Okla. Stat. tit. 68, § 68-1407.5

Oklahoma Statutes - Title 68. Revenue and Taxation Page 671

A. It is hereby declared to be the intent of the Oklahoma

Legislature to specifically include within the use tax levied by

this article all storage, use or other consumption of tangible

personal property purchased or brought into this state through the

continuous, regular or systematic solicitation in the Oklahoma

consumer market by out-of-state retailers through the Internet, mail

order and catalog publications.

B. The Oklahoma Legislature finds that out-of-state retailers

purposefully direct their activities through the Internet and other

media at Oklahoma residents, that the magnitude of those contacts

are more than sufficient for due process purposes, and that the use

tax is related to the benefits the out-of-state retailers receive

from access to the state. The consumers of these retail sales are

not paying use taxes when the out-of-state retailer does not collect

the tax as provided in this article. The failure of these out-of-

state retailers to collect the use tax due and owing to the State of

Oklahoma and its jurisdictions is detrimental to the ability of the

state and local governments to provide the services and benefits

bestowed upon the out-of-state retailer and their Oklahoma

consumers.

C. The Oklahoma Legislature finds that the sales and use tax

system established under Oklahoma law does not pose an undue burden

on out-of-state retailers and provides sufficient simplification to

warrant the collection and remittance of use taxes by out-of-state

retailers that are due and owing to the State of Oklahoma and its

local jurisdictions. In support of this finding:

1. The state is a member of the Streamlined Sales and Use Tax

Agreement and has amended its laws to be in full compliance with its

terms;

2. The state provides state level administration of sales and

use taxes levied by its cities, counties and other local

jurisdictions by contracting with these entities. All cities,

counties and other local jurisdictions levying sales and use taxes

shall continue to contract with the Oklahoma Tax Commission for

administration of its sales and use taxes so that sellers collecting

and remitting these taxes will not have to register or file returns

with, remit funds to, or be subject to independent audits from the

local taxing jurisdictions;

3. The state provides and maintains a database that describes

boundary changes for all taxing jurisdictions within this state for

sales and use tax purposes and the sales and use tax rates for all

of the jurisdictions levying taxes within the state;

4. The state provides a deduction of the tax due to all

retailers, including out-of-state retailers, to compensate them for

recordkeeping, filing reports, collecting and remitting the tax in a

timely manner;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 672

5. The state provides a mechanism for the electronic submission

of sales and use tax reports and payments;

6. The state provides liability relief to sellers for

collecting an incorrect amount of tax as a result of relying on

erroneous data provided by the Tax Commission on rates, boundaries

or taxing jurisdiction assignments;

7. The state participates in a central registration system that

allows out-of-state retailers to register one time in one place for

multiple states;

8. All local jurisdictions have the same tax base as the state

for sales and use taxes, except as permitted under the Streamlined

Sales and Use Tax Agreement;

9. The state does not require the payment of a registration fee

from an out-of-state retailer which does not have a legal

requirement to register;

10. The state requires the Oklahoma Tax Commission to give

notice to vendors of local rate changes and boundary changes at

least sixty (60) days prior to the effective date of the change;

11. The state has the same tax rate for every taxable item;
9. The state does not require the payment of a registration fee

from an out-of-state retailer which does not have a legal

requirement to register;

10. The state requires the Oklahoma Tax Commission to give

notice to vendors of local rate changes and boundary changes at

least sixty (60) days prior to the effective date of the change;

11. The state has the same tax rate for every taxable item;

12. The state only requires the filing of a single tax return

to cover all taxing jurisdictions with the state;

13. The Oklahoma Tax Commission provides, free of charge,

business tax workshops for sellers designed to provide information

and answer questions regarding the Oklahoma sales and use tax

system;

14. The state allows electronic payments to be made by either

ACH credit or by ACH debit;

15. The state allows a deduction from taxable sales for bad

debts;

16. The state provides a taxability matrix which gives

information on the taxability of a wide variety of items including

all items defined in the Streamlined Sales and Use Tax Agreement;

and

17. The state pays the direct cost of a certified service

provider to perform all of an out-of-state seller’s sales and use

tax functions other than the seller’s obligation to remit taxes on

its own purchases.