Economic Nexus in Oklahoma Legislature

Last Updated on July 19, 2021

A bill containing potential economic nexus changes has been prefiled in the Oklahoma Legislature.

Under current law, by July 1, 2018, and by June 1 of each calendar year starting this year, a “remote seller”, “marketplace facilitator”, or “referrer” lacking physical Oklahoma presence who had at least $10,000 in aggregate Oklahoma sales in the preceding 12-calendar-month period, must file an election with the Oklahoma Tax Commission to:

• collect and remit sales and use tax due on tangible personal property and obtain a sales tax permit, or
• comply with notice and reporting requirements.

As initially drafted, the prefiled bill would:

• require remote sellers with at least $100,000 in Oklahoma sales in a calendar year to collect tax the next fiscal year;
• exclude from this $100,000 Oklahoma sales where a marketplace facilitator or referrer collects tax for the remote seller;
• eliminate for remote sellers the election between collection/remittance and notice/reporting;
• expand the election to include marketplace facilitators and referrers that have in-state physical presence; and
• make a marketplace seller’s lack of in-state physical presence irrelevant in calculating facilitator or referrer sales.

For more information or questions reguarding econimic nexus, click here. TaxMatrix is here to help and provide you services focused on sales, tax recovery, research, client training and compliance.