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State Supreme Court Rules on Tax Collection (May 15, 2012)

OKLAHOMA CITY (AP) - The Oklahoma Supreme Court has ruled that the state can require cities to use the state Tax Commission to collect city sales taxes.

The ruling handed down Tuesday overturns an earlier ruling in a lawsuit filed by the city of Tulsa.

Tulsa sued in 2010 after the Legislature passed the law requiring that the Tax Commission be used to collect the taxes. The law came shortly after Tulsa contracted with Revenue Discovery Systems of Alabama to collect its sales taxes.

The city paid the Tax Commission 1 percent of the taxes collected - which was estimated at the time to be about $2 million. City officials said the contract with RDS was for 0.6 percent of collections for a savings of about $700,000.

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