Use taxes, election required
I’ve got a town wanting to enact a use tax ordinance to go along with their sales tax ordinance. I know 68 O.S. § 2705 requires a sales tax ordinance be approved by the voters before it’s effective, but their accountant is telling them a use tax ordinance does NOT need to be approved. I read § 2705 to require an election. Anyone else have any opinions on that? Any insight (especially with authority) is appreciated.
D. Michael Haggerty, II
Haggerty Law Office, PLLC
716 W. Evergreen St.
Durant, Oklahoma 74701
(580) 920-9060
The Oklahoma Constitution, Article 10, Section 20 says the Legislature cannot impose a tax for a city or town, so the Use Tax statute doesn’t do it. The next sentence in Section 20 says the Legislature can authorize them. I think 68 OS 2705 is the authorization, but is conditioned on a vote of the people. Sorry, I don’t have any other authority, but I am confident that would be my advice to my municipal clients.
Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.commailto:apixley@soonerlaw.com
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From: Oama oama-bounces@lists.imla.org On Behalf Of Michael Haggerty
Sent: Monday, April 6, 2020 9:20 AM
To: oama@lists.imla.org
Subject: [Oama] Use taxes, election required
Notice: This email is from an external source. Do not open attachments or click on links from unknown senders or unexpected e-mail.
I’ve got a town wanting to enact a use tax ordinance to go along with their sales tax ordinance. I know 68 O.S. § 2705 requires a sales tax ordinance be approved by the voters before it’s effective, but their accountant is telling them a use tax ordinance does NOT need to be approved. I read § 2705 to require an election. Anyone else have any opinions on that? Any insight (especially with authority) is appreciated.
D. Michael Haggerty, II
Haggerty Law Office, PLLC
716 W. Evergreen St.
Durant, Oklahoma 74701
(580) 920-9060
dmhaggerty2@sbcglobal.netmailto:dmhaggerty2@sbcglobal.net
I had someone answer me offlist – 2000 OK AG 35 says if the sales tax has previously been approved then the use tax doesn’t require approval. Thank you though.
D. Michael Haggerty, II
Haggerty Law Office, PLLC
716 W. Evergreen St.
Durant, Oklahoma 74701
(580) 920-9060
From: Mark Ramsey [mailto:MRamsey@soonerlaw.com]
Sent: Monday, April 6, 2020 9:59 AM
To: Michael Haggerty; oama@lists.imla.org
Subject: RE: [Oama] Use taxes, election required
The Oklahoma Constitution, Article 10, Section 20 says the Legislature cannot impose a tax for a city or town, so the Use Tax statute doesn’t do it. The next sentence in Section 20 says the Legislature can authorize them. I think 68 OS 2705 is the authorization, but is conditioned on a vote of the people. Sorry, I don’t have any other authority, but I am confident that would be my advice to my municipal clients.
Mark H. Ramsey
For the Firm
Taylor, Foster, Mallett,
Downs, Ramsey & Russell, P.C.
P.O. Box 309
Claremore, OK 74018
918-343-4100
918-343-4900 fax
mramsey@soonerlaw.com mailto:apixley@soonerlaw.com
The information contained in this electronic mail transmission (including any accompanying attachments) is intended solely for its authorized recipient(s), and may be confidential and/or legally privileged. If you are not an intended recipient, or responsible for delivering some or all of this transmission to an intended recipient, you have received this transmission in error and are hereby notified that you are strictly prohibited from reading, copying, printing, distributing or disclosing any of the information contained in it. In that event, please contact us immediately by telephone (918) 343-4100 or by electronic mail at mailto:postmaster@soonerlaw.com postmaster@soonerlaw.com and delete the original and all copies of this transmission (including any attachments) without reading or saving in any manner. Thank you.
From: Oama oama-bounces@lists.imla.org On Behalf Of Michael Haggerty
Sent: Monday, April 6, 2020 9:20 AM
To: oama@lists.imla.org
Subject: [Oama] Use taxes, election required
Notice: This email is from an external source. Do not open attachments or click on links from unknown senders or unexpected e-mail.
I’ve got a town wanting to enact a use tax ordinance to go along with their sales tax ordinance. I know 68 O.S. § 2705 requires a sales tax ordinance be approved by the voters before it’s effective, but their accountant is telling them a use tax ordinance does NOT need to be approved. I read § 2705 to require an election. Anyone else have any opinions on that? Any insight (especially with authority) is appreciated.
D. Michael Haggerty, II
Haggerty Law Office, PLLC
716 W. Evergreen St.
Durant, Oklahoma 74701
(580) 920-9060