Fees May Be Part of Taxable Service in Oklahoma
- Sep 3, 2015 | Gail Cole
Is the "basic fee" charged to copy medical records subject to Oklahoma sales tax? What about postage and shipping fees charged to send these copies?
Under Oklahoma law (§68-1354), an excise tax of 4.5% of the gross receipts or gross proceeds of sales is imposed on the following:
“Printing or printed matter of all types, kinds, or character and … any service of printing or overprinting, including the copying of information by mimeograph, multigraph, or by otherwise duplicating written or printed matter in any manner, or the production of microfiche containing information from magnetic tapes or other media furnished by customers.”
In a Oklahoma Tax Commission explained that “the basic fee is a charge by the seller for services necessary to complete the sale of tangible copies of medical records and, as such, is part of the gross receipts subject to sales tax.”
Postage and shipping charges are considered delivery charges. In Oklahoma, separately stated delivery charges are not subject to sales tax. However, delivery charges that are not separately stated are part of the “gross receipts, gross proceeds, or sales price” and are therefore subject to tax (§68-1352).
Please note that letter rulings issued by the Tax Commission “may be generally relied upon only by the entity to whom it is issued, assuming all pertinent facts have been accurately and completely stated, and there has been no change in applicable law.”
That said, letter rulings reference law and indicate how the Tax Commission interprets it. As such, they can be quite instructive.
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