Does Nichols Hills Needs Its Own Zip Code?

Would having its own Zip Code increase Nichols Hills property values and sales tax revenues?

You can fully benefit from each dollar you spend on goods and services outside Nichols Hills that are delivered to your Nichols Hills’ residence by businesses located outside our City by having the City of Nichols Hills establish its own Zip Code.

The reason why the City of Nichols Hills isn’t credited with all the sales taxes paid by its residents in Oklahoma City or any other city for that matter is because of software.

The majority of retailers’ who collect sales taxes have point of sale software which route tax payments to cities based on their Zip Codes.

More often than not, our two Zip Codes 73116 and 73120 are classified as Oklahoma City Zip Codes.

When Nichols Hills gets its own Zip Code, your tax dollars will then be automatically returned to the city’s coffers to work on your behalf.

Regardless of the income we are losing to Oklahoma City, shouldn’t a Premiere City have its own Zip Code?

Nichols Hills Sales Tax

According to the City of Nichols Hills risk management department, capturing additional sales tax revenue is a problem for the city.

“Capturing additional municipal sales/use tax revenue for goods and materials delivered to Nichols Hills’ residents by businesses located out-side our City Limits continues to be a focus for the Risk Management Department.

The City will make direct contact with retailers and other vendors that deliver goods into our community but do not appear to be submitting sales/use tax to Nichols Hills. Most retailers contacted will come into compliance but a small percentage may not be as receptive. Retailers known to be making deliveries into Nichols Hills but not submitting the sales tax collected may be audited at the request of the City.

Nichols Hills’ residents want the tax they pay going to support their own police, fire and public works departments not to another city. Citizens can help get the sales tax they pay credited to Nichols Hills by giving retailers their address as Nichols Hills (not OKC) when having goods delivered. Credit cards should also show Nichols Hills as the city address.

There is no significant difference between Nichols Hills’ tax rate (4%) and Oklahoma City’s (3.875%). Sales on a $100 item would be $3.87 at the OKC rate or $4.00 at the Nichols Hills’ rate. That’s only a 13 cent difference in sales tax paid and your City receives the $4.00 in sales tax revenue.”

In my next post, I propose City Leaders seek the establishment of an exclusive and unique Nichols Hills Zip Code to solve the City’s sales tax collection problems.

Lex Parsimonia

The levers which propell a candidate into a political race can always be reduced to one of two explanations.