Okla. Admin. Code § 670:20-45-2

Current through Vol. 42, No. 3, October 15, 2024

Section 670:20-45-2 - Sales tax levy and exemptions

(a)General levy on purchase of a vehicle. Sales tax is levied upon purchase of a vehicle, unless an exemption from that levy applies. Sales tax is to be paid by the consumer in the same manner and time as the vehicle excise tax for said vehicle is due. No sales tax is assessed when transferring ownership of a vehicle for which no purchase was involved.

(b)Exclusions by type. Sales tax is not collected at the time of titling or registration of purchased manufactured homes; boats; outboard motors; special mobilized machinery; low-speed or medium-speed electrical vehicles; trailers registered as farm or private trailers.

(c)Exemptions. In general, vehicles purchased by sales tax exempt entities are exempt from the assessment of vehicle sales tax. Following is information on some of the more frequently encountered sales tax exemptions. Presentation of documentation supporting the exemption may be required.

(1)Agricultural permit holder. All-terrain vehicle, utility vehicle, or off-road motorcycle purchased by holder of agricultural permit. Presentation of permit required.

(2)Church. Vehicle purchased by a church.

(3)City. Vehicle purchased by a city.

(4)Corporate transfer. Certain transfers of vehicle ownership between corporation and shareholder.

(5)County. Vehicle purchased by a county.

(6)Disabled veteran (100%). Vehicles purchased by a 100% DAV, or their surviving spouse, may have a portion of the purchase price exempted from sales tax. Veteran/surviving spouse choosing this option must designate that portion of their statutorily allowed annual sales tax exemption allowance they have available and wish to apply to the vehicle purchase price. Completion of an MV Sales Tax Exemption Certificate is required, on which the veteran/surviving spouse declares the amount of their available annual sales tax purchase price exemption they wish to have applied to the vehicle purchase price.

(7)Dealer. Vehicle purchased by a licensed dealer and being held for resale.

(8)Federal credit union. Vehicle purchased by a federal credit union.

(9)Federal land bank. Vehicle purchased by a federal land bank.

(10)Fire protection district. Vehicle purchased by a fire protection district.

(11)Housing authority. Vehicle purchased by a housing authority.

(12)Indian Tribal Government. Vehicle purchased by an Indian Tribal Government.

(13)Insurance loss. Vehicle transfer to insurance company following payment of a loss

(14)International Registration Plan (IRP). Vehicles purchased to be registered under IRP.

(15)Leasing company. Vehicle purchased by a leasing company to be leased. Presentation of sales tax permit number required.

(16)Limited liability corporation. Certain transfers of vehicle ownership involving LLCs.

(17)Partnership transfer. Certain transfers of vehicle ownership between partnership and partners.

(18)Public trust. Vehicle purchased by a public trust.

(19)Red Cross. Vehicle purchased by the Red Cross.

(20)Rental title. Vehicle purchased by a rental company to be used as a rental vehicle and being issued a rental certificate of title. Sales tax permit number required.

(21)Rural ambulance. Vehicle purchased to be utilized as a rural ambulance.

(22)Rural electric cooperative. Vehicle purchased by a rural electric cooperative.

(23)Rural gas district. Vehicle purchased by a rural gas district.

(24)Rural sewer district. Vehicle purchased by a rural sewer district.

(25)Rural water district. Vehicle purchased by a rural water district.

(26)Sales tax exemption permit or letter. Vehicle purchased by possessor of an Oklahoma sales tax exemption permit, or an Oklahoma Tax Commission exemption letter. The permit or letter must be presented and completion of a MV sales tax exemption certificate is required.

(27)Salvage dealer. Vehicle purchased by a licensed automotive dismantler.

(28)School district. Vehicle purchased by a school district.

(29)Sole proprietorship. Transfer of vehicle ownership between a sole proprietorship and owner of the sole proprietorship.

(30)State. Vehicle purchased by the State.

(31)Volunteer fire department. Vehicle purchased to be utilized by a volunteer fire department.

(32)Water conservancy district. Vehicle purchased by a water conservancy district.

(33)Commercial Trailers. Trailers used commercially

Okla. Admin. Code § 670:20-45-2

Adopted by Oklahoma Register, Volume 41, Issue 23, August 15, 2024, eff. 8/25/2024