Only five states have a higher sales tax rate than Oklahoma, according to a study by the Tax Foundation.

Also, comparing average local sales tax rates, Oklahoma has the fifth largest sales tax rate – 4.42 percent. Only Alabama (5.15%), Louisiana (5%), Colorado (4.73%) and New York (4.4%) have higher average rates. Five states – Alaska, Delaware, Montana, New Hampshire and Oregon – don’t have statewide sales tax but allow cities to collect sales tax.

Unlike Oklahoma, some states exempt groceries from sales tax.  Groceries are exempt from sales tax in Arizona, California, Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Rhode Island, South Carolina, Texas, Vermont, Washington, West Virginia, Wisconsin, Wyoming and Washington, D.C.

On November 12, Tulsa voters will decide the fate of a $639,000,000.00 tax increase for sales tax and property taxes. If approved, the sales tax increase will last 6.5 years.

Tulsans pay a sales tax of 8.517 percent with 4.5 percent going to the state, .367 percent to Tulsa County and 3.65 percent to the city.

The State of Oklahoma has an average 8.92 percent sales tax, according to the Tax Foundation.

The tax increase – if approved – would follow on the heels of the sales tax hike in 2013, which will expire. Tulsa voters first approved this sales tax increase in 2013, which totaled $918,700,000.00.

Sales tax is one of the most regressive forms of taxation because it disproportionately affects the poor, who pay a greater percentage of their income on taxable items.

There will be three propositions on the November 12 ballot:

  1. Streets and transportation (about 70 percent);
  2. Public facilities, parks, public safety (vehicles)
  3. Creation of a “rainy day” fund.

The tax increase package includes a “temporary sales tax” for streets, infrastructure, city equipment and facilities; a 0.05 percent permanent sales tax for a Rainy Day Fund; and property-tax financed bonds.

One of the most contentious proposals would be the “Community Development Priority Projects.” This would be a $9,000,000.00 “slush fund” that would allow city councilors to essentially spend a $1,000,000.00 in each of the city’s nine districts at their request. There are some restrictions and projects are subject to a vote of the Council.

In terms of a Rainy Day fund, Tulsa is already required to maintain a cash balance in case of a shortfall. Tulsans voted in 2010 to change the City Charter to allow creation of a Rainy Day fund and it has about $1 million in it currently. That money can only be spent if revenue projections for the next fiscal year are below the previous year. The November 12 proposal repurposes 0.05 percent of the city sales tax to the fund on a permanent basis. It has been projected to raise about $5,000,000.00 a year for the Rainy Day Fund.

The sales tax rate in the Tulsa city limits will remain the same – 3.65 percent (8.517 percent overall) – because the last “temporary sales tax” will expire. 

Property taxes in Tulsa city limits will go up. The City of Tulsa gets about 16 percent of property tax collected in the Tulsa city limits. Property tax received by the city is used for payment of General Obligation Bond principal and interest and for judgments issued by a court against the city.

The Sales Tax Overview Committee, made up of 21 citizens, meets monthly to glance over staff reports on how money is being spent. They report to the City Council.

The mayor and city councilors created the tax increase plan and then held a series of meeting for “public input.”

Here is a list of projects:

  • Park and Recreation – $30,000,000
    • $10,125,000 – Park Facilities Roof, HVAC, Infrastructure Rehabilitation/Replacement, Security Upgrades
    • $5,500,000 – Upgrade, Add, or Renovate Outdoor Park Play Amenities
    • $4,800,000 – Tennis Court Major Rehabilitation, Repurpose, or Replacement
    • $3,125,000 – Fred Johnson Park Rehabilitation and Replacement
    • $1,700,000 – Swan Lake Rehabilitation
    • $2,750,000 – Hill Park Improvements
    • $1,000,000 – Mohawk Park Rehabilitation and Renovation
    • $1,000,000 – Citywide Park System Parking Rehabilitation Tulsa Fire Department – $26,000,000
    • $23,000,000 – Fire Apparatus and Equipment
    • $3,000,000 – 911 Station Alert System Tulsa Police Department – $5,670,000
    • $4,500,000 – Police Helicopter Replacement
    • $660,000 – Computer Aided Dispatch (CAD)
    • $510,000 – Municipal Lockup Data Storage Economic Development Infrastructure – $6,500,000
  • Community Development Priority Projects – $9,000,000
  • Transit-MTTA – $18,000,000 (Critical Deferred Maintenance and Aging Vehicle Replacement, and Transit Infrastructure)
  • Permanent Rainy Day Fund Sales Tax – $19,000,000
  • Rainy Day Fund – $19,000,000
  • Improve Our Tulsa Total – $639,000,000
  • GO Bond Title Projects – $427,000,000
  • Streets and Transportation Systems – $427,000,000
    • $155,710,000 – Non-Arterial Street Maintenance and Rehabilitation and Associated Sidewalks
    • $140,090,000 – Arterial Street Maintenance and Rehabilitation and Associated Sidewalks
    • $64,000,000 – Street Widening/Street Capacity Improvements
    • $19,200,000 – Central Business District (CBD) Streets, Alleyways, and Arena District Master Plan Implementation
    • $11,100,000 – Citywide ADA Transition Plan Implementation and Update (Rights-of-Way)
    • $7,420,000 – Citywide Infrastructure Partnership Funds
    • $8,900,000 – Bridge Replacement and Rehabilitation Program
    • $5,330,000 – Transit-MTTA – Route 66 Bus Rapid Transit
    • $10,000,000 – Traffic Engineering
    • $5,000,000 – Bicycle-Pedestrian Infrastructure
    • $250,000 – Bond Issuance Cost Temporary Sales Tax Projects – $193,000,000
  • Capital Equipment – $50,750,000 (Police vehicles and lab equipment, heavy equipment, etc.)
  • City Facilities – $47,080,000
    • $8,000,000 – Parking Facilities
    • $7,000,000 – Citywide Public Facilities – Maintenance and Rehabilitation
    • $6,000,000 – Tulsa Zoo Entrance and Parking
    • $6,000,000 – Gilcrease Museum Mechanical, Electrical, Plumbing
    • $5,340,000 – Greenwood Cultural Center Facility Rehabilitation
    • $5,000,000 – ADA Improvements for City Facilities
    • $3,000,000 – ADA Improvements for City Parks
    • $2,460,000 – Citywide Public Facilities – Roofs
    • $2,080,000 – Animal Shelter Phase II
    • $1,000,000 – Police Courts Building
    • $1,000,000 – One Technology Center – Maintenance and Rehabilitation
    • $200,000 – 600 Civic Center – Equipment Relocation