Daniels' Bill to End Mandatory Markup Clears Final Legislative Hurdle

OKLAHOMA CITY – Legislation introduced by Senate Majority Floor Leader Julie Daniels, R-Bartlesville, to repeal a state law requiring retailers to apply a 6% markup on many consumer goods is just one step away from becoming law.

Senate Bill 638 passed the Senate and House with strong support and is on its way to the Governor’s desk. The law has been in place since 1949. It forces Oklahoma businesses to impose a minimum 6% markup on retail goods, including fuel, groceries, personal hygiene items, over-the-counter medicines, baby formula and other everyday essentials. Oklahoma is one of just seven states with a mandatory markup law still on the books.

“For 76 years, state government has been ordering businesses to charge buyers at least 6% more than their cost for goods and motor fuel,” Leader Daniels said. “Today, businesses large and small compete with online giants and out-of-state competitors. Let them set their own prices.”

Rep. Steve Bashore, R-Miami, was the bill's principal House author.

"This unfair tax hurts Oklahoma consumers and local businesses, and I'm extremely pleased to see it one step closer to being eliminated,” Bashore said. “It will grant some additional tax relief to Oklahomans and allow our businesses to better participate in the free market."

The prohibition against pricing goods below cost remains in effect, and there are penalties for such actions.

“By ending this government interference, businesses will have the flexibility to price products based on the free market,” Leader Daniels said. “This legislation makes Oklahoma more competitive with surrounding states that don’t impose a mandatory markup. And families will save money on the purchase of many everyday items.”

If signed into law, SB 638 will take effect Nov. 1.

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 For more information, contact Sen. Julie Daniels at 405-521-5634 or email Julie.Daniels@oksenate.gov or Rep. Steve Bashore at (405) 557-7399 or Steve.Bashore@okhouse.gov.