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Okla. House panel to consider axing franchise tax

OKLAHOMA CITY (AP) -- A plan to eliminate the state's franchise tax on Oklahoma businesses is quickly moving through the Oklahoma Legislature.

A Senate panel approved a bill on Tuesday, and a separate proposal is set for a hearing Wednesday in a House committee.

Both bills would get rid of the franchise tax that has been suspended in Oklahoma since 2010 but is scheduled to resume on July 1.

The Oklahoma Tax Commission says the franchise tax is levied on all corporations that do business in the state in the amount of $1.25 for each $1,000 of capital invested or used in Oklahoma. Foreign corporations are assessed an additional $100 per year.

A House estimate found that the franchise tax was expected to generate $40 million in the upcoming fiscal year.