Don't forget your use tax. My what? Your use tax...

[Townsend]

When Filling Out Taxes, Tulsa Wants Its Share



http://kwgs.com/post/when-filling-out-taxes-tulsa-wants-its-share

As Tulsans begin filing their 2013 income tax returns, they should know that if they bought items online from a retailer without a presence in Oklahoma, they are required to pay use tax to the State of Oklahoma. The City of Tulsa receives use tax as a proportion of what is paid to the state.

Sales tax and use tax collections provide two-thirds of the City of Tulsa's revenue. Vital services such as police and fire protection, 911 emergency dispatch, snow and ice removal from streets, pothole repair and mowing of grass in medians and parks are supported by sales and use taxes.

Use tax is the same amount as sales tax – in Tulsa it's 8.517 percent – but it is paid on out-of-state purchases that were not taxed at the point of sale. State tax forms explain how to calculate the tax or estimate it if taxpayers don't remember what they bought online. It's entered on line 20 of the tax forms.

The City of Tulsa Finance Department estimates that the City would have $10 million more per year if Tulsa residents paid the use taxes they owe. Currently 97 percent of Oklahoma taxpayers ignore the use tax, which relies on the honor system because federal law does not require online retailers to collect the tax for states, cities and counties.