What is Oklahoma Use Tax? Turbo Tax said I needed to check box 21 No Use Tax. I don't know what Use Tax is?

[mikederrick]

What is Oklahoma Use Tax? Turbo Tax said I needed to check box 21 No Use Tax. I don't know what Use Tax is?

[ToddL · Accepted solution]

 The Oklahoma Use Tax is a little-known tax that complements the regular Oklahoma sales tax to ensure that purchases made outside of Oklahoma are not exempt from the Oklahoma sales tax.

The Oklahoma use tax is a special excise tax assessed on property purchased for use in Oklahoma in a jurisdiction where a lower (or no) sales tax was collected on the purchase.

The Oklahoma use tax should be paid for items bought tax-free over the internet, bought while traveling, or transported into Oklahoma from a state with a lower sales tax rate.

The Oklahoma use tax rate is 4.5%, the same as the regular Oklahoma sales tax. Including local taxes, the Oklahoma use tax can be as high as 6.500%.

 If you didn't make any out-of-state purchases  where a lower (or no) sales tax was collected on the purchase, you won't owe an OK Use Tax.