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Green is the color most relevant in Oklahoma Tax Commission case

by The Oklahoman Editorial Board Published: April 12, 2012
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COLOR us less than persuaded by the argument that some Oklahoma convenience stores were targeted by the Oklahoma Tax Commission because of the color of the skin or ethnicity of the owners.

This is a time when people are dividing over black-and-white issues — witness the Tulsa shootings last week and the Trayvon Martin case — but what the tax commission's computers did remained solidly in the gray scale.

Owners of 37 convenience stores have sued the commission claiming they were audited because of their race or religion. At stake are millions of dollars in sales tax revenues that the state may be owed. State lawyers must now defend yet another ethnic-related lawsuit, not because of a state question targeting a religion (such as the 2010 Sharia law referendum) but because colorblind OTC computers found discrepancies.

When the computers compared records of wholesale purchases by the stores against records of sales tax remittances, unusual gaps were found. This is an indication — but not necessarily proof — that sales taxes collected at the stores weren't remitted in the proper amounts.

The attorney representing the plaintiffs said the audits targeted Muslim or Vietnamese shopkeepers. Actually, they targeted not the owners but the discrepancies.

Something these stores have in common other than minority ownership status is that they're generally small, independent, one-off stores rather than links in a chain. It's possible that discrepancies are easier to spot because of the smaller sales volume.

In no case is the amount of contested sales tax payments less than $100,000. Some top $1 million. The Oklahoman's Randy Ellis reported that one store bought beer from a wholesaler for $236,737 in 2008 but reported less than $70,000 in net sales for beer and other taxable products. Any computer program that doesn't flag that kind of gap isn't worth the color of money.

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by The Oklahoman Editorial Board
The Oklahoman Editorial Board consists of Gary Pierson, President and CEO of The Oklahoma Publishing Company; Christopher P. Reen, president and publisher of The Oklahoman; Kelly Dyer Fry, editor and vice president of news; Christy Gaylord...
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