Okla. Admin. Code § 710:65-19-72
Current through Vol. 42, No. 4, November 1, 2024
Section 710:65-19-72 - Deposits, core charges and trade-ins(a) A core deposit is the amount required by the seller to insure that the buyer of a rebuilt item will exchange or trade-in his old rebuildable item. No deduction from the gross proceeds of a sale is permitted for any credit allowed by the seller for the value of a core charge, deposit or a trade-in in exchange or part payment and the tax applies to the full selling price.(b) The retail sale of used tangible personal property which has been acquired by the seller by purchase is taxable upon the full selling price. When an article acquired by the taxpayer by trade-in is subsequently resold, this sale also is taxable on the full selling price. If an article purchased or acquired in trade is salvaged or 'cannibalized' for parts, the sale or use of such parts is considered to be taxable. If the parts are used by the vendor to satisfy an extended warranty agreement, if there is no charge to the customer for the parts, the vendor shall report the cost of the parts on a withdrawal basis and pay sales tax on such cost.(c) Examples of taxable transactions are as follows: (1) John Doe needs to replace his battery. He drives to Lefty's Auto Supply and purchases a new battery. Lefty's Auto Supply charges thirty dollars ($30.00) for the battery and allows him five dollars ($5.00) exchange. Sales Tax is due on the full thirty dollars ($30.00).(2) A piano is sold at retail for one thousand dollars ($1,000.00). The purchaser pays six hundred dollars ($600.00) in cash and is allowed a four hundred dollar ($400.00) trade-in. The selling price, upon which the sales tax must be collected and the amount to be reported as gross proceeds is one thousand dollars ($1,000.00). If the trade-in is later sold for five hundred dollars ($500.00), the sales tax must also be collected on the five hundred dollars ($500.00). [See: 68 O.S. § 1352(12) ]Okla. Admin. Code § 710:65-19-72
Amended at 10 Ok Reg 3847, eff 7-12-93; Amended at 21 Ok Reg 2581, eff 6-25-04; Amended at 27 Ok Reg 2308, eff 7-11-10