OKLAHOMA CITY (AP) -- A bill to repeal the Oklahoma franchise tax that would cost the state an estimated $40 million annually has cleared a House committee.
The House Revenue and Taxation Committee voted 11-1 on Monday for the bill by Republican Rep. Leslie Osborn of Mustang.
A proponent of eliminating the state's income tax, Osborn said the state's franchise tax is "both immoral and illogical."
According to the Oklahoma Tax Commission, the franchise tax of $1.25 is levied on Oklahoma corporations "for each $1,000 of capital invested or used in Oklahoma." Out-of-state companies pay an additional $100 per year.
An analysis of Osborn's bill projects it will have an annual cost to the state of about $40 million.
If approved by the House Calendar Committee, the bill next heads to the full House.