The Duncan Banner

Opinion

December 8, 2013

Fiscal impact of state question 766 for counties, schools, and career technology centers

DUNCAN — On November 12, 2012, S.Q. 766 was on a ballot and went to the vote of the people to eliminate tax assessments on intangible personal property. What you might not know is that prior to the vote of S.Q. 766, legislation was already in place to prevent any NEW tax assessments on intangible personal property. At the time S.Q. 766 was being considered, the Oklahoma Tax Commission released a fiscal impact statement which estimated that the governmental entities supported by ad valorem (property tax) revenues would lose $50 million if S.Q. 766 passed. Some examples of intangible property taxes are:

Patents, inventions, formulas, designs, and trade secrets

Licenses, franchise, and contracts

Land leases, mineral interests, and insurance policies

Custom computer software, and trademarks, trade names, and brand names

S.Q. 766 passed because voters decided that it would be best to do away with intangible personal property tax altogether. We now have current information provided by the Oklahoma Tax Commission on the actual financial impact of this vote.

According to the Oklahoma Tax Commission, 90 of the approximately 250 public service companies that now qualify for the tax exemption created by S.Q. 766 took advantage of the tax break this year; at a cost of $60 million to counties, school districts, and career technology centers.

School districts receive 65% of all centrally assessed property taxes. What this means for schools in Oklahoma is that of the $60 million lost, districts will annually lose $30,777,600 of existing revenue. Of the $60 million lost, local taxpayers will annually pay an additional $9,002,400 to the sinking fund of local school districts. This statewide revenue reduction does not impact the amount of money available to the legislature for state appropriations because ad valorem revenue is used to directly support the work of counties, school districts and career technology center.

S.Q. 766 deprived counties, schools, and career technology centers of $60 million this year. One large corporation alone received a $23 million tax break because of S.Q. 766. Given that level of tax savings, the logical expectation is that more and more eligible corporations will take advantage of this new state created tax break. Should more corporations, especially large ones, exercise this particular tax break, it will lead to fewer county generated taxpayer dollars dedicated to support county government, school districts, and career technology centers. Information provided by the Oklahoma Tax Commission suggests that counties, school districts, and career technology centers could be financially impacted in excess of $100 million annually over the next few years.

Anytime, revenue sources for counties, school districts, and career technology centers are diminished, it is cause for concern. The question that school leaders always ask is, “If we do away with a funding source, what will replace it?” I am still waiting on the answer.

Sherry Labyer,

Duncan Superintendent

580-255-0686,

sherry.labyer@duncanps.org

1
Text Only
Opinion
  • Modern version of ‘Telephone’ hangs up on the truth

    Couple weeks ago, I stopped at a popular morning spot to get a caffeine infusion and encountered a meeting of a chapter of the Coffee Club Geniuses of America.

    July 20, 2014

  • taylor.armerding.jpg Zamperini, the Olympian and POW, was a hero because of his faith

    Louis Zamperini collected many accolades as an Olympic distance runner and brave bombardier who spent a month adrift at sea and two years in a Japanese prisoner of war camp. But faith and forgiveness are what truly distinguished him.

    July 18, 2014 1 Photo

  • Sheriff's helicopter could be put to good use in water crisis

    A story the other day in which Stephens County Sheriff Wayne McKinney explained the advantages of having a helicopter gave me a chuckle.

    July 15, 2014

  • Technoman offers help on combating viruses

    Good day, Earthlings and others inhabiting the third rock from the Sun. Once again, 21st Century Technoman has dropped in to see what condition your condition is in. So, how are you surviving in cyberspace?

    July 15, 2014

  • Territory impressive as well

    For the next seven days, the world of golf will focus on Edmond, Oklahoma in general and Oak Tree National in particular as the revitalized club and course hosts the prestigious 2014 U.S. Senior Open.

    July 6, 2014

  • Our division is not as dire as some insist

    Am having an Independence Day hangover — and no, it’s not because of any libation I may have consumed during the holiday weekend.

    July 6, 2014

  • Election shared few surprises

    There were no significant surprises or huge upsets in last Tuesday’s election,  but there were some twists and turns of interest locally and statewide.

    June 29, 2014

  • Other voices talk about us and our nation

    It’s almost Independence Day and I could wind philosophic and poetic about this country I love and into which I was lucky to have been randomly spawned.

    June 29, 2014

  • Technoman is relishing art of daydreaming

    Friends and neighbors, greetings again from 21st Century Technoman, and please forgive me if it seems I’ve been ignoring those of you who need a little human contact in their otherwise techno-dependent lives.

    June 22, 2014

  • However dubious, Cooter is a famous American

    His name is indelibly etched in the American experience. For generations, his reputation has crossed political, social, ethnic and regional lines.

    June 15, 2014

Poll

Should the date for The World's Largest Garage Sale be changed from the third weekend in July to sometime in October to take advantage of cooler weather like we had this past weekend?

No. It's better in the summer cause kids are out of school.
Yes. More shoppers would come during nice fall weather.
Either time is fine.

     View Results
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.