Newspaper article THE JOURNAL RECORD

U.S. Tax Reform to Lift State Revenues / Says Income Tax Director

Newspaper article THE JOURNAL RECORD

U.S. Tax Reform to Lift State Revenues / Says Income Tax Director

Article excerpt

Federal tax reform is expected to increase state tax revenues but how much that impact will be is not known, said Jerry Go lden, director of income tax for the Oklahoma Tax Commission.

"All we know is it will increase," Golden said. "Nearly all features (of the federal bill) will have an impact that will probably increase Oklahoma tax," he said.

Estimates of the percentage Oklahoma revenues could increase, made by a variety entities outside the state, range between 13 and 20 percent but those were made prior to a final draft of the tax bill and could easily be wrong.

One of those estimates show Oklahoma with the fourth largest increase of any state, Golden said.

State revenues from income taxes amount to about $870 million. The estimates would give Oklahoma at least a $100 million increase.

"That seems too much," Golden said, "but it could be in the ballpark."

The Oklahoma Tax Commission is attempting to do a thorough study of what the reform bill will mean to the state. However, that study is not expected to be completed for some time - possibly until the legislature convenes in January.

Meanwhile for the state overall, the net effect of the federal tax reform bill for Oklahoma is positive due to retention of the passive loss rule for working interest owners in oil and gas wells, according to Herbert P. Haschke Jr. partner-in-charge of tax services at Price Waterhouse's Tulsa office.

However, in other industries, many effects could be detrimental nationwide, including Oklahoma, he said.

"It will take a period of sorting out," he said in a telephone interview with The Journal Record from a Price Waterhouse briefing in Dallas on the bill expected to be signed into law by President Reagan.

Due to the retention for working interest owners in oil and gas wells, he said, "it's positive for Oklahoma compared to the U.S."

The oil and gas industry is one of the few excepted under the bill to retain such deductions. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.