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gross production tax

Whitney Bryen / Oklahoma Watch

The end of the widespread teacher walkout doesn’t mean questions surrounding Oklahoma’s education funding are settled.

Voters will head to the polls this November to chose Oklahoma’s next governor and elect a large swath of the Legislature. But it’s a pair of proposed state questions, which may or may not ultimately appear on the ballot, that could decide if teachers lose recently approved raises or possibly receive further pay increases.

Teachers, parents and students at a March 2018 education rally in downtown Tulsa.
Joe Wertz / StateImpact Oklahoma

After months of gridlock and failed deal-making, the Oklahoma House and Senate have passed a nearly $450 million tax package designed to fund raises for teachers and avoid statewide school closures.

Gov. Mary Fallin said she’ll sign the tax package, which fell short of teachers’ demands. Educators still plan to march at the Capitol April 2 to pressure lawmakers to spend more on schools and public employees and continue a debate that has highlighted growing gaps and frustrations over taxes and government.

 

Oklahoma Supreme Court

The Oklahoma Supreme Court on Monday ruled a proposed state question that would ask voters to approve tax hikes on oil and gas production to help fund education can move forward.

Sue Ogrocki / AP Photo

Oklahoma state lawmakers returned to the Capitol this week and are working to wrap up the second special session, which means voting on revenue-raising measures.

eCapitol’s Shawn Ashley reports the Senate and House Joint Committee on Appropriations and Budget approved many of the suggestions proposed by the group Step Up Oklahoma.

 

Mickey Thompson, founder and director of Restore Oklahoma Now, leaves the attorney general's office after filing paperwork for State Question 795.
Joe Wertz / StateImpact Oklahoma

Mickey Thompson has a manila envelope tucked under his arm as he walks towards the Oklahoma Capitol. If the paperwork doesn’t start a fight, it almost certainly will add fuel to one.

Inside the envelope is the handiwork of about 10 people over a couple of months that could clear a path for Oklahoma voters to do something most lawmakers won’t consider: Enact broad tax hikes on oil and gas production to help fund public education.

Warren Vieth / Oklahoma Watch

The battle over Oklahoma’s tax on oil and gas production could soon spread outside the State Capitol to dinner conversations and public debates across the state.

A group of small oil and gas producers said despite recent efforts in the Legislature to raise the gross production tax temporarily to 7 percent on some wells, it will forge ahead with trying to put a state question on the 2018 ballot that would set a permanent 7 percent tax on all wells.

okhouse.gov

Although the special legislative session has been suspended, the deal-making continues. eCapitol News director Shawn Ashley says a revenue-raising package may be in the works.

 

Gov. Mary Fallin met with the House Republican Caucus on Wednesday for more than two hours. After the meeting, Fallin told eCapitol she was optimistic.

Oklahoma State Capitol Building
Claire Donnelly / KGOU

Gov. Mary Fallin signed the Fiscal Year 2018 Oklahoma state budget Wednesday.

Oklahoma state capitol
Jacob McCleland / KGOU

The Oklahoma legislature wraps up today, as lawmakers pass a final budget deal that will fill a nearly $900 million shortfall. Legislators passed several bills that will have an impact on business in the state. Journal Record editor Ted Streuli and KGOU’s Jacob McCleland reviewed some of the business-related bills.

Oklahoma State Capitol Building
Claire Donnelly / KGOU

Oklahoma state lawmakers have yet to agree on a plan to raise money for the state, and could be facing special session. 

Lights from a drilling rig near Watonga, Oklahoma.
Joe Wertz / StateImpact Oklahoma

The 2017 legislative session is beyond the halfway point and the clock is ticking on lawmakers who have until the end of May to set the state’s budget and plug an $870 million funding hole. Legislators say every option is on the table, including one with growing public support: Increasing taxes on oil and gas.

First, it was state Democrats like minority leader Scott Inman, who have long argued Oklahoma’s taxes are too generous for oil and gas companies.

A drilling rig in northwestern Oklahoma's Mississippi Lime oil and gas play.
Joe Wertz / StateImpact Oklahoma

Oklahoma legislators are under pressure to fund teacher raises and pay for health insurance coverage, workers comp, criminal justice initiatives and state prisons from a pool of money that could be $600 million short of what’s needed.

An American Energy Woodford well near Perkins, Okla.
Joe Wertz / StateImpact Oklahoma

The oil boom minted millionaire executives and transformed Oklahoma City into a corporate energy hub, but industry tax breaks and funding cuts kept much of the prosperity from reaching public services, a new Reuters investigation shows.

Oklahoma City attorney and legislative watchdog Jerry Fent, who has successfully challenged laws in the past, comes out of a hearing room at the State Supreme Court, where a referee heard his lawsuit over House Bill 2562.
Joe Wertz / StateImpact Oklahoma

The State Supreme Court on July 29 heard a lawsuit and constitutional challenge to House Bill 2562, a measure that would change the effective state tax rate levied on oil and gas production.

Both parties agreed that the measure was written to reduce taxes, but is HB 2562 a “revenue bill?” That definition is important because this court battle isn’t about policy, it’s about procedure.

A lawsuit over recently signed legislation that changes state oil and gas tax rates will be heard by the Oklahoma Supreme Court today, a constitutional challenge that could have broad impact on industry and legislative procedure.

I broke down the lawsuit on an Oklahoma News Report segment with OETA’s Dick Pryor, which you can watch above. But there are five things you need to know about today’s hearing, which could hinge on legal subtleties and word interpretations.

House Speaker Jeff Hickman (R-Fairview) at Gov. Mary Fallin's State of the State address - February 3, 2014.
Joe Wertz / StateImpact Oklahoma

A controversial bill setting the effective tax rate on new oil and gas wells was one of the capstones of the 2014 legislative session.

StateImpact Oklahoma reporter Joe Wertz appeared on OETA-The ​Oklahoma Network's Oklahoma News Report last week to discuss a possible constitutional challenge to the controversial tax incentive for oil and gas wells, which Gov. Mary Fallin signed this week.

Close-up of a Pump Jack
neillharmer / Flickr

An attorney who has successfully challenged the constitutionality of legislation in the past is urging Gov. Mary Fallin to reject a tax incentive for oil and gas production that he claims is unconstitutional.

Oklahoma City attorney Jerry Fent hand delivered a letter to Fallin's office Tuesday urging her not to approve the bill. Fent says it was passed during the last week of the legislative session in violation of a constitutional requirement.

Close-up of a Pump Jack
neillharmer / Flickr

Executives at Chesapeake Energy, Continental Resources and Devon Energy have proposed a plan for Oklahoma’s taxes on oil and natural gas production.

The proposal comes as legislators are debating state oil and gas taxes, which include an incentive for horizontal drilling that expires next year. The Oklahoman‘sAdam Wilmoth reports:

Meredithw / Flickr Creative Commons

A new poll shows 64 percent of Oklahoma voters oppose state tax incentives for horizontal drilling and support eliminating the incentive to pay for other government services.

Oklahoma levies a 7 percent tax on oil and gas production, but the horizontal drilling incentive lowers the rate to 1 percent for the first 48 months of production. The incentive expires in 2015, and some Oklahoma lawmakers are pushing to make the reduced rate permanent.

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