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Oklahoma Business Personal Property Tax [Guide]

Posted by Eleshia Matheny on May 28, 2020 9:49:56 AM

Oklahoma Business Personal Property Tax [Guide]

Oklahoma is an attractive locale for businesses in a number of industries, with transportation and warehousing, aerospace, and health care leading the pack in recent years. It’s also home to two cities, Tulsa and Oklahoma City, named among the best in the nation for starting a business. Oklahoma’s tax exemptions and low to moderate property tax rate are part of the reason for its appeal. If you do business in the Sooner State, here is what you need to know about Oklahoma’s business personal property tax.

Oklahoma Property Tax Due Dates

Key Dates

Explanation

1/1

Businesses must report all property located in the county on January 1

3/15

Tax rendition for locally assessed property is due. After this date the taxpayer will incur a 10% penalty; after April 15, penalty is 20%.

3/15

Due date for filing the Freeport Exemption application

3/31

If paying tax bill in two installments, second payment for the previous year’s tax filing is due

4/15

Due date for centrally assessed renditions

April, May

County assessors mail assessment notices; businesses have 30 calendar days from the mailing date on the notice to file an appeal

12/31

Tax bill payment due, either paid in full or first of two installments


Oklahoma Business Personal Property Tax Highlights

In Oklahoma, property tax is primarily administered by county assessors. The exception to local assessments are public service corporations—including railroads, airlines, telecommunications companies, and utilities. (Tweet this!) These businesses are centrally assessed by the Oklahoma Tax Commission.

Assessment ratios vary by assessor and by property type (state-mandated limits range from 10% to 15%); however, county assessors are required to apply the same percentage of assessment to all like property throughout the county.

Most businesses use Form OTC 901 annually to report their assets. (Form OTC 901-P should be used only for petroleum-related assets; you can find links to all forms here.) As of 2013, only tangible business personal property is taxed; in Oklahoma that includes Inventory (except in cases that qualify for the Freeport Exemption noted below).

Oklahoma Property Tax Exemptions

Oklahoma businesses may qualify for one of the state’s property tax exemptions:

  • Freeport Exemption—Businesses with inventory may qualify for the Freeport Exemption if inventory is being held in Oklahoma for less than nine months; will be shipped out-of-state; and qualifies as:

    • Goods
    • Wares and merchandise that is held for assembly
    • Storage
    • Manufacturing
    • Processing
    • Fabricating purposes

    Businesses whose inventory meets this criteria should file Freeport Exemption Form 901-F by March 15 annually.

  • Five-year Ad Valorem Tax ExemptionQualifying new, expanded, or acquired manufacturing businesses, research and development facilities, some computer and data processing services, refinery and aircraft repair operations, and some warehouses and distribution centers may apply for a five-year tax abatement. Thresholds for meeting this requirement include a capital investment of at least $250,000 and payroll of $250,000 or more in counties with fewer than 75,000 residents. (Larger counties require a $1 million payroll.) To file for this exemption, submit Form 900XM by March 15 annually.

Assessments & Appeals

Should the value of your company’s assets increase, assessors are required to notify you by mail. Notices are usually sent in April or May each year. You will receive a notice if:

  • Your personal property value increased from the prior year.
  • The value of your personal property is higher than what you indicated on your rendition form.
  • The property was not on the assessor’s records in the prior year.

If you disagree with the valuation, you may file an appeal (Form OTC 974) within 30 calendar days of the mailing date on the notice. In most cases, county assessors will conduct an informal hearing on the matter, and follow up with a “Notice of Informal Decision.” If you disagree with the result, you can file a formal appeal (Form OTC 976) within 15 calendar days of the date printed on the informal decision notice. One copy should be mailed to the county assessor and another to the County Board of Equalization.

Complete your Oklahoma business personal property taxes faster!

Whether you do business just in Oklahoma or in multiple states, you can benefit from property tax software that helps your team work smarter.

  • TotalPropertyTax (TPT) software makes it easy to stay on top of due dates, manages your tax data, and helps you prepare and file return forms faster (more than 500 forms in just minutes!).
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Topics: Business personal property tax