A bill that would result in retroactive taxes for anyone or purchased heavy machinery over the last several years is headed to the Governor’s desk but one local lawmaker says it’s unconstitutional.
Republican District 10 State Senator Jake Chapman says during the 2000s heavy machinery was being taxed differently from dealer to dealer, so in an effort to stop that, the 2008 legislature passed a bill that said there would be no tax on heavy equipment.
Though the Department of Revenue said that’s not okay.
“The Department of Revenue found out that this was an error that took place. They called it a mistake, that we should have been collecting tax and they have been collecting this tax to the tune of 20-plus million dollars since 2008” says Chapman.
So a bill was written that not only establishes a five percent sales tax on heavy machinery, but also makes it effective retroactively back to 2008. Which Senator Chapman says is unconstitutional.
“I think it’s a terrible bill. I don’t think it’s constitutional. In fact, under our Bill of Rights, I believe it’s Section 21, it states that there will be no ex post facto law that shall ever be passed. I think our Constitution is very clear on that, we can’t retroactively tax people! It is my opinion that we, even if it was a mistake – an honest mistake, we are to give that money back. That was the law and if we are to reestablish the sales tax, we reestablish the sales tax.”
Chapman says he feels the bill will at some point be struck down, if signed by the Governor.

