An Act
ENROLLED HOUSE
BILL NO. 3649 By: Dills, Phillips, McDugle,
and Fugate of the House
and
Pemberton of the Senate
An Act relating to sales tax; amending 68 O.S. 2021,
Section 1356, as last amended by Section 1, Chapter
539, O.S.L. 2021, which relates to sales tax
exemptions for nonprofit entities; exe mpting certain
veteran service organizations; requiring certain
documentation; providing an effective date; and
declaring an emergency.
SUBJECT: Sales tax
BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356 , as
last amended by Section 1, Chapter 539, O.S.L. 2021, is amended to
read as follows:
Section 1356. Exemptions - Governmental and nonp rofit entities.
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or se rvices to the United
States government or to the State of Oklahoma this state, any
political subdivision of this state, or any agency of a political
subdivision of this state; provided, all sales to contractors in
connection with the performance of any contract with t he United
States government, State of Oklahoma this state, or any of its
political subdivisions shall not be exemp ted from the tax levied by
Section 1350 et seq. of this title, except as hereinafter provided;
ENR. H. B. NO. 3649 Page 2
2. Sales of property to agents appointed by or under contr act
with agencies or instrumentalities of the Unit ed States government
if ownership and possession of such property transfers immediately
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdi vision of this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county , district, or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county, district , or state fair authorities ; provided,
the exemption provided by this paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority . As used
in this paragraph, "fair event" shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district, or state fair;
5. Sale of food in cafeterias or lunchrooms of elementary
schools, high schools, coll eges, or universities which are operated
primarily for teachers and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, char itable, or
educational societies or organizatio ns by regular members t hereof,
provided, such societies or organizations operate under what is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inures
to the benefit of any individual member or members there of to the
exclusion of other members and dues paid monthly or annually to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libr aries with students
interested in the study of geology, petroleum eng ineering, or
related subjects;
7. Sale of tangible personal property or services to or by
churches, except sales made in the course of business for profit or
savings, competing with other persons engaged in the same , or a
similar business or sale of tangi ble personal property or services ENR. H. B. NO. 3649 Page 3
by an organization exempt from federal income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
made on behalf of or at t he request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to exceed three (3) days by the organization
and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable purpose s;
8. The amount of proceeds received from the sale of admission
tickets which is separately stated on the ticket of admission for
the repayment of money borrowed by any accredited state-supported
college or university or any public trust of which a coun ty in this
state is the beneficiary, for the purpose of constructing or
enlarging any facility to be used for the staging of an athletic
event, a theatrical production, or any other form of entertainment,
edification, or cultural cultivation to which entry is gained with a
paid admission ticket. Such facilities include , but are not limited
to, athletic fields, athletic stadiums, field houses, amphitheaters,
and theaters. To be eligible for this sales tax exemption , the
amount separately stated on the admiss ion ticket shall be a
surcharge which is imposed, collected, and used for the sole purpose
of servicing or aiding in the servicing of debt incurred by the
college or university to effect the capital improvements
hereinbefore described;
9. Sales of tangible personal property or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of Americ a, Girl Scouts of the U.S.A., and Camp Fire
USA;
10. Sale of tangible personal propert y or services to any
county, municipality, rural water district, public school district,
city-county library system, the institutions of The Oklahoma State
System of Higher Education, the Grand River Dam Authority, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, City of Tul sa-Rogers County Port
Authority, Muskogee C ity-County Port Authority, the Oklahoma
Department of Veterans Affai rs, the Broken Bow Economic Development
Authority, Ardmore Development Authority, D urant Industrial
Authority, Oklahoma Ordna nce Works Authority, Central Oklahoma
Master Conservancy Distri ct, Arbuckle Master Conservancy District,
Fort Cobb Master Conservan cy District, Foss Reservoir Master
Conservancy District, Mountain Park Master Conse rvancy District,
Waurika Lake Master Conse rvancy District, the Office of Management
and Enterprise Servic es only when carrying out a public construction ENR. H. B. NO. 3649 Page 4
contract on behalf o f the Oklahoma Department of Veterans Affairs,
and effective July 1, 2022, the Uni versity Hospitals Trust, or to
any person with whom any of the above-named subdivisions or agencies
of this state has duly entered into a public contract pursuant to
law, necessary for carrying out such public contract or to any
subcontractor to such a pub lic contract. Any person making
purchases on behalf of such su bdivision or agency of this state
shall certify, in writing, on the copy of the invoice or sales
ticket to be retained by the vendor that the purchases are made for
and on behalf of such subdiv ision or agency of this state and set
out the name of such publ ic subdivision or agency. Any person who
wrongfully or erroneously certifies that purchases are for any of
the above-named subdivisions or agencies of this state or who
otherwise violates this section shall be guilty of a misdemeanor and
upon conviction thereof shall be fined an amount equal to do uble the
amount of sales tax involved or incarcerated for not more t han sixty
(60) days or both;
11. Sales of tangible personal property or services to private
institutions of higher educati on and private element ary and
secondary institutions of education accredited by the State
Department of Education or registered by th e State Board of
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma State Regents for Higher
Education which are exempt from taxation purs uant to the provisions
of the Internal Revenue Code, 26 U.S.C., Sect ion 501(c)(3) including
materials, supplies, and equipment used in the construction and
improvement of buildings and other s tructures owned by th e
institutions and operated for educational purposes.
Any person, firm, agency, or entity making purchases on b ehalf
of any institution, agency, or subdivision in this state, shall
certify in writing, on the copy of the invoice or sales ticket the
nature of the purchases, and violation of this parag raph shall be a
misdemeanor as set forth in paragraph 10 of this sec tion;
12. Tuition and educational fees paid to private institutions
of higher education and private elementary and seconda ry
institutions of education accredited by the State Department o f
Education or registered by the State Board of Education for purpos es
of participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which a re exempt from
taxation pursuant to the provisions of the Interna l Revenue Code, 26
U.S.C., Section 501(c)(3);
ENR. H. B. NO. 3649 Page 5
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering ins truction for grade
levels kindergarten through twelfth grade ,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student gro up or
organization,
(6) a parent-teacher association or organization
other than as specified in subparagraph b of th is
paragraph, or
(7) public or private school personnel for purposes
of raising funds for the benefit of a public o r
private school, public school district, public or
private school board, or public or private school
student group or organization, or
b. Sales of tangible personal pro perty made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school fou ndations
which solicit money or property in the name of any
public or private school or public school district.
The exemption provided by thi s paragraph for sales made by a
public or private school shall be limited to those pu blic or private
schools accredited by the State Department of Education or
registered by the State Boar d of Education for purposes of
participating in federal programs . Sale of tangible personal
property in this paragraph shall include sale of admission t ickets
and concessions at ath letic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional, or state 4-H councils, ENR. H. B. NO. 3649 Page 6
c. county, regional, or state 4-H committees,
d. 4-H leader associations,
e. county, regional, or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragrap h shall be limited to
sales for the purpose of raising funds for the benefit of such
organizations. Sale of tangible personal property exempted by this
paragraph shall inclu de sale of admission tickets;
15. The first Seventy-five Thousand Dollars ($75,00 0.00) each
year from sale of tickets and concessions at athletic eve nts by each
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklahoma Touri sm and Recreation Department has
entered into a public contract and which is necessary for carrying
out such contract to assist the Department in the development and
production of advertising, promotion, publicity , and public
relations programs;
17. Sales of tangible personal proper ty or services to fire
departments organized pursuant to Section 592 of Title 18 of th e
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person making purchases on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales ticket to be retained by the vendor th at the
purchases are made for and on behalf of such fire department and set
out the name of such fire department. Any person who wrongfully o r
erroneously certifies that the purchases are for any such fire
department or who otherwise violates the provisio ns of this section
shall be deemed guilty of a misdemeanor and upon conviction thereof,
shall be fined an amount equal to double the amount of sales tax
involved or incarcerated for not more than sixty (60) days, or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibition, display, or other
recreational events or activities which are issued through a box
office or other entity which is operated by a state institution of ENR. H. B. NO. 3649 Page 7
higher education with institution al employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property by fi re departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefi t of the fire
department. Fire departments selling tan gible personal property for
the purposes of raising funds shall be lim ited to no more than six
(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal property or services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army and which is exempt from taxation
pursuant to the provis ions of the Internal Revenue Code, 26 U.S.C .,
Section 501(c)(3);
21. Sales of tangible personal property or services to any
organization, which takes court-adjudicated juveniles for purposes
of rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Co de, 26 U.S.C., Section
501(c)(3), provided that at leas t fifty percent (50%) of the
juveniles served by such organization are c ourt adjudicated and the
organization receives state funds in an amount less than ten p ercent
(10%) of the annual budget of the o rganization;
22. Sales of tangible personal property or services to:
a. any health center as defin ed in Section 254b of Title
42 of the United States Code,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revolving Fu nd pursuant
to the provisions of Section 66 of Title 56 of the
Oklahoma Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
ENR. H. B. NO. 3649 Page 8
(2) is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes ;
23. Dues or fees including free or complimentary dues or fees
which have a value equiv alent to the charge that could have
otherwise been made, to YMCAs, YWCAs , or municipally-owned
recreation centers for the use of facilities and programs;
24. The first Fifteen Thousand Dollars ($15,0 00.00) each year
from sales of tangible personal proper ty or services to or by a
cultural organization estab lished to sponsor and promot e
educational, charitable, and cultural events for disadvantaged
children, and which orga nization is exempt from taxatio n pursuant to
the provisions of the Internal Revenue Co de, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible personal property or ser vices to museums
or other entities which have been accredited by the American
Association Alliance of Museums. Any person making purchases o n
behalf of any such museum or other entity shall certify, in writing,
on the copy of the invoice or sales ticket to be reta ined by the
vendor that the purchases are made for and on behalf of such museum
or other entity and set out the name of such museum or other entity.
Any person who wrongfully or erroneously certifies that the
purchases are for any such museum or other ent ity or who otherwise
violates the provisions of this paragraph shall be deemed guilty of
a misdemeanor and, upon conviction thereof, shall be fined an amount
equal to double the amount of sales tax involved or incarcerated for
not more than sixty (60) days , or by both such fine and
incarceration;
26. Sales of tickets for admission by any muse um accredited by
the American Association Alliance of Museums. In order to be
eligible for the exemption provided by this parag raph, an amount
equivalent to the amount of th e tax which would otherwise be
required to be collected pursuant to the provisions of Secti on 1350
et seq. of this title shal l be separately stated o n the admission
ticket and shall be collected and used for th e sole purpose of
servicing or aiding in the s ervicing of debt incurred by the museum
to effect the construction, enlarging , or renovation of any facility ENR. H. B. NO. 3649 Page 9
to be used for entertainment, edification , or cultural cultivation
to which entry is gained with a pai d admission ticket;
27. Sales of tangible pe rsonal property or services occurring
on or after June 1, 1995, to children 's homes which are supported or
sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Department of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible personal proper ty or services to youth
camps which are supported or sponsore d by one or more churches,
members of which serve as trustees of the organization;
30. a. Until July 1, 2022, transfer of tangible personal
property made pursuant to Sect ion 3226 of Title 63 of
the Oklahoma Statutes by t he University Hospitals
Trust, and
b. Effective July 1, 2022, transfer of tangibl e personal
property or services to or by:
(1) the University Hospitals Trust created pur suant
to Section 3224 of Title 63 of the Oklahoma
Statutes, or
(2) nonprofit entities which are exempt from taxation
pursuant to the provisions of the Internal
Revenue Code of the United States, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the Unive rsity
Hospitals Trust;
31. Sales of tangible pers onal property or services to a
municipality, county, or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county, or school district. A copy of the lease or
lease-purchase agreement shall be re tained by the vendor;
32. Sales of tangible personal property or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
ENR. H. B. NO. 3649 Page 10
33. The sale, use, storage, consumption , or distribution in
this state, whether by the importer, e xporter, or another person, of
any satellite or any associated launch vehicle inc luding components
of, and parts and motors for, any such satellite or launch vehicle,
imported or caused to be imported into this state for the pur pose of
export by means of l aunching into space. This exemption provided by
this paragraph shall not be affe cted by:
a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launch;
34. The sale, lease, use, storage, consumption, or distribution
in this state of any space f acility, space propulsion system or
space vehicle, satellite, or station of any kind poss essing space
flight capacity includi ng components thereof;
35. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal property, placed on or used
aboard any space facility, space propulsion system or space vehicle,
satellite, or station possessing spa ce flight capacity, which is
launched into space, irrespective of whether such tangible property
is returned to this state for subse quent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, co nsumption, or distribution
in this state of tangible personal property meeting th e definition
of "section 38 property" as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, tha t is an integral
part of and used primarily in sup port of space flight; however,
section 38 property used in support of space fligh t shall not
include general office equipment, any boat, mobile home, motor
vehicle, or other vehicle of a class or type requi red to be
registered, licensed, titled, or documented in this state or by the
United States government, or any other property not s pecifically
suited to supporting space activity. The term "in support of space
flight", for purposes of this paragraph, mean s the altering,
monitoring, controlling, regulatin g, adjusting, servicing, or
repairing of any space facility, space propulsion sys tems or space
vehicle, satellite, or station possessing space flight capacity
including the components thereof; ENR. H. B. NO. 3649 Page 11
37. The purchase or lease of machinery and equipment for use a t
a fixed location in this state, whi ch is used exclusively in the
manufacturing, processing, compounding, or producing of any space
facility, space propulsion system or space vehicle, satellite, or
station of any kind possessing space flight capacity. Provided, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser or lessee signs an affidavit stating that the item or
items to be exempted are for the exclusive use designated herein.
Any person furnishing a false affidavit to the vendor for the
purpose of evading payment of any tax imposed by Section 13 54 of
this title shall be subject to the penalties provided by law . As
used in this paragraph, "machinery and equipment" means "section 38
property" as defined in Sections 48 (a)(1)(A) and (B)(i) of the
Internal Revenue Code of 1986, which is used as an in tegral part of
the manufacturing, processing, compounding, or producing of items of
tangible personal property. Such term includes parts and
accessories only to the extent th at the exemption thereof is
consistent with the provisions of this paragraph;
38. The amount of a surcharge or any other amount which is
separately stated on an adm ission ticket which is imposed,
collected, and used for the sole purpose of constructing,
remodeling, or enlarging facilities of a public trust having a
municipality or county as its sole beneficiary;
39. Sales of tangible personal property or services w hich are
directly used in or for the benefit of a state park in this state,
which are made to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primari ly for the purpose
of supporting one or more state parks located in this state;
40. The sale, lease, or use of parking privileges by an
institution of The Oklahoma State Sy stem of Higher Education;
41. Sales of tangible personal property or services fo r use on
campus or school construction projects for the benefit of
institutions of The Oklahom a State System of Higher Education,
private institutions of higher education accr edited by the Oklahoma
State Regents for Higher Education, or any public school o r school
district when such projects are financed by or through the use of
nonprofit entities which are exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3); ENR. H. B. NO. 3649 Page 12
42. Sales of tangible personal property or services by an
organization which is exempt from taxation pursuant to the
provisions of the In ternal Revenue Code, 26 U.S.C., Section
501(c)(3), in the course of conducting a national championship
sports event, but only if all or a portion of the payment in
exchange therefor would qualify as the receipt of a qualified
sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise , and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. is affiliated with a comprehensive u niversity within
The Oklahoma State System of Higher Education, and
c. has been organized primaril y for the purpose of
providing education and teacher training and
conducting events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.0 0) each year
from sales of tangible p ersonal property to or by youth athletic
teams which are part o f an athletic organization exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(4), for the purposes of r aising funds for the
benefit of the team;
45. Sales of tickets for admission to a collegiate athlet ic
event that is held in a facility owned or operated by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determines or is part of a tourname nt or
tournament process for determining a conference tournamen t
championship, a conference championship, or a national championship;
46. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to th e
provisions of the Internal Revenue Cod e, 26 U.S.C., Section
501(c)(3) and is operating the Oklahoma City National Memorial and
Museum, an affiliate of the National Park System; ENR. H. B. NO. 3649 Page 13
47. Sales of tangible personal prope rty or services to
organizations which a re exempt from federal taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the memberships of which are limited to
honorably discharged veterans, and w hich furnish financial support
to area veterans' organizations to be used for th e purpose of
constructing a memorial or museum;
48. Sales of tangible personal property or services on or after
January 1, 2003, to an organization which is exempt from taxat ion
pursuant to the provisions of the Int ernal Revenue Code, 26 U.S.C.,
Section 501(c)(3) that is expend ing monies received from a private
foundation grant in conjunction with expenditu res of local sales tax
revenue to construct a local public library;
49. Sales of tangible personal property or services to a state
that borders this st ate or any political su bdivision of that state,
but only to the extent that the other state or political subdivision
exempts or does not impose a tax on similar sales of item s to this
state or a political subdivision of this state;
50. Effective July 1, 2005, sales of tangible personal property
or services to the Career Technology Student Organizations unde r the
direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. Sales of tangible personal property to a public trus t
having either a singl e city, town or county or multiple cities,
towns or counties, or combination thereof as beneficiary or
beneficiaries or a nonprofit organization whic h is exempt from
taxation pursuant to the pro visions of the Internal Revenue Code, 2 6
U.S.C., Section 501(c )(3) for the purpose of constructing
improvements to or expanding a hospital or n ursing home owned and
operated by any such public trust or nonprofit entity prior to July
1, 2008, in counties wi th a population of less than one hundre d
thousand (100,000) pe rsons, according to the most recent Federal
Decennial Census. As used in this paragraph, "constructing
improvements to or expanding" shall not mean any expense for routine
maintenance or genera l repairs and shall require a project c ost of
at least One Hundred Thousand Dollars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subcontractor that
enters into a contractual rela tionship with a public trust or
nonprofit entity as described by this paragraph shal l be considered
sales made to the public trust or nonprofit entity. The exemption ENR. H. B. NO. 3649 Page 14
authorized by this pa ragraph shall be administered in the form of a
refund from the sales tax revenues apportioned pursuant to Section
1353 of this title and the vendor shal l be required to collec t the
sales tax otherwise applicable to the transaction. The purchaser
may apply for a refund of the sales tax paid in the manner
prescribed by this paragraph. Within thirty (30) days after th e end
of each fiscal year, any purchase r that is entitled to m ake
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such preceding fiscal year. The Tax Commission
shall prescribe a form for pu rposes of making the ap plication for
refund. The Tax Commission shall determine whether or not the tota l
amount of sales tax exemptions claimed by all purchasers is equal to
or less than Six Hundred Fifty Thousand Do llars ($650,000.00). If
such claims are less than or equal to that amount, the Tax
Commission shall make refunds to the purchasers in the full amount
of the documented and verified sales tax amounts. If such claims by
all purchasers are in excess of Six Hundred Fifty Thousand Dollars
($650,000.00), the Tax Commissi on shall determine the amount of each
purchaser's claim, the total amount of all claims by all purchasers,
and the percentage each purchaser's claim amount bears to the total.
The resulting percentage determined for each purchaser s hall be
multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
determine the amount of refund able sales tax to be paid to each
purchaser. The pro rata refund am ount shall be the only method to
recover sales taxes paid during the preceding fisca l year and no
balance of any sales taxes paid on a pro rata basis shall be the
subject of any subsequent refund claim pursuant to this paragraph;
52. Effective July 1, 20 06, sales of tangible personal property
or services to any organization which assists , trains, educates, and
provides housing for physically and mentally handicapped persons and
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
receives at least eighty-five percent (85%) of its annual bud get
from state or federal funds. In order to receive the benefit of the
exemption authorized by this paragraph, the taxpayer shall be
required to make payment of the applicable sales tax at the time of
sale to the vendor in the mann er otherwise required b y law.
Notwithstanding any other provision of the Oklahoma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be authorized to
file a claim for refund of sales taxes paid that quali fy for the
exemption authorized by this paragraph for a period of one (1) year
after the date of the sale transaction. The taxpayer shall be
required to provide documentation as may be prescribed by the ENR. H. B. NO. 3649 Page 15
Oklahoma Tax Commission in support of the refund cla im. The total
amount of sales tax qual ifying for exempt treat ment pursuant to this
paragraph shall not exceed One Hundred Seventy -five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
processed in the order in which such claims are received by the
Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
the total amount of refunds payable for a fiscal year, such claim
shall be barred;
53. The first Two Thousand Dollars ( $2,000.00) each year of
sales of tangible perso nal property or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working directly with a law enforcement
agency with jurisdiction in the ar ea in which the neighborhood watch
organization is located. As used in this paragraph , "qualified
neighborhood watch organization" means an organization that is a
not-for-profit corporation under the laws of the State of Oklahoma
this state that was created to help prevent crimin al activity in an
area through community involvement and inte raction with local law
enforcement and which is one of the first two thousand organizations
which makes application to the Oklahoma Tax Commission for the
exemption after March 29, 2006;
54. Sales of tangible personal prope rty to a nonprofit
organization, exempt from taxation p ursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c) (3), organized
primarily for the purpose of providing services to homeless persons
during the day and located in a metro politan area with a population
in excess of five hundre d thousand (500,000) persons according to
the latest Federal Decennial Census . The exemption authorized by
this paragraph shall be applicable to sales of tangible persona l
property to a qualified enti ty occurring on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the prin cipal purpose of which is to prov ide
funding for the preservation of wetlands and habitat for wild ducks;
56. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Interna l Revenue Code, 26 U.S.C., Section
501(c)(3) for events t he principal purpose of which is to provide
funding for the preservation and cons ervation of wild turkeys; ENR. H. B. NO. 3649 Page 16
57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the prov isions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of commun ity-based, autonomous
member organizations that meets the following
criteria:
(1) serves people with workplace dis advantages and
disabilities by providi ng job training and
employment services, as well as job placement
opportunities and post -employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing a nd household goods to
sell in retail stores and provides contra ct labor
services to business and government, and
(4) provides documentation to t he Oklahoma Tax
Commission that over seventy-five percent (75%)
of its revenues are channeled into employment,
job training and placement programs , and other
critical community services;
58. Sales of tickets made on or after September 21, 2005, and
complimentary or free tickets for admission issued on or after
September 21, 2005, whic h have a value equivalent to the charge that
would have otherwise been made, for admission to a professional
athletic event in which a team in the National Basketball
Association is a participant, which is held in a facility owned or
operated by a municipa lity, a county, or a public trust of which a
municipality or a county i s the sole beneficiary, and sales of
tickets made on or after July 1, 2007, and complimentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge that would ha ve otherwise been made,
for admission to a professional athletic event in which a team in
the National Hockey League is a participant, which is he ld in a
facility owned or operated by a municipality, a county, or a public
trust of which a municipality or a county is the sole beneficiary; ENR. H. B. NO. 3649 Page 17
59. Sales of tickets for admiss ion and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been made to a professional sporting even t
involving ice hockey, bas eball, basketball, football or arena
football, or soccer. As used in this paragraph, "professional
sporting event" means an organized athletic com petition between
teams that are members of an organized league or association with
centralized management, ot her than a national league or national
association, that imposes r equirements for participation in the
league upon the teams, the individual athlet es, or both, and which
uses a salary structure to compensate the athletes;
60. Sales of tickets for admissi on to an annual event sponsored
by an educational and charitable or ganization of women which is
exempt from taxation pursuant to the provisions of t he Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
promoting volunteerism, develo ping the potential of women, and
improving the community through th e effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exempt from taxation pur suant to the
provisions of the Internal Revenue Code, 26 U.S.C., Sectio n
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraising, public awareness, or other
efforts for the benefit of its member organizations, and if the
member organization is primarily engaged eithe r in providing
educational services and programs concerning health-related diseases
and conditions to individuals suffering from such health-related
diseases and conditions or their caregivers and family members or
support to such individuals, or in health -related research as to
such diseases and conditions, or both. In order to qualify for the
exemption authorized by this paragraph, the member nonprofit
organization shall b e required to provide proof to the Oklahoma Tax
Commission of its membership status in the membership organ ization;
62. Sales of tangible personal prope rty or services to or by an
organization which is part of a national volunteer women 's service
organization dedicated to promoting patriotism, preserving American
history, and securing better education for chi ldren and which has at
least 168,000 members in 3,000 chapters across the United States; ENR. H. B. NO. 3649 Page 18
63. Sales of tangible personal property or services to or by a
YWCA or YMCA organization which is part of a national nonprofit
community service organization working to meet the health and social
service needs of its members across the United States;
64. Sales of tangible personal property or services to or by a
veteran's organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue C ode, 26 U.S.C., Secti on
501(c)(19) and which is k nown as the Veterans o f Foreign Wars of the
United States, Oklahoma Chapters;
65. Sales of boxes of fo od by a church or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) . To qualify
under the provisions of this paragraph, the organization must be
organized for the primar y purpose of feeding needy individuals or to
encourage volunteer service by requ iring such service in o rder to
purchase food. These boxes shall only con tain edible staple foo d
items;
66. Sales of tangible personal property or services to any
person with whom a church has duly entered into a construction
contract, necessary for carr ying out such contract or to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or education al purposes, to or by an
organization which:
a. is exempt from taxation pursu ant to the provisions o f
the Internal Revenue Co de, 26 U.S.C., Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community ab out the rights,
abilities, and strengths of develo pmentally
disabled individuals, and ENR. H. B. NO. 3649 Page 19
(3) promoting unity among developmentally dis abled
individuals in their community and geographic
area;
68. Sales of tangible personal prop erty or services to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3); provided, until July 1, 2008, such exemption shall apply
only to eligible shelters for children from birth to age t welve (12)
and after July 1, 2008, such exemption shall apply to eligible
shelters for children from birth to age eighteen (18);
69. Sales of tangible personal property or s ervices to a child
care center which is licensed pursuant to the Oklahoma Child Ca re
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Depa rtment of Human
Services Reaching for the Stars Program or a national
accreditation, and
b. allows on-site universal prekinde rgarten education to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency, or entity that has entered previously into a
contractual relationship with a child care center f or construction
and improvement of buildings and other structures owned by the ch ild
care center and operated for educational purposes shall be
considered sales made to a child care center. Any such person,
firm, agency, or entity making purchases on beha lf of a child care
center shall certify, in writing, on the copy of the invoice o r
sales ticket the nature of the purchase. Any such person, or person
acting on behalf of a firm, agency, or entity making purchases on
behalf of a child care center in viola tion of this paragraph shall
be guilty of a misdemeanor and upon conviction there of shall be
fined an amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) day s or both;
70. a. Sales of tangible personal prope rty to a service
organization of mothers who have children who are
serving or who have served in the military, which ENR. H. B. NO. 3649 Page 20
service organization is exempt from taxation pursuant
to the provisions of the Internal R evenue Code, 26
U.S.C., Section 501(c)(19) and whi ch is known as the
Blue Star Mothers of America, Inc. The exemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actually sent
to United States military personn el overseas who are
serving in a combat zone and n ot to any other tangible
personal property purchased by the organization .
Provided, this exemption shall not app ly to any sales
tax levied by a city, town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph shal l be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Section 1353 of
this title, and the vendor shall be requ ired to
collect the sales tax otherwise applicable to th e
transaction. The purchaser may apply for a refu nd of
the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60) days after the end
of each calendar quarter, any purchas er that is
entitled to make application for a refund bas ed upon
the exempt treatment authorized by this pa ragraph may
file an application for refund of the state sales
taxes paid during such preceding calendar quarter .
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military per sonnel overseas in a combat zone .
Any purchaser that applies for a refund for the
purchase of items that are not authorized for
exemption under this paragraph shall be subjec t to a
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack items to or by an o rganization
which is exempt from tax ation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary
and principal purpose is providing funding for scholarships in the
medical field;
ENR. H. B. NO. 3649 Page 21
72. Sales of tangible persona l property or services for use
solely on construction projects for organizations which are exem pt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providi ng
end-of-life care and access to hospice services to low-income
individuals who live in a facility owned by the organization . The
exemption provided by this paragraph applie s to sales to the
organization as well as to sales to any person with whom the
organization has duly entered in to a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any person making purchases on behalf
of such organization shall certify, in writing, on the copy o f the
invoice or sales ticket to be retained by the vendor that th e
purchases are made for and on behalf of such organization and set
out the name of such organization. Any person who wrongfully or
erroneously certifies that purchases are for any of the a bove-named
organizations or who otherwise violates this section sh all be guilty
of a misdemeanor and upon conviction thereof shall be fined an
amount equal to double the amoun t of sales tax involved or
incarcerated for not more than sixty (60) days or both ;
73. Sales of tickets for a dmission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3 ) that are
organized for the purpose of supporting general hospitals licensed
by the State Department of Health;
74. Sales of tangible personal property or services:
a. to a foundation which is exempt from taxation pursuant
to the provisions of the Intern al Revenue Code, 26
U.S.C., Section 501(c)(3) and which raises tax -
deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of Ame rica and other
organizations that defend and foste r Second Amendment
rights, and
b. to or by a grassroots fundraising program for s ales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26 ENR. H. B. NO. 3649 Page 22
U.S.C., Section 501(c)(3) which are related to a fundraising event
sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days and when the s ales are not in
the organization's or the entity's regular course of business .
Provided, the exemption provided in this paragraph shall be li mited
to tickets sold for admittance to the fundraising event an d items
which were donated to the organization or entity for sale at the
event;
76. Effective November 1, 2017, sales of tangible personal
property or services to an organization which is ex empt from
taxation pursuant to the provisions of the Internal Rev enue Code, 26
U.S.C., Section 501(c)(3) and operat es as a collaborative model
which connects community agencies in one location to serve
individuals and families affected by violence and wher e victims have
access to services and advocacy at no cost to the victim;
77. Effective July 1, 2018, sales of tang ible personal property
or services to or by an association which is exempt from t axation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the Nati onal Guard
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible personal property
or services to or by an associ ation which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which is known as the Marine Corps League of
Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase is made by the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authorit y of
the national American Legion organization;
80. Sales of tangible personal p roperty or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter, and
ENR. H. B. NO. 3649 Page 23
c. able to provide documentation that its primary and
principal purpose is t o provide community access to
advanced 21st centur y manufacturing and digital
fabrication tools for science, technology,
engineering, art, and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses, and producing personaliz ed products;
81. Effective November 1, 2021, sale s of tangible personal
property or services used solely for construction and remo deling
projects to an organization which is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which meets the fol lowing requirements:
a. its primary purpose is to construct or remodel and
sell affordable housing and provide homeownership
education to residents of Oklahoma that have an income
that is below one hundred percent (100%) of the Family
Median Income guideli nes as defined by the U.S.
Department of Housing and Urban Development,
b. it conducts its activities in a manner that serves
public or charitable purposes, rather than commercial
purposes,
c. it receives funding and revenue and charges fees in a
manner that does not incentivize it or its employees
to act other than in the best interes ts of its
clients, and
d. it compensates its employees in a manner that does not
incentivize employees to act other than in t he best
interests of its clients;
82. Effective November 1, 2021, sales of tangible personal
property or services to a nonprofit e ntity, organized pursuant to
Oklahoma law before January 1, 2022, exempt from federal income
taxation pursuant to Section 501 (c) of the Internal Revenue Code of
1986, as amended, the principal functions of which are to provide
assistance to natural persons following a disaster, with progr am
emphasis on repair or restoration to single-family residential
dwellings or the construct ion of a replacement single-family
residential dwelling. As used in this paragraph, "disaster" means
damage to property with or wi thout accompanying injury to pers ons
from heavy rain, high winds, tornadic winds, drought, wildfire, ENR. H. B. NO. 3649 Page 24
snow, ice, geologic dist urbances, explosions, chemical accidents or
spills, and other events causing damage to property on a large
scale. For purposes of this paragraph, an entity that ex pended at
least seventy-five percent (75%) of its funds on the restoration to
single-family housing following a disaster, including related
general and administrative expenses, shall be eligible for the
exemption authorized by this paragraph; and
83. Until July 1, 2022, sales of tangible personal property or
services for use in a clinical practi ce or medical facility operated
by an organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code of the United States, 26
U.S.C., Section 501(c)(3), and which has entered into a joint
operating agreement with the Uni versity Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The
exemption provided by this para graph shall be limited to the
purchase of tangible personal property and services for use in
clinical practices or medical fa cilities acquired or leased by the
organization from the University Hospitals Authority, University
Hospitals Trust, or the Univers ity of Oklahoma on or after June 1,
2021; and
84. Effective July 1, 2022, sales of tangible personal property
or services to an organization which is exem pt from taxation
pursuant to the provisions of the Inter nal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which provides support t o veterans, active
duty members of the Armed Forces, reservists , and members of the
National Guard to assist with the transiti on to civilian life and
which provides documentation to the Oklahoma Tax Commission that
over seventy percent (70%) of its revenue is expended on support for
transition to civilian life .
SECTION 2. This act shall become effective July 1, 2022.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall tak e effect and
be in full force from and after its passage and approval. ENR. H. B. NO. 3649 Page 25
Passed the House of Representatives the 12th day of May, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of April, 2022.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at ____ ___ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o 'clock _______ M.
_________________________________
Governor of the State o f Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o 'clock _______ M.
By: _________________________________