HB 3162 strengthens efforts to collect sales, excise taxes on alcohol shipments
OKLAHOMA CITY (May 6, 2020) – As the Oklahoma Legislature considers a limited number of bills in a session interrupted by the COVID-19 pandemic, the Institute for Responsible Alcohol Policy is asking lawmakers to finalize a measure the House passed unanimously earlier this year.
House Bill 3162 helps ensure fairness and proper tax collection from out-of-state companies shipping wine to Oklahoma consumers. Under existing law, direct-to-consumer shippers are required to apply for sales and excise tax licenses; collect and remit those taxes; and report on their shipments.
However, some out-of-state companies are shipping alcoholic beverages into the state without collecting Oklahoma taxes. Their tax evasion hurts state and local budgets because it means less revenue for critical government services. The harm is magnified in a time when a dramatic economic slowdown has drastically reduced activity and tax collections.
Out-of-state shippers breaking the law also puts local businesses at a disadvantage.
John Maisch, president of the Institute for Responsible Alcohol Policy, encouraged the Legislature to move HB 3162 forward.
“The Legislature is facing a challenging budget shortfall, and this measure will help improve tax collections,” Maisch said. “As lawmakers consider critical policy measures, we hope they will send HB 3162 to the governor so we can increase fairness for Oklahoma businesses and strengthen state revenue.”
About the Institute for Responsible Alcohol Policy
The Institute for Responsible Alcohol Policy (IRAP) is a nonprofit corporation committed to educating policymakers and community leaders on the importance of the three-tier system and the responsible regulation of alcoholic beverages in Oklahoma.