The following is a good example of just how dumb our legislators really are. They raised the taxes to an outrageous level and now they wonder why the people are voting not to give them the money they dreamed of. They should have known better than to raise the tobacco taxes like that. They should have known that high prices and high taxes are a sure way to kill the goose that lays their eggs. CONTACT: Damon Gardenhire, press secretary Speaker of the House Todd Hiett Oklahoma House of Representatives Capitol: (405) 962.7679 gardenhire@okhouse.gov Speaker Calls on Governor Henry to Focus on Tobacco Tax Failure: New July Tax Collection Figures Show Significant Shortfall OKLAHOMA CITY (August 2, 2005) – Concerned by more dismal tobacco tax collection numbers for July, Speaker Todd Hiett today called on Governor Henry to add the tobacco tax failure to his call for a special session. “If legislative leaders reach an agreement on prison funding and convene a special session, we should address the tobacco tax debacle while at the state capitol,” said Hiett (R-Kellyville). New July tobacco tax figures released by the Oklahoma Tax Commission show the state collected only about $14 million – far short of projections for the new tax and below June figures. The Speaker said he will formally ask that Governor Henry amend the special session call when the two meet next week. “The mess created by the new tobacco tax and tribal compacts signed by Governor Henry is an urgent matter,” continued Hiett. “As tobacco tax collections continue to fail, vital health care programs are left without necessary funds.” Hiett said at the same time there’s been a tremendous shift from non-tribal to tribal retailers – causing financial ruin for small business owners across Oklahoma. July figures continue to show a pattern of sales shifting to tribal retailers. Oklahoma voters approved a dramatic 80-cents per-pack increase in cigarette taxes last fall, raising the tax from 23 cents to $1.03 per pack. The tax increase was supposed to generate an additional $200 million annually. Hiett said he remained open to the idea of a special session to address funding concerns for the Department of Corrections – though he emphasized that detailed discussions would need to take place before any legislative action could occur. Hiett stepped forward last week with solutions to address immediate needs for both the Centennial Commission and Corrections. Hiett unveiled a plan that allows the Department of Corrections to offer $1,000 signing bonuses for guards to help with recruitment efforts. DOC currently has about 200 vacant and funded guard positions. And he suggested that about $3 million in dormant funds at the Commerce Department could be used to fund immediate centennial needs – an idea embraced by centennial officials. House leaders anticipate announcing details of a comprehensive plan for the Department of Corrections within the next few weeks. Several lawmakers are included in the team developing the plan: Rep Chris Benge (R-Tulsa) chair of the House Appropriations and Budget Committee Rep. Gus Blackwell (R-Goodwell) chair of the House Committee on Corrections and Criminal Justice Rep. John Trebilcock (R-Broken Arrow), chair of the House A&B Subcommittee on Public Safety and the Judiciary. “The prison plan that we’ll bring forward soon will be a first step in starting important discussions between Governor Henry, House and Senate leaders,” Hiett said. -30-
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