Oklahoma § 68-1354.31 - Entry into Streamlined Sales and Use Tax Agreement Monetary allowance from taxes collected - Compensation for start-up

§ 68-1354.31. Entry into Streamlined Sales and Use Tax Agreement Monetary allowance from taxes collected - Compensation for start-up

costs.

A. If the Oklahoma Tax Commission enters into the Streamlined

Sales and Use Tax Agreement under Section 1354.18 of this title, the

Tax Commission is authorized to provide a monetary allowance from

the taxes collected to each of the following:

1. A certified service provider, in accordance with the

agreement and under the terms of the contract signed with the

provider;

2. Any vendor registered under the agreement that selects a

certified automated system to perform part of its sales or use tax

functions; and

3. Any vendor registered under the agreement that uses a

proprietary system to calculate taxes due and has entered into a

performance agreement with states that are members to the

Streamlined Sales and Use Tax Agreement.

B. The monetary allowance provided for in paragraph 2 or 3 of

subsection A of this section shall be given to the vendor for the

period established by, and at the rate set in, the Streamlined Sales

and Use Tax Agreement entered into under Section 1354.18 of Title 68

of the Oklahoma Statutes if the Tax Commission determines that such

terms are reasonable and provide adequate incentive for such

vendors.

C. Any vendor that is a remote seller that initially contracts

with a certified service provider for the collection and remittance

of sales and use taxes to this state on or after October 1, 2010,

and before July 1, 2011, shall be allowed compensation for the

start-up costs associated with utilizing a certified service

provider as provided in this subsection. The seller shall be

allowed to retain twenty percent (20%) of the sales and use taxes

collected by such seller, for a period of up to six (6) months,

beginning with the first month such taxes are remitted by the

certified service provider. The total amount retained by the seller

as compensation may not exceed the sum of Five Hundred Dollars

Oklahoma Statutes - Title 68. Revenue and Taxation

($500.00). A seller which retains such compensation shall be

required to continue to collect and remit applicable sales and use

taxes for a period of at least thirty-six (36) months. A seller

which does not continue to collect and remit applicable sales and

use taxes for a period of at least thirty-six (36) months shall be

required to forfeit and repay all compensation to this state that it

had retained pursuant to this subsection.

D. On or after October 1, 2010, in addition to any compensation

provided pursuant to subsection C of this section, and in lieu of

the deduction provided by subsections A, B, C and D of Section

1367.1 of this title, a remote seller that collects and remits sales

and use taxes to this state shall be eligible, at the option of the

seller, for either the compensation in the amounts, and subject to

the limitations provided in the Streamlined Sales and Use Tax

Agreement, or for the Oklahoma Tax Commission to assume the direct

cost of contracting with a certified service provider. In the event

the Streamlined Sales and Use Tax Agreement has not adopted

provisions for vendor compensation, a remote seller shall be

eligible, at the option of the seller, for the deductions provided

by Section 1367.1 of this title or for the Oklahoma Tax Commission

to assume the direct cost of contracting with a certified service

provider.

E. For purposes of this section, the term “remote seller” shall

mean a seller that would not register to collect sales and use taxes

in this state but for the ability of this state to require such

remote seller to collect sales or use tax under federal authority.

Added by Laws 2003, c. 413, § 24, eff. Nov. 1, 2003. Amended by

Laws 2010, c. 412, § 13, eff. July 1, 2010.