Legislator works to repeal tax on businesses
OKLAHOMA CITY—A measure that would do away with a tax for local businesses passed the House Revenue and Taxation Committee Monday.
House Bill 1716 would eliminate the business franchise tax.
Currently, according to Rep. Leslie Osborn, businesses in Oklahoma are double taxed with the state corporate tax and the state franchise tax.
“Taxing our businesses for no other purpose that conducting business is both immoral and illogical,” said Rep. Osborn, (R) Mustang. “The state is essentially creating a barrier to entry for startup companies and restricting the ability of established companies to expand and create more jobs. The path to economic growth begins by simplifying the tax code for job creators, and I think the repeal of the prohibitive franchise tax is a good place to start.”
According to the Oklahoma Tax Commission website, corporations that do business in the state are levied an annual tax of $1.25 for every $1,000 of “capital invested or used in Oklahoma.”
The state levies the same tax plus an additional $100 annually on out-of-state corporations that do business in Oklahoma.
HB 1716 now heads to the House Calendar Committee for approval.