The Oklahoma House passed a bill Wednesday to bring in around $123 million a year by modifying the sales tax exemption on car sales.
Car and truck sales are currently subject to a 3.25 percent excise tax. House Bill 2433 would also subject them to a 1.25 percent sales tax. Rep. Johnny Tadlock noted that’s only state sales tax.
"So, we want to tax the local people where I come from and send the money up to the state, and then continue to hurt county and local government?" Tadlock said.
Rep. Monroe Nichols questioned House Republicans’ priorities when it comes to new revenue.
"You have enough votes on your side to raise taxes on every ordinary person buying a car, but you didn't have the votes on your side to raise gross — we were 1 percent off. You didn't have enough votes at 1 percent more on gross production?" Nichols said.
Because motor vehicle sales are currently exempt from sales tax, Majority Leader Jon Echols said the bill doesn’t run afoul of State Question 640’s provision that prohibits passing revenue bills during the last five days of session.
"If you're going to remove a tax credit because you are removing a rebate or an exemption from the current rate, that is not a 640 question," Echols said.
HB2433 passed the House 52–47. The text of the bill was not available until just before it was taken up by the Joint Committee on Appropriations and Budget late Tuesday night.
