Latest news with #OklahomaTaxCommission
Forbes
21-07-2025
- Politics
- Forbes
Oklahoma Supreme Court Denies Income Tax Exclusion To Native American
Map of Indian Territory and Oklahoma, U.S. Bureau of the Census, 1890. (Photo by: GHI/Universal ... More History Archive/Universal Images Group via Getty Images)Everything becomes a tax issue eventually, which is why you sometimes find fascinating historical sagas being worked over in tax litigation. The recent decision of the Oklahoma Supreme Court in Alicia Stroble's dispute with the Oklahoma Tax Commission really shines in that regard. Ms. Stroble had claims for the years 2017, 2018 and 2019 that her income was exempt from state income tax. She believed she met all the requirements for the "Exempt Tribal Income Exclusion" being a member of the Muscogee (Creek) Nation. The tax commission argued that she did not qualify because she did not meet one of the requirements. In the commission's view, she did not live in "Indian Country" even though she otherwise qualified. She lived on "unrestricted, non-trust, private fee land". On appeal Stroble argued that the commission's holding was contrary to the 2020 Supreme Court decision McGirt v Oklahoma. The plaintiff in that case elicits much less sympathy than Ms. Stroble. Jimcy McGirt had been convicted of sex crimes by Oklahoma. His argument was that the Major Crimes Act held that the state could not prosecute him. The United States had exclusive jurisdiction as he was an Indian living in Indian country. The Court had to decide whether the part of Oklahoma where he resided was legally "Indian country". The Supreme Court ruled that it was along with the rest of the eastern part of Oklahoma. History Justice Gorsuch opened the majority opinion in McGirt with a sentence that I understand has been much quoted: "On the far end of the Trail of Tears was a promise." He goes on to describe that promise as assuring the Creek Nation that their new lands in the West would be secure forever in exchange for ceding all their land, east of the Mississippi River. The Creek, or more properly Muscogee, along with the Cherokee, Chickasaw, Choctaw and Seminole were referred to by the United States government as the "Five Civilized Tribes", a term which is out of favor nowadays. Signs of being "civilized" were Christianity, centralized governments, literacy, market participation and using enslaved Africans to work the land. Despite all that they found themselves unwelcome in parts of North Carolina, Georgia, Tennessee, South Carolina, Alabama and Mississippi where they had lived for centuries if not millennia. This was resolved with the Indian Removal Act of 1830 and the Trail of Tears which had that forever promise at the end of it. Cancelled Stamp From The United States Featuring Five Native American Tribes That Were Forced To ... More Resettle In The State Of Oklahoma. If you look at a map of the United States from around 1880 you might see Indian Territory sandwiched between Kansas and Texas. A map from 1900 will show that area split into two pieces with Oklahoma Territory to the west and Indian Territory to the east. After 1907,it is the State of Oklahoma. On November 16. 1907 Charles N. Haskell was sworn in as the first governor of the state of Oklahoma. To celebrate a wedding ceremony was held joining Mr. Oklahoma and Miss Indian Territory to symbolize the new unified state. So how can all that area still be reservations? Only Congress can end reservation status and Gorsuch takes us through a lot of history that concludes with: "But whatever the confluence of reasons, in all this history there simply arrived no moment when any Act of Congress dissolved the Creek Tribe or disestablished its reservation. In the end, Congress moved in the opposite direction." Oklahoma Supreme Court Majority Opinion The McGirt decision was about the Major Crimes Act, which denies state jurisdiction to certain crimes committed by Indians in Indian country. When it came to what further implications the revived reservations might have, Judge Gorsuch waved his hands. "Finally, the State worries that our decision will have significant consequences for civil and regulatory law. The only question before us, however, concerns the statutory definition of "Indian country" as it applies in federal criminal law under the MCA, and often nothing requires other civil statutes or regulations to rely on definitions found in the criminal law." In the Stroble case, the Oklahoma Supreme Court has to face the potential for one of those significant consequences, specifically whether tribal members living and working in their "reservation" have to pay state income taxes. "The United States Supreme Court's declaration—113 years after statehood—that nearly half of Oklahoma is a reservation is unprecedented. To date, the United States Supreme Court has not extended its ruling in McGirt beyond the Major Crimes Act. To date, the United States Supreme Court has not extended its ruling in McGirt to the State's civil or taxing jurisdiction. And it is not this Court's place to do so." There is an indication that there is a lot of different thinking going on here. The main opinion is "per curiam", i.e. not identified to one judge. Then there are five separate concurrences and a dissenting opinion. Chief Justice Rowe agreed that, it was not up to the Court to extend the McGirt decision to civil or taxing jurisdiction. He noted, however, that the Oklahoma Tax Commission uses the Major Crimes Act definition of "Indian country" in its regulation. Ms. Stroble's claim though is for the years 2017-2019 and the US Supreme Court decision in McGirt was not retroactive. This strikes me as kicking the can down the road, with maybe a nudge to the Commission to change its regulation. He explicitly disclaims the notion that the claim should be disallowed using the equitable doctrine of laches, acquiescence and impossibility. That is a little lawyerly for me, but the notion would be that native people can't go bringing this up after having gone along with the way things have been done since Mr. Oklahoma married Miss Indian Country in 1907. He writes: "Relying solely on the passage of time to bar Ms. Stroble's claim would write another chapter in our history reflecting that equity has not weighed in favor of Native Oklahomans." He then quotes Chitto Harjo, Muscogee traditionalist, who in 1906 speaking to US Congressmen in 1906 said: "He told me that as long as the sun shone and the sky is up yonder these agreements will be kept. . . . He said as long as the sun rises it shall last; as long as the waters run it shall last; as long as the grass grows it shall last. . . . He said, `Just as long as you see light here, just as long as you see this light glimmering over us, shall these agreements be kept, and not until all these things cease and pass away shall our agreement pass away.' That is what he said, and we believed it. . . . We have kept every turn of that agreement. The grass is growing, the waters run, the sun shines, the light is with us, and the agreement is with us yet, for the God that is above us all witness that agreement." The rest of the concurrences are more technical though no less fascinating. Oklahoma Supreme Court Dissent Three judges dissented. "The outcome in this particular matter is mandated by the U.S. Supreme Court's definition of "Indian country" in its precedents regarding state taxation of Native American tribes and tribal members. As previously mentioned, this Court is duty-bound under both the U.S. Constitution and Oklahoma Constitution to honor federal treaties and statutes governing relations with Native American tribes, as well as the case law interpreting them. It is Congress that has set the terms under which Native Americans live, the U.S. Supreme Court that has shaped the interpretation of those terms, and the U.S. Department of Interior's Bureau of Indian Affairs that has managed the day-to-day interactions with the Tribes. Indeed, Oklahoma was required to disclaim jurisdiction over Native Americans at statehood." Possibility Of Appeal I spoke with Michael Parks, the attorney representing He told me that while he and his clients respect the decision of the Oklahoma Supreme Court they are considering appeal to the US Supreme Court or another federal court. They are requesting that the Oklahoma Supreme Court stay the effect of its decision until they have decided on whether to appeal. He indicated that there may have been an over focus on McGirt and that there are other important Supreme Court opinions that support their position such as McClanahan v, Arizona State Tax Commission. How Will US Supreme Court Rule? If the tax issue flowing out of McGirt goes to the US Supreme Court, the difference in the court composition is Amy Coney Barrett replacing Ruth Bader Ginsburg. McGirt was decided by the then four "liberal" judges joining with Neil Gorsuch. Justice Barrett voted with Gorsuch in upholding the Indian Child Welfare Act and is similarly devoted to textualism, so the ruling might go in favor of Stroble. Reactions And Commentary Kevin Stitt, governor of Oklahoma, speaks during the Conservative Political Action Conference (CPAC) ... More in Dallas, Texas, US, on Friday, Aug. 5, 2022. The Conservative Political Action Conference launched in 1974 brings together conservative organizations, elected leaders, and activists. Photographer: Dylan Hollingsworth/Bloomberg Oklahoma Governor Kevin Stitt released a statement. "This is a big win for the future of Oklahoma. From day one, I've fought to make sure every Oklahoman is treated equally. Tribal governments, liberal groups, and some elected officials have pushed for special tax exemptions that would create a two-tiered system — one set of rules for tribal citizens and another for everyone else. That's wrong. It would divide our state and weaken the public services every family relies on. This ruling makes it clear that attempts to expand McGirt into civil and tax matters have no basis in the law. We are one Oklahoma. And as long as I'm Governor, we aren't going backwards.' Governor Stitt is a citizen of the Cherokee Nation. He has generated a lot of controversy by seeking to have the tribes give the state of Oklahoma a larger share of casino revenue. FILE - Muscogee (Creek) Nation Principal Chief David Hill, right, speaks with local paramedics ... More during the opening of a two-day festival, April 8, 2022, in Oxford, Ala. The Muscogee (Creek) Nation filed a federal lawsuit Wednesday, Nov. 15, 2023, against the city of Tulsa, arguing Tulsa police are continuing to ticket Native American drivers within the tribe's reservation boundaries despite a recent federal appeals court ruling that they lacked jurisdiction to do so. (AP Photo/Jay Reeves, File) Muscogee Nation Principal Chief David W. Hill made a statement: 'The Muscogee Nation is disappointed in the Oklahoma Supreme Court's ruling today in Stroble v. Oklahoma Tax Commission departing from well-settled law originally recognized by the United States Supreme Court over 50 years ago and that is inconsistent with the State's own administrative tax rules. Ever since the McGirt ruling, we have seen Oklahoma state courts go through legal gymnastics to come up with results that are not in compliance with federal law and that do not even follow pre-McGirt state court precedent on the limits of state authority in Indian country. The Stroble ruling is another sad example of those antics. We know that this ruling could have broad implications for Indian Country, so we are carefully reviewing the decision with our legal team and preparing for the next steps. While it is important to remember that the Muscogee Nation cannot provide legal advice on individual tax cases to citizens, the Nation will remain diligent in coordination and communication of what our response will be.' Cherokee Nation Principal Chief Chuck Hoskin Jr. issued a similar statement which included the following comment: 'It's unfortunate that Governor Stitt continues to mislead Oklahomans by describing this case as tied to 'race-based tax exemptions.' That's simply not true – it's about respecting the law and long-established precedent." Although there is quite a bit of Oklahoma coverage of the decision, I have not found anything national. Not being a regular reader of Oklahoma newspapers I discovered it trolling through Google Scholar. The most thorough discussion of the case that I found was "Stroble decision: OK Supreme Court rejects income tax appeal, declines to extend McGirt to civil law." by Tristan Loveless. The Oklahoma Society of CPAs issued a case study of the opinion. Included in the practical advice is to "Consider maintaining all pending claims until all potential appeals of the Stroble decision have been exhausted. It is mentioned in the decision that there were more than 11,500 claims like Stroble's. About McGirt This is a kind of side note to a really long post, but I always get curious about what happens to people who get their names on really important Supreme Court decisions. Jimcy Mcgirt was sentenced to a 30-year federal sentence on one count of Aggravated Sexual Abuse in Indian Country in 2024. He was freed because he had already served than much time on the state life sentence. On April 9, 2025 he was indicted for failure to register as a sex offender. On June 24, 2025 McGirt entered a guilty plea and is awaiting sentencing.
Yahoo
29-05-2025
- Business
- Yahoo
Oklahoma governor signs income tax cut deal: What to know
Republican Gov. Kevin Stitt has signed an income tax cut into law, accomplishing his main goal of the legislative session with days to spare. The quarter-point cut will reduce Oklahoma's income tax rate to 4.5% for most earners, while costing the state between $160 million and $300 million a year in lost revenue, according to varying estimates. Stitt has long pressed for reducing income taxes and reached a deal this year with the Republican-led Legislature to make it happen. The agreement includes a consolidation of income tax brackets and what Stitt has described as a "path to zero" income tax, with triggers meant to further reduce the tax rate in future years. While Stitt had opened the Legislative session in February by calling for a steeper half-point tax cut, he has still seemed pleased with landing a quarter-point cut. Talking about the tax cut deal during a news conference on Wednesday, May 28, Stitt said it would "automatically trigger tax cuts, not in an irresponsible way, but with excess revenue, we'll be able to trigger tax cuts and put us on a path to zero." The specifics of the cut are spelled out in House Bill 2764, which Stitt signed on Wednesday. By law, the Legislature has until Friday to finish its regular session business. Critics have questioned whether lawmakers should reduce tax collections — and also dip into savings to cover some line items in the state's nearly $12.6 billion budget for the next fiscal year — at a time of economic uncertainty. More: Gov. Stitt, legislative leaders announce budget deal including tax cuts, tort reforms According to an analysis by the Oklahoma Policy Institute, a nonpartisan Tulsa-based think tank, cutting income taxes by a quarter of a percentage point would reduce state revenues by $306 million annually. The group's analysis also showed many Oklahomans stand to save only marginal amount on their annual income tax bill. A quarter-point cut could save people who make $79,700 or less between $9 and $95, and would save those in the top 1% of incomes — making $683,500 or more — $2,936 annually, the group found. Stitt has said the cut will help out struggling families and cost the state about $160 million in lost revenue during the next fiscal year, citing Oklahoma Tax Commission numbers. Stitt has maintained because that money is spent by taxpayers, not state government, it's better for the economy. The tax cut bill passed by margins of 74-19 in the House and 34-11 in the Senate, largely along party lines. This article originally appeared on Oklahoman: Oklahoma Gov. Stitt signs income tax cut bill: What you should know
Yahoo
27-03-2025
- Politics
- Yahoo
Lifting cap on Oklahoma's School Choice Tax Credit could have high cost
OKLAHOMA CITY (KFOR) — The conversation about no cap on Oklahoma's School Choice Tax Credit could come at a cost after another state implemented a similar measure. Several bills related to the Parental Choice Tax Credit program we discussed this legislative session. However, lawmakers voiced concern that there are close to none that serve to provide accountability or oversight. The program was billed, in large part, as a way to help low-income families get their kids the best education possible, but new state data showed a major share of its funds went to the state's wealthiest families that participated. The data from the Oklahoma Tax Commission showed Oklahoma paid out $91.7 million to families taking part in the Parental Choice Tax Credit system. The cap is a tiered system; the credits are capped at $200 million for the current school year and will be $250 million for 2026. Governor Kevin Stitt has voiced his support to remove the cap altogether. Several lawmakers voiced concern about removing the cap as there have been examples of that causing concern. Arizona has a school-choice program where they removed the cap and it caused problems according to the latest data. A non-partisan think-tank group, the Grand Canyon Institute (GCI), conducted research regarding their program. A report released by GCI over the summer last year looked at the net cost of Arizona's school choice program. The report aimed to find the costs or savings the state was taking on because of the program. Research director Dave Wells said the school choice program in Arizona contributed to the budget deficit, adding a whole new cost to the state. Governor Stitt calls to extend the cap on Parental Choice Tax Credit 'We're taking a whole bunch of children who were never going to be in a public district or charter school and now we're subsidizing them,' Wells explained. 'What these programs do is they primarily seem to elevate the needs of higher-income parents over the needs of lower-income parents.' Representative Melissa Provenzano (D-Tulsa) is the author of a bill that is expected to be voted on come Friday that is one of the only ones that has some accountability on the tax credit program. Her bill HB 1396 would essentially not require parents to sign up for the program if they are enrolling in a private school. Before it came to the floor, it did have a restriction where schools couldn't raise their tuition just because of the program. That was taken out in committee. 'Just like in Arizona, if we take the cap off of how much we're willing to spend each year, we're going to put ourselves in a financial crisis. And so I'm very concerned about that,' said Rep. Provenzano. The money from the Oklahoma program was divided among families based on their income. A $27.1 million portion, about 30%, went to families making below $75,000 a year. According to census data, the average household income from last year totaled just over $63,000. A nearly equal amount, $26.3 million, went to families making between $75,000 and $150,000. Governor Stitt was asked about removing the cap and was presented the issues Arizona has seen, but he didn't answer the concerns. He did comment later during his Wednesday presser on a push towards slightly more privatized education programs. 'If we can do what I think we're able to do on education with our free market approach, with our, you know, more charter schools, more Christian schools, more Catholic schools, more options for parents,' said Gov. Stitt. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
08-03-2025
- Business
- Yahoo
Gov. Kevin Stitt champions school choice at inaugural Oklahoma Charter Schools Conference
Dozens of Oklahoma charter schools stakeholders heard Gov. Kevin Stitt during a conference on Friday champion school choice and emphasize the role quality education plays in the state's economic success. The governor addressed a group of charter school administrators, board members and authorizers on Friday during the second day of the inaugural Oklahoma Charter Schools Conference. He called education the driver of innovation, and the key to securing the American dream for the next generation. "For decades, education in America was a system that prioritized bureaucracy over students. Well, not anymore," Stitt said. "You guys are leading the way in that we believe in parents having the power to make decisions about their child's education. A ZIP code should never determine a child's destiny." Stitt touted the state's Parental Tax Credit program that nearly 8,000 Oklahoma families took advantage of for spring 2025. The program was approved by legislators in 2023, and was officially launched that December. Under the program, any family whose children attend private schools can claim between $5,000 and $7,500 annually, with priority given to families with household incomes of $150,000 or less. "Rich people already have school choice," Stitt said. "They can send their kids anywhere they want. Now, every single family in Oklahoma has the ability to do the exact same thing." More: Over 5,000 Oklahoma City Public Schools students doubled their projected growth in reading A mandated report released by the Oklahoma Tax Commission revealed that about 21% of the tax credits issued as part of the program for spring 2025 went to families making more than $250,000. During the conference, the governor criticized Tulsa Public Schools' decision to close its campuses for over 300 days during the height of COVID-19. "These parents would tell me, they would say, 'Governor, it is not fair. I'm in Tulsa Public Schools, and my son, or my daughter, is not learning how to read right now on Zoom. We don't have good internet connection at the house. I have to go to work during the day,'" Stitt said. These conversations struck a nerve, Stitt said, which is why he wanted open transfers. The Education Open Transfers Act went into effect in 2022, which took a month-long open transfer window that occurred in the summer and stretched to the entire calendar year. During the 2021-22 school year, 59,755 Oklahoma students were enrolled in charter schools, according to a report by the Oklahoma State Department of Education. That's down nearly 27% from the previous academic year, but a massive increase from 6,923 students in 2011. Stitt referenced a 2023 study from Harvard University, which ranked Oklahoma No. 6 among 36 states for the academic success of its charter schools, according to test score data from 2009 to 2019. "You don't have the ability to bond like the public schools. Some of your facilities aren't quite as nice as the public schools. We're trying to narrow that gap for you in our Legislature," Stitt said. "If you know a Senate or a House member, I'll give you a whole list of things and call them to tell them to do OK? That's one of them." "I believe that rising tides lift all boats. Charter schools and private schools are not a threat to public education. They actually encourage competition." The governor also boasted the U.S. Supreme Court's decision to hear arguments on April 30 over a legal case that could lead to the establishment of the nation's first religious online charter school, based in Oklahoma. In January, the court consolidated two petitions that had been filed, one by the Statewide Charter School Board and one by St. Isidore of Seville Catholic Virtual School, after the Oklahoma Supreme Court ruled last year that the board's predecessor must rescind its contract with St. Isidore due to constitutional issues. "Why does the government stand in the way to say that I can't put my faith in my children?" Stitt said. "I mean, it's just common sense. It's religious freedoms. Don't let people spin you into thinking this is somehow a controversial issue, because government should not stand in the way of businesses or excluding any kind of religious organizations from public programs just because they're faith based." To close his speech, Stitt said the state is fighting for ensuring that every child has the best shot at success, and thanked the charter schools stakeholders for their work. "If we continue down this path, expanding choice, driving innovation and putting parents in the driver's seat, Oklahoma will be the model for the entire nation," Stitt said. "We'll be the state where students are thriving, where businesses are flourishing and the American dream is alive and well." This article originally appeared on Oklahoman: Gov. Kevin Stitt champions school choice at charter schools conference
Yahoo
28-02-2025
- Politics
- Yahoo
Data reveals Oklahoma school choice program sending significant share of funds to wealthiest families
OKLAHOMA CITY (KFOR) — Oklahoma's school choice program was billed, in large part, as a way to help low-income families get their kids the best education possible, but new state data shows a major share of its funds are going to the state's wealthiest families, while the share going to families making below the average income remains unclear. Now, some lawmakers say something has to of the Oklahoma Parental Choice Tax Credit program advertised it as being built on a promise: to allow families who couldn't otherwise afford it, to send their kids to private schools. 'It would never have passed' Some Oklahoma lawmakers say private school tax credit system not operating as expected 'Now we're gonna put the parents back in charge,' Governor Kevin Stitt said when advocating for the program in 2023.'This is an every kid wins policy and funding plan,' then-Oklahoma House Speaker Charles McCall (R-Atoka) said about the program in 2023.'Every parent should be able to make any decision they want with their kid,' Oklahoma State Superintendent Ryan Walters said at a rally advocating for 'school choice' policies in also claimed it could be funded without hurting public schools.'We're not pulling money from the appropriated funds for public education,' McCall said in new data from the Oklahoma Tax Commission (OTC) has some questioning whether the program is living up to its promise.'It's sort of school choice for thee but not for me,' said State Rep. Melissa Provenzano (D-Tulsa).'We're going to see this hurt the state's economy,' former Republican State Rep. Mark McBride data shows Oklahoma paid out $91.7 million to families taking part in the Parental Choice Tax Credit system. Parental Choice Tax Credit used to pay off debts before tuition That money was divided among families based on their income.A $27.1 million portion, about 30%, went to families making below $75,000 a year.A nearly equal amount, $26.3 million, went to families making between $75,000 and $150, $15.7 million, or 17%, went to families making between $150,000 and $225, about a fourth of the money, $22.6 million, went to the wealthiest families, those making more than $225,000 a year. That concerns Provenzano. 'When you're saying school choice for all, what do you mean?' Provenzano said. 'And what we've discovered is overwhelmingly… tax credits went to families that are already attending private school.' It also stood out to McBride, who was one of several Republicans who voted in favor of the tax credit, in order to pass a large public school funding bill alongside it.'I had people come to my office and they talk to me and it was always wealthy people or for profit groups,' McBride said. 'I always had a problem with that. I said, bring me somebody that makes household income less than $60,000 a year or $50,000 a year, because they kept saying when they when they would talk to me, that's what we're trying to help out.' Governor Stitt addressed concerns about the program at a press conference on Wednesday.'It's working like we wanted it,' Stitt said. 'I mean, the fact is we've got we've got people using it.' He pointed out the majority of funds did not go to the richest families.'79% went to working families,' Stitt is true that 79% of the money went to families making below $250,000 a a majority of that amount, about 65% of it, went to families making above $75, median income is around $60,000. It is unclear how much of the money went to families making at or below the median income, as the OTC did not release that data.'They set up these income bands of who gets access to these private schools through this credit,' Provenzano said. 'And the first band is $0 to $75,000. That really doesn't demonstrate accurately for our families that may fall below the poverty line — are they getting access?'Tim Gilpin, a former Oklahoma State School Board member, said the numbers were not surprising. 'This deal is getting worse all the time,' Lawmakers say administering Parental Choice Tax Credit costing more than expected 'It's no surprise that there isn't a voucher or a credit big enough so that someone, a middle-class or lower-economic-means family could pay private school tuition,' Gilpin said. He said the legislature could amend the bill to address the concerns. 'I think a good change would be to lower the income level of anyone who can apply for it,' Gilpin said.'Let's just say, okay, if you make $60,000 or lower, you get the tax credit,' McBride said. 'If you make above that, you don't.' Getting any changes past the governor could be difficult. Tulsa World: State looking to claw back millions in private school tax credit paid to families who didn't qualify Stitt is pushing to lift the financial cap on the program, and expand something Provenzano and McBride say has not worked out well in other states.'They tried that in Arizona. It was a train wreck. It led to a revenue shortfall,' Provenzano said.'They got a $1.4 billion deficit and most of that is due to their voucher system,' McBride said.'And the question is, is that a responsible thing to do in a in a fiscal year like this?' Provenzano said. California company to earn nearly $4M for Parental Choice Tax Credit web portal Gilpin said lifting the cap would come at a cost: the state's public school system.'You would drain the state budget,' Gilpin said. 'Our state's already strapped for public school funds, and it can't be responsible for public policy means because that is the elimination of our public school system. We're going to create—and have created—a two-tier class system where there are those of us who can already afford to put our kids in a school of choice, a private school, and those of us who can't.'News 4 reached out to Governor Stitt's Office with specific questions about the program, but no one responded. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
