The Oklahoma Supreme Court is allowing a petition drive to have a vote of the people on raising the gross production tax to move forward and the Oklahoma Oil and Gas Association and the Oklahoma Independent Petroleum Association are not happy about it.
“It’s easy to look at the oil and natural gas industry for a quick fix when the state is facing economic hardships, but raising taxes on a single industry is not a cure-all for every financial woe,” responded Chad Warmington, President of OKOGA.
He called it “dangerous” to further tie teacher salaries and education funding “more strongly to a revenue source that fluctuates radically.”
The ruling was in favor of the nonprofit called Restore Oklahoma Now Inc. which wants to put State Question 795 before voters. The question wants to change state law to create a flat 7 percent gross production tax on oil and gas production in the state. Restore Oklahoma contends it would raise another $333 million a year for the state revenue.
The question also proposes using $240 million to give a $4,000 annual pay raise to public school teachers.
A.J. Ferate with the OIPA said his group will do what it can to educate Oklahomans about the harm such a question cause cause.
“Oklahomans generally don’t like tax increases and I think this will be a story that’s pretty receptive to them.”
“Should this measure make it to the ballot, we will educate the public on the consequences of passing such an initiative, including the job losses it will cause in the energy sector,” OKOGA’s Chad Warmington added.
“We believe teachers deserve salary increases and schools deserve adequate funding, but raising the gross production tax yet again is not a long-term solution,” he said. “We will continue to work with our state leaders and educators to find a sustainable answer to this problem.”
OKOGA and the Oklahoma Independent Petroleum Association challenged the initiative petition calling it unconstitutional because it involved more than one subject.
Restore Oklahoma, led by former OIPA President Mickey Thompson has 90 days to collect 124,000 signatures to get the question on the November ballot. He said after the ruling he’s confident it can be done.