Oklahoma: The Sooner State

Oklahoma stretches over 180,000 km² in the central south of the USA. The state borders Texas to the south and has five other neighboring states. According to ehuacom, the capital of the Sooner State is Oklahoma City. Almost 3.9 million people have their home in Oklahoma.

The state is known as a major energy producer. Oklahoma is the third largest natural gas producer and the fifth largest crude oil producer in the United States. The state also has the second most production facilities nationally. The oil industry contributes about a quarter of the gross domestic product. It is therefore not surprising that energy costs are 22 percent below the national average. However, it would be wrong to reduce Oklahoma to an energy location.

The Sooner State has expertly tailored policies, renowned incentives and low operating costs that positively impact local companies’ balance sheets. Oklahoma is a constitutional right-to-work state with low unemployment insurance taxes and programs that significantly reduce startup costs for hiring and training. Companies such as Lufthansa, Siemens and ThyssenKrupp have branches here.

Oklahoma Location Map

CENTRAL LOCATION

Oklahoma’s location in the heart of North America gives the local operation cost-effective access to suppliers and customers. The market proximity to 26 major cities within a radius of almost 1,300 kilometers is an enormous location advantage, as is the associated 88 million people who can be reached within a radius of 800 kilometers.

The infrastructure is excellently developed according to the central location. Three inland ports, including the Tulsa Port of Catoosa, which handles 2.2 million tons of freight annually, 140 public airports, a rail network of almost 7,000 kilometers and three intersecting Interstate Highways leave nothing to be desired. Oklahoma is therefore not only suitable as a location for the US or North American market, but for markets worldwide.

ROLE OF FDIS

Approximately 540 international companies are based and growing in Oklahoma. Almost 57,000 people have found employment thanks to the investments made by these companies. A good 22,500 of the jobs are in production. But many jobs have also been created in areas such as life sciences, energy and others thanks to foreign direct investments.

Many companies come from Great Britain, France and Canada in particular. However, 46 German companies are also based in Oklahoma. In terms of the number of companies, Germany ranks fourth. In the period from 2013 to 2018, FDI employment increased by almost 17 percent. In comparison, the entire private sector was only able to increase by 3.7 percent.

PRACTICAL TALENT DEVELOPMENT

Education and training programs create a pipeline of talent so companies can hire skilled workers and Oklahomans can find quality jobs. Work Ready Oklahoma, for example, contributes to the training.

The Central Oklahoma Workforce Innovation Board is an exciting resource for companies. COWIB has a dedicated Business Services team that supports employers with everyday and long-term challenges with core services. Topics such as filling vacancies, skills-based hiring workshops and applicant screening, as well as training grants are addressed here. Because the team is federally funded, most services are completely free to employers.

OKLAHOMA INCOME TAX

Oklahoma charges an income tax of 0.5-5% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN OKLAHOMA

Oklahoma charges a 6% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN OKLAHOMA

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Oklahoma

The sales tax in Oklahoma is 4.5% at the state level. Municipalities or counties charge an average of 4.45% sales tax. Combined, an average of 8.95% is due.

Oklahoma Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

November 1, 2019

Transactions included:

Aggregated sales of taxable tangible personal effects shipped to locations within the US state. Services are not included in the threshold.

Treatment of tax-exempt transactions:

Exempt sales and services are not included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

The threshold applies to the previous or current calendar year

Extra information:

  • Registration Requirements: Oklahoma requires that a remote business register and collect and remit sales tax by the first calendar month following the month in which it crosses the Economic Nexus Threshold. See SB 513 for more information.
  • Frequently asked questions about remote sellers
  • SB513
  • HB1019

Oklahoma Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

July 1, 2018

Economic Nexus Threshold:

For remote sellers, at least US$100,000 in aggregate sales of tangible personal property in Oklahoma in the current or prior calendar year. Prior to November 1, 2019, remote sellers should include sales made through a marketplace when calculating the threshold. Effective November 1, 2019, remote sellers should exclude sales made through a marketplace that collects on their behalf. Marketplace intermediaries include all taxable sales made through the marketplace when calculating the threshold.

Note: Marketplace agents with aggregate sales of at least $10,000 of tangible personal property in Oklahoma during the immediately preceding 12-month calendar period must file an election with the Oklahoma Tax Commission to either collect and remit sales tax or the Comply with notification and reporting obligations for exemptees.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Oklahoma Tax Commission and collect Oklahoma sales tax on sales not taxed by a Marketplace Agent once you cross the Economic Nexus Threshold.
  • Remote Marketplace Vendors: You must register once you cross the Economic Nexus Threshold. Contact the Oklahoma Tax Commission for more information.
  • In-State Multichannel Sellers: You must register with the Oklahoma Tax Commission and collect taxes on sales that are not taxed by a marketplace intermediary.
  • In-State Marketplace Vendors: You must register and collect tax on sales that are not taxed by a marketplace intermediary. Contact the Oklahoma Tax Commission for more information.