Oklahoma

State of Oklahoma

Oklahoma Utility Sales Tax Exemption

Oklahoma allows businesses to claim exemption on the portion of their utility used in production. ‘Production’ includes those processes and activities consisting of manufacturing, compounding, processing, assembling, or preparing of articles for sale as tangible personal property.

68 OK Stat § 68-1359 (2014)

Oklahoma Sales Tax Exemption Certificate

To view the application that must be submitted in order for a business to claim the Utility Sales Tax Exemption, look at the Oklahoma Business Registration Packet for Manufacturers – Packet M.

Energy Study Requirement

In Oklahoma, a detailed energy study should be performed to identify the exact percentage of utility that is exempt from sales tax. This includes calculating the annual consumption for each device that is consuming the utility and then distinguishing between production devices and non-production devices. If it is determined that greater than 50 percent of utility usage is used for production, then the entire meter will qualify for exemption. If it is determined that less than 50 percent of utility usage is used for production, the entire meter is taxable.

Our Process
01. Discovery

SmartSave investigates client’s current utility situation, and quickly identifies if the company is eligible to save on its utility sales tax through the exemption.

02. Energy Study

A SmartSave energy specialist performs an in-depth study at the business location to determine the exact proportion of energy use that is exempt from taxation.

03. Request

All necessary information is compiled into a report and submitted to the required utility companies and state agencies. SmartSave works hand-in-hand with these entities to ensure that all reports are accurate and compliant with statute.

04. Certification

Once the exemption request is approved, your company receives a refund on the past 2-4 years of overpaid utility sales tax, and stops paying sales tax on all certified production items, generating significant savings for the business each month moving forward.

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