Oklahoma Senate approves repeal of income tax cut trigger

Posted at 5:03 PM, May 08, 2017
and last updated 2017-05-08 18:03:46-04

OKLAHOMA CITY (AP) -- The Oklahoma Senate has given final legislative approval to a bill to repeal the trigger that would cut the state's individual income tax rate from 5 percent to 4.85 percent.

The Senate voted 32-9 for the bill Monday, sending it to Gov. Mary Fallin who is expected to sign it.

The bill would repeal 2014 legislation that provides a mechanism to reduce Oklahoma's top tax rate when tax collections increase by about $100 million annually. Since then, revenues have plummeted and the state faces a budget hole of $878 million next year.

State finance officials have encouraged lawmakers to repeal the income tax cut until state revenues stabilize.

Officials say the cut would cost about $97 million a year if implemented.

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