Sales tax rates in Oklahoma are soaring but consumers will get a temporary break with the annual sales tax holiday on August 5-7.
Tulsa voted to raise its sales tax by $884,000,000.00 (beginning January 1, 2017) and state sales tax could go up 22 percent (one cent increase) if voters approve a proposal that will be on the November 8 ballot.
The sales tax holiday begins at 12:01 p.m. on Friday, August 5, and will end at midnight on Sunday, August 7.
Qualified items are exempt from state, city, county and local municipality sales taxes. Retailers are required to participate and cannot collect state or municipal sales tax on most footwear and clothing that costs for less than $100 that weekend.
This does not apply to any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear. Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches and other similar items are considered taxable.
Eligible items purchased during the sales tax holiday using a previously issued raincheck qualify for the exemption. If a raincheck issued during the sales tax holiday is redeemed after the sales tax holiday, the purchase is not tax exempt.
Eligible items sold to purchasers by mail, telephone, e-mail or Internet qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
The Oklahoma Legislature passed Senate Bill 861 during the 2007 Legislative Session to benefit both consumers and retailers in the state by providing sales tax exempt shopping. That bill was passed after lawmakers saw that Oklahomans, especially those in southern parts of the state, were flocking to Texas during their sales tax holiday.
Other states that have tax-free weekends on August 5-7 are Alabama, Arkansas (August 6-7), Florida, Iowa, Louisiana, Missouri, New Mexico, Ohio, South Carolina, Texas and Virginia. Georgia, Tennessee and Mississippi have tax-free holidays on the last weekend in July.