Oklahoma taxes products with a Supplement Facts label as dietary supplements

The Oklahoma Tax Commission ruled in a letter ruling that a product bearing a “Supplement Facts” label qualifies as a dietary supplement. Oklahoma applies a 0% sales tax rate to food and food ingredients, but state statute carves dietary supplements out of that definition. The taxpayer’s product displayed a Supplement Facts panel, so the Commission classified it as a dietary supplement. The product remains subject to the standard 4.5% state sales tax rate, plus any applicable local taxes.

The bottom line: The ruling is in effect. If you sell supplements to Oklahoma customers, check your product labels. A Supplement Facts panel means you must collect the 4.5% state tax and any local tax, even if similar food items qualify for the 0% rate.