Thursday, August 16, 2012

On The November 2012 Ballot – Intangible Tax Exemption


State Question 766 exempts certain intangible personal property from property tax. This measure would exempt all intangible personal property from property tax. No person, family or business would pay a tax on intangible property. The change would apply to all tax years beginning on and after January 1, 2013.

The law defined intangible property as cash on hand, deposits, stocks and bonds and the like.

Tax Commission analysis date May 22, 2012, indicates the resolution amends Section 6A of Article X of the Oklahoma Constitution to provide that, beginning January 1, 2013, intangible personal property will not be subject to ad valorem taxation or to any other tax in-lieu of ad valorem taxation.

The estimated revenue impact of removing intangibles from central/unit valued companies is a $50,139,999 loss of ad valorem revenue to local taxing jurisdictions.

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