For Immediate Release: May 11, 2010

Senate Passes Bill with Stronger Penalties for Retailers
Who Refuse to Honor Tax Break for Disabled Vets

A bill designed to increase penalties for retailers who refuse to honor a sales tax exemption for 100 percent disabled veterans emerged from a conference committee with even more teeth than before, and won unanimous approval by the full Senate on Tuesday. Sen. Jay Paul Gumm was the original author of legislation approved in 2005 granting a sales tax exemption to veterans with a 100 percent service-connected disability.

When the bill first became law, there were news reports and complaints from veterans that some retailers were not honoring the exemption. Such refusals forced veterans to file for reimbursement from the Oklahoma Tax Commission in order to receive the exemption. Gumm, a Democrat from Durant, said forcing veterans to take these additional steps was an inconvenience and insulting to them. In response, the senator passed legislation the following year instituting a $500 administrative fine.

“When we did that, compliance jumped to about 90 percent, but we still have at least one nationwide retailer who operates in Oklahoma that has continued to refuse to honor this exemption,” Gumm said. “Senate Bill 1321 will make that $500 fine a misdemeanor, plus those businesses that knowingly refuse to honor this exemption could lose their sales tax permit for seven days. That should get their attention and improve their willingness to comply with our law.”

In addition, communications between businesses refusing to honor the exemption and the State Tax Commission would be open and available to the public as well as members of the media.

“Between the misdemeanor, the public exposure of their noncompliance and losing the ability to operate in our state for a week, surely these hold-outs will get the message, obey the law, and finally give our disabled veterans the respect they deserve,” Gumm said.

SB 1321 now returns to the House of Representatives for a final vote before being sent to Governor Brad Henry for his signature.

For more information, contact:
Sen. Gumm: (405) 521-5586