Among the more than 2,000 bills filed for the 2017 session of the Oklahoma legislature is HB 1401, a measure by Rep. John Michael Montgomery to end the state’s reliance on income tax and energy sector taxes.
“As I talk with constituents and fellow Oklahomans, it is clear that they want a long-term vision and plan, both economically and financially for our state, and I am committed to doing what it takes to put that in place,” said Montgomery in announcing his measure.
The bill would establish a “Vision Fund” that would set aside excess cash that normally would be appropriated as well as a barely noticeable amount of tax receipts into an endowment style fund. Once the Vision Fund interest is large enough to replace income taxes, Oklahomans would receive money from the fund, while maintaining the smaller endowments for education and research and development.
“Oklahoma could be the second in the country, after only Alaska, to put a plan in place to eliminate major state taxes. We would be insuring a permanent investment in an essential state service while unleashing the creativity and innovative spirit of Oklahomans,” said Montgomery.
House Bill 104 would establish a “Legacy Fund” that would set aside a part of gross production taxes from oil and gas, in addition to saving funds for designated education endowments. Montgomery maintains this would set the state on court for ending its reliance on what he calls a “volatile revenue source.”
“Eight of the nine states that rely on gross production-style taxes already do this to some extent, so Oklahoma would be the last to do so.”