State Chamber weighs in on oil and gas tax

Mark C. Snead, left, economist and President of RegionTrack, Inc., an Oklahoma City-based economic research firm, speaks as Fred Morgan, State Chamber of Oklahoma President and CEO, listens at right, during a news conference in Oklahoma City, Tuesday, Jan. 14, 2014. (AP Photo/Sue Ogrocki) Image by AP

State Chamber weighs in on oil and gas tax

CREATED Jan 14, 2014

OKLAHOMA CITY (AP) An association that represents some of Oklahoma's largest businesses and industries weighed in on the state's tax policy concerning the oil and gas industry in Oklahoma.

An economic researcher hired by the State Chamber released a study Tuesday on oil and gas tax policies.

A key issue for lawmakers in the upcoming legislative session is a generous tax incentive the state offers for horizontal drilling that drops the tax rate from 7 percent to 1 percent for the first 48 months of production. Because horizontal drilling has become the norm, the incentive is costing the state hundreds of millions of dollars in tax revenue each year.

The incentive is set to expire in 2015.

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