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2 bills seek to remove Oklahoma auto sales tax

November 27, 2018

OKLAHOMA CITY (AP) — Two bills filed this week look to end Oklahoma’s automobile sales tax, which was enacted during that state’s budget crisis last year.

The Senate bills would halt the 1.25 percent sales tax on vehicles bought after July 1, 2019, The Oklahoman reported. The state’s excise tax would remain.

Republican Senate Appropriations Committee Chair Kim David, who authored one of the proposals, supported the tax when it first went into effect. She said it’s time to revisit the issue because the state is in a different place financially.

The sales tax was introduced during last year’s budget crisis to provide an additional revenue source. Oklahoma collected almost $131 million from the tax during the 2017-2018 fiscal year, according to the Oklahoma Tax Commission.

The state’s revenue situation has improved after lawmakers approved tax increases on cigarettes, fuel and oil and gas production.

State Sen. Julie Daniels of Bartlesville, who filed the other bill, has opposed the tax from the start.

“I see this as double taxation of an expensive purchase for the vast majority of Oklahomans,” Daniels said.

Oklahoma is one of eight states that taxes vehicles on the full price. Most states only tax the trade-in difference, said Rose Morgan, executive director of the Oklahoma Independent Automobile Dealers Association, which supports ending the tax.

“We’re surrounded by places where the taxation is different,” Morgan said. “Every dealer that comes to our counter is complaining about how slow things are.”

The Legislature will consider the bills when it meets in February.

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Information from: The Oklahoman, http://www.newsok.com

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