Oklahoma Sales Tax Holiday
- Jul 30, 2012 | Susan McLain
Retailers should be aware that the sales price of “…any article of clothing or footwear designed to be worn on or about the human body…” with a sales price of less than $100 is exempt. However, 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.”
Other items such as handbags, jewelry, luggage, umbrellas, watches and similar items are also taxable.
Anyone may purchase items sales tax-exempt and all retailers are required to participate in the sales tax holiday. Here are a few things that each retailer should be aware of:
Buy One, Get One items “…cannot be averaged to qualify both items for the exemption. The exemption depends on the actual price paid for each item.”
Coupons and discounts can be used to reduce the price of an eligible item. However, manufacturer’s coupons cannot be used to reduce the sales price to qualify for the exemption.
Layaway items qualify for the exemption if final payment is made and the item received during the sales tax exemption period.
Online, mail-order and catalog purchases qualify if the order and payment are made during the sales tax holiday exemption period and the item is available for immediate shipment. Delivery does not have to occur during the holiday time period.
Rain checks—eligible items purchased with a “…previously issued raincheck qualify for the exemption. If a raincheck issued during the sales tax holiday is redeemed after the sales tax holiday, the purchase is not tax exempt.”
Retailers report tax-exempt sales of eligible items during the sales tax holiday on Line 3g, “Other Legal Sales Tax Exemptions,” of the Oklahoma Sales Tax Report.