Oklahoma § 68-1364.1 - Direct payment permits

§ 68-1364.1. Direct payment permits

A. Every person who qualifies pursuant to subsection B of this

section and desires to directly remit the taxes due under Section

1350 et seq. of this title or Section 1401 et seq. of this title to

the Oklahoma Tax Commission rather than remit such taxes to the

vendor may apply to the Tax Commission for a direct payment permit.

The permit shall be valid for three (3) years. Each such person

shall file with the Tax Commission an application for a direct

payment permit, setting forth such information as the Tax Commission

may require, including but not limited to:

1. An agreement that is signed by the owner of the business or

representative of the business entity and as a natural person, and,

in the case of a corporation, as a legally constituted officer

thereof, that provides that the applicant agrees to:

a.

accrue and remit all taxes imposed by Section 1350 et

seq. of this title or Section 1401 et seq. of this

title on the sale or use of all taxable personal

property or services sold to or leased or rented by

Oklahoma Statutes - Title 68. Revenue and Taxation

the applicant. Provided, no tax shall be due from the

holder of a direct payment permit on tangible personal

property intended solely for use in other states, but

which is stored in Oklahoma pending shipment to such

other states or which is temporarily retained in

Oklahoma for the purpose of fabrication, repair,

testing, alteration, maintenance, or other service,

b.

pay such taxes as required by Section 1365 of this

title. Provided, in lieu of monthly reports, persons

qualifying pursuant to paragraph 2 of subsection B of

this section owing an average per month of Five

Hundred Dollars ($500.00) or less may file quarterly

reports and remit taxes due thereunder to the Tax

Commission on or before the twentieth day of the month

following the calendar quarter. If not paid on or

before the twentieth day of such month, the tax shall

be delinquent,

c.

waive the discount permitted by Section 1367.1 of this

title on the payment of all taxes remitted directly to

the Tax Commission; and

2. A description of the accounting method by which the

applicant proposes to differentiate between taxable and exempt

transactions.

Upon verification that the applicant is eligible to receive a

direct payment permit, the Tax Commission shall issue a direct

payment permit for the place of business set forth in the

application for the permit. The Tax Commission shall be the sole

judge of the applicant's qualifications and may refuse to issue a

direct payment permit to an applicant. An applicant who has been

denied the issuance of a permit may submit an amended application or

may submit a new application after a reasonable period of time after

the denial of the original application.

B. The following persons shall qualify for a direct payment

permit as provided in subsection A of this section:

1. Every person who makes purchases of Eight Hundred Thousand

Dollars ($800,000.00) or more annually in taxable items for use in

Oklahoma enterprises; or

2. Every person who makes purchases of drugs for the treatment

of human beings, medical appliances, medical devices and other

medical equipment including but not limited to corrective

eyeglasses, contact lenses, hearing aids, prosthetic devices,

durable medical equipment, and mobility-enhancing equipment for

administration or distribution by a practitioner, as defined in

subsection B of Section 1357.6 of this title, who is authorized by

law to administer or distribute such items and the cost of such

items will be reimbursed under the Medicare or Medicaid program.

Oklahoma Statutes - Title 68. Revenue and Taxation

C. For exempt purchases made by persons that have been issued a

permit under paragraph 2 of subsection B of this section, the Tax

Commission shall accept the following information, maintained

separate from confidential patient records, as an acceptable

accounting method by which the applicant documents the purchase of

items exempt under Section 1357.6 of this title:

1. Patient case number or account number;

2. Type of insurance; and

3. Item description or product number.

D. Persons may only file a claim for refund of sales/use tax

erroneously paid on purchases of items exempted pursuant to Section

1357.6 of this title if the person presented the seller a direct pay

permit issued pursuant to paragraph 2 of subsection B of this

section at the time of purchase of the items for which the refund is

claimed.

Added by Laws 1996, c. 126, § 1, eff. Nov. 1, 1996. Amended by Laws

1997, c. 294, § 20, eff. July 1, 1997; Laws 2000, c. 314, § 17, eff.

July 1, 2000; Laws 2012, c. 230, § 1, emerg. eff. May 9, 2012; Laws

2013, c. 142, § 1, eff. July 1, 2013; Laws 2022, c. 114, § 3, eff.

July 1, 2022.