Rep. Steve Bashore, R-Miami, has filed legislation for 2022 that would reconfigure how the base excise tax is determined when a vehicle is transferred and would allow a trade-in deduction allowance on the purchase price of a vehicle.
“Letting individuals to keep the money they’ve earned allows them to make their own decisions about how this income is best spent,” Bashore said. “It’s proven that lowering taxes and allowing this flexibility stimulates the economy.”
Bashore said House Bill 2986 would bring Oklahoma in line with how regional states, such as Kansas, Texas and Arkansas, calculate excise tax – based on the net cost of a vehicle rather than the gross cost. It also would lower the taxation amount that Oklahomans currently face when trading vehicles. The measure is estimated to save taxpayers about $47.3 million in associated motor vehicle excise tax from the deduction of the trade-in allowance.
Bashore said the state economy is doing exceedingly well with collections to the state treasurer coming in above estimates and above previous year revenue each month of the fiscal year so far. With a healthy state savings account for the eventual rainy day, he said it’s time to allow Oklahoma taxpayers to keep more of their hard-earned money.
Source: House release