A bill passed by the Oklahoma Senate on Thursday would eliminate a tax rebate for economically at-risk oil wells, resulting in a savings of over $130 million for the state.
The bill — SB 1577 — authored by Senate President Pro Tempore Brian Bingman and House of Representatives Speaker Jeff Hickman, was approved by a vote of 37-6 following a Senate Floor debate.
“If you want to defeat the Pro Tem’s bill, that’s your decision, but the consequences of that decision is that we’ll have less revenue available and we’ll have to make deeper cuts to state agencies,” said Sen. Clark Jolley of Edmond.
“Failure of this bill would result in cuts to Medicaid, education and other core services,” said Jolley.
Oklahoma has struggled with the impact of a slumping energy industry, consecutive shortages in state tax collection receipts resulting in agency funding reductions and a burgeoning proliferation of tax incentives. Last year, Governor Mary Fallin signed House Bill 2182 creating the Incentive Evaluation Commission to examine all of the state’s abundant tax rebates over a four-year period. The IEC has met twice to review millions of dollars in tax incentives. The Commission will provide its first report to the Governor and legislative leaders by December 15.
Senate Bill 1577 now goes to the Oklahoma House of Representatives for full consideration for early next week.