Do you pay sales tax if buying a car from dealer in Oklahoma and living in Oklahoma?

Answer 1

Sales tax on vehicles is called excise tax, governed by the Oklahoma Tax Commission

http://www.tax.ok.gov/mv3.html.

Standard vehicle excise tax is assessed as follows:

• New Vehicle: 3.25% of the purchase price (or taxable value, if different)
• Used Vehicle: $20.00 on the 1st $1500.00 of value + 3.25% of the remainder

Excise tax is assessed upon each transfer of vehicle, boat or outboard motor ownership, unless specifically exempted by law.

• Excise tax is collected at the time of issuance of the new Oklahoma title.
• Oklahoma residents are subject to Oklahoma excise tax on vehicles purchased in another state.
• Nonresidents who purchase vehicles in Oklahoma are not assessed Oklahoma excise tax, provided they title and register the vehicle in their state of residence.

Most vehicles are assessed excise tax on the basis of their purchase price, provided that purchase price is within 20% of the average retail value for that specific model vehicle. If the purchase price provided is not within that 20% range, a taxable value within that range is established for excise tax assessment purposes.

• The purchase price may include a deduction for any dealer rebates or discounts.
• The purchase price may not include a deduction for any traded in vehicle.
• For new vehicles, a copy of the contract, purchase agreement or bill of sale from the dealer is required.
• For used vehicles, either purchase price listed in assignment portion of conforming title certificate, a copy of a bill of sale or contract, or a notarized Declaration of Vehicle Purchase Price (Form 722-1 available for downloading from the Forms section of this site) is required.

Please note, in establishing an average retail value for the purpose of assessing vehicle excise tax, Oklahoma law makes no provision for adjusting the value of a vehicle due to that specific vehicle's condition - be that condition above or below average. An average value for all such model vehicles is utilized.