Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1075

Introduced
4/29/21  
Refer
5/3/21  
Report Pass
5/17/22  
Engrossed
5/18/22  
Enrolled
5/20/22  

Caption

Sales and use tax; eliminating sales and use tax on motor vehicles. Effective date. Emergency.

Impact

The bill's passage would significantly impact state taxation related to the purchase of motor vehicles, leading to potential revenue changes at both state and local government levels. This alteration may reduce the financial burden on consumers purchasing motor vehicles, promoting increased sales in the automotive sector. However, local governments may experience a decline in tax revenues that they previously collected on such sales, raising concerns over budget shortfalls and the capacity to fund local services that rely on these funds.

Summary

Senate Bill 1075 aims to eliminate sales and use tax on motor vehicle purchases in Oklahoma. By amending existing statutory provisions regarding exemptions from sales and use tax, the bill specifically states that sales from motor vehicle purchases will not be subject to sales and use taxes levied by cities, counties, or other jurisdictions. The bill emphasizes a uniform tax treatment for motor vehicles at the state level, with a portion of the Motor Vehicle Excise Tax still applicable. The legislation is positioned to streamline tax implications for motor vehicle acquisitions and enhance clarity for consumers and merchants alike.

Sentiment

The sentiment surrounding SB 1075 appeared to be mixed, as it gathered both support and opposition. Proponents argue that the measure is a beneficial consumer-friendly initiative aimed at making vehicle purchases more accessible and less costly. By removing sales taxes at local levels, it is believed that the bill could stimulate economic activity within the motor vehicle market. Conversely, opponents pointed out concerns regarding the ramifications of reduced tax revenues for city and county governments, arguing that it undermines local fiscal autonomy and could hamper services dependent on these funds.

Contention

A key point of contention within discussions around SB 1075 revolved around its implications for local governance and funding. Critics voiced that despite benefits for individual car buyers, the elimination of tax revenues could adversely affect community services such as public safety and infrastructure. Additionally, the proposal’s emergency status suggested urgency but also raised eyebrows about the decision-making process and engagement with stakeholders affected by potential revenue losses. The voting history reflects this polarization, with a significant number of nays recorded during the veto override, illustrating the division among lawmakers on the appropriateness and necessity of such legislation.

Companion Bills

No companion bills found.

Previously Filed As

OK SB1241

Sales and use tax; modifying exemption on sales of motor vehicles. Effective date.

OK SB1248

Sales and use tax; modifying exemption on sale of motor vehicles. Effective date.

OK HB1295

Revenue and taxation; motor vehicle excise tax; sales tax; motor vehicles; effective date; emergency.

OK SB1850

Sales tax; modifying sales tax on motor vehicles. Effective date.

OK HB3078

Revenue and taxation; motor vehicle excise tax; sales tax; motor vehicles; effective date; emergency.

OK SB983

Sales and use tax; modifying exemption for purchase of motor vehicle. Effective date. Emergency.

OK SB983

Sales and use tax; modifying exemption for purchase of motor vehicle. Effective date. Emergency.

OK SB454

Taxation of motor vehicle sales; limiting time period during which sales or use tax is applied. Effective date. Emergency.

OK SB984

Sales and use tax; modifying basis for calculation of gross receipts for sales tax and purchase price calculation for use tax on motor vehicles. Effective date.

OK SB984

Sales and use tax; modifying basis for calculation of gross receipts for sales tax and purchase price calculation for use tax on motor vehicles. Effective date.

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