Oklahoma Tax Commission

$_._.+__. ! shran Eighth Biennial Report of the OKLAHOMA TAX COMMISSION July 1, 1946 to June 30, 1948 JOE D. DUNN Chairman JOE M. WHITAKER M. C. CONNORS Vice Chairman Sec-Member OKLAHOMA CITY, OKLAHOMA EIGHTH BIENNIAL REPORT of the OKLAHOMA TAX COMMISSION to the GOVERNOR of the STATE OF OKLAHOMA for the Period beginning July 1, 1946 and ending June 30, 1948. J. D. Dunn J. M. Whitaker Chairman Vice-Chairman M. C. Connors Secretary. Prepared by the Research Division LETTER OF TRANSMITTAL. TO THE HONORABLE ROY J. TURNER, THE GOVERNOR OF THE STATE OF OKLAHOMA: HONORABLE SIR: The Oklahoma Tax Commission presents its report of the act ivities of the Commission for the biennial period beginning July 1, 1946 and ending June 30, 1948, in accordance with the provisions of Section 9, Title 68, Oklahoma Statutes 1941, for your consideration. Respectfully submitted, J. D. Dunn Chairman J. M. Whitaker Vice-Chairman M. C. Connors Secretary Oklahoma City, Oklahoma October 1, 1948 PERSONNEL OF THE OKLAHOMA TAX COMMISSION July 1, 1946 to June 30, 1948. MEMBERS OF THE COMMISSION: Chairman: J.Frank Martin July 1, 1946 to February 1, 1947 J.D. Dunn February 1, 1947 to June 30, 1948 Vice-Chairman: Ernest M. Black July 1, 1946 to February 1, 1947 J. M. Whitaker February 1, 1947 to June 30, 1948 Secretary: M. C. Connors February 1, 1947 to June 30, 1948 Secretary to the Commission: H. D. Canfield July 1, 1946 to February 1, 1947 Attorney to the Commission: E. L. Mitchell July 1, 1946 to February 11, 1947 General Counsel: C.W.King February 15, 1947 to March 27, 1948 R. F. Barry April 1, 1948 to June 30, 1948 1947 LEGISLATION 1947 LEGISLATION ORGANIZATION OF THE OKLAHOMA TAX COMMISSION: Chapter 1, Title 68, Session Laws of 1947, (Senate Bill No. 2) reorganized the Commission with the following major changes: Section 1. "The Tax Commission shall consist of three persons to be appointed by the Governor of the State of Oklahoma by and with the consent of the State Senate of the State of Oklahoma. The members of the Commission shall not be subject to removal from office at the will and pleasure of the Governor, but may be removed only for cause and in the manner provided by law for the removal of state officials not subject to impeachment under the provisions of Section 1, Article 8, of the Constitut- ion. Under this section the terms of the members are fixed at six years, with the first appointments to expire on the second Monday of the years 1949, 1951, and 1953. Thereafter the appointments shall be for a term of six years. Thus the terms are staggered and at no time will there be more than one new member on the Commission. The Governor shaU designate one member of the Commission as Chairman, one member as Vice-Chairman, and one member as Secretary, at the time the initial appointments are made. Section three of this act provides as follows: "The Tax Commission shall appoint a Chief Attorney to be de signated "General Counsel" and two other Attorneys each to be designated "Attorney", who shall serve at the will and pleasure of said Commission Provided, however, that it shall be mandatory upon said Commission to discharge any of said attorneys or general counsel upon the written request of the Governor of the State of Oklahoma". Under the provisions of this Act, Mr. J. D. Dunn was appointed Chairman, Mr. Joe M. Whitaker was appointed Vice-Chairman, and Mr. M. C. Connors was appointed Secretary. The appointments were effective as of February 1, 1947. ADVALOREM TAX: The outstanding legislation on this matter is Chapter 1A, Title 68, Session Laws of 1947 (Senate Bill No. 62). 8 1947 LEGISLATION This Act provided for assistance to be given the local assessing officers by the Oklahoma Tax Commission in matters of assessments: provided for necessary appropriations to be made by the local appropriating au thorities of sufficient monies with which to make assessments and class ification of property, and provided for appeals by the local Assessor from decisions of the County Board of Equalization in matters of assessments. CIGARETTE STAMP TAX: Chapter 16, Title 68, Session Laws of 1947 (House Bill No. 378) did not change the rate of taxation on cigarettes but gave greater authority to the collecting agencies in enforcing the collection of the taxes imposed. This will be found in the provisions granting the power of confiscation of prop erties, including vehicles, of those violating the provisions of the Act. Section 2 of the Act also changed the rate of discount allowed purchasers of the stamps, making such discount 4% of the face of the stamps purchased on all purchases in excess of one hundred dollars. MOTOR FUEL TAXES: Several acts were passed as corrective measures for the administration of present levies. The two-cent gasoline tax which expired December 31, 1946 was not re-enacted. The rate was thus fixed at five and one-half cents, consisting of the four-cent and one and one-half cent levies. Chapter 18, and 18B contain these provisions: Chapter 18C is a re-enactment of the additional one and one-half cent gas oline tax. This tax is in addition to the four-cent levy and was first levied in 1941. The basic change made in this act was the distribution of the one-cent tax which had previously accrued to the State General Revenue Fund. The change was to the State Highway Commission for the "construction of rural roads, and for the construction maintenance of county highways and bridges" and is to be used by the State Highway Commission "for the purpose of constructing rural roads in cooperation with the County Com missioners". Exemptions were also granted to make the exemptions to this tax conform with the exemptions granted under the four-cent tax. Fuels Excise tax rate of taxation was placed at 8/100ths. of one cent per gallon. INCOME TAX: This was perhaps the major enactment so far as it affects the individual taxpayer. A marked reduction was given to these taxpayers, both individual 1947 LEGISLATION 9 taxpayer. A marked reduction was given to these taxpayers, both individual and corporate. Chapter 21, Title 68, Session Laws of 1947 changed the rates of taxes as follows: Old Rates-Individual New Rates-Individual First $1000 of taxable Income 1 % First $1500 of taxable Income 1% Second $1000 2 Next $1500 2 Third $1000 3 Next $1500 3 Fourth $1000 4 Next $1500 4 Fifth $1000 5 Next $1500 5 Sixth $1000 6 Over $7500 6 Seventh $1000 7 Eighth $1000 8 All over $9000 9 Corporation rates were reduced from six per-cent to four per-centof the taxable income. A short form return was also prescribed for all whose gross income for the taxable year is not more than $5,000.00. Personal exemptions allowed after the determination of the net income as follows: Old Exemptions New Exemptions Single Persons $ 850.00 $1000.00 Heads of families 1700.00 2000.00 Dependents 350.00 500.00 Other amendments were made, particularly in order to make the State Law agree with the provisions of the Federal Income Act as near as possible, and the prepayment of taxes or the payment of taxes on an es timated taxable income was authorized to be made before the close of the calendar year in order to receive benefit of the payment in the Federal returns. ESTATE AND GIFT TAXES: Chapters 22 and 22A amended prior laws in making more clear certain terms and definitions contained therein but retained the rate of taxation. Some parts of the laws were designed to define provisions as to the Com munity Property Law enacted in 1945. PETROLEUM EXCISE TAX: This enactment differs from prior enactments in that the act becomes a permanent law, whereas prior laws were more or less two year statutes. 10 1947 LEGISLATION The usual enactment of positions for the Corporation Commission is lacking. Chapter 26, Title 68, Session Laws of 1947 places this rate of taxation at 1/100 of. one cent per thousand cubic feet on all natural gas and casing- head gas. Six-sevenths of the tax is to be placed in the Conservation Fund and one-seventh in the Oil Compact Fund. SALES TAX: Rate of taxation of the Sales and Use Tax was not changed in 1947 Legis lation. Chapters 27 and 29 of Title 68 contains amendments as to ex emptions granted under the act and clarifies the 1945 amendment as to the exemption granted on the sale of machinery and equipment for manufactur ing purposes. r Chapter 27A granted to certain Cities and Towns the right to levy a sales tax of not to exceed one per cent for a period of not to exceed thirty months. The power is limited to those cities or towns suffering a major catastrophe. The tax cannot be levied until authorized by a majority of the voters of such city or town voting thereon at a general or special election. SPECIAL FUEL USE TAX: The term "user" is defined in Chapter 18A, Title 68, to mean and in clude any person who uses or consumes special fuel within this State in an internal combustion engine for the generation of power to propel a motor vehicle upon the public highways of the State. This Act also prohibits the use of Special Fuels except from the regularly installed fuel tank of the vehicle. Fuels used to propel the vehicle cannot be connected to a cargo tank on a trailer or the vehicle, either directly or indirectly.

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