{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-1354","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-1354","heading":"Tax levy - Rate - Sales subject to tax","body":"A. There is hereby levied upon all sales, not otherwise\n\nexempted in the Oklahoma Sales Tax Code, an excise tax of four and\n\none-half percent (4.5%) of the gross receipts or gross proceeds of\n\neach sale of the following:\n\n1. Tangible personal property, except newspapers and\n\nperiodicals;\n\n2. Natural or artificial gas, electricity, ice, steam, or any\n\nother utility or public service, except water, sewage and refuse.\n\nProvided, the rate of four and one-half percent (4.5%) shall not\n\napply to sales subject to the provisions of paragraph 6 of Section\n\n1357 of this title;\n\n3. Transportation for hire to persons by common carriers,\n\nincluding railroads both steam and electric, motor transportation\n\ncompanies, pullman car companies, airlines, and other means of\n\ntransportation for hire, excluding:\n\na. transportation services provided by a tourism service\n\nbroker which are incidental to the rendition of\n\ntourism brokerage services by such broker to a\n\ncustomer regardless of whether or not such\n\ntransportation services are actually owned and\n\noperated by the tourism service broker. For purposes\n\nof this subsection, \"tourism service broker\" means any\n\nperson, firm, association or corporation or any\n\nemployee of such person, firm, association or\n\ncorporation which, for a fee, commission or other\n\nvaluable consideration, arranges or offers to arrange\n\ntrips, tours or other vacation or recreational travel\n\nplans for a customer, and\n\nb. transportation services provided by a funeral\n\nestablishment to family members and other persons for\n\npurposes of conducting a funeral in this state;\n\n4. Intrastate, interstate and international telecommunications\n\nservices sourced to this state in accordance with Section 1354.30 of\n\nthis title and ancillary services. Provided:\n\na. the term \"telecommunications services\" shall mean the\n\nelectronic transmission, conveyance, or routing of\n\nvoice, data, audio, video, or any other information or\n\nsignals to a point, or between or among points. The\n\nterm \"telecommunications services\" includes such\n\ntransmission, conveyance, or routing in which computer\n\nprocessing applications are used to act on the form,\n\ncode or protocol of the content for purposes of\n\ntransmission, conveyance or routing without regard to\n\nwhether such service is referred to as voice-over\n\nInternet protocol services or is classified by the\n\nFederal Communications Commission as enhanced or value\n\nadded. \"Telecommunications services\" do not include:\n\n(1) data processing and information services that\n\nallow data to be generated, acquired, stored,\n\nprocessed, or retrieved and delivered by an\n\nelectronic transmission to a purchaser where such\n\npurchaser's primary purpose for the underlying\n\ntransaction is the processed data or information,\n\n(2) installation or maintenance of wiring or\n\nequipment on a customer's premises,\n\n(3) tangible personal property,\n\n(4) advertising, including but not limited to\n\ndirectory advertising,\n\n(5) billing and collection services provided to third\n\nparties,\n\n(6) Internet access services,\n\n(7) radio and television audio and video programming\n\nservices, regardless of the medium, including the\n\nfurnishing of transmission, conveyance and\n\nrouting of such services by the programming\n\nservice provider. Radio and television audio and\n\nvideo programming services shall include, but not\n\nbe limited to, cable service as defined in 47\n\nU.S.C. 522(6) and audio and video programming\n\nservices delivered by commercial mobile radio\n\nservice providers, as defined in 47 C.F.R. 20.3,\n\n(8) ancillary services, or\ning of transmission, conveyance and\n\nrouting of such services by the programming\n\nservice provider. Radio and television audio and\n\nvideo programming services shall include, but not\n\nbe limited to, cable service as defined in 47\n\nU.S.C. 522(6) and audio and video programming\n\nservices delivered by commercial mobile radio\n\nservice providers, as defined in 47 C.F.R. 20.3,\n\n(8) ancillary services, or\n\n(9) digital products delivered electronically,\n\nincluding but not limited to, software, music,\n\nvideo, reading materials or ring tones,\n\nb. the term \"interstate\" means a \"telecommunications\n\nservice\" that originates in one United States state,\n\nor a United States territory or possession, and\n\nterminates in a different United States state or a\n\nUnited States territory or possession,\n\nc. the term \"intrastate\" means a telecommunications\n\nservice that originates in one United States state or\n\na United States territory or possession, and\n\nterminates in the same United States state or a United\n\nStates territory or possession,\n\nd. the term \"ancillary services\" means services that are\n\nassociated with or incidental to the provision of\n\ntelecommunications services, including but not limited\n\nto \"detailed telecommunications billing\", \"directory\n\nassistance\", \"vertical service\", and \"voice mail\n\nservices\",\n\ne. in the case of a bundled transaction that includes\n\ntelecommunication service, ancillary service, Internet\n\naccess or audio or video programming service:\n\n(1) if the price is attributable to products that are\n\ntaxable and products that are nontaxable, the\n\nportion of the price attributable to the\n\nnontaxable products may be subject to tax unless\n\nthe provider can identify by reasonable and\n\nverifiable standards such portion for its books\n\nand records kept in the regular course of\n\nbusiness for other purposes, including, but not\n\nlimited to, nontax purposes, and\n\n(2) the provisions of this paragraph shall apply\n\nunless otherwise provided by federal law, and\n\nf. a sale of prepaid calling service or prepaid wireless\n\ncalling service shall be taxable at the time of sale\n\nto the customer;\n\n5. Telecommunications nonrecurring charges, which means an\n\namount billed for the installation, connection, change or initiation\n\nof telecommunications services received by a customer;\n\n6. Printing or printed matter of all types, kinds, or character\n\nand, except for services of printing, copying or photocopying\n\nperformed by a privately owned scientific and educational library\n\nsustained by monthly or annual dues paid by members sharing the use\n\nof such services with students interested in the study of geology,\n\npetroleum engineering or related subjects, any service of printing\n\nor overprinting, including the copying of information by mimeograph,\n\nmultigraph, or by otherwise duplicating written or printed matter in\n\nany manner, or the production of microfiche containing information\n\nfrom magnetic tapes or other media furnished by customers;\n\n7. Service of furnishing rooms by hotel, apartment hotel,\n\npublic rooming house, motel, public lodging house, or tourist camp;\n\n8. Service of furnishing storage or parking privileges by auto\n\nhotels or parking lots;\n\n9. Computer hardware, software, coding sheets, cards, magnetic\n\ntapes or other media on which prewritten programs have been coded,\n\npunched, or otherwise recorded, including the gross receipts from\n\nthe licensing of software programs;\n\n10. Foods, confections, and all drinks sold or dispensed by\n\nhotels, restaurants, or other dispensers, and sold for immediate\n\nconsumption upon the premises or delivered or carried away from the\n\npremises for consumption elsewhere;\n\n11. Advertising of all kinds, types, and characters, including\n\nany and all devices used for advertising purposes except those\n\nspecifically exempt pursuant to the provisions of Section 1357 of\n\nthis title;\nsold or dispensed by\n\nhotels, restaurants, or other dispensers, and sold for immediate\n\nconsumption upon the premises or delivered or carried away from the\n\npremises for consumption elsewhere;\n\n11. Advertising of all kinds, types, and characters, including\n\nany and all devices used for advertising purposes except those\n\nspecifically exempt pursuant to the provisions of Section 1357 of\n\nthis title;\n\n12. Dues or fees to clubs including free or complimentary dues\n\nor fees which have a value equivalent to the charge that would have\n\notherwise been made, including any fees paid for the use of\n\nfacilities or services rendered at a health spa or club or any\n\nsimilar facility or business;\n\n13. Tickets for admission to or voluntary contributions made to\n\nplaces of amusement, sports, entertainment, exhibition, display, or\n\nother recreational events or activities, including free or\n\ncomplimentary admissions which have a value equivalent to the charge\n\nthat would have otherwise been made; provided, that the state tax\n\ngenerated from the sale of tickets for admission by an aquarium\n\nexempt from taxation pursuant to the provisions of the Internal\n\nRevenue Code, 26 U.S.C., Section 501(c)(3), or owned or operated by\n\na public trust or political subdivision of this state, shall be\n\ncollected and disbursed to the nonprofit organization, public trust\n\nor political subdivision responsible for the aquarium's operations\n\nfor use by that entity for promoting visitation primarily to out-of-\n\nstate residents;\n\n14. Charges made for the privilege of entering or engaging in\n\nany kind of activity, such as tennis, racquetball, or handball, when\n\nspectators are charged no admission fee;\n\n15. Charges made for the privilege of using items for\n\namusement, sports, entertainment, or recreational activity, such as\n\ntrampolines or golf carts;\n\n16. The rental of equipment for amusement, sports,\n\nentertainment, or other recreational activities, such as bowling\n\nshoes, skates, golf carts, or other sports or athletic equipment;\n\n17. The gross receipts from sales from any vending machine\n\nwithout any deduction for rental to locate the vending machine on\n\nthe premises of a person who is not the owner or any other\n\ndeductions therefrom;\n\n18. The gross receipts or gross proceeds from the rental or\n\nlease of tangible personal property, including rental or lease of\n\npersonal property when the rental or lease agreement requires the\n\nvendor to launder, clean, repair, or otherwise service the rented or\n\nleased property on a regular basis, without any deduction for the\n\ncost of the service rendered. If the rental or lease charge is\n\nbased on the retail value of the property at the time of making the\n\nrental or lease agreement and the expected life of the property, and\n\nthe rental or lease charge is separately stated from the service\n\ncost in the statement, bill, or invoice delivered to the consumer,\n\nthe cost of services rendered shall be deducted from the gross\n\nreceipts or gross proceeds;\n\n19. Flowers, plants, shrubs, trees, and other floral items,\n\nwhether or not produced by the vendor, sold by persons engaged in\n\nflorist or nursery business in this state, including all orders\n\ntaken by an Oklahoma business for delivery in another state. All\n\norders taken outside this state for delivery within this state shall\n\nnot be subject to the taxes levied in this section;\n\n20. Tangible personal property sold to persons, peddlers,\n\nsolicitors, or other salesmen, for resale when there is likelihood\n\nthat this state will lose tax revenue due to the difficulty of\n\nenforcing the provisions of the Oklahoma Sales Tax Code because of:\n\na. the operation of the business,\n\nb. the nature of the business,\n\nc. the turnover of independent contractors,\n\nd. the lack of place of business in which to display a\n\npermit or keep records,\n\ne. lack of adequate records,\n\nf. the fact that the persons are minors or transients,\nstate will lose tax revenue due to the difficulty of\n\nenforcing the provisions of the Oklahoma Sales Tax Code because of:\n\na. the operation of the business,\n\nb. the nature of the business,\n\nc. the turnover of independent contractors,\n\nd. the lack of place of business in which to display a\n\npermit or keep records,\n\ne. lack of adequate records,\n\nf. the fact that the persons are minors or transients,\n\ng. the fact that the persons are engaged in service\n\nbusinesses, or\n\nh. any other reasonable reason;\n\n21. Any taxable services and tangible personal property\n\nincluding materials, supplies, and equipment sold to contractors for\n\nthe purpose of developing and improving real estate even though said\n\nreal estate is intended for resale as real property, hereby declared\n\nto be sales to consumers or users, however, taxable materials,\n\nsupplies and equipment sold to contractors as provided by this\n\nsubsection which are purchased as a result of and subsequent to the\n\ndate of a contract entered into either prior to the effective date\n\nof any law increasing the rate of sales tax imposed by this article,\n\nor entered into prior to the effective date of an ordinance or other\n\nmeasure increasing the sales tax levy of a political subdivision\n\nshall be subject to the rate of sales tax applicable, as of the date\n\nsuch contract was entered into, to sales of such materials, supplies\n\nand equipment if such purchases are required in order to complete\n\nthe contract. Such rate shall be applicable to purchases made\n\npursuant to the contract or any change order under the contract\n\nuntil the contract or any change order has been completed, accepted\n\nand the contractor has been discharged from any further obligation\n\nunder the contract or change order or until two (2) years from the\n\ndate on which the contract was entered into whichever occurs first.\n\nThe increased sales tax rate shall be applicable to all such\n\npurchases at the time of sale and the contractor shall file a claim\n\nfor refund before the expiration of three (3) years after the date\n\nof contract completion or five (5) years after the contract was\n\nentered into, whichever occurs earlier. However, the Oklahoma Tax\n\nCommission shall prescribe rules and regulations and shall provide\n\nprocedures for the refund to a contractor of sales taxes collected\n\non purchases eligible for the lower sales tax rate authorized by\n\nthis subsection;\n\n22. Any taxable services and tangible personal property sold to\n\npersons who are primarily engaged in selling their services, such as\n\nrepairmen, hereby declared to be sales to consumers or users; and\n\n23. Canoes and paddleboats as defined in Section 4002 of Title\n\n63 of the Oklahoma Statutes.\n\nB. All solicitations or advertisements in print or electronic\n\nmedia by Group Three vendors, for the sale of tangible property to\n\nbe delivered within this state, shall contain a notice that the sale\n\nis subject to Oklahoma sales tax, unless the sale is exempt from\n\nsuch taxation.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"8bce647c009939221022b98d07c7a2c90f7fb749bf6e7f1fc42a667e368a5586","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-1353v2","next":"us-ok/okla.-stat.-tit.-68-68-1354.10"},"notice":"GroundRules: Original legal text. Not legal advice."}