State and Local Tax Alert - July 2016

July 2016

Oklahoma Reduces Time to File Sales and Use Tax Refund Claims to Two Years

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On June 6, 2016, Oklahoma Governor Mary Fallin (R) signed into law H.B. 3205, 55th Leg., 2nd Reg. Sess. (Okla. 2016), which reduces the statute of limitations to file a sales and use tax refund claim to two years for all claims filed on or after August 25, 2016.


H.B. 3205 reduces the statute of limitations for filing a sales and use tax refund claim from three years to two years from the date of payment for refund claims filed on or after August 25, 2016.  A sales or use tax refund claim filed before that date is subject to the current three year statute of limitations.

BDO Insights

  • An Oklahoma taxpayer should assess whether it may have paid sales or use tax on sales or purchases that might be eligible for a refund claim as soon as possible, and file the claim before August 25, 2016.  A taxpayer that files after that date may risk losing a year’s worth of refund to which it would otherwise be entitled, due to the enactment of H.B. 3205.
  • Oklahoma taxpayers that have typically followed a three year period for purposes of assessing refund claims will have to consider refund claims based on a two year period for claims filed after August 25, 2016.
  • H.B. 3205 does not change the three year statute of limitations that applies to sales or use tax assessments.  Thus, H.B. 3205 creates an inequity as between taxpayers and the Oklahoma Tax Commission.

For more information, please contact one of the following regional practice leaders:

West:   Atlantic:
Rocky Cummings
Tax Partner

  Jeremy Migliara
Tax Senior Director

Paul McGovern
Tax Senior Director
  Jonathan Liss
Tax Senior Director

Northeast:   Central:
Janet Bernier 
Tax Partner

  Angela Acosta
Tax Senior Director

Matthew Dyment
Tax Principal

  Nick Boegel
Tax Senior Director


  Joe Carr
Tax Principal

Ashley Morris
Tax Senior Director

  Mariano Sori
Tax Partner

Scott Smith
Tax Senior Director

  Richard Spengler
Tax Senior Director

Tony Manners
Tax Senior Director



Gene Heatly
Tax Senior Director

Tom Smith
Tax Partner