{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2701","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2701","heading":"Authorization to tax for purposes of municipal government","body":"- Exceptions and limitations.\n\nA. Any incorporated city or town in this state is hereby\n\nauthorized to assess, levy, and collect taxes for general and\n\nspecial purposes of municipal government as the Legislature may levy\n\nand collect for purposes of state government, subject to the\n\nprovisions of subsection F of this section, except ad valorem\n\nproperty taxes. Provided:\n\n1. Taxes shall be uniform upon the same class subjects, and any\n\ntax, charge, or fee levied upon or measured by income or receipts\n\nfrom the sale of products or services shall be uniform upon all\n\nclasses of taxpayers;\n\n2. Motor vehicles may be taxed by the city or town only when\n\nsuch vehicles are primarily used or located in such city or town for\n\na period of time longer than six (6) months of a taxable year;\n\n3. The provisions of this section shall not be construed to\n\nauthorize imposition of any tax upon persons, firms, or corporations\n\nexempted from other taxation under the provisions of Sections 348.1,\n\n624 and 321 of Title 36 of the Oklahoma Statutes, by reason of\n\npayment of taxes imposed under such sections;\n\n4. Cooperatives and communications companies are hereby\n\nauthorized to pass on to their subscribers in the incorporated city\n\nor town involved, the amount of any special municipal fee, charge or\n\ntax hereafter assessed or levied on or collected from such\n\ncooperatives or communications companies;\n\n5. No earnings, payroll or income taxes may be levied on\n\nnonresidents of the cities or towns levying such tax;\n\n6. The governing body of any city or town shall be prohibited\n\nfrom proposing taxing ordinances more often than three times in any\n\ncalendar year, or twice in any six-month period; and\n\n7. Any revenues derived from a tax authorized by this\n\nsubsection not dedicated to a limited purpose shall be deposited in\n\nthe municipal general fund.\n\nB. A sales tax authorized in subsection A of this section may\n\nbe levied for limited purposes specified in the ordinance levying\n\nthe tax. Such ordinance shall be submitted to the voters for\n\napproval as provided in Section 2705 of this title. Any sales tax\n\nlevied or any change in the rate of a sales tax levied pursuant to\n\nthe provisions of this section shall become effective on the first\n\nday of the calendar quarter following approval by the voters of the\n\ncity or town unless another effective date, which shall also be on\n\nthe first day of a calendar quarter, is specified in the ordinance\n\nlevying the sales tax or changing the rate of sales tax. Such\n\nordinance shall describe with specificity the projects or\n\nexpenditures for which the limited-purpose tax levy would be made.\n\nThe municipal governing body shall create a limited-purpose fund and\n\ndeposit therein any revenue generated by any tax levied pursuant to\n\nthis subsection. Money in the fund shall be accumulated from year\n\nto year. The fund shall be placed in an insured interest-bearing\n\naccount and the interest which accrues on the fund shall be retained\n\nin the fund. The fund shall be nonfiscal and shall not be\n\nconsidered in computing any levy when the municipality makes its\n\nestimate to the excise board for needed appropriations. Money in\n\nthe limited-purpose tax fund shall be expended only as accumulated\n\nand only for the purposes specifically described in the taxing\n\nordinance as approved by the voters.\n\nC. The Oklahoma Tax Commission shall give notice to all vendors\n\nof a rate change at least sixty (60) days prior to the effective\n\ndate of the rate change. Provided, for purchases from printed\n\ncatalogs wherein the purchaser computed the tax based upon local tax\n\nrates published in the catalog, the rate change shall not be\n\neffective until the first day of a calendar quarter after a minimum\n\nof one hundred twenty-days' notice to vendors. Failure to give\n\nnotice as required by this section shall delay the effective date of\nve\n\ndate of the rate change. Provided, for purchases from printed\n\ncatalogs wherein the purchaser computed the tax based upon local tax\n\nrates published in the catalog, the rate change shall not be\n\neffective until the first day of a calendar quarter after a minimum\n\nof one hundred twenty-days' notice to vendors. Failure to give\n\nnotice as required by this section shall delay the effective date of\n\nthe rate change to the first day of the next calendar quarter.\n\nD. The change in the boundary of a municipality shall be\n\neffective, for sales and use tax purposes only, on the first day of\n\na calendar quarter after a minimum of sixty (60) days' notice to\n\nvendors.\n\nE. If the proceeds of any sales tax levied by a municipality\n\npursuant to subsection B of this section are being used by the\n\nmunicipality for the purpose of retiring indebtedness incurred by\n\nthe municipality or by a public trust of which the municipality is a\n\nbeneficiary for the specific purpose for which the sales tax was\n\nimposed, the sales tax shall not be repealed until such time as the\n\nindebtedness is retired. However, in no event shall the life of the\n\ntax be extended beyond the duration approved by the voters of the\n\nmunicipality. The provisions of this subsection shall apply to all\n\nsales tax levies imposed by a municipality and being used by the\n\nmunicipality for the purposes set forth in this subsection prior to\n\nor after July 1, 1995.\n\nF. The sale of an article of clothing or footwear designed to\n\nbe worn on or about the human body shall be exempt from the sales\n\ntax imposed by any incorporated city or town, in accordance with and\n\nto the extent set forth in Section 1357.10 of this title.\n\nG. Any municipality that levies a dedicated tax pursuant to a\n\nvote of the people for the purpose of funding public safety or any\n\nother governmental purpose shall not redirect all or a portion of\n\nthe dedicated tax revenue to another purpose without a vote of the\n\npeople authorizing such action.","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":"a0034118f45bbccc5bfbf79fbebc872be8ff710f9dad596c3f2e4965adff59f1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-270","next":"us-ok/okla.-stat.-tit.-68-68-2702"},"notice":"GroundRules: Original legal text. Not legal advice."}