KTOK: Reynolds Says Programs Were A 'Scam'
By Jerry Bohnen/NewsRadio 1000 KTOK ~ Oklahoma City Representative Mike Reynolds figures he now has proof from the Oklahoma Tax Commission that at least two venture capital programs approved by the state legislature were a scam of taxpayers.
The Tax Commission is out with a new report on Qualified Investments in Small Business Capital Companies and Rural Small Business Capital Companies. And what it reveals has Representative Reynolds fuming how taxpayers helped investors avoid taxes.
The report on the Small Business Capital formation Incentive Act shows that investors had $13,120,928 in potential credits in 2009 and created only 21 jobs. the report on the Rural Small Business Capital companies revealed $41,330,776 in potential credits and the creation of 78 jobs in the same year.
Reynolds pointed out that nearly 50 of the 78 jobs were created at the Patriot Golf course in Tulsa, an exclusive private club built with the aid of tax credits. The Tax Commission also indicated that a review of 2009 income tax returns filed indicates that nearly $18 million of tax credits authorized by the Small Business Capital companies was used to reduce the tax liability of 558 income tax filers.
A review of 2009 income tax returns indciated that nearly $44 million of tax credits authorized under the Rural Venture Capital Formation Incentive Act reduced the tax liability of 973 income tax filers. Both programs have been declared unconstitutional by the attorney general's office.
Representative David Dank, co-chair of a legislative task force investigating the worthiness of tax credits, told KTOK this week he plans to ask the attorney general to challenge the legality of both programs with the Oklahoma Supreme Court.