SECTION 710:65-15-1. Sales related to interstate commerce

(a)   General provisions. Oklahoma Sales Tax does not apply to a transaction which is not within the taxing power of this State under the Constitution of the United States, as interpreted from time to time by applicable court decisions.

(b)   Tangible personal property shipped from this state.

(1)   Except in the limited situation provided for by 710:65-13-152.1, if tangible personal property is sold within this State, and possession is taken by the buyer within this State, sales tax applies, even if the property is to be transported out of this State immediately upon delivery.

(2)   If tangible personal property is sold within this State and possession is taken by the buyer outside this State, the tax does not apply if the property is not to be used in Oklahoma. Possession is taken by the buyer outside this State only if either of the following is met:

(A)   The seller is obligated to personally deliver the tangible personal property outside this State; or

(B)   The seller is, by terms of the sales contract, obligated to deliver the tangible personal property to a common carrier or to the mails for transportation outside this State.

(3)   If tangible personal property is sold within this State and possession is taken by the buyer outside this State, sales tax applies if the property is to be brought back into this State for use in this State.

(c)   Tangible personal property shipped into this state. In those cases in which tangible personal property is shipped into this State pursuant to a contract of sale, the sale will be considered to be made in this State, and subject to sales tax, if either of the following is met:

(1)   The delivery of the tangible personal property is made by the seller to the buyer in this State. Delivery of tangible personal property will be considered as made in this State if either:

(A)   Physical possession of the tangible personal property is transferred by the seller to the buyer in this State; or

(B)   If delivery is made by an out-of-state vendor in the vendor's own vehicle, then the transaction is subject to sales tax. [See: 68 O.S. § 1402]

(2)   The tangible personal property is installed in this State, by the seller or seller's agent.

[Source: Amended at 11 Ok Reg 3521, eff 6-26-94; Amended at 17 Ok Reg 2677, eff 6-25-00]