OKLA. GOES AMAZON-LITE;
STATES’ FISCAL CRUNCH WILL LAST UNTIL 2012
Following the lead taken by Colorado, Oklahoma enacted an “Amazon-Lite” law which, instead of seeking to extend sales tax collection obligations to out-of-state retailers, it required such retailers to provide notice on its website and sales confirmation that Oklahoma purchasers still have to pay sales taxes on out-of-state purchases. The Sooner state, however, avoided many of the burdensome provisions of the Colorado law (e.g., it applies only to businesses with in-state sales in excess of $100,000) that triggered mass-termination of Colorado affiliates by Amazon and a DMA lawsuit.
The State of Oklahoma has issued interim regulations specifying the notice to be provided which includes the following: (1) the purchase is subject to Oklahoma use tax unless it is specifically exempt from taxation; (2) the purchase is not exempt merely because it is made over the Internet; (3) the State of Oklahoma requires Oklahoma purchasers to report all purchases that were not taxed and pay taxes on those purchases; and (4) it is perfectly legal to Mess with Texas despite what the bumper stickers say.
On a separate note, the Federal Reserve Bank of San Francisco has released a report concluding that the state fiscal crises that has triggered consideration of Amazon tax measures was going “to get worse before getting better” and would last into 2012.
Bennet Kelley will be presenting on this topic on September 21st at the Electronic Retailing Association convention in Las Vegas .