House OKs web sales tax earmarked for education
A last-minute amendment on the House floor secured more than $20 million for public education on a bill requiring third-party online retailers to collect sales tax.
The special session House Bill 1019XX requires those retailers, such as entities using Amazon to sell their products, to either collect and remit sales tax or follow the state’s requirement that they notify each customer, each year, how much state tax they owe for shopping online. Amazon has already begun collecting tax on its own sales and the bill would expand that duty to third parties. The law is written in a way that collecting tax at the point of sale is easier than following the second route of notification.
After a break in discussion of the bill, lawmakers returned to the floor with an amendment that diverts most of the money to the school funding formula in the first year and the full estimated amount, $20.5 million, in following years.
“This is the first step in ensuring that we will have continued funds going to education,” Floor Leader Jon Echols said of the amendment, which was developed with the Democratic minority.
The Oklahoma Education Association, which has led thousands of teachers on a strike at the Capitol and has argued for more education funding, praised the decision.
“Educators, parents and students have come to the Capitol by the tens of thousands this week to stand up for Oklahoma students.
Tonight’s House vote is evidence of the momentum created by our passionate voices and tireless advocacy.
House Bill 1019XX provides an additional $20 million in dedicated funding for students. This is a win for students and educators and signals major progress toward funding the schools our students deserve,” said OEA President Alicia Priest.
“Our win for kids today was only possible because of the energy educators and students have brought to the Capitol this week. But our elected leaders have more work to do for our students. We look forward to letting the Senate hear our voices on this measure and HB 1013XX, known as ‘Ball and Dice.’ Together, these two measures will nearly double the increase in funding for Oklahoma students.”
Despite his victory in securing the revenue for public schools, state Rep. Scott Inman, D-Oklahoma City, argued the Legislature should do more.
He has said the funding plan that includes new cigarette, fuel and gross production tax revenue will won’t fully cover the teacher raise and education spending approved last Thursday, leaving schools struggling to reduce class sizes. “Even with this plan, there’s not enough money to fully fund the promise they made you last week,” he said. “If you think the only reason you’re here is to pass a $20 million Amazon tax and go home, then next year you’ll still have $150 million fewer dollars with no new money to hire a teacher.”
If you think the only reason you’re here is to pass a $20 million Amazon tax and go home, then next year you’ll still have $150 million fewer dollars with no new money to hire a teacher.”
Rep. Scott Inman R-Oklahoma City