Oklahoma 2022 Regular Session

Oklahoma House Bill HB3637 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB3637 SFLR Page 1
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	3	+	ENGR. H. B. NO. 3637 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 6, 2022
31		-	AS AMENDED
32		-
33	28		ENGROSSED HOUSE
34		-	BILL NO. 3637 By: Dempsey and McDugle of the
35		-	House
	29	+	BILL NO. 3637 By: Dempsey of the House
36	30
37	31		and
38	32
39	33		Bullard of the Senate
40		-
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44	37
45	38		[ revenue and taxation - sales tax exemptions for
46	39		agriculture - effective date ]
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51	44		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
52	45		SECTION 1. AMENDATORY 68 O.S. 2021, Sect ion 1358, is
53	46		amended to read as follows:
54	47		Section 1358. Exemptions – Agriculture.
55	48		A. There are hereby specifically exempted from the tax levied
56	49		by Section 1350 et seq. of this title:
57	50		1. Sales of agricultural prod ucts produced in this state by the
58	51		producer thereof directly to the consumer or user when suc h articles
59	52		are sold at or from a farm and not from some other place of
60	53		business, as follows:
61	54		a. farm, orchard or garden products, and
	55	+	b. dairy products sold by a d airy producer or farmer who
	56	+	owns all the cows from which the dairy products
	57	+	offered for sale are produced;
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63		-	SENATE FLOOR VERSION - HB3637 SFLR Page 2
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	59	+	ENGR. H. B. NO. 3637 Page 2 1
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89		-	b. dairy products sold by a d airy producer or farmer who
90		-	owns all the cows from which the dairy products
91		-	offered for sale are produced;
92	84		provided, the provisions of this paragraph shall not be construed as
93	85		exempting sales by florists, nursery operators or chicken
94	86		hatcheries, or sales o f dairy products by any other business exc ept
95	87		as set out herein;
96	88		2. Livestock, including cat tle, horses, mules o r other domestic
97	89		or draft animals, sold by the producer by private treaty or at a
98	90		special livestock sale;
99	91		3. Sale of baby chicks, turkey poult s and starter pullets used
100	92		in the commercial production of chickens, turkeys and eggs, provid ed
101	93		that the purchaser certifies, in writing, on the copy of the invoice
102	94		or sales ticket to be retained by the vendor that the pullets will
103	95		be used primarily for eg g production;
104	96		4. Sale of salt, grains, ta nkage, oyster shells, mineral
105	97		supplements, limeston e and other generall y recognized animal feeds
106	98		for the following purposes and subject t o the following limitations:
107	99		a. feed which is fed to poultry and livestock, i ncluding
108	100		breeding stock and wool -bearing stock, for the purpose
109	101		of producing eggs, poultry, m ilk or meat for huma n
110	102		consumption,
111	103		b. feed purchased in Oklahoma for the purpose of be ing
112	104		fed to and which is fed by the purchaser to horses,
	105	+	mules or other domest ic or draft animals used directly
	106	+	in the producing and marketing of agricultural
	107	+	products, and
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114		-	SENATE FLOOR VERSION - HB3637 SFLR Page 3
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	109	+	ENGR. H. B. NO. 3637 Page 3 1
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140		-	mules or other domest ic or draft animals used directly
141		-	in the producing and marketing of agricultural
142		-	products, and
143	134		c. any stock tonics, water purifying products, stock
144	135		sprays, disinfectants or other such agricultural
145	136		supplies.
146	137		"Poultry" shall not be construed to include any f owl other than
147	138		domestic fowl kept and rais ed for the market or production of eggs.
148	139		"Livestock" shall not be construed to include any pet animals such
149	140		as dogs, cats, birds or such other fur-bearing animals. This
150	141		exemption shall only be granted and extende d where the purchaser of
151	142		feed that is to be used and in fact is used for a purpose that would
152	143		bring about an exemption hereunder executes an invoice or sales
153	144		ticket in duplicate o n a form to be prescribed by the Oklahoma Tax
154	145		Commission. The purchaser may demand and receive a copy of the
155	146		invoice or sales ticket and the vendor shall retain a copy;
156	147		5. Sales of items t o be and in fact used in the production of
157	148		agricultural products. Sale of the following items shall be subject
158	149		to the following limitations:
159	150		a. sales of agricultural fertilizer to any person
160	151		regularly engaged, for profit, in the busine ss of
161	152		farming or ranching,
162	153		b. sales of agricultural fertilizer to any person engaged
163	154		in the business of applying such materials on a
	155	+	contract or custom basis to la nd owned or leased and
	156	+	operated by persons regularly engaged, for profit, in
	157	+	the business of farming or ranching. In addition to
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165		-	SENATE FLOOR VERSION - HB3637 SFLR Page 4
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	159	+	ENGR. H. B. NO. 3637 Page 4 1
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191		-	contract or custom basis to la nd owned or leased and
192		-	operated by persons regularly engaged, for profit, in
193		-	the business of farming or ranching. In addition to
194	184		providing the vendor proof of eligibility as prov ided
195	185		in Section 1358.1 of this title, the purchaser shall
196	186		provide the name or names of such owner or lessee and
197	187		operator and the location of the lands on which said
198	188		materials are to be appli ed to each such land,
199	189		c. sales of agricultural fertilizer, pharmac euticals and
200	190		biologicals to persons engaged in the business of
201	191		applying such materials on a contract or custom basis
202	192		shall not be considered to be sales to contractors
203	193		under this article, an d said sales shall not be
204	194		considered to be taxable sales within th e meaning of
205	195		the Oklahoma Sales Tax Code. As used in this section,
206	196		"agricultural fertilizer", "pharmaceuticals" and
207	197		"biologicals" mean any substance sold and used for
208	198		soil enrichment or soi l corrective purposes or for
209	199		promoting the growth and productivity of plants or
210	200		animals,
211	201		d. sales of agricultural seed or plants to any person
212	202		regularly engaged, for profit, in the busi ness of
213	203		farming or ranching. This section shall no t be
214	204		construed as exempting from sales tax, seed which is
	205	+	packaged and sold for use in noncommercial flower and
	206	+	vegetable gardens, and
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216		-	SENATE FLOOR VERSION - HB3637 SFLR Page 5
217		-	(Bold face denotes Committee Amendments) 1
	208	+	ENGR. H. B. NO. 3637 Page 5 1
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242		-	packaged and sold for use in noncommercial flower and
243		-	vegetable gardens, and
244	233		e. sales of agricultural che mical pesticides to any
245	234		person regularly engaged, for profit, in the business
246	235		of farming or ranching. For the pu rposes of this
247	236		subparagraph, "agricultural chemical pesticides " shall
248	237		include any substance or mixture of substances
249	238		intended for preventing, d estroying, repelling or
250	239		mitigating any insect, snail, slug, rodent, bird,
251	240		nematode, fungus, weed or any other for m of
252	241		terrestrial or aquatic plant or animal life or virus,
253	242		bacteria or other microorganism, except viruses,
254	243		bacteria or other microorganisms on or in living man,
255	244		or any substance or mix ture of substances intended for
256	245		use as a plant regulator, defoliant or desiccant.
257	246		The exemption provided in this paragraph shall only be granted
258	247		and extended to the purchaser where the items are to be used and in
259	248		fact are used in the production of agricult ural products;
260	249		6. Sale of farm machinery, repair p arts thereto or fuel , oil,
261	250		lubricants and other substances used for operation and main tenance
262	251		of the farm machinery to be used directly on a farm or ranch in the
263	252		production, cultivation, planting, sowing, harvesting, processing,
264	253		spraying, preservation or i rrigation of any liv estock, poultry,
265	254		agricultural or dairy products produced from such lands. The
	255	+	exemption specified in this paragraph shall apply to such farm
	256	+	machinery, repair parts or fuel, oil, lubri cants and other
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267		-	SENATE FLOOR VERSION - HB3637 SFLR Page 6
268		-	(Bold face denotes Committee Amendments) 1
	258	+	ENGR. H. B. NO. 3637 Page 6 1
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293		-	exemption specified in this paragraph shall apply to such farm
294		-	machinery, repair parts or fuel, oil, lubri cants and other
295	283		substances used by persons engaged in the business of c ustom
296	284		production, cultivation, planting, sowing, harvesting, proce ssing,
297	285		spraying, preservation, or irrigation of any livestock, poultry,
298	286		agricultural, or dairy products for farmers or ranchers. The
299	287		exemption provided for herein shall not apply to motor v ehicles;
300	288		7. Sales of supplies, machinery and equipment to persons
301	289		regularly engaged in the business of raising evergreen trees for
302	290		retail sale in which such trees are cut down on the p remises by the
303	291		consumer purchasing such tree. This exemption shall only be granted
304	292		and extended when the items in fact are used in the r aising of such
305	293		evergreen trees; and
306	294		8. Sales of materials, supplies and equi pment to an
307	295		agricultural permit holder or to any person with whom the permit
308	296		holder has contracted to construct f acilities which are or which
309	297		will be used directly in the producti on of any livestock, including,
310	298		but not limited to, facilities used in the pr oduction and storage of
311	299		feed for livestock owned by the permit holder. Any person making
312	300		purchases on behalf of the agricultural permit holder shall certify,
313	301		in writing, on the c opy of the invoice or sales ticket to be
314	302		retained by the vendor that the purc hases are made for and on behalf
315	303		of such permit holder and set out the name and permit number of such
316	304		holder. Any person who wrongfully or erroneously certifies that
	305	+	purchases are for an agricultural permit holder or who otherwise
	306	+	violates this subsection shall be guilty of a misdemeanor and upon
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318		-	SENATE FLOOR VERSION - HB3637 SFLR Page 7
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	308	+	ENGR. H. B. NO. 3637 Page 7 1
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344		-	purchases are for an agricultural permit holder or who otherwise
345		-	violates this subsection shall be guilty of a misdemeanor and upon
346	333		conviction thereof shall be punishable by a fine o f an amount equal
347	334		to double the amount of sales tax involved or imprisonment in the
348	335		county jail for not more than sixty (60) days or by both such fine
349	336		and imprisonment.
350	337		B. As used in this section and Sect ion 1358.1 of this title:
351		-	1. "Agricultural product s" shall include horses and timber and
352		-	shall not include the growing, harvesting, and p rocessing of
353		-	marijuana as defined in Section 427.2 of Title 63 of the Oklahoma
354		-	Statutes; and
	338	+	1. "Agricultural product s" shall include horses and timber; and
355	339		2. "Farming" or "farm" shall include the production of timber,
356	340		seedling production, and forestry management;
357	341		3. "Livestock" shall include the breeding of game animals which
358	342		are animals bred to be hunted for sport o r food; and
359	343		4. "Ranching" or "ranch" shall include the business, or
360	344		facilities for the business, of raising horses.
361	345		Provided, sales of items at race meetings as d efined in Section
362	346		200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
363	347		pursuant to the provisions of th is section and Section 1358.1 of
364	348		this title.
365	349		SECTION 2. This act shall become effective November 1, 2022.
366		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
367		-	April 6, 2022 - DO PASS AS AMENDED
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	376	+	Passed the House of Representatives the 8th day of March, 2022.
	377	+
	378	+
	379	+
	380	+
	381	+	Presiding Officer of the House
	382	+	of Representatives
	383	+
	384	+
	385	+	Passed the Senate the ___ day of __________, 2022.
	386	+
	387	+
	388	+
	389	+
	390	+	Presiding Officer of the Senate
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	392	+