Budget & Tax

Gov. Henry on capital gains

April 7, 2018

In his Fiscal Year 2005 Executive Budget, former Gov. Brad Henry recommended a full exemption from the individual income tax for all capital gains resulting from Oklahoma business interests or property held for five years or more.

“A key to economic growth, and especially wage and income growth, is investment. Accordingly, any practice, policy or law that discourages investment in Oklahoma is not in the state’s best interest and should be changed. One such policy is the taxation of gains on investment in Oklahoma. This budget recommends a full exemption from the individual income tax for all capital gains resulting from Oklahoma business interests or property held for five years or more.

“Stock options are an important part of employee compensation at corporate headquarters. Under this proposal, the increase in the stock’s value would no longer be subject to state income taxation if held five years, providing an incentive for companies to locate in Oklahoma to give their employees the best tax environment in which to work. New business formation and investment will also be encouraged since future capital gains on the sale or recapitalization of successful business ventures will be free from taxation.”