[NR] New Oklahoma Tax Law and Merchants

[Decker, Terry D.]

A "special event" is defined as,  "an entertainment, amusement, recreation,
or marketing event that occurs at a single location on an irregular basis
and at which tangible personal property is sold."  There are no distinctions
between public or private where sales taxes are concerned.  In any event,
SCA events are open to anyone who pays the fees and abides by the rules.
Like the black powder groups, we fall under the "recreation" in the
definition.

The specific exemptions are, "Special event shall not include any county,
district, or state fair or public or private school-sponsored event..."
That means anything from a church bazaar to the world's biggest swap-meet
are special events in this state and it makes the sponsor of the event, de
facto, a "promoter."  At least until there is a ruling by the OTC or a court
that this is not the case.

The definition of a promoter:  ""Promoter" or "organizer" means any person
who organizes or promotes a special event which results in the rental,
occupation, or use of any structure, lot, tract of land, sample or display
case, table, or any other similar items for the exhibition and sale of
tangible personal property or services taxable under Section 1350 et seq. of
Title 68 of the Oklahoma Statutes by special event vendors..."

SCA events are not exempt from being "special events" and that in turn makes
the SCA and the individuals in the sponsoring group, "promoters" for
purposes of the regulation. 

The law is intended to produce revenues from itinerant vendors, who set up
shop in the state once or twice a year, don't have a valid sales tax permit
and evade paying the sales taxes due on their sales.  Any vendor with a
valid sales tax permit is presumed to be in compliance with this section of
the code and, from other sections of the tax code, has the right to conduct
business anywhere in Oklahoma as long as they meet local regulations and
taxes.  Therefore, limiting merchanting to people with valid sales tax
permits allows the SCA to avoid the issue of "special events" and
"promoters."

>From experience on the MedFaire staff, the Oklahoma Tax Commission has been
providing temporary sales tax permits and form to the out of state vendors
in much the way outlined in this new section of the tax code.  So rather
than being a truly "new" tax law, this section represents a codification of
current practice with added fees, responsibilities and liabilities.

Bear



> Bear,
> 
> A thought came to mind as I read your post....
> 
> The law seems to be aimd mostly at Gun Shows, Trade
> Fairs, etc where many merchants come from out of state
> for a weekend, sell their wares, then pack up and
> leave without paying sales tax.  These "special
> events" are open to the public.
> 
> My thought is... SCA events aren't open to the
> public... I wonder how this difference effects us in
> regard to the new law?
> 
> Etienett
>