Oklahoma auto dealers challenge removal of tax exemption - KSWO 7News | Breaking News, Weather and Sports

Oklahoma auto dealers challenge removal of tax exemption

[Source KSWO] [Source KSWO]

OKLAHOMA CITY (AP) - A lawsuit alleges the removal of a sales tax exemption on vehicle sales in Oklahoma is unconstitutional.

The lawsuit filed Friday by the Oklahoma Automobile Dealers Association, an auto dealership and an individual names the state and the state Tax Commission. It alleges the removal of a 1.25 percent sales tax exemption on auto sales didn't receive the state constitutionally required 75 percent vote in both houses of the Legislature on revenue raising bills.

The bill passed during the last week of the session on a 52-24 vote in the House and a 25-18 vote in the Senate as lawmakers sought to close an $878 million budget hole. It was signed by Gov. Mary Fallin.

Spokeswomen for the state attorney general and the Tax Commission said they can't comment on pending litigation.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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