New Oklahoma Car Tax Goes Into Effect July 1

Beginning July 1, you will have to pay more sales tax to buy a car in Oklahoma.

During the last days of the legislative session, lawmakers approved the one-and-a-quarter percent increase.

Right now, car dealerships across the state are suing the state to try to stop it from taking effect

They say lawmakers didn't have the votes to pass a new tax.

The state says this isn't a new tax, but a repeal of a sales tax exemption. 

"In this case it will ultimately put a lot of people on the sidelines that will say they just won't buy a vehicle," said Artie Brylev of Battison-Honda.

The state is counting on the extra revenue from the sales tax exemption to bring in an additional $123 million next fiscal year.