Oklahoma’s Capital Gains Tax Statute Challenged in Court

An attorney representing a business has argued in the Oklahoma Supreme Court that the state’s capital gains tax law violates the Commerce Clause of the U.S. Constitution as it treats out-of-state companies differently.Oklahoma’s Capital Gains Tax Statute

Grab that Refund

Even earlier, the state Supreme Court had ruled against a capital gains law in the state that favors in-state companies. The court had also specified that the ruling will have a retrospective effect. In essence, this means that companies based outside Oklahoma need not pay the capital gains tax and those companies that had done so can claim a refund.

An Unfair Tax

In essence, the law had allowed businesses based in Oklahoma to claim capital gains deduction on sale of assets in the state but denied the same to business based elsewhere. What is wrong with that? Well if a business has a presence in Oklahoma, should that not be enough to trigger this deduction for the items in Oklahoma? This can be a double standard. Apparently someone did some research and realized that the Oklahoma based companies have an advantage. Well, Oklahoma is a low tax state.

Finding Legal Help

If you run a business and find that you have to pay additional taxes in a state just because your business headquarters is elsewhere in the U.S., you might be able to get the tax overruled and obtain a refund. Consult with an experienced tax attorney who is aware of the state and federal tax laws to ensure that your business benefits from all the guarantees provided by law.

Current economic conditions have placed a lot of stress on businesses making it essential for them to conserve all the resources they can to stay profitable. One way of doing this is by making sure that your business is not asked to pay extra taxes in an unconstitutional manner. When in doubt about any tax provisions you need to consult with a tax attorney who will be able to read the relevant laws and help your understand them better and resolve any apparent conflict between them. This will help you and your business save money in regards to paying taxes and only increase your profitability.