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53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 58th Legislature (2022)
56	56
57	57	SENATE BILL 1101 By: Burns
58	58
59	59
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63	63	AS INTRODUCED
64	64
65	65	An Act relating to sales tax; amending 68 O.S. 2021,
66	66	Section 1358, which relates to agriculture exemption;
67	67	modifying definition; and prov iding an effective
68	68	date.
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71	71
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73	73	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
74	74	SECTION 1. AMENDATORY 68 O.S. 2021, Section 1358, i s
75	75	amended to read as follows:
76	76	Section 1358. Exemptions – Agriculture.
77	77	A. There are hereby specifically exempted from the tax levied
78	78	by Section 1350 et seq. of this title:
79	79	1. Sales of agricultural products produced in this state by the
80	80	producer thereof directly to the consumer or user when s uch articles
81	81	are sold at or from a farm and not fr om some other place of
82	82	business, as follows:
83	83	a. farm, orchard, or garden products, and
84	84	b. dairy products sold by a dairy producer or farmer who
85	85	owns all the cows from w hich the dairy products
86	86	offered for sale are produced;
87	87
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138	138	provided, the provisions of this paragraph shall not be construed as
139	139	exempting sales by florists, nursery operators , or chicken
140	140	hatcheries, or sales of dairy products by any other business except
141	141	as set out herein;
142	142	2. Livestock, including cattle, horses, mules , or other
143	143	domestic or draft animals, sold by the producer by private treaty or
144	144	at a special livestock sale;
145	145	3. Sale of baby chicks, turkey poults , and starter pullets used
146	146	in the commercial produc tion of chickens, turkeys, and eggs,;
147	147	provided, that the purchaser certifies, in writi ng, on the copy of
148	148	the invoice or sales ticket to be retained by the vendor that the
149	149	pullets will be used primarily for egg production;
150	150	4. Sale of salt, grains, tankage, o yster shells, mineral
151	151	supplements, limestone, and other generally recognized animal feeds
152	152	for the following purposes and subject to the following limitations:
153	153	a. feed which is fed to poultry and livestock , including
154	154	breeding stock and wool -bearing stock, for the purpose
155	155	of producing eggs, poultry, milk, or meat for human
156	156	consumption,
157	157	b. feed purchased in Oklahoma for the purpose of being
158	158	fed to and which is fed by the purchaser to horses,
159	159	mules or other domestic or draft animals used directly
160	160	in the producing and marketing of agricultural
161	161	products, and
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213	213	c. any stock tonics, water purifying products, stock
214	214	sprays, disinfectants , or other such agricultural
215	215	supplies.
216	216	“Poultry” shall not be construed to include any fowl other than
217	217	domestic fowl kept and raised fo r the market or production of eggs .
218	218	“Livestock” shall not be construed to include a ny pet animals such
219	219	as dogs, cats, birds , or such other fur-bearing animals. This
220	220	exemption shall only be granted and extended where the purchaser of
221	221	feed that is to be us ed and in fact is used for a purpose that would
222	222	bring about an exemption hereunder e xecutes an invoice or sales
223	223	ticket in duplicate on a form to be prescribed by the Oklahoma Tax
224	224	Commission. The purchaser may demand and receive a copy of the
225	225	invoice or sales ticket and the vendor shall retain a copy;
226	226	5. Sales of items to be and in fact used in the production of
227	227	agricultural products. Sale of the following items shall be subject
228	228	to the following limitations:
229	229	a. sales of agricultural fertilizer to any pers on
230	230	regularly engaged, for profit, in the business of
231	231	farming or ranching,
232	232	b. sales of agricultural fertilizer to any person engaged
233	233	in the business of applying such materials on a
234	234	contract or custom basis to land owned or leased and
235	235	operated by persons reg ularly engaged, for profit, in
236	236	the business of farming or ranching. In addition to
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288	288	providing the vendor proof of eligibility as provided
289	289	in Section 1358.1 of this title, the purchaser shall
290	290	provide the name or names of such owner or lessee and
291	291	operator and the location of the lands on which said
292	292	materials are to be applied to each such l and,
293	293	c. sales of agricultural fertilizer, pharmaceuticals , and
294	294	biologicals to persons engaged in the business of
295	295	applying such materials on a contract or custom basis
296	296	shall not be considered to be sales to contractors
297	297	under this article, and said sales sha ll not be
298	298	considered to be taxable sales within the meaning of
299	299	the Oklahoma Sales Tax Code. As used in this section,
300	300	“agricultural fertilizer ”, “pharmaceuticals”, and
301	301	“biologicals” mean any substance sold and used for
302	302	soil enrichment or soil corrective pu rposes or for
303	303	promoting the growth and productivity of plants or
304	304	animals,
305	305	d. sales of agricultural seed or plants to any person
306	306	regularly engaged, for profit, in the busine ss of
307	307	farming or ranching. This section shall not be
308	308	construed as exempting from sa les tax, seed which is
309	309	packaged and sold for use in noncommercial flower and
310	310	vegetable gardens, and
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362	362	e. sales of agricultural chemical pesticides to any
363	363	person regularly eng aged, for profit, in the business
364	364	of farming or ranching. For the purposes of this
365	365	subparagraph, “agricultural chemical pesticides ” shall
366	366	include any substance or mixture of substances
367	367	intended for preventing, destroying, repelling or
368	368	mitigating any insec t, snail, slug, rodent, bird,
369	369	nematode, fungus, weed, or any other form of
370	370	terrestrial or aquatic plant or animal life or virus,
371	371	bacteria or other microorganism, except viruses,
372	372	bacteria or other microorganisms on or in living man,
373	373	or any substance or mixt ure of substances intended for
374	374	use as a plant regulator, defoliant , or desiccant.
375	375	The exemption provided in this paragraph shall only be granted
376	376	and extended to the purchaser where the items are to be used and in
377	377	fact are used in the production of agricult ural products;
378	378	6. Sale of farm machinery, repair parts thereto or fuel, oil,
379	379	lubricants, and other substances used for operation and maintenance
380	380	of the farm machinery to be used directly on a farm or ranch in the
381	381	production, cultivation, planting, sowing, harvesting, processing,
382	382	spraying, preservation or irrigation of any livestock, poul try,
383	383	agricultural, or dairy products produced from such lands. The
384	384	exemption specified in this paragraph shall apply to such farm
385	385	machinery, repair parts , or fuel, oil, lubricants, and other
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437	437	substances used by persons engaged in the business of custom
438	438	production, cultivation, planting, sowing, harvesting, processing,
439	439	spraying, preservation, or irrigation of any livestock, poultry,
440	440	agricultural, or dairy products for farmers or ranchers. The
441	441	exemption provided for herein shall not apply to motor vehicles;
442	442	7. Sales of supplies, machinery , and equipment to persons
443	443	regularly engaged in the business of raising evergreen trees for
444	444	retail sale in which such trees are cut down on the premises by the
445	445	consumer purchasing such tree. This exemption shall only be gra nted
446	446	and extended when the items in fact are used in the raising of such
447	447	evergreen trees; and
448	448	8. Sales of materials, supplies , and equipment to an
449	449	agricultural permit hold er or to any person with whom the permit
450	450	holder has contracted to construct faciliti es which are or which
451	451	will be used directly in the production of any livestock , including,
452	452	but not limited to, facilities used in the production and storage of
453	453	feed for livestock owned by the permit holder. Any person making
454	454	purchases on behalf of the agr icultural permit holder shall certify,
455	455	in writing, on the copy of the invoice or sales ticket to be
456	456	retained by the vendor , that the purchases are made for and on
457	457	behalf of such permit holder and set out the name and permit number
458	458	of such holder. Any pers on who wrongfully or erroneously certifies
459	459	that purchases are for an agricultural permit holder or who
460	460	otherwise violates this subsection shall be guilty of a misdemeanor
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512	512	and upon conviction thereof shall be punishable by a fine of an
513	513	amount equal to doubl e the amount of sales tax involved or
514	514	imprisonment in the county jail for not more than sixty (60) days or
515	515	by both such fine and imprisonment.
516	516	B. As used in this section a nd Section 1358.1 of this title:
517	517	1. “Agricultural products” shall include horses and shall not
518	518	include the growing, harvesting, and processing of marijuana as
519	519	defined in Section 927.2 of Title 63 of the Oklahoma Statutes ; and
520	520	2. “Ranching” or “ranch” shall include the business, or
521	521	facilities for the business, of rais ing horses.
522	522	Provided, sales of items at race meetings as defined in Section
523	523	200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
524	524	pursuant to the provisions of this section and Sectio n 1358.1 of
525	525	this title.
526	526	SECTION 2. This act shall become effective November 1, 2022.
527	527
528	528	58-2-2377 QD 11/3/2021 4:27:53 PM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1101 Compare Versions