Your Oklahoma Nexus May Not Be OK
Oklahoma nexus is frontier law.
Monday, 12-12-16, the U.S. Supreme Court declined to revisit the rules governing sales taxes on purchases across state lines. States could now “be unrestrained in passing new ‘tattletale reporting’ laws that force online and catalog retailers to report personal information and purchase data to state tax collectors.”
Sales tax and Oklahoma nexus.
Sales tax and nexus start discussions that range from blurry to fury among business owners living on the border. The difference between toeing the line, pushing the envelope and breaking the law can become an issue of community involvement, the logo on the delivery vehicle and a great company employee always promoting the business. The website widget inviting a visitor to request more information and an advertising company promoting affiliated website ‘co-ops’ are part of aggressive Internet marketing that most businesses go after…and blur the line of nexus even further.
How does your Oklahoma nexus look to the OK Tax Commission?
A retailer is considered to have Oklahoma nexus if that business:
- holds a substantial ownership interest in, or is owned in whole or in substantial part by, a retailer maintaining a place of business within Oklahoma, and
- sells the same or very similar line of products of the related Oklahoma retailer, the name is similar, or if the Oklahoma related business facilities or employees are used to advertise, promote or facilitate sales to consumers, or
- the retailer holds a substantial ownership interest in, or is owed in whole or in substantial part by, a business that maintains a distribution house, sales house, warehouse or similar place of business in Oklahoma that delivers property sold by the retailer to consumers.
What about other states?
Not only is it a “wild, wild, west,” but don’t forget to look north, south and east. 2017 may well be the dawning of a new tax era, and every business needs to know their nexus territory and take a stand, especially if their brand strays across state lines.
Other activities that can give your small business Oklahoma nexus could include:
- Leasing or rental of tangible personal property, whether or not as a capital lease
- the presence of a traveling salesperson, regardless of the number of visits
- the logo and ownership of the vehicle used to transport the product into Oklahoma
- certain affiliate associations that have a more far-reaching nexus
If you’re not sure, let’s talk. 479-478-6831