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1. What is use tax?

Every state with a sales tax has a companion tax for purchases made outside the state. In Oklahoma, that tax is called “use tax”. If you have purchased items for use in Oklahoma from retailers who do not collect Oklahoma sales tax whether by mail order, catalog, television shopping networks, radio, Internet, phone or in person, you owe Oklahoma use tax on those items. Use tax is paid by the buyer when the Oklahoma sales tax has not been collected by the seller. Individuals in Oklahoma are responsible for paying use tax on their out-of-state purchases.

2. Can you provide me example of items that are subject to use tax?

Examples of items that are subject to sales tax include books, compact discs, computer equipment, computer software, electronics, clothing, appliances, furniture and other home furnishings, sporting goods and jewelry. When an out-of-state retailer does not collect Oklahoma sales tax, the responsibility of paying the tax falls on the purchaser.

3. How do I pay use tax if the retailer doesn’t collect it at the to purchase?

You should report it on your Oklahoma income tax.

4. How do I know how much use tax to report on my Oklahoma income?

• Use tax is calculated at the same rate as sales tax, which varies by city and county.
• If you live in Stillwater, your sales tax is 9.313%.
• (Of which 4.0% is for the City of Stillwater; 0.0813% for Payne County and 4.5% for the State of Oklahoma.)

5. Where can I find instructions?

State of Oklahoma Tax Commission