The sticking point remains a matter of 1% difference in gross production taxes on oil producers. It also depends on whether all wells are taxed at the same rate or if only new wells not yet drilled will see the higher rate.
Currently, newer wells are getting taxed at 2% of production for the first 3 years. Then they are taxed at 7% thereafter. The Republicans had offered a 4% package. The Democrats seems willing to move from 7% to 5% on all wells.
If a deal is reached on increasing oil production taxes, then several other large tax hikes will also be pushed through, making this years legislature the biggest tax hikers in decades.
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...