Proposed tax credit rules for private and homeschooling face criticism from Oklahoma lawmakers
OKLAHOMA CITY, Okla. (KOKH) — Private and homeschool tax credits are again facing pushback, this time centered around new rules proposed by the Tax Commission, which is the agency in charge of doling out the credits.
Some lawmakers who played a role getting the school choice bill across the finish line are concerned the rules aren't exactly what they had envisioned.
"It needs some work," Sen. Adam Pugh said.
"It sure makes it look like the accessibility to the tax credit is going to be very difficult for families that don't already have their child in a school of choice, a private school per se," Rep. Rhonda Baker added.
Education Chairs from both sides of the rotunda have some issues with the six pages of proposed rules from the OK Tax Commission, laying out the groundwork for school choice.
"There's a chance that we will have to file legislation to clarify. We've got to make it more clear," Rep. Baker said.
The main points lawmakers said constituents are calling in about revolve around if the tax benefit will become a tax burden.
"For a parent who is going to take advantage of this program, the Tax Commission is proposing to treat this like a taxable event, where they would be issuing a 1099. That is very concerning because that is, number one, counter to our intent as the legislature," Sen. Pugh said.
Some changes lawmakers mentioned include aligning the credit with the school year instead of tax year and improving accessibility so it's easier for parents to apply.
"Maybe a family that has four children, if they have to do an application per child instead of one application for the family, those are things that do make it difficult for the families," Rep. Baker said.
The legislature could clear up confusion in legislation during session in February, which is a month after the tax credits become available.
In the meantime though, the Senate said they're in talks with the Governor.
"It's really the Governor's Office that has control over this agency," Sen. Pugh said. "What the Senate and the House has is rule making authority to approve or disprove the rules once we get into session."
The Tax Commission is accepting comments until October 12th.
You can submit your input here:https://oklahoma.gov/tax/individuals/parental_choice_tax_credit.html
For more local news delivered straight to your inbox sign up for our daily newsletter by clicking here.