Not blowing smoke
State Treasurer Scott Meacham didn’t mince words when talking Tuesday to a group of American Indians about difficulties the state has had with some tribes and tobacco compacts.
The current situation is a “big old mess that we’re still in today,” Meacham told about 100 Indian tribal leaders and members who attended a meeting of the United Indian Nations of Oklahoma. The session was at a northwest Oklahoma City hotel.
Meacham, designated by Gov. Brad Henry to negotiate tribal tobacco compacts, said, “Nobody wants a resolution of this issue more than me.”
The state’s interest is to increase cigarette prices to get people to quit smoking and to earn revenue for health programs, he said.Nontribal retailers must use tobacco stamps that cost $1.03 per pack. Tribes with a tobacco compact pay an 86-cent rate, but there are several lower rates for various exceptions, including the 6-cent stamp for tribes that border
Nontribal retailers complain the lower tax rate for tribal stores puts them at a competitive disadvantage while tribal retailers argue their stores either are in remote locations or just sell cigarettes compared with most convenience stores at busy intersections that also sell fuel and food items.
“We absolutely don’t want to put anyone out of business,” Meacham said.A single rate would be simpler, he said.“It’s going to take a while to get to a single rate, though, because you have tribes with compacts that don’t expire that are on the Missouri border – they’re not going to want to give up their 6-cent border exception rate,” he said.
- Michael McNutt, Capitol Bureau
House approves expanding sales tax holiday
Parents would not have to pay sales tax on school supplies this fall under a bill approved today by House members.
Senate Bill 1149 would expand the state’s back to school sales tax holiday to include school supplies, school art supplies and school instructional materials. The exemption would be limited to items costing less than $100.
The legislation is estimated to save parents about $17 million annually once fully implemented, according to House staff.
“Parents should be able to buy basic school necessities like paper and pencils for their children without having to worry about additional taxes adding to the cost,” said Rep. Don Armes, R-Faxon, the House author of the measure. “As gas prices soar and health care costs increase annually, parents are feeling the financial pinch. This bill will give them some relief when it comes to getting their children ready for a new school year.”
The back-to-school sales tax holiday already includes a sales tax exemption for school clothes.
House members today voted for the bill, 83-13. It goes back to the Senate.
The purpose of the sales tax holiday is to counter similar tax breaks under way in Texas.
- Michael McNutt, Capitol Bureau
House supports getting out early
House members have passed Senate Concurrent Resolution 71 which allows the Legislature to adjourn a week earlier than the constitution requires.
The constitution states that legislators must adjourn the last Friday in May, which this year would be May 30. The resolution states it’s the intent of legislators to adjourn May 23.
“Now why would we want to go home early?” Rep. Ray McCarter, D-Marlow, asked House Speaker Chris Benge, the House author of the resolution.
“Keep in mind that this legislative session’s block of time gave us an extra week,” said Benge R-Tulsa. “We actually had 17 weeks as opposed to a typical 16-week session. … We should be able to finish in a regular 16-week time period. “
- Michael McNutt, Capitol Bureau
