The Oklahoma Tax Commission(Commission) issued a Letter Ruling 26-012 on September 8, 2026, regarding the application of the Oklahoma sales and use tax on SaaS subscriptions to a web-based software platform designed to assist different public organizations and other organizations with managing surplus property throughout the surplus disposition and sales process.
The Applicant has submitted a request for Letter Ruling primarily searching for a clarification regarding the applicability of the sales and use tax on SaaS subscriptions and on the remotely accessible software platform.
Background
Applicant provides a hosted, web-based software platform, payable through a subscription-based model, that is remotely accessible. Relevant facts concerning the web-based platform, and complementary services provided by the requesting party:
- Applicant hosts and maintains a web-based platform and connected services
- The customer can only access the software remotely; there is no delivery of the software on any tangible storage medium
- Customers don’t obtain ownership of the software
- Access to the software and related services is tied to a monthly or yearly subscription
- Applicant can provide additional services, such as training services for onboarding towards better usage of the software
Oklahoma Tax Commission Perspective
Applicant’s principal question was: Are subscription charges paid by customers for remote access to its hosted web-based platform taxable under Oklahoma sales and use tax law when the software can only be accessed online, without any transfer of the software through a tangible storage medium?
The Commission responded that under the Oklahoma Tax Code, sales of prewritten computer software that is delivered digitally are exempt from sales and use tax.
Other questions raised by the applicant include clarifying the necessity for the issuance of the sales tax permit when the above-described software is provided; sales and use tax framework for the ancillary services provided connected to the usage of the web-based platform; onsite/online supporting trainings.
For more information, you can refer to the Commission letter ruling.
Impact of the Letter Ruling
The Commission clarified for the Applicant that, under the Oklahoma sales and use tax framework, its SaaS subscriptions, provided in the described manner, are exempt from the sales and use tax.