Art Therapy, Sales Tax Exemptions for Nonprofits Examined During Interim Studies

Experts tell lawmakers that art therapy can treat mental health issues; nonprofits could do more with sales tax exemptions, philanthropists say.

A pair of recent interim studies at the Oklahoma State Capitol highlighted issues important to Kirkpatrick Policy Group.

The first examined the benefits art therapy could provide to Oklahoma. “Art therapy can be used to reduce suspension and expulsion in our schools, helping more students complete their educations, and that’s critical for success throughout their lives,” said Senator Kevin Matthews (D-Tulsa), during a Senate Business and Commerce Committee meeting on October 23.

Art therapy is a regulated mental health profession in fifteen states and the District of Columbia. Ebony Easiley, founder and executive artistic director of Oklahoma’s first arts and wellness nonprofit, Art 4orms Foundation, told lawmakers that national studies attest to the use of art therapy in helping individuals with depression, posttraumatic stress, anxiety, and other mental health conditions. “It’s a preventative and strategic approach. No matter what kind of trauma you’ve experienced, you can communicate through art, enhancing emotional and mental well-being,” Easiley said. “When you make art, you’re using a part of your brain you don’t use when doing other activities.”

The use of art therapy could be particularly useful in lowering public school suspension and expulsion rates, which would benefit students in Matthews’ north Tulsa district, as well as other communities around the state, he said. “We learned that nationwide, high school suspensions cost $35 billion a year. The State Department of Public Education reported nearly 41,000 suspensions for the 2021-2022 school year, and it greatly impacts Tulsa Public Schools,” Matthews said. “By using art therapy to reach and connect with these kids, we can help them stay in school and graduate, which will set them on a path for success for the rest of their lives.”

The profession’s integrity would be protected by requiring art therapists to be licensed and could attract qualified professionals to live and work in Oklahoma, Matthews said. “Licensure would also provide a new fee revenue for our state and decrease government spending on health, social services, and the justice system.”

Stark hosts study on sales tax exemptions for nonprofits

Total nonprofit fundraising in Oklahoma is increasing but not as fast as the rate of inflation, an industry expert told members of the House Appropriations and Budget Finance Subcommittee on Revenue and Taxation during an interim study on October 23. “This means that multi-year grants don’t have the buying power they used to,” said Lauren M. Corbut, vice president of external affairs at the Oklahoma Center for Nonprofits.

Hosted by Representative Marilyn Stark (R-Bethany), the study examined the fiscal impact of giving sales tax exemptions to certain nonprofits. “Our state’s nonprofits do more with a dollar than any other group I know,” Stark said. “If they can keep more of their donations to better serve their clients, all of Oklahoma benefits. Let’s stop standing in their way and empower them to do what they do best.”

Stark introduced House Bill 1568 during the 2023 legislative session, which would provide a sales tax exemption to nonprofit organizations with $3 million or less in annual gross revenue. Under the bill, alcohol and tobacco purchases are not exempt. The bill passed the House 70 - 17 in March and can be considered in the Senate when the next session begins on February 5.

About 6,500 Oklahoma-based nonprofits filed income tax returns with the Internal Revenue Service, but those dollars are not stretching as far in the current economy. Corbut referenced a recent survey of Oklahoma nonprofits, which indicated that some organizations reported over half of their revenue going toward sales tax. Of $6.9 billion given in grants, about $5.2 billion is directly returned to the state’s economy, she said.

United Way of Southwest Oklahoma President and CEO Lauren Ellis told committee members that if her nonprofit were exempted from sales tax, it would cost the state less than $10,000, but that money could be used to provide 40,000 meals through the Lawton Food Bank.