Oklahoma Farm Bureau Urges Legislators to Pass Drilling Tax AgreementTue, 13 May 2014 17:12:28 CDT
Today, the state’s largest agricultural organization, Oklahoma Farm Bureau, voiced its support for the continued development of oil and natural gas in the state.
“OKFB opposes any legislative action that would discourage exploration and production of Oklahoma natural resources,” said John Collison, OKFB vice president of public policy and media affairs.
A proposal at the state Capitol would increase the state’s gross production tax on new wells from 1 percent to 2 percent for 48 months.
“While Oklahoma Farm Bureau does not encourage the raising of taxes on oil and gas production, we see this as a fair compromise,” Collison said.
This legislation would eliminate the sunset and apply the initial rate to all new wells. This would provide all oil and natural gas producers and rural mineral owners with a permanent tax structure to work with in the future.
“Oklahoma Farm Bureau members understand that any tax increase on the oil and gas industry will prevent growth and prosperity in Oklahoma and their rural communities,” Collison said.
“We encourage the legislators and the Governor to act immediately on this compromise legislation, which the oil and gas industry has provided. It is important to understand that rural Oklahoma, through agriculture and oil and gas, is the backbone to Oklahoma’s economy.”
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