Oklahoma enacted S.B. 1339 which amends the definition of “marketplace facilitator” to include a person that facilitates not only retail sales of tangible personal property but all retail sales. S.B. 1339 also provides that the marketplace facilitator’s tax collection obligation applies to any other taxes administered by the Oklahoma Tax Commission which are levied by
Oklahoma
Oklahoma Supreme Court OKs Initiative to Amend State Constitution to Impose 1% Sales and Use Tax, Raise Public School Teachers’ Salaries
By Evan Hamme and Andrew Appleby
The Oklahoma Supreme Court held that an initiative to amend the state’s constitution does not violate the state’s constitutional rule that a public vote to amend the constitution must address only one general subject (one general subject rule). Although the proposed constitutional amendment contains multiple sections making multiple proposals…
Oklahoma Tax Commission Sounds Off on Whether Background Music Is Subject to Sales Tax
By Robert P. Merten III and Open Weaver Banks
The Oklahoma Tax Commission determined in a letter ruling that certain sales of background music are subject to Oklahoma state sales tax. The Commission was asked to provide written guidance on whether state sales tax would apply to the provision of background music to customers paying…
Off With Your Head(quarters)? Oklahoma’s Headquarters Deduction Survives Constitutional Challenge
By Kathryn Pittman and Timothy Gustafson
The Oklahoma Supreme Court held Oklahoma’s deduction for capital gains arising from the sale of a company headquartered in the state for three or more years does not violate the dormant commerce clause of the U.S. Constitution. The taxpayer, a California company with its headquarters in Florida, sold…
Oklahoma Letter Rulings: Sales of Digital Products, Software Maintenance Renewals and Video Game Cards Are Not Subject to Sales Tax
By Derek Takehara and Andrew Appleby
The Oklahoma Tax Commission issued three Letter Rulings addressing the digital economy. First, the Commission ruled that receipts from sales of digital photos, videos and designs delivered via the Internet are not subject to sales tax when no tangible item is conveyed. The Commission also ruled that charges for…
Don’t Clog the Pipes: Retroactive Relief Applies to Oklahoma’s Unconstitutional Capital Gains Deduction
By Mary Alexander and Prentiss Willson
The Oklahoma Court of Appeals held that retroactive relief applied to a facially unconstitutional capital gains deduction. The court previously held that the capital gains deduction set forth in 68 O.S. §238(d) discriminated on its face against interstate commerce because the holding period for out-of-state companies was longer than…
A Pinch of SALT: Demystifying Accountant-Client Privileges in State Tax Litigation
Understanding states’ various approaches to accountant-client privileges can make the difference in protecting communications from disclosure in litigation. In this edition of A Pinch of SALT, Sutherland SALT’s Pilar Mata and Melissa Smith examine the scope and breadth of accountant-client privileges that have been adopted by some states.