Lamb won’t back taxes for agriculture, disabled vets

Lt. Gov. Todd Lamb on Friday narrowed the list of Oklahoma sales tax exemptions he would consider eliminating, saying agriculture and disabled veterans should remain off limits.

Speaking to the High Noon Club in Oklahoma City, Lamb, a Republican candidate for governor, didn’t specify any of the state sales tax exemptions that should be considered for elimination.

He said agriculture was too important to the state’s economy to subject the sector to sales taxes.

And, he said, “The disabled veterans sales tax deduction? That won’t be touched.”

Lamb came out strongly against tax increases before a coalition of business leaders developed the Step Up Oklahoma revenue and reform package now before the state Legislature.

He has remained opposed and reiterated that on Friday to a questioner who noted many prominent Republicans are backing Step Up Oklahoma.

“I’m opposed to tax increases,” Lamb said. “I will be later today. I will be tomorrow.”

Lamb has said, however, that state leaders should consider eliminating some of the $6.7 billion in annual sales tax exemptions.

“It doesn’t mean everything gets eliminated or everything’s on the table,” he said. “But you start that discussion.

“As governor, you unilaterally lead that discussion; you can’t unilaterally make those decisions on what’s mitigated or what’s eliminated.”

Gov. Mary Fallin encouraged legislative leaders two years ago to examine sales tax exemptions, but they declined.

About $5.7 billion of the $6.7 billion in annual exemptions is in two categories: merchandise purchased for resale and components purchased by manufacturers. In both cases, the sales taxes are typically paid by the so-called end user, often a consumer.

Some of the other highdollar exemptions are for state and local governments and agencies.

The exemption for agriculture sales is worth $107 million a year; Lamb would also protect the exemption for livestock purchased out of state, which amounts to $67 million a year. The disabled veterans exemption is worth $32 million a year.

Tulsa attorney Gary Richardson, a rival for the GOP nomination, released an ad on social media this week accusing Lamb of trying to tax everything from public schools to Girl Scout cookies.

Among other Oklahoma sales tax exemptions are: drugs, $153.6 million a year; utilities for residential use, $136 million a year; some types of advertising, $48 million; and newspapers and periodicals, $11 million.

Of the Republicans running for the gubernatorial nomination, only Oklahoma Auditor and Inspector Gary Jones has said he would support tax hikes. Jones has released a plan with some of the same elements as the Step Up Oklahoma package.