An Act
ENR. H. B. NO. 1060 Page 1
ENROLLED HOUSE
BILL NO. 1060 By: Boles, Davis, Hill and
Moore of the House
and
Paxton of the Senate
An Act relating to sales tax; amending 68 O.S. 2011,
Section 1360, which relates to exemptions for
corporations and partnerships; providing ex emption
for specified transfers of tangible personal
property; and providing an effective date.
SUBJECT: Sales tax
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 an other
corporation when the consideration is solely all or a
part of the voting stock of the acquiring corporation,
or of its parent or subsidiary corporation,
ENR. H. B. NO. 1060 Page 2
b. between wholly owned subsidiaries of a parent company
and between a parent company and its wh olly 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 organiza tion 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 proport ion 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 v alue of the
interest in the partnership, received by each, is
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 limited 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 ENR. H. B. NO. 1060 Page 3
such tangible personal property where the Oklahoma Sale s or Use Tax
has previously been paid on such tangible personal property.
SECTION 2. This act shall become effective November 1, 20 21.
ENR. H. B. NO. 1060 Page 4
Passed the House of Representatives the 27th day of April, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 12th day of April, 2021.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________