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The Streamlined Sales and Use Tax (SST) Governing Board has  issued a best practices matrix which provides answers to whether the state follows the best practices set forth in the SST Agreement regarding deal-of-the-day vouchers. All SST Member states are to complete and publish their position on the best practices.  The matrix outlines if the “best practiceas approved by the Streamlined Sales Tax Governing Board (SSTGB) for each of the products, procedures, services, or transactions identified in the chartis followed by the specific state. The following best practice descriptions are listed in the matrix along with whether the state follows the best practice:


1.       The member state administers the difference between the value of a voucher allowed by the seller and the amount the purchaser paid for the voucher as a discount that is not included in the sales price (i.e., same treatment as a seller’s in-store coupon), provided the seller is not reimbursed by a third party, in money or otherwise, for some or all of that difference.

2.       The member state provides that when the discount on a voucher will be fully reimbursed by a third party the seller is to use the face value of the voucher (i.e., same as the treatment of a manufacturer's coupon) and not the price paid by the purchaser as the measure (sales price) that is subject to tax.

3.       The member state provides that costs and expenses of the seller are not deductible from the sales price and are included in the measure (sales price) that is subject to tax. Further, reductions in the amount of consideration received by the seller from the third party that issued, marketed, or distributed the vouchers, such as advertising or marketing expenses, are costs or expenses of the seller.


Unless otherwise listed below, the SST member states have published the Best Practices Matrix and follow the three best practices listed above.


The following SST member states have issued the matrix but don’t follow some or all of the best practices listed above as of April 2014: Georgia, Kansas, Nebraska, New Jersey, and Ohio.


The following SST member states have not yet issued the matrix as of April 2014: Tennessee, Utah, Vermont, and Wyoming.  Copies of the matrix can be found on each specific state information page on the SST Web page at


Oklahoma has issued a letter ruling regarding the sales tax treatment of transactions involving an out-of-state company that leases equipment to customers in Oklahoma. The company did not have a place of business in Oklahoma, and the equipment it leased was transported to a customer in Oklahoma by a third party for the customer to use in Oklahoma. In Oklahoma, a taxable sale of tangible personal property includes leases. As such, the company was required to hold an Oklahoma sales tax permit not a vendor’s use tax permit and to collect, report, and remit state and local Oklahoma sales tax on the leases. (Letter Ruling 13-024, Oklahoma Tax Commission, August 5, 2013, released December 2013)


Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services.  Smith had proposed an earlier bill which failed to pass.  This bill is a revised version of the earlier bill. The proposed bill – called the Digital Goods and Services Tax Fairness Act of 2013 – would only allow a state to tax sales of digital goods and services to customers with a tax address within that state. Additionally, states would be barred from imposing multiple taxes on digital goods. The bill defines digital goods as sounds, images, data and facts maintained in digital form. Internet access service is not included as a digital good in the bill. (H.R. 3724)


A special exemption has been enacted to support Oklahoma taxpayers who donate property that was withdrawn from their inventory to reconstruction related to the 2013 tornados.  Oklahoma taxpayers should normally include in gross proceeds the sales value of items withdrawn from inventory for self-use.  However, with this special exemption, no tax is due on tangible personal property that has been donated to assist persons affected by a tornado occurring in calendar year 2013 for which a Presidential Major Disaster Declaration is issued. Additionally, the 1% vendor compensation for timely reporting and payment of sales tax is permitted if a delinquency in filing a sales tax report or in remitting sales tax was due to such a tornado occurring in calendar year 2013. (S.B. 330, Laws 2013, effective May 29, 2013)


Oklahoma has made changes to sales and use tax rules affecting manufacturers.  An amended rule states that a contractor or a subcontractor can purchase tangible personal property or services exempt from sales and use tax pursuant to a contract with a manufacturer for the construction and improvement of manufacturing goods, wares, merchandise, property, machinery and equipment for use in a manufacturing operation classified under North American Industry Classification System Code 324110 (Petroleum Refineries).  A rule on vendor responsibilities in sales to manufacturers is amended to state that when sales are made to purchasers claiming an exemption pursuant to a contract with a manufacturer as described above, the vendor must obtain a copy of the exemption letter or the manufacturer’s sales tax exemption card as well as documentation indicating the contract between the contractor and manufacturer.  Additionally, the vendor must obtain the purchaser’s certification on the front of the invoice or sales receipt stating the name of the exempt entity, that the purchases are being made on behalf of the entity, and that the purchases are needed for the completion of the contract.  (Rules 710:65-1-7, 710:65-7-9, 710:65-7-13, 710:65-13-152.1, 710:65-19-55, 710:65-19-56, 710:65-19-76, and 710:65-19-210, Oklahoma Tax Commission, effective May 11, 2012)



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