Thursday, March 24, 2022

Senate passes Jech measures to modify vehicle sales tax and registrations

Senate passes Jech measures to modify vehicle sales tax and registrations

OKLAHOMA CITY – Oklahomans may soon have a little extra money in their pockets after buying a new car or truck. The Senate approved a pair of measures authored by Sen. Darcy Jech, R-Kingfisher, on Monday that would change how the state collects sales tax on vehicle purchases and how long citizens have to register that new purchase.

Senate Bill 1486 would modify the formula used to calculate how much sales tax is owed on the purchase of a vehicle. Under current law, sales tax is calculated on the initial cost of the vehicle, even if a trade-in allowance is used to lower the cost of the total purchase. Jech’s legislation would modify this calculation and base sales tax only on the difference of the price of the new vehicle and the value of the trade-in.

SB 1318 would extend the amount of time a buyer of a vehicle has to register the new purchase with the state by doubling the time frame from 30 to 60 days.

“Modifying the way we tax vehicle purchases will provide some tax relief to families while making this investment,” Jech said. “We know reliable transportation can be a barrier for many, so easing the burden of buying a car or truck by only taxing the total cost of the purchase could help many families needing a new vehicle. Additionally, giving more time for Oklahomans to register their car with the state and pay the taxes and fees that go along with it would help spread out the cost of the purchase. It would also ease the burden on tag agents still catching up from the backlog caused by COVID-19 and REAL ID software issues.”

The bills are now available for consideration by the House of Representatives. Rep. Carl Newton, R-Cherokee, is the House principal author of both measures.


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