The head of the Petroleum Alliance of Oklahoma says if the state is thinking about an increase in its gross production tax on oil and gas, then it’s time for a statewide tax on wind and solar energy production.
Brook A. Simmons, President of the Alliance responded to Senate President Pro tempore Greg Treat’s comments during a Wednesday press conference. Treat listed an increase in the gross production tax as one potential to offset Gov. Kevin Stitt’s call to end the state income tax in Oklahoma.
Simmons pointed out how Oklahoma boasts of being an “all of the above” energy state.
“We are not, however, an “all of the above” state when it comes to energy taxation. Only the oil and natural gas industry pays a statewide gross production tax on the energy it produces,” he said.
He noted that oil and gas generated $1.8 billion in revenue for the state in FY 2023 from the gross production tax while it totaled $1.5 billion in the previous fiscal year. Simmon said in other words, the oil and gas industry accounts for nearly 25% of Oklakhoma’s revenue annually.
“Meanwhile, we have tax-consuming industries that are paying less than nothing. Since 2013, Oklahoma taxpayers statewide have paid more than $1.25 billion in subsidies for wind power generation with hundreds of millions of dollars more set to be paid out through 2026,” stated Simmons.
“Simultaneously, Oklahoma ratepayers statewide are left dealing with wind and solar energy’s lack of reliability when needed most and taking on the cost of wind overpenetration as we subsidize power in other states.”
Simmon said any discussions on raising energy production taxes “should begin and end with instituting a statewide production tax on wind and solar.”
Source: Petroleum Alliance