Oklahoma’s Tax Cut on Wireless Technology

Based on the theory that wireless companies operating in Oklahoma would invest more in bringing new technology, such as cell phone towers, to the state, the Oklahoma House approved a tax cut on wireless technology. However, opponents of the bill called it a tax cut, saying passage would hurt public schools and counties, which receive money from ad valorem taxes.

The property tax rate on new wireless technology infrastructure in the state would be nearly cut in half under a bill narrowly approved by the Oklahoma House. Supporters said Senate Bill 1589 would encourage wireless companies to build new towers and install electronic equipment in Oklahoma to improve the quality and range of cell phones. Opponents of the bill called it a tax cut, saying passage would hurt public schools and counties, which receive money from ad valorem taxes. The House passed SB 1589 by a vote of 53-43. It needed 51 votes to pass.

But telecommunications companies are among a handful of industries including gas and electric utilities, telephone companies and railroads that are centrally assessed on ad valorem taxes, which mostly fund local schools. Most companies are assessed locally in each of the state's 77 counties. Reducing the ad valorem assessment rate will result in less money for schools, Kiesel and others argued.