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July marks the beginning of several Oklahoma tax hikes to raise more than $400 million for teacher salaries and other budget priorities.

 

Drivers have begun paying an extra 3 cents per gallon on gas and 6 cents on diesel fuel as of Sunday. The increases are expected to affect travelers during the July 4 holiday.

 

Lawmakers reached a deal on increasing tax rates to pay for a teacher pay raise as pressure mounted ahead of a teacher walkout in the spring. Democrats agreed to support legislation raising the cigarette tax rate when it was bundled with the gross production tax increase approved in March.

 

The oil and gas production tax increased to 5 percent for the first three years a well operates. Cigarettes are taxed an additional dollar per pack.