Lawsuit Looks To Upset State’s Budget, Tax Policy
Suits threaten to nullify Oklahoma tax legislation
By TIM TALLEY, Associated Press
OKLAHOMA CITY (AP) — Legal challenges that threaten to nullify two tax laws that were among the 2014 Oklahoma Legislature’s major accomplishments will have little impact on the state budget that goes into effect Tuesday, state fiscal analysts said Friday.
But organizations that represent Oklahoma oil and natural gas producers said the industry that historically fuels the state economy could be harmed if a law adjusting Oklahoma’s tax on oil and gas production is ruled unconstitutional.
“It gave tax certainty to oil and gas producers while they plan their budget,” said Cody Bannister, vice president of communications for the 2,700-member Oklahoma Independent Petroleum Association. A prolonged legal battle or a court ruling that would force the Legislature to revisit the issue next year “has the potential to jeopardize some drilling budgets in Oklahoma,” Bannister said.
State budget writers have already made minor adjustments in the upcoming budget year following an Oklahoma Attorney General’s Office opinion that invalidated the legislative diversion of about $7.9 million from a program that provides free college tuition to thousands of students from low-income families.