OKLAHOMA STATE SOVEREIGNTY ACT - 1995 (full text below)
FORCING THE FEDERAL GOVERNMENT TO COMPLY WITH THE CONSTITUTION
As you have now read, the 10th Amendment / State Sovereignty Resolution reasserts the state's sovereign position and demands that the federal government comply with the terms of the Constitution. What if the Federal Government chooses to ignore the demands of the Sovereign States?
As an example of what comes next, consider this: Field Marshall Rommel lost the African Campaign not because he was out-gunned or out-manned ; he ran out of gas! His mighty Panzer Division came to a halt for lack of fuel. The fuel line that runs to Washington is the steady stream of our tax dollars.
Now consider this: If you rent a house or apartment and your landlord doesn't comply with his end of the lease by fixing the plumbing or the furnace you can lawfully pay your rent to an escrow account and, therefore, force him to hold up his end of the contract.
Since the federal government has not complied with the terms of its contract (the Constitution) with us, then perhaps we can, with the assistance and under the direction of our states' legislatures, have any number of our taxes paid into a state administered escrow account. These types of taxes could be any combination of Federal Excise taxes, Income taxes, Social Security Taxes, etc., etc.
Simply stated, "Until you comply with your contract with the American People, the escrowed tax dollars will be held by the various states." Federal courts will not have jurisdiction in these matters as they are agents of the defaulting party - the Federal Government.
The following bill passed the Oklahoma House "Revenue and Taxation Committee" unanimously on Tuesday, February 7th, 1995. Since then, it unanimously passed the House and was expected to pass the Senate with little problems. However, the act was not called for vote in the Senate before the session ended (3/30/95) so it is dead and will have to be reintroduced. The bill's sponsor is Representative Charles Key, House of Representatives, State of Oklahoma, Room 508, Oklahoma City, Oklahoma 73105.
Council on Domestic Relations
(As opposed to Council on Foreign Relations - to save America, NOT to destroy her. )
HOUSE OF REPRESENTATIVES 1ST SESSION OF THE 45TH LEGISLATURE (1995)
REVENUE AND TAXATION COMMITTEE
Representative Howard Cotner, Chairman Representative Ron Langmacher, Vice Chairman
Committee Substitute for House Bill 1874
SUBJECT: State Sovereignty Act
AUTHOR: Representative Key
1. Creates the State Sovereignty Act.
2. Declares legislative intent that the U.S. Congress does not have the right under the federal Constitution to withhold from the States the benefits of federal taxes through unconstitutional mandates. States that the State of Oklahoma reasserts its claim of sovereignty.
3. Defines terms used in this act. Creates the "Federal Tax Fund" in the state treasury which shall be an escrow account. Specifies that any interest carried on the deposit of monies in the Fund along with any civil penalties associated with this act shall remain in the fund and shall not revert to the General Revenue Fund of the state at the end of any fiscal year. Provides that such interest shall be used to pay any necessary administrative costs incurred pursuant to this act and any excess interest and penalties shall be transferred to the State Transportation Fund.
4. Requires any person liable for any federal excise, income or liquor alcohol tax to remit the Lax to the Oklahoma Tax Commission for deposit Into the Fund.
5. Requires the State Treasurer to transfer at the end of each month the monies held in the fund less any interest earned to the Internal Revenue Service in payment of the tax obligation of those persons who remitted the tax to the Oklahoma Tax Commission.
6. Provides that if the federal government imposes any sanctions on the state for failing to enact legislation required by federal law which the 0klahoma Legislature deems to be unconstitutional. the State Treasurer shall not transfer any taxes held in the Federal Tax Fund. Provides procedures for the transferring of the monies if the sanctions are lifted within 90 days. Provides that if the sanctions are not lifted within 90 days, the state shall impose a surcharge on the monies in the fund to be used for payment to continue highway project funding.
7. Specifies that any person who fails to comply with this Act shall be subject to a civil penalty in an amount equal to 150% of the tax owed for each day the person fails to comply.
8. Provides that this act shall apply to federal taxes to be collected after June 30, 1995.
EFFECTIVE DATE July 1. 1995 Emergency Clause
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STATE OF OKLAHOMA
1st Session of the 45th Legislature (1995)
COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 1874 By: Key
An Act relating to revenue and taxation; creating the State Sovereignty Act; Providing short title; providing definitions; declaring legislative intent; creating the Federal Tax Fund; providing for interest earned on certain monies; providing for remittance of certain taxes by certain persons; providing for transmission of certain monies to State Treasurer; providing certain duties of State Treasurer regarding transferring of withholding certain funds; providing for certain surcharge; providing for civil penalties; providing for deposit of Certain Penalties; providing for act to apply to certain taxes collected after certain date; providing for codification; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE 0F THE STATE OF 0KLAH0MA:
SECTION 1. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 50200 of Title 68, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "State Sovereignty Act".
SECTION 2. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 50201 of Title 68, unless there is created a duplication in numbering, reads as follows:
A. The Oklahoma Legislature finds that the Tenth Amendment of the United States Constitution defines the total scope of federal power as being that Specifically granted by the federal constitution and no more. The Legislature recognizes that the United States Congress has the right to lay and collect taxes under the federal constitution. The Legislature finds, however, that the Congress does not have the right under the federal constitution to withhold from the States the benefits of those taxes through unconstitutional mandates.
B. The legislature further finds that the most unconstitutional mandates prohibit Oklahoma from implementing programs of excellence that would exceed federal expectations. Oklahoma has significant technical expertise in resource management in the areas of air, earth and water, but the persistent threat of sanctions renders that expertise ineffective.
C. In light of the continuing unconstitutional withholding of the benefits of the taxes, the State of Oklahoma hereby reasserts its claim of Sovereignty.
SECTION 3. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 50202 of Title 68, unless there is created a duplication in numbering, reads as follows:
A. As used in this act:
1. "Person" means natural persons, corporations, Partnerships, limited liability companies, associations and other legal entities;
2. "Excise tax" means any tax that forms a component of the highway users tax fund;
3. "Income tax" means any tax imposed by the federal government on any income earned by a taxpayer; and
4. "Liquor or alcohol tax", means any tax imposed by the federal government on any beer, liquor, wine or similar alcoholic beverage.
5. There shall be created in the State Treasury the "Federal Tax Fund", which shall be an escrow account. Any interest earned on the deposit of monies in the fund along with. any civil penalties assessed pursuant to subsection F of this section shall remain in the fund and shall not revert to the General Revenue Fund of the state at the end of any fiscal year. The interest earned on the deposit of monies and any civil penalties shall be used to pay any necessary administrative costs incurred pursuant to this act and any excess interest and penalties shall be transferred to the State Transportation Fund.
C. Any person liable for any federal excise, income or liquor or alcohol tax shall remit the tax when due along with the federal taxpayer number of such person to the Oklahoma Tax Commission for deposit into the fund.
D. All monies collected pursuant to Subsection C of this section shall be transmitted to the State Treasurer who, as a fiduciary agent, shall credit the same to the Federal Tax Fund 0n behalf of the person that remitted the tax.
E. 1. Except as provided in Paragraph 2 of this subsection, the State Treasurer shall transfer at the end of each month the monies held in the Federal Tax Fund less any interest earned on the deposit to the Internal Revenue Service in Payment of the tax obligation of those persons who remitted the tax to the Oklahoma Tax Commission. As part of the transfer, the State Treasurer shall identify the federal taxpayer number and amount received from each person who remitted any tax to the 0klahoma Tax Commission.
2 . If the federal government imposes any sanctions on the State of Oklahoma for failing to enact legislation required by federal law, which the Legislature deems to be unconstitutional, by withholding or reprogramming any federal-aid monies from, among other things, highway construction to highway safety or other programs, the State Treasurer shall not transfer any taxes held in the Federal Tax fund but shall retain the monies in the fund until such time as the sanctions are lifted. If the lifting of the sanctions occurs within ninety (90) days, the State Treasurer shall transfer the amounts held in the fund to the Internal Revenue Service within ten (10) days of the lifting of the sanctions. If the sanctions are not lifted within ninety (90) days, the state shall impose a surcharge on the monies in the fund to be used for payment to continue highway project funding,
F. Any person who fails to comply with this section shall be subject to a civil penalty in an amount equal to one hundred fifty percent (150%) of the tax owed for each day the person fails to comply with this section. Any civil penalties assessed under this section shall be deposited into the Federal Tax Fund established in this section,
G. The act shall apply to federal taxes to be collected after June 30, 1995.
SECTION 4. This act shall become effective July 1, 1995.
SECTION 5. It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist by reason whereof this act shall take effect and be in full force from and after its passage and approval.
45-1-6461 Jar 1/31/95