2023 Oklahoma Statutes
Title 68. Revenue and Taxation
§68-2110. Rental tax on motor vehicle rentals.
A. There is hereby levied a rental tax of six percent (6%) on the gross receipts of all motor vehicle rental agreements as provided in this section. This tax shall be levied on any rental agreement of ninety (90) days or less duration on any motor vehicle that is rented to a person by a business engaged in renting motor vehicles without a driver in Oklahoma, irrespective of the state in which the vehicle is registered. This rental tax shall not apply to the following:
1. Any lease agreements;
2. Any truck or truck-tractor registered pursuant to the provisions of Section 1120 or Section 1133 of Title 47 of the Oklahoma Statutes having a laden weight or a combined laden weight of eight thousand (8,000) pounds or more;
3. Any trailer or semitrailer registered pursuant to the provisions of Section 1133 of Title 47 of the Oklahoma Statutes. For purposes of this section, "vehicle" and "person" shall have the same meanings as defined in Section 2101 of this title; or
4. Any shared vehicle upon the purchase of which applicable taxes were paid.
B. The rental tax specified in subsection A of this section shall be apportioned in the manner as provided in Section 2102 of this title.
C. A deduction from gross receipts for bad debts shall be allowed for the rental tax specified in subsection A of this section. For purposes of this section, "bad debts" shall have the same meaning as defined in Section 1366 of this title.
D. The tax hereby levied shall be collected from the person renting the vehicle or shared vehicle driver at the time of the payment of the rental agreement and shall be due and payable to the Oklahoma Tax Commission by the business engaged in renting these vehicles or peer-to-peer car sharing program, but only with respect to shared vehicles upon the purchase of which applicable taxes were not paid, on the twentieth day of each month following the month in which payments for rental agreements subject to tax are made. The Tax Commission shall devise such forms as it deems necessary for the orderly collection of this tax and the excise tax and penalty provided for in paragraph 10 of Section 2105 of this title.
E. The provisions of this section shall not apply to state government entities.
F. As used in this section:
1. "Rental agreement" means an agreement of ninety (90) days or less duration on any motor vehicle that is rented to a person by a business engaged in renting motor vehicles without drivers in this state and includes those peer-to-peer car sharing agreements only involving shared vehicles for which the shared vehicle owner has not paid the applicable taxes upon purchase of the shared vehicle;
2. "Applicable taxes" means, with respect to shared vehicles purchased in Oklahoma, motor vehicle excise taxes levied under Section 2103 of this title and sales taxes levied under Sections 1354 and 1355 of this title. With respect to vehicles not purchased in Oklahoma, applicable taxes refers to the sales, use, excise or other tax generally due upon the purchase of a motor vehicle in the jurisdiction in which the shared vehicle was purchased;
3. "Peer-to-peer car sharing program" shall have the same definition set forth in Section 2 of the Peer-to-Peer Car Sharing Program Act;
4. "Car sharing program agreement" shall have the same definition set forth in Section 2 of the Peer-to-Peer Car Sharing Program Act;
5. "Shared vehicle" shall have the same definition set forth in Section 2 of the Peer-to-Peer Car Sharing Program Act;
6. "Shared vehicle owner" shall have the same definition set forth in Section 2 of the Peer-to-Peer Car Sharing Program Act; and
7. "Shared vehicle driver" shall have the same definition set forth in Section 2 of the Peer-to-Peer Car Sharing Program Act.
G. The Oklahoma Tax Commission is authorized to prescribe rules and regulations as necessary to implement the provisions of this section.
Added by Laws 1982, c. 180, § 2. Amended by Laws 1985, c. 179, § 92, operative July 1, 1985; Laws 1989, c. 249, § 28, eff. July 1, 1989; Laws 1991, c. 331, § 62, eff. Sept. 1, 1991; Laws 1992, c. 138, § 1, emerg. eff. April 30, 1992; Laws 2005, c. 479, § 17, eff. July 1, 2005; Laws 2008, c. 278, § 3, eff. July 1, 2009; Laws 2012, c. 316, § 5, eff. Nov. 1, 2012; Laws 2021, c. 280, § 15, eff. Nov. 1, 2021.
