OK
Oklahoma House Bill HB3137

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3137 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 2nd Session of the 58th Legislature (2022 )
3131
3232 HOUSE BILL 3137 By: Kendrix
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation ; amending 68
4141 O.S. 2021, Section 1356, which relates to sales tax
4242 exemptions; exempting sales to certain nonprofit
4343 entities that construct or remodel affordable
4444 housing; and providing an effecti ve date.
4545
4646
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4949 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5050 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356 , is
5151 amended to read as follows:
5252 Section 1356. Exemptions - Governmental and nonprofit entities.
5353 There are hereby specifically exempted from the tax levied by
5454 Section 1350 et seq. of this title:
5555 1. Sale of tangible personal property or services to the United
5656 States government or to the State of Oklahoma, any political
5757 subdivision of this state or any agency of a political subdivision
5858 of this state; provided, all sales to contractors in connection with
5959 the performance of any contract with the United States government ,
6060 State of Oklahoma or any of its political subdivisions shall not be
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8787 exempted from the tax levied by Section 1350 et seq. of this title,
8888 except as hereinafter provided;
8989 2. Sales of property to agents appointed by or under contract
9090 with agencies or instru mentalities of the United States government
9191 if ownership and possession of such property transfers immediately
9292 to the United States government;
9393 3. Sales of property to agents appointed by or under contract
9494 with a political subdivision of this state if the sale of such
9595 property is associated with the development of a qualified federal
9696 facility, as provided in the Oklahoma Federal Facilities Development
9797 Act, and if ownership and possession of such property transfers
9898 immediately to the political subdivision o r the state;
9999 4. Sales made directly by county, district or state fair
100100 authorities of this state, upon the premises of the fair authority,
101101 for the sole benefit of the fair authority or sales of admission
102102 tickets to such fairs or fair events at any location in the state
103103 authorized by county, district or state fair authorities; provided,
104104 the exemption provided by this paragraph for admission tickets to
105105 fair events shall apply only to any portion of the admission price
106106 that is retained by or distributed to the fair authority. As used
107107 in this paragraph, "fair event" shall be limited to an event held on
108108 the premises of the fair authority in conjunction with and during
109109 the time period of a county, district or state fair;
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136136 5. Sale of food in cafeterias or lunchroo ms of elementary
137137 schools, high schools, colleges or universities which are operated
138138 primarily for teachers and pupils and are not operated primarily for
139139 the public or for profit;
140140 6. Dues paid to fraternal, religious, civic, charitable or
141141 educational societies or organizations by regular members thereof,
142142 provided, such societies or organizations operat e under what is
143143 commonly termed the lodge plan or system, and provided such
144144 societies or organizations do not operate for a profit which inures
145145 to the benefit of any individual member or members thereof to the
146146 exclusion of other members and dues paid month ly or annually to
147147 privately owned scientific and educational libraries by members
148148 sharing the use of services rendered by such libraries with students
149149 interested in the study of geology, petroleum engineering or related
150150 subjects;
151151 7. Sale of tangible perso nal property or services to or by
152152 churches, except sales made in the course of business for profit or
153153 savings, competing with other persons engaged in the sam e or a
154154 similar business or sale of tangible personal property or services
155155 by an organization exemp t from federal income tax pursuant to
156156 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
157157 made on behalf of or at the request of a church or c hurches if the
158158 sale of such property is conducted not more than once each calendar
159159 year for a period not to exceed three (3) days by the organization
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186186 and proceeds from the sale of such property are used by the church
187187 or churches or by the organization for charitable purposes;
188188 8. The amount of proceeds received from the sale of admission
189189 tickets which is separately stated on the ticket of admission for
190190 the repayment of money borrowed by any accredited state -supported
191191 college or university or any public trus t of which a county in this
192192 state is the beneficiary, for the purpose of constructing or
193193 enlarging any facility to be used for the staging of an athletic
194194 event, a theatrical production, or any other form of entertainment,
195195 edification or cultural cultivatio n to which entry is gained with a
196196 paid admission ticket. Such facilities include, but are not lim ited
197197 to, athletic fields, athletic stadiums, field houses, amphitheaters
198198 and theaters. To be eligible for this sales tax exemption, the
199199 amount separately sta ted on the admission ticket shall be a
200200 surcharge which is imposed, collected and used for the sole purpose
201201 of servicing or aiding in the servicing of debt incurred by the
202202 college or university to effect the capital improvements
203203 hereinbefore described;
204204 9. Sales of tangible personal property or services to the
205205 council organizations or similar state supe rvisory organizations of
206206 the Boy Scouts of America, Girl Scouts of U.S.A. and Camp Fire USA;
207207 10. Sale of tangible personal property or services to any
208208 county, municipality, rural water district, public school district,
209209 city-county library system, the inst itutions of The Oklahoma State
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236236 System of Higher Education, the Grand River Dam Authority, the
237237 Northeast Oklahoma Public Facilities Authority, the Oklahoma
238238 Municipal Power Authority, City of Tulsa -Rogers County Port
239239 Authority, Muskogee City -County Port Authority, the Oklahoma
240240 Department of Veterans Affairs, the Broken Bow Economic Development
241241 Authority, Ardmore Development Authority, Durant Industrial
242242 Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
243243 Master Conservancy District, Arbuckle Master Conservancy District,
244244 Fort Cobb Master Conservancy District, Foss Reservoir Master
245245 Conservancy District, Mountain Park Master Conservancy District,
246246 Waurika Lake Master Conservancy District, the Office of Management
247247 and Enterprise Services only when carryin g out a public construction
248248 contract on behalf of the Oklahoma Department of Veterans Affairs,
249249 and effective July 1, 2022, the University Hospitals Trust, or to
250250 any person with whom any of the above -named subdivisions or agencies
251251 of this state has duly ent ered into a public contract pursuant to
252252 law, necessary for carrying out such public contract or to any
253253 subcontractor to such a public contract. Any person ma king
254254 purchases on behalf of such subdivision or agency of this state
255255 shall certify, in writing, on the copy of the invoice or sales
256256 ticket to be retained by the vendor that the purchases are made for
257257 and on behalf of such subdivision or agency of this stat e and set
258258 out the name of such public subdivision or agency. Any person who
259259 wrongfully or erroneo usly certifies that purchases are for any of
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286286 the above-named subdivisions or agencies of this state or who
287287 otherwise violates this section shall be guilty of a misdemeanor and
288288 upon conviction thereof shall be fined an amount equal to double the
289289 amount of sales tax involved or incarcerated for not more than sixty
290290 (60) days or both;
291291 11. Sales of tangible personal property or services to private
292292 institutions of higher education and private elementary and
293293 secondary institutions of education accredited by the S tate
294294 Department of Education or registered by the State Board of
295295 Education for purposes of participating in federal programs or
296296 accredited as defined by the O klahoma State Regents for Higher
297297 Education which are exempt from taxation pursuant to the provisio ns
298298 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including
299299 materials, supplies and equipment used in the construction and
300300 improvement of building s and other structures owned by the
301301 institutions and operated for educational purposes.
302302 Any person, firm, agency or entity making purchases on behalf of
303303 any institution, agency or subdivision in this state, shall certify
304304 in writing, on the copy of the invo ice or sales ticket the nature of
305305 the purchases, and violation of this paragraph shall be a
306306 misdemeanor as set forth in paragraph 10 of this section;
307307 12. Tuition and educational fees paid to private institutions
308308 of higher education and private elementary and secondary
309309 institutions of education accredited by the State Department of
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336336 Education or registe red by the State Board of Education for purposes
337337 of participating in federal programs or accredited as defined by the
338338 Oklahoma State Regents for Higher Educat ion which are exempt from
339339 taxation pursuant to the provisions of the Internal Revenue Code, 26
340340 U.S.C., Section 501(c)(3);
341341 13. a. Sales of tangible personal property made by:
342342 (1) a public school,
343343 (2) a private school offering instruction for grade
344344 levels kindergarten through twelfth grade,
345345 (3) a public school district,
346346 (4) a public or private school boa rd,
347347 (5) a public or private school student group or
348348 organization,
349349 (6) a parent-teacher association or organization
350350 other than as specified in subparagraph b o f this
351351 paragraph, or
352352 (7) public or private school personnel for purposes
353353 of raising funds for the benefit of a public or
354354 private school, public school district, public or
355355 private school board or public or private school
356356 student group or organization, or
357357 b. Sales of tangible personal property made by or to
358358 nonprofit parent-teacher associations or organi zations
359359 exempt from taxation pursuant to the provisions of the
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386386 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
387387 nonprofit local public or private school f oundations
388388 which solicit money or property in the name of any
389389 public or private school or public s chool district.
390390 The exemption provided by this paragraph for sales made by a
391391 public or private school shall be limited to those public or private
392392 schools accredited by the State Department of Education or
393393 registered by the State Board of Education for purp oses of
394394 participating in federal programs. Sale of tangible personal
395395 property in this paragraph shall include sale of admission tickets
396396 and concessions at at hletic events;
397397 14. Sales of tangible personal property by:
398398 a. local 4-H clubs,
399399 b. county, regional or state 4-H councils,
400400 c. county, regional or state 4 -H committees,
401401 d. 4-H leader associations,
402402 e. county, regional or state 4 -H foundations, and
403403 f. authorized 4-H camps and training centers.
404404 The exemption provided by this paragraph shall be limited to
405405 sales for the purpose of raising funds for the benefit of such
406406 organizations. Sale of tangible personal property exempted by this
407407 paragraph shall include sale of admission tickets;
408408 15. The first Seventy -five Thousand Dollars ($75,000.00) each
409409 year from sale of tickets and concessions at athletic events by each
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436436 organization exempt from taxation pursuant to the provisions of the
437437 Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
438438 16. Sales of tangible personal property or services to any
439439 person with whom the Oklahoma Tourism and Recreation Department has
440440 entered into a public contract and which is necessary for carrying
441441 out such contract to assist the Departmen t in the development and
442442 production of advertising, promotion, publicity and public relations
443443 programs;
444444 17. Sales of tangible personal property or services to fire
445445 departments organized pursuant to Section 592 of Title 18 of the
446446 Oklahoma Statutes which it ems are to be used for the purposes of the
447447 fire department. Any person making purchases on behalf of any such
448448 fire department shall certify, in writing, on the copy of the
449449 invoice or sales ticket to be retained by the vendor that the
450450 purchases are made fo r and on behalf of such fire department and set
451451 out the name of such fire department. Any person who wrongfully or
452452 erroneously certifies that the purchases are for any such fire
453453 department or who otherwise violates the provisions of this section
454454 shall be deemed guilty of a misdemeanor and upon conviction thereof,
455455 shall be fined an amount equal to doub le the amount of sales tax
456456 involved or incarcerated for not more than sixty (60) days, or both;
457457 18. Complimentary or free tickets for admission to places of
458458 amusement, sports, entertainment, exhibition, display or other
459459 recreational events or activities w hich are issued through a box
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486486 office or other entity which is operated by a state institution of
487487 higher education with institutional employees or by a municip ality
488488 with municipal employees;
489489 19. The first Fifteen Thousand Dollars ($15,000.00) each year
490490 from sales of tangible personal property by fire departments
491491 organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
492492 for the purposes of raising fund s for the benefit of the fire
493493 department. Fire departments selling tangible personal property for
494494 the purposes of raising funds shall be limited to no more than six
495495 (6) days each year to raise such funds in order to receive the
496496 exemption granted by this p aragraph;
497497 20. Sales of tangible personal property or services to any Boys
498498 & Girls Clubs of Americ a affiliate in this state which is not
499499 affiliated with the Salvation Army and which is exempt from taxation
500500 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
501501 Section 501(c)(3);
502502 21. Sales of tangible personal property or services to any
503503 organization, which takes court -adjudicated juveniles for purposes
504504 of rehabilitation, and which is exempt from taxation pursuant to the
505505 provisions of the Inter nal Revenue Code, 26 U.S.C., Section
506506 501(c)(3), provided that at least fifty percent (50%) of the
507507 juveniles served by such organization are court adjudicated and the
508508 organization receives state funds in an amount less than ten percent
509509 (10%) of the annual b udget of the organization;
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536536 22. Sales of tangible personal property or services to:
537537 a. any health center as defined in Section 254b of Title
538538 42 of the United States Code,
539539 b. any clinic receiving disbursements of state monies
540540 from the Indigent Health Care R evolving Fund pursuant
541541 to the provisions of Section 66 of Title 56 of the
542542 Oklahoma Statutes,
543543 c. any community-based health center which meets all of
544544 the following criteria:
545545 (1) provides primary care services at no cost to the
546546 recipient, and
547547 (2) is exempt from taxation pursuant to the
548548 provisions of Section 501(c)(3) of the Internal
549549 Revenue Code, 26 U.S. C., Section 501(c)(3), and
550550 d. any community mental health center as defined in
551551 Section 3-302 of Title 43A of the Oklahoma Statutes;
552552 23. Dues or fees includin g free or complimentary dues or fees
553553 which have a value equivalent to the charge that could have
554554 otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
555555 centers for the use of facilities and programs;
556556 24. The first Fifteen Thousand Dollars ($ 15,000.00) each year
557557 from sales of tangible personal property or services to or by a
558558 cultural organization established to sponsor and promote
559559 educational, charitable and cultural events for disadvantaged
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586586 children, and which organization is exempt from taxa tion pursuant to
587587 the provisions of the Internal Revenue Code, 26 U.S.C., Section
588588 501(c)(3);
589589 25. Sales of tangible personal property or services to museums
590590 or other entities which have been accredited by the American
591591 Association of Museums. Any person mak ing purchases on behalf of
592592 any such museum or other entity shall certify, in writing, on the
593593 copy of the invoice or sales ticket to be retained by the vendor
594594 that the purchases are made for and on behalf of such museum or
595595 other entity and set out the name of such museum or other entity.
596596 Any person who wrongfully or erroneously certifies that the
597597 purchases are for any such museum or other entity or who otherwise
598598 violates the provisions of this paragraph shall be deemed guilty of
599599 a misdemeanor and, upon conv iction thereof, shall be fined an amount
600600 equal to double the amount of sales tax involved or incar cerated for
601601 not more than sixty (60) days, or by both such fine and
602602 incarceration;
603603 26. Sales of tickets for admission by any museum accredited by
604604 the American Association of Museums. In order to be eligible for
605605 the exemption provided by this paragraph, a n amount equivalent to
606606 the amount of the tax which would otherwise be required to be
607607 collected pursuant to the provisions of Section 1350 et seq. of this
608608 title shall be separately stated on the admission ticket and shall
609609 be collected and used for the sole purpose of servicing or aiding in
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636636 the servicing of debt incurred by the museum to effect the
637637 construction, enlarging or renovation of any facility to be used for
638638 entertainment, edification or cultural cultivation to which entry is
639639 gained with a paid admiss ion ticket;
640640 27. Sales of tangible personal property or services occurring
641641 on or after June 1, 1995, to children 's homes which are supported or
642642 sponsored by one or more churches, members of which serve as
643643 trustees of the home;
644644 28. Sales of tangible person al property or services to the
645645 organization known as the Disabled American Veterans, Department of
646646 Oklahoma, Inc., and subordinate chapters thereof;
647647 29. Sales of tangible personal property or services to youth
648648 camps which are supported or sponsored by one or more churches,
649649 members of which serve as trustees of the organization;
650650 30. a. Until July 1, 2022, transfer of tangible personal
651651 property made pursuant to Section 3226 of Title 63 of
652652 the Oklahoma Statutes by the University Hospitals
653653 Trust, and
654654 b. Effective July 1, 2022, transfer of tangible personal
655655 property or services to or by:
656656 (1) the University Hospitals Trust created pursuant
657657 to Section 3224 of Title 6 3 of the Oklahoma
658658 Statutes, or
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685685 (2) nonprofit entities which are exempt from taxation
686686 pursuant to the provisions of the Internal
687687 Revenue Code of the United States, 26 U.S.C.,
688688 Section 501(c)(3), which have entered into a
689689 joint operating agreement with the U niversity
690690 Hospitals Trust;
691691 31. Sales of tangible personal property or services to a
692692 municipality, county or school district pursuant to a lease or
693693 lease-purchase agreement executed between the vendor and a
694694 municipality, county or school district. A copy of the lease or
695695 lease-purchase agreement shall be retained by the vendor;
696696 32. Sales of tangible p ersonal property or services to any
697697 spaceport user, as defined in the Oklahoma Space Industry
698698 Development Act;
699699 33. The sale, use, storage, consumption or dis tribution in this
700700 state, whether by the importer, exporter or another person, of any
701701 satellite or any associated launch vehicle including components of,
702702 and parts and motors for, any such satellite or launch vehicle,
703703 imported or caused to be imported into this state for the purpose of
704704 export by means of launching into space. This exemption provided by
705705 this paragraph shall not be affected by:
706706 a. the destruction in whole or in part of the satellite
707707 or launch vehicle,
708708 b. the failure of a launch to occur or be successful, or
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735735 c. the absence of any transfer or title to, or possession
736736 of, the satellite or lau nch vehicle after launch;
737737 34. The sale, lease, use, storage, consumption or distribution
738738 in this state of any space facility, space propulsion system or
739739 space vehicle, satellite or station of any kind possessing space
740740 flight capacity including components thereof;
741741 35. The sale, lease, use, storage, consumption or distribution
742742 in this state of tangible personal property, placed on or used
743743 aboard any space facil ity, space propulsion system or space vehicle,
744744 satellite, or station possessing space flight capac ity, which is
745745 launched into space, irrespective of whether such tangible property
746746 is returned to this state for subsequent use, storage, or
747747 consumption in any manner;
748748 36. The sale, lease, use, storage, consumption or distribution
749749 in this state of tangible personal property meeting the definition
750750 of "section 38 property" as defined in Sections 48(a)(1)(A) and
751751 (B)(i) of the Internal Revenue Code of 1986, that is an integral
752752 part of and used primarily in support of space flight; however,
753753 section 38 property u sed in support of space flight shall not
754754 include general office equipment, any boat, mobile home, motor
755755 vehicle or other vehicle of a class or type required t o be
756756 registered, licensed, titled or documented in this state or by the
757757 United States government, or any other property not specifically
758758 suited to supporting space activity. The term "in support of space
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785785 flight", for purposes of this paragraph, means the altering,
786786 monitoring, controlling, regulating, adjusting, servicing or
787787 repairing of any space faci lity, space propulsion systems or space
788788 vehicle, satellite or station possessing space flight capacity
789789 including the components thereof;
790790 37. The purchase or lease of machinery and equipment for use at
791791 a fixed location in this state, which is used exclusiv ely in the
792792 manufacturing, processing, compounding or producing of any space
793793 facility, space propulsion system or space vehicle, satellite or
794794 station of any kind possessing space flight capacity. Provided, the
795795 exemption provided for in this paragraph shall not be allowed unless
796796 the purchaser or lessee signs an affidavit stating that the item or
797797 items to be exempted are for the exclusive use designated herein.
798798 Any person furnishing a false affidavit to the vendor for the
799799 purpose of evading payment of any ta x imposed by Section 1354 of
800800 this title shall be subject to the penalties provided by law. As
801801 used in this paragraph, "machinery and equipment " means "section 38
802802 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
803803 Internal Revenue Code of 1986, which is used as an integral part of
804804 the manufacturing, processing, compounding or producing of items of
805805 tangible personal property. Such term includes part s and
806806 accessories only to the extent that the exemption thereof is
807807 consistent with the provisions of this paragraph;
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834834 38. The amount of a surcharge or any other amount which is
835835 separately stated on an admission ticket which is imposed, collected
836836 and used for the sole purpose of constructing, remodeling or
837837 enlarging facilities of a public trust having a municipality or
838838 county as its sole beneficiary;
839839 39. Sales of tangible personal property or services which are
840840 directly used in or for the benefit of a state park in this state,
841841 which are made to an organization which is exempt from taxation
842842 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
843843 Section 501(c)(3) and which is organized primarily for the purpose
844844 of supporting one or more state park s located in this state;
845845 40. The sale, lease or use of parking privileges by an
846846 institution of The Oklahoma State System of Higher Education;
847847 41. Sales of tangible personal property or services for use on
848848 campus or school construction projects for the be nefit of
849849 institutions of The Oklahoma State System of Higher Education,
850850 private institutions of hi gher education accredited by the Oklahoma
851851 State Regents for Higher Education or any public school or school
852852 district when such projects are financed by or thr ough the use of
853853 nonprofit entities which are exempt from taxation pursuant to the
854854 provisions of the Internal Revenue Code, 26 U.S.C., Section
855855 501(c)(3);
856856 42. Sales of tangible personal property or services by an
857857 organization which is exempt from taxation p ursuant to the
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884884 provisions of the Internal Revenue Code, 26 U.S.C., Section
885885 501(c)(3), in the cours e of conducting a national championship
886886 sports event, but only if all or a portion of the payment in
887887 exchange therefor would qualify as the receipt of a quali fied
888888 sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
889889 Section 513(i). Sales exe mpted pursuant to this paragraph shall be
890890 exempt from all Oklahoma sales, use, excise and gross receipts
891891 taxes;
892892 43. Sales of tangible personal property or se rvices to or by an
893893 organization which:
894894 a. is exempt from taxation pursuant to the provisions of
895895 the Internal Revenue Code, 26 U.S.C., Section
896896 501(c)(3),
897897 b. is affiliated with a comprehensive university within
898898 The Oklahoma State System of Higher Education, and
899899 c. has been organized primarily for the purpose of
900900 providing education and teacher training an d
901901 conducting events relating to robotics;
902902 44. The first Fifteen Thousand Dollars ($15,000.00) each year
903903 from sales of tangible personal property to or by you th athletic
904904 teams which are part of an athletic organization exempt from
905905 taxation pursuant to the provisions of the Internal Revenue Code, 26
906906 U.S.C., Section 501(c)(4), for the purposes of raising funds for the
907907 benefit of the team;
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934934 45. Sales of tickets fo r admission to a collegiate athletic
935935 event that is held in a facility owned or operated by a munic ipality
936936 or a public trust of which the municipality is the sole beneficiary
937937 and that actually determines or is part of a tournament or
938938 tournament process for determining a conference tournament
939939 championship, a conference championship, or a national champio nship;
940940 46. Sales of tangible personal property or services to or by an
941941 organization which is exempt from taxation pursuant to the
942942 provisions of the Internal Revenue Code, 26 U.S.C., Section
943943 501(c)(3) and is operating the Oklahoma City National Memorial an d
944944 Museum, an affiliate of the National Park System;
945945 47. Sales of tangible personal property or services to
946946 organizations which are exempt from federal taxati on pursuant to the
947947 provisions of Section 501(c)(3) of the Internal Revenue Code, 26
948948 U.S.C., Section 501(c)(3), the memberships of which are limited to
949949 honorably discharged veterans, and which furnish financial support
950950 to area veterans' organizations to be used for the purpose of
951951 constructing a memorial or museum;
952952 48. Sales of tangible personal propert y or services on or after
953953 January 1, 2003, to an organization which is exempt from taxation
954954 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C. ,
955955 Section 501(c)(3) that is expending monies received from a private
956956 foundation grant in conjuncti on with expenditures of local sales tax
957957 revenue to construct a local public library;
958958
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984984 49. Sales of tangible personal property or services to a state
985985 that borders this state or any political subdivision of that state,
986986 but only to the extent that the other s tate or political subdivision
987987 exempts or does not impose a tax on similar sales of items to this
988988 state or a political subdivision of this state;
989989 50. Effective July 1, 2005, sales of tangible personal property
990990 or services to the Career Technology Student O rganizations under the
991991 direction and supervision of the Oklahoma Department of Career and
992992 Technology Education;
993993 51. Sales of tangible personal property to a public trust
994994 having either a single city, town or county or multiple cities,
995995 towns or counties or combination thereof as beneficiary or
996996 beneficiaries or a nonprofit organization which is exempt from
997997 taxation pursuant to the provisions of the Internal Reven ue Code, 26
998998 U.S.C., Section 501(c)(3) for the purpose of constructing
999999 improvements to or expanding a hospital or nursing home owned and
10001000 operated by any such public trust or nonprofit entity prior to July
10011001 1, 2008, in counties with a population of less than one hundred
10021002 thousand (100,000) persons, according to the most recent Federal
10031003 Decennial Census. As used in this paragraph, "constructing
10041004 improvements to or expanding " shall not mean any expense for routine
10051005 maintenance or general repairs and shall require a project cost of
10061006 at least One Hundred Thousand Dollars ($100,000.00). For purposes
10071007 of this paragraph, sales made to a contractor or subcontractor that
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10341034 enters into a contractual relationship with a public trust or
10351035 nonprofit entity as described by this para graph shall be considered
10361036 sales made to the public trust or nonprofit entity. The exemption
10371037 authorized by this paragraph shall be administered in the form of a
10381038 refund from the sales tax revenues apportioned pursuant to Section
10391039 1353 of this title and the v endor shall be required to collect the
10401040 sales tax otherwise applicable to the transaction. The pur chaser
10411041 may apply for a refund of the sales tax paid in the manner
10421042 prescribed by this paragraph. Within thirty (30) days after the end
10431043 of each fiscal year, an y purchaser that is entitled to make
10441044 application for a refund based upon the exempt treatment auth orized
10451045 by this paragraph may file an application for refund of the sales
10461046 taxes paid during such preceding fiscal year. The Tax Commission
10471047 shall prescribe a form for purposes of making the application for
10481048 refund. The Tax Commission shall determine whether or not the total
10491049 amount of sales tax exemptions claimed by all purchasers is equal to
10501050 or less than Six Hundred Fifty Thousand Dollars ($650,000.00). If
10511051 such claims are less than or equal to that amount, the Tax
10521052 Commission shall make refunds to the purcha sers in the full amount
10531053 of the documented and verified sales tax amounts. If such claims by
10541054 all purchasers are in excess of Six Hundred Fifty Thousand Dollar s
10551055 ($650,000.00), the Tax Commission shall determine the amount of each
10561056 purchaser's claim, the total amount of all claims by all purchasers,
10571057 and the percentage each purchaser 's claim amount bears to the total.
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10841084 The resulting percentage determined for each p urchaser shall be
10851085 multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
10861086 determine the amount of refundable sales tax to be paid to each
10871087 purchaser. The pro rata refund amount shall be the only method to
10881088 recover sales taxes paid during the prece ding fiscal year and no
10891089 balance of any sales taxes paid on a pro rata basis shall be the
10901090 subject of any subsequent refund claim pursuant to this paragraph;
10911091 52. Effective July 1, 2006, sales of tangible personal property
10921092 or services to any organization whi ch assists, trains, educates, and
10931093 provides housing for physically and mentally handicapped persons and
10941094 which is exempt from taxation pursuant to the provisions of the
10951095 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
10961096 receives at least eighty -five percent (85%) of its annual budget
10971097 from state or federal funds. In order to receive the benefit of the
10981098 exemption authorized by this paragraph, the taxpayer shall be
10991099 required to make payment of the applicable sales tax at the time of
11001100 sale to the vendor i n the manner otherwise required by law.
11011101 Notwithstanding any other provision of the Oklahoma Unifo rm Tax
11021102 Procedure Code to the contrary, the taxpayer shall be authorized to
11031103 file a claim for refund of sales taxes paid that qualify for the
11041104 exemption authorized by this paragraph for a period of one (1) year
11051105 after the date of the sale transaction. The tax payer shall be
11061106 required to provide documentation as may be prescribed by the
11071107 Oklahoma Tax Commission in support of the refund claim. The total
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11341134 amount of sales tax qualifying for exempt treatment pursuant to this
11351135 paragraph shall not exceed One Hundred Seve nty-five Thousand Dollars
11361136 ($175,000.00) each fiscal year. Claims for refund shall be
11371137 processed in the order in which such claims are received by the
11381138 Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
11391139 the total amount of refunds payable fo r a fiscal year, such claim
11401140 shall be barred;
11411141 53. The first Two Thousand Dollars ($2,000.00) each year of
11421142 sales of tangible personal property or services to, by, or for the
11431143 benefit of a qualified neighborhood watch organization that is
11441144 endorsed or supporte d by or working directly with a law enforcement
11451145 agency with jurisdiction in the area in which the neighborhood watch
11461146 organization is located. As used in this paragraph, "qualified
11471147 neighborhood watch organization " means an organization that is a
11481148 not-for-profit corporation under the laws of the State of Oklahoma
11491149 that was created to help prevent criminal activity in an area
11501150 through community involvement and inter action with local law
11511151 enforcement and which is one of the first two thousand organizations
11521152 which makes application to the Oklahoma Tax Commission for the
11531153 exemption after March 29, 2006;
11541154 54. Sales of tangible personal property to a nonprofit
11551155 organization, exempt from taxation pursuant to the provisions of the
11561156 Internal Revenue Code, 26 U.S.C., Section 5 01(c)(3), organized
11571157 primarily for the purpose of providing services to homeless persons
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11841184 during the day and located in a metropolitan area with a population
11851185 in excess of five hundred thousand (500,000) persons according to
11861186 the latest Federal Decennial Censu s. The exemption authorized by
11871187 this paragraph shall be applicable to sales of tangible personal
11881188 property to a qualified entity occurring on or after January 1,
11891189 2005;
11901190 55. Sales of tangible personal property or services to or by an
11911191 organization which is ex empt from taxation pursuant to the
11921192 provisions of the Internal Revenue Code, 26 U.S.C., Section
11931193 501(c)(3) for events the principal purpose of which is to provi de
11941194 funding for the preservation of wetlands and habitat for wild ducks;
11951195 56. Sales of tangible per sonal property or services to or by an
11961196 organization which is exempt from taxation pursuant to the
11971197 provisions of the Internal Revenue Code, 26 U.S.C., Section
11981198 501(c)(3) for events the principal purpose of which is to provide
11991199 funding for the preservation and conservation of wild turkeys;
12001200 57. Sales of tangible personal property or services to an
12011201 organization which:
12021202 a. is exempt from taxation pursuant to the provi sions of
12031203 the Internal Revenue Code, 26 U.S.C., Section
12041204 501(c)(3), and
12051205 b. is part of a network of c ommunity-based, autonomous
12061206 member organizations that meets the following
12071207 criteria:
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12341234 (1) serves people with workplace disadvantages and
12351235 disabilities by providin g job training and
12361236 employment services, as well as job placement
12371237 opportunities and post -employment support,
12381238 (2) has locations in the United States and at least
12391239 twenty other countries,
12401240 (3) collects donated clothing and household goods to
12411241 sell in retail stores and provides contract labor
12421242 services to business and government, and
12431243 (4) provides documentation to the Oklahoma Tax
12441244 Commission that over seventy -five percent (75%)
12451245 of its revenues are channeled into employment,
12461246 job training and placement programs and ot her
12471247 critical community services;
12481248 58. Sales of tickets made on or after September 21, 2005, and
12491249 complimentary or free tickets for admission issued on or after
12501250 September 21, 2005, which have a value equivalent to the charge that
12511251 would have otherwise been ma de, for admission to a professional
12521252 athletic event in which a team in the National Basketball
12531253 Association is a participant, which is held in a facility owned or
12541254 operated by a municipality, a county or a public trust of which a
12551255 municipality or a county is t he sole beneficiary, and sales of
12561256 tickets made on or after July 1, 2007, and complimentary or free
12571257 tickets for admission issued on or after July 1, 2007, which have a
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12841284 value equivalent to the charge that would have otherwise been made,
12851285 for admission to a pr ofessional athletic event in which a team in
12861286 the National Hockey League is a participant, which is held in a
12871287 facility owned or operated by a municipality, a county or a public
12881288 trust of which a municipality or a county is the sole beneficiary;
12891289 59. Sales of tickets for admission and complimentary or free
12901290 tickets for admission which have a value equivale nt to the charge
12911291 that would have otherwise been made to a professional sporting event
12921292 involving ice hockey, baseball, basketball, football or arena
12931293 football, or soccer. As used in this paragraph, "professional
12941294 sporting event" means an organized athletic c ompetition between
12951295 teams that are members of an organized league or association with
12961296 centralized management, other than a national league or national
12971297 association, that imposes requirements for participation in the
12981298 league upon the teams, the individual athl etes or both, and which
12991299 uses a salary structure to compensate the athletes;
13001300 60. Sales of tickets for admission to an annual event sponsored
13011301 by an educational and charitable organization of women which is
13021302 exempt from taxation pursuant to the provisions of the Internal
13031303 Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
13041304 promoting volunteerism, developing the potential of women and
13051305 improving the community through the effective action and leadership
13061306 of trained volunteers;
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13331333 61. Sales of tangible p ersonal property or services to an
13341334 organization, which is exempt from taxation pursuant to the
13351335 provisions of the Internal Revenue Code, 26 U.S.C., Section
13361336 501(c)(3), and which is itself a member of an organization which is
13371337 exempt from taxation pursuant to the provisions of the Internal
13381338 Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
13391339 organization is primarily engaged in advancing the purposes of it s
13401340 member organizations through fundraising, public awareness or other
13411341 efforts for the benefit of i ts member organizations, and if the
13421342 member organization is primarily engaged either in providing
13431343 educational services and programs concerning health -related diseases
13441344 and conditions to individuals suffering from such health -related
13451345 diseases and conditions o r their caregivers and family members or
13461346 support to such individuals, or in health -related research as to
13471347 such diseases and conditions, or both. In order to qualify for the
13481348 exemption authorized by this paragraph, the member nonprofit
13491349 organization shall be required to provide proof to the Oklahoma Tax
13501350 Commission of its membership status in the membership organization;
13511351 62. Sales of tangible personal property or services to or by an
13521352 organization which is part of a national volunteer women 's service
13531353 organization dedicated to promoting patriotism, preserving American
13541354 history and securing better education for children and which has at
13551355 least 168,000 members in 3,000 chapters across the United States;
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13821382 63. Sales of tangible personal property or services to or by a
13831383 YWCA or YMCA organization which is part of a national nonprofit
13841384 community service organization working to meet the health and social
13851385 service needs of its mem bers across the United States;
13861386 64. Sales of tangible personal property or services to or by a
13871387 veteran's organization which is exempt from taxation pursuant to the
13881388 provisions of the Internal Revenue Code, 26 U.S.C., Section
13891389 501(c)(19) and which is known as the Veterans of Foreign Wars of the
13901390 United States, Oklahoma Chapters;
13911391 65. Sales of boxes of food by a church or by an organization,
13921392 which is exempt from taxation pursuant to the provisions of the
13931393 Internal Revenue Code, 26 U.S.C., Section 501(c)(3). To q ualify
13941394 under the provisions of this paragraph, the organization must be
13951395 organized for the primary purpose of feeding needy individuals or to
13961396 encourage volunteer service by requiring such service in order to
13971397 purchase food. These boxes shall only contain ed ible staple food
13981398 items;
13991399 66. Sales of tangible personal property or services to any
14001400 person with whom a church has duly entered into a construction
14011401 contract, necessary for carrying out such contract or to any
14021402 subcontractor to such a construction contract;
14031403 67. Sales of tangible personal property or services used
14041404 exclusively for charitable or educational purposes, to or by an
14051405 organization which:
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14321432 a. is exempt from taxation pursuant to the provisions of
14331433 the Internal Revenue Code, 26 U.S.C., Section
14341434 501(c)(3),
14351435 b. has filed a Not-for-Profit Certificate of
14361436 Incorporation in this state, and
14371437 c. is organized for the purpose of:
14381438 (1) providing training and education to
14391439 developmentally disabled individuals,
14401440 (2) educating the community about the rights,
14411441 abilities and strengths of developmentally
14421442 disabled individuals, and
14431443 (3) promoting unity among developmentally disabl ed
14441444 individuals in their community and geographic
14451445 area;
14461446 68. Sales of tangible personal property or services to any
14471447 organization which is a shelter for abused, neglected, or abandoned
14481448 children and which is exempt from taxation pursuant to the
14491449 provisions of the Internal Revenue Code, 26 U.S.C., Section
14501450 501(c)(3); provided, until July 1, 2008, such exemption shall apply
14511451 only to eligible shelters for children from birth to age twelve (12)
14521452 and after July 1, 2008, such exemption shall apply to eligible
14531453 shelters for children from birth to age eighteen (18);
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14801480 69. Sales of tangible personal property or services to a child
14811481 care center which is licensed pursuant to the Okl ahoma Child Care
14821482 Facilities Licensing Act and which:
14831483 a. possesses a 3-star rating from the Departm ent of Human
14841484 Services Reaching for the Stars Program or a national
14851485 accreditation, and
14861486 b. allows on-site universal prekindergarten education to
14871487 be provided to four-year-old children through a
14881488 contractual agreement with any public school or school
14891489 district.
14901490 For the purposes of this paragraph, sales made to any person,
14911491 firm, agency or entity that has entered previously into a
14921492 contractual relationship with a child care center for construction
14931493 and improvement of buildings and other structures owned by the child
14941494 care center and operated for educational purposes shall be
14951495 considered sales made to a child care center. Any such person,
14961496 firm, agency or entity making purch ases on behalf of a child care
14971497 center shall certify, in writing, on the copy of the invoice or
14981498 sales ticket the nature of the purchase. Any such person, or person
14991499 acting on behalf of a firm, agency or entity making purchases on
15001500 behalf of a child care cent er in violation of this paragraph shall
15011501 be guilty of a misdemeanor and upon conviction thereof sha ll be
15021502 fined an amount equal to double the amount of sales tax involved or
15031503 incarcerated for not more than sixty (60) days or both;
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15301530 70. a. Sales of tangible per sonal property to a service
15311531 organization of mothers who have children who are
15321532 serving or who have served in the military, which
15331533 service organization is exempt from taxation pursuant
15341534 to the provisions of the Internal Revenue Code, 26
15351535 U.S.C., Section 501(c)( 19) and which is known as the
15361536 Blue Star Mothers of America, Inc. The exemption
15371537 provided by this paragraph shall only apply to the
15381538 purchase of tangible personal property actually sent
15391539 to United States military personnel overseas who are
15401540 serving in a combat zone and not to any other tangible
15411541 personal property purchased by the organization.
15421542 Provided, this exemption shall not apply to any sales
15431543 tax levied by a city, town, county, or any other
15441544 jurisdiction in this state.
15451545 b. The exemption authorized by this par agraph shall be
15461546 administered in the form of a refund from the sales
15471547 tax revenues apportioned pursu ant to Section 1353 of
15481548 this title, and the vendor shall be required to
15491549 collect the sales tax otherwise applicable to the
15501550 transaction. The purchaser may apply for a refund of
15511551 the state sales tax paid in the manner prescribed by
15521552 this paragraph. Within sixt y (60) days after the end
15531553 of each calendar quarter, any purchaser that is
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15801580 entitled to make application for a refund based upon
15811581 the exempt treatment authorized by this paragraph may
15821582 file an application for refund of the state sales
15831583 taxes paid during such pr eceding calendar quarter.
15841584 The Tax Commission shall prescribe a form for purposes
15851585 of making the application for refund.
15861586 c. A purchaser who applies for a refun d pursuant to this
15871587 paragraph shall certify that the items were actually
15881588 sent to military personnel overseas in a combat zone.
15891589 Any purchaser that applies for a refund for the
15901590 purchase of items that are not authorized for
15911591 exemption under this paragraph shal l be subject to a
15921592 penalty in the amount of Five Hundred Dollars
15931593 ($500.00);
15941594 71. Sales of food and snack items to or by an organization
15951595 which is exempt from taxation pursuant to the provisions of the
15961596 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whos e primary
15971597 and principal purpose is providing funding for scholarships in the
15981598 medical field;
15991599 72. Sales of tangible personal property or services for use
16001600 solely on construction projects for organizations which are exempt
16011601 from taxation pursuant to the provis ions of the Internal Revenue
16021602 Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
16031603 end-of-life care and access to hospice services to low -income
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16301630 individuals who live in a facility owned by the organization. The
16311631 exemption provided by this parag raph applies to sales to the
16321632 organization as well as to sales to any person with whom the
16331633 organization has duly entered into a construction contract,
16341634 necessary for carrying out such contract or to any subcontractor to
16351635 such a construction contract. Any per son making purchases on behalf
16361636 of such organization shall certify, in writing, on the copy of the
16371637 invoice or sales ticket to be retained by the vendor that the
16381638 purchases are made for and on behalf of such organization and set
16391639 out the name of such organizat ion. Any person who wrongfully or
16401640 erroneously certifies that purchases are for any of the above -named
16411641 organizations or who otherwise violates this section shall be guilty
16421642 of a misdemeanor and upon conviction thereof shall be fined an
16431643 amount equal to doubl e the amount of sales tax involved or
16441644 incarcerated for not more than sixty (60) days or both;
16451645 73. Sales of tickets for admission to events held by
16461646 organizations exempt from taxation pursuant to the provisions of the
16471647 Internal Revenue Code, 26 U.S.C., Secti on 501(c)(3) that are
16481648 organized for the purpose of supporting general hospitals licensed
16491649 by the State Department of Health;
16501650 74. Sales of tangible personal property or services:
16511651 a. to a foundation which is exempt from taxation pursuant
16521652 to the provisions of the Internal Revenue Code, 26
16531653 U.S.C., Section 501(c)(3) and which raises tax -
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16801680 deductible contribut ions in support of a wide range of
16811681 firearms-related public interest activities of the
16821682 National Rifle Association of America and other
16831683 organizations that defen d and foster Second Amendment
16841684 rights, and
16851685 b. to or by a grassroots fundraising program for sales
16861686 related to events to raise funds for a foundation
16871687 meeting the qualifications of subparagraph a of this
16881688 paragraph;
16891689 75. Sales by an organization or entity which is exempt from
16901690 taxation pursuant to the provisions of the Internal Revenue Code, 26
16911691 U.S.C., Section 501(c)(3) which are related to a fundraising event
16921692 sponsored by the organization or entity when the event does not
16931693 exceed any five (5) consecutive days and when the sales are not in
16941694 the organization's or the entity's regular course of business.
16951695 Provided, the exemption provided in this paragraph shall be limited
16961696 to tickets sold for admittance to the fundraising event and items
16971697 which were donated to the organ ization or entity for sale at the
16981698 event;
16991699 76. Effective November 1, 2017, sales of tangible person al
17001700 property or services to an organization which is exempt from
17011701 taxation pursuant to the provisions of the Internal Revenue Code, 26
17021702 U.S.C., Section 501(c)(3) and operates as a collaborative model
17031703 which connects community agencies in one location to serve
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17301730 individuals and families affected by violence and where victims have
17311731 access to services and advocacy at no cost to the victim;
17321732 77. Effective July 1, 2018, sa les of tangible personal property
17331733 or services to or by an association which is exempt from taxatio n
17341734 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
17351735 Section 501(c)(19) and which is known as the National Guard
17361736 Association of Oklahoma;
17371737 78. Effective July 1, 2018, sales of tangible personal property
17381738 or services to or by an association which is exempt from taxation
17391739 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
17401740 Section 501(c)(4) and which is known as the Marine Corps Lea gue of
17411741 Oklahoma;
17421742 79. Sales of tangible personal property or services to the
17431743 American Legion, whet her the purchase is made by the entity
17441744 chartered by the United States Congress or is an entity organized
17451745 under the laws of this or another state pursuant to t he authority of
17461746 the national American Legion organization;
17471747 80. Sales of tangible personal propert y or services to or by an
17481748 organization which is:
17491749 a. exempt from taxation pursuant to the provisions of the
17501750 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) ,
17511751 b. verified with a letter from the MIT Fab Foundation as
17521752 an official member of the Fab Lab Netwo rk in
17531753 compliance with the Fab Charter, and
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17801780 c. able to provide documentation that its primary and
17811781 principal purpose is to provide community access to
17821782 advanced 21st century manufacturing and digital
17831783 fabrication tools for science, technology,
17841784 engineering, art and math (STEAM) learning skills,
17851785 developing inventions, creating and sustaining
17861786 businesses and producing personalized products;
17871787 81. Effective November 1, 2 021, sales of tangible personal
17881788 property or services used solely for construction and remodeling
17891789 projects to an organization which is exempt from taxation pursuant
17901790 to the provisions of the Internal Revenue Code, 26 U.S.C., Section
17911791 501(c)(3), and which meet s the following requirements:
17921792 a. its primary purpose is to construct or remodel and
17931793 sell affordable housing and provide homeownership
17941794 education to residents of Oklahoma that have an income
17951795 that is below one hundred percent (100%) of the Family
17961796 Median Income guidelines as defined by the U.S.
17971797 Department of Housing and Urban Development,
17981798 b. it conducts its activities in a manner that serves
17991799 public or charitable purposes, rather than commercial
18001800 purposes,
18011801 c. it receives funding and revenue and charges fees in a
18021802 manner that does not incentivize it or its employees
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18291829 to act other than in the best interests of it s
18301830 clients, and
18311831 d. it compensates its employees in a manner that does not
18321832 incentivize employees to act other than in the best
18331833 interests of its clients;
18341834 82. Sales of tangible personal property or services used solely
18351835 for construction and remodeling project s to an organization which is
18361836 exempt from taxation pursuant to the provisions of the Internal
18371837 Revenue Code, 26 U.S.C., Section 501(c)(3), and which meets the
18381838 following requirements:
18391839 a. its primary purpose is to construct or remodel
18401840 affordable housing,
18411841 b. it conducts its activities in a manner that serves
18421842 public or charitable purposes, rather than commercial
18431843 purposes,
18441844 c. it receives funding and revenue and charg es fees in a
18451845 manner that does not incentivize it or its employees
18461846 to act other than in the best i nterests of its
18471847 clients, and
18481848 d. it compensates its employees in a manner that does not
18491849 incentivize employees to act other than in the best
18501850 interests of its cli ents;
18511851 83. Effective November 1, 2021, sales of tangible personal
18521852 property or services to a nonpr ofit entity, organized pursuant to
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18791879 Oklahoma law before January 1, 2022, exempt from federal income
18801880 taxation pursuant to Section 501(c) of the Internal Revenue Code of
18811881 1986, as amended, the principal functions of which are to provide
18821882 assistance to natural p ersons following a disaster, with program
18831883 emphasis on repair or restoration to single -family residential
18841884 dwellings or the construction of a replacement single -family
18851885 residential dwelling. As used in this paragraph, "disaster" means
18861886 damage to property with or without accompanying injury to persons
18871887 from heavy rain, high winds, tornadic winds, drought, wildfire,
18881888 snow, ice, geologic disturbances, explosions, chemic al accidents or
18891889 spills and other events causing damage to property on a large scale.
18901890 For purposes of this paragraph, an entity that expended at least
18911891 seventy-five percent (75%) of its funds on the restoration to
18921892 single-family housing following a disaster, including related
18931893 general and administrative expenses, shall be eligible for the
18941894 exemption authorized by this paragraph; and
18951895 83. 84. Until July 1, 2022, sales of tangible personal property
18961896 or services for use in a clinical practice or medical facility
18971897 operated by an organization which is exempt from taxation pursuant
18981898 to the provisions of the Interna l Revenue Code of the United States,
18991899 26 U.S.C., Section 501(c)(3), and which has entered into a joint
19001900 operating agreement with the University Hospitals Trust c reated
19011901 pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The
19021902 exemption provided by this paragraph shall be limited to the
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19291929 purchase of tangible personal property and services for use in
19301930 clinical practices or medical facilities acquired or leas ed by the
19311931 organization from the University Hospitals Authority, University
19321932 Hospitals Trust, or th e University of Oklahoma on or after June 1,
19331933 2021.
19341934 SECTION 2. This act shall become effective November 1, 2022.
19351935
19361936 58-2-9407 AQH 01/10/22