Local small businesses are celebrating an agreement beginning March 1, that online giant Amazon will start collecting sale tax on purchases made by Oklahomans.
“It doesn't make sense to give companies like amazon an 8-percent tax break,” said Green Bambino owner Morgan Harris, who visited with Oklahoma lawmakers in Washington DC help change the policy.
Right now, consumers must fill out a “use tax” form when filing taxes to pay their share of sales tax from online retailers who don’t charge sale tax. Enforcing that tax code is nearly impossible and largely based on the honor system.
The Tax commission says less than 10% of all taxpayers actually fill out their “use tax” form correctly.
Legislation passed last year was designed to make filing use tax easier. It asked the top retailers to begin sending Oklahoma customers the amount they purchased online.
This week, Gov. Mary Fallin said the agreement will help bring in tens of millions of dollars into the state.
Oklahoma is the only state in the US that doesn't allow municipalities to use property tax for operations. It all comes from sales tax revenue.