Oklahoma § 68-1354.32 - Database describing boundary changes for taxing

§ 68-1354.32. Database describing boundary changes for taxing

jurisdictions.

The Oklahoma Tax Commission shall:

1. Provide and maintain a database that describes boundary

changes for all taxing jurisdictions within this state for sales and

use tax purposes. This database shall include a description of the

change and the effective date of the change for sales and use tax

purposes;

2. Provide and maintain a database of all sales and use tax

rates for all of the jurisdictions levying taxes within the state.

For the identification of the state, counties, and cities, codes

corresponding to the rates must be provided according to Federal

Information Processing Standards (FIPS) as developed by the National

Institute of Standards and Technology;

3. Provide and maintain a database that assigns each five-digit

and nine-digit zip code within the state to the proper tax rates and

jurisdictions. The lowest combined tax rate imposed in the zip code

area shall apply if the area includes more than one tax rate in any

Oklahoma Statutes - Title 68. Revenue and Taxation

level of taxing jurisdictions. The collections from an area that

includes more than one jurisdiction in a level shall be allocated

between the jurisdictions according to the pro rata population of

each jurisdiction in the area. If a nine-digit zip code designation

is not available for a street address or if a seller or certified

service provider (CSP) is unable to determine the nine-digit zip

code designation applicable to a purchaser after exercising due

diligence to determine the designation, the seller or CSP may apply

the rate for the five-digit zip code area. For the purposes of this

section, there is a rebuttable presumption that a seller has

exercised due diligence if the seller or CSP has attempted to

determine the nine-digit zip code designation by utilizing software

approved by the Tax Commission that makes this designation from the

street address and the five-digit zip code applicable to the

purchaser;

4. Have the option of providing address-based database records

for assigning taxing jurisdictions and their associated rates which

shall be in addition to the requirements of paragraph 3 of this

section. The database records must be in the same approved format

as the database records pursuant to paragraph 3 of this section and

must meet the requirements developed pursuant to the federal Mobile

Telecommunications Sourcing Act, 4 U.S.C. Sec. 119(a). If the Tax

Commission develops and adopts address-based assignment database

records pursuant to the Agreement, a seller or CSP may use those

database records in place of the five- and nine-digit zip code

database records provided for in paragraph 3 of this section. If a

seller or CSP is unable to determine the applicable rate and

jurisdiction using an address-based database record after exercising

due diligence, the seller or CSP may apply the nine-digit zip code

designation applicable to a purchase. If a nine-digit zip code

designation is not available for a street address or if a seller or

CSP is unable to determine the nine-digit zip code designation

applicable to a purchase after exercising due diligence to determine

the designation, the seller or CSP may apply the rate for the fivedigit zip code area. For the purposes of this section, there is a

rebuttable presumption that a seller or CSP has exercised due

diligence if the seller or CSP has attempted to determine the tax

rate and jurisdiction by utilizing software approved by the

governing board that makes this assignment from the address and zip

code information applicable to the purchase;

5. Have the option, upon meeting the requirements of paragraph

4 of this section, to certify vendor provided address-based

databases for assigning tax rates and jurisdictions. The databases

must be in the same approved format as the database records pursuant

to paragraph 4 of this section and must meet the requirements

developed pursuant to the federal Mobile Telecommunications Sourcing

Act, 4 U.S.C.A., Sec. 119(a). If the Tax Commission certifies a

Oklahoma Statutes - Title 68. Revenue and Taxation

vendor address-based database, a seller or CSP may use that database

in place of the database provided for in paragraph 3 or 4 of this

section;

6. Review software submitted for certification as a certified

automated system (CAS). The review shall include a review to

determine that the program adequately classifies that state’s

product-based exemptions. The Tax Commission shall certify its

acceptance of the classifications made by the system;

7. Relieve vendors and certified service providers from

liability for having charged and collected the incorrect amount of

sales or use tax resulting from the seller of the certified service

provider relying on erroneous data provided by the Tax Commission on

tax rates, boundaries, or taxing jurisdiction assignments.

Provided, the vendor or certified service provider shall not be

relieved from liability for errors resulting from the reliance on

the information provided pursuant to paragraph 3 of this section if

the Tax Commission has provided or certified an address-based system

pursuant to paragraph 4 or 5 of this section;

8. Be authorized to provide relief from liability to vendors

and certified service providers who are participating with the Tax

Commission in the use of a sales and use tax collection system that

incorporates one or more databases provided or certified by the Tax

Commission under this section if the Tax Commission has reviewed and

approved such sales and use tax collection system; and

9. Relieve CSPs and Model 2 sellers from liability for not

collecting sales or use taxes resulting from the CSP or Model 2

seller relying on the certification provided by the Tax Commission

pursuant to paragraph 6 of this section. If the Tax Commission

determines that an item or transaction is incorrectly classified as

to its taxability, it shall notify the CSP or Model 2 seller of the

incorrect classification. The CSP or Model 2 seller shall have ten

(10) days to revise the classification after receipt of notice from

the Tax Commission of the determination.

Added by Laws 2003, c. 413, § 25, eff. Nov. 1, 2003. Amended by

Laws 2004, c. 535, § 5, eff. Nov. 1, 2004; Laws 2007, c. 155, § 8,

eff. Nov. 1, 2007.