Fallin: raise taxes on gas, cigarettes

When the Legislature goes into session, Gov. Mary Fallin will repeat her insistence that lawmakers pass massive and permanent tax increases.

The governor’s amended call asks lawmakers to pass:

  • The tax on cigarettes, and little cigars by $1.50 per pack, and an additional 10 percent on chewing tobacco and e-cigarettes;
  • Increasing the oil and gas gross production tax by increasing the rate on wells currently at 2 percent to 4 percent, and all future wells will begin at 4 percent for 36 months and move to 7 percent thereafter;
  • Raising a renewable generation tax at $1 per MWH;
  • Increasing the tax on diesel and gasoline to Oklahoma motorists by 6 cents per gallon;
  • Imposing a dollar cap on transferability/cash refundability for coal, wind and railroad tax credits effective the 2018 tax year;
  • Expanding the definition of covered games in the model tribal gaming compact to include “non-house-banked table games;” and;
  • Hiking the rates and eliminating exemptions, deductions and credits on the individual income tax code.
  • Fallin also is calling for a $5,000 a year raise for all state teachers and an expanded role for the governor in selecting state agency heads.

Her stated policies mirror Step Up Oklahoma, a tax increase strategy supported by state chambers of commerce.

The 2018 legislative session begins on February 5.