Oklahoma Senate approves series of tax credit proposals

Journal Record, The (Oklahoma City), Apr 18, 2007 by Jeff Packham

Business and tax credits walked hand-in-hand through the Senate as several legislative giveaways advanced Tuesday, including one measure providing a one-time sales tax rebate for a hotel in the Adventure District in northeast Oklahoma City.

State Sen. Richard Lerblance, D-Hartshorne, said House Bill 2019 would allow Magna Corp. to contract out the building of a hotel on land near Remington Park. Lerblance estimated that the one-time rebate would cost $325,000, and would provide a first-class facility for a growing area that includes several entertainment venues.

"This is not designed particularly for the racetrack," Lerblance said. "It is for the area."

Co-Floor Leader Owen Laughlin, R-Woodward, said the parent company of Remington Park had plenty of money available to build a hotel without using public money, but Lerblance countered that nobody had questioned Chesapeake Energy's revenues when they received tax credits in the past.

State Sen. Clark Jolley, R-Edmond, said he had a problem with one particular segment being hand-selected to receive the credit, and he said there were plenty of hotels in Bricktown, downtown, and even some close to the Adventure District.

"The market is what should drive this," Jolley said. "I do not think this is a wise path for us to follow."

Bricktown was a perfect example of the economic development that takes place when public money is used for private investment, state Sen. Jay Paul Gumm, D-Durant, said in debate. He said this was an opportunity to see a segment of the state grow and provide a return.

"We're not asking for anything nearly as Draconian for north Oklahoma City," Gumm said. "It's investing a little bit of money to get a whole lot more down the road."

The bill passed 27-19 and will now advance to the House.

Another measure approved after some debate was House Bill 1387, which provides for sales tax exemptions for purchases of wind and solar energy systems.

Jolley said the bill would give away taxpayer money for projects that wouldn't save people money. He said it would lead to a 20- percent reduction in energy costs for a $50,000 investment, which he said was not enough to pursue such a tax exemption.

State Sen. Andrew Rice, D-Oklahoma City, defended the measure, calling on legislators to vote on a proposal that would provide an incentive to use alternative energies.

"It's moving us to the future," Rice said. "I think it would be a good long-term investment."

The bill's author, state Sen. Jim Wilson, D-Tahlequah, said the first ball-point pen cost $17 and can now be purchased for a handful of change. He added that he wasn't attached to the solar energy tax exemption and would be willing to remove that language as the bill moved through the process.

Other tax proposals approved by the Senate included House Bill 2085, which would provide a tax credit for the aerospace sector. The Senate also approved House Bill 1916, which would add a tax exemption for certain biofuel and biodiesel producers.