The Woodward News

Local News

September 15, 2013

City officials want sales tax loophole closed

Woodward, Okla. — City leaders are poised to take a stand against  a sales tax issue favoring online-only retailers.

Woodward City Commissioners are slated to consider a resolution in support of House Resolution 684 regarding marketplace fairness during their regular meeting Monday at 7 p.m. in City Hall.

The city's resolution objects to what it refers to as a "tax loophole" it believes was created by a 1992 Supreme Court ruling which held that businesses selling over the Internet only had to collect sales taxes for purchases in states where the business maintained a physical location.

The resolution states "many out-of-state companies have been using a tax loophole and do not charge sales taxes at the time of purchase."  The resolution implies this has negatively impacted Oklahoma municipalities, such as Woodward, which depend on sales tax collections "to fund all their basic services: police, fire, roads, parks, libraries, road maintenance and much more."

Because of this the city commissioners, through the resolution, are looking to ask the US Congress Judiciary Committee to allow a hearing on the currently pending HR 684, which "will close this loophole for out-of-state online companies and will end the special tax deal that favors online-only retailers above all retailers."

In other business during Monday's meeting, city commissioners are slated to consider:

• granting an easement to OG&E for a new service line for the new softball fields at Crystal Beach Park;

• the final preliminary engineering report relative to the 34th Street enhancement project, which will be submitted to the Oklahoma Department of Transportation for review; and

• entering into a major accounts agreement with ADP Workforce Now for management services related to payroll processing, time and attendance, human resources/benefits, and talent/recruitment.

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