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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 1060 By: Boles
AS INTRODUCED
An Act relating to sales tax; amending 68 O.S. 2011,
Section 1360, which relates to exemptions for
corporations and partnerships; providing exempt ion
for specified transfers of tangible personal
property; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 1360, is
amended to read as follows :
Section 1360. Exemptions - Corporations - Partnerships.
There are hereby specifically exempted from the tax levied in
this article Section 1350 et seq. of this title :
1. The transfer of tangible personal property, as follows:
a. from one corporation to another corporation pursuant
to a reorganization. As used in this subparagraph the
term “reorganization” means a statutory merger or
consolidation or the acquisition by a corporation of
substantially all of the properties of another
corporation when the consideration is solely all or a
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part of the voting stock of the acquiring corporation,
or of its parent or subsidiary corporation,
b. between wholly owned subsidiaries of a parent company
and between a parent company and its wholly owned
subsidiary,
c. in connection with the winding up, dissolution or
liquidation of a corporation only when there is a
distribution in kind to the shareholders of the
property of such corporation,
c.
d. to a corporation for the purpose of organization of
such corporation where the former owners of the
property transferred are immediately after the
transfer in control of the corporation, and the value
of the stock or securities received by each is
substantially in proportion to the value of such
person’s interest in the property transferred by all
the former owners,
d.
e. to a partnership in the organization of such
partnership if the former owners of the property
transferred are, immediately after the transfer,
members of such partnership and the value of the
interest in the partnership, received by each, is
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substantially in proportion to the value of such
person’s interest in the property transferred by all
former owners,
e.
f. from a partnership to the members thereof when made in
kind in the dissolution of such partnership,
f.
g. to a limited liability company in the organization of
the limited liability company if the former owners of
the property transferred are, immediately after the
transfer, members of the limited liability company and
the value of the interest in the limi ted liability
company received by each is substantially in
proportion to the value of the interest in the
property transferred by all the former owners, and
g.
h. from a limited liability company to the members
thereof when made in kind in the dissolution of the
limited liability company; and
2. Sale of an interest in tangible personal property to a
partner or other person who after such sale owns a joint interest in
such tangible personal property where the Oklahoma Sales or Use Tax
has previously been pa id on such tangible personal property.
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SECTION 2. This act shall become effective November 1, 20 21.
58-1-5061 MAH 12/23/20