Wednesday, October 25, 2017

Fallin Tax Hike plan to be voted on today; cost figures released


The Oklahoma Legislature is set to vote on a budget package today that increases taxes and increases spending, all while meeting in a special session that was called to fill a $215M budget hole created by the passage and overturning of unconstitutional tax measures.

The fiscal impacts have been released on the bills - all we had previously were educated guesses. Here they are:

HB1035X - "imposing additional tax levy upon cigarettes and tobacco products; imposing tax on gasoline and diesel fuel; taxes applicable to low-point beer" (fiscal impact statement 1, statement 2)

  • Increase Cigarette Excise Tax ($1.50 per pack): $107.4M for FY18, $243.5M for FY19 and following
  • Apply 13.5% Mixed Beverage Tax on low-point beer: $14.5M for FY18, $14.5M for FY19 and following
  • Increase Excise Tax on Gasoline and Diesel by 6¢ per gallon: $56.8M for FY18, $170.4M for FY19 and following
  • Tax Little Cigars as Cigarettes: $694K for FY18, $1.6M for FY19 and following
  • Increase on smokeless tobacco products: $3.7M for FY18, $11.2M for FY19 and following
  • Reduce discount on cigarette stamps from 15¢ to 1¢: $495K for FY18, $1.2M for FY19 and following
Total for the remainder of FY18 would be $183,758,000, while the total for following fiscal years would be $442,590,000.


HB1036X - $3,000 pay raise for "certified teachers, defined as any certified, full time employee who is employed as a charter school teacher, district wide teacher, elementary teacher, junior high teacher, middle school teacher, senior high teacher or resource teacher." (fiscal impact statement)
  • FY19 and following cost: $144,041,783 (includes additional costs incurred for FICA and retirement)

HB1037X - state employee pay raise (fiscal impact statement)
  • FY19 and following cost: $34,949,363 (includes additional costs incurred for FICA and retirement)

For more on my take on these tax and spending increases, see Will this be Taxapalooza Tuesday? and Special Session Teacher Pay Raise: Worthy Goal, but Misguided Timing.

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