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Press Release
February 16, 2007

Oklahoma Collects $16.5 Million in New Revenue from Streamlined Sales Tax Project

The Oklahoma Tax Commission has collected more than $16.5 million dollars in additional state, city, and county sales taxes since 2003 because of Oklahoma’s participation in the streamlined sales tax program. The program was boosted when the Streamlined Sales Tax Agreement and its centralized registration system went into full effect on October 1, 2005.

Prior to that date, additional collections came from about 20 retailers that voluntarily elected to begin collecting sales taxes on their internet sales. Since the centralized registration system, which is voluntary, went online approximately 1,400 retailers have enrolled. Of these retailers 268 were not previously registered to collect Oklahoma taxes. The revenues reported today are from the original 20 retailers and from the new registrants. From the total taxes collected $9.2 million went to the state, $6.2 million has been collected for cities, and $1.1 million has gone to counties. These collections are all from retailers that have agreed to begin collecting on sales tax under this new, simplified system.

“We feel that by participating in the streamlined sales tax program this gives a fair playing field for all retailers doing business in Oklahoma, from the traditional brick-and-mortar storefront to those that have an online presence,” said Paula Ross, Oklahoma Tax Commission spokesperson.

Oklahoma is one of nineteen states that lead the way in a collaborative national effort to “streamline” the way sales tax is collected and remitted across the country.

Oklahoma is a part of what’s considered a centralized registration system. A retailer who operates in many states can go to one centralized website and automatically register in all the states that are members of the agreement at one time. They will no longer need to go to each individual state to register.

The benefits for retailers registered under the streamlined system are many. These include uniform definitions throughout the states, uniform audit procedures and rules that are simplified for sourcing transactions across state and local boundaries.

“We anticipate the revenue generated from the streamlined sales tax will continue to increase over time, with city and county governments benefiting,” Ross said. To date many cities have seen more new sales tax revenue since the beginning of the program. Ada has seen a total increase of $55,000; Ardmore an increase of $72,000; Edmond an increase of $266,000; Lawton an increase of $152,000; Midwest City an increase of $77,000; Muskogee an increase of $111,000; Norman an increase of $241,000; Oklahoma City an increase of $1.6 million and Tulsa an increase of $1 million.

Retailers that are interested in learning more and registering for the Streamlined Sales Tax Project should visit https://www.sstregister.org/sellers.

 

 

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