Businesses

Retail cigarette licenses for over-the-counter sales expire three years from the date the sales begin. The license fee is $30 per three-year period.

Retail tobacco licenses for over-the-counter sales expire three years from the date the sales begin. The license fee is $30 per three-year period.

All holders of a Mixed Beverage License issued by the ABLE Commission must obtain a Mixed Beverage Tax Permit and a Sales Tax Permit from the Oklahoma Tax Commission (OTC). Sellers must collect and remit to the OTC mixed beverage tax as well as sales tax on all sales.

All sales of liquor, wine, and beer are subject to the 13.5% mixed beverage tax in addition to admission charges that include a complimentary mixed beverage. While customers that present a valid sales tax exemption permit are exempt of sales tax on their purchase of alcoholic beverages, they are still subject to the mixed beverage tax on the purchase of alcoholic beverages.  All complimentary drinks are subject to mixed beverage tax.

Oklahoma levies a franchise tax on corporations that do business in Oklahoma. Corporations are taxed $1.25 for each $1,000 of capital invested or used in Oklahoma. Foreign corporations are additionally assessed at $100 per year, payable to the OTC, the Oklahoma Secretary of State acting as their registered agent.

Due Dates

Oklahoma franchise tax is due and payable May 1 for max filers and July 1 for non-max filers of each year unless a Form 200-F Franchise Election Form has been filed. The report and tax will be delinquent if not paid on or before June 1 for max filers and September 15 for non-max filers. A 10% penalty and 1.25% interest per month is due on payments made after the due date.  Corporations (max filers) who remit the maximum amount of $20,000.00 in the preceding tax year, tax will be due and payable on May 1 of each year and delinquent if not paid on or before June 1; these corporations are not eligible to file Form 200-F. See if you qualify for a sales tax exemption permit with our Sales Tax Exemption Packet. For current Oklahoma tax forms, visit the Forms page.

Franchise Tax – HB 1039X FAQ

Oklahoma Franchise tax is ending. When does this go into effect?

Tax year 2023 is the last year that franchise tax returns will be required to be filed. Starting with tax year 2024 and beyond, there will be no Oklahoma franchise tax filing requirement.

When are tax year 2023 returns due?

If you file a Form FRX 200:

• Taxpayers who remit the maximum amount of tax (those that owe $20,000 in the preceding tax year) are required to remit annually by May 1; the final franchise tax return must be remitted on or before June 1, 2024 to avoid being delinquent.
• All other taxpayers are required to remit by July 1, unless the taxpayer has elected to pay the tax as part of the corporate income tax return; the final franchise tax return must be remitted on or before September 15, 2024 to avoid being delinquent.

If you have elected to file as part of your corporate income tax return:

• Franchise tax must be remitted with the filing of the tax year 2023 corporate income tax return. A corporation that elects to use its income tax return due date for payment and filing of the corporation’s franchise tax return shall use the corporation’s 2023 income tax year balance sheet in preparing the return.

Failure to remit the required franchise tax will result in potential suspension of the corporation.

The Tax Commission collects a Registered Agent's Fee on behalf of the Secretary of State. How will this be affected?

The Tax Commission is currently in discussion with the Secretary of State to determine how this will be handled moving forward. Additional information will be made available once this has been determined.

Will we still be required to file an Officer’s List (previously filed with franchise return)?

This is currently being discussed. More information will be available at a future date.

My corporation is suspended for non-compliance in a prior year. How will this be handled now?

For tax years 2023 and prior, compliance is still mandatory. An entity that was suspended for non-compliance will remain suspended until the issue is resolved. Upon fully satisfying the problem, the entity will be re-instated.

Will I continue to be required to complete Form 200-F if I elect to file the annual franchise tax using the same period and due date as my corporate income tax filing year?

Any taxpayer wishing to make an election to file the annual franchise tax using the same period and due date as the corporate income tax filing year must have filed the election using a Form 200-F on or before July 1, 2023. No additional elections will be accepted going forward.

Learn about the agricultural exemption process.

Apply for the agricultural exemption permit at OkTAP.

Tax Rates

Under the Motor Fuel Tax Code, the incidence of motor fuel is specifically levied on the consumer of the fuel; however, the tax is pre-collected when it is removed from the terminal. Gasoline and diesel fuel are taxed at $0.19 per gallon, special fuels are taxed at $0.16 per gallon, and aviation gasoline and jet fuel are taxed at $0.0008 per gallon. 

There is an assessment fee of $0.01 per gallon upon the sale of each gallon of motor fuel, diesel fuel, and blending materials used or consumed in this state for the Petroleum Underground Storage Tank Release Environmental Cleanup Indemnity Fund.

Effective January 1, 2012, the motor fuel tax on Compressed Natural Gasoline (CNG) is collected upon the first sale by a wholesaler to a retailer/end-user. 

Effective January 1, 2014, the motor fuel tax on Liquified Natural Gas (LNG) is collected upon the first sale by a wholesaler to a retail/end-user.

CNG and LNG are taxed at $0.05 per gallon. The $0.05 per gallon is figured as follows:

CNG is per gasoline gallon equivalent (gge)-1 gge=126.67 cubic feet

LNG is per diesel gallon equivalent (dge)-1 dge=6.06 lbs

CNG and LNG is mostly being reported and paid by the retailers and consumers to the Oklahoma Tax Commission.

Due Dates of Motor Fuel Reports and Remittances

Supplier/permissive supplier and bonded importer reports are due on or before the 20th day of the following month, effective November 1, 2019. In addition, the petroleum underground storage report will be due at the same time as the supplier/permissive supplier and bonded importer reports.

The alternative fuels wholesale/retailer/consumer, occasional importer, tankwagon operator, exporter and terminal operator reports along with the petroleum underground storage reports are due on or before the 27th day of the following month.

The fuel blender report is due within thirty (30) days of the blending event.

The three day voucher for untaxed motor fuel is due three days from the date the import verification number is assigned or three days from the date the motor fuel entered Oklahoma.

The special fuel report is due on or before the 20^th day of the following month.

Annual Decals

All special fuel decals are valid from January 1 through December 31.  

• The annual $50 fee is for liquefied petroleum gas or natural gas users in passenger cars, vans and pickups under one ton. 
• For vehicles under one ton using alternative fuels, such as methanol or "M-85", the fee is $100 per year. 
• For vehicles exceeding one ton, using liquefied petroleum gas, methanol or "M-85" the fee is $150 per year.

Search for Motor Fuel Licenses

Filing Requirements

Every partnership, corporation, resident estate and trust, and nonresident estate and trust with Oklahoma source income is required to file an Oklahoma income tax return.

An affiliated group of corporations can elect to file a consolidated Oklahoma return. The group's consolidated income, loss or deduction shall be determined on a component member basis. If this election is made, such election shall be binding for all future tax years unless the OTC releases the group from such election.

A corporation having an election in effect under Subchapter S of the Internal Revenue Code (IRC) shall not be subject to Oklahoma income tax on corporations for income that is allocated to a resident shareholder. The resident shareholder(s) of a Subchapter S corporation shall report their distributive share of income on their Oklahoma income tax return. However, a Subchapter S corporation shall be taxed on the distributive share of income of any nonresident shareholder for whom a Form 512-SA Non-Resident Shareholder Agreement was not included with the originally filed corporate income tax return. For current Oklahoma tax forms, visit the Forms page.

Tax Rates

Corporations are taxed at a 4% tax rate.

Fiduciaries have the same tax rates as a single individual.

Due Dates

Fiduciary returns are due on the 15th day of the fourth month following the close of the taxable year.

Beginning with the tax year 2016, corporate and partnership returns are due no later than 30 days after the due date established under the IRC. In the case of a complete liquidation or dissolution of a corporation, the return is due on the 15th day of the fourth month following the month in which the corporation is completely liquidated.