Car Dealers Cry Foul Over New Tax Law

Another lawsuit has been filed in a constitutional challenge to one of the new tax laws created in the recent legislative session in Oklahoma.

It was filed by the Oklahoma Automobile Dealers Association along with Battison Honda in Oklahoma City and a Ponca City woman who contend the new 1.25 percent sales tax on Oklahoma motor vehicle purchases doesn’t pass constitutional muster.

It takes effect this weekend and the lawsuit challenging House Bill 2433 claims the bill did not receive 75 percent approval in the State House and Senate as required by the state constitution.

The lawsuit says in essence, it is a tax increase which therefore should have required the 75 percent approval rate. It also charges the legislature violated the constitutional prohibition of tax increases approved in the final five days of a legislative session.

“If enforced, the unconstitutional law will subject car buyers, including Caitlin Cannon, to significant additional expenses in the form of a new 1.25 percent sales tax, while decreasing sales for Oklahoma dealerships and members of OADA,” stated the lawsuit. Caitlin Cannon is identified as a Ponca City woman who had plans to make her first car purchase in July before going to college in the fall.

The first of L and J Acquisitions does business as Battison Honda. The Dealers Association has about 300 car, truck and heavy-duty truck dealers as members.

 

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