With President Bush and the U.S. Congress working to pass a bipartisan economic stimulus package, State Sen. Don Barrington wants to ensure that the federal tax rebates included in the package are exempt from state income taxes.
“If the State of Oklahoma taxes these federal rebates, it will diminish the impact of the stimulus package on our state’s economy,” Barrington said. “It is imperative that the Legislature takes action this session to make sure Oklahomans don’t have to fork over part of their federal rebate to the state government.”
Barrington, R-Lawton, plans to add the proposal as an amendment to SB 1149, his legislation to expand the state sales tax holiday to include school supplies.
The Legislature took similar action when Congress passed a stimulus package in 2001 that included tax rebates.
Barrington believes his proposal will receive bipartisan support, and will ask the Senate leadership to grant his bill a hearing as quickly as possible after it is assigned to a committee.
The 2008 legislative session convenes on Monday, February 4.