5/16/14 - We are pleased to announce that Governor Mary Fallin has signed HB 1875 by Rep. Charles McCall (R-Atoka) and Sen. Clark Jolley (R-Edmond) this morning.
HB 1875 reduces the Oklahoma Tax Commission retention fee for municipalities and counties. It is a result of a two year joint effort between the Oklahoma Municipal League (OML) and the Oklahoma Tax Commission (OTC). Municipalities in Oklahoma contract with OTC to collect and remit their sales and use tax. For this service, the municipalities pay OTC a retainage fee ranging from 1% to 1 ¾% (most contracts are at 1%).
To offset any loss of funding to OTC, the bill allows OTC to capture any loss through the OMES/OTC Computer Enhancement Fund.
Every municipality in the state that collects sales tax benefits from this bill, allowing money that is rightfully due to the city or town to remain in their community to provide local services.
Special thanks to the Municipal Liaison Board and the Accountability team for all the work in finding this solution.
Talk to your Legislators about HB 1875
9/13 -The Oklahoma Tax Commission (OTC) and the Oklahoma Municipal League (OML) have verified that cities and towns are subsidizing the state’s sales and use tax enforcement. There is no disagreement on this point. HB 1875 will correct this inequity. All local officials are needed to secure passage of this bill. The Liaison Board will discuss this at OML’s Annual Conference. See below for more information about actions you can do.
The Liaison Board conducted an afternoon of training on September 18th to assist you in increasing sales tax collection for your community. This was a 3-part track at OML’s Annual Conference in Tulsa.
The three sessions were:
Enhancing Municipal Sales Tax: