Oklahoma Senate Bill 1086 and the impact on farmers and ranchers - KSWO 7News | Breaking News, Weather and Sports

Oklahoma Senate Bill 1086 and the impact on farmers and ranchers

LAWTON, Ok (KSWO) -

On day 6, Oklahoma legislators are still feeling pressure from teachers. Last week, they passed the Amazon Tax Bill and a bill regarding Ball and Dice games, but there are two other big revenue bills on the floor this week. 

One of those is Senate Bill 1086. It would eliminate the current exclusion on qualified capital gains. For farmers and ranchers, those capital gains include land and cattle. If Senate Bill 1086 were to pass, not only would they pay a capital gains tax, but they would also have to pay state income tax on those gains.

Oklahoma farmers and ranchers depend on their assets to live, so when Senate Bill 1086 was put into motion, it caused concern among a large population of our state. Some common capital gains transactions in agriculture are land and breeding cattle. Take land, for example. Since land normally appreciates, it will likely be sold for more than it was originally purchased for. Under Senate Bill 1086, that income would be taxed.

"They'd pay property tax on their land, they'd pay a capital gains tax on their land, and then if 1086 goes through, they'd pay state income tax on that gain and so that's just something we're not in favor of in that sense," said Michael Kelsey, the Executive Vice President of the Oklahoma Cattlemen's Association.

The cattlemen's association looks at this as their members being double taxed. It's a similar story for breeding cattle. Under 1086, if a rancher chose to sell a portion of this cattle after the required holding period, they would pay a capital gains tax, and an income tax on the gain they received from those cows. There has been talks of lawmakers adding an amendment to the bill that would exclude farmers and ranchers, but that's not possible.

"The Oklahoma Supreme Court ruled a few years ago, that would be discriminatory and unconstitutional," Kelsey said. "In other words, to make one sector of the population pay, and another sector not, in the capital gains case, it would be discriminatory."

While the Oklahoma Cattlemen's Association is against Senate Bill 1086, they are still in support of teachers and their efforts.

"We certainly respect and admire our educators, our teachers," said Kelsey. "They are the leaders, especially in rural communities. We don't want to make this an us versus them scenario. We're trying to bring to light how this piece of proposed legislation would negatively effect farmers and ranchers."

There is a chance the House won't even hear the bill. Floor leader John Echols reportedly made a deal with House Republicans to not bring the capital gains bill to the floor for a vote, in exchange for Republicans to vote for the initial education funding bill.

Copyright 2018 RNN Texoma. All Rights Reserved.

  • Local NewsNewsMore>>

  • California university won't punish professor who jeered Bush

    California university won't punish professor who jeered Bush

    Tuesday, April 24 2018 10:27 PM EDT2018-04-25 02:27:20 GMT
    Wednesday, April 25 2018 2:35 AM EDT2018-04-25 06:35:28 GMT
    Jarrar doubled down on her position in later tweets and even boasted "I will never be fired." (Source: @RandaJarrar/Twitter) Jarrar doubled down on her position in later tweets and even boasted "I will never be fired." (Source: @RandaJarrar/Twitter)Jarrar doubled down on her position in later tweets and even boasted "I will never be fired." (Source: @RandaJarrar/Twitter) Jarrar doubled down on her position in later tweets and even boasted "I will never be fired." (Source: @RandaJarrar/Twitter)

    A California State University, Fresno professor who called Barbara Bush "an amazing racist" and cheered her death won't be punished.

    A California State University, Fresno professor who called Barbara Bush "an amazing racist" and cheered her death won't be punished.

  • Homeless Girl Scout troop sells 6,000 boxes of cookies

    Homeless Girl Scout troop sells 6,000 boxes of cookies

    Wednesday, April 25 2018 2:02 AM EDT2018-04-25 06:02:12 GMT
    Wednesday, April 25 2018 2:16 AM EDT2018-04-25 06:16:37 GMT
    The girls of Troop 6000 in New York City have met, and even exceeded, their sales goal. (Source: WCBS/CNN)The girls of Troop 6000 in New York City have met, and even exceeded, their sales goal. (Source: WCBS/CNN)

    The girls in the New York City-based troop have met, and even exceeded, their sales goal.

    The girls in the New York City-based troop have met, and even exceeded, their sales goal.

  • For the first time, Facebook spells out what it forbids

    For the first time, Facebook spells out what it forbids

    Tuesday, April 24 2018 5:46 AM EDT2018-04-24 09:46:09 GMT
    Wednesday, April 25 2018 12:54 AM EDT2018-04-25 04:54:02 GMT
    (AP Photo/Richard Drew, File). FILE - In this March 29, 2018, file photo, the logo for Facebook appears on screens at the Nasdaq MarketSite in New York's Times Square. For the first time, Facebook is making public, on Tuesday, April 24, its detailed gu...(AP Photo/Richard Drew, File). FILE - In this March 29, 2018, file photo, the logo for Facebook appears on screens at the Nasdaq MarketSite in New York's Times Square. For the first time, Facebook is making public, on Tuesday, April 24, its detailed gu...

    For the first time, Facebook spells out how it decides whether to delete your posts.

    For the first time, Facebook spells out how it decides whether to delete your posts.

Powered by Frankly