Governor comments on competing income tax cut proposals

The Governor just issued the following statement:

"Governor Fallin has not decided whether or not to call a special session. However, it is clear that the House and Senate have reached a stalemate regarding tax cuts. The governor is still doing everything she can to deliver a meaningful tax cut this year and will announce a decision regarding the possibility of a special session by the end of this week."

House won’t take up any bill that raises taxes

OKLAHOMA CITY – House Republicans on Wednesday advanced a new income tax reduction measure that ensures Oklahomans receive either an income tax reduction or no tax change at all.

HB 3038 was signed out of the House General Conference Committee on Appropriations on Wednesday. The Senate now must act to advance it from the Senate General Conference Committee on Appropriations in order for it to be heard by both chambers.

“The House has kept this issue alive and it’s now up to the Senate to deliver tax relief for working Oklahomans,” said House Speaker Kris Steele, R-Shawnee. “The next step is for the Senate to hear the bill in their committee. I hope they pass this plan and uphold the commitment we’ve all made to the people of Oklahoma to lower their taxes. The ball is in their court.”

If House Bill 3038 is implemented, a large majority of taxpayers would receive tax reductions, a small amount would see no change and no taxpayers would experience a tax increase, according to the Oklahoma Tax Commission. 

HB 3038 proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund (for details, see attached bill and attached summary document).

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 – the bill supported by Senate leaders – are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“The House won’t take up any bill that raises taxes. Raising taxes isn’t what conservatives stand for, it’s not what Republicans stand for and it’s not what the House stands for,” Steele said.

Rep. Leslie Obsorn, R-Mustang, said HB 3038 is a responsible way to continue the economic momentum Oklahoma has experienced in recent years.

“This is a simple, straightforward way to lower taxes without having to raise anyone’s taxes,” said Osborn, the principal House author of HB 3038. “It’s not overly complicated. It doesn’t pick winners and losers, like the previous plan. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

HB 3038 would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal. Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year.”

New income tax cut plan proposed by House Republicans

New proposal contains no tax increases

OKLAHOMA CITY – House Republicans plan to introduce a new income tax reduction measure Wednesday that ensures Oklahomans receive either an income tax reduction or no tax change at all.

“We came here to lower taxes for hardworking Oklahomans we’re going to do exactly that with this new plan,” said House Speaker Kris Steele, R-Shawnee. “We’re excited about this plan, we believe in this plan and we’re going to pass this plan along to the Senate. Anyone who is for lower taxes should be for this plan.”

The new plan proposes three growth triggers that would reduce the top personal income tax rate to 4.5 percent within three to ten years, dependent upon revenue growth. Each trigger would result in a .25 percent reduction. In order for the trigger to take effect, there must be a 5 percent annual growth in collections of motor vehicle taxes, use taxes, sales taxes, income taxes and corporate taxes apportioned to the general fund. The criteria for the triggers are the same criteria used for the trigger in HB 3061, the previous income tax reduction proposal.

The new income tax plan will be contained in an amended version of HB 3038 that will be introduced during the House General Conference Committee on Appropriations meeting at 1:30 p.m. Wednesday.

Speaker Kris Steele

“This plan is a lot like the tax reductions Oklahoma Republicans have enacted consistently for nearly 15 years in order to lower the rate from 7 percent in 1998 to 5.25 percent today. It allows us to continue down that path in a responsible, methodical manner that won’t cause any taxpayers to pay more,” Steele said.

The new plan keeps the current tax bracket structure and personal exemption intact. The tax bracket structure change and personal exemption modification proposed in HB 3061 are among the reasons why some taxpayers would see a tax liability increase under HB 3061.

“This House cannot fully embrace that plan because it would raise the tax liability of too many Oklahomans,” Steele said. “While the bill as a whole does represent a net tax decrease, we just can’t embrace the portion of it that leads to a tax increase. We had serious discussions about this matter and have come out more determined than ever to reduce taxes for all Oklahomans.”

House Republicans rallied in support of the new plan.

Rep. Leslie Osborn
R-Mustang

“This is a simple, straightforward way to lower taxes without any having to raise anyone’s taxes,” said Rep. Leslie Osborn, R-Mustang, the principal House author of HB 3038. “It’s not overly complicated. It just says when government revenues grow, tax reductions should occur. That’s what we fundamentally believe as Republicans.”

The new plan would not affect the proposed fiscal year 2013 state budget because it does not mandate a tax reduction in fiscal year 2013.

“It won’t cost us a cent next year,” said Rep. Earl Sears, R-Bartlesville, chairman of the House Appropriations and Budget Committee. “It’s a win-win deal.”

The earliest possible trigger would be for fiscal year 2014. Preliminary Tax Commission estimates show the cost of the first trigger as $120.5 million, $152.3 million for the second trigger and $172.9 million for the third trigger. The cost of each trigger would be spread across two fiscal years due to the difference between tax years and fiscal years.

“Tying these triggered tax cuts to actual growth makes them far easier to pay for because they won’t go into effect unless the state has far more revenue than it did the previous year,” Sears said.

Fallin, House, Senate Leaders Unveil Tax Cut, Tax Simplification Plan

OKLAHOMA CITY -- Governor Mary Fallin and leaders in both the House and Senate today introduced a joint plan for income tax cuts and tax code simplification. The proposal lowers the top income tax rate from 5.25 percent to 4.8 percent in Fiscal Year 2013 and includes a one-time additional tax cut tied to a revenue growth trigger in FY 2015. If state revenue grows by at least 5 percent in that year, the income tax rate would be reduced further to 4.5 percent.

The joint proposal represents a tax cut of over $218 million to Oklahomans when fully implemented in FY 2014, and would cut taxes by an additional $121.4 million in FY 2015 should the growth trigger be reached. Lost revenue is partially offset by tax reforms totaling $117 million when fully implemented in FY 2014. These reforms include the elimination of 33 tax credits, the elimination of certain deductions and the elimination of the personal exemption for single filers making over $35,000 and joint filers making over $70,000 (see attached one pager for new details).     

The new plan also simplifies the tax code by dropping the total number of tax brackets from seven to three. New rates will be set at 1 percent, 3.3 percent and 4.8 percent.

“This proposal represents a significant income tax cut and an important step forward for Oklahoma,” Fallin said. “Our plan is a responsible proposal that will go hand in hand with a budget that protects and supports all core functions of government. It also delivers a substantial tax cut that will allow Oklahomans to keep more of their hard-earned money while improving the environment for job recruitment and job retention in the state. I applaud both House and Senate leaders for coming together on this issue and giving the people of Oklahoma some well-deserved tax relief.”

House Speaker Kris Steele also spoke in support of the plan.

“Collections through April of this year are now $350 million higher than originally expected,” said Steele. “Oklahoma is growing. We have a choice to either spend all that money on more government, or give it back to the hardworking people of Oklahoma. We choose the latter. An income tax cut is not only the smart thing to do for Oklahoma’s economy, it’s the right thing to do for our citizens.”

Senate Pro Tem Brian Bingman said the tax cut would help small business owners while protecting core government services. 

“Today’s tentative agreement gives the people of Oklahoma a real and meaningful tax cut,” said Bingman.  “Senate Republicans have always believed lowering the tax burden is an important part of creating jobs and economic freedom in Oklahoma.  And today, we’ve taken an important step forward that shows the people of Oklahoma they can count on us to keep our word.  This plan will help more of our private sector citizens and small business owners be the innovators, entrepreneurs, and drivers of our state economy—all while protecting important core government services like teaching in the classroom.”

School Officials Lying about Impact of Senior Property Tax Freeze, Dank Says

OKLAHOMA CITY (March 22, 2012) – Claims by school lobbyists that a freeze on property taxes paid by senior citizens would cut school funding are simply false, the legislator who sponsored the measure said today.

“We ought to expect more from those who speak for our schools than outright falsehoods,” said state Rep. David Dank (R-Oklahoma City), whose House Joint Resolution 1001 would have allowed the people to vote to freeze property taxes owed by seniors at current levels for as long as they own their homes.

“The head of the state school board association actually alleged on Tuesday that this would cut school funding,” Dank said. “That is simply a lie. This measure would not cut one penny from any school or county budget anywhere in the state. All it would do would be to give Oklahoma’s 600,000 seniors assurance that their property taxes would not increase while they struggle to remain solvent and in their homes.”

HJR1001 was amended in the Senate committee to simply raise the current income level that already qualifies some seniors for a property tax freeze. That action came after school lobbyists claimed that the full freeze for all seniors would cut their budgets, even though it was evident that no actual reductions were involved.

“This is in no way, shape or form a tax cut,” Dank said of the measure. “It is bogus to claim that it is. The people who claim to speak for schools ought to have more regard for the truth.”

Dank said the property tax freeze for seniors was promoted by pleas from many seniors who are hard-pressed to live on fixed incomes with steadily rising utility, fuel and prescription bills, while also facing annual property tax increases. In some cases, he said, seniors facing medical costs or the need to place a spouse in a nursing home may be forced to sell their homes because of larger yearly property tax bills.

“You could give the school bureaucrats all the money in the world and they’d still want more,” he said. “We have a grossly inefficient public school system with far too many small districts. We have also seen superintendents get big pay raises even in the worst of the recession and now we are hearing them complain about a tax cut that isn’t a tax cut at all.”

Dank said he was especially concerned by statements by the head of the Oklahoma State School Boards Association, who was quoted as saying that the measure as originally written would cause an “erosion of the tax base” and result in “another reduction in funding for schools.”

“Aren’t the schools he claims to represent teaching basic arithmetic?” Dank asked. “One hundred percent is still 100 percent, even when it does not become 105 percent. This resolution was written specifically to hold schools and counties harmless. They would still receive the same amount each year in ad valorem revenues, plus any increases from higher valuations of property that are owned by those under 65.”

Dank said Oklahoma can remain an attractive location for retirees by being fair to seniors, or it can drive them out with excessive taxes.

“Every senior who is forced out of his or her home by more and more bills from the taxman represents a dead loss to Oklahoma,” he said. “Doesn’t it make more sense to help them remain independent and in their homes as productive seniors than to drive them into nursing homes or assisted living centers because they can no longer afford the tax bill?”

Dank praised state Sens. Steve Russell and Greg Treat for their defense of the measure in the Finance Committee, and urged senators to reconsider restoring the full senior freeze before they vote on it on the floor.

“Someone needs to tell the tax hogs that enough is enough, and that you cannot hound people literally into the grave without a reaction,” Dank said.

Lawmakers outline $853 million in unnecessary government spending

OKLAHOMA CITY – Over $853 million in unnecessary state government spending of taxpayer dollars was outlined today by a group of lawmakers who want to use the savings to make Oklahoma a no-income-tax state.

The group is advancing a proposal to phase out Oklahoma’s personal income tax over 10 years.

“We believe Oklahoma should be the state where people keep more of the fruits of their labor than anywhere else,” said state Rep. Leslie Osborn, R-Mustang. “This will make us a magnet for job creators and set us on a path of vibrant economic growth and long-term prosperity.”

The group’s proposal aims to achieve full phase-out of the tax without raising other tax rates, negatively affecting core state government services, or harming retirees, senior citizens or veterans.

To do so, the lawmakers say their proposal requires a total of $525 million in total reductions in state government outlays that must be found over a two-year period. Because the savings can be found over two years instead of just one, annual savings found for Fiscal Year 2013 could also be counted again in Fiscal Year 2014 toward the total savings necessary.

In offering a list of $853 million in total savings options over the next two budget years, the lawmakers maintain there is plenty of room to reduce wasteful, unnecessary state spending while avoiding cutting core services, and still put Oklahoma on track to become the tenth state in the nation without a personal income tax.

“We can make these reductions and not touch one dollar of actual core spending in education, transportation, public safety, or the safety net for the truly needy,” said state Rep. David Brumbaugh, R-Broken Arrow. “In return, we can repeal our state’s income tax in a responsible amount of time and see an influx of new jobs and investment in Oklahoma at levels we’ve not seen before.”

The list of $853 million over two years includes savings from three areas: wasteful, inefficient or unnecessary state expenditures; corporate tax credits that have not exhibited a high enough return on taxpayer investment; and modernization, consolidation and technology reforms within state government bureaucracy that are still in the process of being implemented.

“Some of our colleagues may feel uneasy about eliminating taxpayer subsidies for things like golf courses or rodeos that may be in their home district,” said state Rep. Tom Newell, R-Seminole. “Or they may think it’s inconvenient to make state agencies operate efficiently. But our constituents sent us to the Capitol to use common sense and fix what needs fixing. And they don’t deserve for their hard-earned tax dollars to be spent wastefully.”

Newell said the goal in releasing the list was to compile credible savings ideas from several sources. Working from this list, the lawmakers hope to encourage their colleagues to build a consensus around which areas of nonessential state spending could be trimmed over the next two years.

One source lawmakers credited was the work in recent months by state Rep. David Dank, chair of the House Appropriations & Budget Subcommittee on Revenue & Taxation, and state Sen. Mike Mazzei, chair of the Senate Finance Committee, to bring attention to ineffective corporate tax credits.

Another acknowledged source was a recently released list of state budget reduction ideas from the Oklahoma Council of Public Affairs (OCPA), a free-market think tank.

State Rep. Charles Ortega said he and his colleagues, when examining the savings recommendations from these and other sources, adopted some and left others for another day.

“The goal here is to put together good ideas from several different places and start reaching a consensus on what’s possible, both politically and practically, in order to find enough savings to phase out our income tax,” said Ortega, R-Altus. “We have great respect for the ideas put forward in recent weeks and months by Chairman Dank, Chairman Mazzei, groups like OCPA and others. Some of these ideas have legs right now, and some may not. We believe repealing Oklahoma’s income tax is essential for our state, so we’re asking our colleagues to work with us to determine where we can reduce unnecessary taxpayer expenditures in order to make it happen.”

Click here to see a list of suggested cuts

Income Tax Elimination Would Yield 312,000 More Jobs, Higher Personal Income, Better Economy

By Patrick B. McGuigan (Published: 29-Nov-2011) 


Economist Arthur Laffer has outlined an historic proposal for transformation of Oklahoma state government's system of taxation and revenue. Guiding a trio of leading American tax researchers, Professor Laffer projects dramatic positive results if policymakers pursue phased-in reductions of state personal income tax rates, leading to eventual elimination of the unpopular levy. 

Assessment of the positive impact triggered by a gradual elimination of the personal income tax comes as members of the state Legislature move to wrap up detailed study of possible tax reforms. Proposals now “in play” include ending some of the most controversial business incentives and tax credits. 


CapitolBeatOK has studied the analysis for several days. A summary of key findings in the Laffer-OCPA study, which is being released this week, follows. 

In the 17-page publication co-published by the Oklahoma Council of Public Affairs (OCPA) and Arduin, Laffer and Moore Econometrics (ALME), analysts contend a complete phaseout of the state income tax “would create a long-lasting economic boom, benefiting generations to come.” 

Highlights include projected net growth of over 310,000 jobs more than if current policies stay in place. The analysis projects dramatic economic improvements, while acknowledging the spending impact of a shift away from Oklahoma government's present reliance on income tax revenues. 

Information, Applications Posted on Newest School Choice Law

Oklahoma Equal Education Opportunity Scholarship Act Begins Work

OKLAHOMA CITY (September 8, 2011) -- The Oklahoma Tax Commission has posted applications on its website for both educational improvement grant organizations and scholarship-granting organizations in response to Senate Bill 969, a tuition tax credit program, which took effect August 26. 

Supt. Janet Barresi

“I’m glad this important reform has taken effect,” State Superintendent of Public Instruction Janet Barresi said. “This bill allows Oklahoma parents the opportunity to make the best choice for their children’s education. It gives much-needed support to low-income families and helps bring innovative programs to our schools.”

SB 969, by State Sen. Dan Newberry, R-Tulsa, and State Rep. Lee Denney, R-Cushing, is a key plank in Superintendent Barresi’s 3R Agenda to rethink, restructure and reform Oklahoma’s education system.

The bill offers a 50 percent state income tax credit to businesses and individuals making contributions to scholarship-granting organizations. Those organizations, in turn, provide tuition scholarships to families earning less than 300 percent of the requirement for the federal free and reduced lunch program or whose children attend a school identified as needing improvement under the No Child Left Behind Act of 2001. Funds generated from the tax credits also could be used to finance grants for innovative education programs in rural public schools across the state.

Contribution limits are up to $1,000 per person, $2,000 per couple or up to $100,000 per business entity. Up to $5 million in tax credits can be raised each year, half from individual tax filers and half from corporate tax filers. Any credits earned during the time period beginning August 26, 2011, through December 31, 2012, may not be claimed until tax year 2013.

Scholarship and grant organizations will be established as nonprofits, contributing at least ninety percent of annual receipts to eligible recipients and reporting annually to the Tax Commission. 

Sen. Dan Newberry
R-Tulsa

“In order to give every student a chance to learn, we must empower students and families with freedom of choice,” said Newberry in May after the Senate passed the final version of SB 969. “This legislation will encourage private sector investment in the success of our low-income children, removing barriers to achievement and helping children build better lives. Expanding choice will create a more fertile climate for learning, improving our education system.”

Newberry noted the measure would increase the overall amount spent on primary education while saving the state tax dollars.

Rep. Lee Denney
R-Cushing

“This legislation provides an opportunity for Oklahomans to help poor children obtain a quality education,” said state Rep. Lee Denney, R-Cushing. “It provides a much-needed new source of education funding to benefit the students who are most at-risk.”

Organizations interested in applying can go to http://www.tax.ok.gov/btforms.html.

Tax Credits Task Force Discusses Capital Investment Incentives

OKLAHOMA CITY – The Task Force on State Tax Credits and Economic Incentives heard presentations on some of the state’s largest tax credits and incentives today.

State Rep. David Dank, chairman of the task force, said the task force is concerned that the Oklahoma Capital Investment Board Tax Credits are being used by out-of-state businesses when they were created to bring jobs to the state.

Rep. David Dank
R-Oklahoma City

“I think we’re finding out that there are far too many dollars that are being invested in companies and corporations outside the state borders,” Dank (R-Oklahoma City) said. “I think these are the things we are going to have to focus on.”

The Oklahoma Capital Investment Board has made commitments to 19 venture funds. More than $130 million has been invested. Dank said the board will have to do a better job of demonstrating exactly how those funds have been spent if it expects to receive future funding.

“I don’t think they have been able to really show the results of who, what, where, when and why,” Dank said. “I don’t think they’ve been able to provide that information and I think they’ve come up short. I think we have a lot more questions to have answered before we would even consider allowing them to continue to use taxpayer dollars.”

The task force also examined the Small Business Venture Capital Formation Incentive Act and the Rural Venture Capital Formation Incentive Act.

“We want to be able to understand in detail how each and every one of these tax incentives are being used and how they have benefited Oklahoma,” Dank said.

Dank Praises Passage of Tax Exemption Tradeoff

Rep. David Dank
R-Oklahoma City

State Rep. David Dank (R-Oklahoma City) today praised the members of the House Revenue and Taxation Committee for trading a sales tax exemption he called “nonsense” for one that benefits the surviving spouses of disabled veterans.

In an unusual move, Dank successfully urged the committee he chairs to remove a 2006 sales tax exemption granted to rock quarries and replace it with one that extends an existing sales tax exemption for 100-percent disabled veterans to their surviving unmarried spouses.

“This was a victory for common sense,” Dank said. “I can’t recall a time when we tossed out one of those last-minute giveaway tax benefits that are simply nonsense and replaced it with one that makes real sense.”

The rock quarry sales tax exemption was added to legislation in the closing hours of the 2006 special legislative session. Dank said a lobbyist apparently convinced a legislative leader to add the measure.

“There was no reason for it,” he said. “It was simply one of those backroom giveaways. Why should rock quarries be exempt from sales taxes and not sandpits or brickyards?”

Dank said the fiscal impact of the 2006 exemption for rock quarries was estimated at about $360,000. The impact of extending the existing sales tax exemption for disabled vets to their widows or widowers was set at some $400,000.

“So I proposed a trade to the committee,” Dank said. “Dump this wasteful special interest tax break that does nothing for the average taxpayer and replace it with a benefit that recognizes and rewards families that gave so much in service to our country.”

Dank said the rock quarry tax exemption is “just one more example of those last-minute deals written into the tax code to give special treatment for narrow special interests. It is why we need to move ahead with a complete examination of our tax code.”

Dank’s amendment stripping the rock quarry sales tax exemption from law was added to the bill extending the exemption to vets’ survivors, which is sponsored by Sen. Don Barrington and Rep. Ann Coody (both R-Lawton). The amended bill will now go to the House Appropriations and Budget Committee for action.

Lawmakers Examine Individual Health Insurance Tax Relief

OKLAHOMA CITY – Phillip Smith calls himself a concerned citizen representing Oklahomans who want a free market health care system. He spoke at an interim study today about why he believes they must help make the system more consumer-driven.

Smith said the health care system has been a third party payer system, with the third party being either the government or private insurance. Giving individuals the same tax breaks as companies for purchasing health insurance will begin a journey towards a system with more consumer choice and lower costs, he said.

State Rep. Jason Nelson, who requested the study, said he favors individual health insurance tax relief but wanted to study how feasible implementing it would be.

“The federal government is taking the wrong approach to health care. By getting the government more involved, they believe they will find lower costs and a better system,” Nelson, R-Oklahoma City, said. “Phillip Smith believes just the opposite and I agree. What we need is a more free market system. Giving individuals tax relief on health insurance purchases will lower the cost they pay for insurance and give them a wider range of options rather than just insurance through their employer or through a government entity.”

Nelson said he plans to introduce legislation to create tax credits for individuals to give them greater power and options in purchasing health insurance. He said he will draw on today’s presentations to help shape the legislation.

When Nelson filed a similar measure in the 2009 session, it was estimated the legislation would benefit up to 1.18 million Oklahoma families and individuals who would have been allowed to deduct about $2.23 billion in health insurance premiums, saving an estimated $85.9 million in taxes and increasing their ability to buy better coverage.

Tom Daxon, a certified public accountant and the author of an Oklahoma Council of Public Affairs study on health care reform, urged lawmakers to support Nelson’s plan. He said that regardless of the outcome of the national debate, employers are going to be under increased pressure that will likely result in higher deductibles and lower quality of health coverage. Giving individuals more power to buy their insurance outside of what their employer offers is the right direction, he said.

Smith said he looks forward to the Legislature taking an active role on the path to a free market health care system.

“Representative Nelson’s tax credit plan will start the process of building a true consumer-driven health care system,” Smith said.

Tax Incentive Legislation Passes House Committee

AP story in the Oklahoman

"Legislation to expand tax incentives for energy efficient homes and give tax relief to the victims of the Feb. 10 tornado has cleared a state House committee."

Tax Relief for Tornado Victims, Military Widows and Energy Efficient Homes

OKLAHOMA CITY (April 9, 2009) – Legislation to expand tax incentives for building energy efficient homes and give tax relief to the victims of the Feb. 10 tornado and spouses of fallen servicemen has been passed out of the House Appropriations and Budget Committee.

Senate Bill 481, by state Sen. Todd Lamb and state Rep. Jason Nelson, would expand the existing credit for construction of energy efficient residential property, so that the credit can be used on the construction of property of any size beginning Jan. 1, 2010. Currently, the eligible residential properties are limited to 2,000 square feet.

The bill would also give tornado victims an income tax credit for tax years after Dec. 31, 2009 and a credit for registration fees and the excise tax for any vehicle purchased to replace a vehicle destroyed by the Feb. 10 tornado.

Larger residential properties stand to gain the most from energy efficiency, Nelson said.

“Large buildings consume the most energy and therefore it is common sense to include them as eligible for this tax incentive,” Nelson said. “My legislation would save builders a total of $2.4 million, allowing them to focus on lowering the energy costs for Oklahomans who purchase their homes.”

Nelson said tornado victims were in need of tax relief and that he was glad they would be supported by his measure also.

“The February 10 tornado was devastating to some Oklahoma families and individuals and I am proud to include tax relief for them in my bill,” Nelson said.

An amendment to the bill also added an income tax exemption for the spouses of fallen servicemen and women.

“These brave men and women have made the ultimate sacrifice for their country,” Nelson said. “Their spouses, who have suffered a great loss, deserve our consideration. My hope is that the legislation will help honor their memories.”

Senate Bill 481 now proceeds to the full House for debate and a vote.