Rate Locator System: Supportive Information
The tax rate data system is provided by the Oklahoma Tax Commission to assist you in charging your customer the correct state and local tax rate. The data system assigns a combined state and local tax rate for each ZIP+4 area code. You may rely on this data system to determine the proper sales or use tax rate at the location in which delivery to the purchaser occurred. If you rely on this data system, you will be held harmless for any erroneous data provided by the Tax Commission on tax rates, boundaries, or taxing jurisdiction assignments.
In some ZIP+4 area codes there is an overlap of county and municipal boundaries. When this occurs, the statute provides that the lowest rate in the area shall apply. For example, City A has a combined state and city rate of 8%. City B has a combined state and city rate of 7.5%. If the ZIP+4 area code includes both City A and City B, the data system will assign a combined state and city rate of 7.5%. The collections from an area that includes more than one jurisdiction will be allocated, by the Tax Commission, between the jurisdictions based upon population. For those instances, the system will provide you with a code for you to use on your sales tax return.