Okla. Admin. Code § 710:65-1-9

Current through Vol. 42, No. 4, November 1, 2024

Section 710:65-1-9 - Gross receipts, gross proceeds, and sales price

(a)General provisions. The gross proceeds, gross receipts, or sales price reported by the taxpayer must include the total receipts from all sources, including cash from sales, charge sales, credits, services, and property other than cash accepted as consideration. Sales tax reports are to be filed on an accrual accounting basis. Sales tax should be reported and remitted for the month that the sale is made regardless of whether payment is received, charged, deferred, or otherwise to be made in the future, and regardless of the time or manner of payment.

(b)Scope of "gross receipts", "gross proceeds",or "sales price"."Gross receipts", "gross proceeds",or"sales price"means the total amount of consideration, including cash, credit, property and services, for which personal property or services are sold, leased or rented, valued in money, whether received in money or otherwise, without any deduction for the following:

(1)The seller's cost of the property sold;

(2)The cost of materials used, labor, or service cost;

(3)Interest, losses, all costs of transportation to the seller, all taxes imposed on the seller, and any other expense of the seller;

(4)Charges by the seller for any services necessary to complete the sale, other than delivery and installation charges;

(5)Delivery charges and installation charges, unless separately-stated on the invoice, billing, or similar document given to the purchaser; and,

(6)Credit for any trade-in.

(c)Excluded items and transactions. "gross receipts", "gross proceeds", or "sales price"shall not include:

(1)Discounts, including cash, term, or coupons that are not reimbursed by a third party that are allowed by a seller and taken by a purchaser on a sale;

(2)Interest, financing, and carrying charges from credit extended on the sale of personal property or services, if the amount is separately-stated on the invoice, bill of sale, or similar document given to the purchaser; and,

(3)Any taxes legally imposed directly on the consumer that are separately-stated on the invoice, bill of sale, or similar document given to the purchaser. [68 O.S. § 1352(12) ]

(d)"Gross receipts","gross proceeds", or "sales price"shall include consideration received by the seller from third parties if:

(1)The seller actually receives consideration from a party other than the purchaser and the consideration is directly related to a price reduction or discount on the sale;

(2)The seller has an obligation to pass the price reduction or discount through to the purchaser;

(3)The amount of the consideration attributable to the sale is fixed and determinable by the seller at the time of the sale of the item to the purchaser; and

(4)One of the following criteria is met:

(A)The purchaser presents a coupon, certificate or other documentation to the seller to claim a price reduction or discount where the coupon, certificate or documentation is authorized, distributed or granted by a third party with the understanding that the third party will reimburse any seller to whom the coupon, certificate or documentation is presented;

(B)The purchaser identifies himself or herself to the seller as a member of a group or organization entitled to a price reduction or discount; provided, a "preferred customer" card that is available to any patron does not constitute membership in such a group; or

(C)The price reduction or discount is identified as a third-party price reduction or discount on the invoice received by the purchaser or on a coupon, certificate or other documentation presented by the purchaser.

(e)Examples and illustrations. Examples and illustrations of common situations and transactions are set out in this subsection, with information as to how gross receipts, gross proceeds, or sales price should be determined in each instance:

(1)Trade-ins. The value of trade-ins accepted by a taxpayer in lieu of money or other consideration may not be deducted from the gross proceeds.

(2)Sales value.The gross proceeds must also include the sales value, as defined in OAC710:65-1-2, of any goods, wares, merchandise or property withdrawn or used from the established place of business or from the stock in trade.

(3)Charge accounts. Sales tax applies to credit sales at the time the sale is made, regardless of the time or manner in which payment is to be made. Sales tax is due upon transfer of title or possession regardless of method or time of payment.

(4)Conditional sales. The tax applies to conditional sales of tangible personal property and taxable services. The gross proceeds reported by the taxpayer must include all conditional sales made during the month for which the report is filed.

(5)Coupons. The procedure regarding the use of coupons used to purchase tangible personal property will be as follows:

(A) If the coupon is redeemable by a manufacturer or another third party, the original price of the item, before the allowance offered by the coupon, is subject to tax.

(B) If the coupon offering a reduced price is issued by the retailer, it is a method of promotion and the reduced price is subject to tax.

(C) The purchase of the right to receive specific manufacturer's coupons, which coupons can then be redeemed at a retailer when purchasing the item(s) described in the coupon, is not subject to sales tax.

Okla. Admin. Code § 710:65-1-9

Amended at 15 Ok Reg 2827, eff 6-25-98; Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 25 Ok Reg 2070, eff 7-1-08; Amended at 27 Ok Reg 2308, eff 7-11-10