During a recent visit from an agent of the Oklahoma Tax Commission (OTC), I wondered if the sales tax procedures for a “business” (think my gallery) were different from those applicable to an individual artist. Since she was there, I asked the agent.
If you are selling art in Oklahoma and a gallery isn’t handling sales tax for you, you must collect sales tax and pay those taxes to the state. In order to collect sales tax, you must have a sales tax permit.
The process for obtaining a sales tax permit is simple and can be done online at the OTC website at http://www.tax.ok.gov/ for the "Business Registration Forms." The permit costs $20. There are also workshops available to assist you in filling out the form and obtaining your permit.
Sales taxes can be paid online at the site listed above. It is an easy process and an OTC agent will visit with you to explain how that process works. You have to report every month, even if your sales are $0. After a 6 month probationary period, you can have some flexibility for months with $0 sales. You receive a discount if you pay early, fines if you pay late.
For immediate questions, please contact the OTC Taxpayer Assistance Division at (405) 521-3160 or in-state toll-free at (800) 522-8165. For more explicit information, see my ArtFocus Oklahoma article on page 25 of this issue.
If I can do this, so can you.
Guest blogger: Stephen Kovash,
Istvan Gallery http://istvangallery.com/, OVAC Board President
OVAC will offer “What's a Write Off?” on February 18, 5:30-7:30 pm at Mainsite Contemporary Art in Norman. This workshop will address legal, tax, and accounting issues for individual artists. Learn more at www.ArtistSurvivalKit.org.