Bill would remove sales tax on motor vehicle purchases

OKLAHOMA CITY — Rep. Justin Humphrey, R-Lane, has filed a bill for the upcoming special session that would remove the 1.25% sales tax on motor vehicle purchases.

The move would leave in place the 3.25% excise tax paid on such purchases.

“We’ve effectively been double taxing Oklahomans who buy a motor vehicle,” Humphrey said. “With the governor’s special session call to consider tax cuts, this should be an easy one to consider.”

Humphrey explained that five years ago, during the teacher walkout, legislators raised what was determined at the time to be a fee on the purchase of motor vehicles in order to help pay for a teacher pay raise.

“Now, we’re showing state coffers are flush with cash, and teachers have had several pay raises. Many, including the governor, are calling for a way to lower taxes and relieve inflation for Oklahomans. Removing this regressive tax is one way to accomplish this goal.”

In 2018, the Legislature passed a measure that instituted a 1.25% sales tax on motor vehicle purchases in addition to the existing 3.25% excise tax already assessed, bringing the total rate to 4.5%.

Humphrey’s House Bill 1015XX includes an emergency clause that would make the removal of the 1.25% sales tax on motor vehicle purchases effective upon the governor’s signature.

The House will convene the Second Extraordinary Session of the 59th Legislature at 11 a.m. today.