Breakdown On How Tax Cut Impacts Most Oklahomans
OKLAHOMA CITY - It's official. Most Oklahomans will be getting a tax cut this year. Governor Mary Fallin signed it into law Monday. The tax rate will fall from 5.25% to 4.85% over several years if the state meets certain revenue triggers.
Aaron Head knew that a tax cut could be brewing but that's about it.
"I just know that it exists, I don't know anything about it," he said.
But according to the Governor's office, Aaron and his wife who are both students and work full time would qualify for the tax break. So will 1,726,000 other Oklahomans. It will apply to all individuals who earn more than $8,700 a year, and couples who make more than $15,000.
If the state's general revenue collections are more in 2016 then in 2014 the tax rate will fall to 5% in 2016. And then if revenue continues to grow, the tax rate will eventually be reduced to 4.85%. By the time it's all done, the average return will show a $158 reduction.
"That doesn't even seem like a significant amount really," said Head. "That doesn't really change anything $158 dollars doesn't make a difference in my yearly budget."
Aaron's wife however agrees with Governor Fallin who says the money would provide much needed tax relief to working families.
"Money is money, I'll take it," said Lena Head. "It sounds good."