Low Taxes Make Owasso a Good Value.

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.

Sales Tax in Owasso, Oklahoma

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.

Summary of Sales Tax Rates

Oklahoma 4.50%
Tulsa County 0.37%
Owasso 4.05%
Total 8.92%

Property Tax in Owasso, Oklahoma

Property taxes are the main source of non-grant revenue for school districts, counties, and career-tech systems. Cities may use property taxes only to pay the debt on bonds approved by voters. Owasso has no general bond indebtedness and ad valorem taxes are not a significant source of the city’s revenue. For businesses, property taxes are based on the assessed value of the tangible property: furniture, fixtures, equipment and inventory that you own on January 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.

Tax Increment Financing District (TIF)

The City of Owasso has created a Redbud District TIF to spur revitalization/development in downtown Owasso. As businesses locate in the TIF district and the area redevelops, property values are expected to rise. The base rate continues to pay for local services. The additional tax money generated by the higher property value, or the “tax increment,” is kept separate and used to pay for the redevelopment.
For more information, visit the Districts's Website.

Other Taxes in Owasso, Oklahoma

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.