scheme have long lied about the consequences of not having Oklahoma drivers licenses REAL ID compliant, claiming that you couldn’t get on an airplane which is not true. It is also a fee increase, adding $5.00 to the license fee, like the $5.00 they added to the tags last year, with the money siphoned off into Public Safety and two dollars to the tag agents. Worse, this bill guts the state prohibition on REAL ID passed about eight to ten years ago. There is a clause stating that the state won’t share bio-metric data of its citizen but there is an out for data sharing required by the feds.
HB 2131 is a new tax credit scheme that gives away 10% of sales tax collected for companies with under one million dollars of new investment in a tourist destination, 25% for those companies with over a million dollars new investment, with the annual limit set at $15 million dollars per year drained out of the state treasury. And this is for investment that is going to be made anyway.
HB 2348 freezes the standard deduction used on your Oklahoma tax return filing. In 2017 even if the Federal standard deduction goes up your Oklahoma deduction will remain frozen. This is an automatic tax increase on that works or has income from other sources.
HB 2351 is tax credit scheme used in Tax Incentive Districts and it appears to extend ad valorem tax exemptions an additional five years beyond the original exemptions for the project. Some say this bill was written and passed for a single Oklahoma City developer. Electricity generating projects are exempted from the additional five years property tax exemption.
HB 2356 is a bill that moves forward the due date for franchise tax payments, moving it forward two months. That effectively increases cash flow for the state by taking the tax money before it was originally due.
HB 2367 removes a 1% rebate on sales taxes paid that has always been used to pay the sales tax permit holders for the cost of keeping track of the taxes paid and for filing the report. Seems a pretty good deal, forcing businesses to be a tax collector for the state in return for a paltry one percent. For the vast majority of permit holders the one percent doesn’t even come close to covering the time to file the reports much less track the actual taxes. For Wal Mart or Amazon, that is a different story. Rather than change the $2500.00 monthly cap the permit holder refunded the politicians just took it all. So while this costs Wal Mart and Amazon $2500.00 it will cost the other businesses around $14 million dollars per year. The discount was also given only when the payment was paid on time or ahead of time, leading to more prompt payments form the sales tax permit holders. For a small business that sold $10,000.00 per month in taxable sales we were talking about $8.38 in discount. That wouldn’t pay the time it took to fill out the form, write the check, and mail it in.