Oklahoma Administrative Code
Title 710 - Oklahoma Tax Commission
Chapter 65 - Sales and Use Tax
Subchapter 1 - General Provisions
Section 710:65-1-8 - Established place of business; maintaining a place of business
Universal Citation: OK Admin Code 710:65-1-8
Current through Vol. 42, No. 1, September 16, 2024
(a) "Established place of business" defined.
(1) An "established
place of business" means a location at which:
(A) Any person regularly engages in,
conducts, or operates a business:
(i) in a
continuous manner,
(ii) for any
length of time,
(iii) that is open
to the public during hours customary for the type of business; and
(B) Merchandise for resale is
maintained, and not exempted by law from attachment, execution, or other
species of forced sale barring any satisfaction of any delinquent sales tax
liability.
(2) A location
used in conducting a hobby is not considered an "established place of
business" even though occasional taxable sales are made from the
location; i.e., a garage set up as a wood working shop. The occasional sales
are taxable and are to be reported by the seller on a sales tax report as
casual sales.
(b) "Maintaining a place of business" defined. "Maintaining a place of business in this state" means and shall be presumed to include:
(1) Utilizing or maintaining in this state,
directly or through subsidiary the operations outlined in (A) through (E) of
this paragraph whether owned or operated by the vendor or any other person,
other than a common carrier acting in its capacity as such.
(A) an office (to include a home
office),
(B) a distribution
house,
(C) a sales house (such as a
shop or store),
(D) a warehouse
(could be in a home's garage), or
(E) any other physical place of business (a
hot dog stand on wheels, a barbecue wagon parked on the roadside, or an ice
cream truck traveling a route); or
(2) Having agents operating in this state
such as salesmen, brokers, or wholesale buyers;
(A) Whether the place of business, or agent
is within this state temporarily (traveling salesman, buyers for out-of-state
firms) or permanently (shop or store in a mall); or
(B) Whether the person is authorized to do
business within this state. Example: A broker, who is self-employed, operates
his business from an office he has established in a spare bedroom of his home
in this state. He does not have an "established place of business" but he does
"maintain a place of business in this state." [See: 68 O.S.
§§
1352(10),
(13); 1401(10)]
(3) The presence of any person, other than a
common carrier acting in its capacity as such, that has substantial nexus in
this state and that:
(A) sells a similar line
of products as the vendor and does so under the same or a similar business
name,
(B) uses trademarks, service
marks or trade names in this state that are the same or substantially similar
to those used by the vendor,
(C)
delivers, installs, assembles or performs maintenance services for the
vendor,
(D) facilitates the
vendor's delivery of property to customers in the state by allowing the
vendor's customers to pick up property sold by the vendor at an office,
distribution facility, warehouse, storage place or similar place of business
maintained by the person in this state, or
(E) conducts any other activities in this
state that are significantly associated with the vendor's ability to establish
and maintain a market in this state for the vendor's sale.
(4) The presumptions in paragraphs (1) and
(2) of subsection (b) may be rebutted by demonstrating that the person's
activities in this state are not significantly associated with the vendor's
ability to establish and maintain a market in this state for the vendor's
sales.
Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 27 Ok Reg 2308, eff 7-11-10
Disclaimer: These regulations may not be the most recent version. Oklahoma may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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