Okla. Admin. Code § 710:65-1-8

Current through Vol. 42, No. 3, October 15, 2024
Section 710:65-1-8 - Established place of business; maintaining a place of business
(a)"Established place of business" defined.
(1) An "established place of business" means a location at which:
(A) Any person regularly engages in, conducts, or operates a business:
(i) in a continuous manner,
(ii) for any length of time,
(iii) that is open to the public during hours customary for the type of business; and
(B) Merchandise for resale is maintained, and not exempted by law from attachment, execution, or other species of forced sale barring any satisfaction of any delinquent sales tax liability.
(2) A location used in conducting a hobby is not considered an "established place of business" even though occasional taxable sales are made from the location; i.e., a garage set up as a wood working shop. The occasional sales are taxable and are to be reported by the seller on a sales tax report as casual sales.
(b)"Maintaining a place of business" defined. "Maintaining a place of business in this state" means and shall be presumed to include:
(1) Utilizing or maintaining in this state, directly or through subsidiary the operations outlined in (A) through (E) of this paragraph whether owned or operated by the vendor or any other person, other than a common carrier acting in its capacity as such.
(A) an office (to include a home office),
(B) a distribution house,
(C) a sales house (such as a shop or store),
(D) a warehouse (could be in a home's garage), or
(E) any other physical place of business (a hot dog stand on wheels, a barbecue wagon parked on the roadside, or an ice cream truck traveling a route); or
(2) Having agents operating in this state such as salesmen, brokers, or wholesale buyers;
(A) Whether the place of business, or agent is within this state temporarily (traveling salesman, buyers for out-of-state firms) or permanently (shop or store in a mall); or
(B) Whether the person is authorized to do business within this state. Example: A broker, who is self-employed, operates his business from an office he has established in a spare bedroom of his home in this state. He does not have an "established place of business" but he does "maintain a place of business in this state." [See: 68 O.S. §§ 1352(10), (13); 1401(10)]
(3) The presence of any person, other than a common carrier acting in its capacity as such, that has substantial nexus in this state and that:
(A) sells a similar line of products as the vendor and does so under the same or a similar business name,
(B) uses trademarks, service marks or trade names in this state that are the same or substantially similar to those used by the vendor,
(C) delivers, installs, assembles or performs maintenance services for the vendor,
(D) facilitates the vendor's delivery of property to customers in the state by allowing the vendor's customers to pick up property sold by the vendor at an office, distribution facility, warehouse, storage place or similar place of business maintained by the person in this state, or
(E) conducts any other activities in this state that are significantly associated with the vendor's ability to establish and maintain a market in this state for the vendor's sale.
(4) The presumptions in paragraphs (1) and (2) of subsection (b) may be rebutted by demonstrating that the person's activities in this state are not significantly associated with the vendor's ability to establish and maintain a market in this state for the vendor's sales.

Okla. Admin. Code § 710:65-1-8

Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 27 Ok Reg 2308, eff 7-11-10
Amended by Oklahoma Register, Volume 34, Issue 24, September 1, 2017, eff. 9/11/2017