Okla. Admin. Code § 710:95-4-3

Current through Vol. 42, No. 7, December 16, 2024

Section 710:95-4-3 - Applicability of the rental tax on motor vehicle rentals

(a)General provisions. The tax levied on the rental of motor vehicles is assessed on all rental agreements, except those agreements made with agencies of the State of Oklahoma, the United States government and with those federal instrumentalities upon which the states are prohibited from levying a tax by specific provision of the United States Code, such as federally-chartered credit unions.

(b)Transactions to which the tax is inapplicable. The rental tax on motor vehicles is not applicable to:

(1) An agreement termed a "lease agreement", if in excess of ninety (90) days in duration.

(2) A single agreement termed a "rental agreement", if more than ninety (90) days in duration. However, if a rental business and its customer sign more than one agreement, and the term of each agreement is less than ninety (90) days, the tax applies even though the agreements are to run consecutively and sum of the number of days covered by the agreements exceeds ninety (90) days.

(3) A rental agreement for any truck or truck-tractor registered pursuant to the provisions of 47 O.S. §§ 1120 or 1133, having a laden weight or combined laden weight of eight thousand (8,000) pounds or more.

(4) Any shared vehicle upon the purchase of which applicable taxes were paid.

(c)Rental tax in lieu of motor vehicle excise tax only; other taxes may be applicable. The rental tax on motor vehicle rentals is not in lieu of sales tax, which may be due on the gross receipts of the rental. The rental tax is due on all rental agreements, except those described in (b) of this Section and 68 O.S. Sections 2110(A)(1)-(3), even if the consumer entering into the rental agreement is exempt from sales tax.

Okla. Admin. Code § 710:95-4-3

Added at 30 Ok Reg 1871, eff 7-11-13

Amended by Oklahoma Register, Volume 39, Issue 24, September 1, 2022, eff. 9/11/2022