Oklahoma Senate Bill SB1487

Oklahoma 2022 Regular Session

• Introduced: 2/7/22
• Refer: 2/8/22
• Report Pass: 2/8/22

Caption

Sales tax; allowing sales tax on motor vehicle to be paid in installments. Effective date.

Impact

If enacted, SB1487 will amend 68 O.S. 2021, Sections 1355 and 1361. The amendments emphasize that the sales tax for motor vehicles will no longer be required to be paid in a single lump sum. Instead, consumers can choose to fulfill their tax obligations in one or two payments within the designated periods. This adjustment may encourage more consumers to purchase vehicles, positively impacting sales within the automotive industry and the overall economy.

Summary

Senate Bill 1487 proposes amendments to the existing sales tax code specifically regarding the payment of sales tax on motor vehicles. The bill allows consumers to pay the sales tax in two installments, aligning the payment schedule with the motor vehicle excise tax due dates. This change is intended to ease the financial burden on consumers purchasing motor vehicles by providing a more flexible payment option, potentially making new vehicle purchases more accessible.

Contention

During discussions surrounding the introduction of SB1487, some concerns were raised regarding how the installation of a payment plan might affect the state's revenue stream. Opponents of the bill argue that allowing the tax to be paid in installments could lead to delays in tax revenue collection for the state. Critics also express worries that such changes may complicate the tax collection process or open avenues for tax evasion. However, supporters highlight the potential to boost vehicle sales and subsequent economic benefits.

Voting_history

SB1487 was discussed in the Senate Committee on Finance, where it received a favorable vote with 9 in favor and 1 opposed on February 8, 2022, indicating a degree of legislative support for the changes proposed.