Credit Oklahoma House of Representatives
The Oklahoma House passed bills on Thursday that would reduce what Oklahoma residents and corporations pay in income taxes starting in 2022.
House Bill 2041 uses a combination of credits to offer the equivalent of a 0.25% rate cut for all individuals. That would mean nearly $178 million going back to taxpayers, an amount House Appropriations Chair Kevin Wallace (R-Wellston) is banking on to give the state economy a boost through additional spending.
A sizeable chunk is going to the state’s highest earners. An analysis found households making $1 million or more would get $1,028 back, a larger amount of money than lower-earning households but a smaller percentage reduction of their tax burden than most. Those earning between $10,000 and $12,000 would get $45, a 389% reduction of their tax burden.
Oklahoma’s total fiscal year 2022 budget has grown by more than $1 billion.
The State Board of Equalization on Tuesday approved a total appropriations authority of $9.6 billion. That includes $1.7 billion in non-recurring revenue, which Gov. Kevin Stitt wants to use to replenish state savings accounts and invest in infrastructure projects.
Economic conditions are looking better than they did at the board’s December meeting, including when it comes to employment. Sector recoveries are mixed. Like, oil and gas is a little bit down. It’s recovering very sluggishly. Same with manufacturing, restaurants and bars, but overall, we’re seeing employment improving through FY21 and FY22, said Office of Management and Enterprise Services budget analyst John Gilbert.