Oklahoma Amends Nexus Law and Requires Notice to Internet Purchasers Effective November 1, 2016

May 20th, 2016

Oklahoma recently changed its laws on when a business is subject to sales tax. The new rules may require more businesses to collect tax in Oklahoma.

Under the new law, Oklahoma will presume that an out-of-state company is subject to sales tax if anyone sells the company's products in the state. It will also presume the company is subject to tax if anyone performs services for the company or markets the company's products in the state. The company will have a chance to prove that it is not trying to establish a market in the state.

These rules apply even if the company does not share common ownership with the person performing activities in the state. So if anyone sells a company's goods online, it could make that company subject to tax in Oklahoma.

Finally, the law requires out-of-state sellers who do not collect tax to send statements notifying purchasers in Oklahoma that they need to pay use tax.

The new rules take effect November 1, 2016.

http://webserver1.lsb.state.ok.us/cf_pdf/2015-16%20ENR/hB/HB2531%20ENR.PDF