Before making the purchase, the purchase cardholder has the responsibility to ensure that sales tax and lodging tax are not charged on purchase card transactions that are tax exempt.

Sales Tax

In-State Sales Tax

Counties should not be paying Oklahoma state, city, or county sales tax on purchase card transactions

Out-of-State Sales Tax

Sales tax may apply on out-of-state purchases

Tribal Sales Tax

Tribal sales tax may apply to in-state and out-of-state purchases. If the tribal government does not exempt governmental entities, the sales tax should be paid.

Sales Tax – Online Purchases

To avoid paying sales tax on internet purchases, the county may register for the vendor's tax-exempt program prior to purchasing items on the vendor's website.

Some vendors accept a Streamlined Sales and Use Tax Agreement, Certificate of Exemption (OMES Form F0003.)

Lodging/Occupancy Tax

Lodging or occupancy tax may apply to in-state and out-of-state purchases depending on the taxing entity that created the lodging tax.

Purchase Card Controls/Limits

The purchase card shall not be loaned to another person. The purchase card cannot be used for personal use.

Before using the purchase card, a purchase order must be encumbered, and proper purchasing procedures must be followed.

Individual transactions, other than transactions specifically listed in the statute as exceptions, may not exceed Five Thousand Dollars ($5,000.00) per the Oklahoma Statutes.
74 O.S. § 85.5a(D)(2)

The purchase card may be used to purchase supplies and services within the single purchase limit and credit limit (excludes prohibited purchases).

The total amount of the purchase should not exceed the card’s single purchase limit.

Exceptions to Limits

For any transaction with a county purchase card, the single transaction shall not exceed the limit of Five Thousand Dollars ($5,000.00) unless named as an exception in accordance with the Oklahoma Statutes.
74 O.S. § 85.5a(D)(2)

A purchase card transaction has no limit on the amount for the following exceptions:

• Statewide Contract purchases
  74 O.S. § 85.5a(D)(1)
• Regulated Utilities (water, electric, gas, sewage) as defined in OAC 260:115-1-2
• Interagency Payments
  18 O.S. § 803
• Professional Services as defined in the Oklahoma Statutes
• Emergency purchases in response to an emergency declaration by the Governor

Note:
Bids at the county level DO NOT qualify as an exception under 74 O.S. § 85.5.

Travel Purchases

The purchase card may be used for travel expenses as outlined in the written travel policy adopted by the board of county commissioners on behalf of the county.

A purchase order should be encumbered with an estimate of the travel expense. The purchase card may be used for the purchase of airfare and/or lodging.

A recommended best practice is that a separate purchase order is issued to the hotel for lodging. The hotel receipt should have a zero balance.

A cardholder may make reservations and pay for lodging expenses for other county employees/officials who are traveling on official business.

The purchase card may be used for expenses required to attend a conference, including conference registration and training course fees in accordance with the adopted County Travel Policy.

Prohibited Purchases

The following items are purchases that are prohibited when using the purchase card:

• Taxes (excluding tribal taxes or out-of-state taxes on lodging)
• Entertainment
• Tobacco and alcoholic beverages
• Cash, cash advances, automatic teller machine (ATM) transactions
• Purchase of any goods or services for personal use
• Purchase of any goods or services not for official county use
• Meals & incidental expenses if the county has adopted a per diem (per day allowance) policy for reimbursement of travel expenses
• Any transaction or series of transactions, which exceed the limits established on an individual purchase card
• Gift certificates or gift cards
• Other purchases not permitted under county policy and procedures

Warning:
Split purchasing is prohibited.

“Split Purchasing” means dividing a purchase into two or more transactions for the purpose of staying below the individual transaction limit of Five Thousand Dollars ($5,000.00) or for the purpose of evading a competitive bidding requirement.

Audit Requirements

All transactions are subject to audit by the State Auditor and Inspector’s office.

• 19 O.S. § 1505(J)
• 74 O.S. § 85.5a
  

Transparency of Transactions through Open Books

• 19 O.S. § 444
• 19 O.S. § 445

In accordance with the Oklahoma Statutes, complete descriptions of purchases made by county government entities shall be published through the state transparency portal pursuant to the Oklahoma Statutes and as warrants required to be published pursuant to the Oklahoma Statutes. The county purchasing agent will work with OMES to determine the method of transferring transaction information.

All transactions are listed on the state of Oklahoma Open Books website, using the following information:

• Cardholder’s last name and first initial
• Merchant name
• Amount of transaction

For additional information on the policies and procedures for the county purchase card, refer to SA&I’s Purchase Card Policies and Procedures Manual (listed under "Purchase Card Resources").