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In a letter ruling, the Oklahoma Tax Commission found that dues or fees paid for the opportunity to buy items and services at a discount membership club are not subject to sales tax. Oklahoma tax law provides that sales tax is due on club dues and fees, including those that have a value that is equivalent to the charge that would have otherwise been imposed, and including fees paid for the use of facilities or for services rendered at a health spa, club, or similar facility or business. Dues or fees paid for the opportunity to purchase items and services at a discount do not fall under the purview of the pertinent tax law. Therefore charges for discount club membership are not subject to sales tax. The Commission did find that sales tax would apply to any in-state purchases of tangible personal property or taxable services used to provide the nontaxable discount club membershipincluding items provided at no charge to members. (Letter Ruling 14-001, Oklahoma Tax Commission, June 5, 2014, released January 15, 2015)


Effective November 1, 2015, Oklahoma has enacted legislation that creates a sales tax exemption for sales by organizations or entities that are exempt from taxation under Internal Revenue Code, 26 U.S.C., Section 501(c)(3) which are related to a fundraising event sponsored by the organization or entity when the event does not exceed five consecutive days and when the sales are not in the organization's or the entity's regular course of business. The exemption is limited to tickets sold for admittance to the fundraising event and items donated to the organization or entity for sale at the event.(S.B. 336, Laws 2015, effective November 1, 2015)


On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015. Similar legislation – the Marketplace Fairness Act of 2013 – was previously introduced in February 2013 and passed by the Senate on May 6, 2013. That legislation failed to be enacted. If passed, the Marketplace Fairness Act of 2015 would authorize states meeting certain requirements to require remote sellers that do not meet a "small seller exception" to collect their state and local sales and use taxes. For more information on the previous legislation, visit Federal Government Introduces New Remote Seller Bill. (Marketplace Fairness Act of 2015, March 10, 2015)


UPDATE: This bill failed to pass during the 114th Congressional Session running from January 3, 2015 to January 3, 2017.  Therefore, this bill has died and would need to be reintroduced to be considered and voted on.


On December 16, 2014, President Barack Obama signed the Consolidated and Further Continuing Appropriations Act, 2015, for sales and use tax purposes. The Act includes a provision that extends the Internet Tax Freedom Act (ITFA) until October 1, 2015 with all provisions unchanged.


On January 9, 2015, the House of Representative introduced a bill (un-numbered) that would permanently extend the ITFA, banning states and local jurisdictions from imposing any new tax on internet access. The proposed bill removes the current effective dates of November 1, 2003 through October 1, 2015 and changes the effective date to be effective for new taxes imposed after the date of the enactment.  It is not clear if states that have been grandfathered under the existing provision could retain their current tax on internet access but it appears that may be the case.  No formal legislation has been introduced that would incorporate the Marketplace Fairness Act into this bill. The bill is sponsored by House Judiciary Committee Chairman Bob Goodlatte, among others.


For our previous news item on this topic, see Internet Tax Freedom Act is Extended Through December 11, 2014.


For an update on this news item, see Internet Tax Freedom Act Extended Until December 11, 2015.


(Consolidated and Further Continuing Appropriations Act, 2015; H.R. 235)


President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act (ITFA) through December 11, 2014 as part of the joint resolution which made continuing appropriations for fiscal year 2015. The ITFA was previously set to expire on November 1, 2014. The ITFA bars state and local governments from imposing multiple or discriminatory taxes on electronic commerce and taxes on Internet access.


For an update to this news item, see Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced.


(P.L. 113-164 (H.J. Res. 124), 113th Congress, 2nd Session, Laws 2014)



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