By Barbara Hoberock, Oklahoma Voice
OKLAHOMA CITY – Gov. Kevin Stitt on Wednesday signed a bill to cut the state’s top income tax rate.
“Over my seven years, we’ve cut a billion dollars in taxes for hard working Oklahomans and our economy is booming,” Stitt said. “We still have record savings and so everything is good.”
House Bill 2764 reduces the state’s top income tax bracket by .25% from 4.75% from 4.5% and contains a path toward eliminating it entirely. Most Oklahomans fall within the top bracket.
The fiscal impact is expected to be about $350 million.
The measure also collapses the state’s six tax brackets into three, and contains a mechanism for additional reductions if certain financial conditions are met.
The tax cut was a key agenda item for Stitt.
It comes at a time when there is new leadership in the House and Senate.
Last session, the Senate refused to cut the income tax rate further.
Critics of the tax cut say it comes at a time when federal COVID relief dollars have propped up the state’s budget.
They also said it is unwise to reduce the income tax rate when Congress is considering shifting costs for Medicaid and food stamps to the states.
Last year, lawmakers and Stitt eliminated the state’s 4.5% sales tax on groceries.
Lawmakers could end the session on Thursday, a day earlier than they’re required by law.
“I think everything is going well,” Stitt said. “We’re going to land this plane. I feel really, really good. I think it’s one of the best sessions we’ve had in my seven years.”
