Oklahoma Governor Proposes Ad Tax

Oklahoma Governor Mary Fallin recently proposed eliminating a number of sales tax exemptions, including the exemption for advertising, in order to resolve a potential budget shortfall of nearly $1.3 billion for FY2017.

The current sales tax rate is 4.5 percent and counties and cities can add an additional local sales tax so the average sales tax rate is 8.77 percent. It is not clear whether the Governor would impose the sales tax only on local advertising purchased in-state or whether she would seek to impose it on all advertising which appears in the state.
 
No one in the legislature has expressed support for this proposal so far. The legislature is scheduled to adjourn on May 27.

We are working with the Oklahoma broadcasters and other industry groups to closely monitor this situation.

If you have any questions or information about the ad tax proposal in Oklahoma or any other state, please contact Dan Jaffe (djaffe@ana.net) in ANA’s Washington, D.C. office at 202.296.1883.