Current through Vol. 42, No. 1, September 16, 2024
(a)
General levy on purchase of a vehicle. Sales tax is levied upon
purchase of a vehicle, unless an exemption from that levy applies. Sales tax is
to be paid by the consumer in the same manner and time as the vehicle excise
tax for said vehicle is due. No sales tax is assessed when transferring
ownership of a vehicle for which no purchase was involved.
(b)
Exclusions by type. Sales
tax is not collected at the time of titling or registration of purchased
manufactured homes; boats; outboard motors; special mobilized machinery;
low-speed or medium-speed electrical vehicles; trailers registered as farm or
private trailers.
(c)
Exemptions. In general, vehicles purchased by sales tax exempt
entities are exempt from the assessment of vehicle sales tax. Following is
information on some of the more frequently encountered sales tax exemptions.
Presentation of documentation supporting the exemption may be required.
(1)
Agricultural permit holder.
All-terrain vehicle, utility vehicle, or off-road motorcycle purchased by
holder of agricultural permit. Presentation of permit required.
(2)
Church. Vehicle purchased by
a church.
(3)
City.
Vehicle purchased by a city.
(4)
Corporate transfer. Certain transfers of vehicle ownership between
corporation and shareholder.
(5)
County. Vehicle purchased by a county.
(6)
Disabled veteran (100%).
Vehicles purchased by a 100% DAV, or their surviving spouse, may have a portion
of the purchase price exempted from sales tax. Veteran/surviving spouse
choosing this option must designate that portion of their statutorily allowed
annual sales tax exemption allowance they have available and wish to apply to
the vehicle purchase price. Completion of an MV Sales Tax Exemption Certificate
is required, on which the veteran/surviving spouse declares the amount of their
available annual sales tax purchase price exemption they wish to have applied
to the vehicle purchase price.
(7)
Dealer. Vehicle purchased by a licensed dealer and being held for
resale.
(8)
Federal credit
union. Vehicle purchased by a federal credit union.
(9)
Federal land bank. Vehicle
purchased by a federal land bank.
(10)
Fire protection district.
Vehicle purchased by a fire protection district.
(11)
Housing authority. Vehicle
purchased by a housing authority.
(12)
Indian Tribal Government.
Vehicle purchased by an Indian Tribal Government.
(13)
Insurance loss. Vehicle
transfer to insurance company following payment of a loss
(14)
International Registration Plan
(IRP). Vehicles purchased to be registered under IRP.
(15)
Leasing company. Vehicle
purchased by a leasing company to be leased. Presentation of sales tax permit
number required.
(16)
Limited
liability corporation. Certain transfers of vehicle ownership involving
LLCs.
(17)
Partnership
transfer. Certain transfers of vehicle ownership between partnership and
partners.
(18)
Public
trust. Vehicle purchased by a public trust.
(19)
Red Cross. Vehicle
purchased by the Red Cross.
(20)
Rental title. Vehicle purchased by a rental company to be used as
a rental vehicle and being issued a rental certificate of title. Sales tax
permit number required.
(21)
Rural ambulance. Vehicle purchased to be utilized as a rural
ambulance.
(22)
Rural
electric cooperative. Vehicle purchased by a rural electric
cooperative.
(23)
Rural gas
district. Vehicle purchased by a rural gas district.
(24)
Rural sewer district.
Vehicle purchased by a rural sewer district.
(25)
Rural water district.
Vehicle purchased by a rural water district.
(26)
Sales tax exemption permit or
letter. Vehicle purchased by possessor of an Oklahoma sales tax
exemption permit, or an Oklahoma Tax Commission exemption letter. The permit or
letter must be presented and completion of a MV sales tax exemption certificate
is required.
(27)
Salvage
dealer. Vehicle purchased by a licensed automotive dismantler.
(28)
School district. Vehicle
purchased by a school district.
(29)
Sole proprietorship.
Transfer of vehicle ownership between a sole proprietorship and owner of the
sole proprietorship.
(30)
State. Vehicle purchased by the State.
(31)
Volunteer fire department.
Vehicle purchased to be utilized by a volunteer fire department.
(32)
Water conservancy district.
Vehicle purchased by a water conservancy district.
(33)
Commercial Trailers.
Trailers used commercially.
