Oklahoma’s Oil and Gas Association is spreading the word trying to tell legislators—-leave your hands off the Gross Production Tax. And he’s not taking aim at just Democrats who recently called for hiking the tax…..but Republicans including Gov. Mary Fallin.
Writing to newspapers around the state, Chad Warmington, President of the Association said legislators who want to increase the tax on oil and gas should learn a lesson: “The best way for the Legislature to increase revenue is to leave the GPT rate alone.”
He blamed “poor choices at the state Capitol” for the budget problems and said elected officials have tried to make up for recent tax revenue shortfalls by increasing taxes on the recovering oil and gas industry.
“Over the last two years, the governor has signed nearly $800 million in tax increases, one-third of which have fallen directly on the oil and natural gas industry,” said Warmington. “Constantly changing the rules of the game and increasing costs threatens a fragile recovery.”
Warmington said Democrats in the State House who are holding out supporting a cigarette tax until the GPT is raised should understand “putting a small dent in the budget deficit by depressing drilling will ultimately worsen the problem.”
He also accused House Minority leader Scott Inman of not telling the whole story as he pushes for a 7 percent gross production tax, saying “Inman also fails to tell Oklahomans that nearly 9 out of 10 wells today are already taxed at 7 percent.”