House passes tax break for trucking fleets

Heavy trucks, including semis and trailers, cargo vehicles and oil-field frac tanks should be exempt from Oklahoma’s new automobile sales tax, House lawmakers agreed Thursday.

The measure now heads to the Senate, who met briefly Thursday without considering any legislation. House and Senate budget leaders met late in the day to continue negotiating a budget agreement, but neither chamber is scheduled to meet in public session Friday.

In her call for the special session, Gov. Mary Fallin asked the Legislature to free those kinds of purchases from a 1.25 percent vehicle sales tax that lawmakers approved in May. House leadership said that companies with large fleets, like Walmart and Love’s, will buy their trucks and trailers in other states.

Big trucks were never meant to be a part of the new tax scheme, lawmakers said.

“For 20 years, we have developed a reputation as a hub for tagging vehicles, and they bring the rest of their fleet. And they keep coming,” said state Rep. Jon Echols, R-Oklahoma City.

The bill passed by a vote of 63 to 20. Democrats opposed the measure and labeled it corporate welfare.

“We have somehow reached the conclusion that this is a state where we want to honor corporate welfare more than we want to honor the people of the state of Oklahoma,” said state Rep. David Perryman, D-Chickasha. “This is one more indication of that.”

Echols, however, said Oklahoma would lose jobs and revenue companies were forced to pay the tax on large trucks.

“The companies are leaving. This is not hard,” he said. “This is not corporate welfare.”

Even though the bill passed, there were not enough votes to make it go into effect immediately.

The House also advanced abillthatwouldplacespending limits on the Department of Human Services, but only if the agency’s $69 million shortfall is restored. It directs DHS to fully fund the ADvantage Home and Community-based Waiver Program, Adult Day Services, foster care, residential and group home care along with adoption subsidy rates. Lawmakers also want DHS to avoid cuts to the Senior Nutrition Program and other services.

“This is a limits bill that basically keeps them from cutting programs based on the amount of money that’s put back in,” said the bill’s author, state Rep. Pat Ownbey, R-Ardmore.