Oklahoma 2022 Regular Session

Oklahoma House Bill HB1566 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
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	3	+	ENGR. S. A. TO ENGR. H. B. NO. 1566 Page 1 1
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	28	+	ENGROSSED SENATE AMENDMENTS
	29	+	TO
	30	+	ENGROSSED HOUSE
3	31		BILL NO. 1566 By: Sims, Caldwell (Trey) and
4	32		Waldron of the House
5	33
6	34		and
7	35
8	36		Rader of the Senate
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14		-	An Act relating to revenue and taxation; amending 68
15		-	O.S. 2011, Section 1354, as amended by Section 2,
16		-	Chapter 323, O.S.L. 2012 (68 O.S. Sup p. 2020, Section
17		-	1354), which relates to sales tax; authorizing use of
18		-	taxes collected from certain sales; and providing an
19		-	effective date.
	42	+	[ revenue and taxation - sales tax - use of taxes
	43	+	collected from certain sales - effective date ]
20	44
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22	46
23		-	Subject: Revenue and taxation
	47	+
	48	+	AMENDMENT NO. 1 Page 8, line 5, delete, after the second word
	49	+	"for", the words "the following purposes :"
	50	+
	51	+	AMENDMENT NO. 2 Page 8, lines 6-12, delete all language beginning
	52	+	on line 6 with the letter "a." and ending on line
	53	+	12 with the letter "b."
	54	+
	55	+	AMENDMENT NO. 3 Amend title to conform
	56	+
	57	+	Restore title
	58	+
	59	+
	60	+	ENGR. S. A. TO ENGR. H. B. NO. 1566 Page 2 1
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	85	+	Passed the Senate the 13th day of April, 2021.
	86	+
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	89	+	Presiding Officer of the Senate
	90	+
	91	+
	92	+	Passed the House of Representatives the ____ day of __________,
	93	+	2021.
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	96	+
	97	+	Presiding Officer of the House
	98	+	of Representatives
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	100	+	ENGR. H. B. NO. 1566 Page 1 1
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	125	+	ENGROSSED HOUSE
	126	+	BILL NO. 1566 By: Sims, Caldwell (Trey) and
	127	+	Waldron of the House
	128	+
	129	+	and
	130	+
	131	+	Rader of the Senate
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	133	+
	134	+
	135	+
	136	+
	137	+	[ revenue and taxation - sales tax - use of taxes
	138	+	collected from certain sales - effective date ]
	139	+
	140	+
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24	142
25	143		BE IT ENACTED BY THE PEOPLE OF THE ST ATE OF OKLAHOMA:
26	144		SECTION 1. AMENDATORY 68 O.S. 2011, Section 1354, as
27	145		amended by Section 2, Chapter 323, O.S.L. 2012 (68 O.S. Supp. 2020,
28	146		Section 1354), is amended to read as follows:
29		-
30	147		Section 1354. A. There is hereby levied upon all sales, not
31	148		otherwise exempted in the Oklahoma Sales Tax Code, an excise tax of
32	149		four and one-half percent (4.5%) of the gross receipts or gross
33	150		proceeds of each sale of the following:
34		-
35	151		1. Tangible personal property, except newspapers and
36	152		periodicals;
37		-
38	153		2. Natural or artificial gas, electricity, ice, steam, or any
39	154		other utility or public service, except water, sewage and refuse.
40	155		Provided, the rate of four and one -half percent (4.5%) shall not
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41	182		apply to sales subject to the provisions of paragraph 6 of Sec tion
42	183		1357 of this title;
43		-
44	184		3. Transportation for hire to persons by common carriers,
45		-	including railroads both steam and electric, motor transportation ~~ENR. H. B. NO. 1566 Page 2~~
	185	+	including railroads both steam and electric, motor transportation
46	186		companies, pullman car companies, airlines, and other means of
47	187		transportation for hire, excluding:
48		-
49	188		a. transportation services provided by a tourism service
50	189		broker which are incidental to the rendition of
51	190		tourism brokerage services by such broker to a
52	191		customer regardless of whether or not such
53	192		transportation services are actually owned and
54	193		operated by the touri sm service broker. For purposes
55	194		of this subsection, "tourism service broker " means any
56	195		person, firm, association or corporation or any
57	196		employee of such person, firm, association or
58	197		corporation which, for a fee, commission or other
59	198		valuable consideration, arranges or offers to arrange
60	199		trips, tours or other vacation or recreational travel
61	200		plans for a customer, and
62		-
63	201		b. transportation services provided by a funeral
64	202		establishment to family members and other persons for
65	203		purposes of conducting a funeral in this st ate;
66	204
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67	230		4. Intrastate, interstate and international telecommunications
68	231		services sourced to this state in accordance with Section 1354.30 of
69	232		this title and ancillary services. Provided:
70		-
71	233		a. the term "telecommunications services " shall mean the
72	234		electronic transmission, conveyance, or routing of
73	235		voice, data, audio, video, or any other information or
74	236		signals to a point, or between or among points. The
75	237		term "telecommunications services " includes such
76	238		transmission, conveyance, or routing in which computer
77	239		processing applications are used to act on the form,
78	240		code or protocol of the content for purposes of
79	241		transmission, conveyance or routing without regard to
80	242		whether such service is referred to as voice -over
81	243		Internet protocol services or is classified by the
82	244		Federal Communications Commission as enhanced or value
83	245		added. "Telecommunications services " do not include:
84		-
85	246		(1) data processing and information services that
86	247		allow data to be generated, acquired, stored,
87	248		processed, or retrieved and delivered by an
88	249		electronic transmission to a purchaser where such
89	250		purchaser's primary purpose for the underlying
90		-	transaction is the processed data or information, ~~ENR. H. B. NO. 1566 Page 3~~
	251	+	transaction is the processed data or information,
91	252		(2) installation or maintenance of wiring or
92	253		equipment on a customer 's premises,
93	254
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94	280		(3) tangible personal property,
95		-
96	281		(4) advertising, including but not limited to
97	282		directory advertising,
98		-
99	283		(5) billing and collection services provided to third
100	284		parties,
101		-
102	285		(6) Internet access services ,
103		-
104	286		(7) radio and television audio and video programming
105	287		services, regardless of the medium, including the
106	288		furnishing of transmission, conveyance and
107	289		routing of such services by the programming
108	290		service provider. Radio and television audio and
109	291		video programming services shall include, but not
110	292		be limited to, cable service as defined in 47
111	293		U.S.C. 522(6) and audio a nd video programming
112	294		services delivered by commercial mobile radio
113	295		service providers, as defined in 47 C.F.R. 20.3 ;,
114		-
115	296		(8) ancillary services, or
116		-
117	297		(9) digital products delivered electronically,
118	298		including but not limited to, software, music,
119	299		video, reading materials or ring tones,
120		-
121	300		b. the term "interstate" means a "telecommunications
122	301		service" that originates in one United States state,
123	302		or a United States territory or possession, and
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124	329		terminates in a different United States state or a
125	330		United States territory or po ssession,
126		-
127	331		c. the term "intrastate" means a telecommunications
128	332		service that originates in one United States state or
129	333		a United States territory or possession, and
130	334		terminates in the same United States state or a United
131	335		States territory or possession,
132		-
133	336		d. the term "ancillary services" means services that are
134	337		associated with or incidental to the provision of
135		-	telecommunications services, including but not limited ~~ENR. H. B. NO. 1566 Page 4~~
	338	+	telecommunications services, including but not limited
136	339		to "detailed telecommunications billing ", "directory
137	340		assistance", "vertical service", and "voice mail
138	341		services",
139		-
140	342		e. in the case of a bundled transaction that includes
141	343		telecommunication service, ancillary service, Internet
142	344		access or audio or video programming service:
143		-
144	345		(1) if the price is attributable to products that are
145	346		taxable and products that are nontax able, the
146	347		portion of the price attributable to the
147	348		nontaxable products may be subject to tax unless
148	349		the provider can identify by reasonable and
149	350		verifiable standards such portion for its books
150	351		and records kept in the regular course of
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151	378		business for other pur poses, including, but not
152	379		limited to, nontax purposes, and
153		-
154	380		(2) the provisions of this paragraph shall apply
155	381		unless otherwise provided by federal law, and
156		-
157	382		f. a sale of prepaid calling service or prepaid wireless
158	383		calling service shall be taxable at the time of sale
159	384		to the customer;
160		-
161	385		5. Telecommunications nonrecurring charges, which means an
162	386		amount billed for the installation, connection, change or initiation
163	387		of telecommunications services received by a customer;
164		-
165	388		6. Printing or printed matter of all types, ki nds, or character
166	389		and, except for services of printing, copying or photocopying
167	390		performed by a privately owned scientific and educational library
168	391		sustained by monthly or annual dues paid by members sharing the use
169	392		of such services with students interested in the study of geology,
170	393		petroleum engineering or related subjects, any service of printing
171	394		or overprinting, including the copying of information by mimeograph,
172	395		multigraph, or by otherwise duplicating written or printed matter in
173	396		any manner, or the product ion of microfiche containing information
174	397		from magnetic tapes or other media furnished by customers;
175		-
176	398		7. Service of furnishing rooms by hotel, apartment hotel,
177	399		public rooming house, motel, public lodging house, or tourist camp;
	400	+	8. Service of furnishing sto rage or parking privileges by auto
	401	+	hotels or parking lots;
178	402
179		-	8. Service of furnishing storage or parking p rivileges by auto
180		-	hotels or parking lots; ENR. H. B. NO. 1566 Page 5
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182	428		9. Computer hardware, software, coding sheets, cards, magnetic
183	429		tapes or other media on which prewritten programs have been coded,
184	430		punched, or otherwise recorded, including the gross receipts from
185	431		the licensing of software programs;
186		-
187	432		10. Foods, confections, and all drinks sold or dispensed by
188	433		hotels, restaurants, or other dispensers, and sold for immediate
189	434		consumption upon the premises or delivered or carried away from the
190	435		premises for consumption e lsewhere;
191		-
192	436		11. Advertising of all kinds, types, and characters, including
193	437		any and all devices used for advertising purposes except those
194	438		specifically exempt pursuant to the provisions of Section 1357 of
195	439		this title;
196		-
197	440		12. Dues or fees to clubs including free or complimentary dues
198	441		or fees which have a value equivalent to the charge that would have
199	442		otherwise been made, including any fees paid for the use of
200	443		facilities or services rendered at a health spa or club or any
201	444		similar facility or business;
202		-
203	445		13. Tickets for admission to or voluntary contributions made to
204	446		places of amusement, sports, entertainment, exhibition, display, or
205	447		other recreational events or activities, including free or
206	448		complimentary admissions which have a value equivalent to the charge
207	449		that would have otherwise been made; provided, that the state tax
208	450		generated from the sale of tickets for admission by an aquarium
209	451		exempt from taxation pursuant to the provisions of the Internal
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210	478		Revenue Code, 26 U.S.C., Section 501(c)(3) , or owned or operated by
211	479		a public trust or political subdivision of this state, shall be
212	480		collected and disbursed to the nonprofit organization, public trust
213	481		or political subdivision responsible for the aquarium 's operations
214		-	for use by that entity for promoting visitation primarily to out -of-
215		-	state residents;
216		-
	482	+	for use by that entity for the following purposes:
	483	+	a. servicing or aiding the servicing of debt incurred by
	484	+	the aquarium to effect the construction, enlarging or
	485	+	renovation of any facility to be used for
	486	+	entertainment, edification, education, conservation or
	487	+	cultural cultivation to which entry is gained with a
	488	+	paid admission ticket, or
	489	+	b. promoting visitation primarily to out -of-state
	490	+	residents;
217	491		14. Charges made for the privilege of entering or engaging in
218	492		any kind of activity, such as tennis, racquetball, or handball, when
219	493		spectators are charged no admission fee ;
220		-
221	494		15. Charges made for the privilege of using items for
222	495		amusement, sports, entertainment, or recreational activity, such as
223	496		trampolines or golf carts;
224		-	ENR. H. B. NO. 1566 Page 6
225	497		16. The rental of equipment for amusement, sports,
226	498		entertainment, or other recreational activities, suc h as bowling
227	499		shoes, skates, golf carts, or other sports or athletic equipment;
228		-
229	500		17. The gross receipts from sales from any vending machine
230	501		without any deduction for rental to locate the vending machine on
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231	528		the premises of a person who is not the owner or an y other
232	529		deductions therefrom;
233		-
234	530		18. The gross receipts or gross proceeds from the rental or
235	531		lease of tangible personal property, including rental or lease of
236	532		personal property when the rental or lease agreement requires the
237	533		vendor to launder, clean, repair, or otherwise service the rented or
238	534		leased property on a regular basis, without any deduction for the
239	535		cost of the service rendered. If the rental or lease charge is
240	536		based on the retail value of the property at the time of making the
241	537		rental or lease agreem ent and the expected life of the property, and
242	538		the rental or lease charge is separately stated from the service
243	539		cost in the statement, bill, or invoice delivered to the consumer,
244	540		the cost of services rendered shall be deducted from the gross
245	541		receipts or gross proceeds;
246		-
247	542		19. Flowers, plants, shrubs, trees, and other floral items,
248	543		whether or not produced by the vendor, sold by persons engaged in
249	544		florist or nursery business in this state, including all orders
250	545		taken by an Oklahoma business for delivery in anoth er state. All
251	546		orders taken outside this state for delivery within this state shall
252	547		not be subject to the taxes levied in this section;
253		-
254	548		20. Tangible personal property sold to persons, peddlers,
255	549		solicitors, or other salesmen, for resale when there is likel ihood
256	550		that this state will lose tax revenue due to the difficulty of
257	551		enforcing the provisions of the Oklahoma Sales Tax Code because of:
258	552
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259	578		a. the operation of the business,
260		-
261	579		b. the nature of the business,
262		-
263	580		c. the turnover of independent contractors,
264		-
265	581		d. the lack of place of business in which to display a
266	582		permit or keep records,
267		-
268	583		e. lack of adequate records,
269		-	ENR. H. B. NO. 1566 Page 7
270	584		f. the fact that the persons are minors or transients,
271		-
272	585		g. the fact that the persons are engaged in service
273	586		businesses, or
274		-
275	587		h. any other reasonable reason;
276		-
277	588		21. Any taxable services and tangible personal property
278	589		including materials, supplies, and equipment sold to contractors for
279	590		the purpose of developing and improving real estate even though said
280	591		real estate is intended for resale as real property, hereby decla red
281	592		to be sales to consumers or users, however, taxable materials,
282	593		supplies and equipment sold to contractors as provided by this
283	594		subsection which are purchased as a result of and subsequent to the
284	595		date of a contract entered into either prior to the effect ive date
285	596		of any law increasing the rate of sales tax imposed by this article,
286	597		or entered into prior to the effective date of an ordinance or other
287	598		measure increasing the sales tax levy of a political subdivision
288	599		shall be subject to the rate of sales tax ap plicable, as of the date
289	600		such contract was entered into, to sales of such materials, supplies
290	601		and equipment if such purchases are required in order to complete
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291	628		the contract. Such rate shall be applicable to purchases made
292	629		pursuant to the contract or any c hange order under the contract
293	630		until the contract or any change order has been completed, accepted
294	631		and the contractor has been discharged from any further obligation
295	632		under the contract or change order or until two (2) years from the
296	633		date on which the contr act was entered into whichever occurs first.
297	634		The increased sales tax rate shall be applicable to all such
298	635		purchases at the time of sale and the contractor shall file a claim
299	636		for refund before the expiration of three (3) years after the date
300	637		of contract completion or five (5) years after the contract was
301	638		entered into, whichever occurs earlier. However, the Oklahoma Tax
302	639		Commission shall prescribe rules and regulations and shall provide
303	640		procedures for the refund to a contractor of sales taxes collected
304	641		on purchases eligible for the lower sales tax rate authorized by
305	642		this subsection;
306		-
307	643		22. Any taxable services and tangible personal property sold to
308	644		persons who are primarily engaged in selling their services, such as
309	645		repairmen, hereby declared to be sales to con sumers or users; and
310		-
311	646		23. Canoes and paddleboats as defined in Section 4002 of Title
312	647		63 of the Oklahoma Statutes.
313		-	ENR. H. B. NO. 1566 Page 8
314	648		B. All solicitations or advertisements in print or electronic
315	649		media by Group Three vendors, for the sale of tangible property to
316	650		be delivered within this state, shall contain a notice that the sale
	651	+
	652	+	ENGR. H. B. NO. 1566 Page 12 1
	653	+	2
	654	+	3
	655	+	4
	656	+	5
	657	+	6
	658	+	7
	659	+	8
	660	+	9
	661	+	10
	662	+	11
	663	+	12
	664	+	13
	665	+	14
	666	+	15
	667	+	16
	668	+	17
	669	+	18
	670	+	19
	671	+	20
	672	+	21
	673	+	22
	674	+	23
	675	+	24
	676	+
317	677		is subject to Oklahoma sales tax, unless the sale is exempt from
318	678		such taxation.
319		-
320		-	SECTION 2. This act shall become effective November 1, 2021. ENR. H. B. NO. 1566 Page 9
321		-	Passed the House of Representatives the 27th day of April, 2021.
	679	+	SECTION 2. This act shall become effective November 1, 2021.
	680	+	Passed the House of Representatives the 8th day of March, 2021.
322	681
323	682
324	683
325	684
326	685		Presiding Officer of the House
327	686		of Representatives
328	687
329	688
330		-	Passed the Senate the ~~13th~~ day of ~~April~~, 2021.
	689	+	Passed the Senate the ___ day of __________, 2021.
331	690
332	691
333	692
334	693
335	694		Presiding Officer of the Senate
336	695
337	696
338	697
339		-	OFFICE OF THE GOVERNOR
340		-	Received by the Office of the Governor this ____________________
341		-	day of ___________________, 20_______, at ____ ___ o'clock _______ M.
342		-	By: _________________________________
343		-	Approved by the Governor of the State of Oklahoma this _________
344		-	day of ___________________, 20_______, at _______ o'clock _______ M.
345		-
346		-
347		-	_________________________________
348		-	Governor of the State o f Oklahoma
349		-
350		-	OFFICE OF THE SECRETARY OF STATE
351		-	Received by the Office of the Secretary of State this __________
352		-	day of ___________________, 20_______, at _______ o'clock _______ M.
353		-	By: _________________________________