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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022 )
HOUSE BILL 3850 By: Boatman
AS INTRODUCED
An Act relating to revenue and taxation ; amending 68
O.S. 2021, Section 2105, which relates to motor
vehicle excise tax exemptions; crea ting an exemption
for foreign exports; amending 47 O.S. 2021, Section
1105, which relates to certificate of titles;
creating a foreign export certificate of title;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEO PLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2105, is
amended to read as follows:
Section 2105. An Except as provided for in paragraph 18 of this
section for a foreign export certificate of title, an original or a
transfer certificate of title shall be issued wi thout the payment of
the excise tax levied by Section 2101 et seq. of this title for:
1. Any vehicle owned by a nonresident person who operates
principally in some other state but who is in Okl ahoma only
occasionally;
2. Any vehicle brought into this sta te by a person formerly
living in another state, who has owned and registered the vehicle in
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such other state of residence at least sixty (60) days prior to the
time it is required to be registe red in this state; provided,
however, this paragraph shall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by the Stat e of Oklahoma, by any of
the political subdivisions thereof, or by a fire department
organized pursuant to Section 592 of Title 18 of the Oklahoma
Statutes to be used for the purposes of the fire department, or a
vehicle which is the subject of a lease or lease-purchase agreement
executed between the person seeking an original or transfer
certificate of title for the vehicle and a municipality, county,
school district, or fire protection district. The person seeking an
original or transfer certificate of t itle shall provide adequate
proof that the vehicle is subject to a lease or lease -purchase
agreement with a municipality, county, school district, or fire
protection district at the time the excise tax levied would
otherwise be payable. The Oklahoma Tax C ommission shall have the
authority to determine what constitutes adequate proof as required
by this section;
4. Any vehicle, the legal ownership of which is obtained by the
applicant for a certificate of title by inheritance;
5. Any used motor vehicle, t ravel trailer, or commercial
trailer which is owned and being offered for sale by a person
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licensed as a dealer to sell the same, under the provisions of t he
Oklahoma Vehicle License and Registration Act:
a. if such vehicle, travel trailer, or commercial t railer
has been registered in Oklahoma and the excise tax
paid thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been registered in some other state but is
not the latest manufactured model.
Provided, the provisions of this paragr aph shall not be
construed as allowing an exemption to any person not licensed as a
dealer of used motor vehicles, travel trailers, or commercial
trailers, or as an automotive dismantler and parts recycler in this
state;
6. Any vehicle which was purchased by a person licensed to sell
new or used motor vehicles in another state:
a. if such vehicle is not purchased for operation or
resale in this state, and
b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in th is
state, pursuant to a reciprocal agreement between the
duly authorized agent of the Tax Com mission and the
licensing state;
7. Any vehicle, the ownershi p of which was obtained by the
lienholder or mortgagee under or by foreclosure of a lien or
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mortgage in the manner provided by law or to the insurer under
subrogated rights arising by reason of loss under an insurance
contract;
8. Any vehicle which is tax ed on an ad valorem basis;
9. Any vehicle or motor vehicle, the legal ownership of which
is obtained by transfers:
a. from one corporation to another corporation pursuant
to a reorganization. As used in this subsection the
term "reorganization" means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation when
the consideration is solely all or a part of the
voting stock of the acquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the winding up, dissolution, or
liquidation of a corp oration only when there is a
distribution in kind to the shareholders of the
property of such corporation,
c. to a corporation where the former owners of t he
vehicle or motor vehicle transferred are, immediately
after the transfer, in control of the corpor ation, and
the stock or securities received by each is
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substantially in proportion to the int erest in the
vehicle or motor vehicle prior to the transfer,
d. to a partnership if the former owners of the vehicle
or motor vehicle transferred are, immediately after
the transfer, members of such partnership and the
interest in the partnership received by each is
substantially in proportion to the interest in the
vehicle or motor vehicle prior to the transfer,
e. from a partnership to the members thereof when mad e in
the dissolution of such partnership,
f. to a limited liability company if the former own ers of
the vehicle or motor vehicle transferred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substantially in
proportion to the interest in the vehicle o r motor
vehicle prior to the transfer, or
g. from a limited liability company to the members
thereof when made in the dissolution of such
partnership;
10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor vehicle s without a driver,
provided:
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a. the vehicle shall not be rent ed to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by these
provisions shall not be placed under any type of lease
agreement,
c. on any such vehicle exempted from the excise tax by
this subsection that is reregistered in this state,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date of issuance of the
original title, the se ller shall pay immediately the
amount of excise tax which would have been due had
this exemption not been granted plus a penalty of
twenty percent (20%). No such excise tax or penalty
shall become due and payable if the vehicle is sold or
transferred in a condition either physical or
mechanical which would render it eligible for a
salvage title pursuant to law or if the vehicle is
sold and transferred in this state at any time prior
to the expiration of twelve (12) months:
(1) to the manufacturer of the ve hicle or its
controlled financing arm, or
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(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the
same line-make of the vehicle being purchased, or
d. when this exemption is claimed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as
provided in this section is made,
(2) the sale is made to a person specif ied in
division (1) or (2) of subparagraph c of this
paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles herein exempted shall be
treated as though the excise tax has been paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and transferred to
a licensed, franchised Ok lahoma motor vehicle dealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
franchise of the same line -make as the vehicle being re gistered;
12. Any new motor vehicle, registered in the name of a
manufacturer or dealer of n ew motor vehicles, for which a license
plate has been issued p ursuant to Section 1116.1 of Title 47 of the
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Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individual. The authorization for
such use shall not exceed four (4) months which shall not be renewed
or the exemption provided by this subsection shall not be
applicable. The exemption provided by this subs ection shall not be
applicable to a transfer of ownership or registration subsequent to
the first registration of the vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial trailer of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the same which holds a franchise of the same l ine-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subject of a lease or lease -
purchase agreement and w hich the ownership of such vehicle is being
obtained by the lessee, if the vehicle excise tax was paid at the
time of the initial lease or lease -purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization
which 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 which
is primarily funded b y a fraternal or civic service
organization with at least one hundred local chapters
or clubs, and
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b. is designed and used to provide mobile health
screening services to the general public at no cost to
the recipient, and for which no reimbursement of any
kind is received from any health insurance provider,
health maintenance organization, or governmental
program;
16. Any vehicle which is purchased by an individual who has
been honorably dischar ged from active service in any branch of the
Armed Forces of the United States or Oklahoma National Guard and who
has been certified by the United States Departmen t of Veterans
Affairs, its successor, or the Armed Forces of the United States to
be a disabled veteran in receipt of compensation at the one -hundred-
percent rate for a permanent disability sustained through military
action or accident resulting from disea se contracted while in such
active service and registered with the veterans registry created by
the Oklahoma Department of Veterans Affairs; provided, that if the
veteran has previously received exemption pursuant to this
paragraph, no registration with th e veterans registry shall be
required. This exemption may not be claimed by an individual fo r
more than one vehicle in a consecutive three -year period, unless the
vehicle is a replacement for a vehicle which was destroyed and
declared by the insurer to be a total loss claim. The Tax
Commission shall promulgate any rules necessary to implement th e
provisions of this section; or
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17. Any vehicle on which own ership is transferred by a
repossessor directly back to the owner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by
the repossessor within thirty (30) day s of issuance of the
repossession title and shall be identical to that reflected in the
vehicle title record immediately prior to the repossession ; or
18. Any vehicle which is purchased by an individual or entity
doing business in this state if the vehicle is contracted to be
shipped to a destination outside of the United States or its
territories within one hundred twenty (120) days of purchase. The
Oklahoma Tax Commission sh all prescribe a form to be completed and
submitted under oath together with the purchase contract for t he
vehicle and proof of commitment to ship the vehicle by comm on
carrier vessel, air, rail , or any other common carrier for hire .
Upon approval, the Tax Commission shall issue a foreign export
certificate of title .
SECTION 2. AMENDATORY 47 O.S. 2021, Section 1105, is
amended to read as follows:
Section 1105. A. As used in the Oklahoma Vehicl e License and
Registration Act:
1. "Salvage vehicle" means any vehicle which is within the last
ten (10) model years and which has been damaged by collision or
other occurrence to the extent that the cost of repairing the
vehicle for safe operation on the highway exceeds sixty percent
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(60%) of its fair market value, as defined by Section 1111 of this
title, immediately prior to the damage. For purposes of this
section, actual repair costs shall only include labor and parts for
actual damage to the suspens ion, motor, transmission, frame or
unibody and designated structural components;
2. "Rebuilt vehicle" means any salvage vehicle which has been
rebuilt and inspected for the purpo se of registration and title;
3. "Flood-damaged vehicle" means a salvage or rebuilt vehicle
which was damaged by flooding or a vehicle which was submerged at a
level to or above the dashboard o f the vehicle and on which an
amount of loss was paid by the i nsurer;
4. "Unrecovered-theft vehicle" means a vehicle which has been
stolen and not yet recovered;
5. "Recovered-theft vehicle" means a vehicle, including a
salvage or rebuilt vehicle, which was recovered from a theft; and
6. "Junked vehicle" means any vehicle which is incapable of
operation or use on the highway, has no resale value except as a
source of parts or scrap and has an eighty percent (80%) loss in
fair market value.
B. The owner of every vehicle in this state shall possess a
certificate of title as proof of ownership of such vehicle, except
those vehicles registered pursuant to Section 1120 of thi s title and
trailers registered pursuant to Section 1133 of this title,
previously titled by anyone in another state and engaged in
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interstate commerce, and except as provided in subsection M of this
section. Except for own ers that possess an agricultural exemption
permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
Statutes, the owner of an all-terrain vehicle or a motorcycle used
exclusively off roads or highways in this state which is purchased
or the ownership of which is transferred on or af ter July 1, 2005,
and the owner of a utility vehicle used exclusively off roads and
highways in this state which is purchased or the ownership of w hich
is transferred on or after July 1, 2008, shall possess a certificate
of title as proof of ownership. An y person possessing an
agricultural exemption permit and owning an all -terrain vehicle or a
motorcycle used exclusively off roads or highways in th is state
which is purchased or the ownership of which is transferred on or
after July 1, 2008, shall possess a certificate of title as proof of
ownership. Upon receipt of proper application inf ormation by such
owner, the Oklahoma Tax Commission shall issu e an original or
transfer certificate of title. Until July 1, 2008, any secu rity
interest in an all-terrain vehicle that attached and was perfected
before July 1, 2005, and that has not otherwi se terminated shall
remain perfected, and shall take priority over any subsequently
perfected security interest in the same all -terrain vehicle,
notwithstanding that a cer tificate of title may have been issued
with respect to the same all -terrain vehicle on or after July 1,
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2005, and that a lien may have been recorde d on said certificate of
title. There shall be eight nine types of certificates of title:
1. Original title for any motor vehicle which is not a
remanufactured, salvage, unrecovered -theft, rebuilt, rebodied,
foreign export, or junked vehicle;
2. Salvage title for any motor vehicle which is a salvage
vehicle or is specified as a sa lvage vehicle or the equivalent
thereof on a certificate of title from another state;
3. Rebuilt title for any moto r vehicle which is a rebuilt
vehicle;
4. Junked title for any motor vehicle which is a junked vehicle
or is specified as a junked vehicle o r the equivalent thereof on a
certificate of title from another state;
5. Classic title for any motor vehicle, exce pt a junked
vehicle, which is twenty -five (25) model years or older;
6. Remanufactured title for any vehicle which is a
remanufactured vehicle;
7. Unrecovered-theft title for any motor vehicle which has been
stolen and not recovered; and
8. Rebodied title for any motor vehicle which is a rebodied
vehicle; and
9. Foreign export title for any motor vehicle which is
purchased by an individual or entit y doing business in Oklahoma for
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the sole purpose of exporting the vehicle outside of the United
States or its territories.
Application for a certificate of title, wheth er the initial
certificate of title or a duplicate, may be made to the Tax
Commission or any motor license agent. When application is made
with a motor license agent, the application informatio n shall be
transmitted either electronically or by mail to the Tax Commission
by the motor license agent. If the app lication information is
transmitted electronically, the motor license agent shall forward
the required application along with evidence of o wnership, where
required, by mail. Where the transmission of application
information cannot be performed electronica lly, the Tax Commission
is authorized to provide postage paid envelopes to motor license
agents for the purpose of mailing the application along with
evidence of ownership, where required. The Tax Com mission shall
upon receipt of proper application inform ation issue an Oklahoma
certificate of title. The certificates may be mailed to the
applicant. Upon issuance of a certificate of title, t he Tax
Commission shall provide the appropriate motor license agent with
confirmation of such issuance.
C. 1. The application for certificate of ti tle shall be upon a
blank form furnished by the Tax Commission, containing:
a. a full description of the ve hicle,
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b. the manufacturer's serial or other identification
number,
c. the motor number and the date on which first s old by
the manufacturer or deale r to the owner,
d. any distinguishing marks,
e. a statement of the applicant 's source of title,
f. any security interest upon the vehicle, and
g. such other information as the Tax Commission may
require.
2. The application for a certificate of title for a vehicle
which is within the last seven (7) model years shall require a
declaration as to whether the vehic le has been damaged by collision
or other occurrence and wheth er the vehicle has been recovered from
theft and the extent of the damage to the vehicl e. The declaration
shall be made by the owner of a vehicle if:
a. the vehicle has been damaged or stolen,
b. the owner did or did not receive any payment for the
loss from an insurer, or
c. the vehicle is titled or register ed in a state that
does not classify the vehicle or brand the title
because of damage to or loss of the vehicle similar to
the classifications or brands utilized by this state.
The declaration shall be based upon the best information and
knowledge of the owner and shall be in addition to the requirements
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specified in paragraph 1 of this subsection. The Tax Commission
shall not issue a certif icate of title for a vehicle which is
subject to the provision s of this paragraph without the required
declaration, completed and signed by the owner of the vehicle. Upon
receipt of an application without the properly completed
declaration, the Tax Commis sion shall return the application to the
applicant with notice that the title may not be issued without the
required declaration. Nothing in this pa ragraph shall prohibit the
Tax Commission from recognizing the type of or brand on a title or
other ownership document issued by another state or the inspection
conducted in another state and issuing the appropriate certific ate
of title for the vehicle.
3. The certificate of title shall have the following security
features:
a. intaglio printing or security thr ead, with or without
watermark,
b. latent images,
c. fluorescent inks,
d. micro print,
e. void background, and
f. color coding.
4. Each title issued pursuant to the provisions of the Oklahoma
Vehicle License and Registration Act shall be color coded as
determined by the Tax Commission.
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5. The certificate of title s hall be of such size and design
and color as the Tax Co mmission may direct pursuant to the
provisions of this section. The title shall be on colored paper or
other material as designated by the Tax Commission and be of such
intensity or hue as will allow easy identification as to whether the
title is an original title, a salvage title, a re built title,
remanufactured title, rebodied title or, a junked title, or a
foreign export title . The type of title shall be identified on the
front of the certificate o f title. The original title, rebuilt
title, remanufactured title, an unrecovered -theft title, rebodied
title, foreign export title, or classic title shall be identified by
the word "Original", "Rebuilt", "Remanufactured", "Unrecovered
Theft", "Rebodied", "Foreign Export", or "Classic" printed in the
upper right quadrant of the certificate o f title, in the space which
is currently captioned "type of title". A rebodied title shall also
identify on the front of the title the year, make and model of the
originally manufactured vehicle which has been rebodied and display
a notation that reads as follows: "This vehicle has been assembled
with new major components licensed by the original manufacturer ".
D. 1. To obtain an original certificate of title for a veh icle
that is being registered for the first time in thi s state which has
not been previously registered in any other state, the applicant
shall be required to deliver, as evidence of ownership, a
manufacturer's certificate of origin properly assigned by th e
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manufacturer, distributor, or dealer licensed in this or any other
state shown thereon to be the last transferee to the applicant upon
a form to be prescribed and approved by the Tax Commissio n. A
manufacturer's certificate of origin shall contain:
a. the manufacturer's serial or other identification
number,
b. date on which first sold by the manufacturer to the
dealer,
c. any distinguishing marks including model and the year
same was made,
d. a statement of any security interests upon the
vehicle, and
e. such other information as the Tax Commission may
require.
2. The manufacturer's certificate of origin shall have the
following security features:
a. intaglio printing or security thread, with or without
watermark,
b. latent images,
c. fluorescent inks,
d. micro print, and
e. void background.
E. In the absence of a dealer's or manufacturer's number, the
Tax Commission may assign such identifying number to the vehicle,
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which shall be permanentl y stamped, burned or pressed or attached
into the vehicle, and a certificate of title shall be delivered to
the applicant upon payment of all fees an d taxes, and the remaining
copies shall be permanently filed and indexed by the Tax Commission.
The Tax Commission shall assign an identifying number to any rebuilt
vehicle if the vehicle identification number displayed on the
rebuilt vehicle does not acc urately describe the vehicle as rebuilt.
The motor license agent, at the time of inspection of the rebuilt
vehicle pursuant to Section 1111 of this title, shall identif y the
make, model, and year for the body to accurately describe the
rebuilt vehicle. At the time of the inspection, an appropriate
identifying number shall be permanently stamped, burned, press ed, or
attached on the rebuilt vehicle. The assigned identify ing number
shall be recorded on the certificate of titl e for the rebuilt
vehicle. The dealer's or manufacturer's vehicle identification
number on the rebuilt vehicle shall be preserved in the c omputer
files of the Tax Commission for at least five (5) year s.
F. When registering for the first time in this stat e a vehicle
which was not origin ally manufactured for sale in the United States,
to obtain a certificate of title, the Tax Commission shall require
the applicant to deliver:
1. As evidence of ownershi p, if the vehicle has not previously
been titled in the United States, the documents co nstituting valid
proof of ownership in the country in which the vehicle was
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originally purchased, together with a notarized translation of any
such documents; and
2. As evidence of compliance with federal law, copies of the
bond release letters for the ve hicle issued by the United States
Environmental Protection Agency and the United States Department of
Transportation, together with a receipt issued by the Internal
Revenue Service indicating that the applicable federal gas guzzler
tax has been paid.
The Tax Commission shall not issue a certificate of title for a
vehicle which is subject to the provisions of th is paragraph without
the required documentation from agencies of the United States and
evidence of ownership. Upon r eceipt of an application without the
required documentation, the Tax Commission shall return the
application to the applicant with notice t hat the certificate of
title may not be issued without the req uired documentation. Nothing
in this paragraph shall p rohibit the Tax Commission from issuing
certificates of title for antique or classic vehicles not driven
upon the public streets, roads, or highways, for mini-trucks
registered pursuant to Section 1151 .3 of this title, or for medium -
speed electric vehicles .
G. When registering in this s tate a vehicle which was titled in
another state and which title contains the name of a secured party
on the face of the other state certificate of title, or such state
certificate is being held by the secured party in that state or any
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other state, the Tax Commission or the motor license agent shall
complete a lien entry form as prescribed by the Tax Commissio n. The
owner of such vehicle shall file an affidavit with the Tax
Commission or the motor license agent stating that title to the
vehicle is being held by a secured party, has not been issued
pursuant to the laws of the state where titled, and that there is an
existing lien or encumbrance on the vehicle. The curren t name and
address of the secured party or lienholder s hall also be stated in
the affidavit. The form of the affidavit shall be prescribed by the
Tax Commission and contain any other informatio n deemed necessary by
the Tax Commission. A statement of the lien or encumbrance shall be
included on the Oklahoma c ertificate of title and the lien or
encumbrance shall be deemed continuously perfected as though it had
been perfected pursuant to Section 1110 of this title. For
completing the lien entry form and re cording the security interest
on the certificate of tit le, the Tax Commission or the mo tor license
agent shall collect a fee of Three Dollars ($3.00) which shall be in
addition to other fees pro vided by the Oklahoma Vehicle License and
Registration Act. T he fee, if collected by the motor license agent
pursuant to this subsection, shall be r etained by the motor license
agent.
H. The charge for each certificate of title issued, except for
junked and foreign export titles as defined in paragraph 4 of
subsection B of this section, shall be Eleven Dollars ($11.00) ,
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which charge shall be in addit ion to any other fees or taxes imposed
by law for such vehicle. One Dollar ($1.00) of each such charge
shall be deposited in the Oklahoma Tax Commission Reimbursement
Fund. However, the charge shall not apply to any vehicl e which is
to be registered in t his state pursuant to the provisions of Section
1120 or 1133 of this title and which was registered in anot her state
at least sixty (60) days prior to the time it is req uired to be
registered in this state. When an insurer requests a salvage or
junk title in the name of the insurer resulting from the settlement
of a total loss claim and upon presentation of ap propriate proof of
loss documentation as required by the Commi ssion, such transfer may
be processed as one title tran saction, without first requiring
issuance of a replacement certificate of title in the name of the
vehicle owner. The fee shall be Twenty -two Dollars ($22.00). Two
Dollars ($2.00) of this fee shall b e deposited in the Oklahoma Tax
Commission Reimbursemen t Fund. The charge for a foreig n export
title shall be One Hundred Dollars ($100.00), which charge shall be
in addition to any other fe es or taxes imposed by law for such
vehicle. One Dollar ($1.00) of this fee shall be deposited in the
Oklahoma Tax Commission Reimbursement Fund.
I. The vehicle identification number of a junked vehicle shall
be preserved in the computer files of the Tax Co mmission for a
period of not less than five (5) years. The ch arge of junked titles
as defined in paragraph 4 of subs ection B of this section shall b e
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Four Dollars ($4.00). The fee remitted to the Tax Commission shall
be deposited in the Oklahoma Tax Comm ission Reimbursement Fund.
J. If a vehicle is sold to a resid ent of another state,
destroyed, dismantled, or ceases to be used as a vehicle, the own er
shall immediately notify the Tax Commission. Absent evidence to the
contrary, failure to notify the Tax Commission shall be prima facie
evidence that the vehicle has been in continuous operation in this
state.
K. If a vehicle is stolen, the owner shal l immediately notify
the appropriate law enforcement agency. Immediately after receiving
such notification, the law enforcement agency shall notify the Tax
Commission.
L. Except for all-terrain vehicles, utility vehicles a nd
motorcycles used exclusively for off-road use, no title for an out -
of-state vehicle, except any commercial truck or truck -tractor
registered pursuant to Section 1120 of this title which is engaged
in interstate commerce, or any trailer or semitrailer re gistered
pursuant to Section 113 3 of this title which is engaged in
interstate commerce, or any vehicle titled as a foreign export ,
shall be issued without an inspection of such vehicle and payment of
a fee of Four Dollars ($4.00) for such inspection; prov ided, the Tax
Commission may enter into reciprocal agreements with other states
for such inspections to be performed at locations outside t he
boundaries of this state for vehicles which:
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1. Are offered for sale at auction;
2. Have been solely used as veh icles for rent under the
ownership of a licensed motor vehicle dealer or a person engaged in
the business of renting motor vehicles; or
3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall include a compa rison of the vehicle
identification number on the vehicle with the number recorded on the
ownership records and the recording of the actual odometer reading
on the vehicle. The four -dollar fee shall be collected by the motor
license agent or Tax Commissio n when the title is issued. The motor
license agent shall retain Two Dollars ($2.00). The remaining Two
Dollars ($2.00) shall be deposite d in the Oklahoma Tax Commission
Reimbursement Fund.
The Tax Commission may allow the inspection to be performed at a
location out-of-state by another state's department of motor
vehicles or state police.
M. No title for any out -of-state vehicle offered f or sale at
salvage pools, salvage disposal sales, or an auctio n, or by a dealer
or a licensed automotive dismantler a nd parts recycler, shall be
issued without an inspection to compare the vehicle identification
number on the vehicle with the number record ed on the ownership
record and to record the actual odometer r eading on the vehicle.
Upon request of the seller, per son or entity conducting an auct ion,
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dealer or licensed dismantler, the inspection shall be conducted at
the location or place of business of the sale, auction, dealer, or
the dismantler. The inspecti on shall be conducted by any motor
license agent or a d uly authorized employee thereof; provided, if
the vehicle identification number on the vehicle offered for sale at
salvage pools, salvage d isposal sales or a classic or antique
auction does not match t he number recorded on the ownership record,
the inspection may be conducted at the loca tion of or place of
business of such sale or auction by any state, county or city law
enforcement officer. The Tax Commission may enter into reciprocal
agreements with other states for such inspections to be performed at
locations outside the boundaries o f this state for vehicles which:
1. Are offered for sale at auction;
2. Have been solely used as vehicles for rent under the
ownership of a licensed motor vehicle deal er or a person engaged in
the business of renting motor vehicles; or
3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall be certified upon fo rms prescribed by the Tax
Commission. The name and other iden tification of the authorized
person conducting the insp ection shall be legibly printed or typed
on the form. Prior to any inspection by any employee of a motor
license agent, the motor license agent shall notify the Tax
Commission of the name and any othe r identification information
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requested by the Tax Commi ssion of the authorized person. A
signature specimen of the authorized person shall be submitted to
the Tax Commission by the employing mo tor license agent. If the
authorization to inspect vehicles i s withdrawn or the employer -
employee relationship is te rminated, the motor license agen t,
immediately, shall notify the Tax Commission and return any
remaining inspection forms to the Tax Commis sion. The fee for the
inspection shall be Four Dollars ($4.00 ). The motor license agent
shall retain Three Dollars ($3.00) of the fee. Fees receiv ed by a
motor license agent or an authorized employee thereof shall be
handled and accounted for in the man ner as prescribed by law for any
other fees paid to or receive d by a motor license agent. Out -of-
state vehicles brought into this state by a person licensed in
another state to sell new or used vehicles to be sold within this
state at a motor vehicle auct ion which is limited to dealer -to-
dealer transactions shall no t be required to be inspected, unless
the vehicle is purchased by an Oklahoma dealer. Any person licensed
in another state to sell new or used motor vehicles, who offers a
motor vehicle for sal e within this state at a motor vehicle auction
which is limited to dealer-to-dealer transactions, shall not be
within the definition of "owner" in Section 1102 of this title, for
purposes of Section 1101 et seq. of this title.
N. A licensed motor vehicle dealer, upon payment of a fee of
Fifteen Dollars ($15.00), may reassign an out-of-state certificate
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of title to a used motor vehicle provided such de aler obtains the
appropriate inspection form required by either subsection L or M of
this section and attac hes the form to the out-of-state certificate
of title. Motor license agents shall be allowed to retain Two
Dollars and twenty-five cents ($2.25) of the fee plus an additional
Two Dollars ($2.00) or Three Dollars ($3.00) as provided in
subsections L and M of this section for performance of the
inspection. Two Dollar s ($2.00) of the fee shall be deposited in
the Tax Commission Reimbursement Fund. An o ut-of-state vehicle
which has been rebuilt shall be inspected pursuant to the provisions
of Section 1111 of this title. The Tax Commission shall train motor
license agents in interpreting vehicle identification numbers to
assure that it accurately describ es the vehicle and to detect
rollback or alteration of the odometer. Failure of a motor license
agent to inspect the vehicle and make the required notations shall
be a misdemeanor punishable by a fine of not more than One T housand
Dollars ($1,000.00) for the first offense and Five Thousand Dollars
($5,000.00) for the second offense or subsequent offense, or by
imprisonment in the county jail for not more than six (6) mon ths, or
by both such fine and imprisonment.
O. The ownership of any unrecovered vehicl e which has been
declared a total loss by an insurer because of theft shall be
transferred to the insurer b y an unrecovered-theft vehicle title;
provided, the ownership of any such vehicle which has been declared
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a total loss by an insurer licensed by the Insurance Department of
the State of Oklahoma and maintaining a multi -state motor vehicle
salvage processing center in this state shall be transferred to the
insurer by a salvage or an unrecovered -theft title without the
requirement of a visual inspection of the vehicle identification
number by the insurer. Upon recovery of the vehicle, the ownership
shall be transferred by an original title, salvage title, or junked
title, as may be appropriate based upon an estimate of the amount of
loss submitted by the insurer.
P. When an insurance company makes a total loss settlement on a
total loss vehicle and the insur ance company or a salvage pool
authorized by the insurance com pany is unable to obtain the properly
endorsed certificate of ownership or other eviden ce of ownership
acceptable to the Oklahoma Tax Commission within thirty (30) days
following acceptance by t he owner of an offer of an amount in
settlement of a total los s, that insurance company or salvage pool,
on a form provided by the Oklahoma Tax Commi ssion and signed under
penalty of perjury, may request the Oklahoma Tax Commission to issue
the applicable salvage title for the vehicle. The request shall
include information declaring that the requester has made at least
two written attempts to obtain t he certificate of ownership or other
acceptable evidence of title.
Q. The owner of any vehicle which is in capable of operation or
use on the public roads and has no res ale value, except as parts,
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scrap or junk, may deliver the certificate of title to the vehicle
to the Tax Commission for cancellation. Upon verification that any
perfected lien against the vehi cle has been released, the
certificate of title shall be cance led without any fee, charge, or
cost required from the owner. The vehicle identificati on numbers on
the certificates of title shall be preserved in the computer files
of the Tax Commission for at least five (5) years from the date of
cancellation of the c ertificate of title. The Tax Commission shall
prescribe and provide an affidavit form to be completed by the owner
of any vehicle for which the certificate of title is canceled. No
title or registration shall subsequently be issued for a vehicle for
which the certificate of title has been surrendered pursuan t to this
subsection. The Tax C ommission shall prescribe a form for the
transfer of ownership of a vehicle for which the certificate of
title has been canceled.
R. The owner of a vehicle which is not within the last ten (10)
model years, not roadworthy a nd not capable of repair for ope ration
or use on the roads and highways, or a vehicle which is being sold
to a scrap metal dealer pursuant to Section 11-92 of Title 2 of the
Oklahoma Statutes, shall tr ansfer the vehicle only upon a
certificate of ownership prescribed by the Tax Commissio n, if the
certificate of title to the vehicle is lost, has been canceled, or
otherwise not available. The prescribed ownership form shall
include the names and addresse s of the buyer and seller, the driver
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license number or social security number of the s eller, the make and
model of the vehicle, and the public vehicle identification number.
If there is no public vehicle identification number, the vehicle
shall be inspected by a law enforcement officer to verify the
absence of the number on the vehicle and the prescribed ownership
form shall include a signed statement, by such officer, verifying
the absence of the number.
The certificate of ownership shall be completed in triplicate.
The buyer and seller shall each retain a copy. Within thirty (30)
days of the transaction, the seller shall submit one copy to the Tax
Commission or a motor license agent accompan ied with a fee of Four
Dollars ($4.00). One Dollar ($1.00) sh all be retained by the motor
license agent and Three Do llars ($3.00) shall be deposited in the
Oklahoma Tax Commission Reimbursement Fund in the State Treasury.
Upon receipt of the certificate, the Tax Commission shall verify
that any perfected lien upon t he vehicle has been released. If the
lien is not released, the Tax Commission shall ma il notice of the
transfer to the lienholder at the lienholder 's last-known address.
If a certificate of ti tle has been issued, it shall be canceled and
the vehicle identification number shall be preserved in the computer
of the Tax Commission for at least five (5) years. The buyer of the
vehicle may not be sued and shall not be liable for monetary damages
to the lienholder, however, the vehicle shall be subject to a val id
repossession by a lienholder.
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S. The Tax Commission shall notify the chief administ rative
officer of the agency or department responsible for issuing motor
vehicle certificates of title in e ach state in the United States of
the types of motor vehicle c ertificate of title effective in
Oklahoma on and after January 1, 1989.
T. When registering for the first time in this state a
remanufactured vehicle which has not been registered in any other
state since its remanufacture, before issuing a certificate of
title, the Tax Commission shall require the applicant to deliver a
statement of origin from the remanufacturer.
U. If a vehicle is sold to a foreign buyer pursuant to the
provisions of the Aut omotive Dismantlers and Parts Recycler Act, the
licensed seller shall stamp the title with: "EXPORT ONLY.
NONTRANSFERABLE IN THE UNITED STATES. " The licensed seller shall
supply the Tax Commission the title number, the vehicle
identification number and the foreign buyer's bid identification
number on a form prescr ibed by the Tax Commission. The Tax
Commission shall cancel the title, and the vehicle identification
number shall be preserved in the computer files of the Tax
Commission for a period of not l ess than five (5) years.
V. The Tax Commission shall not be c onsidered a necessary party
to any lawsuit which is ins tigated for the purpose of deter mining
ownership of a vehicle, wherein the Tax Commission 's only
involvement would be to issue title, and t he court shall issue an
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order dismissing the Tax Commission fr om the pending action. In the
event no other party or lienholder can be identified as to ownership
or claim, the Tax Commission shall accept an affidavit of ownership
from the party claiming ow nership and issue proper title thereon.
SECTION 3. This act shall become effective July 1, 2022.
SECTION 4. 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 take effec t and
be in full force from and after its passage and a pproval.
58-2-8598 AQH 12/29/21