Revenue and taxation; sales tax exemption; effective date.
Impact
The inclusion of this exemption for nonprofit organizations will likely encourage the development of affordable housing projects by allowing these entities to reduce their tax burden when purchasing materials and services necessary for construction and remodeling activities. Proponents argue this change will significantly aid nonprofits in their mission to provide essential housing services, especially for lower-income residents. By alleviating sales tax on essential materials, nonprofits can allocate more resources towards their programs and services.
Summary
House Bill 3137 aims to amend Section 1356 of Oklahoma's sales tax exemptions to include tangible personal property and services sold to certain nonprofit entities engaged in constructing or remodeling affordable housing. This legislation specifically focuses on those organizations that serve public or charitable purposes and ensures the nonprofit's funding practices align with the objective of acting in the best interest of clients. The bill is set to take effect on November 1, 2022, upon approval.
Contention
Debate surrounding HB 3137 centers on the implications of extending tax exemptions to additional nonprofit sectors. Critics may question the potential loss of state revenue from sales taxes dedicated to public services. Furthermore, there may be concerns about the criteria for qualifying nonprofits, ensuring they truly serve charitable purposes. Stakeholders must balance the financial needs of state government with the pivotal role of nonprofits in addressing housing shortages in Oklahoma.
Sales tax exemption; providing exemption for OSU Medical Authority and Trust and OSU Veterinary Authority and Trust to extend to entities entered into public contracts. Effective date. Emergency.
Revenue and taxation; sales tax exemption; nonprofit entities; limitation on gross revenues; exception for alcohol and tobacco; effective date; emergency.