Oklahoma Administrative Code › Title 260 - Office of Management and Enterprise Services › Chapter 135 - Service Oklahoma › Subchapter 7 - Motor Vehicle › Part 45 - VEHICLE SALES TAX AND MOTOR VEHICLE EXCISE TAX › Section 260:135-7-241 - Sales tax levy and exemptions

Current through Vol. 41, No. 20, July 1, 2024
(a)
General
				  levy on purchase of a vehicle.
Sales tax is levied upon purchase of a
				  vehicle, unless an exemption from that levy applies. Sales tax is to be paid by
				  the consumer in the same manner and time as the vehicle excise tax for said
				  vehicle is due. No sales tax is assessed when transferring ownership of a
				  vehicle for which no purchase was involved.
(b)
Exclusions by type.
Sales
				  tax is not collected at the time of titling or registration of purchased
				  manufactured homes; boats; outboard motors; special mobilized machinery;
				  low-speed or medium-speed electrical vehicles; trailers registered as farm or
				  private trailers.
(c)
Exemptions.
In general, vehicles purchased by sales tax exempt
				  entities are exempt from the assessment of vehicle sales tax. Following is
				  information on some of the more frequently encountered sales tax exemptions.
				  Presentation of documentation supporting the exemption may be required.
(1)
Agricultural permit holder.
All-terrain vehicle, utility vehicle, or off-road motorcycle purchased by
				  holder of agricultural permit. Presentation of permit required.
(2)
Church.
Vehicle purchased by
				  a church.
(3)
City.
Vehicle purchased by a city.
(4)
Corporate transfer.
Certain transfers of vehicle ownership between
				  corporation and shareholder.
(5)
County.
Vehicle purchased by a county.
(6)
Disabled veteran (100%).
Vehicles purchased by a 100% DAV, or their surviving spouse, may have a portion
				  of the purchase price exempted from sales tax. Veteran/surviving spouse
				  choosing this option must designate that portion of their statutorily allowed
				  annual sales tax exemption allowance they have available and wish to apply to
				  the vehicle purchase price. Completion of an MV Sales Tax Exemption Certificate
				  is required, on which the veteran/surviving spouse declares the amount of their
				  available annual sales tax purchase price exemption they wish to have applied
				  to the vehicle purchase price.
(7)
Dealer.
Vehicle purchased by a licensed dealer and being held for
				  resale.
(8)
Federal credit
				  union.
Vehicle purchased by a federal credit union.
(9)
Federal land bank.
Vehicle
				  purchased by a federal land bank.
(10)
Fire protection district.
Vehicle purchased by a fire protection district.
(11)
Housing authority.
Vehicle
				  purchased by a housing authority.
(12)
Indian Tribal Government.
Vehicle purchased by an Indian Tribal Government.
(13)
Insurance loss.
Vehicle
				  transfer to insurance company following payment of a loss
(14)
International Registration Plan
				  (IRP).
Vehicles purchased to be registered under IRP.
(15)
Leasing company.
Vehicle
				  purchased by a leasing company to be leased. Presentation of sales tax permit
				  number required.
(16)
Limited
				  liability corporation.
Certain transfers of vehicle ownership involving
				  LLCs.
(17)
Partnership
				  transfer.
Certain transfers of vehicle ownership between partnership and
				  partners.
(18)
Public
				  trust.
Vehicle purchased by a public trust.
(19)
Red Cross.
Vehicle
				  purchased by the Red Cross.
(20)
Rental title.
Vehicle purchased by a rental company to be used as
				  a rental vehicle and being issued a rental certificate of title. Sales tax
				  permit number required.
(21)
Rural ambulance.
Vehicle purchased to be utilized as a rural
				  ambulance.
(22)
Rural
				  electric cooperative.
Vehicle purchased by a rural electric
				  cooperative.
(23)
Rural gas
				  district.
Vehicle purchased by a rural gas district.
(24)
Rural sewer district.
Vehicle purchased by a rural sewer district.
(25)
Rural water district.
Vehicle purchased by a rural water district.
(26)
Sales tax exemption permit or
				  letter.
Vehicle purchased by possessor of an Oklahoma sales tax
				  exemption permit, or an Oklahoma Tax Commission exemption letter. The permit or
				  letter must be presented and completion of a MV sales tax exemption certificate
				  is required.
(27)
Salvage
				  dealer.
Vehicle purchased by a licensed automotive dismantler.
(28)
School district.
Vehicle
				  purchased by a school district.
(29)
Sole proprietorship.
Transfer of vehicle ownership between a sole proprietorship and owner of the
				  sole proprietorship.
(30)
State.
Vehicle purchased by the State.
(31)
Volunteer fire department.
Vehicle purchased to be utilized by a volunteer fire department.
(32)
Water conservancy district.
Vehicle purchased by a water conservancy district.
(33)
Commercial Trailers.
Trailers used commercially.