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Lawsuit challenges transfer of Oklahoma fuel taxes

Lawsuit challenges transfer of Oklahoma fuel taxes

Bloomberg Businessweek
June 8, 2011, 6:21PM ET
By TIM TALLEY
The Associated Press

OKLAHOMA CITY

An attorney who has repeatedly challenged the way the state of Oklahoma raises and spends revenue filed a lawsuit Wednesday to reverse the Legislature's transfer of $101.7 million in state fuel tax revenue to state agencies that are not involved in road and bridge construction and maintenance.

Attorney Jerry Fent alleges in the lawsuit that the funds transfer violates the state constitution, which says "no tax levied and collected for one purpose shall ever be devoted to another purpose." Fent's lawsuit says revenue raised by the sale of gasoline and diesel fuel in the state is dedicated to roads and bridges.

"Thousands of persons who drive cars and buy gasoline are going to be shocked to learn that their tax money is not being spent for highways and bridges," Fent said shortly after filing the lawsuit.

The lawsuit asks the Oklahoma Supreme Court to stop the funds transfer before legislation that authorizes it goes into effect on July 1 and order that the fuel tax revenue be distributed to the Oklahoma Department of Transportation. A hearing before a Supreme Court referee is scheduled June 21.

Before adjourning the 2011 Legislature last month, lawmakers agreed to divert $101.7 million from the agency's road and bridge fund to help close a $500 million budget hole and balance a $6.5 billion budget for the fiscal year that begins July 1.

Lawmakers also approved a $70 million transportation bond issue to close the Department of Transportation's funding gap and help it maintain its eight-year road and bridge construction and maintenance plan... FULL ARTICLE

 

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