The House Appropriations and Budget Subcommittee on Revenue and Taxation approved a bill Monday concerning the collection of online sales tax in Oklahoma.
Senate Bill 1301 requires retailers with annual sales of more than $1 million to notify Oklahomans who make online purchases that they could owe state taxes. State Rep. Chad Caldwell, R-Enid, authored his chamber’s version of the bill.
"I know several retailers are already doing this across the state,” Caldwell said while answering questions from lawmakers during the committee meeting. “And this type of legislation is already enacted in other states as well. So it is a model that's being used, and that the retailers seem to be okay with."
Under current law, Oklahomans are supposed to report and pay taxes on what they buy online from out-of-state businesses. The Oklahoma Tax Commission estimates only 4 percent of taxpayers actually do.
Senate author Stephanie Bice, R-Oklahoma City, told The Oklahoman’s Rick Green the state loses as much as $150 million per year due to people who don’t claim the use tax:
"We believe that many individuals do not realize they should be remitting this tax on online purchases, specifically when they are purchasing groceries and other things from large online retailers like Amazon and others,” Bice said. Under the bill, consumers would get a letter or email from out-of-state companies with which they have done business. It would read: “You may owe Oklahoma use tax on purchases you made from us during the previous tax year. The amount of tax you may owe is based on the total sales price of (price inserted) that must be reported and paid when you file your Oklahoma income tax return unless you have already paid the tax.”
Caldwell has also authored House Bill 2531, which broadens the definition of who can require sales tax for online purchases.
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