Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 13 - Sales and Use Tax Exemptions › Part 25 - GOVERNMENTAL ENTITIES › Section 710:65-13-130 - Sales to and by the government; taxable and exempt transactions

Current through Vol. 41, No. 20, July 1, 2024
(a)
Sales
				  "to" governmental entities.
Sales of tangible personal property or
				  services to this State, its institutions or political subdivisions, and to the
				  United States, including its agencies and instrumentalities are exempt from
				  sales tax. Sales to other states' governments, political subdivisions,
				  institutions, or agencies are not exempt, unless the state is one which borders
				  Oklahoma and grants a like exemption from taxes on similar sales of items to
				  Oklahoma or its political subdivisions.
(1)
Records required.
The books and records of the vendor must show
				  that the purchase was billed to and paid by the government agency.
(2)
Sales to government
				  employees.
Sales to individuals who are employees of this State, its
				  institutions and subdivisions, or of the United States government, are not
				  exempt from tax unless the sale is billed directly to the appropriate
				  government agency or the purchase is by means of properly completed government
				  purchase order or credit card. Sales made on credit cards bearing an employee's
				  name and the name of the government agency for which the employee works will
				  qualify for exemption only if the card is issued to the Federal Government,
				  rather than to the individual, and is paid directly by the Federal Government.
				  The credit cards that currently meet these criteria are those issued through
				  the GSA SmartPay card program:
(A)
Fleet
				  cards.
All Federal Government
fleet cards
are
				  centrally-billed. This means that all charges are billed directly to the
				  Federal Government and paid directly by the Federal Government. Charges made
				  using an authorized
fleet card
are therefore, exempt from the levy
				  of Oklahoma sales tax. Authorized
fleet cards
must meet all the
				  requirements set out in this paragraph:
(i)
				  The
fleet card
prefix (first 4 digits) must be 4486, 4614, 4716,
				  5565, 5568 or 8699;
(ii) The
fleet card
platform must be Voyager, MasterCard, Wright Express,
				  or Visa; and
(iii) The Voyager
fleet card
must be issued by Citibank, or U.S. Bank; the
				  MasterCard
fleet card
must be issued by Citibank, JP Morgan Chase
				  or U.S. Bank; the Wright Express fleet card must be issued by Citibank.
(B)
Purchase
				  cards.
All Federal Government
purchase cards
are
				  centrally-billed. This means that all charges are billed directly to the
				  Federal Government and paid directly by the Federal Government. Charges made
				  using an authorized
purchase card
are therefore, exempt from the
				  levy of Oklahoma sales tax. Authorized
purchase cards
must meet
				  all the requirement set out in this paragraph:
(i) The
purchase card
prefix
				  (first 4 digits) must be 4486, 4614, 4716, 5565 or 5568;
(ii) The
purchase card
platform
				  must be Visa or MasterCard; and
(iii) The Visa
purchase card
must be issued by Citibank, JP Morgan Chase or U.S. Bank; The MasterCard
purchase card
must be issued by Citibank, JP Morgan Chase, or U.S.
				  Bank;
(C)
Travel
				  cards.
Federal Government
travel cards
may be
				  centrally-billed or individually billed. Individually-billed charges are billed
				  to and paid by the federal
employee
, and then reimbursed by the
				  Federal Government. Individually-billed charges made using a
travel
				  card
are
subject to
the levy of Oklahoma sales tax. Only
				  centrally-billed charges made using an authorized
travel card
,
				  because they are billed directly to and paid directly by the Federal
				  Government, are exempt from the levy of Oklahoma sales tax. Authorized
travel cards
must meet all the requirements set out in this
				  paragraph:
(i) The
travel card
prefix (1st four (4) digits) must by 4486, 4614, 5565 or 5568;
(ii) The sixth (6th) digit of the account
				  numbering structure will denote whether the travel card is centrally-billed or
				  individually-billed:
(I) A sixth digit of 0,
				  6, 7, 8, or 9 denotes that the
travel card
is centrally-billed;
(II) A sixth digit of 1, 2, 3, or
				  4 indicates that the
travel card
is individually-billed;
(iii) The
travel
				  card
platform must be Visa or MasterCard; and
(iv) The
travel card
, whether
				  Visa or MasterCard, must be issued by Citibank, U.S.Bank, or JP Morgan Chase.
(D)
Integrated
				  cards.
Federal Government
integrated cards
may include
fleet
,
travel
, or
purchase card
functionality and offer the Federal Government a single card for all purchases.
				  All
fleet and purchase type transactions
made on an
integrated card
are centrally-billed, and therefore exempt from
				  the levy of Oklahoma sales tax, regardless of the sixth digit on the card.
travel card
type functionality may be centrally-billed or
				  individually-billed. Authorized
integrated cards
must meet all the
				  requirements set out in this paragraph:
(i)
				  The prefix (first four (4) digits) of an
integrated card
must be
				  4486, 4614, 4716, 5565 or 5568;
(ii) For travel functionality
only
, the sixth digit of the
integrated card
will
				  denote whether the card is centrally or individually billed:
(I) A sixth digit of 0, 6, 7, 8, or 9 denotes
				  that the
integrated card
being used for travel functionality is
				  centrally-billed;
(II) A sixth
				  digit of 1, 2, 3, or 4 indicates that the
integrated card
being
				  used for travel functionality is individually-billed;
(iii) The
integrated card
platform must be Visa or MasterCard; and
(iv) The
integrated card
,
				  whether Visa or MasterCard, must be issued by Citibank, U.S.Bank or JP Morgan
				  Chase.
(3)
Sale to contractors.
Sales to contractors in connection with the
				  performance of any contract with the United States government are not exempt
				  unless the ownership and possession of the property purchased by the contractor
				  or agent transfers immediately to the United States government.
				  [
See:
68 O.S. §§
											1356(1),
				  1356(2)
				  ]
(4)
Sales to foreign
				  diplomats, consular mission and mission employees.
Foreign diplomats and
				  consular missions and their personnel and eligible family members who have been
				  issued a
Diplomatic Tax Exemption Card
by the United States
				  Department of State, Office of Foreign Missions may make eligible purchases
				  exempt from sales tax. Qualifying Diplomatic Tax Exemption Cards may also be
				  issued by the American Institute in Taiwan. Each category of tax exemption card
				  bears an animal image indicating the purchases eligible for sales tax exemption
				  by the cardholder as follows:
(A)
Owl
				  image card
exempts the cardholder from sales tax on all official mission
				  purchases.
(B)
Buffalo image
				  card
exempts the cardholder from sales tax on all official mission
				  purchases subject to the restrictions listed on the card. For example, the card
				  may read: "Exempt from tax on purchases over $300; not valid for hotels."
(C)
Eagle image card
exempts the cardholder from sales tax on all personal purchases.
(D)
Deer image card
exempts the
				  cardholder from sales tax on personal purchases, subject to the restrictions
				  listed on the card. For example, the card may read: "Exempt from tax on
				  purchases over $150; not exempt for hotels, restaurants, and services."
(5)
Transferability.
The Eagle and Deer exemption cards used for
				  personal purchases are not transferable. The exempt use of the Owl and Buffalo
				  cards is not restricted to the individual pictured on the card.
(6)
Exemption requirements.
To
				  qualify for exemption, official mission purchases made with either an Owl or
				  Buffalo Card must be invoiced to the cardholder and payments made with mission
				  check or mission credit card. For personal purchases made pursuant to an Eagle
				  or Deer Card to qualify for the exemption, they must be invoiced to the
				  cardholder and payment may be in any form including cash, check, or credit
				  card.