Oklahoma Utility Sales Tax Exemption
Oklahoma provides a sales tax exemption on electricity, natural gas, and other fuels used directly in manufacturing operations. The exemption applies when the utility or fuel is used in the actual production process.
Utility Study Requirement
To substantiate the exemption, businesses must typically provide:
- A completed Manufacturer’s Sales Tax Exemption Permit application through the Oklahoma Tax Commission (Form 13-16).
- Documentation detailing how the utility is used in qualifying manufacturing processes.
- Verification that the utility usage meets the direct and exclusive use requirement in production.
Filing Requirements
To claim the exemption, businesses must apply for and receive a Manufacturer’s Sales Tax Exemption Permit from the Oklahoma Tax Commission before presenting it to utility providers. If sales tax was previously paid on qualifying usage, businesses may file a refund claim with the Oklahoma Tax Commission, generally within 3 years of the payment date. Detailed utility bills, usage documentation, and the exemption permit must be maintained for compliance and refund claims.