Okla. Admin. Code § 710:65-18-6

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

Section 710:65-18-6 - Sourcing of sales involving direct mail

(a)Definitions. The following words and terms, when used in this Section, shall have the following meaning, unless the context clearly indicates otherwise:

(1) "Advertising and promotional direct mail" means printed material that meets the definition of "direct mail," in OAC710:65-18-2, the primary purpose of which is to attract public attention to a product, person, business or organization, or to attempt to sell, popularize or secure financial support for a product, person, business or organization. As used in this definition, the word "product" means tangible personal property, a product transferred electronically or a service.

(2) "Other direct mail " is defined as not "advertising and promotional direct mail " regardless of whether "advertising and promotional direct mail " is included in the same mailing. "Other direct mail " does not include the development of billing information or the provision of any data processing service that is more than incidental. The term includes, but is not limited to:

(A) Transactional direct mail that contains personal information specific to the addressee including, but not limited to, invoices, bills, statements of account, payroll advices;

(B) Any legally required mailings including, but not limited to, privacy notices, tax reports and stockholder reports; and

(C) Other non-promotional direct mail delivered to existing or former shareholders, customers, employees, or agents including, but not limited to, newsletters and informational pieces.

(b) Notwithstanding the provisions of 710:65-18-3,a purchaser ofadvertising and promotional direct mail that is not a holder of a direct pay permit shall provide to the seller in conjunction with the purchase either a Direct Mail Form or information to show the jurisdictions to which theadvertising and promotional direct mail is delivered to recipients.[68 O.S.Supp.2003, § 1354.29(A)]

(1)Upon receipt of the Direct Mail Form, the seller is relieved of all obligations to collect, pay or remit the applicable tax and the purchaser is obligated to pay or remit the applicable tax on a direct pay basis. A Direct Mail Form shall remain in effect for all future sales of advertising and promotional direct mail by the seller to the purchaser until it is revoked in writing.[68 O.S.Supp.2003, § 1354.29(A)]

(2)Upon receipt of information from the purchaser showing the jurisdictions to which theadvertising and promotional direct mail is delivered to recipients, the seller shall collect the tax according to the delivery information provided by the purchaser. In the absence of bad faith, the seller is relieved of any further obligation to collect tax on any transaction where the seller has collected tax pursuant to the delivery information provided by the purchaser.[68 O.S.Supp.2003, § 1354.29(A)]

(c)If the purchaser ofadvertising and promotional direct mail does not have a direct pay permit and does not provide the seller with either a Direct Mail Form or delivery information, as required by subsection(b)of this Section, the seller shall collect the tax according to paragraph (5) of710:65-18-3.Nothing in this subsection shall limit a purchaser's obligation for sales or use tax to any state to which the advertising and promotional direct mail is delivered. [68 O.S.Supp.2003, § 1354.29(B)]

(d)If a purchaser of advertising and promotionaldirect mail provides the seller with documentation of direct pay authority, the purchaser shall not be required to provide a Direct Mail Form or delivery information to the seller.[68 O.S.Supp.2003, § 1354.29(C)]

(e) The sale of "other direct mail " as defined herein is not taxable under the provisions of the Oklahoma Sales Tax Code.

Okla. Admin. Code § 710:65-18-6

Added at 21 Ok Reg 2581, eff 6-25-04; Amended at 29 Ok Reg 563, eff 5-11-12