Sales Tax Information

Does ArtiSign charge sales tax?

Yes.  We are required by law to collect and report tax on all sales made in the State of Oklahoma.

What gets taxed?

All tangible products are subject to sales tax.

What doesn’t get taxed?

Sales tax generally doesn’t apply to services (i.e., graphic design, installation, labor, shipping, delivery charges)

Who is exempt from paying sales tax?

If your organization is a registered non-profit group with a schedule 501c3 exemption status, an educational institution, a government agency, or the product will be used in manufacturing or agriculture, then your purchase is probably exempt from sales tax. Basically, if the State of Oklahoma has issued your organization a 501c3 certificate, a manufacturer’s license, or an agricultural license, then we aren’t required to charge you sales tax.  However, you must provide us a copy of your 501c3 registration certificate / manufacturer’s license / agricultural license in order for your purchase to qualify as tax exempt.[Reference: Oklahoma Sales Tax Code | 68 O.S. §1365(C) | Rule 710:65-3-33]

What about a reseller permit?  Can I use that?  (Hint: We get this question a lot.)

Your Oklahoma reseller permit allows you to purchase tax-exempt goods for resale only – not for company or personal use.  Think about it this way:  Sales tax is intended to be paid by the end user.  If your sign is being used to advertise your establishment, then you are the end user, and sales tax must be charged.  To clarify: A resale permit does not grant you legal tax exemption unless you are actually reselling the product you are purchasing.

How sales tax is calculated in the State of Oklahoma:

Oklahoma uses a destination-based calculation system.  This means the amount of sales tax calculated is determined by the location where the product transfers ownership.  For example, when we ship an order to you, we’ll calculate tax based on your physical address.  When you pick up your order in our store, the sales tax amount will be based on our address.

What does sales tax consist of?

Sales tax is a combination of city, county and state tax rates, and these amounts vary by location.

How do I know what my tax rate is?

The Oklahoma Tax Commission website provides an accurate Sales Tax Rate Locator.  Use this tool to see what the current tax rate is for your shipping or delivery address:
http://oktax.csa.ou.edu/Rate_Locator/

What if I’m outside of city limits?

We always determine the sales tax rate by using the Rate Locator on the official Oklahoma Tax Commission website (see “How do I know what my tax rate is?” above).  If your delivery address is outside city limits, then you won’t be charged for city tax, but county and state tax still apply.  Note: When your order is picked up from our store, we are required to charge the sales tax rate for our place of business (includes city tax).  Tip:  Some of our customers choose for us to deliver our signs to their out-of-town address to avoid paying city tax.  This is perfectly fine and legal, but keep in mind, we do charge for out-of-town deliveries.

Current sales tax rates:
in Stillwater:  8.813%
outside of city limits (within Payne County): 5.313%

Important:

We are required by law to report all sales to the State of Oklahoma each month, including tax exempt sales.  “Untaxed” does not mean “unreported”.

Be smart!

The Oklahoma Tax Commission expects due diligence on our part, and we do our best to provide it.  We don’t want auditors breathing down our necks anymore than you do.  And if we get audited, the first thing the auditor looks at is our tax exemption reports… including the invoices/receipts and the tax permits associated with those sales (we have to keep your tax exemption certificate on file for 3 years).  It’s very easy to tell whether or not a business is truly a tax exempt organization, and misrepresentation will result in the State of Oklahoma charging you the sales tax owed, in addition to penalties and a $500 fine.  It’s not worth the risk, so we encourage you to be honest about your tax exemption status.

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“Oklahoma law also provides that, if the Oklahoma Tax Commission finds that a purchaser improperly presents exemption documents or uses the property for a non-exempt purpose, the purchaser shall be liable for the tax and can be assessed a $500 fine.

Note to employers:

Please don’t allow your employees to use your tax exemption status to purchase items for personal use because your organization will assume tax liability and potential fines if a state tax auditor investigates.  To prevent this type of abuse, we will only accept purchase orders, provide invoices, and accept payments from the designated accounting department associated with the organization name on a valid exemption certificate.  This is for your protection and ours.

For more information, please contact the Oklahoma Tax Commission:
https://www.ok.gov/tax/

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