Auto dealers’ lawsuit challenges Oklahoma’s fresh vehicle sales tax
The Oklahoma Automobile Dealers Association has filed a state Supreme Court lawsuit challenging the constitutionality of a fresh 1.25 percent sales tax on Oklahoma motor vehicle purchases.
The fresh sales tax was approved by the Oklahoma Legislature during its most latest session and is scheduled to take effect July 1.
The automobile dealers contend House Bill two thousand four hundred thirty three amounts to a tax increase. They say the Oklahoma constitution requires the Legislature to obtain a three-fourths majority vote to pass a tax increase and that this bill did not pass by that large a margin.
They also contend the Legislature violated a constitutional prohibition against approving a tax increase measure during the final five days of a legislative session.
Under current Oklahoma law, residents pay a Three.25 percent excise tax when they buy fresh or used vehicles, but are not required to pay state and local sales taxes that apply to most other purchases. The Three.25 percent excise tax also would proceed to be collected under the fresh law.
Backers of the bill argued that they were removing a portion of a sales tax exemption rather than enacting a fresh tax, and contended that a three-fourths vote was unnecessary.
The Oklahoma Automobile Dealers Association represents about three hundred fresh car, truck and heavy-duty truck dealers.
Joining the association in filing the lawsuit were L and J Acquisitions, which does business as Battison Honda, and Caitlin Cannon. Cannon is described in the lawsuit as being a Ponca City resident who is planning to buy her very first car in July, before injecting college in the fall. They are being represented by Crowe & Dunlevy, an Oklahoma City law rock-hard.
"If enforced, the unconstitutional law will subject car buyers, including Caitlin Cannon, to significant extra expenses in the form of a fresh 1.25 percent sales tax, while decreasing sales for Oklahoma dealerships and members of OADA," the automobile dealers said in the lawsuit.
The Oklahoma Attorney General’s Office normally defends the state in lawsuits challenging the constitutionality of fresh laws.
Terri Watkins, communications director for state Attorney General Mike Hunter, said attorneys in that office had not yet received a copy of the lawsuit and were not in a position to comment.
Gubernatorial candidate Gary Richardson announced last week that he, also, plans to challenge the constitutionality of the fresh state sales tax on motor vehicle purchases, along with two other fresh revenue raising measures.
Auto dealers lawsuit challenges Oklahoma s fresh vehicle sales tax
Auto dealers’ lawsuit challenges Oklahoma’s fresh vehicle sales tax
The Oklahoma Automobile Dealers Association has filed a state Supreme Court lawsuit challenging the constitutionality of a fresh 1.25 percent sales tax on Oklahoma motor vehicle purchases.
The fresh sales tax was approved by the Oklahoma Legislature during its most latest session and is scheduled to take effect July 1.
The automobile dealers contend House Bill two thousand four hundred thirty three amounts to a tax increase. They say the Oklahoma constitution requires the Legislature to obtain a three-fourths majority vote to pass a tax increase and that this bill did not pass by that large a margin.
They also contend the Legislature violated a constitutional prohibition against approving a tax increase measure during the final five days of a legislative session.
Under current Oklahoma law, residents pay a Trio.25 percent excise tax when they buy fresh or used vehicles, but are not required to pay state and local sales taxes that apply to most other purchases. The Trio.25 percent excise tax also would proceed to be collected under the fresh law.
Backers of the bill argued that they were removing a portion of a sales tax exemption rather than enacting a fresh tax, and contended that a three-fourths vote was unnecessary.
The Oklahoma Automobile Dealers Association represents about three hundred fresh car, truck and heavy-duty truck dealers.
Joining the association in filing the lawsuit were L and J Acquisitions, which does business as Battison Honda, and Caitlin Cannon. Cannon is described in the lawsuit as being a Ponca City resident who is planning to buy her very first car in July, before coming in college in the fall. They are being represented by Crowe & Dunlevy, an Oklahoma City law rigid.
"If enforced, the unconstitutional law will subject car buyers, including Caitlin Cannon, to significant extra expenses in the form of a fresh 1.25 percent sales tax, while decreasing sales for Oklahoma dealerships and members of OADA," the automobile dealers said in the lawsuit.
The Oklahoma Attorney General’s Office normally defends the state in lawsuits challenging the constitutionality of fresh laws.
Terri Watkins, communications director for state Attorney General Mike Hunter, said attorneys in that office had not yet received a copy of the lawsuit and were not in a position to comment.
Gubernatorial candidate Gary Richardson announced last week that he, also, plans to challenge the constitutionality of the fresh state sales tax on motor vehicle purchases, along with two other fresh revenue raising measures.