Oklahoma Senate Bill SB592

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21
• Report Pass: 2/19/21
• Refer: 2/19/21

Caption

State Treasurer; authorizing the issue of tax anticipation notes. Effective date.

Impact

The bill will have a significant impact on public finance in Oklahoma. By allowing the issuance of up to $25 million in tax anticipation notes, the state aims to bolster its general revenue fund, potentially easing cash flow issues that can arise throughout the fiscal year. The funds raised through these notes will be deposited into the General Revenue Fund, which is critical for funding state-level services and programs. At the same time, the stipulation that the spread between the purchase price and the par value cannot exceed a defined rate ensures that the notes remain a viable and not overly burdensome option for taxpayers.

Summary

Senate Bill 592 authorizes the State Treasurer of Oklahoma to establish a program for issuing tax anticipation notes, which are discount notes issued to taxpayers to deduct against their income tax liabilities. This program is designed to potentially provide liquidity to the state by enabling taxpayers to access funds in the form of these notes, which can be used to offset future tax obligations. The bill outlines specific terms, including a maximum maturity of up to three years for the notes and stipulates that they must be issued in increments of $1,000. The intent is to assist taxpayers while concurrently streamlining the management of tax revenues within the state.

Contention

One notable point of contention surrounding SB592 may involve discussions regarding the implications of allowing such financial instruments at the state level. Critics could argue that while tax anticipation notes may provide short-term financial relief, they could also lead to long-term fiscal challenges if not managed prudently. Additionally, concerns about the potential impact on taxpayers, especially in regard to how these notes integrate with existing tax obligations, could be a subject of debate among legislators and tax policy advocates.