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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022 )
HOUSE BILL 3621 By: Virgin
AS INTRODUCED
An Act relating to revenue and taxation; defining
terms; exempting the sale of food and food
ingredients from sales tax; authorizing the Oklahoma
Tax Commission to promulgate rules; amending 68 O.S.
2021, Sections 1370, 1370.1, 1370.2, 1370.2A, 1370.4,
1370.5, 1370.6, 1370.7, 1370.8 and 2701, which relate
to sales tax; permitting certain county sales tax
levy; permitting certain municipal s ales tax levy;
updating references; expanding municipalities'
authority to tax; providing for codification;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statute s as Section 1357.11 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. As used in this section:
1. "Food and food ingredients " shall mean substances, whether
in liquid, concentrated, solid, frozen, dried or dehydrated form,
that are sold for ingestion or chewing by humans and are consumed
for their taste or nutritional value. Food and food ingredients
shall not include:
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a. alcoholic beverages,
b. bottled water,
c. candy,
d. dietary supplements,
e. marijuana, usable mar ijuana or marijuana-infused
products,
f. prepared food,
g. soft drinks, or
h. tobacco;
2. "Alcoholic beverages" shall mean beverages that are suitable
for human consumption and co ntain one-half of one percent ( 0.5%) or
more of alcohol by volume;
3. "Candy" shall mean a preparation of sugar, honey or other
natural or artificial sweeteners in combination with chocolate,
fruits, nuts or other ingredients or flavorings in the form of bars,
drops or pieces. Candy shall not include any preparation containing
flour or requiring refrigeration;
4. "Dietary supplements" shall mean any product, other than
tobacco, intended to supplement the diet that:
a. contains one or more of the followin g dietary
ingredients:
(1) a vitamin,
(2) a mineral,
(3) an herb or other botanical,
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(4) an amino acid,
(5) a dietary substance to supplement the diet by
increasing the total dietary intake, or
(6) a concentrate, metabolite, constituent, extract,
or combination of any ingredient described in
divisions (1) through (5) of this subpa ragraph,
b. is intended for ingestion in tablet, capsule, powder,
softgel, gelcap, or liquid form, or, if not intended
for ingestion in such form, is not represented as
conventional food and is not represented for use as a
sole item of a meal or of the die t, and
c. is required to be labeled as a dietary supplement,
identifiable by the label and as required pursuant to
Section 101.36 of Title 21 of the Code of Federal
Regulations;
5. "Prepared food" shall mean:
a. food sold in a heated state or that is heated by the
seller,
b. two or more food ingredients mixed or combined by the
seller for sale as a single item, or
c. food sold with eating utensils provided by the seller,
including plates, knives, forks, spoons, glasses,
cups, napkins, or straws;
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6. "Soft drinks" shall mean any nonalcoholic beverages that
contain natural or artificial sweeteners. Soft drinks shall not
include beverages that contain:
a. milk or milk products,
b. soy, rice, oat, or similar milk substitutes, or
c. greater than fifty percent ( 50%) of vegetable or fruit
juice by volume; and
7. "Tobacco" shall mean cigarettes, cigars, chewing or pipe
tobacco, or any other item that contains tobacco.
B. The retail sale o f food and food ingredients, sold for human
consumption off the premises whe re sold, shall be exempt from the
tax imposed by Section 1354 of Title 68 of the Oklahoma Statutes
except:
1. Starting July 1, 2022 , and ending not later than June 30,
2023, three percent (3%) of the gross receipts upon which the tax is
levied; and
2. Starting July 1, 2023, and ending not later than June 30,
2024, one and one-half percent (1.5%) of the gros s receipts upon
which the tax is levied .
C. The exemption provided for in subsection B of this section
shall not apply to any county or municipal sale s tax imposed
pursuant to law by a county or m unicipality.
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D. The Oklahoma Tax Commission shall promulgate any necessary
rules to implement the provisions of this section in accor dance with
the Streamlined Sales and Use Tax Agreement.
SECTION 2. AMENDATORY 68 O.S. 2021, Sect ion 1370, is
amended to read as follows:
Section 1370. A. In accordance with the provisions of Section
1 1354.36 of this act title, any county of this state may levy a
sales tax of not to exceed two percent ( 2%) upon the gross proceeds
or gross receipts derived from all sales or services in the county
upon which a consumer 's sales tax is levied by this state except as
authorized in subsection C of Section 1 of this act . Before a sales
tax may be levied by the county, the imposition of the tax shall
first be approved by a majority of the registered voters of the
county voting thereon at a special election called by the board of
county commissioners or by initiative petition signed by not less
than five percent (5%) of the registered voters of the county wh o
were registered at the time of the last general election. However,
if a majority of the registered voters of a county voting fail t o
approve such a tax, the board of county commissioners shall not call
another special election for such purpose for six ( 6) months. Any
sales tax approved by the registered voters of a county shall be
applicable only when the point of sale is within the territorial
limits of such county. Any sales tax levied or any change in th e
rate of a sales tax levied pursuant to the p rovisions of this
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section shall become effective on the first day of the calendar
quarter following approval by the voters of the coun ty unless
another effective date, which shall also be on the first day of a
calendar quarter, is specified in the ordinanc e or resolution
levying the sales tax or changing the rate of sales tax.
B. The Oklahoma Tax Commission shall give notice to all vend ors
of a rate change at least sixty (60) days prior to the effective
date of the rate change. Provided, for purchases fro m printed
catalogs wherein the purchaser computed the tax based upon local tax
rates published in the catalog, the rate change shall n ot be
effective until the first day of a calendar quarter after a minimum
of one hundred twenty (120) days ' notice to vendors. Failure to
give notice as required by this section shall delay the effective
date of the rate change to the first day of the nex t calendar
quarter.
C. Initiative petitions calling for a special election
concerning county sales tax proposals shall be in accordance with
Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
Statutes. Petitions shall be submitted to the office of county
clerk for approval as to form prior to circulation. Following
approval, the petitioner shall have ninety (90) days to secure the
required signatures. After securing the requisite number of
signatures, the petitioner shall submit the petition a nd signatures
to the county clerk. Following the verification of signatures , the
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county clerk shall present the petition to the board of county
commissioners. The special election shall be held within sixty (60)
days of receiving the petition. The ballo t title presented to the
voters at the special election shall be identical t o the ballot as
presented in the initiative pe tition.
D. Subject to the provisions of Section 1357.10 of this title
and except as provided in subsection C of Section 1 of this act , all
items that are exempt from the state sales tax shall be exempt from
any sales tax levied by a county.
E. Any sales tax which may be levied by a county shall be
designated for a particular purpose. Such purposes may include, but
are not limited to, projects owned by the state, any agency or
instrumentality thereof, the coun ty and/or any political subdivision
located in whole or in part within such county, regional
development, economic development, common education, general
operations, capital improv ements, county roads, weather modification
or any other purpose deemed, by a majority vote of the county
commissioners or as stated by initiative petition, to be necessary
to promote safety, security and the general well -being of the
people, including any authorized purpose pursuant to the Oklahoma
Community Economic Development P ooled Finance Act. The county shall
identify the purpose of the sales tax when it is presented to the
voters pursuant to the provisions of subsection A of this section.
Except as otherwise provided in this section and except as required
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by the Oklahoma Community Economic Development Pooled Finance A ct,
the proceeds of any sales tax levied by a county shall be deposited
in the general revenue or sales tax revolving fund of the coun ty and
shall be used only for the purpose for which such sales tax was
designated. If the proceeds of any sales tax levie d by a county
pursuant to this section are pledged for the purpose of retiring
indebtedness incurred for the specific purpose for whic h the sales
tax is imposed, the sales tax shall not be repealed until such t ime
as the indebtedness is retired. However, in no event shall the life
of the tax be extended beyond the duration approved by the voters of
the county.
F. 1. Notwithstanding an y other provisions of law, any county
that has approved a sales tax for the construction, support or
operation of a county hospital may continue to collect such tax if
such hospital is subsequently sold. Such collection shall only
continue if the county r emains indebted for the past construction,
support or operation of such hosp ital. The collection may continue
only until the debt is repaid or for the stated term of the sales
tax, whichever period is shorter.
2. If the construction, support or operation of a hospital is
funded through the levy of a county sales tax pursuant to this
section and such hospital is subsequently sold, the county levying
the tax may dissolve the governing board of such hospital following
the sale. Upon the sale of the hospital and dissolution of any
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governing board, the county is relieved of any futur e liability for
the operation of such hospital .
G. Proceeds from any sales tax levied that is designated to be
used solely by the sheriff for the operation of the office of
sheriff shall be placed in the special revenue account of the
sheriff.
H. The life of the tax could be limited or unlimited in
duration. The county shall identify the duration of the tax when it
is presented to the voters pursuant to the provisions of subsecti ons
A and C of this section. The maximum duration of a levy imposed
pursuant to Section 891.14 of Title 62 of the Oklahom a Statutes
shall be no longer than allowed pursuant to the Oklahoma Community
Economic Development Pooled Finance Act.
I. Except for the levies imposed pursuant to Section 891.14 of
Title 62 of the Oklahoma St atutes, there are hereby created one or
more county sales tax revolving funds in each county which levies a
sales tax under this section if any or all of the proceeds of such
tax are not to be deposited in the general revenue fund of the
county or comply with the provisions of subsection G of this
section. Each such revolving fund shall be designated for a
particular purpose and shall consist of all monies generated by such
sales tax which are designated for such purpose. Monies in such
funds shall only be expended for the purposes specifically
designated as required by this section. A county sales tax
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revolving fund shall be a continuing fund not subject to fiscal year
limitations.
J. In the case of a levy submitted for voter approval pursuant
to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
by a county shall not become valid until the ordinance or resolution
setting the rate of the levy shall have been approv ed by a majority
vote of the registered voters of each such county voting on such
question at a special election. Electio ns conducted pursuant to
questions submitted pursuant to Section 891.14 of Title 62 of the
Oklahoma Statutes shall be conducted on the same date or in a
sequence that provides that the last vote required for ap proval by
all participating counties or munici palities occurs not later than
thirty (30) days after the date upon which the first vote occurs.
SECTION 3. AMENDATORY 68 O.S. 2021, Section 1370.1, is
amended to read as follows:
Section 1370.1 Notwithstanding the provisions of Section 1370
of this title and in accordance with the provisions of Section 1
1354.36 of this act title, any county of this state with a
population of more than three hundred thousand (300,000) according
to the latest Federal Decennial Census may levy a sa les tax of not
to exceed one-half of one percent ( 1/2 of 1 0.5%) upon the gross
proceeds or gross receipts derived from all sales or s ervices in the
county upon which a consumer 's sales tax is levied by the sta te,
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except as provided in subsection C of Sect ion 1 of this act, subject
to the following conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of constructing and equipping county jail facilities or
capital improvements for j ail facilities only;
2. Before a sales tax ma y be levied by the county, the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voti ng thereon at a special election
called by resolution of the board of county commissioners;
3. Such sales tax can only be imposed for a period not to
exceed three (3) years; and
4. Any special election called pursuant to this section must be
held no later than January 1, 1992.
SECTION 4. AMENDATORY 68 O .S. 2021, Section 1370.2, is
amended to read as follows:
Section 1370.2 Notwithstanding the provisions of Section 1370
of this title and in accordance with the provisions of Section 1
1354.36 of this act title, any county of this state with a
population of more than three hundred thousand (300,000) a ccording
to the latest Federal Decennial Census may levy a sales tax of not
to exceed one percent (1%) upon the gross proceeds or gros s receipts
derived from all sales or services in the county upon which a
consumer's sales tax is levied by the state, exce pt as provided in
paragraph 8 of Section 1357 of this title and except as provided in
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subsection C of Section 1 of this act , subject to the following
conditions:
1. The proceeds of such sales tax and the inter est thereon
shall be used solely for the purpo se of development of qualified
aircraft maintenance or manufacturing facilities and any necessary
infrastructure changes or airport im provements directly related to
such facilities located within the county to be owned by the county,
any municipality withi n the county or a public trust in which the
county or municipality is a beneficiary. However, such municipality
or public trust shall hold such title for the use and benefit of the
residents of the entire coun ty in which the tax is levied and
collected. The acceptance by the municipality or public trust of
any title or tax proceeds shall be deemed an acceptance of this
requirement. The board of county commissioners of any county that
has approved the impositi on of a sales tax pursuant to this section
may not commence the collection of any such sales tax until a
qualified aircraft maintenance or manufacturing facility has signed
an agreement to locate such facility within the county. As used in
this paragraph, "qualified aircraft maintenance or manufactur ing
facility" means a new or expanding facility primarily engaged in
aircraft repair, building or rebuilding, whether or not on a fact ory
basis, whose total cost of construction exceeds the sum of One
Hundred Fifty Million Dollars ($150,000,000.00) and whi ch employs at
least one thousand (1,000) new full -time-equivalent employees, as
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certified by the Employment Security Commission upon c ompletion of
the facility;
2. Before a sales tax may be levied by the count y, the
imposition of the tax shall first be ap proved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. The monies collected pursuant to the provisions of this
section shall only be expended by the bo ard of county commissioners
to finance an amount not to exceed twenty -five percent (25%) of the
total cost of construction of the qual ified aircraft maintenance or
manufacturing facility and any necessary infra structure changes or
airport improvements dire ctly related to such facility; and
4. Such sales tax can only be imposed for a period not to
exceed three (3) years.
SECTION 5. AMENDATORY 68 O.S. 2021, Section 1370.2A, is
amended to read as follows:
Section 1370.2A Notwithstan ding the provisions of Section 1370
of this title and in accordance with the provisions of Section 1
1354.36 of this act title, any county of this state with a
population of more than three hundred thousand (30 0,000) according
to the latest Federal Decenni al Census may levy a sales tax of not
to exceed one percent (1%) upon the gross proceeds or gross receipts
derived from all sales or s ervices in the county upon which a
consumer's sales tax is levied by the sta te, except as provided in
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subsection C of Sect ion 1 of this act, subject to the following
conditions:
1. The proceeds of such sales tax and the interest thereon
shall be used solely for the purpose of acquisition and development
of qualified manufacturing facilities, related machinery and
equipment and any necessary infrastructure changes or improvements
related to such facilities located within the county to be owned by
the county, any municipality within the county or a public trust in
which the county or municipality is a beneficiary. However, suc h
municipality or public trust shall hold such title for the use and
benefit of the residents of the entire county in which the tax is
levied and collected. The acceptance by the municipality or public
trust of any title or tax proceeds shall be deemed an acceptance of
this requirement. The board of county commissioners of any county
that has approved the imposition of a sales tax purs uant to this
section may not commence the collection of any such sales tax u ntil
a qualified manufacturing facility has si gned an agreement to locate
such facility within the county. As used in this paragraph,
"qualified manufacturing facility " means a new or expanding facility
primarily engaged in manufacturing, production and/o r assembly of
consumer or other products, whet her or not on a factory basis, whose
total cost of acquisition and construction exceeds the sum of
Fifteen Million Dollars ($15,000,00 0.00) and which will employ at
least one thousand (1,000) new full -time-equivalent employees, as
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certified by the Employme nt Security Commission within three (3)
years after the completion of the facility;
2. Before a sales tax may be levied by the county , the
imposition of the tax shall first be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners in the
manner provided by law for county elections;
3. The monies collected pursuant to the provisions of this
section shall only b e expended by the board of county commissioner s
to finance an amount not to exceed twenty -five percent (25%) of the
total cost related to the acquisition and construction of the
qualified manufacturing facility, related machinery and equipment
and any necessary infrastructure changes or improvements d irectly
related to such facility; and
4. Such sales tax can only be imposed for a period not to
exceed three (3) years.
SECTION 6. AMENDATORY 68 O.S. 2021, Section 1370.4, is
amended to read as follows:
Section 1370.4 Notwithsta nding the provisions of Section 1370
of this title and in accordance with the provisions of Section 1
1354.36 of this act title, any county of this state with a
population of more than three hundred thousand (3 00,000) according
to the latest Federal Decenn ial Census may levy a sales tax of not
to exceed one percent (1%) upon the gross proceeds or gross receipts
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derived from all sales or services in the county upon which a
consumer's sales tax is levied by the st ate, except as provided in
paragraph 8 of Section 1357 of this title and except as provided in
subsection C of Section 1 of this act , subject to the following
conditions:
1. The proceeds of such sales tax and the interest thereon
shall be used solely for the purpose of development of facilities
for lease or conveyance to the government of the United States and
any necessary infrastructure changes or improvements directly
related to such facilities located within the county. The board of
county commissioners of any county that has approved the imposit ion
of a sales tax pursuant to this section may not commence the
collection of any such sales tax until an agreement to locate such
facility within the county is reached;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall f irst be approved by a majority of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. The monies collected pursuant to the pro visions of this
section shall only be expended by the board of county commissioners
to finance the construction of the facility and any necessary
infrastructure changes or improvem ents directly related to such
facility; and
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4. Such sales tax can only be i mposed for a period not to
exceed three (3) years.
SECTION 7. AMENDATORY 68 O.S. 2021, Section 1370.5, is
amended to read as follows:
Section 1370.5 A. Notwithstanding the provisions of Section
1370 of this title and in accordan ce with the provisions of Section
1 1354.36 of this act title, any county of this state with a
population of more than three hundred thousand (300,000) according
to the latest Federal Decennial Census may levy a sales tax of not
to exceed one percent (1%) upon the gross proceeds or gross receipts
derived from all sales or services in the county upon which a
consumer's sales tax is levied by the state, except as provided in
paragraph 8 of Section 1357 of this title and except as provided in
subsection C of Section 1 of this act, subject to the following
conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of funding one or more economic development proje cts;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majority o f the
registered voters of the county voting thereon at a special election
called by resolution of the board of county commissioners;
3. Such sales tax can only be imposed for a period of not to
exceed three (3) years; and
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4. Any special election called pursuant to this section must be
held no later than March 1, 1994.
B. The board of county commissioners shall create a limited -
purpose fund and deposit therein any revenue generated by any sales
tax levied pursuant to the provisions of subsection A of thi s
section. The fund shall be placed in an insured or collateralized
interest-bearing account and the interest which accrues to the fu nd
shall be retained in the fund. Monies in the limited -purpose fund
shall be expended only as accumulated and only for t he purpose
specifically described in paragraph 1 of subsection A of this
section.
C. As used in this section, "economic development p roject"
means any project which the board of county commissioners determines
will promote, enhance or improve economic con ditions within the
county.
SECTION 8. AMENDATORY 68 O.S. 2021, Section 1370.6, is
amended to read as follows :
Section 1370.6 A. Notwithstanding the provisions of Section
1370 of this title and in accordance with Section 1 1354.36 of this
act title, any county of this state with a population of more than
three hundred thousand (300,000) according to the latest Federal
Decennial Census may levy a sales tax of not to exceed one percent
(1%) upon the gross proceeds or gross receipts deriv ed from all
sales or services in the county upon which a consumer 's sales tax is
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levied by the state, except as provided in parag raph 8 of Section
1357 of this title and except as provided in subsection C of Section
1 of this act, subject to the following conditions:
1. The proceeds of such sales tax shall be used solely for the
purpose of funding one or more projects for new publi c improvements;
2. Before a sales tax may be levied by the county, the
imposition of the tax shall first be approved by a majo rity of the
registered voters of the county voting thereon at a special election
called by resolution of the board of county comm issioners;
3. Such sales tax can only be imposed for a period of not to
exceed three (3) years; and
4. Any special election c alled pursuant to this section must be
held no later than March 1, 1994.
B. The board of county commissioners shall create a lim ited-
purpose fund and deposit therein any revenue generated by any sales
tax levied pursuant to the provisions of subsection A of this
section. The fund shall be placed in an insured interest -bearing
account and the interest which accrues to the fund shal l be retained
in the fund. Monies in the limited -purpose fund shall be expe nded
only as accumulated and only for the purpose s pecifically described
in paragraph 1 of subsection A of this section.
C. As used in this section:
1. "Projects for new public i mprovements" means any new and
beneficial change, addition, betterment or en hancement of or upon
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any real property belonging to a public agency, intended to enhance
the value, beauty or utility of said property or to adapt it to new
or further purposes; an d
2. "Public agency" means the State of Oklahoma and any county,
city, public trust or other public entity specifically create d by
the statutes of the State of Oklahoma or as a result of statutory
authorization contained therein.
SECTION 9. AMENDATORY 68 O.S. 2021, Section 1370.7, is
amended to read as f ollows:
Section 1370.7 A. As used in this section , the following terms
shall have the following meanings:
1. "Agency" includes but is not limited to extant
transportation operat ing systems;
2. "Operation" includes but is not limited to leasing services ,
contracting for services, planning, staffing, ope rating, financing,
construction and maintenance of a transportation or regional
economic project regardless of the source of fund ing;
3. "Regional district" means a specific governing and
assessment district created out of any combination of any portions
of any cities, towns or counties, either equal to or less than the
entirety of the boundaries of such cities, towns or counties;
4. "Transportation project or system " includes but is not
limited to transit, commuter and passenger rail service or
operations or intermodal facilities, the components of which
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contribute to a system that incorporates transportation modes of
highway, air, rail and waterway together in order to facilitate the
movement of commerce ; and
5. "User fees" means farebox revenues.
B. Any combination of cities, towns and counties, or their
agencies, by resolution of their governing boards, may jointly
create a transportation authority or regional economic development
authority and a regi onal district pursuant to the provisions of
Section 176 of Title 60 of the Oklahoma Statutes for the purpose of
planning, financing, construction, maintenance and operation of
transportation or regional economic development projects located
within the boundaries of such regional district. An authority
created pursuant to the provisions of this subsection shall have the
powers granted pursuant to the provisions of Section 176 of Tit le 60
of the Oklahoma Statutes in addition to the powers granted pursuant
to the provisions of this section except that no tran sportation or
regional economic development authority created pursuant to the
provisions of this subsection shall have any power or authority to
exercise or to attempt to exercise any powers of eminent dom ain.
The combination of cities, towns and counties , or their agencies,
creating the authority shall be designated the beneficiary of the
authority. The boundaries of the authorit y shall be coterminous
with the boundaries of the regional district. The au thority shall
be governed by a board of directors a ppointed by the governing
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boards of the cities, towns or counties creating such authority, and
the representative makeup of the b oard and the number of directors,
their duties and terms of service shall be determined by such
governing boards creating such authority.
C. Any transportation authority or regional economic
development authority created pursuant to the provisions of
subsection B of this section may levy a sales tax of not to exceed
two percent (2%) upon the gross proceeds or gross receipts deriv ed
from all sales or services in the regional district comprising the
authority upon which a consumer 's sales tax is levied by th is state.
Before a sales tax may be levied by the authority, the imposition of
the tax shall first be approved by a majority o f votes cast by the
registered voters within the boundaries of the regional district
comprising the authority voting thereon at a special election
jointly called by the governing boards of the cities, town s and
counties comprising the authority. Provided, if a majority of the
votes cast by registered voters of an authority voting fail to
approve such a tax, the governing boards of such cities, towns and
counties shall not jointly call another special elect ion for such
purpose for at least six (6) months. Any sales tax approved by the
registered voters of an authority shall be applicable only when the
point of sale is within the bou ndaries or limits of the authority
and provided no other sales tax is being levied pursuant to this
section in the same regiona l district during the same time period.
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D. All items that are exempt from the state sales tax shall be
exempt from any sales tax levied pursuant to the provisions of this
section; however, this subsection shall not apply to the exemption
provided for in subsection C of Section 1 of this act .
E. Any sales tax which may be levied pursuant to the provisions
of this section shall be d esignated for the purposes of planning,
financing, construction, maintenance and operation of transportation
or regional economic development projects within the boundaries of
the authority. The authority shall identify the purpose of the
sales tax when it is presented to the voters pursuant to the
provisions of this section. Th e proceeds of any sales tax levied by
an authority shall be used only for the purposes for which the sales
tax was designated.
F. The authority shall identify the specific duratio n of the
tax when it is presented to the voters pursuant to the provisions o f
this section and shall include specific language in the ballot title
disclosing the duration of the tax. A levy by a transportation
authority or a regional economic development authority shall have a
maximum duration of thirty (30) years if the proceeds from the tax
are pledged to the repayment of indeb tedness, a maximum duration of
twenty (20) years if the proceeds from the tax are to be used for
expenditures other than the repa yment of indebtedness, or for as
long as such authority is in operation.
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G. An authority created pursuant to the provisions of
subsection B of this section may utilize the provisions of the Local
Development Act as it relates to the financing of such
transportation or regional economic development projects.
H. A transportation o r regional economic development authority
created pursuant to this section shall exist for the duration of the
operation and no longer than one (1) year after cessation of the
operation.
I. Providing that at cessation of operations the proceeds of
any tax levied by an authority pursuant to this section ar e pledged
for the purpose of retiring indebtedness incurred for the specific
purpose for which the tax is imposed, the tax shall not be repealed
until such time as the indebtedness is retired. In no event shall
the life of the tax be extended beyond the d uration approved by the
voters of the authority.
J. If the revenue collected from any taxes levied by the
authority exceeds the amount necessary for payment of any and all
expenses incurred by the authori ty in the planning, financing,
construction, mainte nance and operation of transportation or
regional economic development projects, the excess funds shall be
apportioned to the gen eral funds of the cities, towns and counties
comprising the authority in pro portion to the population of each
city, town and county within the regional district.
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K. A transportation authority created pursuant to the
provisions of subsection B of this sect ion may provide for the
financing of a transportation system utilizing any r evenue measures
available pursuant to subsections B through J of this section in
combination with revenue derived from user fees.
SECTION 10. AMENDATORY 68 O.S. 2021, Section 1370.8, is
amended to read as follows:
Section 1370.8 A. In accordance with the provisions of Section
1 1354.36 of this act title, any combination of cities, towns and
counties, by resolution of their governing boards, may jointly
create a hospital authority pursuant to the provisions of Section
176 of Title 60 of the Oklahoma Statutes for the purpose of
planning, financing and constructing hospitals or related medical
facilities located within the boundaries of such cities, towns or
counties. An authority created pursuant to the provisions of this
subsection shall have the powers granted pursuant to the prov isions
of Section 176 of Title 60 of the Oklahoma Statutes in addition to
the powers granted pursuant to the provisions of this s ection. The
combination of cities, towns and counties creating the authorit y
shall be designated the beneficiary of the author ity. The
boundaries of the authority shall be coterminous with the boundaries
of the cities, towns or counties creating the auth ority.
B. Any hospital authority created pursuant to the provisions of
subsection A of this section may levy a sales tax of no t to exceed
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two percent (2%) upon the gross proceeds or gross receipts derived
from all sales or services in the cities, towns an d counties
comprising the authority upon which a consumer 's sales tax is levied
by this state. Before a sales tax may be levie d by the authority,
the imposition of the tax shall first be approved by a majority of
the registered voters within the boundarie s of each of the cities,
towns and counties comprising the authority voting thereon at a
special election jointly called by the governing boards of the
cities, towns and counties comprising the authority. Provided, if a
majority of the registered voters o f an authority voting fail to
approve such a tax, the governing boards of su ch cities, towns and
counties shall not jointly cal l another special election for such
purpose for at least six (6) months. Any sales tax approved by the
registered voters of an a uthority shall be applicable only when the
point of sale is within the bound aries or limits of the authority.
C. All items that are exempt from the state sales tax shall be
exempt from any sales tax levied pursuant to the provisions of this
section; however, this subsection shall not apply to the exemption
provided for in subsect ion C of Section 1 of this act.
D. Any sales tax which may be levied pursuant to the provisions
of this section shall be designated for the purposes of planning,
financing and constructing hospitals or related medical facilities
within the boundaries of t he authority. The authority shall
identify the purpose of the sales tax when it is presented to the
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voters pursuant to the provisions of this section. The proceeds of
any sales tax levied by an authority shall be used only for the
purposes for which the sales tax was designated.
E. The authority shall i dentify the duration of the tax when it
is presented to the voters pursuant to the provisions of this
section.
F. An authority created pursuant to the provisions of
subsection A of this section may utiliz e the provisions of the Local
Development Act as it relates to the financing of such hospitals or
related medical facilities.
G. An authority created pursuant to the provisions of
subsection A of this section shall be dissolved:
1. At such time as the pl anning, financing and constructing of
the hospitals or related medical facilities within the boundaries of
the authority is completed; and
2. At such time as the revenue collected from any taxes levied
by the authority is sufficient for payment of any and all expenses
incurred by the authority in the plan ning, financing and
constructing of a hospital or related medical facility.
H. If the proceeds of any tax levied by an authority pursuant
to this section are pledged for the purpose of retiring indebtedne ss
incurred for the specific purpose for which the tax is imposed, the
tax shall not be repealed until such time as the indebtedness is
retired. Notwithstanding any other provisio ns of law, any county or
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hospital authority that has approved a sales tax fo r the support and
operation of a county hospital ma y continue to collect such tax if
such hospital is subsequently sold. Such collection shall only
continue if the county or hospi tal authority remains indebted for
the support and operation of such hospita l and only until the debt
is repaid or for the stat ed term of the tax, whichever period is
shorter. In no event shall the life of the tax be extended beyond
the duration approved by the voters of the authority.
I. If the revenue collected from any taxes levied by the
authority exceeds the amount necessar y for payment of any and all
expenses incurred by the authority in the planning, financing and
constructing of hospitals or relat ed medical facilities, the excess
funds shall be apportioned to the general funds of the cities, towns
and counties comprising the authority in proportion to the
population of each city, town and county.
J. If the construction, support, or operation of a hospital is
funded through the levy of a sales tax by a county or hospital
authority pursuant to this section and such hospital is subsequently
sold, the county or hospital authority levying the tax may dissolve
the governing board of such hospital at the time of the sale. When
the sale of the hospital and dissolution of any gove rning board is
final, the county or hospital author ity is thereby relieved of any
liability for the operation of such hospital.
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SECTION 11. AMENDATORY 68 O .S. 2021, Section 2701, is
amended to read as follows:
Section 2701. A. Any incorporated city or town in this state
is hereby authorized to assess, levy, and collect taxes for general
and special purposes of municipal government as the Legislature may
levy and collect for purposes of state government, subject to the
provisions of subsection F of this section and subsection C of
Section 1 of this act, except ad valorem property taxes. Provided:
1. Taxes shall be uniform upon the same class subjects, and any
tax, charge, or fee levied upon or measured by income or receipts
from the sale of products or services shall be uniform up on all
classes of taxpayers;
2. Motor vehicles may be taxed by the city or town only when
such vehicles are primarily used or lo cated in such city or town for
a period of time longer than six (6) months o f a taxable year;
3. The provisions of this sectio n shall not be construed to
authorize imposition of any tax upon persons, firms, or corporations
exempted from other taxation und er the provisions of Sections 348.1,
624 and 321 of Title 36 of the Oklahoma Statutes, by reason of
payment of taxes imposed un der such sections;
4. Cooperatives and communications companies are hereby
authorized to pass on to their subscribers in the inc orporated city
or town involved, the amount of any special municipal fee, ch arge or
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tax hereafter assessed or levied on or coll ected from such
cooperatives or communications companies;
5. No earnings, payroll or income taxes may be levied on
nonresidents of the cities or towns levying such tax;
6. The governing body of any city or town shall be prohibited
from proposing taxing o rdinances more often than three times in any
calendar year, or twice in any six -month period; and
7. Any revenues derived from a tax authorized by this
subsection not dedicated to a limited purpose shall be deposited in
the municipal general fund.
B. A sales tax authorized in subsection A of this section may
be levied for limited purposes specified in the ordinance levying
the tax. Such ordinance shall be submitted to the voters for
approval as provided in Section 2705 of this title. Any sales tax
levied or any change in the rate of a sales tax levied pursuant to
the provisions of this section shall become effective on the first
day of the calendar quarter following approval by the voters of the
city or town unless another effective date, which shall als o be on
the first day of a calendar quarter, is specified in the ordinance
levying the sales tax or changing the rate of sales ta x. Such
ordinance shall describe with specificity the projects or
expenditures for which the limited-purpose tax levy would be made.
The municipal governing body shall create a limited -purpose fund and
deposit therein any revenue generated by any tax lev ied pursuant to
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this subsection. Money in the fund shall be accumulated fro m year
to year. The fund shall be placed in an ins ured interest-bearing
account and the interest which accrues on the fund shall be retained
in the fund. The fund shall be nonfis cal and shall not be
considered in computing any levy when the municipality makes its
estimate to the excise board for needed a ppropriations. Money in
the limited-purpose tax fund shall be expended only as accumulated
and only for the purposes specificall y described in the taxing
ordinance as approved by the voters.
C. The Oklahoma Tax Commission shall give notice to all vendors
of a rate change at least sixty (60) days prior to the effective
date of the rate change. Provided, for purchases from printed
catalogs wherein the purchaser computed the tax based upon local tax
rates published in the catalog, the rate change shall not be
effective until the first day of a calendar quarter after a minimum
of one hundred twenty - (120) days' notice to vendors. Fai lure to
give notice as required by this section shall delay the effective
date of the rate change to the first day of the next c alendar
quarter.
D. The change in the boundary of a municipality shall be
effective, for sales and use tax purposes only, on th e first day of
a calendar quarter after a minimum of sixty (60) days ' notice to
vendors.
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E. If the proceeds of any sales tax le vied by a municipality
pursuant to subsection B of this section are being used by the
municipality for the purpose of retiring i ndebtedness incurred by
the municipality or by a public trust of which the m unicipality is a
beneficiary for the specific purpos e for which the sales tax was
imposed, the sales tax shall not be repealed until such time as the
indebtedness is retired. Howe ver, in no event shall the life of the
tax be extended beyond the duration a pproved by the voters of the
municipality. The prov isions of this subsection shall apply to all
sales tax levies imposed by a municipality and being used by the
municipality for the purposes set forth in this subsection prior to
or after July 1, 1995.
F. The sale of an article of clothing or footwear desi gned to
be worn on or about the human body shall be exempt from the sales
tax imposed by any incorporated city or town, in accor dance with and
to the extent set forth in Section 1357.10 of this title.
G. Any municipality that levies a dedicated tax pursua nt to a
vote of the people for the purpose of funding public safety or any
other governmental purpose shall not redirect all or a portion of
the dedicated tax revenue to another purpose without a vote of the
people authorizing such action.
SECTION 12. This act shall become effective July 1, 2022.
SECTION 13. It being immediately necessary for the pre servation
of the public peace, health or safety, an emergency is hereby
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-2-8565 AQH 12/29/21