Individuals and corporations in Oklahoma are required to pay taxes or fee charges to both levels of government: state and local.
Income taxes are steadily increased as a major State revenue source since 1933 when the Oklahoma Constitution was amended to prohibit State-level taxation of property.
In 1939, the sales tax rate was increased to two percent with the revenues being used to fund public assistance programs.
In 1990, the passage of the "Education Reform Act" increased the State sales tax rate to its present four and a half percent.
With the elimination of State-level property taxation, the gross production tax began an important source of State revenue.
The motor vehicle tax has since its enactment been the primary funding mechanize used for the construction and maintenance of State roads and bridges.
The fuel taxes continue to be the State's primary source of funding for infrastructure spending, with a significant portion of the revenues being forwarded to local level government.
As Oklahoma is home to numerous Native American tribes, the State has entered into state-tribal tobacco compacts under which the tribes remit taxes to the State derived from the sale of tobacco products on Indian land.
Oklahoma state law levies taxes on cigarettes as well as various other tobacco products: $250 for 1 year permit for wholesalers $100 for 1 year permit for distributors Large Cigar Tax - $0.12/each Smoking Tobacco - 80% of factory list price Chewing Tobacco - 60% of factory list price $250 for 1 year permit for wholesalers $100 for 1 year permit for distributors Oklahoma assesses a State level excise tax on insurance premiums paid across the State.
Revenues from insurance premium taxes are earmarked by the Oklahoma Legislature to support specific state agencies and/or funds.