Income Tax Proposals Filed With The State Legislature

OKLAHOMA CITY (AP) - State Rep. Randy Terrill on Wednesday introduced a bill to further reduce Oklahoma's individual income tax rate.<br/><br/>Terrill, R-Moore, wants to reduce the tax to 4.65 percent

Wednesday, January 17th 2007, 7:43 pm

By: News On 6

OKLAHOMA CITY (AP) - State Rep. Randy Terrill on Wednesday introduced a bill to further reduce Oklahoma's individual income tax rate.

Terrill, R-Moore, wants to reduce the tax to 4.65 percent at a cost of an estimated $200 million. He also is proposing in a separate bill to change the corporate tax law so that small businesses are taxed at a rate lower than the current 6 percent rate.

The lawmaker is chairman of the House Revenue and Taxation Subcommittee. He said he is introducing the tax bills on his own and they are not necessarily the goals of the House Republican leadership.

Last year, Gov. Brad Henry signed a $600 million-plus tax-cut program that will reduce the income tax rate from 6.25 percent to 5.5 percent over three years. In the fourth year, the tax rate would fall to 5.25 percent if the economy remains strong.

That plan also increases the standard deduction and eliminates the estate tax over time.

Terrill said the Oklahoma economy shows strength, despite the recent drop in natural gas tax revenue. He said reducing the personal income tax rate to 4.65 percent is "a reasonable and achievable goal."

He said his corporate income tax plan would cost between $10 million and $20 million.