Oklahoma – Tax Collection Requirements Change For Remote Sellers

What is a remote seller, and how did the U.S. Supreme Court decision in South Dakota v. Wayfair and recent Oklahoma legislation affect them?

A remote seller is a seller that does not maintain a place of business in a state but sells taxable items at retail into that state through the internet or by other means. Prior to the U.S. Supreme Court decision in South Dakota v. Wayfair, states were not allowed to require sellers to collect its tax unless the seller had established a physical presence in that state. The Supreme Court removed that restriction, and Oklahoma has enacted legislation that requires remote sellers to collect and remit tax on sales into the state.

Is there an exception in Oklahoma for small sellers?

Yes, legislation enacted this year provides that sellers with annual taxable sales less than $100,000 are not required to collect the tax. The sales threshold is calculated based on sales made during the preceding or current calendar year. The duty to collect and remit the tax applies to the first calendar month after the month the threshold is met. Remote sellers that do not meet the $100,000 sales threshold are still required to notify purchasers that Oklahoma tax is due and must be paid by the purchaser on items brought into the state.

For The Full Story: oklahoman.com

the oklahoman
by paula burkes
december 10, 2019