Current through Vol. 42, No. 1, September 16, 2024
(a)
General provisions. The
gross proceeds, gross receipts, or sales price reported by the taxpayer must
include the total receipts from all sources, including cash from sales, charge
sales, credits, services, and property other than cash accepted as
consideration. Sales tax reports are to be filed on an accrual accounting
basis. Sales tax should be reported and remitted for the month that the sale is
made regardless of whether payment is received, charged, deferred, or otherwise
to be made in the future, and regardless of the time or manner of
payment.
(b)
Scope of "gross
receipts", "gross proceeds",or "sales price"."Gross
receipts", "gross proceeds",or"sales
price"means the total amount of consideration, including cash,
credit, property and services, for which personal property or services are
sold, leased or rented, valued in money, whether received in money or
otherwise, without any deduction for the following:
(1)
The seller's cost of the property
sold;
(2)
The cost
of materials used, labor, or service cost;
(3)
Interest, losses, all costs of
transportation to the seller, all taxes imposed on the seller, and any other
expense of the seller;
(4)
Charges by the seller for any services necessary to complete the sale,
other than delivery and installation charges;
(5)
Delivery charges and installation
charges, unless separately-stated on the invoice, billing, or similar document
given to the purchaser; and,
(6)
Credit for any
trade-in.
(c)
Excluded items and transactions. "gross receipts", "gross
proceeds", or "sales price"shall not
include:
(1)
Discounts,
including cash, term, or coupons that are not reimbursed by a third party that
are allowed by a seller and taken by a purchaser on a sale;
(2)
Interest, financing, and carrying
charges from credit extended on the sale of personal property or services, if
the amount is separately-stated on the invoice, bill of sale, or similar
document given to the purchaser; and,
(3)
Any taxes legally imposed
directly on the consumer that are separately-stated on the invoice, bill of
sale, or similar document given to the purchaser. [68 O.S. §
1352(12)
]
(d)
"Gross
receipts","gross proceeds",
or "sales price"shall include consideration received
by the seller from third parties if:
(1)
The seller actually receives
consideration from a party other than the purchaser and the consideration is
directly related to a price reduction or discount on the
sale;
(2)
The
seller has an obligation to pass the price reduction or discount through to the
purchaser;
(3)
The
amount of the consideration attributable to the sale is fixed and determinable
by the seller at the time of the sale of the item to the purchaser;
and
(4)
One of the
following criteria is met:(A)
The purchaser presents a coupon, certificate or other documentation to
the seller to claim a price reduction or discount where the coupon, certificate
or documentation is authorized, distributed or granted by a third party with
the understanding that the third party will reimburse any seller to whom the
coupon, certificate or documentation is presented;
(B)
The purchaser identifies himself
or herself to the seller as a member of a group or organization entitled to a
price reduction or discount; provided, a "preferred customer" card that is
available to any patron does not constitute membership in such a group;
or
(C)
The price
reduction or discount is identified as a third-party price reduction or
discount on the invoice received by the purchaser or on a coupon, certificate
or other documentation presented by the purchaser.
(e)
Examples and
illustrations. Examples and illustrations of common situations and
transactions are set out in this subsection, with information as to how gross
receipts, gross proceeds, or sales price should be determined in each instance:
(1)
Trade-ins. The value of
trade-ins accepted by a taxpayer in lieu of money or other consideration may
not be deducted from the gross proceeds.
(2)
Sales value.The gross
proceeds must also include the sales value, as defined in
OAC710:65-1-2, of any
goods, wares, merchandise or property withdrawn or used from the established
place of business or from the stock in trade.
(3)
Charge accounts. Sales tax
applies to credit sales at the time the sale is made, regardless of the time or
manner in which payment is to be made. Sales tax is due upon transfer of title
or possession regardless of method or time of payment.
(4)
Conditional sales. The tax
applies to conditional sales of tangible personal property and taxable
services. The gross proceeds reported by the taxpayer must include all
conditional sales made during the month for which the report is
filed.
(5)
Coupons.
The procedure regarding the use of coupons used to purchase tangible personal
property will be as follows:
(A) If the coupon
is redeemable by a manufacturer or another third party, the original price of
the item, before the allowance offered by the coupon, is subject to
tax.
(B) If the coupon offering a
reduced price is issued by the retailer, it is a method of promotion and the
reduced price is subject to tax.
(C) The purchase of the right to receive
specific manufacturer's coupons, which coupons can then be redeemed at a
retailer when purchasing the item(s) described in the coupon, is not subject to
sales tax.
Amended at 15 Ok Reg
2827, eff 6-25-98; Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 25 Ok Reg
2070, eff 7-1-08; Amended at 27 Ok Reg 2308, eff
7-11-10
