Oklahoma 2022 Regular Session

Oklahoma House Bill HB3349 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 3349 By: McCall, Wallace, McDugle,
4		-	Phillips, and West (Kevin)
5		-	of the House
	1	+
	2	+
	3	+	ENGR. S. A. TO ENGR. H. B. NO. 3349 Page 1 1
	4	+	2
	5	+	3
	6	+	4
	7	+	5
	8	+	6
	9	+	7
	10	+	8
	11	+	9
	12	+	10
	13	+	11
	14	+	12
	15	+	13
	16	+	14
	17	+	15
	18	+	16
	19	+	17
	20	+	18
	21	+	19
	22	+	20
	23	+	21
	24	+	22
	25	+	23
	26	+	24
	27	+
	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
	31	+	BILL NO. 3349 By: McCall, Wallace, McDugle
	32	+	and Phillips of the House
	33	+
	34	+	and
	35	+
	36	+	Treat of the Senate
	37	+
	38	+
	39	+
	40	+
	41	+
	42	+	[ revenue and taxation - providing for zero rate of
	43	+	state sales tax on food and food ingredients -
	44	+	effective date –
	45	+	emergency ]
	46	+
	47	+
	48	+
	49	+
	50	+	AMENDMENT NO. 1. Page 1, strike the enacting clause
	51	+
	52	+
	53	+	Passed the Senate the 27th day of April, 2022.
	54	+
	55	+
	56	+
	57	+	Presiding Officer of the Senate
	58	+
	59	+
	60	+	Passed the House of Representatives the ____ day of __________,
	61	+	2022.
	62	+
	63	+
	64	+
	65	+	Presiding Officer of the House
	66	+	of Representatives
	67	+
	68	+	ENGR. H. B. NO. 3349 Page 1 1
	69	+	2
	70	+	3
	71	+	4
	72	+	5
	73	+	6
	74	+	7
	75	+	8
	76	+	9
	77	+	10
	78	+	11
	79	+	12
	80	+	13
	81	+	14
	82	+	15
	83	+	16
	84	+	17
	85	+	18
	86	+	19
	87	+	20
	88	+	21
	89	+	22
	90	+	23
	91	+	24
	92	+
	93	+	ENGROSSED HOUSE
	94	+	BILL NO. 3349 By: McCall, Wallace, McDugle
	95	+	and Phillips of the House
6	96
7	97		and
8	98
9	99		Treat of the Senate
10	100
11	101
12	102
13	103
14	104
15	105
16		-	An Act relating to public funds; creating the
17		-	Statewide Recovery Fund; establishing fund
18		-	characteristics; limi ting appropriations and transfer
19		-	authority; requiring certain deposits of certain
20		-	monies; providing exception ; directing deposits of
21		-	certain interest and income to certain fund;
22		-	providing for codification; and declaring an
23		-	emergency.
	106	+
	107	+	[ revenue and taxation - providing for zero rate of
	108	+	state sales tax on food and food ingredients -
	109	+	effective date -
	110	+	emergency ]
24	111
25	112
26	113
27	114
28		-	SUBJECT: Public funds
	115	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	116	+	SECTION 1. AMENDATORY 68 O.S. 2021, Se ction 1352, is
	117	+	amended to read as follows:
	118	+	Section 1352. As used in the Oklahoma Sales Tax Code:
	119	+	1. "Alcoholic beverages" shall mean beverages that are suitable
	120	+	for human consumption and contain one -half of one percent (0.5%) or
	121	+	more of alcohol by volume ;
	122	+	2. "Bundled transaction" means the retail sale of two or more
	123	+	products, except real property and services to real property, where
	124	+	the products are otherwise distinct and identifiable, and the
	125	+	products are sold for one nonitemized price. A "bundled
29	126
30		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	127	+	ENGR. H. B. NO. 3349 Page 2 1
	128	+	2
	129	+	3
	130	+	4
	131	+	5
	132	+	6
	133	+	7
	134	+	8
	135	+	9
	136	+	10
	137	+	11
	138	+	12
	139	+	13
	140	+	14
	141	+	15
	142	+	16
	143	+	17
	144	+	18
	145	+	19
	146	+	20
	147	+	21
	148	+	22
	149	+	23
	150	+	24
31	151
32		-	SECTION 1. NEW LAW A new section of law to be codified
33		-	in the Oklahoma Statutes as Section 255 of Title 62, unless there is
34		-	created a duplication in numbering, reads as follows:
	152	+	transaction" does not include the sale of any products in which the
	153	+	sales price varies, or is negotiable, based on the selection by the
	154	+	purchaser of the products included in the transaction. As used in
	155	+	this paragraph:
	156	+	a. "distinct and identifiable products " does not include:
	157	+	(1) packaging such as containers, boxes, sacks, bags,
	158	+	and bottles, or other materials such as wrapping,
	159	+	labels, tags, and instruction guides, that
	160	+	accompany the retail sale of the products and are
	161	+	incidental or immaterial to the retail sal e
	162	+	thereof, including but not limited to, grocery
	163	+	sacks, shoeboxes, dry cle aning garment bags and
	164	+	express delivery envelopes and boxes,
	165	+	(2) a product provided free of charge with the
	166	+	required purchase of another product. A product
	167	+	is provided free of charg e if the sales price of
	168	+	the product purchased does not vary depending on
	169	+	the inclusion of the product provided free of
	170	+	charge, or
	171	+	(3) items included in the definition of gross
	172	+	receipts or sales price, pursuant to this
	173	+	section,
	174	+	b. "one nonitemized price " does not include a price th at
	175	+	is separately identified by product on binding sales
35	176
36		-	A. There is hereby created in the State Treasury a special fund
37		-	to be designated the "Statewide Recovery Fund". Said fund shall be
38		-	subject to legislative appropriation or transfer as provided by law
39		-	and shall consist of :
	177	+	ENGR. H. B. NO. 3349 Page 3 1
	178	+	2
	179	+	3
	180	+	4
	181	+	5
	182	+	6
	183	+	7
	184	+	8
	185	+	9
	186	+	10
	187	+	11
	188	+	12
	189	+	13
	190	+	14
	191	+	15
	192	+	16
	193	+	17
	194	+	18
	195	+	19
	196	+	20
	197	+	21
	198	+	22
	199	+	23
	200	+	24
40	201
41		-	1. All such monies as the Legislature may direct to be
42		-	appropriated or transferred to said fund; and
	202	+	or other supporting sales-related documentation made
	203	+	available to the customer in paper or electronic form
	204	+	including, but not limited to an invoice, bill of
	205	+	sale, receipt, contract, service agreement, lease
	206	+	agreement, periodic notice of rates and se rvices, rate
	207	+	card, or price list,
	208	+	A transaction that otherwi se meets the definition of a bundled
	209	+	transaction shall not be considered a bundled transaction if it is:
	210	+	(1) the retail sale of tangible personal p roperty and
	211	+	a service where the tangible personal property is
	212	+	essential to the use of the service, and is
	213	+	provided exclusively in connection with the
	214	+	service, and the true object of the transaction
	215	+	is the service,
	216	+	(2) the retail sale of services where one service is
	217	+	provided that is essential to the use or receipt
	218	+	of a second service and the first service is
	219	+	provided exclusively in connection with the
	220	+	second service and the true object of the
	221	+	transaction is the second service,
	222	+	(3) a transaction that include s taxable products and
	223	+	nontaxable products and th e purchase price or
	224	+	sales price of the taxable products is d e
	225	+	minimis. For purposes of this subdivision, "de
43	226
44		-	2. All such monies received by the state after the effective
45		-	date of this act pursuant to the American Rescue Plan Act of 2021,
46		-	Public Law No. 117-2, Section 604 "Coronavirus Capital Projects ENR. H. B. NO. 3349 Page 2
47		-	Fund" and Section 9901 "Coronavirus State and Local Recovery Funds ",
48		-	less and except the funds dedic ated to the Nonentitlement Units of
49		-	Local Government as described in the American Rescue Plan Act of
50		-	2021.
	227	+	ENGR. H. B. NO. 3349 Page 4 1
	228	+	2
	229	+	3
	230	+	4
	231	+	5
	232	+	6
	233	+	7
	234	+	8
	235	+	9
	236	+	10
	237	+	11
	238	+	12
	239	+	13
	240	+	14
	241	+	15
	242	+	16
	243	+	17
	244	+	18
	245	+	19
	246	+	20
	247	+	21
	248	+	22
	249	+	23
	250	+	24
51	251
52		-	B. Notwithstanding any pr ovision of law to the contrary, all
53		-	interest and income der ived from deposits to the Statewide Recovery
54		-	Fund shall be credited to the Statewi de Recovery Fund.
	252	+	minimis" means the seller's purchase price or
	253	+	sales price of taxable pro ducts is ten percent
	254	+	(10%) or less of the total purchase price or
	255	+	sales price of the bundled products. Sellers
	256	+	shall use either the p urchase price or the sales
	257	+	price of the products to determine if the taxable
	258	+	products are de minimis. Sellers may not use a
	259	+	combination of the pur chase price and sales price
	260	+	of the products to de termine if the taxable
	261	+	products are de minimis. Sellers sha ll use the
	262	+	full term of a service contract to determine if
	263	+	the taxable products are de minimis, or
	264	+	(4) the retail sale of exempt tangible personal
	265	+	property and taxable tangible personal property
	266	+	where:
	267	+	(a) the transaction includes food and food
	268	+	ingredients, drugs, durable medical
	269	+	equipment, mobility enhancing equipment,
	270	+	over-the-counter drugs, prosthetic devices
	271	+	or medical supplies, and
	272	+	(b) the seller's purchase price or sales price
	273	+	of the taxable tangible personal property is
	274	+	fifty percent (50%) or less of the total
	275	+	purchase price or sales price of the bundled
55	276
56		-	SECTION 2. It being immediately necessary for the preserv ation
	277	+	ENGR. H. B. NO. 3349 Page 5 1
	278	+	2
	279	+	3
	280	+	4
	281	+	5
	282	+	6
	283	+	7
	284	+	8
	285	+	9
	286	+	10
	287	+	11
	288	+	12
	289	+	13
	290	+	14
	291	+	15
	292	+	16
	293	+	17
	294	+	18
	295	+	19
	296	+	20
	297	+	21
	298	+	22
	299	+	23
	300	+	24
	301	+
	302	+	tangible personal property. Sellers may not
	303	+	use a combination of the purchase price and
	304	+	sales price of the tangible personal
	305	+	property when making the fifty percent (50%)
	306	+	determination for a transacti on;
	307	+	2. 3. "Business" means any activity engaged in or caused to be
	308	+	engaged in by any person with the object of gain, bene fit, or
	309	+	advantage, either direct or indirect;
	310	+	3. 4. "Candy" shall mean a preparation of sugar, honey or other
	311	+	natural or artificial s weeteners in combination with chocolate,
	312	+	fruits, nuts or other ingredients or flavorings in the form of bars,
	313	+	drops or pieces. Candy shall not inc lude any preparation containing
	314	+	flour or requiring refrigeration;
	315	+	5. "Commission" or "Tax Commission" means the Oklahoma Tax
	316	+	Commission;
	317	+	4. 6. "Computer" means an electronic device that accepts
	318	+	information in digital or similar f orm and manipulates it fo r a
	319	+	result based on a sequence of instructions;
	320	+	5. 7. "Computer software" means a set of coded instructions
	321	+	designed to cause a "computer" or automatic data processing
	322	+	equipment to perform a task;
	323	+	6. 8. "Consumer" or "user" means a person to whom a taxab le
	324	+	sale of tangible personal property is made or to whom a taxable
	325	+	service is furnished. "Consumer" or "user" includes all contractors
	326	+
	327	+	ENGR. H. B. NO. 3349 Page 6 1
	328	+	2
	329	+	3
	330	+	4
	331	+	5
	332	+	6
	333	+	7
	334	+	8
	335	+	9
	336	+	10
	337	+	11
	338	+	12
	339	+	13
	340	+	14
	341	+	15
	342	+	16
	343	+	17
	344	+	18
	345	+	19
	346	+	20
	347	+	21
	348	+	22
	349	+	23
	350	+	24
	351	+
	352	+	to whom a taxable sale of materials, supplies, equipment, or other
	353	+	tangible personal property i s made or to whom a taxab le service is
	354	+	furnished to be used or consumed in the performance of any contract;
	355	+	7. 9. "Contractor" means any person who performs any
	356	+	improvement upon real property and who, as a necessary and
	357	+	incidental part of performing such improvement, incorporates
	358	+	tangible personal property belonging to or purch ased by the person
	359	+	into the real property being improved;
	360	+	8. 10. "Dietary supplements" shall mean any product, other than
	361	+	tobacco, intended to supplement the diet that:
	362	+	a. contains one or more of the follow ing dietary
	363	+	ingredients:
	364	+	(1) a vitamin,
	365	+	(2) a mineral,
	366	+	(3) an herb or other botanical,
	367	+	(4) an amino acid,
	368	+	(5) a dietary substance to supplement the diet by
	369	+	increasing the total dietary intake, or
	370	+	(6) a concentrate, metabolite, cons tituent, extract,
	371	+	or combination of any ingredient described in
	372	+	divisions (1) through (5) of this subparagraph,
	373	+	b. is intended for ingestion in tablet, capsule, powder,
	374	+	softgel, gelcap, or liquid form, or, if not intended
	375	+	for ingestion in such form, is not represented as
	376	+
	377	+	ENGR. H. B. NO. 3349 Page 7 1
	378	+	2
	379	+	3
	380	+	4
	381	+	5
	382	+	6
	383	+	7
	384	+	8
	385	+	9
	386	+	10
	387	+	11
	388	+	12
	389	+	13
	390	+	14
	391	+	15
	392	+	16
	393	+	17
	394	+	18
	395	+	19
	396	+	20
	397	+	21
	398	+	22
	399	+	23
	400	+	24
	401	+
	402	+	conventional food and is not represented for use as a
	403	+	sole item of a meal or of the diet, and
	404	+	c. is required to be lab eled as a dietary supplement,
	405	+	identifiable by the label and as required pursuant to
	406	+	Section 101.36 of Title 21 of the Code of Federal
	407	+	Regulations;
	408	+	11. "Drug" means a compound, substance or prepar ation, and any
	409	+	component of a compound, substance or prepara tion:
	410	+	a. recognized in the official United States
	411	+	Pharmacopoeia, official Homeopathic Pharmacopoeia of
	412	+	the United States, or official National Form ulary, and
	413	+	supplement to any of them,
	414	+	b. intended for use in the diagnosis, cure, mitigation,
	415	+	treatment, or prevention of disease, or
	416	+	c. intended to affect the structure or any function of
	417	+	the body;
	418	+	9. 12. "Electronic" means relating to technology having
	419	+	electrical, digital, magnetic, wireless, optical, electromagnetic,
	420	+	or similar capabilities;
	421	+	10. 13. "Established place of business " means the location at
	422	+	which any person regularly engages in, conducts, or operates a
	423	+	business in a continuous manner for an y length of time, that is open
	424	+	to the public during the hours customary to such business, in which
	425	+	a stock of merchandise for resale is maintained, and which is not
	426	+
	427	+	ENGR. H. B. NO. 3349 Page 8 1
	428	+	2
	429	+	3
	430	+	4
	431	+	5
	432	+	6
	433	+	7
	434	+	8
	435	+	9
	436	+	10
	437	+	11
	438	+	12
	439	+	13
	440	+	14
	441	+	15
	442	+	16
	443	+	17
	444	+	18
	445	+	19
	446	+	20
	447	+	21
	448	+	22
	449	+	23
	450	+	24
	451	+
	452	+	exempted by law from attachment, execution, or other species of
	453	+	forced sale barring any sat isfaction of any delinquent tax liability
	454	+	accrued under the Oklahoma Sales Tax Code;
	455	+	11. 14. "Fair authority" means:
	456	+	a. any county, municipality, school district, public
	457	+	trust or any other political subdivision of this
	458	+	state, or
	459	+	b. any not-for-profit corporation acting pursuant to an
	460	+	agency, operating or management agreement which has
	461	+	been approved or authorized by the governing body of
	462	+	any of the entities specified in subparagraph a of
	463	+	this paragraph which conduct, operate or prod uce a
	464	+	fair commonly understood to be a county, district or
	465	+	state fair;
	466	+	12. 15. "Food and food ingredients" shall mean substances,
	467	+	whether in liquid, concentrated, solid, frozen, dried or dehydrated
	468	+	form, that are sold for ingestion or chewing by humans an d are
	469	+	consumed for their taste or nutritional value. Food and food
	470	+	ingredients shall not include:
	471	+	a. alcoholic beverages,
	472	+	b. bottled water,
	473	+	c. candy,
	474	+	d. dietary supplements,
	475	+
	476	+	ENGR. H. B. NO. 3349 Page 9 1
	477	+	2
	478	+	3
	479	+	4
	480	+	5
	481	+	6
	482	+	7
	483	+	8
	484	+	9
	485	+	10
	486	+	11
	487	+	12
	488	+	13
	489	+	14
	490	+	15
	491	+	16
	492	+	17
	493	+	18
	494	+	19
	495	+	20
	496	+	21
	497	+	22
	498	+	23
	499	+	24
	500	+
	501	+	e. marijuana, usable marijuana or marijuana -infused
	502	+	products,
	503	+	f. prepared food,
	504	+	g. soft drinks, or
	505	+	h. tobacco;
	506	+	16. a. "Gross receipts", "gross proceeds" or "sales price"
	507	+	means the total amount of consideration, inc luding
	508	+	cash, credit, property and services, for which
	509	+	personal property or services are sold, leased or
	510	+	rented, valued in money, whether received i n money or
	511	+	otherwise, without any deduction for t he following:
	512	+	(1) the seller's cost of the property sold,
	513	+	(2) the cost of materials used, labor or service
	514	+	cost,
	515	+	(3) interest, losses, all costs of transportation to
	516	+	the seller, all taxes imposed on the sell er, and
	517	+	any other expense of the seller,
	518	+	(4) charges by the seller for any services necessary
	519	+	to complete the sale, other than delivery and
	520	+	installation charges,
	521	+	(5) delivery charges and installation charges, unless
	522	+	separately stated on the invoice, billin g or
	523	+	similar document given to the purchaser, and
	524	+	(6) credit for any trade-in.
	525	+
	526	+	ENGR. H. B. NO. 3349 Page 10 1
	527	+	2
	528	+	3
	529	+	4
	530	+	5
	531	+	6
	532	+	7
	533	+	8
	534	+	9
	535	+	10
	536	+	11
	537	+	12
	538	+	13
	539	+	14
	540	+	15
	541	+	16
	542	+	17
	543	+	18
	544	+	19
	545	+	20
	546	+	21
	547	+	22
	548	+	23
	549	+	24
	550	+
	551	+	b. Such term shall not include :
	552	+	(1) discounts, including cash, term, or coupons that
	553	+	are not reimbursed by a third party that are
	554	+	allowed by a seller an d taken by a purchaser on a
	555	+	sale,
	556	+	(2) interest, financing, and carrying ch arges from
	557	+	credit extended on the sale of personal property
	558	+	or services, if the amount is separately stated
	559	+	on the invoice, bill of sale or similar document
	560	+	given to the purchaser, a nd
	561	+	(3) any taxes legally imposed directly on the
	562	+	consumer that are separat ely stated on the
	563	+	invoice, bill of sale or similar document given
	564	+	to the purchaser.
	565	+	c. Such term shall include consideration received by the
	566	+	seller from third parties if:
	567	+	(1) the seller actually receives con sideration from a
	568	+	party other than the purchaser and the
	569	+	consideration is directly related to a price
	570	+	reduction or discount on the sale,
	571	+	(2) the seller has an obligation to pass the price
	572	+	reduction or discount through to the purcha ser,
	573	+	(3) the amount of the consideration attributable to
	574	+	the sale is fixed and determinable by the seller
	575	+
	576	+	ENGR. H. B. NO. 3349 Page 11 1
	577	+	2
	578	+	3
	579	+	4
	580	+	5
	581	+	6
	582	+	7
	583	+	8
	584	+	9
	585	+	10
	586	+	11
	587	+	12
	588	+	13
	589	+	14
	590	+	15
	591	+	16
	592	+	17
	593	+	18
	594	+	19
	595	+	20
	596	+	21
	597	+	22
	598	+	23
	599	+	24
	600	+
	601	+	at the time of the sale of t he item to the
	602	+	purchaser, and
	603	+	(4) one of the following criteria is met:
	604	+	(a) the purchaser presents a coupon, certificate
	605	+	or other documentation to the seller to
	606	+	claim a price reduction or discount where
	607	+	the coupon, certificate or documentation is
	608	+	authorized, distributed or granted by a
	609	+	third party with the understanding that the
	610	+	third party will reimburse any seller to
	611	+	whom the coupon, certificate or
	612	+	documentation is presented,
	613	+	(b) the purchaser identifies himself or herself
	614	+	to the seller as a member of a g roup or
	615	+	organization entitled to a price reduction
	616	+	or discount; provided, a "preferred
	617	+	customer" card that is available to any
	618	+	patron does not cons titute membership in
	619	+	such a group, or
	620	+	(c) the price reduction or discount is
	621	+	identified as a third -party price reduction
	622	+	or discount on the invoice received by the
	623	+	purchaser or on a coupon, certificate or
	624	+
	625	+	ENGR. H. B. NO. 3349 Page 12 1
	626	+	2
	627	+	3
	628	+	4
	629	+	5
	630	+	6
	631	+	7
	632	+	8
	633	+	9
	634	+	10
	635	+	11
	636	+	12
	637	+	13
	638	+	14
	639	+	15
	640	+	16
	641	+	17
	642	+	18
	643	+	19
	644	+	20
	645	+	21
	646	+	22
	647	+	23
	648	+	24
	649	+
	650	+	other documentation presen ted by the
	651	+	purchaser;
	652	+	13.
	653	+	17. a. "Maintaining a place of business in th is state" means
	654	+	and shall be presumed to include:
	655	+	(1) (a) utilizing or maintaining in this state,
	656	+	directly or by subsidiary, an office,
	657	+	distribution house, sales house, warehouse,
	658	+	or other physical place of business, whether
	659	+	owned or operated by the vendor or any other
	660	+	person, other than a common carrier acting
	661	+	in its capacity as such, or
	662	+	(b) having agents operating in this state,
	663	+	whether the place of business or agent
	664	+	is within this state temporarily or
	665	+	permanently or whether the person or
	666	+	agent is authorized to do business
	667	+	within this state, and
	668	+	(2) the presence of any person, other than a common
	669	+	carrier acting in its capacity as such, that has
	670	+	substantial nexus in this state and tha t:
	671	+	(a) sells a similar line of products as the
	672	+	vendor and does so under th e same or a
	673	+	similar business name,
	674	+
	675	+	ENGR. H. B. NO. 3349 Page 13 1
	676	+	2
	677	+	3
	678	+	4
	679	+	5
	680	+	6
	681	+	7
	682	+	8
	683	+	9
	684	+	10
	685	+	11
	686	+	12
	687	+	13
	688	+	14
	689	+	15
	690	+	16
	691	+	17
	692	+	18
	693	+	19
	694	+	20
	695	+	21
	696	+	22
	697	+	23
	698	+	24
	699	+
	700	+	(b) uses trademarks, serv ice marks or trade
	701	+	names in this state that are the same
	702	+	or substantially similar to those used
	703	+	by the vendor,
	704	+	(c) delivers, installs, assembles or
	705	+	performs maintenance services for the
	706	+	vendor,
	707	+	(d) facilitates the vendor's delivery of
	708	+	property to customers in the state by
	709	+	allowing the vendor's customers to pick
	710	+	up property sold by the vendor at an
	711	+	office, distribution facilit y,
	712	+	warehouse, storage pla ce or similar
	713	+	place of business maintained by the
	714	+	person in this state, or
	715	+	(e) conducts any other activities in this state
	716	+	that are significantly associated with the
	717	+	vendor's ability to establish and maintain a
	718	+	market in this state for the vendor's sale.
	719	+	b. The presumptions in divisions (1) and (2) of
	720	+	subparagraph a of this paragraph may be rebutted by
	721	+	demonstrating that the person's activities in this
	722	+	state are not significantly associated with the
	723	+
	724	+	ENGR. H. B. NO. 3349 Page 14 1
	725	+	2
	726	+	3
	727	+	4
	728	+	5
	729	+	6
	730	+	7
	731	+	8
	732	+	9
	733	+	10
	734	+	11
	735	+	12
	736	+	13
	737	+	14
	738	+	15
	739	+	16
	740	+	17
	741	+	18
	742	+	19
	743	+	20
	744	+	21
	745	+	22
	746	+	23
	747	+	24
	748	+
	749	+	vendor's ability to establish and maintain a market in
	750	+	this state for the vendor's sales.
	751	+	c. Any ruling, agreement or contract, whether written or
	752	+	oral, express or imp lied, between a person and
	753	+	executive branch of this state, or any other state
	754	+	agency or department, stating, agreeing or r uling that
	755	+	the person is not "maintaining a place of business in
	756	+	this state" or is not required to collect sales and
	757	+	use tax in this state despite the presence of a
	758	+	warehouse, distribution center or fulfillment center
	759	+	in this state that is owned or operate d by the vendor
	760	+	or an affiliated person of the vendor shall be null
	761	+	and void unless it is specifically approved by a
	762	+	majority vote of each house of the Oklahoma
	763	+	Legislature;
	764	+	14. 18. "Manufacturing" means and includes the activity of
	765	+	converting or conditio ning tangible personal pr operty by changing
	766	+	the form, composition, or qual ity of character of some existing
	767	+	material or materials, inc luding natural resources, by procedures
	768	+	commonly regarded by the average person as manufacturing,
	769	+	compounding, processing or assembling, into a mat erial or materials
	770	+	with a different form or use. "Manufacturing" does not include
	771	+	extractive industrial acti vities such as mining, quarrying, logging,
	772	+	and drilling for oil, gas and water, nor oil and gas field
	773	+
	774	+	ENGR. H. B. NO. 3349 Page 15 1
	775	+	2
	776	+	3
	777	+	4
	778	+	5
	779	+	6
	780	+	7
	781	+	8
	782	+	9
	783	+	10
	784	+	11
	785	+	12
	786	+	13
	787	+	14
	788	+	15
	789	+	16
	790	+	17
	791	+	18
	792	+	19
	793	+	20
	794	+	21
	795	+	22
	796	+	23
	797	+	24
	798	+
	799	+	processes, such as n atural pressure reduction , mechanical
	800	+	separation, heating, cooling, dehydr ation and compression;
	801	+	15. 19. "Manufacturing operation " means the designing,
	802	+	manufacturing, compounding, processing, assembling, warehousing, or
	803	+	preparing of articles for sale as t angible personal property . A
	804	+	manufacturing operation begins at the point where the materials
	805	+	enter the manufacturing site and ends at the point where a finished
	806	+	product leaves the manufacturing site. "Manufacturing operation "
	807	+	does not include administrat ion, sales, distribution,
	808	+	transportation, site construction, or site maint enance. Extractive
	809	+	activities and field processes shall not be deemed to be a part of a
	810	+	manufacturing operation even when performed by a person otherwise
	811	+	engaged in manufacturing;
	812	+	16. 20. "Manufacturing site" means a location where a
	813	+	manufacturing operat ion is conducted, including a location
	814	+	consisting of one or more buildings or structures in an area owned,
	815	+	leased, or controlled by a manufacturer;
	816	+	17. 21. "Over-the-counter drug" means a drug that contains a
	817	+	label that identifies the product as a drug as required by 21
	818	+	C.F.R., Section 201.66. The over-the-counter-drug label includes:
	819	+	a. a "Drug Facts" panel, or
	820	+	b. a statement of the "active ingredient(s) " with a list
	821	+	of those ingredients contained in the c ompound,
	822	+	substance or preparation;
	823	+
	824	+	ENGR. H. B. NO. 3349 Page 16 1
	825	+	2
	826	+	3
	827	+	4
	828	+	5
	829	+	6
	830	+	7
	831	+	8
	832	+	9
	833	+	10
	834	+	11
	835	+	12
	836	+	13
	837	+	14
	838	+	15
	839	+	16
	840	+	17
	841	+	18
	842	+	19
	843	+	20
	844	+	21
	845	+	22
	846	+	23
	847	+	24
	848	+
	849	+	18. 22. "Person" means any individual, company, partnership,
	850	+	joint venture, joint agreement, association, mutual or otherwise,
	851	+	limited liability company, corporation, estate, trust, business
	852	+	trust, receiver or trustee ap pointed by any state or federal court
	853	+	or otherwise, syndicate, this state, any county, city, municipality,
	854	+	school district, any other political subdivision of the state, or
	855	+	any group or combination acting as a unit, in the plural o r singular
	856	+	number;
	857	+	19. 23. "Prepared food" shall mean:
	858	+	a. food sold in a heated state or that is heated by the
	859	+	seller,
	860	+	b. two or more food ingredients mixed or combined by the
	861	+	seller for sale as a single item, or
	862	+	c. food sold with eating utensils provided by the seller,
	863	+	including plates, knives, forks, spoons, glasses,
	864	+	cups, napkins, or straws;
	865	+	24. "Prescription" means an order, formul a or recipe issued in
	866	+	any form of oral, written, electronic, or other means of
	867	+	transmission by a duly licensed "practitioner" as defined in Section
	868	+	1357.6 of this title;
	869	+	20. 25. "Prewritten computer software" means "computer
	870	+	software", including prewritte n upgrades, which is not designed and
	871	+	developed by the author or other creator to the specifications of a
	872	+	specific purchaser. The combining of two or more prewritten
	873	+
	874	+	ENGR. H. B. NO. 3349 Page 17 1
	875	+	2
	876	+	3
	877	+	4
	878	+	5
	879	+	6
	880	+	7
	881	+	8
	882	+	9
	883	+	10
	884	+	11
	885	+	12
	886	+	13
	887	+	14
	888	+	15
	889	+	16
	890	+	17
	891	+	18
	892	+	19
	893	+	20
	894	+	21
	895	+	22
	896	+	23
	897	+	24
	898	+
	899	+	computer software programs or prewritten portions thereof does not
	900	+	cause the combination to be other than prewritten computer software.
	901	+	Prewritten software includes software designed and developed by the
	902	+	author or other creator to the specifications of a specific
	903	+	purchaser when it is sold to a person other than the purchaser.
	904	+	Where a person modifies or enhances computer software of which the
	905	+	person is not the author or creator, the person shall be deemed to
	906	+	be the author or creator onl y of such person's modifications or
	907	+	enhancements. Prewritten software or a prewritten portion thereof
	908	+	that is modified or enhanced to any degree, where such modification
	909	+	or enhancement is designed and developed to the specificatio ns of a
	910	+	specific purchaser, remains prewritten software; provided, however ,
	911	+	that where there is a reasonable, separately stated charge or an
	912	+	invoice or other statement of the price given to the purchaser for
	913	+	such modification or enhancement, such modificat ion or enhancement
	914	+	shall not constitute prewritten computer software;
	915	+	21. 26. "Repairman" means any person who performs any repair
	916	+	service upon tangible personal property of the consumer, whether or
	917	+	not the repairman, as a necessary and incidental part of performing
	918	+	the service, incorporates tangible personal property belonging to or
	919	+	purchased by the repairman into the tangible personal property being
	920	+	repaired;
	921	+	22. 27. "Sale" means the transfer of either title or possession
	922	+	of tangible personal property f or a valuable considerati on
	923	+
	924	+	ENGR. H. B. NO. 3349 Page 18 1
	925	+	2
	926	+	3
	927	+	4
	928	+	5
	929	+	6
	930	+	7
	931	+	8
	932	+	9
	933	+	10
	934	+	11
	935	+	12
	936	+	13
	937	+	14
	938	+	15
	939	+	16
	940	+	17
	941	+	18
	942	+	19
	943	+	20
	944	+	21
	945	+	22
	946	+	23
	947	+	24
	948	+
	949	+	regardless of the manner, method, instrumental ity, or device by
	950	+	which the transfer is accomplished in this state, or other
	951	+	transactions as provided by this paragraph, including but not
	952	+	limited to:
	953	+	a. the exchange, barter, lease, or rental of tangible
	954	+	personal property resulting in the transfer of the
	955	+	title to or possession of the property,
	956	+	b. the disposition for consumption or use in any business
	957	+	or by any person of all goods, wares, merchandise, or
	958	+	property which has been purcha sed for resale,
	959	+	manufacturing, or further processing,
	960	+	c. the sale, gift, exchange, or other disposition of
	961	+	admission, dues, or fees to clubs, places of
	962	+	amusement, or recreational or athletic events or for
	963	+	the privilege of having access to or the use of
	964	+	amusement, recreational, ath letic or entertainment
	965	+	facilities,
	966	+	d. the furnishing or rendering of services taxable under
	967	+	the Oklahoma Sales Tax Code, and
	968	+	e. any use of motor fuel or diesel fuel by a supplier, as
	969	+	defined in Section 500.3 of this title, upon whi ch
	970	+	sales tax has not prev iously been paid, for purposes
	971	+	other than to propel motor vehicles over the public
	972	+	highways of this state. M otor fuel or diesel fuel
	973	+
	974	+	ENGR. H. B. NO. 3349 Page 19 1
	975	+	2
	976	+	3
	977	+	4
	978	+	5
	979	+	6
	980	+	7
	981	+	8
	982	+	9
	983	+	10
	984	+	11
	985	+	12
	986	+	13
	987	+	14
	988	+	15
	989	+	16
	990	+	17
	991	+	18
	992	+	19
	993	+	20
	994	+	21
	995	+	22
	996	+	23
	997	+	24
	998	+
	999	+	purchased outside the state and used for purposes
	1000	+	other than to propel motor vehicles over the pu blic
	1001	+	highways of this sta te shall not constitute a sale
	1002	+	within the meaning of this paragraph;
	1003	+	23. 28. "Sale for resale" means:
	1004	+	a. a sale of tangible personal property to any purchaser
	1005	+	who is purchasing tangible personal property for the
	1006	+	purpose of reselling it within the geograph ical limits
	1007	+	of the United States of America or it s territories or
	1008	+	possessions, in the normal course of busine ss either
	1009	+	in the form or condition in which it is purchased or
	1010	+	as an attachment to or integral part of other tangible
	1011	+	personal property,
	1012	+	b. a sale of tangible personal property to a purchaser
	1013	+	for the sole purpose of the renting or leasing, within
	1014	+	the geographical limits of the United States of
	1015	+	America or its territories or possessions, of the
	1016	+	tangible personal property to ano ther person by the
	1017	+	purchaser, but not if incidental to the renting or
	1018	+	leasing of real estate,
	1019	+	c. a sale of tangible goods and products within this
	1020	+	state if, simultaneously with the sale, the vendor
	1021	+	issues an export bill of lading, or other
	1022	+	documentation that the point of delivery of such goods
	1023	+
	1024	+	ENGR. H. B. NO. 3349 Page 20 1
	1025	+	2
	1026	+	3
	1027	+	4
	1028	+	5
	1029	+	6
	1030	+	7
	1031	+	8
	1032	+	9
	1033	+	10
	1034	+	11
	1035	+	12
	1036	+	13
	1037	+	14
	1038	+	15
	1039	+	16
	1040	+	17
	1041	+	18
	1042	+	19
	1043	+	20
	1044	+	21
	1045	+	22
	1046	+	23
	1047	+	24
	1048	+
	1049	+	for use and consumption is in a for eign country and
	1050	+	not within the territorial confines of the United
	1051	+	States. If the vendor is not in the business of
	1052	+	shipping the tangible goods and products that are
	1053	+	purchased from the vendor, the buyer or p urchaser of
	1054	+	the tangible goods and products is re sponsible for
	1055	+	providing an export bill of lading or other
	1056	+	documentation to the vendor from whom the tangible
	1057	+	goods and products were purchased showing that the
	1058	+	point of delivery of s uch goods for use and
	1059	+	consumption is a foreign country and not within the
	1060	+	territorial confines of the United States, or
	1061	+	d. a sales of any carrier access services, right of
	1062	+	access services, telecommunications services to be
	1063	+	resold, or telecommunications use d in the subsequent
	1064	+	provision of, use as a component part of, or
	1065	+	integrated into, end-to-end telecommunications
	1066	+	service;
	1067	+	24. 29. "Soft drinks" shall mean any nonalcoholic beverages
	1068	+	that contain natural or artificial sweeteners. Soft drinks shall
	1069	+	not include beverages that contai n:
	1070	+	a. milk or milk products,
	1071	+	b. soy, rice, oat, or s imilar milk substitutes, or
	1072	+
	1073	+	ENGR. H. B. NO. 3349 Page 21 1
	1074	+	2
	1075	+	3
	1076	+	4
	1077	+	5
	1078	+	6
	1079	+	7
	1080	+	8
	1081	+	9
	1082	+	10
	1083	+	11
	1084	+	12
	1085	+	13
	1086	+	14
	1087	+	15
	1088	+	16
	1089	+	17
	1090	+	18
	1091	+	19
	1092	+	20
	1093	+	21
	1094	+	22
	1095	+	23
	1096	+	24
	1097	+
	1098	+	c. greater than fifty percent (50%) of vegetable or fruit
	1099	+	juice by volume;
	1100	+	30. "Tangible personal property " means personal property that
	1101	+	can be seen, weighed, measured, felt, or touched or that is in any
	1102	+	other manner perceptibl e to the senses. "Tangible personal
	1103	+	property" includes electricity, water, gas, steam and prewritten
	1104	+	computer software. This definition shall be applicable only for
	1105	+	purposes of the Oklahoma Sales Tax Co de;
	1106	+	25. 31. "Taxpayer" means any person liable to p ay a tax imposed
	1107	+	by the Oklahoma Sales Tax Code;
	1108	+	26. 32. "Tax period" or "taxable period" means the calendar
	1109	+	period or the taxpayer 's fiscal period for which a taxpayer has
	1110	+	obtained a permit from the Tax Commission to use a fiscal period in
	1111	+	lieu of a calendar period;
	1112	+	27. 33. "Tax remitter" means any person req uired to collect,
	1113	+	report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
	1114	+	tax remitter who fails, for any reas on, to collect, report, o r remit
	1115	+	the tax shall be considered a taxpayer for p urposes of assessment,
	1116	+	collection, and enforcement of the tax imposed by the Oklahoma Sales
	1117	+	Tax Code;
	1118	+	34. "Tobacco" shall mean cigarettes, cigars, chewing or pipe
	1119	+	tobacco, or any other item that contains tobacco; and
	1120	+	28. 35. "Vendor" means:
	1121	+
	1122	+	ENGR. H. B. NO. 3349 Page 22 1
	1123	+	2
	1124	+	3
	1125	+	4
	1126	+	5
	1127	+	6
	1128	+	7
	1129	+	8
	1130	+	9
	1131	+	10
	1132	+	11
	1133	+	12
	1134	+	13
	1135	+	14
	1136	+	15
	1137	+	16
	1138	+	17
	1139	+	18
	1140	+	19
	1141	+	20
	1142	+	21
	1143	+	22
	1144	+	23
	1145	+	24
	1146	+
	1147	+	a. any person making sales of tangible personal property
	1148	+	or services in this state, the gross receipts or gross
	1149	+	proceeds from which are taxed by the Oklahoma Sales
	1150	+	Tax Code,
	1151	+	b. any person maintaining a place of busine ss in this
	1152	+	state and making sales of tangible person al property
	1153	+	or services, whether at the place of business or
	1154	+	elsewhere, to persons within this state, the gross
	1155	+	receipts or gross proceeds from which are taxed by the
	1156	+	Oklahoma Sales Tax Code,
	1157	+	c. any person who solicits business by employees,
	1158	+	independent contractors, agents, or other
	1159	+	representatives in this state , and thereby makes sales
	1160	+	to persons within this state of tangible personal
	1161	+	property or services, the gross receipts or gr oss
	1162	+	proceeds from which a re taxed by the Oklahoma Sales
	1163	+	Tax Code, or
	1164	+	d. any person, pursuant to an agreement with the person
	1165	+	with an ownership interest in or title to tangible
	1166	+	personal property, who has been entrusted with the
	1167	+	possession of any such proper ty and has the power to
	1168	+	designate who is to obtain title, to physically
	1169	+	transfer possession of, or otherwise make sales of the
	1170	+	property.
	1171	+
	1172	+	ENGR. H. B. NO. 3349 Page 23 1
	1173	+	2
	1174	+	3
	1175	+	4
	1176	+	5
	1177	+	6
	1178	+	7
	1179	+	8
	1180	+	9
	1181	+	10
	1182	+	11
	1183	+	12
	1184	+	13
	1185	+	14
	1186	+	15
	1187	+	16
	1188	+	17
	1189	+	18
	1190	+	19
	1191	+	20
	1192	+	21
	1193	+	22
	1194	+	23
	1195	+	24
	1196	+
	1197	+	SECTION 2. AMENDATORY 68 O.S. 2021, Section 1354, is
	1198	+	amended to read as follows:
	1199	+	Section 1354. A. There Except as provided in subsection B of
	1200	+	this section, there is hereby levied upon al l sales, not otherwise
	1201	+	exempted in the Oklahoma Sales Tax Code, an excise tax of four and
	1202	+	one-half percent (4.5%) of the gro ss receipts or gross proceeds of
	1203	+	each sale of the following:
	1204	+	1. Tangible personal property, except newspapers and
	1205	+	periodicals;
	1206	+	2. Natural or artificial gas, electricity, ice, steam, or any
	1207	+	other utility or public service, except water, sewage and refuse.
	1208	+	Provided, the rate of four and one-half percent (4.5%) shall not
	1209	+	apply to sales subject to the provisions of paragraph 6 8 of Section
	1210	+	1357 of this title;
	1211	+	3. Transportation for hire to persons by common carriers,
	1212	+	including railroads both steam and electric , motor transportation
	1213	+	companies, pullman car companies, air lines, and other means of
	1214	+	transportation for hire, excluding:
	1215	+	a. transportation services provided by a touris m service
	1216	+	broker which are incidental to the rendition of
	1217	+	tourism brokerage services by such broker to a
	1218	+	customer regardless of whether or not such
	1219	+	transportation services are actually owned and
	1220	+	operated by the touris m service broker. For purposes
	1221	+
	1222	+	ENGR. H. B. NO. 3349 Page 24 1
	1223	+	2
	1224	+	3
	1225	+	4
	1226	+	5
	1227	+	6
	1228	+	7
	1229	+	8
	1230	+	9
	1231	+	10
	1232	+	11
	1233	+	12
	1234	+	13
	1235	+	14
	1236	+	15
	1237	+	16
	1238	+	17
	1239	+	18
	1240	+	19
	1241	+	20
	1242	+	21
	1243	+	22
	1244	+	23
	1245	+	24
	1246	+
	1247	+	of this subsection, "tourism service broker " means any
	1248	+	person, firm, association or corporatio n or any
	1249	+	employee of such person, firm, association or
	1250	+	corporation which, for a fee, commission or other
	1251	+	valuable consideration, a rranges or offers to arrange
	1252	+	trips, tours or other vacation or recreational travel
	1253	+	plans for a customer, and
	1254	+	b. transportation services provided by a funeral
	1255	+	establishment to family memb ers and other persons for
	1256	+	purposes of conducting a funeral in this sta te;
	1257	+	4. Intrastate, interstate and inte rnational telecommunications
	1258	+	services sourced to this state in accordance with Section 1354.30 of
	1259	+	this title and ancillary services. Provided:
	1260	+	a. the term "telecommunications services" shall mean the
	1261	+	electronic transmission, conveyance, or routing of
	1262	+	voice, data, audio, video, or any other information or
	1263	+	signals to a point, or between or am ong points. The
	1264	+	term "telecommunications services" includes such
	1265	+	transmission, conveyance, or routing in which computer
	1266	+	processing applications are used to act on the f orm,
	1267	+	code or protocol of the content for purposes of
	1268	+	transmission, conveyance or routin g without regard to
	1269	+	whether such service is referred to as v oice-over
	1270	+	Internet protocol services or is classified by the
	1271	+
	1272	+	ENGR. H. B. NO. 3349 Page 25 1
	1273	+	2
	1274	+	3
	1275	+	4
	1276	+	5
	1277	+	6
	1278	+	7
	1279	+	8
	1280	+	9
	1281	+	10
	1282	+	11
	1283	+	12
	1284	+	13
	1285	+	14
	1286	+	15
	1287	+	16
	1288	+	17
	1289	+	18
	1290	+	19
	1291	+	20
	1292	+	21
	1293	+	22
	1294	+	23
	1295	+	24
	1296	+
	1297	+	Federal Communications Commission as enhanced or value
	1298	+	added. "Telecommunications services " do not include:
	1299	+	(1) data processing and in formation services that
	1300	+	allow data to be generated, acquired , stored,
	1301	+	processed, or retrieved and delivered by an
	1302	+	electronic transmission to a purchaser where such
	1303	+	purchaser's primary purpose for the underlying
	1304	+	transaction is the processed data or informat ion,
	1305	+	(2) installation or maintenance of wiring or
	1306	+	equipment on a customer's premises,
	1307	+	(3) tangible personal property,
	1308	+	(4) advertising, including but not limited to
	1309	+	directory advertising,
	1310	+	(5) billing and collection services provided to third
	1311	+	parties,
	1312	+	(6) Internet access services,
	1313	+	(7) radio and television audio and v ideo programming
	1314	+	services, regardless of the medium, including the
	1315	+	furnishing of transmission, conveyance and
	1316	+	routing of such services by the programming
	1317	+	service provider. Radio and television au dio and
	1318	+	video programming services shall include, but not
	1319	+	be limited to, cable service as defined in 47
	1320	+	U.S.C. 522(6) and audio an d video programming
	1321	+
	1322	+	ENGR. H. B. NO. 3349 Page 26 1
	1323	+	2
	1324	+	3
	1325	+	4
	1326	+	5
	1327	+	6
	1328	+	7
	1329	+	8
	1330	+	9
	1331	+	10
	1332	+	11
	1333	+	12
	1334	+	13
	1335	+	14
	1336	+	15
	1337	+	16
	1338	+	17
	1339	+	18
	1340	+	19
	1341	+	20
	1342	+	21
	1343	+	22
	1344	+	23
	1345	+	24
	1346	+
	1347	+	services delivered by commercial mobile radio
	1348	+	service providers, as defined in 47 C.F.R. 20.3,
	1349	+	(8) ancillary services, or
	1350	+	(9) digital products delivered electronicall y,
	1351	+	including but not limited to, software, music,
	1352	+	video, reading mater ials or ring tones,
	1353	+	b. the term "interstate" means a "telecommunications
	1354	+	service" that originates in one United States state,
	1355	+	or a United States territory or possession, and
	1356	+	terminates in a different United States state or a
	1357	+	United States territory or poss ession,
	1358	+	c. the term "intrastate" means a telecommunications
	1359	+	service that originates in one United States state or
	1360	+	a United States territory or possession, and
	1361	+	terminates in the same Unit ed States state or a United
	1362	+	States territory or possession,
	1363	+	d. the term "ancillary services" means services that are
	1364	+	associated with or incidental to the provision of
	1365	+	telecommunications services, including but not limited
	1366	+	to "detailed telecommunications bi lling", "directory
	1367	+	assistance", "vertical service", and "voice mail
	1368	+	services",
	1369	+
	1370	+	ENGR. H. B. NO. 3349 Page 27 1
	1371	+	2
	1372	+	3
	1373	+	4
	1374	+	5
	1375	+	6
	1376	+	7
	1377	+	8
	1378	+	9
	1379	+	10
	1380	+	11
	1381	+	12
	1382	+	13
	1383	+	14
	1384	+	15
	1385	+	16
	1386	+	17
	1387	+	18
	1388	+	19
	1389	+	20
	1390	+	21
	1391	+	22
	1392	+	23
	1393	+	24
	1394	+
	1395	+	e. in the case of a bundled tr ansaction that includes
	1396	+	telecommunication service, ancillary service, Internet
	1397	+	access or audio or video programming service:
	1398	+	(1) if the price is attributable to products that are
	1399	+	taxable and products that are nontaxab le, the
	1400	+	portion of the price attributab le to the
	1401	+	nontaxable products may be subject to tax unless
	1402	+	the provider can identify by reasonable and
	1403	+	verifiable standards such portion for its bo oks
	1404	+	and records kept in the regular course of
	1405	+	business for other purpo ses, including, but not
	1406	+	limited to, nontax purposes, and
	1407	+	(2) the provisions of this paragraph shall apply
	1408	+	unless otherwise pro vided by federal law, and
	1409	+	f. a sale of prepaid calling servi ce or prepaid wireless
	1410	+	calling service shall be taxable at the time of sale
	1411	+	to the customer;
	1412	+	5. Telecommunications nonrecurring charges, which means an
	1413	+	amount billed for the installation, connect ion, change or initiation
	1414	+	of telecommunications services rec eived by a customer;
	1415	+	6. Printing or printed matter of all types, kind s, or character
	1416	+	and, except for service s of printing, copying or photocopying
	1417	+	performed by a privately owned scientific and ed ucational library
	1418	+	sustained by monthly or annual dues paid b y members sharing the use
	1419	+
	1420	+	ENGR. H. B. NO. 3349 Page 28 1
	1421	+	2
	1422	+	3
	1423	+	4
	1424	+	5
	1425	+	6
	1426	+	7
	1427	+	8
	1428	+	9
	1429	+	10
	1430	+	11
	1431	+	12
	1432	+	13
	1433	+	14
	1434	+	15
	1435	+	16
	1436	+	17
	1437	+	18
	1438	+	19
	1439	+	20
	1440	+	21
	1441	+	22
	1442	+	23
	1443	+	24
	1444	+
	1445	+	of such services with students interested in the study of geology,
	1446	+	petroleum engineering or related subjects, any service of printing
	1447	+	or overprinting, including the copyi ng of information by mimeograph,
	1448	+	multigraph, or by otherwise duplicating written or printed matter in
	1449	+	any manner, or the productio n of microfiche containing information
	1450	+	from magnetic tapes or other media furnished by customers;
	1451	+	7. Service of furnishing ro oms by hotel, apartment hotel,
	1452	+	public rooming house, motel, public lodging house, or tourist camp;
	1453	+	8. Service of furnishing stora ge or parking privileges by auto
	1454	+	hotels or parking lots;
	1455	+	9. Computer hardware, software, coding sheets, cards, magnetic
	1456	+	tapes or other media on which prewritten programs have been coded ,
	1457	+	punched, or otherwise recorded, including the gross receipts from
	1458	+	the licensing of software programs;
	1459	+	10. Foods, confections, and all drinks sold or dispensed by
	1460	+	hotels, restaurants, or other d ispensers, and sold for immediate
	1461	+	consumption upon the premi ses or delivered or carried away from the
	1462	+	premises for consumption els ewhere;
	1463	+	11. Advertising of all kinds, types, and characters, including
	1464	+	any and all devices used for advertising purposes exce pt those
	1465	+	specifically exempt pursuant to the provisions of S ection 1357 of
	1466	+	this title;
	1467	+	12. Dues or fees to clubs including free o r complimentary dues
	1468	+	or fees which have a value equivalent to the charge that would have
	1469	+
	1470	+	ENGR. H. B. NO. 3349 Page 29 1
	1471	+	2
	1472	+	3
	1473	+	4
	1474	+	5
	1475	+	6
	1476	+	7
	1477	+	8
	1478	+	9
	1479	+	10
	1480	+	11
	1481	+	12
	1482	+	13
	1483	+	14
	1484	+	15
	1485	+	16
	1486	+	17
	1487	+	18
	1488	+	19
	1489	+	20
	1490	+	21
	1491	+	22
	1492	+	23
	1493	+	24
	1494	+
	1495	+	otherwise been made, including any fe es paid for the use of
	1496	+	facilities or services rendered at a health spa or club or any
	1497	+	similar facility or business;
	1498	+	13. Tickets for admission to or voluntary contributi ons made to
	1499	+	places of amusement, sports, entertainment, exhibition, display, or
	1500	+	other recreational events or activities, including free or
	1501	+	complimentary admissions which have a value equivalent to the charge
	1502	+	that would have otherwise been made; provided, t hat the state tax
	1503	+	generated from the sale of tickets for admission by an aquarium
	1504	+	exempt from taxation pursuant to the provisions of the Internal
	1505	+	Revenue Code, 26 U.S.C., Section 501(c)(3), or owned or operated by
	1506	+	a public trust or political subdivision of this state, shall be
	1507	+	collected and disbursed to the nonprofit organization, public tru st
	1508	+	or political subdivision responsible for the aquarium 's operations
	1509	+	for use by that entity for promoting visitation primarily to out-of-
	1510	+	state residents;
	1511	+	14. Charges made for the privilege of entering or engaging in
	1512	+	any kind of activity, such as tennis, racquetball, or handball, when
	1513	+	spectators are charged no adm ission fee;
	1514	+	15. Charges made for the privilege of using items for
	1515	+	amusement, sports, entertainment, or recre ational activity, such as
	1516	+	trampolines or golf carts;
	1517	+
	1518	+	ENGR. H. B. NO. 3349 Page 30 1
	1519	+	2
	1520	+	3
	1521	+	4
	1522	+	5
	1523	+	6
	1524	+	7
	1525	+	8
	1526	+	9
	1527	+	10
	1528	+	11
	1529	+	12
	1530	+	13
	1531	+	14
	1532	+	15
	1533	+	16
	1534	+	17
	1535	+	18
	1536	+	19
	1537	+	20
	1538	+	21
	1539	+	22
	1540	+	23
	1541	+	24
	1542	+
	1543	+	16. The rental of equipment for a musement, sports,
	1544	+	entertainment, or other recreational activ ities, such as bowling
	1545	+	shoes, skates, golf carts, or other sports or a thletic equipment;
	1546	+	17. The gross recei pts from sales from any vending machine
	1547	+	without any deduction for rental to locate the vending machine on
	1548	+	the premises of a person who is not the o wner or any other
	1549	+	deductions therefrom;
	1550	+	18. The gross receipts or gro ss proceeds from the rental or
	1551	+	lease of tangible personal property, including rental or lease of
	1552	+	personal property when the re ntal or lease agreement requires the
	1553	+	vendor to launder, clea n, repair, or otherwise service the rented or
	1554	+	leased property on a reg ular basis, without any deduction for t he
	1555	+	cost of the service rendered. If the rental or lease charge is
	1556	+	based on the retail value of the property at the time of making the
	1557	+	rental or lease agreement and the expected life of the property, and
	1558	+	the rental or lease charge is separately stated from the service
	1559	+	cost in the statement, bill, or invoice delivered to the consumer,
	1560	+	the cost of services rendered shall be deducted from the gross
	1561	+	receipts or gross proceeds;
	1562	+	19. Flowers, plants, shrubs, trees, and other floral items,
	1563	+	whether or not produced by the vendor, sold by persons engaged in
	1564	+	florist or nursery business in this state, in cluding all orders
	1565	+	taken by an Oklahoma business for deliver y in another state. All
	1566	+
	1567	+	ENGR. H. B. NO. 3349 Page 31 1
	1568	+	2
	1569	+	3
	1570	+	4
	1571	+	5
	1572	+	6
	1573	+	7
	1574	+	8
	1575	+	9
	1576	+	10
	1577	+	11
	1578	+	12
	1579	+	13
	1580	+	14
	1581	+	15
	1582	+	16
	1583	+	17
	1584	+	18
	1585	+	19
	1586	+	20
	1587	+	21
	1588	+	22
	1589	+	23
	1590	+	24
	1591	+
	1592	+	orders taken outside this state for delivery within this state shall
	1593	+	not be subject to the taxes levied in this section;
	1594	+	20. Tangible personal property sold to persons, p eddlers,
	1595	+	solicitors, or other salesmen, for resale when ther e is likelihood
	1596	+	that this state will lose tax revenue due to the diffi culty of
	1597	+	enforcing the provisions of th e Oklahoma Sales Tax Code because of:
	1598	+	a. the operation of the business,
	1599	+	b. the nature of the business,
	1600	+	c. the turnover of independent contractors,
	1601	+	d. the lack of place of business in which to display a
	1602	+	permit or keep records,
	1603	+	e. lack of adequate records,
	1604	+	f. the fact that the persons are minors or transients,
	1605	+	g. the fact that the persons are engaged in service
	1606	+	businesses, or
	1607	+	h. any other reasonable re ason;
	1608	+	21. Any taxable services and tangible personal property
	1609	+	including materials, supplies, and equipment s old to contractors for
	1610	+	the purpose of developing and improving real estate even though said
	1611	+	real estate is intended for resale as real property, he reby declared
	1612	+	to be sales to consumers or users, however, taxable mate rials,
	1613	+	supplies and equipment sold to c ontractors as provided by this
	1614	+	subsection which are purchased as a result of and subseq uent to the
	1615	+	date of a contract entered into either prior to the effective date
	1616	+
	1617	+	ENGR. H. B. NO. 3349 Page 32 1
	1618	+	2
	1619	+	3
	1620	+	4
	1621	+	5
	1622	+	6
	1623	+	7
	1624	+	8
	1625	+	9
	1626	+	10
	1627	+	11
	1628	+	12
	1629	+	13
	1630	+	14
	1631	+	15
	1632	+	16
	1633	+	17
	1634	+	18
	1635	+	19
	1636	+	20
	1637	+	21
	1638	+	22
	1639	+	23
	1640	+	24
	1641	+
	1642	+	of any law increasing the rate of sales tax imposed by this article,
	1643	+	or entered into prior to the effective date of an ordinance or other
	1644	+	measure increasing the sales tax levy o f a political subdivision
	1645	+	shall be subject to the rate of sa les tax applicable, as of the date
	1646	+	such contract was entered into, to sales of such materials, supplies
	1647	+	and equipment if such purchases are required in order to complete
	1648	+	the contract. Such rate s hall be applicable to purchases made
	1649	+	pursuant to the contrac t or any change order under the contract
	1650	+	until the contract or any cha nge order has been completed, accepted
	1651	+	and the contractor has been discharged from any further obligation
	1652	+	under the contract o r change order or until two (2) years from the
	1653	+	date on which the contract was entered into whichever occurs first.
	1654	+	The increased sales tax rate shall be applicable to a ll such
	1655	+	purchases at the time of sale and the contractor shall file a claim
	1656	+	for refund before the expiration of three (3) years after the date
	1657	+	of contract completion or five (5) years after the contract was
	1658	+	entered into, whichever occurs earlier. However, the Oklahoma Tax
	1659	+	Commission shall prescribe rules and regulations and shall provide
	1660	+	procedures for the refund to a contractor of sales taxes colle cted
	1661	+	on purchases eligible for the lower sales tax rate authorized by
	1662	+	this subsection;
	1663	+	22. Any taxable servi ces and tangible personal property sold to
	1664	+	persons who are primarily engaged in selling their services, such as
	1665	+	repairmen, hereby declared to be sa les to consumers or users; and
	1666	+
	1667	+	ENGR. H. B. NO. 3349 Page 33 1
	1668	+	2
	1669	+	3
	1670	+	4
	1671	+	5
	1672	+	6
	1673	+	7
	1674	+	8
	1675	+	9
	1676	+	10
	1677	+	11
	1678	+	12
	1679	+	13
	1680	+	14
	1681	+	15
	1682	+	16
	1683	+	17
	1684	+	18
	1685	+	19
	1686	+	20
	1687	+	21
	1688	+	22
	1689	+	23
	1690	+	24
	1691	+
	1692	+	23. Canoes and paddleboats as defined in Section 4002 of Title
	1693	+	63 of the Oklahoma Statutes.
	1694	+	B. 1. For the period beginning July 1, 2022, and ending June
	1695	+	30, 2024, an excise tax of zero percent (0%) is hereby imposed upon
	1696	+	all retail sales of food and food ingredients, sold for human
	1697	+	consumption off the premises where sold .
	1698	+	2. The levy of tax at zero percent ( 0%) prescribed by paragraph
	1699	+	1 of this subsection shall not supersede or otherwise affect any
	1700	+	local sales taxes levied on sales of food and food ingredients by
	1701	+	cities, counties, or other l ocal taxing jurisdictions . Any
	1702	+	municipal ordinance imposing a sales tax pursuant to the authority
	1703	+	of Section 2701 et seq. of this title or any county resolution or
	1704	+	similar measure imposing a sales tax pursuant to the a uthority of
	1705	+	Section 1370 of this title or any municipal ordinance or county
	1706	+	resolution or similar measure adopted pursuant to any other
	1707	+	provision of law authorizing a local sales tax which is in effect on
	1708	+	the effective date of this act shall continue t o be applicable to
	1709	+	the sale of food and food ingredients notwithstanding the zer o rate
	1710	+	of sales tax for state purposes upon such items as provided by t his
	1711	+	subsection.
	1712	+	3. The Oklahoma Tax Commission sha ll promulgate any necessary
	1713	+	rules to implement the provisions of this subsection in accordance
	1714	+	with the Streamlined Sales and Use Tax Agreement.
	1715	+
	1716	+	ENGR. H. B. NO. 3349 Page 34 1
	1717	+	2
	1718	+	3
	1719	+	4
	1720	+	5
	1721	+	6
	1722	+	7
	1723	+	8
	1724	+	9
	1725	+	10
	1726	+	11
	1727	+	12
	1728	+	13
	1729	+	14
	1730	+	15
	1731	+	16
	1732	+	17
	1733	+	18
	1734	+	19
	1735	+	20
	1736	+	21
	1737	+	22
	1738	+	23
	1739	+	24
	1740	+
	1741	+	C. All solicitations or advertisements in print or electronic
	1742	+	media by Group Three vendors, for the sale of ta ngible property to
	1743	+	be delivered within this state, shall contain a notice that the sale
	1744	+	is subject to Oklahoma sales tax, unless the sale is exempt from
	1745	+	such taxation.
	1746	+	SECTION 3. This act shall become effective July 1, 2022.
	1747	+	SECTION 4. It being immediately necessary for the preservation
57	1748		of the public peace, health o r safety, an emergency is hereby
58	1749		declared to exist, by reason whereof this act shall take effect and
59	1750		be in full force from and after its passage and approval.
60		-
61		-	ENR. H. B. NO. 3349 Page 3
62		-
63		-	Passed the House of Representatives the 18th day of May, 2022.
	1751	+	Passed the House of Representatives the 22nd day of March, 2022.
64	1752
65	1753
66	1754
67	1755
68	1756		Presiding Officer of the H ouse
69	1757		of Representatives
70	1758
71	1759
72		-	Passed the Senate the ~~18th~~ day of ~~May~~, 2022.
	1760	+	Passed the Senate the ___ day of __________, 2022.
73	1761
74	1762
75	1763
76	1764
77	1765		Presiding Officer of the Senate
78	1766
79	1767
80	1768
81		-	OFFICE OF THE GOVERNOR
82		-	Received by the Office of the Governor this ____________________
83		-	day of ___________________, 20_______, a t _______ o'clock _______ M.
84		-	By: _________________________________
85		-	Approved by the Governor of the State of Oklahoma this _____ ____
86		-	day of ___________________, 20_______, at _______ o'clock _______ M.
87		-
88		-
89		-	_________________________________
90		-	Governor of the State of Oklahoma
91		-
92		-	OFFICE OF THE SECRETARY OF STATE
93		-	Received by the Office of the Secretary of State this __________
94		-	day of ___________________, 20_______, at _______ o'clock _______ M.
95		-	By: _________________________________