Current through Vol. 42, No. 1, September 16, 2024
(a)
General provisions. Eligible individual taxpayers may claim an
income tax credit for "Sales Tax Relief" pursuant to 68 O.S. §
5011. The
credit is forty dollars ($40.00) multiplied by the number of allowable personal
exemptions the taxpayer is entitled to claim under the Oklahoma Income Tax
Act.
(b)
Eligible
taxpayers. For purposes of this Section, "Eligible
Taxpayer" means an individual who is a resident of, and domiciled in
Oklahoma, for the entire calendar year.
(c)
Gross Household Income. For
purposes of this Section "Gross Household Income" is the gross
income of every type received by all persons occupying the same household. It
includes, but is not limited to, pensions, annuities, federal social security
benefits, unemployment payments, veterans disability compensation, loss-of-time
insurance payments, capital gains, and any other type of income. It is not
relevant whether or not the income is taxable for state or federal income tax
purposes. "Gross Household Income" does not include gifts, or
income that is considered deferred.
(d)
Eligibility for tax year
2004. To be eligible to claim this credit, the following Gross Household
Income limits apply for tax year 2004:
(1)
For those taxpayers that can claim no allowable personal exemption other than
themselves or their spouse, Gross Household Income cannot exceed Fifteen
Thousand Dollars ($15,000.00).
(2)
For those taxpayers who can claim a personal exemption other than themselves or
their spouse; who are at least 65 years of age; or, who have a physical
disability that is a substantial handicap to employment, Gross Household Income
cannot exceed Thirty Thousand Dollars ($30,000.00).
(e)
Eligibility for tax year 2005 and
following years. To be eligible to claim this credit, the following
Gross Household Income limits apply for tax year 2005 and following years:
(1) For those taxpayers that can claim no
allowable personal exemption other than themselves or their spouse, Gross
Household Income cannot exceed Twenty Thousand Dollars ($20,000.00).
(2) For those taxpayers who can claim a
personal exemption other than themselves or their spouse; who are at least 65
years of age; or, who have a physical disability that is a substantial handicap
to employment, Gross Household Income cannot exceed Fifty Thousand Dollars
($50,000.00).
(f)
Filing Requirements. Procedures for claiming the "Sales Tax
Relief" credit are:
(1) For tax years
beginning before January 1, 2007:
(A) If the
claim for sales tax relief is taken as a direct credit against the income taxes
owed by the taxpayer, the claim must be filed by April 15 as part of the
regular income tax return, using Oklahoma Tax Commission Form 538S (OTC Form
538S). Extensions of time to file an Oklahoma income tax return will
not extend the time to file for the Sales Tax Relief
Credit.
(B) If the claim for sales
tax relief is not taken as a direct credit against income taxes owed by the
taxpayer, the claim must be filed by June 30 for the preceding calendar year,
using Form 538S as a stand-alone refund claim.
(2) For tax years beginning on or after
January 1, 2007:
(A) If the taxpayer has an
income tax filing requirement, the claim must be filed by April 15 as part of
the regular income tax return in the year following the close of the taxable
year, unless the taxpayer has been granted a valid extension of time to file
said income tax return (including the April 20th due
date for electronically filed returns). In the case where a valid extension of
time to file has been granted, the claim for sales tax relief may be filed with
the income tax return pursuant to the extension granted. In all cases taxpayers
must attach Oklahoma Tax Commission Form 538S (OTC Form 538S) to their regular
income tax return in order to claim the sales tax relief credit.
(B) If the taxpayer does not have an income
tax filing requirement the claim must be filed by June 30 for the preceding
calendar year, using Form 538S.
(g)
Exceptions and exclusions.
The exceptions and exclusions set out in this subsection apply to the "Sales
Tax Relief" credit.
(1) Persons who have
received temporary assistance for needy families (TANF) for any month during
the tax year are not eligible for the sales tax refund under this Section, but
shall receive sales tax relief as a part of their monthly TANF benefit.
[See: 68 O.S. §
5013(B)
]
(2) The Oklahoma Department of
Human Services will issue the sales tax refund to persons who have continuously
received aid to the aged, blind, disabled or Medicaid payments for nursing home
care for the tax year. [See: 68 O.S. §
5013(C),(D)
]
(3) A person convicted of a
felony shall not be permitted to file a claim for sales tax relief for any year
for which that person is an inmate in the custody of the Department of
Corrections for any part of that year. [See: 68 O.S. §
5011(E)
]
(4) Alien individuals living in
Oklahoma under a temporary or restricted status do not qualify for the sales
tax relief credit. [See:8 U.S. § 1101(a)(15)(B) and
§1101(a)(15)(F)(i) ]
(5) If a
taxpayer or spouse died during the tax year, the sales tax credit cannot be
claimed for the deceased. However, if the death occurred after the close of the
tax year, but before the claim for sales relief was filed, the sales tax credit
or refund for the deceased will be issued to the deceased's estate.
[See: 68 O.S. §
5011
]
Added at 22 Ok Reg
354, eff 1-1-05 (emergency); Added at 22 Ok Reg 1532, eff 6-11-05; Amended at
25 Ok Reg 728, eff 12-27-07 (emergency); Amended at 25 Ok Reg 2056, eff
7-1-08
