Oklahoma Supreme Court rules that American Airlines entitled to $1M-plus in sales tax refunds

OKLAHOMA CITY – The Oklahoma Supreme Court says American Airlines is entitled to sales tax refunds that could total more than $1 million.

A 42-page ruling handed down Tuesday by the court overturns an Oklahoma Tax Commission’s denial of the refund and orders the commission to determine exactly how much money is owed to the airline.

Fort Worth, Texas-based American operates a large maintenance base in Tulsa and requested refunds for taxes it paid for electricity and natural gas utility services in 2006.

The matter wound up in court after the commission denied the refund request, asserting that American bought items and services that don’t become “part of the aircraft.”

A tax commission spokeswoman says the agency will review the order. A message left with an attorney for American was not immediately returned.