Amazon to begin collecting Oklahoma sales tax

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OKLAHOMA CITY – If you plan to buy something on Amazon, you may notice an extra tax.

Amazon will begin collecting Oklahoma sales tax on March 1, 2017. State officials predict that the money will begin coming into the state in May.

Gov. Fallin says the revenue will not affect this year’s current $870 million budget hole because the Tax Commission already projected some increased collections as a result of their negotiations with Amazon.

But the governor says she expects cities and towns will see an increase this fiscal year in the amount they receive from Amazon.

“This agreement levels the playing field for businesses in our state,” Fallin said in a statement. “Several state and retail groups have argued that stores in the state that must charge sales tax are at a disadvantage in competing against Amazon because it didn’t charge state sales tax.”

Fallin says it’s unclear exactly how much the state will collect; however, officials expect it to bring in “tens of millions of dollars annually.”

“We know that cities and states are losing out on sales tax revenue each year as more business is conducted online.  We still need to call on Congress to implement a fair system for online sales tax. We have to help our local communities keep local businesses healthy and fund core services,” Fallin said in a statement.

State Rep. Chad Caldwell authored the Oklahoma Retail Protection Act, which was passed by the legislature last year.

It requires online retailers that don’t have a physical presence in Oklahoma to either begin voluntarily collecting sales tax or send customers a notice at the end of the year to pay the tax.

Amazon chose to collect the tax up front.

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