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Oklahoma’s rules for the voluntary compliance initiative, beginning September 15, 2008 and ending November 14, 2008, were recently approved and are effective as of August 8, 2008. The program allows for waivers of penalty, interest, and any other collection fees associated with certain taxes due and payable before January 1, 2008. The eligible taxes are mixed beverage, gasoline and diesel, gross production and petroleum excise tax, franchise, sales and use, income, withholding, and privilege taxes. Penalties on negligence, failure, or refusal to file, fraud, filing a report or return with insufficient information or the face of a tax warrant for failure to pay a delinquent tax may also be waived. To qualify a taxpayer must either voluntarily file delinquent returns, amended returns, or pay previously assessed liabilities. All of these options also require payment in full or through a payment plan agreement that must entered into between September 15, 2008 and November 14, 2008. If a payment plan is not paid in full by June 15, 2009, penalty equal to the amount of the original delinquent penalty will be added thereto. (Rules 710:1-9-1 through -10, Oklahoma Tax Commission, effective as noted)


Oklahoma Legislature has authorized the Tax Commission to establish a voluntary compliance initiative for eligible taxes due before January 1, 2008. Eligible taxes included sales and use tax, personal and corporate income tax, franchise tax, withholding tax, privilege tax, gasoline and diesel tax, gross production and petroleum excise tax, and mixed beverage tax. If the taxpayer files the delinquent returns and pays the taxes due between September 15, 2008 and November 14, 2008, penalties, interest, and other collection fees will be waived. Conversely, the taxpayer may enter into a written agreement with the Commission that stipulates the terms and time frame for full payment of unpaid taxes. If any eligible tax is not paid by the end of the Initiative or in conformity with a written agreement, the penalty that would normally apply to the unpaid balance will be applied. (S.B. 2034, Laws 2008, effective June 3, 2008, applicable as noted)


Persons involved in extraction and manufacturing of crushed stone and sand can be issued manufacturer exemption permits which allow tax exempt purchases of tangible personal property and services to be used in all phases of manufacturing of crushed stone and sand. Also, this exemption applies to site preparation, dredging, overburden removal, explosive placement and detonation, onsite material hauling and/or crushing, product weighing and site reclamation (Rules 710:65-13-157 and 710:65-13-650, Oklahoma Tax Commission, effective June 25, 2007).


All businesses primarily engaged in the repairing, refitting, or refurbishing of consumer electronic goods are exempt of sales or use tax on purchases of tangible personal property or services. Consumer electronic goods include cell phones, MP3 players, personal computers, compact disc players, digital devices that sort and retrieve information through computers or internet connections, if the devices are sold to the business by the original manufacturer and are repaired for sale by the business directly to retail consumers or sold to another entity for sale to retail consumers. (H.B. 1544, Laws 2007, effective July 1, 2007)


Since 2003, Oklahoma has collected more than $16.5 million in additional state and local sales taxes due to the state’s participation in the Streamlined Sales and Use Tax Agreement. The Oklahoma Tax Commission believes that the revenue growth will continue. Since Oklahoma became an SST member and began using the centralized registration system, approximately 1,400 retailers have registered. 268 of these retailers were not previously registered to collect Oklahoma taxes. (Press Release, Oklahoma Tax Commission, February 16, 2007)



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