Oklahoma Supreme Court set to hear challenges to revenue measures

OKLAHOMA CITY (KOKH) — The Oklahoma Supreme Court is set to hear arguments Tuesday on challenges to revenue measures passed during the 2017 legislative session.

The Supreme Court will hear oral arguments for three challenges at 9 a.m., 10 a.m. and 11 a.m. August 7. Each challenge goes up against bills passed near the end of last session during budget talks.

The day begins with a challenge of a 1.25 percent sales tax on Oklahoma motor vehicle purchase passed by lawmakers last session. The challenge was filed in June by the Oklahoma Automobile Dealers Association and argues that the bill is a tax increase. Oklahoma's constitution requires a 3/4 majority vote to pass tax increases. Those who supported the bill stated they removed a portion of a sales tax exemption instead of enacting a new tax.

At 10 a.m. the court will hear arguments from two major tobacco companies challenging the constitutionality of a tobacco cessation fee. The companies are asking the court to invalidate the law that assess a fee of $1.50 per pack of cigarettes to be paid by the wholesaler.

The final argument comes from gubernatorial candidate Gary Richardson. Richardson argues that three bills passed by the Oklahoma legislature are unconstitutional tax increases. He cites the 1.25 sales tax, a fee for electric and hybrid cars and prevent a rise in Oklahomans' standard income tax deduction.

Backers of the bills projected they would raise over $300 million in revenue for the state.

All three arguments will be streamed live on the Supreme Court's website.