OKLAHOMA CITY - As Oklahomans gear up for a new year filled with new
goals, Oklahoma legislators have supplied financial assistance through
several new tax cuts.
State Representative Kevin Calvey said all Oklahomans should expect
significant savings due to the new tax breaks that took affect January
1, 2006, particularly a reduction in income tax rates.
Lawmakers voted in House Bill 1547 last year to cut the top income tax
rate from 6.65 percent to 6.25 percent, saving taxpayers over $100
million every year. Every taxpayer earning more than $10,000 of income
a year will benefit from the rate cut.
"The income tax cut was the largest in state history and is also the
first permanent income tax cut in years," said Calvey, R-Del City. "It
is imperative to reduce our high income tax rate so Oklahoma can be more
competitive with our surrounding states in attracting jobs."
House Speaker Todd Hiett, R-Kellyville, plans to cut the income tax rate
to less than 6 percent during this year's legislative session, and to
eliminate the state's death tax, as well. As chairman of the House
Revenue and Taxation Committee, Calvey will be a key player in the tax
Calvey said he was pleased to give something back to all the Oklahoma
soldiers who are fighting to protect the nation and the state. A new
law does just that by increasing the value of retirement benefits
received by members of the Armed Forces. Lawmakers voted to exempt
military retirees from taxation on the first $10,000 of military
retirement, or 50 percent of their retirement income, whichever is
"This endeavor was advanced by Rep. Ann Coody (R-Lawton). It was an
honor to be able to assist our deserving veterans with their retirement
income," said Calvey.
The 2006 tax year will also provide Oklahomans with an increase in their
standard deduction. In 2005, married couples filing jointly received a
deduction of $2,000; for the 2006 tax year, they will receive a
deduction of $3,000.
"Our goal was to help those tax payers that don't itemize deductions on
returns. My counterpart, Sen. Jay Paul Gumm (D-Durant), and I were glad
to advance this measure, knowing the positive impact it will have on
Oklahoma taxpayers," said Calvey.
Last session also produced several new tax incentives to boost the
economy and attract new business to the state. One of the most
significant is the elimination of the capital gains tax on income from
the sale of Oklahoma-based properties and companies. Previously, if a
corporation bought stock in an Oklahoma company and that stock's value
increased by $1 million, the capital gains tax would have been $60,000.
Under the new law for the 2006 tax year, no income tax will have to be
"This effort keeps investment dollars in Oklahoma where they should be,"
Calvey said he views this past year's tax relief bills as just a
stepping stone for even greater tax break measures that will lead
Oklahoma in a new direction of taxpayer savings.
"It's the taxpayers' turn."
Boise City News
P.O. Box 278
105 W. Main Street
Boise City, Oklahoma 73933-0278
Phone: 580 544-2222
Fax: 580 544-3281
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