Exemptions & Extensions

100% Disabled Veterans |  Exemptions |  Extensions  |  Penalty & Interest  

100% Disabled Veterans Exemptions

Apply Online: Sales Tax Exemption  
Those with a permanent disability receiving service-connected compensation at the 100% rate as certified by the United States Department of Veterans Affairs are eligible for a sales tax exemption permit. Sales qualifying for the exemption are limited to $25,000.00 per year.

The sales tax exemption for the 100% disabled veterans extends to the surviving spouse of a deceased qualified veteran if the surviving spouse has not remarried. Sales qualifying for the exemption are limited to $1000.00 per year for the surviving spouse.

Online Sales Tax Exemption Application Services Include: 

-New Permit
-Cease Permit
-Update Permit 
-Replace Permit

Motor Vehicle Excise Tax Exemption
The exemption may be claimed on only one (1) vehicle in a consecutive three (3) year period by any single qualifying veteran and applies to motor vehicles only. It does not apply to boats or motors. The exemption does not apply to surviving spouses of qualified veterans.

Qualifying Criteria and Documentation:

• The qualifying veteran must be listed on the title as an owner of the vehicle. Additional owners may also be present.
• The vehicle must have been purchased on or after 7/1/05.
• A letter from the United States Department of Veterans Affairs must be presented certifying that the veteran is receiving disability compensation at the 100% rate or the exemption card issued to document the sales tax exemption must be presented.

Registration/License Plates

A veteran with at least a 50% service-connected disability is entitled to a reduced rate on annual registration and/or a special DAV license plate. For further information, please visit your local tag agent office. Sales Tax will still be due at the time of registration unless using a sales tax exemption. 

Property Tax (Ad Valorem) Tax Exemptions for 100% Disabled Veterans

• The exemption will be for the full fair cash value of the homestead.
• The exemption applies to the surviving spouse of the veteran.
• Complete OTC Form 998, "Application For 100% Disabled Veteran Property Tax Exemption", and return it to the county assessor's office for the county where the property is located.
• The exemption can be claimed beginning January 1, 2006.

Additional Questions

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Exemptions

Personal or Dependents
Personal or dependent exemptions, as defined by Internal Revenue Service, are allowed (deduction of $1,000 per exemption).

Legally Blind
An additional exemption of $1,000 may be allowed for taxpayer or spouse who is legally blind at the close of the tax year.

Tax-Exempt Bonds
Certain federal, Oklahoma and municipal bonds are income tax exempt.

Agricultural Exemptions Permit 
Agricultural exemption permits may be issued to those directly involved in farming and ranching exempt from sales tax. It does not exempt vehicle purchases from the assessment of sales tax, other than All Terrain Vehicles / Utility Vehicles / Off-road Motorcycles. Apply for an agricultural exemption permit at OkTAP.

Additional Exemptions
Additional exemption of $1,000 for each taxpayer or spouse who is 65 years of age or older at the close of the tax year AND have met qualifications based on their filing status and federal adjusted gross income (Federal AGI). Taxpayers with the following filing status may claim this exemption if the Federal AGI does not exceed:

• $25,000 Married and Filing Jointly
• $12,500 Married and Filing Separately
• $15,000 Single
• $19,000 Qualifying Head of Household 

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Extensions

Are you having trouble paying taxes? Do you need more time to file? Follow the steps below to get back on track:

1. File your return, with or without a payment. The Oklahoma Tax Commission honors the IRS extension. However, this is only an extension to file, not to pay.
2. If you do not include 90% of the payment due, you will receive a bill that includes penalty and interest in addition to the amount due.
3. Follow the instructions on the bill to explore your payment options.

Penalty & Interest

Delinquent Penalty and Interest
If at least 90% of the tax liability is not paid by the original due date of the return, the unpaid tax becomes delinquent and a penalty of 5% shall be charged thereon.

If less than 100% of the tax liability is paid by the original due date of the return, interest on the unpaid amount is assessed, even when no delinquent penalty is assessed. The unpaid tax becomes delinquent and interest is charged at the rate of 1.25% per month from the date of the delinquency until paid.

Underpayment of Estimated Tax Penalty
Estimated tax payments were required if the tax liability exceeds withholding (if applicable) by $500 or more. To avoid the Underpayment of Estimated Tax Interest, timely filed estimated tax payments and withholding (if applicable) are required to be equal to the smaller of 70% of the current year tax liability or 100% of the prior year tax liability.

The Underpayment of Estimated Tax Interest due on any quarterly due date is computed at a rate of 20% per annum for the period of underpayment.

Note: No Underpayment of Estimated Tax Interest will be imposed if the tax liability shown on the return is less than $1,000.

Third-Party Collections
If your account has been referred to one of the following contract collection agencies, please work with them to resolve your account. If you would like to verify a collection agency, or if you think there is an error with your account, please contact the Collections Division at 405.521.2212:

OTC Contracted Collection Agencies:

• Harris & Harris LTD (H&H) (855) 443-1919
• Linebarger, Goggan, Blair & Sampson, LLC (LGBS) (877) 304-6848