Oklahoma's Tax-Free Weekend: August 2-4, 2024

Oklahoma's annual sales tax holiday will begin on Friday, August 2, and end at midnight on Sunday, August 4. Certain clothing and shoe purchases are exempt from sales tax for this time period only. Qualified items are exempt from state, city, county, and local municipality sales taxes. Retailers are required to participate and may not collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday. This means you can save money by not paying sales tax on certain items during this special weekend.

Online Orders

Eligible items sold to purchasers by mail, telephone, email, or internet shall qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. So, if you buy something online during this time, you won't have to pay sales tax, even if it arrives later.

Rainchecks

If a retailer runs out of an item during the sales tax holiday and offers a raincheck, the transaction will still be sales tax exempt. Even if you can't get the item right away and have to use a raincheck, you won't have to pay the sales tax.

Exchanges

If a customer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, tax is not to be charged even if the exchange is made after the sales tax holiday. If a customer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, sales tax applies to the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday. If a customer buys an eligible item before the holiday period but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item. Exchanging for a different size or color keeps it tax-free, but swapping for a different item means you'll pay the tax.

Coupons and Discounts

If a retailer offers a discount to reduce the price of an eligible item to less than $100, the item will qualify for the sales tax exemption. This applies to all discounts even if a retailer's coupon or loyalty card is required to secure the discount. If a retailer accepts a coupon that entitles the retailer to third-party reimbursement, such as a manufacturer's coupon, the discount provided by the coupon does not reduce the item's sales price for purposes of determining whether the item is eligible for the exemption. Store discounts and coupons can help make items tax-free, but manufacturer's coupons won't affect the tax status.

Reporting Exempt Sales

Sales of eligible items exempted by the sales tax holiday should be reported on line 3g, “Other Legal Sales Tax Exemptions,” of the Oklahoma Sales Tax report. Stores need to report these tax-free sales to the state correctly.

Reporting Due Dates

Business tax returns are due to the Oklahoma Tax Commission (OTC) no later than the 20th of the month following the month for which the return and remittances are made. If the due date falls on a weekend or holiday, the report is due on the next business day. Businesses must submit their tax reports on time, usually by the 20th of the next month.

Examples of Allowed Items

"Clothing" means all human wearing apparel suitable for general use. A non-exclusive list of exempt items includes:

• Aprons, household and shop
• Athletic supporters
• Baby receiving blankets
• Bathing suits and caps
• Beach capes and coats
• Belts and suspenders
• Boots
• Coats and jackets
• Costumes
• Diapers, children and adult, including disposable diapers
• Earmuffs
• Footlets
• Formal wear
• Garters and garter belts
• Girdles
• Gloves and mittens for general use
• Hats and caps
• Hosiery
• Insoles for shoes
• Lab coats
• Neckties
• Overshoes
• Pantyhose
• Rainwear
• Rubber pants
• Sandals
• Scarves
• Shoes and shoelaces
• Slippers
• Sneakers
• Socks and stockings
• Steel-toed shoes
• Underwear
• Uniforms, athletic and non-athletic
• Wedding apparel

This list includes many everyday clothing items that you won't have to pay sales tax on during the holiday.

Overlapping Boundaries

The use of ZIP+4 area codes in the tax rate data system defines the smallest area to prevent overlapping boundaries. In case of overlap, the lowest rate in the area applies. Collections from an area including more than one jurisdiction are allocated based on population. If areas overlap, the lower tax rate applies, and the collected taxes are shared based on population.

For more information on ZIP+4 codes, contact the Address Management Systems Office of the U.S. Postal Service.

To ensure you are fully prepared for the upcoming Oklahoma tax holiday, please visit the Oklahoma Tax Commission's website for detailed information and updates.