Tax & Accounting Blog

Oklahoma Bill Would Allow Cities To Choose Their Own Tax Collector

Indirect Tax, Sales and Use Tax February 8, 2011

At the end of last year’s legislative season text was inserted into a bill requiring that municipalities contract with the Oklahoma Tax Commission for the collection of their sales tax. At the request of the City of Tulsa Sen. Brian Crain R-Tulsa has filed SB883 which, if enacted, would allow cities to collect their own taxes or to choose another party to do so.

Prior to last year’s bill being signed in to law the City of Tulsa had contracted with a private company for the collection of their taxes. Tulsa feels that they can do a better job for about half of what the State will charge.

There are however concerns about whether the State’s participation in the Streamlined Sales Tax would be affected by allowing municipalities to collect their own taxes. The Agreement requires a single point of collection and allowing cities to collect their own taxes would put the State out of compliance with that requirement.

The bill as introduced can be viewed here: