Our state & local taxes stay low to help you grow.
BUSINESS TAXES
Corporate Income Tax
Corporations are subject to a maximum rate of 6%. Only that portion of corporate income earned in Oklahoma is taxable. The state tax liability can be offset by tax credits and other exclusions provided to corporations. Oklahoma has eliminated capital gain taxes for property owned by Oklahoma corporations.
Corporate / LLC / LLP Organization Fees
For a domestic corporation, a filing fee of one-tenth of 1% per total authorized capital stock is required for domestic corporations. The minimum fee is $50. Foreign corporations are required to pay a fee of $1 per $1,000 on the total authorized capital or on the amount of capital invested in Oklahoma during the current fiscal year. The minimum fee is $300. A foreign corporation must generally file a signed Certificate of Qualification with the Secretary of State. An LLC must file a Statement of Organization with the Secretary of State. A filing fee of $100 is required. A Foreign LLC may register with the Secretary of State by filing an application and a filing fee of $300. Partnerships and Limited Liability Partnerships file a Statement of Qualification with Secretary of State. Filing fees vary but do not exceed $100.
Unemployment Compensation Tax
A new employer with no unemployment insurance experience shall pay contributions at a rate of 1.0% of taxable wages for the calendar year 2010. The new employer rate can change annually, and it is based on an average of all contribution rates of state employers, with the minimum new employer rate being 1%.
Oklahoma statutes set out the methods for figuring amounts of contributions to be paid to the Unemployment Compensation Fund by employers.
Employer contribution rates are recalculated annually. By September 30th of each year, the Oklahoma Employment Security Commission (OESC) notifies every employer of its contribution rate for the next calendar year. The rate will remain the same for the entire calendar year if there are no changes in the status of the account. The employer can file a written request for review of its rate within 20 days of mailing of the notification. A Commission review order may be appealed to District Court.
Generally, each employer with two or more years of experience is assigned an earned rate. The earned rate is based on the employer’s experience by calculating a benefit wage ratio and two statewide factors known as the state experience factor and the conditional factor.
The benefit wage ratio is a ratio of the benefit wage charges made against an employer account divided by the employer’s taxable payroll for the preceding three years on which taxes have been paid by July 31st of the calendar year immediately preceding the year for which the contribution rate is being calculated. The state experience factor is the ratio of the total unemployment benefits paid in Oklahoma to the total benefit wages of all employers in the state for the preceding calendar year. The conditional factor is the ratio of the five-year average of total unemployment benefits paid in Oklahoma to the Trust Fund balance for the state.
There are tables found at 40 O.S. § 3-109 that list a range of state experience factors next to a range of possible employer’s benefit wage ratios. Once the benefit wage ratio, the state experience factor, and the conditional factor are calculated, an employer’s earned rate can be determined if the fund is in "no condition" by consulting the table. If the fund is in conditions A, B, C, or D, the corresponding increase in rates can be found in 40 O.S. § 3-113.
The taxable wage base is determined as a percentage of the state’s average annual wage. This figure changes annually and represents the amount of wages that are to be taxed per employee. In the year 2010, the taxable wage base is $14,900. Each employer is to report all wages on its quarterly report forms, but taxes are paid at the assigned rate only up to the amount of the taxable wage base on each employee.
A successor or acquiring employer is one that meets the terms of 40 O.S. § 3-111 and regulations of the OESC. To become a successor, an employer or business entity must substantially acquire all of the trade, employees, organization, business or assets of any employer and continue the operations of that predecessor employer as an ongoing business. If this occurs, the successor shall acquire the rating account of the predecessor employer, including the predecessor’s actual contribution and benefit experience, annual payrolls, and contribution rate.
For more information and changes, contact the rate department at the Oklahoma Employment Security Commission at (405) 557-7141.
Annual Corporation Franchise Tax
The current rate is $1.25 per $1,000 of capital employed in Oklahoma with a minimum tax of $10 and a maximum of $20,000.
State & Local Sales Tax
The state sales tax rate is 4.5%. Mayes County levies a tax of 1.375% and Pryor Creek levies a 3.75% tax. However, MidAmerica is not within the incorporated city limits of Pryor Creek or Chouteau and
therefore only state and county rates are applicable for items which are taxable.
Business may choose to use incentives for sales tax exemptions that apply for existing, new and expanding businesses.
Ad Valorem Taxes For Real & Personal Property
MidAmerica is located in two ad valorem tax districts: The northern half of the park is in the Pryor Creek District and the southern half of the park is in the Chouteau District. The 2010 rates are $81.45 and $74.37, respectively. The assessment ratios are 11.2% for real property and 11.0% for personal property.
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Both MidAmerica districts have effective ad valorem rates which are less than 0.95% of fair cash value. Plus, some firms may benefit from incentives for exemptions on real and personal property which are available to new and expanding industries.
New and expanding qualifying manufacturers, research and development companies, certain computer services and data processing companies with significant out-of-state sales and aircraft repair and certain distribution companies may be eligible for ad valorem exemptions for up to five years. In Oklahoma, only local governments are empowered to make ad valorem assessments on businesses.
Workers Compensation Insurance
The market for property and casualty insurance products is robust in Oklahoma, providing ample opportunities for businesses to buy coverage at competitive rates. Additional information can be found at the
Oklahoma Insurance Department website. Other information and forms can be located by calling the Workers' Compensation Court at (405) 522-8600.
Other Tax Comparisons
On an annual basis the Tax Foundation releases a document entitled ‘State Business Tax Climate’. Indices reported in the study included corporate income tax, individual income tax, sales tax, unemployment insurance, and property. The corporate income tax index measured the impact of state's corporate income tax on business. The individual income tax code is also a consideration for business because of partnerships, S-corporations, etc. The type of sales tax is a tax levied on the purchase price of a good or service. This can hurt the business climate. However, it should be pointed out that Oklahoma has a sales tax exemption for manufacturers certain other industries. The unemployment insurance index was comprised of two sub-indices: one that measurers the rate structure and one that focuses on the tax base. The property tax index is comprised of taxes levied on the wealth of individuals and businesses. These include real and personal property, net worth, and the transfer of assets. Click here to go to the
Tax Foundation website.
PERSONAL TAXES
Personal Income Tax
The personal income tax ranges from 0.5% to 5.50%.
Ad Valorem Taxes For Real & Personal Property
MidAmerica is located in two ad valorem tax districts: The northern half of the park is in the Pryor Creek District and the southern half of the park is in the Chouteau District. The current rates are $81.45 and $74.37, respectively. The assessment ratios are 11.2% for real property and 11.0% for personal property.
The rate and assessment ratio are the same as mentioned above in the Business Taxation section. Also, individuals can apply for a $1,000 homestead exemption on real property.
Sales Taxes
Taxes are levied on tangible personal property and services. The rates for Pryor Creek and Mayes County are the same as noted in the above Business Taxes section.
Want To Know More?
For a more comprehensive review of our state and local taxes, please ask for the "Taxes" publication via our
Express Request Email service.
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