News
Jun 05 2007
Sign tax credit disclosure bill, Henry urged
OKLAHOMA CITY -- A state senator called Monday for Gov. Brad Henry to sign into law a proposal to require disclosure of tax credits given to businesses, despite strong objections from the state chamber of commerce.
The Governor's Office said it is concerned about unintended consequences of the bill.
Sen. Randy Brogdon, R-Owasso, said he was "stunned to learn about the chamber's eleventh-hour objections."
In a letter sent to the governor, State Chamber president Richard P. Rush said the bill "does in fact go too far and will have a tremendously negative impact on our state's economy."
Brogdon said taxpayers have a fundamental right to know the names of businesses that are being granted exemptions to paying taxes.
Brogdon said he has the support of both the governor and state Treasurer Scott Meacham, who works closely with Henry on legislative affairs.
But Meacham said he was not aware the tax credits language was in the bill until after it passed. Meacham said he and the governor are supportive conceptually of the act that requires considerable disclosure of financial data to the public.
Meacham said those in the State Chamber and others in the economic development world are concerned with the tax credits language.
"Generally, our concerns are that it doesn't have a chilling effect," he said. The treasurer noted the governor could ask the Legislature to take a close look at the economic aspects of the bill.
During a bill-signing ceremony for unrelated legislation, Henry said he supported the concept of transparency in government, but is careful with any legislation to look at whether there would be unintended consequences.
Brogdon said his legislation was patterned after a law successfully passed in Congress by U.S. Sen. Tom Coburn, R-Okla.
Although members of Congress usually don't get involved in state policy debates, Coburn put out a statement Monday pushing for Brogdon's bill.
''Oklahomans should be concerned by attempts to resist transparency and openness in how their tax dollars are spent,'' Coburn said. ''Senate Bill 1 will give Oklahomans a powerful tool to hold their state elected officials accountable to ensure their tax dollars are spent in the most efficient and effective ways.
''The only reason to oppose transparency and openness in government would be if you have something to hide. I hope the governor will support transparency and openness in government and quickly sign state Senate Bill 1 into law.''
Brogdon said that if Senate Bill 1 had been law, the public would have known about special tax deals helping former lawmakers including Gene Stipe, Brogdon said.
During last year's legislative session, lawmakers clamped down on tax credits after it was revealed that undisclosed companies were provided millions of dollars in credits.
In a year's time, tax credits granted soared from $2 million to $66 million, while lawmakers discovered they were not getting information if jobs were being created.
The State Chamber is also concerned that information that the bill would open up for public scrutiny a myriad of information about individual taxpayers, said Mike Seney, senior vice president of operations.
This could include information regarding people getting energy assistance, restaurants receiving tax credits to pay for Hepatitis A vaccinations and names of spouses granted tax credits for staying at home.
State Tax Commission spokeswoman Paula Ross said no such information about individuals will be revealed.
Brogdon said the only difference will be that businesses getting the credits will no longer be exempted from disclosure.
The Governor's Office said it is concerned about unintended consequences of the bill.
Sen. Randy Brogdon, R-Owasso, said he was "stunned to learn about the chamber's eleventh-hour objections."
In a letter sent to the governor, State Chamber president Richard P. Rush said the bill "does in fact go too far and will have a tremendously negative impact on our state's economy."
Brogdon said taxpayers have a fundamental right to know the names of businesses that are being granted exemptions to paying taxes.
Brogdon said he has the support of both the governor and state Treasurer Scott Meacham, who works closely with Henry on legislative affairs.
But Meacham said he was not aware the tax credits language was in the bill until after it passed. Meacham said he and the governor are supportive conceptually of the act that requires considerable disclosure of financial data to the public.
Meacham said those in the State Chamber and others in the economic development world are concerned with the tax credits language.
"Generally, our concerns are that it doesn't have a chilling effect," he said. The treasurer noted the governor could ask the Legislature to take a close look at the economic aspects of the bill.
During a bill-signing ceremony for unrelated legislation, Henry said he supported the concept of transparency in government, but is careful with any legislation to look at whether there would be unintended consequences.
Brogdon said his legislation was patterned after a law successfully passed in Congress by U.S. Sen. Tom Coburn, R-Okla.
Although members of Congress usually don't get involved in state policy debates, Coburn put out a statement Monday pushing for Brogdon's bill.
''Oklahomans should be concerned by attempts to resist transparency and openness in how their tax dollars are spent,'' Coburn said. ''Senate Bill 1 will give Oklahomans a powerful tool to hold their state elected officials accountable to ensure their tax dollars are spent in the most efficient and effective ways.
''The only reason to oppose transparency and openness in government would be if you have something to hide. I hope the governor will support transparency and openness in government and quickly sign state Senate Bill 1 into law.''
Brogdon said that if Senate Bill 1 had been law, the public would have known about special tax deals helping former lawmakers including Gene Stipe, Brogdon said.
During last year's legislative session, lawmakers clamped down on tax credits after it was revealed that undisclosed companies were provided millions of dollars in credits.
In a year's time, tax credits granted soared from $2 million to $66 million, while lawmakers discovered they were not getting information if jobs were being created.
The State Chamber is also concerned that information that the bill would open up for public scrutiny a myriad of information about individual taxpayers, said Mike Seney, senior vice president of operations.
This could include information regarding people getting energy assistance, restaurants receiving tax credits to pay for Hepatitis A vaccinations and names of spouses granted tax credits for staying at home.
State Tax Commission spokeswoman Paula Ross said no such information about individuals will be revealed.
Brogdon said the only difference will be that businesses getting the credits will no longer be exempted from disclosure.
