Flood plain buy-outs may be taxable
Tuesday, December 28th 2004, 9:41 am
News On 6
OKLAHOMA CITY (AP) _ Up to 1,000 Tulsa County residents may have to pay taxes on money they received to move out of flood plains.
The residents could be forced to pay the tax under an Internal Revenue Service ruling. The ruling could also force several thousand people in Oklahoma to pay taxes on grants they were given to build tornado shelters.
The ruling is being called a ``disaster tax'' by Missouri Senator Kit Bond, who tried but failed in October to pass legislation reversing the ruling.
Oklahoma Congressman Ernest Istook is a member of the committee that oversees IRS funding and says he doesn't think Congress will let the tax take place.
Congressman Tom Cole is also promising a bill to stop enforcement of the IRS ruling.