Taxes & INCENTIVES
Owasso businesses benefit from Oklahoma’s standing as the state with the lowest business tax burden. (Source: Anderson Economic Group, LLC, 2018) Oklahoma has very low property and unemployment compensation taxes, and an above-average severance tax.
Low Taxes Make Owasso a great Value
Sales Tax
Municipal governments in Oklahoma derive their operating budget primarily from sales and use tax, permit fees, service fees, grants and fines. Highways and convenient access roads funnel traffic through Owasso, making Owasso a natural choice for many retail operations. Sales tax collection from these retail sources allow the city to better support existing businesses and to encourage additional growth.
PROPERTY TAX
Property taxes are the main source of non-grant revenue for school districts, counties, and career-tech systems. Cities may only use ad valorem (property tax) taxes to pay the debt on bonds approved by voters and judgments against the City. Owasso has no general bond indebtedness and does not receive ad valorem taxes for city operations. For businesses, property taxes are based on the assessed value of the tangible property: furniture, fixtures, equipment, and inventory that you own on Jan. 1 of the current tax year.
Manufacturing Exemption
Certain new or expanding manufacturing or research and development facilities may qualify for a five-year exemption from property taxes.
Freeport Exemption
Some business inventories may be exempted from property taxation in whole or in part if not detained in Oklahoma more than nine months.
Other Taxes in Owasso
The City of Owasso collects a 2% franchise tax on utilities, a 5% hotel tax, and state-shared revenues taxed on telephones, alcoholic beverages, tobacco, and gasoline.
Tax Increment Financing District
The City of Owasso established the Redbud District TIF (Tax Increment Financing) to support revitalization and development in downtown Owasso. As new businesses move into the district and redevelopment progresses, property values are expected to increase. The original tax base continues to fund local services, while the additional tax revenue generated from rising property values — the “tax increment” — is set aside specifically to fund redevelopment efforts within the district.
For more information, visit the District's Website.
INCENTIVES
The City of Owasso is dedicated to fostering high-quality development and enhancing the quality of life for its residents. Our incentive programs may include tax abatements, infrastructure improvements, fee waivers, loans, and other benefits, particularly for target industries. To explore potential incentives that could reduce your business costs, contact Owasso Economic Development at 918-376-1500 or email swingert@cityofowasso.com.
Click here for the Oklahoma Business Incentives & Tax Guide to learn about other incentive opportunities.
Oklahoma Quality Jobs Program
This program provides quarterly cash payments to a qualifying company of a percentage, not to exceed 5%, of newly created gross taxable payroll. Special provisions are made for certain small employers in rural counties or other specially designated locations.
Former Native American Lands
Businesses operating on Oklahoma lands formerly owned by Native American Tribes may qualify for accelerated depreciation of property and federal tax credits for employment of qualifying tribal members and spouses. Determination of qualifications is made by the U.S. Internal Revenue Service. This county was formerly owned by Native American Tribes.
Foreign Trade Zones: Tulsa International Airport & Tulsa Port of Catoosa
Businesses engaged in international trade benefit from special customs procedures when exporting, warehousing, manufacturing, or assembling with imported goods in Foreign Trade Zones.
Oklahoma Enterprise Zone, Portions
Additional incentives may be available to firms locating within Enterprise Zones. Enterprise Zones include designated counties, cities, or portions thereof and are based on the relative economic health of the area and other factors. Portions of this county or communities within the county have been designated.
