FOR IMMEDIATE RELEASE April 10, 2018
Governor Mary Fallin Signs Legislation Repealing Hotel/Motel Tax
Measures to make up revenue from proposed tax also signed into law
OKLAHOMA CITY – Governor Mary Fallin today signed House Bill (HB) 1012XX,
which repeals a $5 tax on hotel and motel rooms, and two other bills that are
estimated to replace the revenue to help fund teacher pay raises and increased
education funding.
Fallin signed HB 3375, which allows tribal casinos to use traditional
roulette and dice games, which were specifically prohibited since a 2004 vote
of the people. Exclusivity fees generated by the change will put substantial additional dollars into education.
The governor also signed HB 1019XX, which will require third-party online
retailers to collect and remit sales tax back to state coffers. It will affect
purchases made through sites like Amazon, when the seller is someone other than
Amazon. It is estimated to bring in about $20.5 million for public schools.
The House of Representatives and Senate voted to repeal the hotel-motel tax,
which was included in a larger revenue package, HB 1010XX. That bill raised a
variety of revenue to pay for an average $6,100 teacher pay raise – the largest
teacher pay increase in state history – and added $50 million in new revenue
for textbooks and school supplies.
“The revenue package that funded the teacher pay raises would not have
passed the Senate with the required super majority, or three-fourths support,
had a bipartisan agreement not been struck to repeal the hotel/motel tax,”
Fallin said.
The governor and the Legislature have worked diligently to pass historic
funding measures for K-12 public education.
Fallin last
month signed HB 1010XX, part of an historic revenue package
to fund pay raises for teachers. The package allows for a $6,100, or 16
percent, pay raise on average for Oklahoma teachers. It moves Oklahoma’s
teacher pay up from the lowest, in average teacher pay, to second in the
seven-state region and up to 29th from 49th nationally.
Oklahoma’s teacher-pay ranking improves to 12th in the nation when
adjusted for cost of living.
Last week, the governor signed the $2.9 billion
appropriation bill for common education for the upcoming 2019 fiscal year. The
funding marks the largest amount ever appropriated in Oklahoma for K-12 public
education and a 19.7 percent increase over the $2.4 billion appropriation bill
for the current fiscal year, which ends June 30.
The $2.9 billion education funding
contained in HB 3705 includes an additional $353.5 million for teacher pay; $52
million for support personnel pay: $33 million for textbooks: $17 million for
the state aid formula; and $24.7 million for flex health care benefits.
“This shows again that education is
a priority with legislative leaders and me,” said Fallin. “The single-most
important thing we can do to help Oklahomans have fulfilling and productive lives
is improving the quality and outcomes of education.”
Fallin said today’s action should
complete funding K-12 public schools for the 2019 fiscal year. She encouraged
legislators to turn attention now on other issues, such as criminal justice,
and address the financial needs of other core services, such as public safety
and health and human services, in finishing work on the 2019 fiscal year
budget.
The governor made it clear she supports
the voters’ decision in a 2004 statewide election of encouraging investment in
Oklahoma through the capital gains tax deduction.
The
capital gains tax deduction, which was a tax reform measure approved in a
statewide vote in 2004, is an exemption from capital gains taxes for property and
business located in the state of Oklahoma. The idea was to increase the
incentive for people to invest in Oklahoma, and to put Oklahoma properties and
businesses on an equal footing with other states.
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Governor Mary Fallin signs legislation Tuesday that generates additional dollars for K-12 public education.
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