An Oklahoma state legislative leader is under fire by the Oklahoma Independent Petroleum Association for her recent participation in a State Capitol rally calling for a 250 percent increase in the gross production tax.
Rep. Leslie Osborn – the Oklahoma House of Representatives Appropriation and Budget Chair – attended Wednesday morning’s rally sponsored by the Oklahoma Energy Producers Alliance.
Oklahoma Independent Petroleum Association Vice President of Governmental Affairs Tim Wigley denounced Rep. Osborn’s rally attendance and questionable legislative flip-flop on the tax.
In a press release issued on Wednesday, Wigley points out that Osborn supported a reduced initial gross production rate in 2014 by authoring legislation in support of new wells.
Citing Osborn’s “change of heart” on the topic, Wigley believes the Mustang legislator’s about-face jeopardizes the state’s economy.
“Oklahoma’s oil and natural gas industry pays approximately 25 percent of all taxes used to support government services in this state, and it’s the income tax oilfield workers pay, corporate taxes paid by Oklahoma companies and the sales tax on goods and services purchased in the oilfield that account for 75 percent of the industry’s tax contributions,” said Wigley, in the press release. “When gross production taxes go up and drilling decreases, other tax receipts paid by the oil and natural gas industry goes down. That makes any gains in gross production tax payments, at best, a wash, and at worst, an economic loss.