Staff
Capitol sources say there has been an agreement reached to double the gross production tax on horizontal wells, increasing it from 1% to 2%.
The Governor, Speaker, and President Pro-Tempore are expected to announce this key accord in the coming days.
This move is expected to double the amount of revenue the state takes in from gross production taxes on horizontal wells. No agreement has yet been reached on how the state will spend the increased tax revenue.
Further details are not known at this time, but we will post as soon as we have reliable information.
Great Kensyean economics. The state is going to increase the taxes on the industry that is providing economic growth and stability. Where are the fiscal conservative in this state?
KingJames, you are dead on accurate. But lets not muddy the arguement with facts.
You’re both wrong here, guys. What this misleading article fails to mention is that the actual gross production tax is 7%. There was a six percent incentive enacted several years ago to encourage horizontal drilling making the tax 1%. This incentive, by law, was set to expire in 2015. There is no longer any need to encourage horizontal drilling. It is the new normal and the incentive should be allowed to expire allowing the tax to return to what the law says it should do. Locking in a 2% tax now is a tax break of nearly 70 percent. With Oklahoma Schools reeling from the sweeping budget cuts of 2009-10, dropping this tax from 7% to 2% is taking millions of dollars away from Oklahoma’s future.