Fallin says cigarettes, services likely targets for taxes to close budget deficit

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Mary Fallin

OKLAHOMA CITY – Gov. Mary Fallin says cigarettes and some services like tattoos and car washes that currently are exempt from sales taxes are some of the likely targets for new taxes as state leaders look to close an estimated $868 million hole in next year’s budget.

Fallin said Wednesday that modernizing Oklahoma’s tax code to reflect a more service-based economy will be one of the ways she hopes to help ease cuts to state agencies next year.

The governor made the comments after the State Board of Equalization met to certify that the Legislature will have about $6 billion to spend on the fiscal year that begins July 1.

Fallin will use that figure to create her executive budget that will be released to lawmakers when the legislative session begins in February.