Okla. Admin. Code § 710:65-19-328

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

Section 710:65-19-328 - Transportation for hire

(a) Sales tax is due on the gross receipts or gross proceeds of transportation for hire to persons by common carrier, including motor transportation companies, pullman car companies, limousines, shuttle services, and other means of transportation for hire. Sales tax is not due on the gross receipts of the sale of transportation by taxicabs.

(b) Transportation for hire is exempt from sales tax:

(1) if the transportation services are provided by a tourism service broker,

(2) if the transportation services are provided by funeral establishments for purposes of conducting a funeral, or

(3) if the transportation services are sales of intrastate charter and tour bus transportation. As used in this paragraph, "intrastate charter and tour bus transportation" means the transportation of persons from one location in this state to another location in this state in a motor vehicle which has been constructed in such a manner that it may lawfully carry more than eighteen persons, and which is ordinarily used or rented to carry persons for compensation. Provided, this exemption shall not apply to regularly scheduled bus transportation for the general public. [See: 68 O.S. § 1357(36) ]

(c) Charges for local transportation are exempt where the fare does not exceed One Dollar ($1.00) or where the transportation is entirely within the corporate limits of a single municipality.

(d) Examples:

(1) A limousine picks up a passenger at a hotel in city A and transports the passenger to the airport which is also located in City A. The charge for the transportation is not subject to sales tax.

(2) A shuttle picks up a passenger in city B and transports the passenger to the airport in city A. The charge for the transportation is subject to sales tax at the state and local tax rate of city B where the service was first initiated.

(e) Transportation by horse-drawn carriages or similar conveyances are sales of transportation and are subject to this rule.

Okla. Admin. Code § 710:65-19-328

Reserved at 10 Ok Reg 1111, eff 2-23-93 (emergency); Added at 10 Ok Reg 3847, eff 7-12-93; Amended at 17 Ok Reg 2677, eff 6-25-00; Amended at 23 Ok Reg 2847, eff 6-25-06; Amended at 27 Ok Reg 2308, eff 7-11-10

Amended by Oklahoma Register, Volume 35, Issue 24, September 4, 2018, eff. 9/14/2018