Wednesday, March 09, 2011
OKLAHOMA IS NOT A HIGH TAX STATE
No matter what one may hear through the dominant news media of the state, Oklahoma is NOT a high tax state. It is likely that it was never a high tax state, not in recent decades anyway, and that it has always been a state that relied on its natural resources to fill in a gap between what people are willing to pay in taxes and what they are willing to see spent by the state.
We might add that Oklahoma is not a high spending state either. While Oklahoma is just low-average in its per capita income, it is further below average in its taxes and expenditures.
The Tax Foundation has produced an authoritative report on comparative taxes and expenditures among the states of the union. The figures accessible to this observer are factual only, and without analysis or interpretation. The information about Oklahoma is intertwined with that of other states, and it must first be extracted, and then analyzed as to meaning. (The Tax Foundation report may be found at http://taxfoundation.org/publications/show/2181html for those interested.)
The following information spread shows Oklahoma’s ranking in key areas. A brief analysis of this data follows. Readers may make further interpretations of their own, by examining some of the seeming ambiguities in the original data itself. Careful attention must be paid to differentiating state from state plus local.
TAX FOUNDATION: OKLAHOMA COMPARISONS
2009 State per capita income $37,464 Rank 33
2009 Oklahoma State and local tax burden per capita $3259 Rank 37
Per capita tax burden as a percentage of income 8.7% Rank 37
(Roughly one-fourth below national average on each.)
2009 State Tax collections per capita $2,226 Rank 31
2009 State Revenue per capita $5,092 Rank 22
2008 Oklahoma Revenue by source
Property 17% Sales 29.3% Indiv. Income 22.6% Corporate 2.9% Other 28%
Personal Income tax rates Oklahoma 5.5% (all levels above $8700)
Rankings ----- High for lower income levels (Most states have
Low for higher income levels brackets)
2008 Oklahoma corporate income tax per capita $99 Rank 40
2011 Oklahoma state sales tax rate 4.5% Rank 36
Local sales tax rates 3.83% Rank 7
2009 State sales tax collections per capita $590 Rank 36
State plus local sales taxes per capita $996 Rank 22
2011 Oklahoma Gasoline tax rates per gallon $0.17 Rank 46
2010 Oklahoma Alcohol tax per gallon $5.56 Rank 21
2011 Beer tax per gallon 0.40 Rank 12
2010 Cell phone tax 10.74% Rank 17
2009 Owner Occupied property Eff. Rate 0.74% Rank 32
2008 Property tax collections per capita $582 Rank 47
2009 State debt per capita $2689 Rank 32
2008 State and local debt per capita $4670 Rank 46
2009 State per capita income $37,464 Rank 33
Source: The Tax Foundation: How Does Your State Compare?
Presented under the auspices of the Oklahoma Retired College Presidents’ Council
Dr. Edwin E. Vineyard, Exec. Secy.
HOW OKLHOMA TAXES COMPARE WITH OTHER STATES
(A SUMMARIZATION OF FIGURES FROM THE TAX FOUNDATION REPORT)
Oklahoma per capita income is low average (33). This is not a poor state.
Oklahoma’s state and local per capital tax burden is low (37). Oklahoma’s per capital burden as a percentage of income is low (37). The people of this state are under-taxed in comparison with others.
State tax collections per capita are low average (31). State revenue per capita is high (22). This means that there is other revenue entering the stream.
Oklahoma income tax rates are high for lower income people and low for higher income people, making the income tax burden below average. This is due to lack of a graduated bracket system. Correction is needed.
Oklahoma’s corporate income tax per capita is very low (40), due to fewer or smaller corporations, lower corporate taxes, or exemptions – perhaps all these.
Oklahoma’s state sales tax rate is low (36), but its combination of state and local sales taxes rank high (7). Locally voted sales tax rates are very high, but the state rate is actually low. Per capita income from the sales tax is low for the state, and average for the local governments. Rate vs. income disparity, lower income from higher rates, suggest poor sales or too many exemptions.
The Oklahoma gasoline tax rate is close to the bottom (46). This means highway users are not paying a fair share, and revenues that should be servicing other needs are being put into the hopper for highways and bridges. Correction is needed.
Oklahoma’s alcohol tax per gallon is average, and its tax rates on beer are high. The cell phone tax rate is high.
The effective rate for owner occupied property is low average (32). Property tax collections per capita are close to the bottom (47). The rates vs. collections disparity suggests tax breaks for commercial and industrial property, or perhaps an unusually poor quality level of property occupied. Study is needed.
State debt per capita is low average (32). State and local debt per capita is very high (46). This suggests a study of local debt is needed.
We might add that Oklahoma is not a high spending state either. While Oklahoma is just low-average in its per capita income, it is further below average in its taxes and expenditures.
The Tax Foundation has produced an authoritative report on comparative taxes and expenditures among the states of the union. The figures accessible to this observer are factual only, and without analysis or interpretation. The information about Oklahoma is intertwined with that of other states, and it must first be extracted, and then analyzed as to meaning. (The Tax Foundation report may be found at http://taxfoundation.org/publications/show/2181html for those interested.)
The following information spread shows Oklahoma’s ranking in key areas. A brief analysis of this data follows. Readers may make further interpretations of their own, by examining some of the seeming ambiguities in the original data itself. Careful attention must be paid to differentiating state from state plus local.
TAX FOUNDATION: OKLAHOMA COMPARISONS
2009 State per capita income $37,464 Rank 33
2009 Oklahoma State and local tax burden per capita $3259 Rank 37
Per capita tax burden as a percentage of income 8.7% Rank 37
(Roughly one-fourth below national average on each.)
2009 State Tax collections per capita $2,226 Rank 31
2009 State Revenue per capita $5,092 Rank 22
2008 Oklahoma Revenue by source
Property 17% Sales 29.3% Indiv. Income 22.6% Corporate 2.9% Other 28%
Personal Income tax rates Oklahoma 5.5% (all levels above $8700)
Rankings ----- High for lower income levels (Most states have
Low for higher income levels brackets)
2008 Oklahoma corporate income tax per capita $99 Rank 40
2011 Oklahoma state sales tax rate 4.5% Rank 36
Local sales tax rates 3.83% Rank 7
2009 State sales tax collections per capita $590 Rank 36
State plus local sales taxes per capita $996 Rank 22
2011 Oklahoma Gasoline tax rates per gallon $0.17 Rank 46
2010 Oklahoma Alcohol tax per gallon $5.56 Rank 21
2011 Beer tax per gallon 0.40 Rank 12
2010 Cell phone tax 10.74% Rank 17
2009 Owner Occupied property Eff. Rate 0.74% Rank 32
2008 Property tax collections per capita $582 Rank 47
2009 State debt per capita $2689 Rank 32
2008 State and local debt per capita $4670 Rank 46
2009 State per capita income $37,464 Rank 33
Source: The Tax Foundation: How Does Your State Compare?
Presented under the auspices of the Oklahoma Retired College Presidents’ Council
Dr. Edwin E. Vineyard, Exec. Secy.
HOW OKLHOMA TAXES COMPARE WITH OTHER STATES
(A SUMMARIZATION OF FIGURES FROM THE TAX FOUNDATION REPORT)
Oklahoma per capita income is low average (33). This is not a poor state.
Oklahoma’s state and local per capital tax burden is low (37). Oklahoma’s per capital burden as a percentage of income is low (37). The people of this state are under-taxed in comparison with others.
State tax collections per capita are low average (31). State revenue per capita is high (22). This means that there is other revenue entering the stream.
Oklahoma income tax rates are high for lower income people and low for higher income people, making the income tax burden below average. This is due to lack of a graduated bracket system. Correction is needed.
Oklahoma’s corporate income tax per capita is very low (40), due to fewer or smaller corporations, lower corporate taxes, or exemptions – perhaps all these.
Oklahoma’s state sales tax rate is low (36), but its combination of state and local sales taxes rank high (7). Locally voted sales tax rates are very high, but the state rate is actually low. Per capita income from the sales tax is low for the state, and average for the local governments. Rate vs. income disparity, lower income from higher rates, suggest poor sales or too many exemptions.
The Oklahoma gasoline tax rate is close to the bottom (46). This means highway users are not paying a fair share, and revenues that should be servicing other needs are being put into the hopper for highways and bridges. Correction is needed.
Oklahoma’s alcohol tax per gallon is average, and its tax rates on beer are high. The cell phone tax rate is high.
The effective rate for owner occupied property is low average (32). Property tax collections per capita are close to the bottom (47). The rates vs. collections disparity suggests tax breaks for commercial and industrial property, or perhaps an unusually poor quality level of property occupied. Study is needed.
State debt per capita is low average (32). State and local debt per capita is very high (46). This suggests a study of local debt is needed.
