Oklahoma – Misuse of Nonprofit and Governmental Exemptions

SALT Report 1545 – The Oklahoma State legislature recently enacted legislation that prohibits a person from claiming a sales tax exemption that has been provided to a nonprofit organization or a governmental entity in order to make tax exempt purchases for his or her personal use.
Penalties
  • Any person who knowingly makes an exempt purchase shall be guilty of a misdemeanor and if convicted shall be fined an amount equal to double the amount of sales tax involved, or incarcerated for a  maximum of 60 days, or both, and
  • An administrative fine of $500.00 will be assessed
This bill takes effect November 1, 2012.
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