New Sales Tax in Oklahoma City

By Brian Greer on Thu, May 24, 2018 @ 02:28 PM

Topics: sales tax news

As of January 1st, 2018, Oklahoma City instituted a new permanent sales tax hike of 1/4 cent.  According to the city's website, this means that a shopper pays an extra 25 cents in tax on a $100 purchase.  This is not a substantial hike but what makes it significant is that this is the first sales tax hike the city has instituted since 1976 and it is expected to raise the annual revenue by $26 million. 

Although taxes might seem negative for the consumer, they are important.  The additional taxes collected by Oklahoma City through the increased sales tax will help the city hire new policemen and firemen.  According to the city, their goal is to hire 129 additional police officers and 57 more firemen.  It will also allow them to repair some equipment and reinstate services that were cut in previous years.

Additionally, Oklahoma recently passed legislation requiring certain online retailers to collect state and local sales taxes.  Cities in Oklahoma benefit fiscally with increased sales tax collections as it improves their credit rating according to Moody's Investors Service.

Brian Greer

Written by Brian Greer