Oklahoma Sales Tax Hike Proposal and the State Business Tax Climate Index November 17, 2015 Scott Drenkard Scott Drenkard Two weeks ago, we analyzed a proposed hike in the Oklahoma state sales tax, finding that the increase would give Oklahoma the highest sales taxes in the country. While the Oklahoma statewide sales tax currently sits at 4.5 percent, and the hike would bring the statewide rate to a modest 5.5 percent, local sales taxes are hefty in Oklahoma, adding an average of 4.28 percent on to the total sales tax consumers are likely to see on their receipts. If the state sales tax hike were enacted, the combined average state and local sales tax rate would be 9.78 percent, with towns like Fort Gibson paying as high as 12 percent, and Tulsa paying 9.517 percent. This matters for businesses and consumers in the state, and would affect Oklahoma’s competitiveness on the national stage. If enacted, the sales tax hike would hurt the state’s ranking on our State Business Tax Climate Index, dropping the state’s overall ranking from 33rd to 34th, and the sales tax component ranking from 38th to 44th. Oklahoma’s Sales Tax Hike and the State Business Tax Climate Index Current law Projected Ranking Overall 33 34 Corporate 8 8 Individual 40 40 Sales 38 44 Unemployment Insurance 1 1 Property 18 18 More on Oklahoma here. View the 2016 State Business Tax Climate Index (released today!) here. Follow Scott on Twitter. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Center for State Tax Policy Oklahoma Sales Taxes
