Oklahoma Senate Bill SB988

Oklahoma 2022 Regular Session

• Introduced: 2/1/21
• Refer: 2/2/21

Caption

Public finance; reducing tax credits and incentives by certain amount. Effective date.

Impact

If enacted, SB988 will significantly impact the state's revenues and the financial health of various sectors that benefit from tax incentives. By reducing tax credits and incentives, the bill could potentially alter the landscape of funding available for businesses, nonprofits, and other entities reliant on these incentives for operational or growth support. Proponents advocate that this move could lead to a more fiscally responsible budget, enhancing the state's financial stability and ensuring taxpayer funds are managed with greater transparency.

Summary

Senate Bill 988, also known as the Taxpayer Transparency Act, proposes a reduction of existing tax credits and incentives provided in the Oklahoma Statutes by 20% for the tax year 2022 and subsequent years. This legislative change is aimed at adjusting state financial policies to enhance transparency in taxpayer funding and ensure more effective allocation of financial resources. The bill emphasizes the need for accountability and aims to streamline public finances by scaling back tax spending where possible.

Contention

Notable points of contention surrounding SB988 include concerns from various stakeholders about the potential negative impact on economic development and business growth. Critics argue that reducing tax credits could deter investment in the state, adversely affecting job creation and economic activity. These stakeholders voice apprehension that the bill may disproportionately impact smaller businesses and vital community services that rely on financial incentives for sustainability. The bill's approach has raised discussions about finding a balance between fiscal prudence and supporting local economies effectively.