Taxes - Page One
Oklahoma Tax Commission
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The following taxes are available in a definition format on this page:
Admission Tax
An admission tax of 10 percent is collected on the
admission tickets at race tracks. The track remits the tax after each race day to the Tax
Commission. Monthly, the Commission distributes the tax to the city and county in which
the track is located.
Aircraft Excise Tax
An excise tax of 3.25 percent is levied on the purchase
price of each aircraft that is to be registered with the FAA upon the transfer of legal
ownership of any such aircraft with this state. The excise tax is due at the time of the
transfer of legal ownership or first registration in Oklahoma.
Exemptions include aircraft purchased by commercial airlines.
Beverage Tax
The beverage tax is paid by wholesalers on beer of 3.2
percent or less at $11.25 per 31-gallon barrel.
Bingo Games Tax
All sales of conforming bingo faces, regardless of to whom
the faces are sold, are subject to tax. The bingo tax is 1 cent upon each bingo face.
Boat and Motor Tag
Boats and boat outboard motors in excess of 10 horsepower
are taxed at $1 plus $1 of list price above $150. Maximum annual fee is $150. After first
registration of a new boat or boat motor, registration fees are reduced 10 percent per
year up through the 10th year of registration. A 3.25 percent excise tax in lieu of sales
tax is levied on the manufacturer’s suggested retail price of boats and motors at the
time of first registration. On subsequent changes of ownership, the excise tax is assessed
at 3.25 percent of the vessel’s adjusted value. The adjusted value is determined as
follows: 65 percent of the original value during the second year and thereafter, 65
percent of the previous year’s value.
Boxing Event Admission
Every professional boxing promoter, in Oklahoma, must file
a report for every event within 72 hours after the event and for every month in which
receipts for motion picture rights are received.
Charity Games Tax
The charity game tax is 10 percent of the gross receipts
of the retail sales value of breakopen tickets and 10 percent of price paid for charity
games equipment. These taxes are remitted by the distributor.
Cigarette Stamps
Purchased by wholesalers to affix to packages of
cigarettes to indicate applicable tax.
Cigarette Tax
The cigarette tax is $0.23 per package of 20 cigarettes,
to be paid by registered wholesalers through the purchase of revenue stamps to be affixed
to package before sale.
Compact Tribal Cigarette Payment
Sales of cigarettes at non-compacting tribally owned or
licensed stores are subject to an in lieu fee in the amount of 75 percent of the cigarette
excise taxes already imposed by the State. Compacting tribally owned or licensed stores
are subject to a 25 percent in lieu fee. This fee became effective January 1, 1993, and is
in lieu of all sales and excise taxes on cigarettes.
Compact Tribal Tobacco Payment
Sales of tobacco products at non-compacting tribally owned
or licensed stores are subject to an in lieu fee in the amount of 75 percent of the
tobacco excise taxes already imposed by the State. Compacting tribally owned or licensed
stores are subject to a 25 percent in lieu fee. This fee became effective January 1, 1993,
and is in lieu of all sales and excise taxes on tobacco products.
Documentary Stamps
When the consideration for a real estate transaction
exceeds $100, a tax is imposed at $.75 for each $500 of value or fraction thereof. This is
a state tax collected by county clerks through the sale of documentary stamps to be
affixed to the conveyance instrument.
Drug Tax Stamp
The Illegal Drug Stamp Act authorizes the Tax Commission
to impose fines and penalties if illegal drugs are possessed and not stamped. Stamps are
sold to dealers and a dealer may not possess marijuana or controlled substances unless the
tax has been paid as evidenced by the affixed stamp. The Act does not provide immunity
from criminal prosecution under Oklahoma law.
This act applies to any dealer who purchases, acquires, transports, or imports marijuana
or controlled substances into Oklahoma. Stamps should be permanently affixed to the
packaging or container transporting the marijuana or controlled substance as evidence that
the tax has been paid. Tax is due and payable immediately upon acquisition or possession
by a dealer.
Estate Tax
Estates passing to a surviving spouse are exempt except
for any credit from the federal government which must be paid to the State. Lineal heirs
of decedents who expire during the calendar year 2002 or 2003 are allowed an exemption of
$700,000 and are taxed at rates of ½ of one percent on the first $10,000 graduated to ten
percent for net estates over $10 million. Collateral heirs are taxed at rates of one
percent on the first $10,000 on up to 15 percent on net estates above $1 million.
There is no statutory exemption for collateral heirs.
Estimated Income Tax
Corporate, Trusts, and Individual Taxpayers must make
estimated tax payments when the tax liability for the current year can reasonably be
expected to be $500.00 or more. The estimated tax payments shall be the lesser of
70% of your current year's tax liability or 100% of the tax liability shown on your return
for the preceeding taxable year of 12 months.
The estimated tax payments shall be
paid in four equal* installments of:
One quarter on or before the 15th
day of the fourth month of the taxable year;
One quarter on or before the 15th
day of the sixth month of the taxable year;
One quarter on or before the 15th
day of the ninth month of the taxable year;
One-quarter on or before the 15th
day of the first month of the succeeding taxable year.
Amended declarations may be filed on any of the payment dates.
*For purposes of determining the amount of tax due on any of the
respective dates, taxpayers may compute the tax by placing taxable income on an annualized
basis.
Farm Implement Tax Stamps
Farm equipment and implement dealers (franchise dealers)
shall pay a stamp tax on new and used equipment in inventory in lieu of ad valorem. The
tax is based upon the value of the property and shall include all those items with a list
price of more than $500.00. The stamps may be obtained from the Oklahoma Tax Commission.
Franchise Tax
Domestic and foreign corporations are taxed $1.25 for each
$1,000 or fraction thereof of the amount of capital invested or used in an Oklahoma
business enterprise. Maximum Levy: $20,000; Minimum Levy: $10.
Initial organization fees are in lieu of franchise tax for the fiscal year in which a
corporate certificate or a certificate of domestication is issued.
Foreign corporations are assessed $100 per year for domestic representation by the
Secretary of State.
Freight Car Tax
In lieu of ad valorem tax on freight cars, owners or
operators of freight cars, other than railroad companies, pay a state-levied tax equal to
four percent of the gross revenue derived from the use or operation of freight cars within
the state.
Gas Conservation Excise Tax
Gas conservation excise xax is $.07 per MCF less seven
percent of gross value but not to exceed 1/3 of gross value was repealed July 1, 1995.
Gross Production Tax
The severance tax on oil, casinghead gas, natural gas and
other minerals is a percentage of gross value based on the average monthly product price
as determined by the Tax Commission. The
monthly gross production rates are available on our website. The severance tax on uranium is five percent of gross
value and on asphalt and minerals is 3/4 of one percent of gross value. These taxes are in
lieu of ad valorem taxes on all producing properties.
A petroleum excise tax of 0.095 of one percent of gross value of natural gas, casinghead
gas, and oil produce is also levied to pay for administration of state conservation laws.
It should be noted that gross production tax revenues on oil and gas constitute a
substantial portion of Oklahoma’s tax revenues, relieving manufacturers and other
lines of business and industry from a corresponding portion of the cost of government in
Oklahoma.
Income Tax
Corporation Income Tax
All corporations deriving income from sources within Oklahoma are subject to a flat rate
of six percent on Oklahoma Taxable Income.
Individual Income Tax
Oklahoma Individual income taxes are based on the Federal Adjusted Gross Income, with
certain additions and deductions. Personal exemptions: $1,000 each. The standard deduction
is 15 percent with a minimum of $1,000 and maximum of $2,000. A deduction for Federal
Income Tax may be allowed. Senior citizens (over 65) may qualify for additional
exemptions, ($1,000 single / $2,000 joint return if both spouses are over 65).
Two methods of computation can be used. If Federal Income Tax is not deducted, Method I
rates must be used. If Federal Income Tax is deducted, Method II rates must be used. The
tax liability is the lesser of the two computations.
Method I - No Federal Income Tax DeductionSingle:
From ½ of 1 percent of the first $1,000 of taxable income and graduated up to $344.50
plus 7 percent of income over $10,000.
Married:
From ½ of 1 percent of the first $2,000 of taxable income and graduated up to $755 plus 7
percent of income over $21,000.
Method II - Deducting Federal Income TaxSingle:
From ½ of 1 percent of the first $1,000 of taxable income and graduated up to $867.50
plus 10 percent of income over $24,000.
Married:
From ½ of 1 percent of the first $2,000 of taxable income and graduated up to $1,249.50
plus 10 percent of income over $24,000.
Taxpayers whose filing status is Head of Household use Married rates under both methods.
The starting point to arrive at Oklahoma Taxable Income is Federal Adjusted Gross Income
with certain specific exemptions.
International Fuel Tax Agreement
The International Fuel Tax Agreement (IFTA) is designed to
simplify interstate fuel tax reporting for motor carriers and to reduce the number of fuel
tax reports filed each quarter.
The tax applies to those operating qualified motor vehicles in more than one IFTA
jurisdiction. Qualified vehicles are defined as those:
(1) with a gross vehicle weight exceeding 26,000 pounds; or
(2) with three or more axles, regardless of weight; or
(3) used in combinations of vehicles when the combination exceeds 26,000 pounds gross
vehicle weight.
Fuel taxes for Oklahoma and any member state are reported and paid on one tax return filed
with the Oklahoma Tax Commission. Oklahoma then distributes fuel taxes to the other member
states.
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Web Page last modified 03/19/2003 7:00 a.m.
