Supreme Court Strikes Down Electric Vehicle Fee

Senator Bergstrom issues statement on Supreme Court’s ruling on electric, hybrid vehicle tax

On Tuesday, the Oklahoma Supreme Court struck down, in a 6-3 decision, a fee that would have been charged to drivers of electric and hybrid vehicles, declaring it an unconstitutional tax.

Senator Micheal Bergstrom, R-Adair, agrees with the court’s decision.

“The Oklahoma Supreme Court made the right decision here,” said Bergstrom, “but it will cut this year's revenue by about another $400,000, which probably means more cuts in the budget.”

Bergstrom argues that since the legislation was clearly intended to replace revenue with the $100 fee on electric vehicles and $30 on hybrids, it should have required the same 75 percent support in both the House of Representatives and the Senate as required by the state constitution (as amended by the voters in 1992 with State Question 640) for tax increases.

“Those who drive electric vehicles on Oklahoma roads should help pay to maintain those roads, but they don’t since they do not pay fuel taxes like everyone else,” Bergstrom said. “However, this bill should have been passed as a tax and not as a fee.”

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More To Governing Than Just Raising Taxes

Capitol Considerations 

by Senator Micheal Bergstrom

           

       There is more to governing than just raising taxes.

Now don't misunderstand me, Oklahoma has to pay its bills, but just opening the tax spigot is not the answer.

Recent press reports revealed that Governor Fallin presented the state's legislators her grand bargain, a package of more than $560 million in new taxes so the state can pay its bills.  It is neither grand nor a bargain. It also does not align with her stated goals in her call of the legislature into special session.

(The special session was recessed after three days and, hopefully, will only be returning when there is a realistic proposal for legislators to vote on, which means the cost to taxpayers is also on hold.)

In the governor's call, she wanted to address "the immediate budget shortfall created by the loss of the $215 million cigarette fee revenue" due to a state supreme court decision overturning the fee. She called for long-term solutions for future budget shortfalls, "consolidation and other efficiencies in all areas of state government," a revision of the 1.25 percent sales tax on commercial vehicles, and a teacher pay raise.

All excellent objectives. So how did the grand bargain address those matters?

Her plan called for taxing all forms of tobacco at higher rates, increasing the initial gross production tax (GPT) on new wells from 2 percent to 5 percent, raising the income tax rate on those earning $250,000 or more, raising motor fuel taxes six cents a gallon, taxing a variety of "luxury services," and eliminating the wind manufacturer tax exemption.

Almost all of these taxes require a 75 percent vote in both houses to pass.

And by the way, for those who see raising the GPT as the salvation for our budget, raising it to 5 percent adds just over $21 million to the state's coffers and taking it all the way to 7 percent would only yield about $35 million. It is not the panacea many are claiming it to be.

Still, it would seem that the governor's long-term solution for future budget shortfalls is to raise taxes. The only efficiency in her plan is a down the road forced consolidation of the administrations of smaller schools throughout the state.

Where are the "efficiencies in all areas of state government"?

Yes, we need to pay our bills, but this plan is not the solution.

       I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem.  Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov.   If you visit the Capitol, we are located in Room 527A.

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Is Everyone Feeling Special?

Capitol Considerations 

by Senator Micheal Bergstrom

           

       The special session has set sail.

The question is, will this ship accomplish its mission, or be so tossed and battered by the storms of political squabbling that it returns to port with nothing in its holds?

On Monday, the Governor of the Great State of Oklahoma had the legislature convene for an extraordinary session to deal with the $215 million budget shortfall created by the Oklahoma Supreme Court’s decision to overturn the cigarette fee. (A good decision, by the way.) She also requested that we deal with inefficiencies in state government, clarify exemptions on the new 1.25 percent sales tax on vehicles, come up with the money for a teacher pay raise, and work on solutions to problems in the budgeting process.

On Wednesday we recessed until further notice with nothing to show for our efforts.

Well, that’s not entirely true. While many are complaining about the money being spent on the special session, the first two days were necessary and expected to be uneventful. Oklahoma’s constitution does not allow the legislature to vote on bills during the first two days of session. So now those days are out of the way.

Anything else to report?

Not much.

I have filed two bills for this session. The first is a soft cap on the payouts for wind generation tax credits. That is, electricity produced from zero-emission facilities. The cap begins at $50 million for the first two years and gradually steps up in the following years until the credit is paid in full. In other words, if there are $75 million in credits claimed during those years, they would receive 67 percent of the claim, and then use the remaining credit in future years.

This limits the state’s liability so we can budget without fear of surprises (since it is possible for claims to exceed $100 million a year), yet still pay over time the full amount of credits promised the wind industry.

The second bill cuts by 25 percent, for two years, many business tax credits.

Both bills are works in progress, but the idea is to help us fund necessary government services while keeping the budget in check, at least a little.

Other bills have been filed that I am hoping leadership will consider in order to try to get the budget even more under control. Next regular session I hope we will be returning to line item budgeting to force department heads to make cuts that are appropriate, and not the ones that cause pain to the state’s citizens.

Hopefully common sense will prevail during this session.

      I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem.  Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov.   If you visit the Capitol, we are located in Room 527A.

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Budgets are an issue, Federal and State

Capitol Considerations 

by Senator Micheal Bergstrom

           

           Budgets.

           I’m spending a lot of time looking at budgets.

           Here in Oklahoma there is the state budget, which must now be balanced since the Oklahoma Supreme Court has overturned the cigarette fee that was passed during the last legislative session. It is a $215 million hole, and it is a hole in funding to three agencies, which, when we consider the loss of matching federal funds, will result in a $500 million budget failure.

           For those agencies, Oklahoma Health Care Authority (OHCA), Oklahoma Department of Mental Health and Substance Abuse Services (ODMHSAS), and the Oklahoma Department of Human Services (OKDHS) and for the Oklahomans these agencies serve, this will be a devastating shortfall if not corrected. That is why we will be returning for a special session on September 25.

           I have also been looking at the federal budget.

            From September 12-15, I was in Phoenix, Arizona attending the Balanced Budget Amendment (BBA) Planning Convention as a delegate. This gathering prepared the rules and guidelines for a future Article V Convention of the States for proposing an amendment.

           Just one amendment. A balanced budget amendment.

           The national debt just surpassed $20 trillion and it is projected to increase by a trillion dollars a year for the next decade. We are borrowing trillions of dollars from foreign countries. We have had the Federal Reserve Bank printing money to pay our bills. We have looted all of our Federal trust and pension funds, including our military retirement funds, to pay for our government. This is just not sustainable.

           Since Congress has failed to restrict its spending, it is up to the states to act, and that is what we are doing. Article V of the United States Constitution provides two methods for proposing amendments to the Constitution. It may be either a resolution adopted by two-thirds of both houses of Congress, or by the states at a convention called for that purpose. At this time 27 states, including Oklahoma, have signed on to the convention, with seven more needed for the convention to be called.

          In Phoenix we created a model set of rules, set up a standard for the next convention, and re-established a mechanism for the states to come together and exercise their authority to restrain the federal government.

        We are on the path to a financial disaster that will make the Great Recession of 2008 seem like an economic speed bump in comparison.

         That is why states like Oklahoma are stepping forward to force Congress to change its behavior. We must do this to protect our children, grandchildren and future generations from a crippling national debt, and I’m proud to be a part of this process.

        In my next column I will address the other budget I’m trying to understand and the special session we are preparing for in the Oklahoma legislature.

I welcome your questions and concerns, so please feel free to contact my office at the State Capitol if you would like to discuss a particular issue or problem.  Our office can be reached by phone at 405-521-5561 or by email at bergstrom@oksenate.gov.   If you visit the Capitol, we are located in Room 527A.

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With Federal Budget Out of Control, States Move Toward Article V Amendment

Bergstrom attends Balanced Budget Amendment Planning Convention

OKLAHOMA CITY – Sen. Micheal Bergstrom is in Phoenix, Arizona as a delegate attending the Balanced Budget Amendment (BBA) Planning Convention, which commenced on September 12 and is scheduled to complete its work on September 15. The gathering is preparing the rules and guidelines for a future Article V Convention of the States for proposing amendments.

“The national debt just surpassed $20 trillion this week, and it is projected to increase by a trillion dollars a year for the next decade. This is just not sustainable,” said Bergstrom, R-Adair. “Since Congress has failed to restrict its spending, it is up to the states to act, and that is what we are doing.”

Article V of the United States Constitution provides two methods for proposing amendments to the Constitution. It may be either a resolution adopted by two-thirds of both houses of Congress, or by the states at a convention called for that purpose. Currently, 27 states, including Oklahoma, have signed on to the convention, with seven more needed for the convention to be called.

“What we are preparing for is a convention which will focus on only one amendment, one that will limit our federal government from spending more than it takes in,” Bergstrom said. “At this time, we are spending more than our nation’s gross domestic product (GDP), which is the size of the U.S. economy. We are borrowing trillions of dollars from foreign countries. We have had the Federal Reserve Bank printing money to pay our bills. We have looted all of our Federal trust and pension funds, including our military retirement funds, to pay for our government.”

“We are on the path to a financial disaster that will make the Great Recession of 2008 seem like an economic speed bump in comparison,” added Bergstrom.

In 1990, foreign entities owned six percent of the nation’s gross debt. That has climbed to more than 34 percent. The United States is beholden to China, Japan, Russia and many other countries for loans that finance the government.

“Congress has put our nation in a dangerous position, where we are subject to the political influence of other nations over U.S. foreign and trade policy because of its willingness to run up an insane amount of debt and take money from nations who do not have our best interests in mind,” Bergstrom said. “That is why states like Oklahoma are stepping forward to force Congress to change its behavior. We must do this to protect our children, grandchildren and future generations from a crippling national debt, and I’m proud to be a part of this process.”

The Oklahoma delegation consists of state Senators Micheal Bergstrom, Nathan Dahm and Julie Daniels as well as Reps. Mark Lepak and John Bennett, former Rep. Gary Banz and attorney Mark Nuttle. 

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For more information, contact:Sen. Bergstrom: (405) 521-5561

Senator Bergstrom joins Congressman Mullin and Representative West in addressing area Realtors

Senator Bergstrom joins Congressman Mullins, 

Representative West as local panelists

Representative Josh West, Chuck Perry, Senator Micheal Bergstrom and Congressman Markwayne Mullin

State Senator Micheal Bergstrom joined Congressman Markwayne Mullin and Representative Josh West as panelists for the Northeast Board of Realtors’ meeting held Tuesday, August 22 in Grove. They were invited by ReMax Grand Lake owner and broker, Chuck Perry to weigh in on state and federal issues affecting real estate in Oklahoma.

"Gatherings like this give me an opportunity to be made aware of the needs of my constituents," said Bergstrom, R-Adair.   "As someone who is focused on economic development and the areas of business, commerce and tourism, I am always looking for suggestions on how to make my district and the state more successful in these areas. Gatherings like this help me to hear those ideas.”

Bergstrom added he appreciated Perry’s invitation to participate in the forum with his fellow legislators, noting the importance of staying aware of the issues affecting his district and others around the state.

"I appreciate having the opportunity to discuss the issues of our state and my district. This forum provided a chance for me to hear about how federal regulations are reducing opportunities for Oklahomans,” said Bergstrom.

For more information, contact Sen. Micheal Bergstrom at (405) 521-5561 or by email at bergstrom@oksenate.gov.

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Oklahoma Supreme Court Strikes Down Cessation Fee

Sen. Bergstrom issues statement on ruling on smoking cessation fee

Senator Micheal Bergstrom, R-Adair, issued a statement Thursday regarding the Supreme Court’s ruling striking down the cigarette fee and declaring it an unconstitutional tax:

"As I sat in the courtroom and listened to the arguments in the Oklahoma Supreme Court on Tuesday, I came to the conclusion that the smoking cessation fee we passed last session was in serious trouble. This morning the court ruled that the fee was unconstitutional.

“The court made the right decision. That means, however, that $215 million must be cut from the budget, primarily from the Department of Human Services, the Department of Mental Health and Substance Abuse Services and the Oklahoma Health Care Authority, or we have a special session to fix this.

"I expect we will go into a special session. This is too important. It must be addressed, and preferably sooner than later."

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