2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-1407.5. Legislative findings - Sales and use tax system.

A. It is hereby declared to be the intent of the Oklahoma Legislature to specifically include within the use tax levied by this article all storage, use or other consumption of tangible personal property purchased or brought into this state through the continuous, regular or systematic solicitation in the Oklahoma consumer market by out-of-state retailers through the Internet, mail order and catalog publications.
B. The Oklahoma Legislature finds that out-of-state retailers purposefully direct their activities through the Internet and other media at Oklahoma residents, that the magnitude of those contacts are more than sufficient for due process purposes, and that the use tax is related to the benefits the out-of-state retailers receive from access to the state. The consumers of these retail sales are not paying use taxes when the out-of-state retailer does not collect the tax as provided in this article. The failure of these out-of-state retailers to collect the use tax due and owing to the State of Oklahoma and its jurisdictions is detrimental to the ability of the state and local governments to provide the services and benefits bestowed upon the out-of-state retailer and their Oklahoma consumers.
C. The Oklahoma Legislature finds that the sales and use tax system established under Oklahoma law does not pose an undue burden on out-of-state retailers and provides sufficient simplification to warrant the collection and remittance of use taxes by out-of-state retailers that are due and owing to the State of Oklahoma and its local jurisdictions. In support of this finding:
1. The state is a member of the Streamlined Sales and Use Tax Agreement and has amended its laws to be in full compliance with its terms;
2. The state provides state level administration of sales and use taxes levied by its cities, counties and other local jurisdictions by contracting with these entities. All cities, counties and other local jurisdictions levying sales and use taxes shall continue to contract with the Oklahoma Tax Commission for administration of its sales and use taxes so that sellers collecting and remitting these taxes will not have to register or file returns with, remit funds to, or be subject to independent audits from the local taxing jurisdictions;
3. The state provides and maintains a database that describes boundary changes for all taxing jurisdictions within this state for sales and use tax purposes and the sales and use tax rates for all of the jurisdictions levying taxes within the state;
4. The state provides a deduction of the tax due to all retailers, including out-of-state retailers, to compensate them for recordkeeping, filing reports, collecting and remitting the tax in a timely manner;
5. The state provides a mechanism for the electronic submission of sales and use tax reports and payments;
6. The state provides liability relief to sellers for collecting an incorrect amount of tax as a result of relying on erroneous data provided by the Tax Commission on rates, boundaries or taxing jurisdiction assignments;
7. The state participates in a central registration system that allows out-of-state retailers to register one time in one place for multiple states;
8. All local jurisdictions have the same tax base as the state for sales and use taxes, except as permitted under the Streamlined Sales and Use Tax Agreement;
9. The state does not require the payment of a registration fee from an out-of-state retailer which does not have a legal requirement to register;
10. The state requires the Oklahoma Tax Commission to give notice to vendors of local rate changes and boundary changes at least sixty (60) days prior to the effective date of the change;
11. The state has the same tax rate for every taxable item;
12. The state only requires the filing of a single tax return to cover all taxing jurisdictions with the state;
13. The Oklahoma Tax Commission provides, free of charge, business tax workshops for sellers designed to provide information and answer questions regarding the Oklahoma sales and use tax system;
14. The state allows electronic payments to be made by either ACH credit or by ACH debit;
15. The state allows a deduction from taxable sales for bad debts;
16. The state provides a taxability matrix which gives information on the taxability of a wide variety of items including all items defined in the Streamlined Sales and Use Tax Agreement; and
17. The state pays the direct cost of a certified service provider to perform all of an out-of-state seller’s sales and use tax functions other than the seller’s obligation to remit taxes on its own purchases.
Added by Laws 2010, c. 412, § 8, eff. July 1, 2010.