Oklahoma Sales Tax Holiday set for August 1-3 expected to boost sales Published July 25, 2014 Oklahoma’s annual sales tax holiday will begin at 12:01 am on Friday, Aug. 1 and end at twelve midnight on Sunday, Aug. 3. Certain clothing and shoe purchases are exempt from sales tax for this time period only. Qualified items are exempt from state, city, county and local municipality sales taxes. The Oklahoma Legislature passed Senate Bill 861 during the 2007 Legislative Session to benefit both consumers and retailers in the state by providing sales tax exempt shopping. This is designed to help businesses by providing a boost in the economy and the consumer by allowing them to save money when shopping for clothing and shoes Retailers are required to participate and may not collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. For more information and answers to common questions on the sales tax holiday, as well as a listing of sales tax exempt items, please refer to the Oklahoma Tax Commission website at tax.ok.gov. What items are exempt from sales tax during the sales tax holiday? Sales of any article of clothing or footwear designed to be worn on or about the human body and the sales price of the article is less than one hundred dollars ($100) are exempt. This does not apply to the sale of any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear What if the retailer or purchaser has a coupon that reduces the purchase price of an item to less than $100? If a retailer offers a discount to reduce the price of an eligible item to less than $100 the item will qualify for the sales tax exemption. This applies to all discounts even if a retailer’s coupon or loyalty card is required to secure the discount. If a retailer accepts a coupon that entitles the retailer to third-party reimbursement, such as a manufacturer’s coupon, the discount provided by the coupon does not reduce the item’s sales price for purposes of determining whether the item is eligible for the exemption. How is an exchange of merchandise handled? If a customer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, tax is not to be charged even if the exchange is made after the sales tax holiday. If a customer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, sales tax applies to the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday. If a customer buys an eligible item before the holiday period, but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item. Will online pu\rchases qualify for the sales tax holiday? Eligible items sold to purchasers by mail, telephone, email or internet shall qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
Posted on: Thu, 31 Jul 2014 15:26:21 +0000
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