Bill Designed to Clarify Firms' Taxable Income

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A bill reviewed by the House Revenue and Taxation Committee on Wednesday would clarify taxable investment income for multi-state Oklahoma operations that invest on a short-term cash-management basis.

The bill says only interest attributable to Oklahoma operations would be taxable in this state.

Rep. Russ Roach, D-Tulsa, said his House Bill 2437 would apply to income from investments held to generate working capital, interest on which would be taxed on a unitary basis. Tony Mastin, director of the Tax Policy and Research Division of the Oklahoma Tax Commission, said the bill would have no fiscal impact during 1998. "It would clarify the exact nature of that income," said Mastin. Tulsa attorney Ken Hunt said there is some confusion as to how much of such short-term interest income should be taxed in Oklahoma. He pointed out that all states surrounding Oklahoma provide for a uniform division of income for tax purposes. Roach said the situation is unfair to Oklahoma firms. …