Legislation to modify the formula for determining motor vehicle excise tax on vehicle purchases passed unanimously this week in the House Appropriations & Budget Subcommittee for Finance.
House Bill 1389 is authored by Rep. Steve Bashore, R-Miami, who ran similar legislation last session.
“This is a pro-consumer bill that figures excise tax on new and used vehicles based on the net purchase price not the gross,” Bashore explained. “Oklahoma tax payers deserve to pay a fair and not inflated prices when purchasing a vehicle, and they deserve to keep more of their hard-earned tax dollars in their own pockets.”
If signed into law, the tax will be levied on the value of the vehicle determined by the actual sales price minus any discounts or trade-in credits. Currently, tax is levied on the sales price without regard to any discounts or trade-in credits.
The measure also requires Service Oklahoma to file a report with the governor, the speaker of the House, the president pro tempore of the Senate and House and Senate appropriations’ chairs stating the fiscal impact of the motor vehicle excise tax over the previous three fiscal years and future projections of motor vehicle excise tax collections.
HB1389 is now eligible to be considered before the House full Appropriations & Budget Committee.
Source: press release