OKLAHOMA CITY – Governor Fallin announced an agreement between her office and legislators Tuesday on state tax cuts, workers compensation reform and plans to repair the State Capitol.
Fallin said House Bill 2032 would cut the top income tax rate from 5.25 percent to 5 percent beginning in January of 2015.
If state revenue goals are met, that rate will lower again to 4.85 percent in 2016.
Fallin said the average taxpayer will save between $88 and $140 a year.
The 1-year delay in that tax cut taking effect will allow $120 million to be spent on Capitol repairs.
Fallin said the tax cut will attract businesses, create jobs and therefore increase state revenue for funding education and other programs.
“…Unlike our federal government and, frankly, many other states that are increasing their taxes, that Oklahoma is committed to a reduction in its income tax rate and to help us be more business friendly and certainly be more family friendly,” she said.
Fallin said previous tax cuts have resulted in 62,400 jobs being created in Oklahoma since 2011.
Workers’ compensation reform will involve moving from a court-based system to an administrative one.
Three commissioners appointed by the governor will hope to speed up claims processing and reduce fraud.
Fallin said the next order of business is crafting a new state budget.