Magna Carta News
Monday, March 21, 2005
Ta;x relief legislation
FOR IMMEDIATE RELEASE
Contact: State Rep. Guy Liebmann
Capitol: (405) 557-7357
Oklahoma City: (405) 748-4848
Proposed Legislation would Lessen
State Income, Property Taxes
OKLAHOMA CITY (Jan. 18, 2005) – A first-term Oklahoma City lawmaker has filed a pair of bills, one significantly lowering state income tax rates and another slowing considerably the growth of state property tax rates, hopefully making April a little less stressful for many Oklahomans.
House Bill 1228, authored by Rep. Guy Liebmann, R-Oklahoma City, would reduce the top marginal income tax rate by one-half of 1 percent every year for seven years, gradually slashing it from the current rate of 6.65 percent to 3.15 percent.
House Bill 1002, also by Liebmann, would limit the annual increase in state property taxes to 3 percent or the rate of inflation, lowering the limit from the current rate of 6 percent, with senior citizens exempt from any increase. The bill also specifies that when a house is sold in the state, it must be reappraised at its current market value.
“These bills will inspire economic development and make us more competitive with our surrounding states,” Liebmann said. “They should generate economic growth in Oklahoma, which we need if we want to attract more people to the state and maintain our current congressional strength. We don’t want to go from five representatives in Washington to four in 2012. We want to encourage people to live here, move here, bring their businesses and develop our economy.”
If HB 1228 were to become law, Oklahoma would have the second-lowest top marginal tax rate among the surrounding states, trailing only Texas, which is one of seven states in the nation that does not collect state income tax. Top marginal tax rates for the other surrounding states include: Arkansas, 7.0 percent; Colorado, 4.63 percent; Kansas, 6.45 percent; Missouri, 6.0 percent; and New Mexico, 8.2 percent. Montana has the highest top marginal tax rate of any state at 11 percent.
Those Oklahomans who are affected by the top marginal tax rate include married couples, filing jointly, who earn $21,000 or more per year in taxable income, and single taxpayers annually earning $10,000 or more in taxable income.
With HB 1002, Liebmann said he hopes to significantly prolong the amount of time it takes for Oklahoma property taxes to double. Currently state property taxes double approximately every 14 years, but under Liebmann’s bill, it would take approximately 24 years for rates to double.
“You know, the biggest problem in our state is people leaving,” Liebmann said. “When people retire, they often move to Texas, in part to avoid paying income taxes. Yet retired citizens can be a great addition to a community’s tax base. They don’t use up funds allocated for schools, and they often go out and spend money in the community, thereby increasing sales tax revenue.”
Liebmann said he believes a decrease in state tax rates will lead to an increase in the number of citizens of all ages, not just retirees, who decide to live in Oklahoma. “By lowering both income taxes and property taxes, I believe we will be able to keep citizens here and attract more citizens to come here.”
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FOR IMMEDIATE RELEASE
Contact: State Rep. Guy Liebmann
Capitol: (405) 557-7357
Oklahoma City: (405) 748-4848
Proposed Legislation would Lessen
State Income, Property Taxes
OKLAHOMA CITY (Jan. 18, 2005) – A first-term Oklahoma City lawmaker has filed a pair of bills, one significantly lowering state income tax rates and another slowing considerably the growth of state property tax rates, hopefully making April a little less stressful for many Oklahomans.
House Bill 1228, authored by Rep. Guy Liebmann, R-Oklahoma City, would reduce the top marginal income tax rate by one-half of 1 percent every year for seven years, gradually slashing it from the current rate of 6.65 percent to 3.15 percent.
House Bill 1002, also by Liebmann, would limit the annual increase in state property taxes to 3 percent or the rate of inflation, lowering the limit from the current rate of 6 percent, with senior citizens exempt from any increase. The bill also specifies that when a house is sold in the state, it must be reappraised at its current market value.
“These bills will inspire economic development and make us more competitive with our surrounding states,” Liebmann said. “They should generate economic growth in Oklahoma, which we need if we want to attract more people to the state and maintain our current congressional strength. We don’t want to go from five representatives in Washington to four in 2012. We want to encourage people to live here, move here, bring their businesses and develop our economy.”
If HB 1228 were to become law, Oklahoma would have the second-lowest top marginal tax rate among the surrounding states, trailing only Texas, which is one of seven states in the nation that does not collect state income tax. Top marginal tax rates for the other surrounding states include: Arkansas, 7.0 percent; Colorado, 4.63 percent; Kansas, 6.45 percent; Missouri, 6.0 percent; and New Mexico, 8.2 percent. Montana has the highest top marginal tax rate of any state at 11 percent.
Those Oklahomans who are affected by the top marginal tax rate include married couples, filing jointly, who earn $21,000 or more per year in taxable income, and single taxpayers annually earning $10,000 or more in taxable income.
With HB 1002, Liebmann said he hopes to significantly prolong the amount of time it takes for Oklahoma property taxes to double. Currently state property taxes double approximately every 14 years, but under Liebmann’s bill, it would take approximately 24 years for rates to double.
“You know, the biggest problem in our state is people leaving,” Liebmann said. “When people retire, they often move to Texas, in part to avoid paying income taxes. Yet retired citizens can be a great addition to a community’s tax base. They don’t use up funds allocated for schools, and they often go out and spend money in the community, thereby increasing sales tax revenue.”
Liebmann said he believes a decrease in state tax rates will lead to an increase in the number of citizens of all ages, not just retirees, who decide to live in Oklahoma. “By lowering both income taxes and property taxes, I believe we will be able to keep citizens here and attract more citizens to come here.”
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