this piece of legislation, we only receive a benefit for one year," Stone said. "We're selling out those businesses for every year going forward so we can have this one-time benefit."
Many Democrats joined Stone in opposing the bill. During debate, Rep. Pat Ownbey turned the tables on them, recalling when they took to asking whether bills on the floor had a fiscal impact to make a statement about the state budget.
"Ninety-two times that was the question. Now we have something that actually would help revenue, at least for this year, and it was called a burden," Ownbey said. "Though we stand up here and talk about gross production taxes and others on oil, and I guess that isn't a burden."
Ownbey did admit the measure is an "accounting maneuver."
"True, the legislation doesn't solve problems in the long term. It will fill a $12 million hole, roughly, for this fiscal year, giving our economy another year to bounce back," Ownbey said.
The franchise tax is $1.25 per $1,000 of capital in Oklahoma. The maximum assessment is $20,000.
HB2356 passed 52–40 and now goes to the Senate.