Most people have a good innate barometer about when it’s appropriate to collect sales tax and when the state is likely to look the other way. If you run a sporting-goods store in the state of Oklahoma, for instance, you are required to collect, and regularly forward, a sales tax of 4.5 percent (in fact, it’s impossible to open a legal retail store in this state without first obtaining a sales tax permit). If you’re selling items on eBay to a fellow Oklahoma resident, though, your first impulse may be to avoid the sales tax entirely, and the same goes for an impromptu yard sale.
Technically speaking, though, the Oklahoma sales tax may even apply to these two latter situations (though the law is still evolving with respect to internet sales). The real issue, of course, is when the authorities are likely to take note of your actions and request that you forward sales tax. If you’re part of a neighborhood yard sale, say, and make a net profit of a hundred and fifty bucks, it would cost more to identify and pursue you than the tax debt is worth (about five or six dollars). However, if you run a network of regularly scheduled yard sales across the state, collecting revenues from each, you may be subject to the state sales tax, especially as your calculated debt climbs into noticeable figures of a few hundred or thousand dollars.
When it comes to Oklahoma’s sales tax laws, it’s better to play it safe than to incur the wrath of the state authorities. Call the experienced tax attorneys at Travis W. Watkins, PC today for a free consultation!