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December 12, 2013

New law could be boon for municipal sales tax receipts

(Continued)

NORMAN —

“We are up 18.6 percent on the 3 percent city sales tax,” Corbett said.

Cleveland County receives a half-penny sale tax for the jail fund. Those collections are up as well, with the county’s jail account receiving $667,886 in sales tax — a 10.4 percent increase over last year.

Cleveland County use tax was $31,844 — a 15.5 percent increase.

Norman and Moore could benefit even further by pending legislation. A long-term solution to the administrative cost charged by the OTC is being proposed by House Bill 1875, which the Oklahoma Municipal League is supporting.

“It is regrettable that Norman is not at the table to advocate for cities on important issues such as this,” Rosenthal said. “I’ve been advised that HB 1875 could result in more than $300,000 in additional revenue for Norman, if adopted. It is certainly my hope that our legislators will be supportive. It’s not a tax increase, it’s a recalculation.”

Norman pulled out of the OML about two years ago. The organization is the primary lobby for municipalities with state and federal lawmakers.

The OML reports that working with OTC, the agencies have verified that cities and towns are subsidizing the state’s sales and use tax enforcement.

“There is no disagreement on this point,” according to the OML.

Rep. Charles McCall and Sen. Clark Jolley are the authors of HB 1875, which was introduced in the 2013 session and will be heard early in the 2014 session. The effective date of the bill would be July 1.

HB 1875 establishes a maximum retention fee cities and towns pay at 0.5 percent of a municipality’s sales tax collections. This is a reduction from the rate cities and towns now pay, ranging from 1 percent to 1.75 percent.

Joy Hampton

366-3544

jhampton@

normantranscript.com

 

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