Projections trigger cut in state income tax

OKLAHOMA CITY (AP) – Oklahoma finance officials say revenue projections have increased enough to trigger an income tax cut in 2016.

Secretary of Finance Preston Doerflinger announced yesterday the estimate for general revenue fund collections for the upcoming fiscal year is about $60 million more than the estimate made in February 2013.

A seven-member board led by Governor Mary Fallin will meet today to certify the final figures.

The cut will drop Oklahoma’s top personal income tax rate from 5.25 percent to 5 percent, beginning in January 2016. Doerflinger says the average tax filer will save about $85 a year, while the cut is expected to cost the state about $147 million annually.

If revenues keep rising, a second cut to 4.85 percent is possible in 2018.