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Oklahoma House Bill HB2679

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2679 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 58th Legislature (2021)
3131
3232 HOUSE BILL 2679 By: Marti
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; amending 68
4141 O.S. 2011, Section 1356, as last amended by Section
4242 1, Chapter 413, O.S.L. 2019 (68 O .S. Supp. 2020,
4343 Section 1356), which relates to sales tax exemptions;
4444 exempting sales to or from certain Comprehensive
4545 Community Addiction Recovery Centers; and providing
4646 an effective date.
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5151 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5252 SECTION 1. AMENDATORY 68 O.S. 2011, Section 1356, as
5353 last amended by Section 1, Chapter 413, O.S.L. 2019 (68 O.S. Supp.
5454 2020, Section 1356), is amended to read as follows:
5555 Section 1356. Exemptions - Governmental and nonprofit enti ties.
5656 There are hereby specifically exempted from the tax levied by
5757 Section 1350 et seq. of this title:
5858 1. Sale of tangible personal property or services to the United
5959 States government or to the State of Oklahoma, any political
6060 subdivision of this state or any agency of a political subdivision
6161 of this state; provided, all sales to contractors in connection with
6262 the performance of any contract with the United States government,
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8989 State of Oklahoma or any of its political subdivisions shall not be
9090 exempted from the tax levied by Section 1350 et seq. of this title,
9191 except as hereinafter provided;
9292 2. Sales of property to agents appointed by or under contract
9393 with agencies or instrumentalities of the United States government
9494 if ownership and possession of such p roperty transfers immediately
9595 to the United States government;
9696 3. Sales of property to agents appointed by or under contract
9797 with a political subdivision of this state if the sale of such
9898 property is associated with the development of a qualified federal
9999 facility, as provided in the Oklahoma Federal Facilities Development
100100 Act, and if ownership and possession of such property transfers
101101 immediately to the political subdivision or the state;
102102 4. Sales made directly by county, district or state fair
103103 authorities of this state, upon the premises of the fair authority,
104104 for the sole benefit of the fair authority or sales of admission
105105 tickets to such fairs or fair events at any location in the state
106106 authorized by county, district or state fair authorities; provided,
107107 the exemption provided by this paragraph for admission tickets to
108108 fair events shall apply only to any portion of the admission price
109109 that is retained by or distributed to the fair authority. As used
110110 in this paragraph, "fair event" shall be limited to an event held on
111111 the premises of the fair authority in conjunction with and during
112112 the time period of a county, district or state fair;
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139139 5. Sale of food in cafeterias or lunch rooms of elementary
140140 schools, high schools, colleges or universities which are opera ted
141141 primarily for teachers and pupils and are not operated primarily for
142142 the public or for profit;
143143 6. Dues paid to fraternal, religious, civic, charitable or
144144 educational societies or organizations by regular members thereof,
145145 provided, such societies or or ganizations operate under what is
146146 commonly termed the lodge plan or system, and provided such
147147 societies or organizations do not operate for a profit which inures
148148 to the benefit of any individual member or members thereof to the
149149 exclusion of other members a nd dues paid monthly or annually to
150150 privately owned scientific and educational libraries by members
151151 sharing the use of services rendered by such libraries with students
152152 interested in the study of geology, petroleum engineering or related
153153 subjects;
154154 7. Sale of tangible personal property or services to or by
155155 churches, except sales made in the course of business for profit or
156156 savings, competing with other persons engaged in the same or a
157157 similar business or sale of tangible personal property or services
158158 by an organization exempt from federal income tax pursuant to
159159 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
160160 made on behalf of or at the request of a church or churches if the
161161 sale of such property is conducted not more than once each calend ar
162162 year for a period not to exceed three (3) days by the organization
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189189 and proceeds from the sale of such property are used by the church
190190 or churches or by the organization for charitable purposes;
191191 8. The amount of proceeds received from the sale of admiss ion
192192 tickets which is separately stated on the ticket of admission for
193193 the repayment of money borrowed by any accredited state -supported
194194 college or university or any public trust of which a county in this
195195 state is the beneficiary, for the purpose of constru cting or
196196 enlarging any facility to be used for the staging of an athletic
197197 event, a theatrical production, or any other form of entertainment,
198198 edification or cultural cultivation to which entry is gained with a
199199 paid admission ticket. Such facilities includ e, but are not limited
200200 to, athletic fields, athletic stadiums, field houses, amphitheaters
201201 and theaters. To be eligible for this sales tax exemption, the
202202 amount separately stated on the admission ticket shall be a
203203 surcharge which is imposed, collected and used for the sole purpose
204204 of servicing or aiding in the servicing of debt incurred by the
205205 college or university to effect the capital improvements
206206 hereinbefore described;
207207 9. Sales of tangible personal property or services to the
208208 council organizations or similar state supervisory organizations of
209209 the Boy Scouts of America, Girl Scouts of U.S.A. and Camp Fire USA;
210210 10. Sale of tangible personal property or services to any
211211 county, municipality, rural water district, public school district,
212212 the institutions of The Oklahoma State System of Higher Education,
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239239 the Grand River Dam Authority, the Northeast Oklahoma Public
240240 Facilities Authority, the Oklahoma Municipal Power Authority, City
241241 of Tulsa-Rogers County Port Authority, Muskogee City -County Port
242242 Authority, the Oklahoma Department of Veterans Affairs, the Broken
243243 Bow Economic Development Authority, Ardmore Development Authority,
244244 Durant Industrial Authority, Oklahoma Ordnance Works Authority,
245245 Central Oklahoma Master Conservancy District, Arbuckle Master
246246 Conservancy District, Fort Cobb Master Conservancy District, Foss
247247 Reservoir Master Conservancy District, Mountain Park Master
248248 Conservancy District, Waurika Lake Master Conservancy District,
249249 Office of Management and Enterprise Services only when carrying out
250250 a public construction contract on behalf of the Oklahoma Department
251251 of Veterans Affairs or to any person with whom any of the above -
252252 named subdivisions or agencies of this state has duly entered into a
253253 public contract pursuant to law, necessary for carrying out suc h
254254 public contract or to any subcontractor to such a public contract.
255255 Any person making purchases on behalf of such subdivision or agency
256256 of this state shall certify, in writing, on the copy of the invoice
257257 or sales ticket to be retained by the vendor that the purchases are
258258 made for and on behalf of such subdivision or agency of this state
259259 and set out the name of such public subdivision or agency. Any
260260 person who wrongfully or erroneously certifies that purchases are
261261 for any of the above -named subdivisions o r agencies of this state or
262262 who otherwise violates this section shall be guilty of a misdemeanor
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289289 and upon conviction thereof shall be fined an amount equal to double
290290 the amount of sales tax involved or incarcerated for not more than
291291 sixty (60) days or both ;
292292 11. Sales of tangible personal property or services to private
293293 institutions of higher education and private elementary and
294294 secondary institutions of education accredited by the State
295295 Department of Education or registered by the State Board of
296296 Education for purposes of participating in federal programs or
297297 accredited as defined by the Oklahoma State Regents for Higher
298298 Education which are exempt from taxation pursuant to the provisions
299299 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
300300 including materials, supplies, and equipment used in the
301301 construction and improvement of buildings and other structures owned
302302 by the institutions and operated for educational purposes.
303303 Any person, firm, agency or entity making purchases on behalf of
304304 any institution, agency or subdivision in this state, shall certify
305305 in writing, on the copy of the invoice or sales ticket the nature of
306306 the purchases, and violation of this paragraph shall be a
307307 misdemeanor as set forth in paragraph 10 of this section;
308308 12. Tuition and educ ational fees paid to private institutions
309309 of higher education and private elementary and secondary
310310 institutions of education accredited by the State Department of
311311 Education or registered by the State Board of Education for purposes
312312 of participating in fede ral programs or accredited as defined by the
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339339 Oklahoma State Regents for Higher Education which are exempt from
340340 taxation pursuant to the provisions of the Internal Revenue Code, 26
341341 U.S.C., Section 501(c)(3);
342342 13. a. Sales of tangible personal property made b y:
343343 (1) a public school,
344344 (2) a private school offering instruction for grade
345345 levels kindergarten through twelfth grade,
346346 (3) a public school district,
347347 (4) a public or private school board,
348348 (5) a public or private school student group or
349349 organization,
350350 (6) a parent-teacher association or organization
351351 other than as specified in subparagraph b of this
352352 paragraph, or
353353 (7) public or private school personnel for purposes
354354 of raising funds for the benefit of a public or
355355 private school, public school district, public or
356356 private school board or public or private school
357357 student group or organization, or
358358 b. Sales of tangible personal property made by or to
359359 nonprofit parent-teacher associations or organizations
360360 exempt from taxation pursuant to the provisions of the
361361 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
362362 nonprofit local public or private school foundations
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389389 which solicit money or property in the name of any
390390 public or private school or public school district.
391391 The exemption provided by this paragraph for sales made b y a
392392 public or private school shall be limited to those public or private
393393 schools accredited by the State Department of Education or
394394 registered by the State Board of Education for purposes of
395395 participating in federal programs. Sale of tangible personal
396396 property in this paragraph shall include sale of admission tickets
397397 and concessions at athletic events;
398398 14. Sales of tangible personal property by:
399399 a. local 4-H clubs,
400400 b. county, regional or state 4 -H councils,
401401 c. county, regional or state 4 -H committees,
402402 d. 4-H leader associations,
403403 e. county, regional or state 4 -H foundations, and
404404 f. authorized 4-H camps and training centers.
405405 The exemption provided by this paragraph shall be limited to
406406 sales for the purpose of raising funds for the benefit of such
407407 organizations. Sale of tangible personal property exempted by this
408408 paragraph shall include sale of admission tickets;
409409 15. The first Seventy -five Thousand Dollars ($75,000.00) each
410410 year from sale of tickets and concessions at athletic events by each
411411 organization exempt from taxation pursuant to the provisions of the
412412 Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
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439439 16. Sales of tangible personal property or services to any
440440 person with whom the Oklahoma Tourism and Recreation Department has
441441 entered into a public c ontract and which is necessary for carrying
442442 out such contract to assist the Department in the development and
443443 production of advertising, promotion, publicity and public relations
444444 programs;
445445 17. Sales of tangible personal property or services to fire
446446 departments organized pursuant to Section 592 of Title 18 of the
447447 Oklahoma Statutes which items are to be used for the purposes of the
448448 fire department. Any person making purchases on behalf of any such
449449 fire department shall certify, in writing, on the copy of th e
450450 invoice or sales ticket to be retained by the vendor that the
451451 purchases are made for and on behalf of such fire department and set
452452 out the name of such fire department. Any person who wrongfully or
453453 erroneously certifies that the purchases are for any su ch fire
454454 department or who otherwise violates the provisions of this section
455455 shall be deemed guilty of a misdemeanor and upon conviction thereof,
456456 shall be fined an amount equal to double the amount of sales tax
457457 involved or incarcerated for not more than six ty (60) days, or both;
458458 18. Complimentary or free tickets for admission to places of
459459 amusement, sports, entertainment, exhibition, display or other
460460 recreational events or activities which are issued through a box
461461 office or other entity which is operated by a state institution of
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488488 higher education with institutional employees or by a municipality
489489 with municipal employees;
490490 19. The first Fifteen Thousand Dollars ($15,000.00) each year
491491 from sales of tangible personal property by fire departments
492492 organized pursuant to Titles Title 11, 18, or 19 of the Oklahoma
493493 Statutes for the purposes of raising funds for the benefit of the
494494 fire department. Fire departments selling tangible personal
495495 property for the purposes of raising funds shall be limited to no
496496 more than six (6) days each year to raise such funds in order to
497497 receive the exemption granted by this paragraph;
498498 20. Sales of tangible personal property or services to any Boys
499499 & Girls Clubs of America affiliate in this state which is not
500500 affiliated with the Salvatio n Army and which is exempt from taxation
501501 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
502502 Section 501(c)(3);
503503 21. Sales of tangible personal property or services to any
504504 organization, which takes court -adjudicated juveniles for purposes
505505 of rehabilitation, and which is exempt from taxation pursuant to the
506506 provisions of the Internal Revenue Code, 26 U.S.C., Section
507507 501(c)(3), provided that at least fifty percent (50%) of the
508508 juveniles served by such organization are court adjudicated and the
509509 organization receives state funds in an amount less than ten percent
510510 (10%) of the annual budget of the organization;
511511 22. Sales of tangible personal property or services to:
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538538 a. any health center as defined in Section 254b of Title
539539 42 of the United States Code,
540540 b. any clinic receiving disbursements of state monies
541541 from the Indigent Health Care Revolving Fund pursuant
542542 to the provisions of Section 66 of Title 56 of the
543543 Oklahoma Statutes,
544544 c. any community-based health center which meets all of
545545 the following criteria:
546546 (1) provides primary care services at no cost to the
547547 recipient, and
548548 (2) is exempt from taxation pursuant to the
549549 provisions of Section 501(c)(3) of the Internal
550550 Revenue Code, 26 U.S.C., Section 501(c)(3), and
551551 d. any community mental health center as defined in
552552 Section 3-302 of Title 43A of the Oklahoma Statutes;
553553 23. Dues or fees, including free or complimentary dues or fees
554554 which have a value equivalent to the charge that could have
555555 otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
556556 centers for the use of facilities and programs;
557557 24. The first Fifteen Thousand Dollars ($15,000.00) each year
558558 from sales of tangible personal property or services to or by a
559559 cultural organization established to sponsor and promote
560560 educational, charitabl e and cultural events for disadvantaged
561561 children, and which organization is exempt from taxation pursuant to
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588588 the provisions of the Internal Revenue Code, 26 U.S.C., Section
589589 501(c)(3);
590590 25. Sales of tangible personal property or services to museums
591591 or other entities which have been accredited by the American
592592 Association of Museums. Any person making purchases on behalf of
593593 any such museum or other entity shall certify, in writing, on the
594594 copy of the invoice or sales ticket to be retained by the vendor
595595 that the purchases are made for and on behalf of such museum or
596596 other entity and set out the name of such museum or other entity.
597597 Any person who wrongfully or erroneously certifies that the
598598 purchases are for any such museum or other entity or who otherwise
599599 violates the provisions of this paragraph shall be deemed guilty of
600600 a misdemeanor and, upon conviction thereof, shall be fined an amount
601601 equal to double the amount of sales tax involved or incarcerated for
602602 not more than sixty (60) days, or by both such fine an d
603603 incarceration;
604604 26. Sales of tickets for admission by any museum accredited by
605605 the American Association of Museums. In order to be eligible for
606606 the exemption provided by this paragraph, an amount equivalent to
607607 the amount of the tax which would otherwise be required to be
608608 collected pursuant to the provisions of Section 1350 et seq. of this
609609 title shall be separately stated on the admission ticket and shall
610610 be collected and used for the sole purpose of servicing or aiding in
611611 the servicing of debt incurred b y the museum to effect the
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638638 construction, enlarging or renovation of any facility to be used for
639639 entertainment, edification or cultural cultivation to which entry is
640640 gained with a paid admission ticket;
641641 27. Sales of tangible personal property or services o ccurring
642642 on or after June 1, 1995, to children 's homes which are supported or
643643 sponsored by one or more churches, members of which serve as
644644 trustees of the home;
645645 28. Sales of tangible personal property or services to the
646646 organization known as the Disabled American Veterans, Department of
647647 Oklahoma, Inc., and subordinate chapters thereof;
648648 29. Sales of tangible personal property or services to youth
649649 camps which are supported or sponsored by one or more churches,
650650 members of which serve as trustees of the organ ization;
651651 30. Transfer of tangible personal property made pursuant to
652652 Section 3226 of Title 63 of the Oklahoma Statutes by the University
653653 Hospitals Trust;
654654 31. Sales of tangible personal property or services to a
655655 municipality, county or school district pur suant to a lease or
656656 lease-purchase agreement executed between the vendor and a
657657 municipality, county or school district. A copy of the lease or
658658 lease-purchase agreement shall be retained by the vendor;
659659 32. Sales of tangible personal property or services t o any
660660 spaceport user, as defined in the Oklahoma Space Industry
661661 Development Act;
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688688 33. The sale, use, storage, consumption, or distribution in
689689 this state, whether by the importer, exporter, or another person, of
690690 any satellite or any associated launch vehicl e, including components
691691 of, and parts and motors for, any such satellite or launch vehicle,
692692 imported or caused to be imported into this state for the purpose of
693693 export by means of launching into space. This exemption provided by
694694 this paragraph shall not b e affected by:
695695 a. the destruction in whole or in part of the satellite
696696 or launch vehicle,
697697 b. the failure of a launch to occur or be successful, or
698698 c. the absence of any transfer or title to, or possession
699699 of, the satellite or launch vehicle after launch;
700700 34. The sale, lease, use, storage, consumption, or distribution
701701 in this state of any space facility, space propulsion system or
702702 space vehicle, satellite, or station of any kind possessing space
703703 flight capacity, including components thereof;
704704 35. The sale, lease, use, storage, consumption, or distribution
705705 in this state of tangible personal property, placed on or used
706706 aboard any space facility, space propulsion system or space vehicle,
707707 satellite, or station possessing space flight capacity, which is
708708 launched into space, irrespective of whether such tangible property
709709 is returned to this state for subsequent use, storage, or
710710 consumption in any manner;
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737737 36. The sale, lease, use, storage, consumption, or distribution
738738 in this state of tangible personal property mee ting the definition
739739 of "section 38 property" as defined in Sections 48(a)(1)(A) and
740740 (B)(i) of the Internal Revenue Code of 1986, that is an integral
741741 part of and used primarily in support of space flight; however,
742742 section 38 property used in support of spac e flight shall not
743743 include general office equipment, any boat, mobile home, motor
744744 vehicle, or other vehicle of a class or type required to be
745745 registered, licensed, titled, or documented in this state or by the
746746 United States government, or any other propert y not specifically
747747 suited to supporting space activity. The term "in support of space
748748 flight", for purposes of this paragraph, means the altering,
749749 monitoring, controlling, regulating, adjusting, servicing, or
750750 repairing of any space facility, space propuls ion systems or space
751751 vehicle, satellite, or station possessing space flight capacity,
752752 including the components thereof;
753753 37. The purchase or lease of machinery and equipment for use at
754754 a fixed location in this state, which is used exclusively in the
755755 manufacturing, processing, compounding, or producing of any space
756756 facility, space propulsion system or space vehicle, satellite, or
757757 station of any kind possessing space flight capacity. Provided, the
758758 exemption provided for in this paragraph shall not be allowed unless
759759 the purchaser or lessee signs an affidavit stating that the item or
760760 items to be exempted are for the exclusive use designated herein.
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787787 Any person furnishing a false affidavit to the vendor for the
788788 purpose of evading payment of any tax imposed by Se ction 1354 of
789789 this title shall be subject to the penalties provided by law. As
790790 used in this paragraph, "machinery and equipment " means "section 38
791791 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
792792 Internal Revenue Code of 1986, which is used as an integral part of
793793 the manufacturing, processing, compounding, or producing of items of
794794 tangible personal property. Such term includes parts and
795795 accessories only to the extent that the exemption thereof is
796796 consistent with the provisions of this paragr aph;
797797 38. The amount of a surcharge or any other amount which is
798798 separately stated on an admission ticket which is imposed, collected
799799 and used for the sole purpose of constructing, remodeling or
800800 enlarging facilities of a public trust having a municipality or
801801 county as its sole beneficiary;
802802 39. Sales of tangible personal property or services which are
803803 directly used in or for the benefit of a state park in this state,
804804 which are made to an organization which is exempt from taxation
805805 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
806806 Section 501(c)(3) and which is organized primarily for the purpose
807807 of supporting one or more state parks located in this state;
808808 40. The sale, lease or use of parking privileges by an
809809 institution of The Oklahoma Sta te System of Higher Education;
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836836 41. Sales of tangible personal property or services for use on
837837 campus or school construction projects for the benefit of
838838 institutions of The Oklahoma State System of Higher Education,
839839 private institutions of higher education accredited by the Oklahoma
840840 State Regents for Higher Education or any public school or school
841841 district when such projects are financed by or through the use of
842842 nonprofit entities which are exempt from taxation pursuant to the
843843 provisions of the Internal Rev enue Code, 26 U.S.C., Section
844844 501(c)(3);
845845 42. Sales of tangible personal property or services by an
846846 organization which is exempt from taxation pursuant to the
847847 provisions of the Internal Revenue Code, 26 U.S.C., Section
848848 501(c)(3), in the course of conductin g a national championship
849849 sports event, but only if all or a portion of the payment in
850850 exchange therefor would qualify as the receipt of a qualified
851851 sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
852852 Section 513(i). Sales exempted pursuant to this paragraph shall be
853853 exempt from all Oklahoma sales, use, excise and gross receipts
854854 taxes;
855855 43. Sales of tangible personal property or services to or by an
856856 organization which:
857857 a. is exempt from taxation pursuant to the provisions of
858858 the Internal Revenue Code, 26 U.S.C., Section
859859 501(c)(3),
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886886 b. is affiliated with a comprehensive university within
887887 The Oklahoma State System of Higher Education, and
888888 c. has been organized primarily for the purpose of
889889 providing education and teacher training and
890890 conducting events relating to robotics;
891891 44. The first Fifteen Thousand Dollars ($15,000.00) each year
892892 from sales of tangible personal property to or by youth athletic
893893 teams which are part of an athletic organization exempt from
894894 taxation pursuant to the provisions of the Internal Revenue Code, 26
895895 U.S.C., Section 501(c)(4), for the purposes of raising funds for the
896896 benefit of the team;
897897 45. Sales of tickets for admission to a collegiate athletic
898898 event that is held in a facility owned or operated by a municipality
899899 or a public trust of which the municipality is the sole beneficiary
900900 and that actually determines or is part of a tournament or
901901 tournament process for determining a conference tournament
902902 championship, a conference championship, or a national championship;
903903 46. Sales of tangible personal property or services to or by an
904904 organization which is exempt from taxation pursuant to the
905905 provisions of the Internal Revenue Code, 26 U.S.C., Section
906906 501(c)(3) and is operating the Oklahoma City National Memorial and
907907 Museum, an affiliate of the National Park System;
908908 47. Sales of tangible personal property or services to
909909 organizations which are exempt from federal taxation pursuant to the
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936936 provisions of Section 501(c)(3) of the Internal Revenue Code, 26
937937 U.S.C., Section 501(c)(3), t he memberships of which are limited to
938938 honorably discharged veterans, and which furnish financial support
939939 to area veterans' organizations to be used for the purpose of
940940 constructing a memorial or museum;
941941 48. Sales of tangible personal property or services on or after
942942 January 1, 2003, to an organization which is exempt from taxation
943943 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
944944 Section 501(c)(3) that is expending monies received from a private
945945 foundation grant in conjunction with expend itures of local sales tax
946946 revenue to construct a local public library;
947947 49. Sales of tangible personal property or services to a state
948948 that borders this state or any political subdivision of that state,
949949 but only to the extent that the other state or politi cal subdivision
950950 exempts or does not impose a tax on similar sales of items to this
951951 state or a political subdivision of this state;
952952 50. Effective July 1, 2005, sales of tangible personal property
953953 or services to the Career Technology Student Organizations u nder the
954954 direction and supervision of the Oklahoma Department of Career and
955955 Technology Education;
956956 51. Sales of tangible personal property to a public trust
957957 having either a single city, town or county or multiple cities,
958958 towns or counties or combination th ereof as beneficiary or
959959 beneficiaries or a nonprofit organization which is exempt from
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986986 taxation pursuant to the provisions of the Internal Revenue Code, 26
987987 U.S.C., Section 501(c)(3) for the purpose of constructing
988988 improvements to or expanding a hospital or nursing home owned and
989989 operated by any such public trust or nonprofit entity prior to July
990990 1, 2008, in counties with a population of less than one hundred
991991 thousand (100,000) persons, according to the most recent Federal
992992 Decennial Census. As used in this paragraph, "constructing
993993 improvements to or expanding " shall not mean any expense for routine
994994 maintenance or general repairs and shall require a project cost of
995995 at least One Hundred Thousand Dollars ($100,000.00). For purposes
996996 of this paragraph, sales mad e to a contractor or subcontractor that
997997 enters into a contractual relationship with a public trust or
998998 nonprofit entity as described by this paragraph shall be considered
999999 sales made to the public trust or nonprofit entity. The exemption
10001000 authorized by this paragraph shall be administered in the form of a
10011001 refund from the sales tax revenues apportioned pursuant to Section
10021002 1353 of this title and the vendor shall be required to collect the
10031003 sales tax otherwise applicable to the transaction. The purchaser
10041004 may apply for a refund of the sales tax paid in the manner
10051005 prescribed by this paragraph. Within thirty (30) days after the end
10061006 of each fiscal year, any purchaser that is entitled to make
10071007 application for a refund based upon the exempt treatment authorized
10081008 by this paragraph may file an application for refund of the sales
10091009 taxes paid during such preceding fiscal year. The Tax Commission
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10361036 shall prescribe a form for purposes of making the application for
10371037 refund. The Tax Commission shall determine whether or not the to tal
10381038 amount of sales tax exemptions claimed by all purchasers is equal to
10391039 or less than Six Hundred Fifty Thousand Dollars ($650,000.00). If
10401040 such claims are less than or equal to that amount, the Tax
10411041 Commission shall make refunds to the purchasers in the fu ll amount
10421042 of the documented and verified sales tax amounts. If such claims by
10431043 all purchasers are in excess of Six Hundred Fifty Thousand Dollars
10441044 ($650,000.00), the Tax Commission shall determine the amount of each
10451045 purchaser's claim, the total amount of al l claims by all purchasers,
10461046 and the percentage each purchaser 's claim amount bears to the total.
10471047 The resulting percentage determined for each purchaser shall be
10481048 multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
10491049 determine the amount of refu ndable sales tax to be paid to each
10501050 purchaser. The pro rata refund amount shall be the only method to
10511051 recover sales taxes paid during the preceding fiscal year and no
10521052 balance of any sales taxes paid on a pro rata basis shall be the
10531053 subject of any subseque nt refund claim pursuant to this paragraph;
10541054 52. Effective July 1, 2006, sales of tangible personal property
10551055 or services to any organization which assists, trains, educates, and
10561056 provides housing for physically and mentally handicapped persons and
10571057 which is exempt from taxation pursuant to the provisions of the
10581058 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
10591059 receives at least eighty -five percent (85%) of its annual budget
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10861086 from state or federal funds. In order to receive the benefit of the
10871087 exemption authorized by this paragraph, the taxpayer shall be
10881088 required to make payment of the applicable sales tax at the time of
10891089 sale to the vendor in the manner otherwise required by law.
10901090 Notwithstanding any other provision of the Oklahoma Uniform Tax
10911091 Procedure Code to the contrary, the taxpayer shall be authorized to
10921092 file a claim for refund of sales taxes paid that qualify for the
10931093 exemption authorized by this paragraph for a period of one (1) year
10941094 after the date of the sale transaction. The taxpayer shall be
10951095 required to provide documentation as may be prescribed by the
10961096 Oklahoma Tax Commission in support of the refund claim. The total
10971097 amount of sales tax qualifying for exempt treatment pursuant to this
10981098 paragraph shall not exceed One Hundred Seventy -five Thousand Dollars
10991099 ($175,000.00) each fiscal year. Claims for refund shall be
11001100 processed in the order in which such claims are received by the
11011101 Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
11021102 the total amount of refunds payable for a fiscal yea r, such claim
11031103 shall be barred;
11041104 53. The first Two Thousand Dollars ($2,000.00) each year of
11051105 sales of tangible personal property or services to, by, or for the
11061106 benefit of a qualified neighborhood watch organization that is
11071107 endorsed or supported by or workin g directly with a law enforcement
11081108 agency with jurisdiction in the area in which the neighborhood watch
11091109 organization is located. As used in this paragraph, "qualified
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11361136 neighborhood watch organization " means an organization that is a
11371137 not-for-profit corporation under the laws of the State of Oklahoma
11381138 that was created to help prevent criminal activity in an area
11391139 through community involvement and interaction with local law
11401140 enforcement and which is one of the first two thousand organizations
11411141 which makes applicati on to the Oklahoma Tax Commission for the
11421142 exemption after March 29, 2006;
11431143 54. Sales of tangible personal property to a nonprofit
11441144 organization, exempt from taxation pursuant to the provisions of the
11451145 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), orga nized
11461146 primarily for the purpose of providing services to homeless persons
11471147 during the day and located in a metropolitan area with a population
11481148 in excess of five hundred thousand (500,000) persons according to
11491149 the latest Federal Decennial Census. The exempt ion authorized by
11501150 this paragraph shall be applicable to sales of tangible personal
11511151 property to a qualified entity occurring on or after January 1,
11521152 2005;
11531153 55. Sales of tangible personal property or services to or by an
11541154 organization which is exempt from taxa tion pursuant to the
11551155 provisions of the Internal Revenue Code, 26 U.S.C., Section
11561156 501(c)(3) for events the principal purpose of which is to provide
11571157 funding for the preservation of wetlands and habitat for wild ducks;
11581158 56. Sales of tangible personal property or services to or by an
11591159 organization which is exempt from taxation pursuant to the
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11861186 provisions of the Internal Revenue Code, 26 U.S.C., Section
11871187 501(c)(3) for events the principal purpose of which is to provide
11881188 funding for the preservation and conservation of wild turkeys;
11891189 57. Sales of tangible personal property or services to an
11901190 organization which:
11911191 a. is exempt from taxation pursuant to the provisions of
11921192 the Internal Revenue Code, 26 U.S.C., Section
11931193 501(c)(3), and
11941194 b. is part of a network of community -based, autonomous
11951195 member organizations that meets the following
11961196 criteria:
11971197 (1) serves people with workplace disadvantages and
11981198 disabilities by providing job training and
11991199 employment services, as well as job placement
12001200 opportunities and post -employment support,
12011201 (2) has locations in the United States and at least
12021202 twenty other countries,
12031203 (3) collects donated clothing and household goods to
12041204 sell in retail stores and provides contract labor
12051205 services to business and government, and
12061206 (4) provides documentation to the Oklaho ma Tax
12071207 Commission that over seventy -five percent (75%)
12081208 of its revenues are channeled into employment,
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12351235 job training and placement programs and other
12361236 critical community services;
12371237 58. Sales of tickets made on or after September 21, 2005, and
12381238 complimentary or free tickets for admission issued on or after
12391239 September 21, 2005, which have a value equivalent to the charge that
12401240 would have otherwise been made, for admission to a professional
12411241 athletic event in which a team in the National Basketball
12421242 Association is a participant, which is held in a facility owned or
12431243 operated by a municipality, a county or a public trust of which a
12441244 municipality or a county is the sole beneficiary, and sales of
12451245 tickets made on or after July 1, 2007, and complimentary or free
12461246 tickets for admission issued on or after July 1, 2007, which have a
12471247 value equivalent to the charge that would have otherwise been made,
12481248 for admission to a professional athletic event in which a team in
12491249 the National Hockey League is a participant, which is held in a
12501250 facility owned or operated by a municipality, a county or a public
12511251 trust of which a municipality or a county is the sole beneficiary;
12521252 59. Sales of tickets for admission and complimentary or free
12531253 tickets for admission which have a value equivalent to the char ge
12541254 that would have otherwise been made to a professional sporting event
12551255 involving ice hockey, baseball, basketball, football or arena
12561256 football, or soccer. As used in this paragraph, "professional
12571257 sporting event" means an organized athletic competition bet ween
12581258 teams that are members of an organized league or association with
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12851285 centralized management, other than a national league or national
12861286 association, that imposes requirements for participation in the
12871287 league upon the teams, the individual athletes or both, and which
12881288 uses a salary structure to compensate the athletes;
12891289 60. Sales of tickets for admission to an annual event sponsored
12901290 by an educational and charitable organization of women which is
12911291 exempt from taxation pursuant to the provisions of the Internal
12921292 Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
12931293 promoting volunteerism, developing the potential of women and
12941294 improving the community through the effective action and leadership
12951295 of trained volunteers;
12961296 61. Sales of tangible personal proper ty or services to an
12971297 organization, which is exempt from taxation pursuant to the
12981298 provisions of the Internal Revenue Code, 26 U.S.C., Section
12991299 501(c)(3), and which is itself a member of an organization which is
13001300 exempt from taxation pursuant to the provisions of the Internal
13011301 Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
13021302 organization is primarily engaged in advancing the purposes of its
13031303 member organizations through fundraising, public awareness or other
13041304 efforts for the benefit of its member orga nizations, and if the
13051305 member organization is primarily engaged either in providing
13061306 educational services and programs concerning health -related diseases
13071307 and conditions to individuals suffering from such health -related
13081308 diseases and conditions or their caregi vers and family members or
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13351335 support to such individuals, or in health -related research as to
13361336 such diseases and conditions, or both. In order to qualify for the
13371337 exemption authorized by this paragraph, the member nonprofit
13381338 organization shall be required to p rovide proof to the Oklahoma Tax
13391339 Commission of its membership status in the membership organization;
13401340 62. Sales of tangible personal property or services to or by an
13411341 organization which is part of a national volunteer women 's service
13421342 organization dedicated to promoting patriotism, preserving American
13431343 history and securing better education for children and which has at
13441344 least 168,000 members in 3,000 chapters across the United States;
13451345 63. Sales of tangible personal property or services to or by a
13461346 YWCA or YMCA organization which is part of a national nonprofit
13471347 community service organization working to meet the health and social
13481348 service needs of its members across the United States;
13491349 64. Sales of tangible personal property or services to or by a
13501350 veteran's organization which is exempt from taxation pursuant to the
13511351 provisions of the Internal Revenue Code, 26 U.S.C., Section
13521352 501(c)(19) and which is known as the Veterans of Foreign Wars of the
13531353 United States, Oklahoma Chapters;
13541354 65. Sales of boxes of food by a church o r by an organization,
13551355 which is exempt from taxation pursuant to the provisions of the
13561356 Internal Revenue Code, 26 U.S.C., Section 501(c)(3). To qualify
13571357 under the provisions of this paragraph, the organization must be
13581358 organized for the primary purpose of fee ding needy individuals or to
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13851385 encourage volunteer service by requiring such service in order to
13861386 purchase food. These boxes shall only contain edible staple food
13871387 items;
13881388 66. Sales of tangible personal property or services to any
13891389 person with whom a church ha s duly entered into a construction
13901390 contract, necessary for carrying out such contract or to any
13911391 subcontractor to such a construction contract;
13921392 67. Sales of tangible personal property or services used
13931393 exclusively for charitable or educational purposes, to or by an
13941394 organization which:
13951395 a. is exempt from taxation pursuant to the provisions of
13961396 the Internal Revenue Code, 26 U.S.C., Section
13971397 501(c)(3),
13981398 b. has filed a Not-for-Profit Certificate of
13991399 Incorporation in this state, and
14001400 c. is organized for the purpose of:
14011401 (1) providing training and education to
14021402 developmentally disabled individuals,
14031403 (2) educating the community about the rights,
14041404 abilities and strengths of developmentally
14051405 disabled individuals, and
14061406 (3) promoting unity among developmentally disabled
14071407 individuals in their community and geographic
14081408 area;
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14351435 68. Sales of tangible personal property or services to any
14361436 organization which is a shelter for abused, neglected, or abandoned
14371437 children and which is exempt from taxation pursuant to the
14381438 provisions of the Internal R evenue Code, 26 U.S.C., Section
14391439 501(c)(3); provided, until July 1, 2008, such exemption shall apply
14401440 only to eligible shelters for children from birth to age twelve (12)
14411441 and after July 1, 2008, such exemption shall apply to eligible
14421442 shelters for children fr om birth to age eighteen (18);
14431443 69. Sales of tangible personal property or services to a child
14441444 care center which is licensed pursuant to the Oklahoma Child Care
14451445 Facilities Licensing Act and which:
14461446 a. possesses a 3-star rating from the Department of Human
14471447 Services Reaching for the Stars Program or a national
14481448 accreditation, and
14491449 b. allows on-site universal pre-kindergarten education to
14501450 be provided to four-year-old children through a
14511451 contractual agreement with any public school or school
14521452 district.
14531453 For the purposes of this paragraph, sales made to any person,
14541454 firm, agency or entity that has entered previously into a
14551455 contractual relationship with a child care center for construction
14561456 and improvement of buildings and other structures owned by the child
14571457 care center and operated for educational purposes shall be
14581458 considered sales made to a child care center. Any such person,
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14851485 firm, agency or entity making purchases on behalf of a child care
14861486 center shall certify, in writing, on the copy of the invoice or
14871487 sales ticket the nature of the purchase. Any such person, or person
14881488 acting on behalf of a firm, agency or entity making purchases on
14891489 behalf of a child care center in violation of this paragraph shall
14901490 be guilty of a misdemeanor and upon conviction thereof shall be
14911491 fined an amount equal to double the amount of sales tax involved or
14921492 incarcerated for not more than sixty (60) days or both;
14931493 70. a. Sales of tangible personal property to a service
14941494 organization of mothers who have children who are
14951495 serving or who have served in the military, which
14961496 service organization is exempt from taxation pursuant
14971497 to the provisions of the Internal Revenue Code, 26
14981498 U.S.C., Section 501(c)(19) and which is known as the
14991499 Blue Star Mothers of America, Inc. The exemption
15001500 provided by this paragraph shal l only apply to the
15011501 purchase of tangible personal property actually sent
15021502 to United States military personnel overseas who are
15031503 serving in a combat zone and not to any other tangible
15041504 personal property purchased by the organization.
15051505 Provided, this exemption shall not apply to any sales
15061506 tax levied by a city, town, county, or any other
15071507 jurisdiction in this state.
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15341534 b. The exemption authorized by this paragraph shall be
15351535 administered in the form of a refund from the sales
15361536 tax revenues apportioned pursuant to Sectio n 1353 of
15371537 this title, and the vendor shall be required to
15381538 collect the sales tax otherwise applicable to the
15391539 transaction. The purchaser may apply for a refund of
15401540 the state sales tax paid in the manner prescribed by
15411541 this paragraph. Within sixty (60) days a fter the end
15421542 of each calendar quarter, any purchaser that is
15431543 entitled to make application for a refund based upon
15441544 the exempt treatment authorized by this paragraph may
15451545 file an application for refund of the state sales
15461546 taxes paid during such preceding calen dar quarter.
15471547 The Tax Commission shall prescribe a form for purposes
15481548 of making the application for refund.
15491549 c. A purchaser who applies for a refund pursuant to this
15501550 paragraph shall certify that the items were actually
15511551 sent to military personnel overseas in a combat zone.
15521552 Any purchaser that applies for a refund for the
15531553 purchase of items that are not authorized for
15541554 exemption under this paragraph shall be subject to a
15551555 penalty in the amount of Five Hundred Dollars
15561556 ($500.00);
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15831583 71. Sales of food and snack items t o or by an organization
15841584 which is exempt from taxation pursuant to the provisions of the
15851585 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary
15861586 and principal purpose is providing funding for scholarships in the
15871587 medical field;
15881588 72. Sales of tangible personal property or services for use
15891589 solely on construction projects for organizations which are exempt
15901590 from taxation pursuant to the provisions of the Internal Revenue
15911591 Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
15921592 end-of-life care and access to hospice services to low -income
15931593 individuals who live in a facility owned by the organization. The
15941594 exemption provided by this paragraph applies to sales to the
15951595 organization as well as to sales to any person with whom the
15961596 organization has duly entered into a construction contract,
15971597 necessary for carrying out such contract or to any subcontractor to
15981598 such a construction contract. Any person making purchases on behalf
15991599 of such organization shall certify, in writing, on the copy of the
16001600 invoice or sales ticket to be retained by the vendor that the
16011601 purchases are made for and on behalf of such organization and set
16021602 out the name of such organization. Any person who wrongfully or
16031603 erroneously certifies that purchases are for any of the above -named
16041604 organizations or who otherwise violates this section shall be guilty
16051605 of a misdemeanor and upon conviction thereof shall be fined an
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16321632 amount equal to double the amount of sales tax involved or
16331633 incarcerated for not more than sixty (60) days or both;
16341634 73. Sales of tickets for admission to events held by
16351635 organizations exempt from taxation pursuant to the provisions of the
16361636 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
16371637 organized for the purpose of supporting general hospitals licensed
16381638 by the State Departmen t of Health;
16391639 74. Sales of tangible personal property or services:
16401640 a. to a foundation which is exempt from taxation pursuant
16411641 to the provisions of the Internal Revenue Code, 26
16421642 U.S.C., Section 501(c)(3) and which raises tax -
16431643 deductible contributions in suppo rt of a wide range of
16441644 firearms-related public interest activities of the
16451645 National Rifle Association of America and other
16461646 organizations that defend and foster Second Amendment
16471647 rights, and
16481648 b. to or by a grassroots fundraising program for sales
16491649 related to events to raise funds for a foundation
16501650 meeting the qualifications of subparagraph a of this
16511651 paragraph;
16521652 75. Sales by an organization or entity which is exempt from
16531653 taxation pursuant to the provisions of the Internal Revenue Code, 26
16541654 U.S.C., Section 501(c)(3) which are related to a fundraising event
16551655 sponsored by the organization or entity when the event does not
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16821682 exceed any five (5) consecutive days and when the sales are not in
16831683 the organization's or the entity's regular course of business.
16841684 Provided, the exempt ion provided in this paragraph shall be limited
16851685 to tickets sold for admittance to the fundraising event and items
16861686 which were donated to the organization or entity for sale at the
16871687 event;
16881688 76. Effective November 1, 2017, sales of tangible personal
16891689 property or services to an organization which is exempt from
16901690 taxation pursuant to the provisions of the Internal Revenue Code, 26
16911691 U.S.C., Section 501(c)(3) and operates as a collaborative model
16921692 which connects community agencies in one location to serve
16931693 individuals and families affected by violence and where victims have
16941694 access to services and advocacy at no cost to the victim;
16951695 77. Effective July 1, 2018, sales of tangible personal property
16961696 or services to or by an association which is exempt from taxation
16971697 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
16981698 Section 501(c)(19) and which is known as the National Guard
16991699 Association of Oklahoma;
17001700 78. Effective July 1, 2018, sales of tangible personal property
17011701 or services to or by an association which is exem pt from taxation
17021702 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
17031703 Section 501(c)(4) and which is known as the Marine Corps League of
17041704 Oklahoma;
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17311731 79. Sales of tangible personal property or services to the
17321732 American Legion, whether the purch ase is made by the entity
17331733 chartered by the United States Congress or is an entity organized
17341734 under the laws of this or another state pursuant to the authority of
17351735 the national American Legion organization; and
17361736 80. Sales of tangible personal property or serv ices to or by an
17371737 organization which is:
17381738 a. exempt from taxation pursuant to the provisions of the
17391739 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
17401740 b. verified with a letter from the MIT Fab Foundation as
17411741 an official member of the Fab Lab Network in
17421742 compliance with the Fab Charter, and
17431743 c. able to provide documentation that its primary and
17441744 principal purpose is to provide community access to
17451745 advanced 21st century manufacturing and digital
17461746 fabrication tools for science, technology,
17471747 engineering, art and math (STEAM) learning skills,
17481748 developing inventions, creating and sustaining
17491749 businesses and producing personalized products ; and
17501750 81. Sales of tangible personal property or services to or by an
17511751 organization which is:
17521752 a. exempt from taxation pursuant to the pro visions of the
17531753 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
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17801780 b. certified as a Comprehensive Community Addiction
17811781 Recovery Center by the Oklahoma Department of Mental
17821782 Health and Substance Abuse Services,
17831783 c. substantially funded through the Oklahoma D epartment
17841784 of Mental Health and Substance Abuse Services, and
17851785 d. accredited and certified by The Joint Commission .
17861786 SECTION 2. This act shall become effective November 1, 2021.
17871787
17881788 58-1-6970 AQH 12/15/20