Widows of Disabled Oklahoma Veterans Awarded Tax Loophole

Posted on Nov 20, 2012

After years of lobbying, a local Oklahoma veteran's group finally has achieved success in its key initiative: a tax break for the surviving spouses of disabled Army, Navy, and Air Force personnel.

According to the Associated Press, the new law, sponsored by state senator Don Barrington, creates a $1,000 yearly sales tax exemption for the widows or widowers of disabled veterans. (In order to collect the benefit, the late spouse must have been 100 percent disabled and unable to work during the remainder of his lifetime.)

As you might guess, this law is not expected to have a major impact on Oklahoma's tax revenues. Barrington says the law will apply to fewer than 3,000 people across the entire state, and only those who run retail or mail-order establishments and thus have to regularly forward their sales taxes to the Oklahoma Tax Commission. The tax break is intended to partially offset the decrease of benefits to surviving spouses after a disabled veteran passes away.

As admirable as Barrington's law is, it does create yet one more loophole in what is already a very pockmarked Oklahoma tax code.

Are you a business owner who is unsure how much sales tax you owe to the government, or unsure whether you are required to collect this tax in the first place? Contact the Oklahoma sales tax experts at Travis W. Watkins, PC (800-721-7054) for a free consultation about your options!

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