Sales Tax vs. Use Tax

Sales Tax

Under Oklahoma law, state sales tax must be charged and collected on all transfers of title or possession of tangible personal property for valuable consideration that occur within this state. Sales tax is also levied on certain services that are provided in this state. If the transaction occurs within the boundaries of a county or municipality that also levies a sales tax, the applicable county or municipal sales tax must also be charged and collected.

Use Tax

Oklahoma state use tax must be paid on tangible personal property purchased and brought into this state for storage, use or consumption. If the property is brought into a county or municipality that also levies a use tax, the applicable county or municipal use tax must be paid.

Retailers maintaining a place of business within this state and making sales from a place of business outside this state for use in Oklahoma are required to collect from the customer the appropriate state and local use tax.

Remote sellers (sellers who do not maintain a place of business in Oklahoma) who have sold at least $10,000 worth of taxable merchandise in the state of Oklahoma during the previous 12 months must elect to either report and remit Oklahoma tax or comply with statutory notice and reporting requirements.   

Effective November 1, 2019, remote sellers who sell at least $100,000 worth of taxable merchandise in the state of Oklahoma during the preceding or current calendar year are required to collect the appropriate state and local use tax from the customer. 

Remote sellers who do not meet the $100,000 sales threshold will still be required to notify purchasers on their retail Internet website or retail catalog and customer invoices, that use tax is imposed and must be paid by the purchaser, unless otherwise exempt, on items brought into Oklahoma for use or consumption.   Also, remote sellers must send an annual statement to their Oklahoma customers by February 1 notifying them of the amount of their total purchases made during the previous calendar year.