MidAmerica Industrial Park

TAXES

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. Please click here for a table of state corporate income tax rates. According to the Tax Foundation, Oklahoma ranks number 7 among the states and has a lower rank than the surrounding states of Kansas, Missouri, Arkansas, and Texas, Louisiana and New Mexico. Oklahoma has eliminated capital gain taxes for property owned by Oklahoma corporations.

Corporate / LLC / LLP Organization Fees
For 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
New employers will pay a contribution rate of 1.8% on the first $13,200 of earnings per employee. The rates may be as low as .3% with no contribution rate exceeding 8.3%. The new employer rate can change annually, and it is based on an average of all contribution rates with a minimum new employer rate of 1%. The taxable wage base changes annually. Generally, employers with two or more years of experience pay a modified rate based on the employer's experience. A partial unemployment benefits program allows for partial benefits for a reduced work week to retain workers until they return to full-time work status.

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. Oklahoma has eliminated the tax for businesses that owe $10 or less.

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 current rates are $81.45 and $74.37, respectively. The assessment ratios are 11.2% for real property and 11.0% for personal property.

Estimate the taxes on your business and personal property. Click here NOW.

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
Over the past several years, the Governor and the Legislature has implemented 38 significant reforms targeted to reduce costs and improve the system. In a special session in 2005, a reform package was passed which is estimated to save $120 million annually. It addresses controversial topics of attorney fees, definitions of what constitutes a work related injury, soft tissue injuries, so-called dueling doctors, medical fees and choice of doctors.

Today, businesses are beginning to reap the benefits of these reform packages by seeing rates decline by as much as 40% from base rates. Businesses have the option to select coverage either through the state fund or through private insurers. Under certain conditions, self-insurance is also an option.

In addition, special provisions have been made by the legislature to provide manufacturing firms and other businesses with sales tax exemptions as incentives to do business in Oklahoma. For a complete guide to Oklahoma Business Incentives and Tax Information, please request our "Taxes" publication via our Express Request Email service.

Other Tax Comparisons
Oklahoma compares favorably when comparing per capita tax collections from the US Bureau of the Census that affect businesses. These tax collections include state property taxes, corporate income and license taxes, occupation and business taxes, and motor fuel taxes. The table below compares Oklahoma taxes to the U.S. average.

State Government Tax Collections – Per Capita

Year	2000	2001	2003	2004	2005	2006
Oklahoma	$218.79	$219.67	$209.18	$224.26	$233.34	$257.93
U.S. Average	$310.26	$305.67	$298.41	$313.62	$351.38	$386.82
% Below U.S. Average	-29.5%	-28.1%	-29.9%	-28.5%	-33.6%	-33.3%

Please click here for the detailed table showing per capita collections for selected states and the U.S. average.

The Tax Foundation released its study in 2008 on business taxes. Indices reported in the study included corporate income tax, individual income tax, sales tax, unemployment insurance, and property. The lower the rank is the better the position. The overall rank for Oklahoma was 19th as compared to 21st in 2007. 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. 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.

In 2007, the Tax Foundation calculated the tax burden by combining state and local taxes and then added the Federal taxes to the equation. Under the combined state and local taxes, Oklahoma ranked 45th (9.0% of income), but when Federal taxes were added, the ranking dropped to 50th (27.8% of income). Texas on the other hand ranked 43rd on the combined state and local taxes and 41st when Federal taxes were added. Arkansas ranked 13th (11.3%) on the combined state and local taxes and 32nd (30.7%)when Federal taxes were added. Please click here for the table on tax burdens for all states.

PERSONAL TAXES
Personal Income Tax
The personal income tax ranges from 0.5% to 6.65% (just lowered from 7.0% and will become effective in 2005).

Oklahoma's personal income tax is being reduced significantly from 2004 to 2007. Income tax rates range from:

2004 Tax Year: 0.5% to 7.0%
2005 Tax Year: 0.5% to 6.65%
2006 Tax Year: 0.5% to 6.25%
2007 Tax Year: 0.5% to 5.65%

To view the specific personal income tax brackets, please click here.

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.