By Arnab Dey
Tax laws in Oklahoma can be complicated, but with the proper understanding of them, you can make sure that your business is not paying any more than it needs to.
There are some things that you may be exempt from, and some items that you should be able to get tax breaks on. You also need to know about things like excise taxes and insurance licenses.
Exempt items
There are a variety of exempt items in Oklahoma tax laws. These include those used in the agricultural industry, those whose use is limited to manufacturing and transportation, and some nonprofit organizations. In addition, some customers are exempt from sales taxes in Oklahoma.
A variety of exemptions are granted to manufacturers, retailers, and contractors. Manufacturers are entitled to a refundable sales tax refund on construction materials purchased in certain new manufacturing facilities. However, they are not entitled to a sales tax refund on machinery and equipment.
Agricultural inputs are exempt from state and county sales taxes in Oklahoma. Manufacturers of agribusiness products and materials must obtain an agricultural exemption permit from the Oklahoma Tax Commission.
Sales tax
When it comes to sales tax laws in Oklahoma, a seller must collect the correct amount of tax for each sale. In addition to collecting, a seller also has to file a return on each purchase. Failure to do so can result in penalties.
Oklahoma is one of many states that collect a sales and use tax. The tax is applied to tangible personal property, which includes physical goods and services. Some items and services are exempt from tax.
In Oklahoma, the seller acts as a de facto collector and must collect a valid exemption certificate from each buyer. Once the seller collects the tax, it is remitted to the state. If the tax has not been remitted on time, the seller may have to pay interest charges.
Reciprocity
If you are an employee who commutes between Oklahoma and another state, you may have heard of reciprocity. Reciprocity is a state tax law that allows workers to avoid double taxes when they work in a neighboring state.
With a reciprocity agreement, your employer withholds state and local taxes on your income for the state you are currently residing in. You will not have to file a tax return for the work state, and your home state will credit you for any taxes it withheld.
This is a huge benefit for commuters and can help you avoid the tax burden that comes with commuting. However, you will need to make sure your employer is withholding the correct amount.
Excise tax
Oklahoma’s excise tax laws are imposed on various goods and services. Taxes are collected by the government to fund public services and to support the State’s budget. The most significant forms of taxation are income taxes and sales tax.
Taxes are assessed on individuals, corporations, and retailers. These taxes are a major source of revenue for the State. In addition, taxes are also levied on consumers and tobacco products.
There are four main types of taxes in Oklahoma. Individual income taxes, corporate income tax, sales tax, and insurance premium taxes. Each of these taxes is aimed at supporting a specific state agency.
Payroll taxes
Depending on the nature of your business, it is important to know about payroll taxes in Oklahoma. There are a number of steps involved, from calculating your payroll to filing your taxes. These tax requirements are based on your gross wages and any bonuses your employees may receive.
For the most part, these taxes are progressive. The rates range from 0.25% to 4.75%. It is also worth knowing that the tax is paid on a quarterly basis.
In order to calculate the amount of tax you must pay, you can use the Oklahoma tax tables or other calculators. Several software services also offer free tax calculators.
Insurance licenses
There are many state-specific requirements when it comes to insurance licenses. These can vary depending on the type of license. For instance, an insurance agent’s requirements might be different from those of a life insurance producer.
Getting an insurance agent license can be a hassle, and applicants may encounter legal snags along the way. Fortunately, there are several resources to help insurance agents navigate their way through the maze.
The best place to start is by looking at your state’s insurance licensing requirements. Most states require an exam or pre-licensing training. Insurance licenses are renewed every two years.
Depending on your type of insurance, you might need to take a specialized course. Oklahoma has special requirements for insurance salespersons selling long-term care insurance. This training requires substantial knowledge of the product as well as the state’s insurance laws.
Read Also:
What's your reaction?
