Report

Oklahoma Sales and Use Tax: Sales to Contractors

 
The Sales Tax Code and Use Tax Code (hereinafter collectively “Tax Code”)impose a tax on the end user or consumer of tangible personal property sold in Oklahoma, or purchased and brought into Oklahoma, respectively. To accomplish this, the Tax Code provides exemptions for sale for resale and manufacturing to insure that the end user or consumer of tangible personal property is taxed rather than every person in the process of putting a product into the market. Real property, on the other hand, is not taxed for sales or use tax purposes. In addition, generally, services are not subject to sales or use tax. Therefore, the question becomes: How do contractors fit within this tax scheme because the ultimate end product produced by contractors will not usually be subject to either sales or use tax?

The answer the Tax Code provides is to treat contractors as the end users or consumers of the tangible personal property which they purchase. 68 O.S. §1354(21). Therefore, the tangible personal property purchased by a contractor is subject to sales and use tax unless a specific exemption applies. Id. At the outset, it seems like a fairly simple proposition; however, difficulty arises in applying the various exemptions and structuring deals so that the most tax efficient results can be accomplished when a contractor fulfills contracts with entities which are sales tax exempt.

Faculty

Kevin B. Ratliff

Hartzog Conger Cason & Neville

Agenda

Introduction
Contractors and Service Providers
Effect of Increased Tax Rates on Existing Contracts
Certain Public Contracts
Contracts with Private and Public Schools
Contracts for the Construction of Livestock Facilities
Hazardous Waste Treatment
Contracts to Build Certain Qualified Aircraft Maintenance Facilities and Qualified Manufacturing Facilities
and more...

Faculty

Kevin B. Ratliff

Hartzog Conger Cason & Neville

  • Member of Hartzog Conger Cason & Neville
  • Practices in state and local taxation, state and federal tax audits, estate planning, complex post mortem planning and probate, business succession planning and charitable transactions
  • Frequent lecturer to various groups on topics related to areas of expertise
  • Recognized by the Journal Record as an Achiever Under Forty, 2007
  • Received the Journal Record’s Leadership in the Law Award, 2006
  • J.D. degree, with honors, Oklahoma City University School of Law; B.B.A. degree, University of Oklahoma
  • Can be contacted at 405-235-7000 or [email protected]

All of your training, right here at Lorman.

Pay once and get a full year of unlimited training in any format, any time!

  • Live Webinars
  • OnDemand Webinars
  • MP3 Downloads
  • Course Manuals
  • Audio Recordings*
  • Executive Reports
  • White Papers and Articles
  • Sponsored Live Webinars

Additional benefits include:

  • State Specific Credit Tracker
  • Members Only Newsletter
  • All-Access Pass Course Concierge

* For audio recordings you only pay shipping

Questions? Call 877-296-2169 to speak with a real person.

Sign Up Today
With This Course

Access to all training products $699/year

Unlimited Lorman Training

With the All-Access Pass there is no guessing what you will need for your yearly training budget. $699 will cover all of your training needs for an entire year!

Easy Registrations

Once you purchase your All-Access Pass you will never be any further than one-click away from attending any Lorman training course.

Invest in Yourself

You haven't gotten to where you are professionally by luck alone; it's taken a lot of hard work and training. Invest in yourself with the All-Access Pass.