Governor Signs Tax Cut Bill

Monday, May 14th 2007, 6:04 pm

By: News On 6

OKLAHOMA CITY (AP) -- Governor Brad Henry has signed into law a tax cut bill that was one of the top priorities of Republican legislative leaders. Henry had until midnight to decide what to do with the tax cut bill passed by the state House and state Senate, and he didn't make his decision until the final hour.

The bill accelerates income tax cuts approved last year, eliminates the franchise tax for small businesses and authorizes a back-to-school sales-tax holiday and a tax credit for stay-at-home parents.

Republicans had suggested that a veto might force a special session to complete work on a state budget for the fiscal year that begins July 1st.

But the Democratic governor says he and legislative leaders have made significant progress the major pieces of a state budget framework. He believes the Legislature is on track to adjourn on time and address all of Oklahomans' needs.

State agencies will run out of money if a new budget is not in place when the 2007 fiscal year ends on June 30th.