Oklahoma Court Denies Stay In Lawsuit Challenging Auto Sales Tax Hike

The Oklahoma Supreme Court has denied a request to stop the state from collecting a new 1.25 percent tax on automobile sales.

The court on Friday denied a stay requested in a lawsuit by Republican gubernatorial candidate Gary Richardson, allowing the tax to go into effect on Saturday.

“I’m extremely disappointed that the justices didn’t stay the implementation of 1.25% sales tax on auto sales,” Richardson said in a news release.
 
“This decision will depress auto sales and potentially stall our fragile economy hurting small businesses and consumers across the state. This is why I filed the lawsuit to challenge the car sales tax in the first place.”

6/22/2017 Related Story: Gubernatorial Candidate To File Suit Over Legislative Approved Tax Hikes

The lawsuit also challenges new fees on electric and compressed natural gas vehicles that's to go into effect November 1, and a law uncoupling Oklahoma's standard deduction rate for income tax returns from the federal rate.

The court has scheduled oral arguments in the lawsuit for August 8, the same day it will hear arguments in a lawsuit by auto dealers that also challenges the vehicle sales tax and a lawsuit by tobacco companies challenging a $1.50 per pack fee on cigarettes.

6/8/2017 Related Story: Lawsuit Claims Oklahoma’s Cigarette Fee Is Unconstitutional

The Associated Press contributed to this report.