Okla. Admin. Code § 710:50-15-96

Current through Vol. 42, No. 1, September 16, 2024

Section 710:50-15-96 - Sales tax relief credit

(a)General provisions. Eligible individual taxpayers may claim an income tax credit for "Sales Tax Relief" pursuant to 68 O.S. § 5011. The credit is forty dollars ($40.00) multiplied by the number of allowable personal exemptions the taxpayer is entitled to claim under the Oklahoma Income Tax Act.

(b)Eligible taxpayers. For purposes of this Section, "Eligible Taxpayer" means an individual who is a resident of, and domiciled in Oklahoma, for the entire calendar year.

(c)Gross Household Income. For purposes of this Section "Gross Household Income" is the gross income of every type received by all persons occupying the same household. It includes, but is not limited to, pensions, annuities, federal social security benefits, unemployment payments, veterans disability compensation, loss-of-time insurance payments, capital gains, and any other type of income. It is not relevant whether or not the income is taxable for state or federal income tax purposes. "Gross Household Income" does not include gifts, or income that is considered deferred.

(d)Eligibility for tax year 2004. To be eligible to claim this credit, the following Gross Household Income limits apply for tax year 2004:

(1) For those taxpayers that can claim no allowable personal exemption other than themselves or their spouse, Gross Household Income cannot exceed Fifteen Thousand Dollars ($15,000.00).

(2) For those taxpayers who can claim a personal exemption other than themselves or their spouse; who are at least 65 years of age; or, who have a physical disability that is a substantial handicap to employment, Gross Household Income cannot exceed Thirty Thousand Dollars ($30,000.00).

(e)Eligibility for tax year 2005 and following years. To be eligible to claim this credit, the following Gross Household Income limits apply for tax year 2005 and following years:

(1) For those taxpayers that can claim no allowable personal exemption other than themselves or their spouse, Gross Household Income cannot exceed Twenty Thousand Dollars ($20,000.00).

(f)Filing Requirements. Procedures for claiming the "Sales Tax Relief" credit are:

(1) For tax years beginning before January 1, 2007:

(A) If the claim for sales tax relief is taken as a direct credit against the income taxes owed by the taxpayer, the claim must be filed by April 15 as part of the regular income tax return, using Oklahoma Tax Commission Form 538S (OTC Form 538S). Extensions of time to file an Oklahoma income tax return will not extend the time to file for the Sales Tax Relief Credit.

(B) If the claim for sales tax relief is not taken as a direct credit against income taxes owed by the taxpayer, the claim must be filed by June 30 for the preceding calendar year, using Form 538S as a stand-alone refund claim.

(2) For tax years beginning on or after January 1, 2007:

(A) If the taxpayer has an income tax filing requirement, the claim must be filed by April 15 as part of the regular income tax return in the year following the close of the taxable year, unless the taxpayer has been granted a valid extension of time to file said income tax return (including the April 20^th due date for electronically filed returns). In the case where a valid extension of time to file has been granted, the claim for sales tax relief may be filed with the income tax return pursuant to the extension granted. In all cases taxpayers must attach Oklahoma Tax Commission Form 538S (OTC Form 538S) to their regular income tax return in order to claim the sales tax relief credit.

(B) If the taxpayer does not have an income tax filing requirement the claim must be filed by June 30 for the preceding calendar year, using Form 538S.

(g)Exceptions and exclusions. The exceptions and exclusions set out in this subsection apply to the "Sales Tax Relief" credit.

(1) Persons who have received temporary assistance for needy families (TANF) for any month during the tax year are not eligible for the sales tax refund under this Section, but shall receive sales tax relief as a part of their monthly TANF benefit. [See: 68 O.S. § 5013(B) ]

(2) The Oklahoma Department of Human Services will issue the sales tax refund to persons who have continuously received aid to the aged, blind, disabled or Medicaid payments for nursing home care for the tax year. [See: 68 O.S. § 5013(C),(D) ]

(3) A person convicted of a felony shall not be permitted to file a claim for sales tax relief for any year for which that person is an inmate in the custody of the Department of Corrections for any part of that year. [See: 68 O.S. § 5011(E) ]

(4) Alien individuals living in Oklahoma under a temporary or restricted status do not qualify for the sales tax relief credit. [See:8 U.S. § 1101(a)(15)(B) and §1101(a)(15)(F)(i) ]

(5) If a taxpayer or spouse died during the tax year, the sales tax credit cannot be claimed for the deceased. However, if the death occurred after the close of the tax year, but before the claim for sales relief was filed, the sales tax credit or refund for the deceased will be issued to the deceased's estate. [See: 68 O.S. § 5011 ]

Okla. Admin. Code § 710:50-15-96

Added at 22 Ok Reg 354, eff 1-1-05 (emergency); Added at 22 Ok Reg 1532, eff 6-11-05; Amended at 25 Ok Reg 728, eff 12-27-07 (emergency); Amended at 25 Ok Reg 2056, eff 7-1-08