Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1850

Introduced
2/7/22  

Caption

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

Impact

The passage of SB1850 would notably affect Oklahoma's sales tax framework, particularly for the sale of motor vehicles. By removing the applicability of local sales and use taxes on such transactions, the bill seeks to create a more unified approach to sales tax calculations, making it easier for consumers and dealers alike. However, the exclusion of local taxes raises concerns among municipalities that rely on these revenues for funding local services and infrastructure improvements. There is a tension between state interests in standardizing tax administration and the fiscal needs of local governments.

Summary

Senate Bill 1850 proposes modifications to the sales and use tax regulations in Oklahoma, particularly regarding the taxation of motor vehicles. The bill amends existing statutes to adjust how gross receipts for sales tax and purchase prices for use tax are calculated. Notably, it exempts certain sales from local taxes, allowing sales taxes on motor vehicles to be governed solely by state regulations. The changes aimed at simplifying tax calculations for vehicle sales represent a significant update to the state's existing tax code as it pertains to automotive transactions.

Contention

Critics of SB1850 have raised concerns regarding the impact that the bill may have on local governments' revenue streams. Opponents argue that by centralizing taxation authority at the state level for motor vehicle transactions, local jurisdictions may lose needed funding for vital community services. The opposition also underscores the potential for decreased local control over taxation and budgetary decisions. Proponents of the bill defend it as a necessary step to streamline processes and improve efficiency in tax collection, arguing that it minimizes confusion and promotes a more business-friendly environment.

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 HB3078

Revenue and taxation; motor vehicle excise tax; sales tax; motor vehicles; 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.

OK HB1295

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 SB1075

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

OK SB1492

Sales tax; modifying basis of gross receipts for motor vehicle; deduct trade-in value. Effective date.

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