Senate passes car tag reform measure

OKLAHOMA CITY (AP) -- The state Senate voted 37-11 Monday for a bill changing what one senator labeled as Oklahoma's "goofy" car<br>tag system.<br><br>In other action, the Senate approved a $4.8 billion

Monday, April 17th 2000, 12:00 am

By: News On 6

OKLAHOMA CITY (AP) -- The state Senate voted 37-11 Monday for a bill changing what one senator labeled as Oklahoma's "goofy" car
tag system.

In other action, the Senate approved a $4.8 billion general appropriations bill, ensuring state government can function at the start of the fiscal year even if lawmakers fail to reach agreements on a final state budget.

Republicans argued House Bill 2633 did not go far enough and said it could increase first-year car tag costs for some motorists.

The measure sets a flat fee of $85 for car tags up to five years old. The fee would be $45 up to 10 years and $15 each year thereafter.

It replaces the current 3.5 percent excise tax on the factory-delivered price with a 4.5 percent sales tax on the actual price, less trade-ins, discounts and dealer incentives.

Opponents said the $11 million reduction in car tag costs was insufficient, but Sen. Dick Wilkerson, D-Atwood, said any change would be an improvement.

"The goofiest thing I ever heard is that we pay taxes on a price that doesn't exist," Wilkerson said.

Gov. Frank Keating, who vetoed a similar bill a year ago, said the Senate vote "certainly indicates that everyone seems to agree that Oklahomans deserve genuine car rag relief."

He also said it did not go far enough.

"Oklahomans are overdue for real and meaningful car tag relief, and without the caveat of a tax increase," he said.

The measure was introduced in the House by Rep. Ron Kirby, D-Lawton, and sponsored in the Senate by Sen. Jim Maddux, D-Lawton.

Maddux said it would be hard to defend voting against the bill during the fall elections, since it would limit car tag fees to no more than $85.

"Stupid, why didn't you vote for that bill that would have saved me money?" is a question incumbents might face, Maddux said.

Sen. Charles Ford, R-Tulsa, said he had not heard a satisfactory explanation why the bill costs only $11 million, when it is estimated a GOP-sponsored plan with the same schedule of tag fee reductions would cost an estimated $138 million.

"This bill shifts the burden to the person buying the auto," said Minority Leader Mark Snyder, R-Edmond. He said it would penalize those who do not buy vehicles from car dealers.

The plan includes a provision giving an automatic $1,000 discount against the price of a car, in cases where purchasers do not have a trade-in.

Sen. Cal Hobson, D-Lexington, said Republicans are "playing games" by pressing for a $138 million car tag cut, especially
after voting for significant increases in the pay of teachers and state employees.

Hobson contends the money does not exist for such a cut, while funding other commitments and critical needs.

"You were responsible, but you spent the money," Hobson said. He said when Keating signed the $167 million teacher pay plan, the
likelihood of a huge car tag tax cut "went out the door."

"Why don't we have this as the last game?" Hobson asked. "We can't print money like Congress."

Four Republicans joined the Senate's 33 Democrats in voting for the bill. They were Grover Campbell of Owasso, Mike Johnson of
Kingfisher, Owen Laughlin of Woodward and Robert Milacek of Waukomis.

The bill is headed for a joint conference committee. In the House, 15 Democrats have called for a compromise tag reform measure
that cuts revenue by at least $25 million but not more than $50 million.

The big budget bill was the subject of a lengthy battle in the House last week as several Republicans raised objections. But there was no debate as it passed the Senate on a 40-8 vote.

The Senate derailed a plan that officials in the state's two largest cities say would keep them from protecting their drinking water from pollution.

Sen. Lewis Long, D-Glenpool, amended the measure to delete a provision that would force Oklahoma City and Tulsa to sell much of the land they own next to water supply lakes, some in distant counties.