On Nov. 26, the International Registration Plan (IRP) board voted to impose sanctions if Oklahoma failed to implement the amendments to IRP's rules on established place of business. The new rules were drafted by the Oklahoma Tax Commission and approved by Gov. Frank Keating only to be stymied by a temporary injunction issued in February. (See web news from Wednesday, Feb. 13.)
On Feb. 8, in response to a lawsuit filed Feb. 4, 2002, by ProCert Inc. and others, the state District Court of Oklahoma County issued a temporary restraining order restraining the tax commission from implementing, enforcing and administering the new rules. The new rules would have prohibited trucking companies from using third party agents to establish places of business in Oklahoma under the IRP.
According to a Feb. 15 article in the Oklahoman, in the past five fiscal years, Oklahoma received $68.7 million in taxes collected by other states from truckers. Almost half goes into the state's general fund. Another 35.46 percent is designated for schools. Imposing sanctions, or refusing to pass along Oklahoma's split of taxes collected from truckers, could cost the state of Oklahoma $1.24 million a month.
Will other states turn a cheek to the injunction and consider Oklahoma's failure to implement the new rules good enough reason to go ahead with sanctions? In a recent news memo to members, the Washington, DC, IRP office said based on a review of the original November motion and on the advice of legal counsel, the chair of the IRP Board of Directors has concluded that sanctions will not be imposed until the IRP board meets to reassess this matter.