Motor carrier taxes - Oklahoma

Sales & use taxes

Oklahoma imposes a sales and use tax within the state. Cities and counties also levy sales taxes, which are added to the state's sales tax rate. If a business purchases taxable items but does not pay tax and uses or stores the items, it must pay use tax. Additionally, if a taxpayer purchases tangible personal property from out-of-state and does not pay tax on it, the taxpayer must pay use tax and file a use tax return.

Transportation for-hire is exempt from sales tax if the transportation services are provided by a tourism service broker, the transportation services are provided by funeral establishments for purposes of conducting a funeral, or the transportation services are sales of intrastate charter and tour bus transportation.

Sales tax is due on the gross receipts or gross proceeds of transportation for-hire to persons by common carrier, including motor transportation companies, pullman car companies, limousines, shuttle services, and other means of transportation for-hire.

Oklahoma also imposes a vehicle excise tax. For new vehicles, the excise tax rate is 3.25 percent of the purchase price. For used vehicles, it is $20 on the first $1,500 plus 3.25 percent on the remainder. The vehicle excise tax rate for new and used utility vehicles is 4.5 percent of the purchase price.