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Oklahoma House Bill HB3621

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3621 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 2nd Session of the 58th Legislature (2022 )
3131
3232 HOUSE BILL 3621 By: Virgin
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; defining
4141 terms; exempting the sale of food and food
4242 ingredients from sales tax; authorizing the Oklahoma
4343 Tax Commission to promulgate rules; amending 68 O.S.
4444 2021, Sections 1370, 1370.1, 1370.2, 1370.2A, 1370.4,
4545 1370.5, 1370.6, 1370.7, 1370.8 and 2701, which relate
4646 to sales tax; permitting certain county sales tax
4747 levy; permitting certain municipal s ales tax levy;
4848 updating references; expanding municipalities'
4949 authority to tax; providing for codification;
5050 providing an effective date; and declaring an
5151 emergency.
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5656 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5757 SECTION 1. NEW LAW A new section of law to be codified
5858 in the Oklahoma Statute s as Section 1357.11 of Title 68, unless
5959 there is created a duplication in numbering, reads as follows:
6060 A. As used in this section:
6161 1. "Food and food ingredients " shall mean substances, whether
6262 in liquid, concentrated, solid, frozen, dried or dehydrated form,
6363 that are sold for ingestion or chewing by humans and are consumed
6464 for their taste or nutritional value. Food and food ingredients
6565 shall not include:
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9292 a. alcoholic beverages,
9393 b. bottled water,
9494 c. candy,
9595 d. dietary supplements,
9696 e. marijuana, usable mar ijuana or marijuana-infused
9797 products,
9898 f. prepared food,
9999 g. soft drinks, or
100100 h. tobacco;
101101 2. "Alcoholic beverages" shall mean beverages that are suitable
102102 for human consumption and co ntain one-half of one percent ( 0.5%) or
103103 more of alcohol by volume;
104104 3. "Candy" shall mean a preparation of sugar, honey or other
105105 natural or artificial sweeteners in combination with chocolate,
106106 fruits, nuts or other ingredients or flavorings in the form of bars,
107107 drops or pieces. Candy shall not include any preparation containing
108108 flour or requiring refrigeration;
109109 4. "Dietary supplements" shall mean any product, other than
110110 tobacco, intended to supplement the diet that:
111111 a. contains one or more of the followin g dietary
112112 ingredients:
113113 (1) a vitamin,
114114 (2) a mineral,
115115 (3) an herb or other botanical,
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142142 (4) an amino acid,
143143 (5) a dietary substance to supplement the diet by
144144 increasing the total dietary intake, or
145145 (6) a concentrate, metabolite, constituent, extract,
146146 or combination of any ingredient described in
147147 divisions (1) through (5) of this subpa ragraph,
148148 b. is intended for ingestion in tablet, capsule, powder,
149149 softgel, gelcap, or liquid form, or, if not intended
150150 for ingestion in such form, is not represented as
151151 conventional food and is not represented for use as a
152152 sole item of a meal or of the die t, and
153153 c. is required to be labeled as a dietary supplement,
154154 identifiable by the label and as required pursuant to
155155 Section 101.36 of Title 21 of the Code of Federal
156156 Regulations;
157157 5. "Prepared food" shall mean:
158158 a. food sold in a heated state or that is heated by the
159159 seller,
160160 b. two or more food ingredients mixed or combined by the
161161 seller for sale as a single item, or
162162 c. food sold with eating utensils provided by the seller,
163163 including plates, knives, forks, spoons, glasses,
164164 cups, napkins, or straws;
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191191 6. "Soft drinks" shall mean any nonalcoholic beverages that
192192 contain natural or artificial sweeteners. Soft drinks shall not
193193 include beverages that contain:
194194 a. milk or milk products,
195195 b. soy, rice, oat, or similar milk substitutes, or
196196 c. greater than fifty percent ( 50%) of vegetable or fruit
197197 juice by volume; and
198198 7. "Tobacco" shall mean cigarettes, cigars, chewing or pipe
199199 tobacco, or any other item that contains tobacco.
200200 B. The retail sale o f food and food ingredients, sold for human
201201 consumption off the premises whe re sold, shall be exempt from the
202202 tax imposed by Section 1354 of Title 68 of the Oklahoma Statutes
203203 except:
204204 1. Starting July 1, 2022 , and ending not later than June 30,
205205 2023, three percent (3%) of the gross receipts upon which the tax is
206206 levied; and
207207 2. Starting July 1, 2023, and ending not later than June 30,
208208 2024, one and one-half percent (1.5%) of the gros s receipts upon
209209 which the tax is levied .
210210 C. The exemption provided for in subsection B of this section
211211 shall not apply to any county or municipal sale s tax imposed
212212 pursuant to law by a county or m unicipality.
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239239 D. The Oklahoma Tax Commission shall promulgate any necessary
240240 rules to implement the provisions of this section in accor dance with
241241 the Streamlined Sales and Use Tax Agreement.
242242 SECTION 2. AMENDATORY 68 O.S. 2021, Sect ion 1370, is
243243 amended to read as follows:
244244 Section 1370. A. In accordance with the provisions of Section
245245 1 1354.36 of this act title, any county of this state may levy a
246246 sales tax of not to exceed two percent ( 2%) upon the gross proceeds
247247 or gross receipts derived from all sales or services in the county
248248 upon which a consumer 's sales tax is levied by this state except as
249249 authorized in subsection C of Section 1 of this act . Before a sales
250250 tax may be levied by the county, the imposition of the tax shall
251251 first be approved by a majority of the registered voters of the
252252 county voting thereon at a special election called by the board of
253253 county commissioners or by initiative petition signed by not less
254254 than five percent (5%) of the registered voters of the county wh o
255255 were registered at the time of the last general election. However,
256256 if a majority of the registered voters of a county voting fail t o
257257 approve such a tax, the board of county commissioners shall not call
258258 another special election for such purpose for six ( 6) months. Any
259259 sales tax approved by the registered voters of a county shall be
260260 applicable only when the point of sale is within the territorial
261261 limits of such county. Any sales tax levied or any change in th e
262262 rate of a sales tax levied pursuant to the p rovisions of this
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289289 section shall become effective on the first day of the calendar
290290 quarter following approval by the voters of the coun ty unless
291291 another effective date, which shall also be on the first day of a
292292 calendar quarter, is specified in the ordinanc e or resolution
293293 levying the sales tax or changing the rate of sales tax.
294294 B. The Oklahoma Tax Commission shall give notice to all vend ors
295295 of a rate change at least sixty (60) days prior to the effective
296296 date of the rate change. Provided, for purchases fro m printed
297297 catalogs wherein the purchaser computed the tax based upon local tax
298298 rates published in the catalog, the rate change shall n ot be
299299 effective until the first day of a calendar quarter after a minimum
300300 of one hundred twenty (120) days ' notice to vendors. Failure to
301301 give notice as required by this section shall delay the effective
302302 date of the rate change to the first day of the nex t calendar
303303 quarter.
304304 C. Initiative petitions calling for a special election
305305 concerning county sales tax proposals shall be in accordance with
306306 Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
307307 Statutes. Petitions shall be submitted to the office of county
308308 clerk for approval as to form prior to circulation. Following
309309 approval, the petitioner shall have ninety (90) days to secure the
310310 required signatures. After securing the requisite number of
311311 signatures, the petitioner shall submit the petition a nd signatures
312312 to the county clerk. Following the verification of signatures , the
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339339 county clerk shall present the petition to the board of county
340340 commissioners. The special election shall be held within sixty (60)
341341 days of receiving the petition. The ballo t title presented to the
342342 voters at the special election shall be identical t o the ballot as
343343 presented in the initiative pe tition.
344344 D. Subject to the provisions of Section 1357.10 of this title
345345 and except as provided in subsection C of Section 1 of this act , all
346346 items that are exempt from the state sales tax shall be exempt from
347347 any sales tax levied by a county.
348348 E. Any sales tax which may be levied by a county shall be
349349 designated for a particular purpose. Such purposes may include, but
350350 are not limited to, projects owned by the state, any agency or
351351 instrumentality thereof, the coun ty and/or any political subdivision
352352 located in whole or in part within such county, regional
353353 development, economic development, common education, general
354354 operations, capital improv ements, county roads, weather modification
355355 or any other purpose deemed, by a majority vote of the county
356356 commissioners or as stated by initiative petition, to be necessary
357357 to promote safety, security and the general well -being of the
358358 people, including any authorized purpose pursuant to the Oklahoma
359359 Community Economic Development P ooled Finance Act. The county shall
360360 identify the purpose of the sales tax when it is presented to the
361361 voters pursuant to the provisions of subsection A of this section.
362362 Except as otherwise provided in this section and except as required
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389389 by the Oklahoma Community Economic Development Pooled Finance A ct,
390390 the proceeds of any sales tax levied by a county shall be deposited
391391 in the general revenue or sales tax revolving fund of the coun ty and
392392 shall be used only for the purpose for which such sales tax was
393393 designated. If the proceeds of any sales tax levie d by a county
394394 pursuant to this section are pledged for the purpose of retiring
395395 indebtedness incurred for the specific purpose for whic h the sales
396396 tax is imposed, the sales tax shall not be repealed until such t ime
397397 as the indebtedness is retired. However, in no event shall the life
398398 of the tax be extended beyond the duration approved by the voters of
399399 the county.
400400 F. 1. Notwithstanding an y other provisions of law, any county
401401 that has approved a sales tax for the construction, support or
402402 operation of a county hospital may continue to collect such tax if
403403 such hospital is subsequently sold. Such collection shall only
404404 continue if the county r emains indebted for the past construction,
405405 support or operation of such hosp ital. The collection may continue
406406 only until the debt is repaid or for the stated term of the sales
407407 tax, whichever period is shorter.
408408 2. If the construction, support or operation of a hospital is
409409 funded through the levy of a county sales tax pursuant to this
410410 section and such hospital is subsequently sold, the county levying
411411 the tax may dissolve the governing board of such hospital following
412412 the sale. Upon the sale of the hospital and dissolution of any
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439439 governing board, the county is relieved of any futur e liability for
440440 the operation of such hospital .
441441 G. Proceeds from any sales tax levied that is designated to be
442442 used solely by the sheriff for the operation of the office of
443443 sheriff shall be placed in the special revenue account of the
444444 sheriff.
445445 H. The life of the tax could be limited or unlimited in
446446 duration. The county shall identify the duration of the tax when it
447447 is presented to the voters pursuant to the provisions of subsecti ons
448448 A and C of this section. The maximum duration of a levy imposed
449449 pursuant to Section 891.14 of Title 62 of the Oklahom a Statutes
450450 shall be no longer than allowed pursuant to the Oklahoma Community
451451 Economic Development Pooled Finance Act.
452452 I. Except for the levies imposed pursuant to Section 891.14 of
453453 Title 62 of the Oklahoma St atutes, there are hereby created one or
454454 more county sales tax revolving funds in each county which levies a
455455 sales tax under this section if any or all of the proceeds of such
456456 tax are not to be deposited in the general revenue fund of the
457457 county or comply with the provisions of subsection G of this
458458 section. Each such revolving fund shall be designated for a
459459 particular purpose and shall consist of all monies generated by such
460460 sales tax which are designated for such purpose. Monies in such
461461 funds shall only be expended for the purposes specifically
462462 designated as required by this section. A county sales tax
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489489 revolving fund shall be a continuing fund not subject to fiscal year
490490 limitations.
491491 J. In the case of a levy submitted for voter approval pursuant
492492 to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
493493 by a county shall not become valid until the ordinance or resolution
494494 setting the rate of the levy shall have been approv ed by a majority
495495 vote of the registered voters of each such county voting on such
496496 question at a special election. Electio ns conducted pursuant to
497497 questions submitted pursuant to Section 891.14 of Title 62 of the
498498 Oklahoma Statutes shall be conducted on the same date or in a
499499 sequence that provides that the last vote required for ap proval by
500500 all participating counties or munici palities occurs not later than
501501 thirty (30) days after the date upon which the first vote occurs.
502502 SECTION 3. AMENDATORY 68 O.S. 2021, Section 1370.1, is
503503 amended to read as follows:
504504 Section 1370.1 Notwithstanding the provisions of Section 1370
505505 of this title and in accordance with the provisions of Section 1
506506 1354.36 of this act title, any county of this state with a
507507 population of more than three hundred thousand (300,000) according
508508 to the latest Federal Decennial Census may levy a sa les tax of not
509509 to exceed one-half of one percent ( 1/2 of 1 0.5%) upon the gross
510510 proceeds or gross receipts derived from all sales or s ervices in the
511511 county upon which a consumer 's sales tax is levied by the sta te,
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538538 except as provided in subsection C of Sect ion 1 of this act, subject
539539 to the following conditions:
540540 1. The proceeds of such sales tax shall be used solely for the
541541 purpose of constructing and equipping county jail facilities or
542542 capital improvements for j ail facilities only;
543543 2. Before a sales tax ma y be levied by the county, the
544544 imposition of the tax shall first be approved by a majority of the
545545 registered voters of the county voti ng thereon at a special election
546546 called by resolution of the board of county commissioners;
547547 3. Such sales tax can only be imposed for a period not to
548548 exceed three (3) years; and
549549 4. Any special election called pursuant to this section must be
550550 held no later than January 1, 1992.
551551 SECTION 4. AMENDATORY 68 O .S. 2021, Section 1370.2, is
552552 amended to read as follows:
553553 Section 1370.2 Notwithstanding the provisions of Section 1370
554554 of this title and in accordance with the provisions of Section 1
555555 1354.36 of this act title, any county of this state with a
556556 population of more than three hundred thousand (300,000) a ccording
557557 to the latest Federal Decennial Census may levy a sales tax of not
558558 to exceed one percent (1%) upon the gross proceeds or gros s receipts
559559 derived from all sales or services in the county upon which a
560560 consumer's sales tax is levied by the state, exce pt as provided in
561561 paragraph 8 of Section 1357 of this title and except as provided in
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588588 subsection C of Section 1 of this act , subject to the following
589589 conditions:
590590 1. The proceeds of such sales tax and the inter est thereon
591591 shall be used solely for the purpo se of development of qualified
592592 aircraft maintenance or manufacturing facilities and any necessary
593593 infrastructure changes or airport im provements directly related to
594594 such facilities located within the county to be owned by the county,
595595 any municipality withi n the county or a public trust in which the
596596 county or municipality is a beneficiary. However, such municipality
597597 or public trust shall hold such title for the use and benefit of the
598598 residents of the entire coun ty in which the tax is levied and
599599 collected. The acceptance by the municipality or public trust of
600600 any title or tax proceeds shall be deemed an acceptance of this
601601 requirement. The board of county commissioners of any county that
602602 has approved the impositi on of a sales tax pursuant to this section
603603 may not commence the collection of any such sales tax until a
604604 qualified aircraft maintenance or manufacturing facility has signed
605605 an agreement to locate such facility within the county. As used in
606606 this paragraph, "qualified aircraft maintenance or manufactur ing
607607 facility" means a new or expanding facility primarily engaged in
608608 aircraft repair, building or rebuilding, whether or not on a fact ory
609609 basis, whose total cost of construction exceeds the sum of One
610610 Hundred Fifty Million Dollars ($150,000,000.00) and whi ch employs at
611611 least one thousand (1,000) new full -time-equivalent employees, as
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638638 certified by the Employment Security Commission upon c ompletion of
639639 the facility;
640640 2. Before a sales tax may be levied by the count y, the
641641 imposition of the tax shall first be ap proved by a majority of the
642642 registered voters of the county voting thereon at a special election
643643 called by resolution of the board of county commissioners;
644644 3. The monies collected pursuant to the provisions of this
645645 section shall only be expended by the bo ard of county commissioners
646646 to finance an amount not to exceed twenty -five percent (25%) of the
647647 total cost of construction of the qual ified aircraft maintenance or
648648 manufacturing facility and any necessary infra structure changes or
649649 airport improvements dire ctly related to such facility; and
650650 4. Such sales tax can only be imposed for a period not to
651651 exceed three (3) years.
652652 SECTION 5. AMENDATORY 68 O.S. 2021, Section 1370.2A, is
653653 amended to read as follows:
654654 Section 1370.2A Notwithstan ding the provisions of Section 1370
655655 of this title and in accordance with the provisions of Section 1
656656 1354.36 of this act title, any county of this state with a
657657 population of more than three hundred thousand (30 0,000) according
658658 to the latest Federal Decenni al Census may levy a sales tax of not
659659 to exceed one percent (1%) upon the gross proceeds or gross receipts
660660 derived from all sales or s ervices in the county upon which a
661661 consumer's sales tax is levied by the sta te, except as provided in
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688688 subsection C of Sect ion 1 of this act, subject to the following
689689 conditions:
690690 1. The proceeds of such sales tax and the interest thereon
691691 shall be used solely for the purpose of acquisition and development
692692 of qualified manufacturing facilities, related machinery and
693693 equipment and any necessary infrastructure changes or improvements
694694 related to such facilities located within the county to be owned by
695695 the county, any municipality within the county or a public trust in
696696 which the county or municipality is a beneficiary. However, suc h
697697 municipality or public trust shall hold such title for the use and
698698 benefit of the residents of the entire county in which the tax is
699699 levied and collected. The acceptance by the municipality or public
700700 trust of any title or tax proceeds shall be deemed an acceptance of
701701 this requirement. The board of county commissioners of any county
702702 that has approved the imposition of a sales tax purs uant to this
703703 section may not commence the collection of any such sales tax u ntil
704704 a qualified manufacturing facility has si gned an agreement to locate
705705 such facility within the county. As used in this paragraph,
706706 "qualified manufacturing facility " means a new or expanding facility
707707 primarily engaged in manufacturing, production and/o r assembly of
708708 consumer or other products, whet her or not on a factory basis, whose
709709 total cost of acquisition and construction exceeds the sum of
710710 Fifteen Million Dollars ($15,000,00 0.00) and which will employ at
711711 least one thousand (1,000) new full -time-equivalent employees, as
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738738 certified by the Employme nt Security Commission within three (3)
739739 years after the completion of the facility;
740740 2. Before a sales tax may be levied by the county , the
741741 imposition of the tax shall first be approved by a majority of the
742742 registered voters of the county voting thereon at a special election
743743 called by resolution of the board of county commissioners in the
744744 manner provided by law for county elections;
745745 3. The monies collected pursuant to the provisions of this
746746 section shall only b e expended by the board of county commissioner s
747747 to finance an amount not to exceed twenty -five percent (25%) of the
748748 total cost related to the acquisition and construction of the
749749 qualified manufacturing facility, related machinery and equipment
750750 and any necessary infrastructure changes or improvements d irectly
751751 related to such facility; and
752752 4. Such sales tax can only be imposed for a period not to
753753 exceed three (3) years.
754754 SECTION 6. AMENDATORY 68 O.S. 2021, Section 1370.4, is
755755 amended to read as follows:
756756 Section 1370.4 Notwithsta nding the provisions of Section 1370
757757 of this title and in accordance with the provisions of Section 1
758758 1354.36 of this act title, any county of this state with a
759759 population of more than three hundred thousand (3 00,000) according
760760 to the latest Federal Decenn ial Census may levy a sales tax of not
761761 to exceed one percent (1%) upon the gross proceeds or gross receipts
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788788 derived from all sales or services in the county upon which a
789789 consumer's sales tax is levied by the st ate, except as provided in
790790 paragraph 8 of Section 1357 of this title and except as provided in
791791 subsection C of Section 1 of this act , subject to the following
792792 conditions:
793793 1. The proceeds of such sales tax and the interest thereon
794794 shall be used solely for the purpose of development of facilities
795795 for lease or conveyance to the government of the United States and
796796 any necessary infrastructure changes or improvements directly
797797 related to such facilities located within the county. The board of
798798 county commissioners of any county that has approved the imposit ion
799799 of a sales tax pursuant to this section may not commence the
800800 collection of any such sales tax until an agreement to locate such
801801 facility within the county is reached;
802802 2. Before a sales tax may be levied by the county, the
803803 imposition of the tax shall f irst be approved by a majority of the
804804 registered voters of the county voting thereon at a special election
805805 called by resolution of the board of county commissioners;
806806 3. The monies collected pursuant to the pro visions of this
807807 section shall only be expended by the board of county commissioners
808808 to finance the construction of the facility and any necessary
809809 infrastructure changes or improvem ents directly related to such
810810 facility; and
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837837 4. Such sales tax can only be i mposed for a period not to
838838 exceed three (3) years.
839839 SECTION 7. AMENDATORY 68 O.S. 2021, Section 1370.5, is
840840 amended to read as follows:
841841 Section 1370.5 A. Notwithstanding the provisions of Section
842842 1370 of this title and in accordan ce with the provisions of Section
843843 1 1354.36 of this act title, any county of this state with a
844844 population of more than three hundred thousand (300,000) according
845845 to the latest Federal Decennial Census may levy a sales tax of not
846846 to exceed one percent (1%) upon the gross proceeds or gross receipts
847847 derived from all sales or services in the county upon which a
848848 consumer's sales tax is levied by the state, except as provided in
849849 paragraph 8 of Section 1357 of this title and except as provided in
850850 subsection C of Section 1 of this act, subject to the following
851851 conditions:
852852 1. The proceeds of such sales tax shall be used solely for the
853853 purpose of funding one or more economic development proje cts;
854854 2. Before a sales tax may be levied by the county, the
855855 imposition of the tax shall first be approved by a majority o f the
856856 registered voters of the county voting thereon at a special election
857857 called by resolution of the board of county commissioners;
858858 3. Such sales tax can only be imposed for a period of not to
859859 exceed three (3) years; and
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886886 4. Any special election called pursuant to this section must be
887887 held no later than March 1, 1994.
888888 B. The board of county commissioners shall create a limited -
889889 purpose fund and deposit therein any revenue generated by any sales
890890 tax levied pursuant to the provisions of subsection A of thi s
891891 section. The fund shall be placed in an insured or collateralized
892892 interest-bearing account and the interest which accrues to the fu nd
893893 shall be retained in the fund. Monies in the limited -purpose fund
894894 shall be expended only as accumulated and only for t he purpose
895895 specifically described in paragraph 1 of subsection A of this
896896 section.
897897 C. As used in this section, "economic development p roject"
898898 means any project which the board of county commissioners determines
899899 will promote, enhance or improve economic con ditions within the
900900 county.
901901 SECTION 8. AMENDATORY 68 O.S. 2021, Section 1370.6, is
902902 amended to read as follows :
903903 Section 1370.6 A. Notwithstanding the provisions of Section
904904 1370 of this title and in accordance with Section 1 1354.36 of this
905905 act title, any county of this state with a population of more than
906906 three hundred thousand (300,000) according to the latest Federal
907907 Decennial Census may levy a sales tax of not to exceed one percent
908908 (1%) upon the gross proceeds or gross receipts deriv ed from all
909909 sales or services in the county upon which a consumer 's sales tax is
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936936 levied by the state, except as provided in parag raph 8 of Section
937937 1357 of this title and except as provided in subsection C of Section
938938 1 of this act, subject to the following conditions:
939939 1. The proceeds of such sales tax shall be used solely for the
940940 purpose of funding one or more projects for new publi c improvements;
941941 2. Before a sales tax may be levied by the county, the
942942 imposition of the tax shall first be approved by a majo rity of the
943943 registered voters of the county voting thereon at a special election
944944 called by resolution of the board of county comm issioners;
945945 3. Such sales tax can only be imposed for a period of not to
946946 exceed three (3) years; and
947947 4. Any special election c alled pursuant to this section must be
948948 held no later than March 1, 1994.
949949 B. The board of county commissioners shall create a lim ited-
950950 purpose fund and deposit therein any revenue generated by any sales
951951 tax levied pursuant to the provisions of subsection A of this
952952 section. The fund shall be placed in an insured interest -bearing
953953 account and the interest which accrues to the fund shal l be retained
954954 in the fund. Monies in the limited -purpose fund shall be expe nded
955955 only as accumulated and only for the purpose s pecifically described
956956 in paragraph 1 of subsection A of this section.
957957 C. As used in this section:
958958 1. "Projects for new public i mprovements" means any new and
959959 beneficial change, addition, betterment or en hancement of or upon
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986986 any real property belonging to a public agency, intended to enhance
987987 the value, beauty or utility of said property or to adapt it to new
988988 or further purposes; an d
989989 2. "Public agency" means the State of Oklahoma and any county,
990990 city, public trust or other public entity specifically create d by
991991 the statutes of the State of Oklahoma or as a result of statutory
992992 authorization contained therein.
993993 SECTION 9. AMENDATORY 68 O.S. 2021, Section 1370.7, is
994994 amended to read as f ollows:
995995 Section 1370.7 A. As used in this section , the following terms
996996 shall have the following meanings:
997997 1. "Agency" includes but is not limited to extant
998998 transportation operat ing systems;
999999 2. "Operation" includes but is not limited to leasing services ,
10001000 contracting for services, planning, staffing, ope rating, financing,
10011001 construction and maintenance of a transportation or regional
10021002 economic project regardless of the source of fund ing;
10031003 3. "Regional district" means a specific governing and
10041004 assessment district created out of any combination of any portions
10051005 of any cities, towns or counties, either equal to or less than the
10061006 entirety of the boundaries of such cities, towns or counties;
10071007 4. "Transportation project or system " includes but is not
10081008 limited to transit, commuter and passenger rail service or
10091009 operations or intermodal facilities, the components of which
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10361036 contribute to a system that incorporates transportation modes of
10371037 highway, air, rail and waterway together in order to facilitate the
10381038 movement of commerce ; and
10391039 5. "User fees" means farebox revenues.
10401040 B. Any combination of cities, towns and counties, or their
10411041 agencies, by resolution of their governing boards, may jointly
10421042 create a transportation authority or regional economic development
10431043 authority and a regi onal district pursuant to the provisions of
10441044 Section 176 of Title 60 of the Oklahoma Statutes for the purpose of
10451045 planning, financing, construction, maintenance and operation of
10461046 transportation or regional economic development projects located
10471047 within the boundaries of such regional district. An authority
10481048 created pursuant to the provisions of this subsection shall have the
10491049 powers granted pursuant to the provisions of Section 176 of Tit le 60
10501050 of the Oklahoma Statutes in addition to the powers granted pursuant
10511051 to the provisions of this section except that no tran sportation or
10521052 regional economic development authority created pursuant to the
10531053 provisions of this subsection shall have any power or authority to
10541054 exercise or to attempt to exercise any powers of eminent dom ain.
10551055 The combination of cities, towns and counties , or their agencies,
10561056 creating the authority shall be designated the beneficiary of the
10571057 authority. The boundaries of the authorit y shall be coterminous
10581058 with the boundaries of the regional district. The au thority shall
10591059 be governed by a board of directors a ppointed by the governing
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10861086 boards of the cities, towns or counties creating such authority, and
10871087 the representative makeup of the b oard and the number of directors,
10881088 their duties and terms of service shall be determined by such
10891089 governing boards creating such authority.
10901090 C. Any transportation authority or regional economic
10911091 development authority created pursuant to the provisions of
10921092 subsection B of this section may levy a sales tax of not to exceed
10931093 two percent (2%) upon the gross proceeds or gross receipts deriv ed
10941094 from all sales or services in the regional district comprising the
10951095 authority upon which a consumer 's sales tax is levied by th is state.
10961096 Before a sales tax may be levied by the authority, the imposition of
10971097 the tax shall first be approved by a majority o f votes cast by the
10981098 registered voters within the boundaries of the regional district
10991099 comprising the authority voting thereon at a special election
11001100 jointly called by the governing boards of the cities, town s and
11011101 counties comprising the authority. Provided, if a majority of the
11021102 votes cast by registered voters of an authority voting fail to
11031103 approve such a tax, the governing boards of such cities, towns and
11041104 counties shall not jointly call another special elect ion for such
11051105 purpose for at least six (6) months. Any sales tax approved by the
11061106 registered voters of an authority shall be applicable only when the
11071107 point of sale is within the bou ndaries or limits of the authority
11081108 and provided no other sales tax is being levied pursuant to this
11091109 section in the same regiona l district during the same time period.
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11361136 D. All items that are exempt from the state sales tax shall be
11371137 exempt from any sales tax levied pursuant to the provisions of this
11381138 section; however, this subsection shall not apply to the exemption
11391139 provided for in subsection C of Section 1 of this act .
11401140 E. Any sales tax which may be levied pursuant to the provisions
11411141 of this section shall be d esignated for the purposes of planning,
11421142 financing, construction, maintenance and operation of transportation
11431143 or regional economic development projects within the boundaries of
11441144 the authority. The authority shall identify the purpose of the
11451145 sales tax when it is presented to the voters pursuant to the
11461146 provisions of this section. Th e proceeds of any sales tax levied by
11471147 an authority shall be used only for the purposes for which the sales
11481148 tax was designated.
11491149 F. The authority shall identify the specific duratio n of the
11501150 tax when it is presented to the voters pursuant to the provisions o f
11511151 this section and shall include specific language in the ballot title
11521152 disclosing the duration of the tax. A levy by a transportation
11531153 authority or a regional economic development authority shall have a
11541154 maximum duration of thirty (30) years if the proceeds from the tax
11551155 are pledged to the repayment of indeb tedness, a maximum duration of
11561156 twenty (20) years if the proceeds from the tax are to be used for
11571157 expenditures other than the repa yment of indebtedness, or for as
11581158 long as such authority is in operation.
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11851185 G. An authority created pursuant to the provisions of
11861186 subsection B of this section may utilize the provisions of the Local
11871187 Development Act as it relates to the financing of such
11881188 transportation or regional economic development projects.
11891189 H. A transportation o r regional economic development authority
11901190 created pursuant to this section shall exist for the duration of the
11911191 operation and no longer than one (1) year after cessation of the
11921192 operation.
11931193 I. Providing that at cessation of operations the proceeds of
11941194 any tax levied by an authority pursuant to this section ar e pledged
11951195 for the purpose of retiring indebtedness incurred for the specific
11961196 purpose for which the tax is imposed, the tax shall not be repealed
11971197 until such time as the indebtedness is retired. In no event shall
11981198 the life of the tax be extended beyond the d uration approved by the
11991199 voters of the authority.
12001200 J. If the revenue collected from any taxes levied by the
12011201 authority exceeds the amount necessary for payment of any and all
12021202 expenses incurred by the authori ty in the planning, financing,
12031203 construction, mainte nance and operation of transportation or
12041204 regional economic development projects, the excess funds shall be
12051205 apportioned to the gen eral funds of the cities, towns and counties
12061206 comprising the authority in pro portion to the population of each
12071207 city, town and county within the regional district.
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12341234 K. A transportation authority created pursuant to the
12351235 provisions of subsection B of this sect ion may provide for the
12361236 financing of a transportation system utilizing any r evenue measures
12371237 available pursuant to subsections B through J of this section in
12381238 combination with revenue derived from user fees.
12391239 SECTION 10. AMENDATORY 68 O.S. 2021, Section 1370.8, is
12401240 amended to read as follows:
12411241 Section 1370.8 A. In accordance with the provisions of Section
12421242 1 1354.36 of this act title, any combination of cities, towns and
12431243 counties, by resolution of their governing boards, may jointly
12441244 create a hospital authority pursuant to the provisions of Section
12451245 176 of Title 60 of the Oklahoma Statutes for the purpose of
12461246 planning, financing and constructing hospitals or related medical
12471247 facilities located within the boundaries of such cities, towns or
12481248 counties. An authority created pursuant to the provisions of this
12491249 subsection shall have the powers granted pursuant to the prov isions
12501250 of Section 176 of Title 60 of the Oklahoma Statutes in addition to
12511251 the powers granted pursuant to the provisions of this s ection. The
12521252 combination of cities, towns and counties creating the authorit y
12531253 shall be designated the beneficiary of the author ity. The
12541254 boundaries of the authority shall be coterminous with the boundaries
12551255 of the cities, towns or counties creating the auth ority.
12561256 B. Any hospital authority created pursuant to the provisions of
12571257 subsection A of this section may levy a sales tax of no t to exceed
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12841284 two percent (2%) upon the gross proceeds or gross receipts derived
12851285 from all sales or services in the cities, towns an d counties
12861286 comprising the authority upon which a consumer 's sales tax is levied
12871287 by this state. Before a sales tax may be levie d by the authority,
12881288 the imposition of the tax shall first be approved by a majority of
12891289 the registered voters within the boundarie s of each of the cities,
12901290 towns and counties comprising the authority voting thereon at a
12911291 special election jointly called by the governing boards of the
12921292 cities, towns and counties comprising the authority. Provided, if a
12931293 majority of the registered voters o f an authority voting fail to
12941294 approve such a tax, the governing boards of su ch cities, towns and
12951295 counties shall not jointly cal l another special election for such
12961296 purpose for at least six (6) months. Any sales tax approved by the
12971297 registered voters of an a uthority shall be applicable only when the
12981298 point of sale is within the bound aries or limits of the authority.
12991299 C. All items that are exempt from the state sales tax shall be
13001300 exempt from any sales tax levied pursuant to the provisions of this
13011301 section; however, this subsection shall not apply to the exemption
13021302 provided for in subsect ion C of Section 1 of this act.
13031303 D. Any sales tax which may be levied pursuant to the provisions
13041304 of this section shall be designated for the purposes of planning,
13051305 financing and constructing hospitals or related medical facilities
13061306 within the boundaries of t he authority. The authority shall
13071307 identify the purpose of the sales tax when it is presented to the
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13341334 voters pursuant to the provisions of this section. The proceeds of
13351335 any sales tax levied by an authority shall be used only for the
13361336 purposes for which the sales tax was designated.
13371337 E. The authority shall i dentify the duration of the tax when it
13381338 is presented to the voters pursuant to the provisions of this
13391339 section.
13401340 F. An authority created pursuant to the provisions of
13411341 subsection A of this section may utiliz e the provisions of the Local
13421342 Development Act as it relates to the financing of such hospitals or
13431343 related medical facilities.
13441344 G. An authority created pursuant to the provisions of
13451345 subsection A of this section shall be dissolved:
13461346 1. At such time as the pl anning, financing and constructing of
13471347 the hospitals or related medical facilities within the boundaries of
13481348 the authority is completed; and
13491349 2. At such time as the revenue collected from any taxes levied
13501350 by the authority is sufficient for payment of any and all expenses
13511351 incurred by the authority in the plan ning, financing and
13521352 constructing of a hospital or related medical facility.
13531353 H. If the proceeds of any tax levied by an authority pursuant
13541354 to this section are pledged for the purpose of retiring indebtedne ss
13551355 incurred for the specific purpose for which the tax is imposed, the
13561356 tax shall not be repealed until such time as the indebtedness is
13571357 retired. Notwithstanding any other provisio ns of law, any county or
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13841384 hospital authority that has approved a sales tax fo r the support and
13851385 operation of a county hospital ma y continue to collect such tax if
13861386 such hospital is subsequently sold. Such collection shall only
13871387 continue if the county or hospi tal authority remains indebted for
13881388 the support and operation of such hospita l and only until the debt
13891389 is repaid or for the stat ed term of the tax, whichever period is
13901390 shorter. In no event shall the life of the tax be extended beyond
13911391 the duration approved by the voters of the authority.
13921392 I. If the revenue collected from any taxes levied by the
13931393 authority exceeds the amount necessar y for payment of any and all
13941394 expenses incurred by the authority in the planning, financing and
13951395 constructing of hospitals or relat ed medical facilities, the excess
13961396 funds shall be apportioned to the general funds of the cities, towns
13971397 and counties comprising the authority in proportion to the
13981398 population of each city, town and county.
13991399 J. If the construction, support, or operation of a hospital is
14001400 funded through the levy of a sales tax by a county or hospital
14011401 authority pursuant to this section and such hospital is subsequently
14021402 sold, the county or hospital authority levying the tax may dissolve
14031403 the governing board of such hospital at the time of the sale. When
14041404 the sale of the hospital and dissolution of any gove rning board is
14051405 final, the county or hospital author ity is thereby relieved of any
14061406 liability for the operation of such hospital.
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14331433 SECTION 11. AMENDATORY 68 O .S. 2021, Section 2701, is
14341434 amended to read as follows:
14351435 Section 2701. A. Any incorporated city or town in this state
14361436 is hereby authorized to assess, levy, and collect taxes for general
14371437 and special purposes of municipal government as the Legislature may
14381438 levy and collect for purposes of state government, subject to the
14391439 provisions of subsection F of this section and subsection C of
14401440 Section 1 of this act, except ad valorem property taxes. Provided:
14411441 1. Taxes shall be uniform upon the same class subjects, and any
14421442 tax, charge, or fee levied upon or measured by income or receipts
14431443 from the sale of products or services shall be uniform up on all
14441444 classes of taxpayers;
14451445 2. Motor vehicles may be taxed by the city or town only when
14461446 such vehicles are primarily used or lo cated in such city or town for
14471447 a period of time longer than six (6) months o f a taxable year;
14481448 3. The provisions of this sectio n shall not be construed to
14491449 authorize imposition of any tax upon persons, firms, or corporations
14501450 exempted from other taxation und er the provisions of Sections 348.1,
14511451 624 and 321 of Title 36 of the Oklahoma Statutes, by reason of
14521452 payment of taxes imposed un der such sections;
14531453 4. Cooperatives and communications companies are hereby
14541454 authorized to pass on to their subscribers in the inc orporated city
14551455 or town involved, the amount of any special municipal fee, ch arge or
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14821482 tax hereafter assessed or levied on or coll ected from such
14831483 cooperatives or communications companies;
14841484 5. No earnings, payroll or income taxes may be levied on
14851485 nonresidents of the cities or towns levying such tax;
14861486 6. The governing body of any city or town shall be prohibited
14871487 from proposing taxing o rdinances more often than three times in any
14881488 calendar year, or twice in any six -month period; and
14891489 7. Any revenues derived from a tax authorized by this
14901490 subsection not dedicated to a limited purpose shall be deposited in
14911491 the municipal general fund.
14921492 B. A sales tax authorized in subsection A of this section may
14931493 be levied for limited purposes specified in the ordinance levying
14941494 the tax. Such ordinance shall be submitted to the voters for
14951495 approval as provided in Section 2705 of this title. Any sales tax
14961496 levied or any change in the rate of a sales tax levied pursuant to
14971497 the provisions of this section shall become effective on the first
14981498 day of the calendar quarter following approval by the voters of the
14991499 city or town unless another effective date, which shall als o be on
15001500 the first day of a calendar quarter, is specified in the ordinance
15011501 levying the sales tax or changing the rate of sales ta x. Such
15021502 ordinance shall describe with specificity the projects or
15031503 expenditures for which the limited-purpose tax levy would be made.
15041504 The municipal governing body shall create a limited -purpose fund and
15051505 deposit therein any revenue generated by any tax lev ied pursuant to
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15321532 this subsection. Money in the fund shall be accumulated fro m year
15331533 to year. The fund shall be placed in an ins ured interest-bearing
15341534 account and the interest which accrues on the fund shall be retained
15351535 in the fund. The fund shall be nonfis cal and shall not be
15361536 considered in computing any levy when the municipality makes its
15371537 estimate to the excise board for needed a ppropriations. Money in
15381538 the limited-purpose tax fund shall be expended only as accumulated
15391539 and only for the purposes specificall y described in the taxing
15401540 ordinance as approved by the voters.
15411541 C. The Oklahoma Tax Commission shall give notice to all vendors
15421542 of a rate change at least sixty (60) days prior to the effective
15431543 date of the rate change. Provided, for purchases from printed
15441544 catalogs wherein the purchaser computed the tax based upon local tax
15451545 rates published in the catalog, the rate change shall not be
15461546 effective until the first day of a calendar quarter after a minimum
15471547 of one hundred twenty - (120) days' notice to vendors. Fai lure to
15481548 give notice as required by this section shall delay the effective
15491549 date of the rate change to the first day of the next c alendar
15501550 quarter.
15511551 D. The change in the boundary of a municipality shall be
15521552 effective, for sales and use tax purposes only, on th e first day of
15531553 a calendar quarter after a minimum of sixty (60) days ' notice to
15541554 vendors.
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15811581 E. If the proceeds of any sales tax le vied by a municipality
15821582 pursuant to subsection B of this section are being used by the
15831583 municipality for the purpose of retiring i ndebtedness incurred by
15841584 the municipality or by a public trust of which the m unicipality is a
15851585 beneficiary for the specific purpos e for which the sales tax was
15861586 imposed, the sales tax shall not be repealed until such time as the
15871587 indebtedness is retired. Howe ver, in no event shall the life of the
15881588 tax be extended beyond the duration a pproved by the voters of the
15891589 municipality. The prov isions of this subsection shall apply to all
15901590 sales tax levies imposed by a municipality and being used by the
15911591 municipality for the purposes set forth in this subsection prior to
15921592 or after July 1, 1995.
15931593 F. The sale of an article of clothing or footwear desi gned to
15941594 be worn on or about the human body shall be exempt from the sales
15951595 tax imposed by any incorporated city or town, in accor dance with and
15961596 to the extent set forth in Section 1357.10 of this title.
15971597 G. Any municipality that levies a dedicated tax pursua nt to a
15981598 vote of the people for the purpose of funding public safety or any
15991599 other governmental purpose shall not redirect all or a portion of
16001600 the dedicated tax revenue to another purpose without a vote of the
16011601 people authorizing such action.
16021602 SECTION 12. This act shall become effective July 1, 2022.
16031603 SECTION 13. It being immediately necessary for the pre servation
16041604 of the public peace, health or safety, an emergency is hereby
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16311631 declared to exist, by reason whereof this act shall take effect and
16321632 be in full force from and after its passage and approval.
16331633
16341634 58-2-8565 AQH 12/29/21