House Approves Sales Tax Holiday Expansion

The House has voted to expand the sales tax holiday for parents making back-to-school purchases for their children.

House Bill 3358, by Rep. Randy Terrill, expands Oklahoma's"sales tax holiday," conducted the first full weekend of each August, to include a tax break on school supplies.

The legislation also reduces the franchise tax on small businesses and guarantees the income tax cuts promised by Governor Henry and the Legislature in previous sessions.

House Bill 3358 would repeal the state's 4.5 percent sales tax on the purchase of school supplies so long as the combined purchases total no more than $100.

The holiday would cover items including binders, book bags, calculators, tape, crayons, erasers, glue, highlighters, lunch boxes, notebooks, paper, pencils, pens, rulers and many other items.

The current tax holiday applies only to sales of clothing and footwear valued at less than $100 apiece.

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Electronic Products Tax Exemption Now Law

A tax incentive that could lure electronics plants to Oklahoma has been signed into law by Governor Brad Henry. House Bill 1544, by Rep. Susan Winchester, provides a sales tax exemption on the purchase of items used to remanufacture consumer electronic products.

"This law could herald the beginnings of a new industry in Oklahoma," said Winchester, R-Chickasha. "'Reverse logistics' has become a $50 billion-per-year industry in the United States and this sales tax break will make Oklahoma an attractive location for a remanufacturing facility."

The tax break is similar to one already on the books for other manufacturers. Businesses that remanufacture electronic products often repair previously sold goods that have proven defective and then resell them at a discounted price.

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