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Aligning Oklahoma's Tax Code with Our 21St Century Economy

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Aligning Oklahoma's Tax Code with Our 21St Century Economy Building Awareness, Developing Policies, Inspiring Oklahomans to Move Ideas Into Action! Aligning Oklahoma’s Tax Code with Our 21st Century Economy Equity, adequacy, simplicity, transparency, and administrative ease The 2018 Oklahoma Academy Town Hall November 11–14, River Spirit Conference Center, Tulsa The Oklahoma Academy is a statewide nonprofit, nonpartisan, membership organiza- tion founded by Governor Henry Bellmon to bring public attention to policy issues, provide objective, thorough research and act as a catalyst for positive change. After his first term as governor, Bellmon knew there was a need for open, nonpartisan dialogue in the young state. He sought to create a public policy organization that was independent, nonpartisan and inclusive. The purpose of which was to provide citizens the opportunity to participate in a truly democratic process designed to shape the future of Oklahoma. To this day, The Oklahoma Academy upholds Bellmon’s vision and the organization’s long-standing reputation as the state’s premier citizen-based organiza- tion for nonpartisan public policy development. From its inception in 1967 to its revitalization in 1985 to its adoption of the Town Hall process in 2001, The Oklahoma Academy has maintained its relevance in raising awareness and shaping public policy in Oklahoma. Despite its small staff and limited resources, The Oklahoma Academy generates and manages an impressive amount of public policy information, engages the citizens of Oklahoma in discussing and devel- oping policy recommendations and works ardently with the community leaders and policymakers to implement the resulting ideas through community and legislative ac- tion. To date more than 53 pieces of legislation passed since the adoption of the Town Hall process in 2001. The Academy Process identifies areas of need and problems facing Oklahoma, con- ducts research on identified critical issues, and develops long range goals, consensus recommendations, and agendas for action. Through the Town Hall conference process, citizens are given the opportunity to honestly and openly discuss the issues, determine the solutions, and collaborate to develop public policies that they believe will achieve the greatest good. Then, the attendees are empowered to lobby their legislators and other policy makers about the proposed policies. The Academy has covered a wide range of topics, including education, small business development, government structure, crime, technology and the future, and the state’s constitution. Building Awareness, Developing Policies, Inspiring Oklahomans to Move Ideas Into Action! The Oklahoma Academy, P.O. Box 968, Norman, OK 73070 (405) 307-0986 (phone) 844.270.4690 (fax) Email: [email protected] www.okacademy.org © The Oklahoma Academy for State Goals I Dear Town Hall Member Participant: The 2018 Town Hall focus on Aligning Oklahoma’s 111 year-old tax code with our 21st century economy is very timely. It is a serious opportunity to make thoughtful and significant change to this code to modernize it so that it combines equity, adequacy, simplicity, transparency, and administrative ease. Our current tax code is an amalgamation of individual legislative actions over the past 111 years which has left it hardly strategic in nature and rarely, if ever, tied to a consensus, long-term vision of where the state is headed. By accepting your invitation to participate, you have promised to be prepared. This resource book has been developed to help you do that. It is important that you read the document. With this topic espe- cially, if you have not read the document, you will not be prepared, and you will stifle your group’s Julie Knutson discussion. You have also accepted the responsibility to represent others in your geographic, demo- President and CEO graphic, and vocational area as you discuss and deliberate the discussion questions at Town Hall. It is critical to be prepared. The success of any Town Hall is dependent upon the preparedness of its participants. As a Town Hall member your voice can be heard, should you choose it to be. Your Assignment and Role… Take advantage of your unique opportunity. Be prepared. Listen actively, share your thoughts and ideas, and importantly, learn. The work of the Town Hall is much easier, more satisfying, better done, and more fun to those who have prepared themselves appropriately for the discussions. While there are some plenary session speakers who share information with us during the Town Hall, the real speaker and developer of what comes out of a Town Hall is YOU. The better prepared you are, the richer the discus- sions and the better the consensus recommendations and solutions. So, I say again, Be Prepared! Many thanks to our two Town Hall Co-Chairs, Dan Boren and Darryl Schmidt. They have collaboratively participated in the work of the research committee in developing the details and specifics of this Town Hall. Huge thanks to Howard Barnett, Town Hall Planning Committee Chair, and to the Town Hall Planning Committee members. And, many thanks to Craig Knutson, Research Committee Chair, along with Research Committee members Mark Snead and Mark Kinders. Throughout late spring, summer and early fall, we held community and organization “listening sessions” on the topic of Oklaho- ma’s Tax Code. By “listening session,” I mean gatherings where we have sought information from people about how much they know and don’t know on our tax code. We have responses from more than 300 Oklahomans across the state. The information they shared with us has been processed and will be provided to you as a Town Hall participant in advance of the Town Hall. Recognition also needs to be given to: new staff member, Lynn Thompson, Communications & Development Director, for the design and production of the Background Resource Document; to Michael Gordon, Board member and Membership VP for his work in setting up many and leading several of the listening sessions; to Academy Board Members Dan Schiedel, Sandy Wash- mon, Rachel Hutchings, and Member Harolynn Wofford for arranging listening sessions in their respective regions, and to Togeth- er Oklahoma members Sabine Brown, Conner Hess, and Tori Moore for assisting us in setting up three special listening sessions. Special recognition to Roberta Botello, Dr. Tracy Morris and student with the University of Central Oklahoma for their work in scoring the information provided from the listening sessions. And, recognition needs to be given to our other new staff member Lauren Williams, Membership & Programs Manager, for her work in maintaining good contact with those interested in participat- ing or observing this Town Hall and working with the Town Hall facility to ensure all is set up properly. Enjoy your Town Hall! II © The Oklahoma Academy for State Goals 2018 Town Hall Leadership Dan Boren, Town Hall Co-Chair Darryl Schmidt, Town Hall Co-Chair Dear Town Hall Member Participant: Oklahoma had had a rich history as a populist state, and Oklahomans have been skeptical of the tax code coming from policymakers at the state capitol. We have relied upon a state income tax, and have also received revenue from the energy industry, or exclusivity fee payments from Native American tribes. In addition, we have further complicated our revenue streams by adding tax credits for various industries and causes while placing exemptions from others where we saw a need. As our economy has diversified and changed over the years, our tax code has not kept pace with these systemic changes. We have seen structural deficits at the State Capitol and some would argue that has occurred because of an over-reliance on cyclical industries for revenue or that we have not looked at broadening the base or reducing exemptions. Much has changed in Oklahoma in the 111 years that have passed since statehood…but not so much our fundamental tax system. These and other factors lead us to come together for this Town Hall to find common sense and reasonable reforms to pro- vide sustained revenues while also creating an environment where businesses can grow and compete in a global economy. The goal of the Town Hall is to develop specific consensus recommendations to modernize Oklahoma’s tax code into one that is more balanced; one that would reduce volatility and the structural imbalances, while improving revenue reliability and sufficiency, so that core governmental services can be funded at appropriate levels annually. This is our task. We are glad you are with us to accept this challenge! Hon. Dan Boren Darryl Schmidt President, Corporate Development President and Chief Executive Officer Chickasaw Nation Department of Commerce BancFirst Oklahoma City Oklahoma City © The Oklahoma Academy for State Goals III Thoughts from our Town Hall Planning Committee Chair... I have had the privilege of chairing several Town Halls – and this year I am chairing the plan- ning committee which was an included function for those other Town Halls – and so I can safely say that this Town Hall is going to be a difficult one. While we all pay taxes and most of us pay a number of different taxes to a number of different taxing authorities, we are not required to necessarily understand all of the policy choices that were made by those authorities in deciding what to tax and how much to tax. This Town Hall will require you to do some of that. Over the last few years we have seen that our state’s current “business model” (meaning, for this purpose, the way we raise and spend money as a state) is, if not broken, certainly in need of some work. The other introductory pieces to this Resource Document give you a little flavor for the issues you will face in this Town Hall. Let me just add that we do not expect you to solve all of our “business model” issues.
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