Equipment Rental Taxability in Oklahoma and Other Tax-Related Questions

In Oklahoma, equipment rentals are typically subject to taxes. This covers renting out sporting goods, recreational vehicles, and other equipment. The tax rate varies from county to county and is determined by the area in which the equipment is hired. Oklahoma’s state sales tax is 4.5% as of 2021. However, additional sales taxes, which can vary from 0.5% to 5.5% in various towns and counties, are possible. The overall sales tax rate for renting equipment can so range from 5% to 10%.

In Oklahoma, alcohol is not exempt from taxes. Oklahoma really levies one of the highest alcohol taxes in the nation. Beer is taxed at $0.79 per gallon, while wine is taxed at $2.50 per gallon. Spirits are subject to a $13.50 per gallon levy. At the moment of sale, these taxes are applied to the cost of the alcoholic beverage.

In Oklahoma, food is normally taxable, but there are certain exceptions. Food sold in vending machines and grocery shops that isn’t prepared is one example of an item that is exempt from sales tax. However, prepared food, including that sold in restaurants and at food trucks, is typically subject to taxes.

In Oklahoma, photography services are typically taxed as well. This covers commercial photography, wedding photography, and portraiture. There are a few exceptions, though. For instance, the complete package might be excluded from sales tax if the photography services are offered as a component of a deal that also includes the sale of tangible personal property, like a photo book or prints.

There is no gross receipts tax in Oklahoma. It does, however, impose a gross production tax on the extraction of natural gas and oil. The gross production tax rate can range from 2% to 7% and is dependent on the price of gas and oil. The state’s main source of income comes from the gross production tax.

In Oklahoma, renting out equipment is typically taxed, with the tax rate varied depending on the rental location. Unprepared food sold in grocery stores is often exempt, although alcohol and cooked food are typically taxable. There are some exceptions to the usual rule that photography services are taxable. Last but not least, Oklahoma levies a gross production tax on oil and natural gas even though it does not have a gross receipts tax.