Oklahoma City (April 10, 2018) – The State Chamber of Oklahoma reaffirmed its opposition to SB 1086 today, citing major concerns with how it would impact its members.
“Eliminating the capital gains exemption is not a reliable way to fund core services of government and it will make Oklahoma less competitive economically for capital investment. For this very reason, the Incentive Evaluation Commission rejected a recommendation to eliminate this deduction,” said State Chamber President and CEO, Fred Morgan. “We have also heard numerous concerns from our members about how this would impact family-owned farms, small businesses and regular Oklahomans.”
Many State Chamber members oppose SB 1086 and some of their concerns are stated below:
“Oklahoma Farm Bureau has always and continues to support education, but placing the burden of funding our state’s schools on the backs of family farmers and ranchers is concerning, especially with farm income at a 12-year low,” said Rodd Moesel, Oklahoma Farm Bureau President. “Farming and ranching is a capital-intensive business, as growing food and fiber requires a large amount of capital including land and equipment. Eliminating the state capital gains tax deduction could threaten many of our state’s family farms and ranches by forcing them to pay an additional tax on the sale of property they’ve worked hard for.”
“Investing in real estate is the best way for families to create wealth,” said Oklahoma Association of Realtors President, Kathy Fowler. “Reinstating the capital gains tax will hurt opportunities for Oklahomans to invest in their future.”
“Oklahoma’s family cattle ranchers are subject to capital gains tax when they sell breeding cattle. Many families market breeding cattle providing value added livestock to fellow cattle ranchers while supporting their own families,” said Oklahoma Cattlemen’s Association Executive Vice President, Michael Kelsey. “Loss of the deduction as proposed by SB 1086 would be detrimental to these families.”
“As entrepreneurs build their small businesses, they create value for customers, jobs for Oklahomans and pay taxes along the way,” said NFIB State Director, Jerrod Shouse. “If the capital gains tax exemption is repealed, it will punish families and entrepreneurs for their hard work, investment and innovation. The National Federation of Independent Businesses realizes the importance of the capital gains tax exemption for small businesses and Oklahoma families.”
“Income from mineral interests are often a significant source of revenues for Oklahoma's family farmers and ranchers, as well as many royalty owners on fixed income. Many times, elderly mineral owners are forced to sell some or all of their mineral interests to provide for their long-term care or to cover medical expenses,” said Terry Stowers, Executive Director, Coalition of Oklahoma Surface and Mineral Owners (COSMO). “Adding another 5% tax on those mineral sales by eliminating the Oklahoma Capital Gains exclusion could have a negative impact on mineral owners relying upon these sales as part of their safety net for retirement or long-term care, especially those that just had their royalties reduced by 3% as a result of the increase in the gross production tax."
“If we want Oklahoma to have a sustainable economy, then we need to use every tool to help businesses and entrepreneurs succeed,” said Oklahoma State Home Builders Association Executive Vice President, Mike Means. “The capital gains deduction is a great resource that fosters investment in our state. We cannot hurt those who continue to pull our economy along.”
“American Farmers & Ranchers strongly supports public education and we were proponents of the historic compromise in HB 1010XX and the resulting funding increases for Oklahoma schools, teachers and state employees,” said American Farmers and Ranchers President, Terry Detrick. “The elimination of the capital gains deduction as proposed in SB 1086 runs contrary to the grassroots policy adopted by our members and would have a negative effect on small businesses and rural families. We believe SB 1086 would be bad tax policy for Oklahoma and ask the legislature to retain this deduction.”
To view videos detailing specific reasons certain members oppose, please click here: