Showing posts with label HB 2348. Show all posts
Showing posts with label HB 2348. Show all posts

Thursday, June 22, 2017

Richardson to Challenge Tax Hikes in Supreme Court


Richardson to Challenge Tax Hikes in Supreme Court

Tulsa, OK, June 22, 2017–  Gary Richardson held  a press conference at the Tulsa Press Club today at 3 p.m. to announce his plan to file a lawsuit in the Oklahoma Supreme Court challenging the constitutionality of House Bills 1449, 2348, and 2433.

House Bill 1449 creates the “Motor Fuel Tax Fee” which charges a fee to owners of electric and compressed natural gas vehicles in order to make up for the fact that they don’t pay the motor fuel tax; House Bill 2348 effectively raises taxes on the millions of Oklahomans who take the standard deduction when filing their tax returns by uncoupling the state deduction rate from the federal rate; and House Bill 2433 adds a new 1.25% sales tax on motor vehicle sales on top on the existing excise tax already charged on car sales.  All three of these laws were enacted in violation of Article 5, Section 33 of the Oklahoma Constitution which was enacted by State Question 640 in 1992.
Transcript of press conference

Good afternoon ladies and gentlemen.  I’m here today to talk about the recent “tax increases” that were passed by our legislators.

Our state constitution reads in Article 5, that “the people reserve to themselves the power to propose laws and amendments to the Constitution and to enact or reject the laws and amendments at the polls, independent of the legislature.”

In 1907, when writing our State Constitution, our state founding fathers held that the will of the people is “sacred”. They made clear that the legislature only has the legislative powers expressly delegated to it and that all other legislative power is vested in the people exercised by the initiative and referendum processes. It was this holding and right to the use of an “initiative petition” that Norman, Oklahoma attorney Stan Ward headed a citizen’s group to gather enough signatures to put State Question 640, in 1992, to the vote of the people that amended Article 5 of our State Constitution requiring all “revenue increases” to have at least 3/4ths majority of the legislators to pass a tax or to be voted on by the people, that the bill was to originate in the State House, and not to be voted on in the last 5 days of the session.

This past legislative session, our leaders violated Article 5, Section 33 of our State Constitution when they passed House Bills 1449, 2348 and 2433.

In order to attempt to make up for the fact that owners of electric vehicles and compressed natural gas vehicles don’t pay the motor fuel tax, our state legislators passed House Bill 1449, attempting to create a “motor fuel tax fee”.  The authors of the bill knew this wasn’t a fee because they put “tax” in the name of their fee! House bill 1449 failed to get the 3/4ths majority needed to pass legislation that raises revenue in both the state house and senate and it was voted on in the last five days of session, both of which violate Article 5, Section 33 of the Constitution.

House Bill 2348 enacted by our state leaders raised taxes on the 70% of Oklahomans who take the standard deduction when filing their tax returns by freezing the state deduction rate, which normally is increased every year to match the federal rate.  Again, this bill didn’t get the 3/4th votes needed in the State House which violates Article 5, Section 33.

HB 2433 is an effort by our legislators to add a new sales tax of 1.25% tax on motor vehicle purchase.  This, on top of the existing excise tax already charged on car purchases.  This bill, if left unchallenged, would take close to $125 million from Oklahomans purchasing vehicles.  Again, the bill didn’t receive three fourths majority in either the State House or Senate, it was voted on in the last five days of session, and they added an emergency clause to the bill, all in violation of Article 5, Section 33 of our Oklahoma Constitution.

Folks, when our Legislators and Governor willfully disregard our State Constitution, it’s up to the people of our state to take a stand, which is why I am standing here today, for the citizens of our state.

Since 1981, I have been standing as a warrior for the citizens of our state.  First as a United States Attorney, appointed by President Reagan and then in the private practice of law.  I can think of no better way, at this time, to continue the fight than by challenging the constitutionality of these new taxes that are clearly in violation of Article 5, Section 33 of our State Constitution.

This is why I will be filing a law suit in the next few days, on behalf of the citizens of Oklahoma, asking the courts of Oklahoma to invalidate House Bills 1449, 2348 and 2433.  I have hired Norman, OK lawyer Stan Ward, again, the author of Article 5 Section 33, to be my attorney of record in this constitutional challenge.

We are a nation of laws and when our lawmakers refuse to follow our Constitution, then we the people must rise up and ask the courts to defend our Constitution.  It’s not "We the Legislators," it’s "We the People!"

Click here for audio of the press conference.

Monday, May 22, 2017

OCPA announces intent to file Supreme Court challenge of income tax increase


OKLAHOMA CITY (May 22, 2017) – Today, the Oklahoma House of Representatives passed House Bill 2403 by a vote of 56 to 40. The bill would restrict itemized deductions in order to increase personal income tax collections by more than $101 million annually.

Jonathan Small, president of the Oklahoma Council of Public Affairs, issued the following statement after today’s vote on HB 2403:

“House Bill 2403 is an unconstitutional tax hike on working Oklahoma families and senior citizens. Should House Bill 2403 become law, we intend to challenge its constitutionality at the Oklahoma Supreme Court as a violation of State Question 640.

“House Bill 2403 is designed to raise revenue for state government, but it passed the state House of Representatives with far less than a three-fourths vote. This makes it a blatant violation of Oklahoma’s Constitution, suggesting our state’s highest Court would strike it down.

“This bill is an income tax increase of over $101 million a year that targets Oklahomans who own a home with a mortgage, who pay property taxes that support local schools and other services, or who are being crushed by heavy medical bills.

“As part of the challenge we intend to file, we will likely also include Senate Bill 1606, which was a $97 million income tax increase that passed the state House last year with only 51 votes. In addition, we’ll likely include House Bill 2348, which passed the House earlier this session with only 51 votes and has already been signed into law.

“By capping the standard deduction, House Bill 2348 represents an income tax increase of more than $19 million annually, mostly on middle- and lower-income Oklahomans already struggling to make ends meet.

“After being hit in the early ‘90s with one of the largest tax increases in state history, Oklahoma voters rose up and amended our state’s Constitution with State Question 640.

“State Question 640 established strong protections for Oklahomans from being slammed with more tax increases in the future. Among these protections, it requires either a three-fourths supermajority vote in both legislative chambers, or a vote of the people, to adopt a tax increase.

“Here at OCPA, we’ve consistently offered hundreds and hundreds of millions of dollars’ worth of options for addressing the state’s budget shortfall and preserving core services without raising taxes on Oklahomans. We continue to stand with hard-working taxpayers in favor of efficient government services and in defense of the state Constitution.”

Link to the full text of State Question 640, passed in 1992 by Oklahoma voters on the statewide ballot: https://www.sos.ok.gov/documents/questions/640.pdf