A seller who is engaged in selling tangible personal property in exchange for money or consideration in any other form on a continuous basis is required to obtain a sales tax permit in the Oklahoma State. Any consideration received by the seller is treated as gross receipt for the seller.

It is on this gross value that sales tax is to be levied by the seller as per the rates applicable in the Oklahoma State. A permit for sales tax is not required if sales is made on an occasional basis by the seller.

What is Tangible Personal Property for Sales Tax Applicability?

As the name suggests, tangible personal property indicates any item/property which is visible and can be touched, felt, measured or weighed. It is important to note that tangible personal property includes electricity, water, gas steam and any type of prewritten software. Sales tax can be levied on any of these items, irrespective of whether the sale is made on an ongoing or on an occasional basis.

How a Sales Tax Permit can be Obtained?

Sales tax permit can be obtained by filing Application for Sales Tax Permit (Packet A). This application is available on the Oklahoma State tax website. Application for tax permit can also be made online by using the online registration system available on the Oklahoma State tax website.

When Sales Tax is Required to be Deposited by the Seller?

Amount of sales tax collected by a seller from the beginning of a month till the end of the month is required to be deposited with Oklahoma Tax Commission. Sellers are required to deposit the total amount of sales tax for a particular month by 20th of the following month. For Instance, total sales tax collected for the month of June 2011 will have to be deposited by the seller on or before 20th July 2011.

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How Information on Sales Tax Rates Can be Obtained?

Information on sales tax rates is available on the website of Oklahoma State tax for each county and city. Relevant codes are also available in the list of sales tax rates. Since different rates may apply for different cities and counties, it is advisable for the seller to go through the list of tax rates in order to ensure that correct rate is applied when a sales transaction is made by the seller. This list can also be used by the buyer to ensure that correct amount of sales tax is paid by them at the time of entering into a purchase transaction.

When a Report for Sales Tax is required to be filed by the Seller?

In case the amount of tax deposited by the seller does not exceed $ 50 per month, sales tax returns can be filed on a semiannual basis by the seller. Such returns are required to be filed on or before 20th July (for the period January-June) and on or before 20th January (for the period July-December). A seller is required to enroll in the Electronic Data Interchange Program of the Tax Commission in case the average amount of sales tax (to be deposited with the commission) is $ 2,500 or is more than $ 2,500 per month.

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