Oklahoma: Local Sales Tax Hike for $22 Million Debt
- Sales Tax News
- Apr 11, 2012 | Will Frei
Rogers County Oklahoma owes over $22 million to Material Service Corp., a mining company, for improperly annexing the company's land, according to Tulsa World. On June 26, in a special election, the citizens of Rogers County will vote whether to raise local sales tax by one-third-cent in order to pay off the legal penalty over the next 15 years.
Material Service Corp. filed action against the Oklahoma county in 2000, seeking a ruling that the city had improperly annexed property leased by Material Service. In 2009, a Mayes County jury ruled against Rogers County, and awarded Material Services $12.5 million. According to the Republic, the sum has increased to $22.1 million with interest and attorney's fees.
If the citizens of Rogers County do not vote to increase the 1.5% local sales tax by one-third-cent, then the county will increase property tax to pay off the debt. The property tax increase would be approximately 10 mills. Tulsa World explains that this means "...the increase in tax for property valued at $100,000 would be about $100 annually."