McCall Suggests Sending Cig Tax To Ballot To Address Spending Gap

FOR IMMEDIATE RELEASE: Office of House Speaker Charles McCall
Sept. 6, 2017

Speaker McCall Announces Solution for Special Session and $215 Million Gap 

OKLAHOMA CITY – House Speaker Charles McCall today said House Republicans will consider raising the cigarette tax in special session but will send it to a vote of the people if  House Democrats again refuse to support the measure.

McCall said the Legislature will likely take up the cigarette tax and use existing cash to address the $215 million budget hole created when the Oklahoma Supreme Court struck down the cigarette cessation fee the Legislature enacted in May. The cigarette tax, if passed in special session, would generate approximately $122 million for the Fiscal Year 2018 budget. The House also likely would use a combination of $70 million of the $83 million available in Fiscal Year 2017 prior year cash and $23 million from the Rainy Day Fund, which would backfill the $215 million hole and prevent cuts to education, health care and other agencies.

“The cigarette tax is the only feasible tax option Oklahomans have said they would support. It would help us replace the funds lost when the Court rejected the cigarette fee,” said Speaker McCall, R-Atoka. “Unlike our Democratic colleagues, House Republicans have no intention or desire to tax the life out of Oklahomans just to grow government – especially at a time when our citizens are living on less. We are not going to raise a billion dollars in taxes to fill a $215 million budget hole.”

McCall said if the cigarette tax fails the Legislature will send it to a vote of the people and use targeted cuts to make up the difference in the budget hole.

“House Democrats have shown time and again they are not going to help pass the cigarette tax despite it being the most feasible among Oklahomans,” said McCall. “They have not supported the cigarette tax during either of the last two legislative sessions, and we have no reason to believe special session will be any different. If they refuse to support the cigarette tax again, any further cuts to state agencies will be on them. The Court struck down the cigarette fee, so the easiest path to replacing the funds is to pass the cigarette tax.

“House Republicans will convene in special session, as we are obligated to do. But we have to make decisions that are in the best interests of the citizens who sent us here, not what is in the best interest of special interests or bureaucrats.”

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