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Labor, Education & Pensions Issues

Key Bills & Bill Tracking

March 13, 2012 J

Below, find AFP-OK's position on several key pieces of legislation. The status of these bills will be updated each week, so check back often!

SB 1561 – Brinkley (R) – Internet Sales Tax

This bill is an affiliate and subsidiary tax bill, meaning that a company not physically located in Oklahoma but with affiliates in Oklahoma referring business to that company or owning (more than 80%) of a subsidiary corporation in Oklahoma would be required to collect and remit Oklahoma sales taxes – taxes that are already owed by the consumer in the form of use taxes.

AFP-Oklahoma opposes SB 1561 because it is, essentially, a tax increase.

STATUS: Passed Senate Finance Committee with title stricken, General Order - Senate

HB 3038 – Osborn (R) – Eliminate State Income Tax

Letter to Okla. Legislators & Gov. RE: Affiliates Tax

February 22, 2012 J

A letter was sent to every representative and senator yesterday, including one to Gov Fallin, opposing two internet tax bills, HB 2586 & SB 1561, which should be vehemently opposed.

These bills are both an affiliate and subsidiary tax bills, meaning that a company not physically located in Oklahoma but with affiliates in Oklahoma referring business to that company or owning (more than 80%) of a subsidiary corporation in Oklahoma would be required to collect and remit Oklahoma sales taxes. These taxes are already owned by the consumer in the form of use taxes.

This bill would also shift the burden of collection from the Oklahoma Tax Commission to the out-of-state (but affiliated/subsidiary) corporation. The Supreme Court has already ruled that these types of laws violate the Commerce Clause of the Constitution in Quill Corporation v. North Dakota.

Letter on Affiliates Tax – Feb. 2012

February 22, 2012 J

February 21, 2012

Dear Gov Fallin,

On behalf of Americans for Prosperity’s more than 23,000 activists in Oklahoma, I strongly urge you to oppose Senate Bill 1561 and House Bill 2586. These bills expand collection of sales and use taxes to corporations located outside of the physical borders of Oklahoma.

I urge you to oppose S.B. 1561 & H.B. 2586 when they come up for a vote.

Since the 1992 Supreme Court decision in Quill Corporation v. North Dakota, it has been recognized that states may only tax businesses with sufficient connection to a state (also known as “nexus”), typically defined by some physical presence. To meet this standard in Oklahoma, there must be a retail location, a warehouse, a distribution center or some other physical place of business employing individuals in the state.

Jolly: Cut Taxes – Journal Record

February 20, 2012 J

Oklahoma’s economy is finally showing signs of renewal. In 2011, personal income grew faster in Oklahoma than in any other state in the nation except the Dakotas. Our unemployment rate, 6.1 percent, is the eighth lowest in the nation. Actual tax revenues coming in have beaten revenue forecasts for seven consecutive months.

Lawmakers have an opportunity to lock in our path to economic prosperity. The proposal that can do this: lowering and gradually eliminating the income tax.

Lowering taxes boosts economies and increases residents’ incentive to work, produce, and save. When more money is left in the hands of individuals and businesses, they tend to buy more goods, invest in new equipment, and hire more workers.

The states with the best tax climates experienced an astounding 152 percent faster economic growth rate and created 445 percent more new jobs from 2000-2010 than those with the worst tax climates.

Phone “Fees” – A Growing Problem for Taxpayers

February 09, 2012 J

It’s hard to believe another state legislative session is already underway in Oklahoma. 2012 will prove to be an important year as lawmakers consider sweeping tax reforms that will eliminate Oklahoma’s income tax. While we encourage lawmakers to embrace these reforms to ensure long-term economic stability and an even better business climate, we hope they don’t adjourn without also passing reforms to address the growing fees all citizens pay on our monthly phone bills.

Each month, phone users are taxed to support subsidies like the Oklahoma Universal Service Fund, which benefit the bottom lines of traditional land-line telephone companies. At their own discretion, these companies access and use taxpayer money to make up for revenue losses. For years, Oklahoma has stood by and allowed this tax cycle to go on without forcing these companies to adjust their business plans or their product offerings.

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