Retired OKC attorney Jerry Fent claims tax amnesty violates state

Journal Record, The (Oklahoma City), Jun 20, 2008 by Janice Francis-Smith

Retired Oklahoma City attorney Jerry Fent wants to be sure that the reporters who write about the lawsuit he filed against the state of Oklahoma on Thursday use his specific terminology, "amnesty to deadbeat taxpayers," when describing the reason for his legal challenge.

"I pay my taxes on time," said Fent, thumbing through a book of documents he filed with the Oklahoma Supreme Court. "Don't you pay your taxes on time? It's not fair to us. 'Deadbeat' is not a slanderous term. I looked it up in Webster's Dictionary, and it means someone who fails to pay their debts."

Fent is suing the state for implementing an initiative included in Gov. Brad Henry's executive budget. To make ends meet this year, lawmakers scrambled to make up for a shortfall in revenues. The Legislature adopted Henry's proposed tax amnesty program, projected to generate up to $32 million in additional revenue.

Senate Bill 2034 created the Voluntary Compliance Initiative, which allows delinquent taxpayers to pay whatever back taxes they owe without penalty if paid between Sept. 15 and Nov. 14, 2008. State Rep. Randy Terrill, R-Moore, carried the bill in the House but said he personally preferred the term "voluntary compliance" rather than "amnesty."

Several kinds of taxes are eligible to be paid late without penalties, including income taxes, sales taxes, corporate income and franchise taxes, etc.

Henry said it would cost the state a considerable sum to prosecute delinquent taxpayers, but the amnesty program would encourage late payers to hurry and get their affairs in order to take advantage of the savings offered for a limited time.

Fent said the state has no authority to waive penalties and interest on overdue taxes. The Oklahoma Constitution, in Article 5 Section 53 prohibits the state government from releasing liabilities owed to the state, he said. Fent's lawsuit also cites the Oklahoma Constitution's provisions that state the power of taxation shall never be surrendered, suspended or contracted away, prohibitions on granting exclusive rights and privileges, and the U.S. Constitution's provisions for due process and equal treatment under the law.

Fent questioned if SB 2034 was designed to aid a particular constituent - he suggested a corporation - that owes a substantial amount of back taxes.

The state Supreme Court has scheduled a hearing on the matter for July 22.