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Oklahoma auto dealers challenge removal of tax exemption

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Posted at 4:35 PM, Jun 26, 2017
and last updated 2017-06-26 19:40:52-04

OKLAHOMA CITY (AP) -- A lawsuit alleges the removal of a sales tax exemption on vehicles sold in Oklahoma is unconstitutional.

The lawsuit filed Friday by the Oklahoma Automobile Dealers Association, an auto dealership and an individual alleges the removal of a 1.25 percent exemption on auto sales didn't receive the state constitutionally required 75 percent vote in both houses of the Legislature on revenue raising bills.

The bill passed during the last week of the session on a 52-24 vote in the House and a 25-18 vote in the Senate as lawmakers sought to close an $878 million budget hole. It was signed by Gov. Mary Fallin, who said in a statement that she hopes for a "timely" ruling by the court.

Spokeswomen for the attorney general and the Tax Commission said they can't comment on pending litigation.

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