In a swift and unanimous decision, the Oklahoma Supreme Court ruled that the
Cigarette Tax Smoking Cessation Fee passed by the state legislature and signed by Governor Fallin violated the Oklahoma Constitution.
Here’s the summary from the opinion (which can be read in full at this link):
Petitioners, who are manufacturers, wholesalers, and consumers of cigarettes, challenged Senate Bill 845, alleging that it is a revenue bill enacted outside of the procedure mandated in Article V, Section 33 of the Oklahoma Constitution. The parties agree that the passage of SB 845 did not comply with Article V, Section 33; so the case turns on whether SB 845 is the kind of “revenue bill” that Article V, Section 33 governs. Applying the test we have utilized since 1908, we conclude that the primary purpose of Sections 2, 7, 8, and 9 of SB 845 is to raise new revenue for the support of state government through the assessment of a new $1.50 excise tax on cigarettes and that, in doing so, SB 845 levies a tax in the strict sense. As such, Sections 2, 7, 8, and 9 of SB 845 comprise a revenue bill enacted in violation of Article V, Section 33 and are unconstitutional.
Continue reading: http://www.muskogeepolitico.com/2017/08/oklahoma-supreme-court-strikes-down.html
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|Mary Fallin’s proposed sales tax hike. Can’t read all the newly taxed areas?
Click to enlarge, or view at this link.
In her State of the State speech on Monday, Governor Mary Fallin unveiled her budget plan for FY2018. One of her proposals to close the budget gap was to dramatically expand Oklahoma sales tax collections to include services, something which has never been done as far as I’ve been able to find.
Mike McCarville of the McCarville Report said “it appears Governor Fallin wants to tax everything that isn’t nailed down,” and pointed out that Fallin is proposing “massive taxation with 164 new levies“.
According to Fallin’s estimates, applying sales tax to services would bring in $1,703,879,742 (that’s 1.7 Billion dollars with a B) to government coffers.