Democrat leaders in the House had negotiated down to a 5% petroleum production tax, in May; but House & Senate Republicans would not budge past 4%. This entire fiasco played out over the summer because of a 1% difference in gross production for the 1st three years of a new well's operations.
Democrats argue that surrounding states all charge a 7% gross production tax. But Texas does not charge a secondary income tax, as Oklahoma does. Texas relies more heavily on property taxes to fund state services.
State Auditor, Gary Jones, argues that a gross production tax is the equivalent of a property tax, but is only assessed one time (at the point that it is pumped out of the ground).
Opinion of the Editor
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David Van Risseghem is the Director of Sooner Politics.org. The resource is committed to informing & mobilizing conservative Oklahomans for civic reform. This endeavor seeks to utilize the efforts of all cooperative facets of the Conservative movement...