OKLAHOMA CITY (19 May 2016) -- The Oklahoma House narrowly approved the double-deduction income-tax bill on reconsideration.
Senate Bill 1606 slipped through on a 51-42 vote Thursday night. http://webserver1.lsb.state.ok.us/cf/2015-16%20SUPPORT%20DOCUMENTS/votes/House/SB1606_VOTES.HTM It failed on a 45-50 vote earlier in the day Thursday.
House Democratic Leader Scott Inman, D-Del City, said SB 1606 would affect the 22% of Oklahoma income-tax filers who itemize deductions on their federal tax returns. Rep. Mike Brown, D-Tahlequah, said those taxpayers include homeowners, business owners, and farmers.
According to the Oklahoma Tax Commission, eliminating the double deduction would produce $97.3 million in tax revenue for the state treasury.
Opponents of the measure noted that Article V, Section 33, of the Oklahoma Constitution decrees, “All bills for raising revenue shall originate in the House of Representatives.”
The House sponsor of the measure, Rep. Mark McCullough, R-Sapulpa, insisted that SB 1606 is not a “revenue raising measure” in the technical, conventional, accepted sense because its purpose is to eliminate a tax deduction, not to raise tax revenue.
Most of the filers who itemize their deductions earn “over $100,000 a year,” McCullough said, and he indicated that on average each of those taxpayers will pay an extra $175 in taxes.