Lankford questions state tax policy
Cole laments absence of Fauci at hearing over COVID-19
Oklahoma should reevaluate its prohibition on cities and towns raising money from property taxes to fund municipal services, U.S. Sen. James Lankford said this week.
“The challenge we have in Oklahoma is our local entities are so sales-tax dependent,” Lankford said in an interview, adding that the sales tax revenue has proven to be “inconsistent and unreliable.”
Problems with that dependence have been amplified during the pandemic as restaurants and retail establishments have been s hut down and unemployment has soared, the
Oklahoma Republican said from his Capitol Hill office.
“We don't know how far sales tax revenues are going to fall,” Lankford said. “It will be significant. It looks somewhere in the line of 40%. That's dramatic in how it will affect communities.
“Property tax is not going to move in this time period. Sales taxes will. So long term in the state, we should evaluate how we actually do our state funding.”
Meanwhile, Rep. Tom Cole, R-Moore, said the White House should have allowed Dr. Anthony Fauci to testify about COVID-19 before a House subcommittee on Wednesday.
"I think it would have been good testimony, useful to this committee, I think useful to this country," Cole said at a hearing in Washington of the Appropriations subcommittee on Health and Human Services.
Cole is the top Republican on the subcommittee.
Fauci, a trusted figure on the White House coronavirus task force, was not allowed to testify in the House, which is controlled by Democrats. He is expected to testify next week before the Senate, which is controlled by Republicans.
Cole said the United States was as prepared as any other country for the pandemic but that it was “critically important the federal government learns from this crisis and actively prepares to face down another pandemic in the future."
He said, “While I'm proud that Congress has generously invested in worthy tools and response resources to strengthen our readiness in recent years, it must be an even higher priority in the days to come.”
Lankford addressed the sales tax situation in the context of whether Congress should approve more aid to states and cities. Oklahoma governments have been allotted about $1.2 billion from the relief package approved in March, though that money can only be used for COVID-19 related costs.
Stitt has said the state needs more flexibility with the money already appropriated, not necessarily more money. Lankford echoed that in an interview, saying he was “pushing back” against another big aid package.
“One of the things I've pushed for is more flexibility in the state funding that they already have, to make sure we don't limit cities and states,” Lankford said.
Oklahoma allows municipalities to use property tax revenue only for capital improvements and economic development. Cities can't look to property taxes to fund public safety expenses, such as policing and firefighting. Counties collect most property tax revenue, much of which goes to schools.
An economist warned the Oklahoma City Council last month that it is facing a 25% to 40% economic hit by summer that will rival or exceed the depths of the Great Depression.
During the 2018 gubernatorial campaign, then-candidate Kevin Stitt said he would back legislation allowing cities and towns to levy a property tax to help finance their public safety obligations. Stitt is now governor, but state lawmakers have not approved legislation loosening restrictions regarding municipal use of property taxes.