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SB1472
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Oklahoma Senate Bill SB1472

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Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1472 Compare Versions

Only one version of the bill is available at this time.

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
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4	4		Req. No. 2512 Page 1 1
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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 1472 By: Coleman
58	58
59	59
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64	64
65	65		AS INTRODUCED
66	66
67	67		An Act relating to sales tax; amending 68 O. S. 2021,
68	68		Section 1357, as amended by Section 1, Chapter 68,
69	69		O.S.L. 2021, which relates to sales tax exemptions;
70	70		providing an exemption for portion of gross receipts
71	71		or proceeds attributable to parts under specified
72	72		circumstance relating to cor e charges; defining term;
73	73		and providing an effective date.
74	74
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79	79		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
80	80		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
81	81		amended by Section 1, Chapter 68, O.S.L. 2021, is amended to read as
82	82		follows:
83	83		Section 1357. Exemptions – General. There are hereby
84	84		specifically exempte d from the tax levied by the Oklahoma Sales Tax
85	85		Code:
86	86		1. Transportation of school pupils to and f rom elementary
87	87		schools or high schools in motor or other veh icles;
88	88
89	89
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139	139		2. Transportation of persons where the f are of each person does
140	140		not exceed One Dollar ($1. 00), or local transportation of persons
141	141		within the corporate limits of a municipality except by ta xicabs;
142	142		3. Sales for resale to persons engaged in the business of
143	143		reselling the articles purchased, whethe r within or without the
144	144		state, provided that such s ales to residents of this state are made
145	145		to persons to whom sales tax permits have been issued as provided in
146	146		the Oklahoma Sales Tax Code. This exemption shall not apply to the
147	147		sales of articles made to p ersons holding permits when such persons
148	148		purchase items for their use and which they are not regularly
149	149		engaged in the business of reselling; neither shall this exemption
150	150		apply to sales of tangible personal property to peddlers,
151	151		solicitors, and other salespersons who do not have an established
152	152		place of business and a sales tax permit . The exemption provided b y
153	153		this paragraph shall apply to sales of mot or fuel or diesel fuel to
154	154		a Group Five vendor, but the use of such motor fuel or diesel fuel
155	155		by the Group Five vendor shall not be exempt from the tax levied by
156	156		the Oklahoma Sales Tax Code . The purchase of motor fuel or diesel
157	157		fuel is exempt from sales ta x when the motor fuel is for shipment
158	158		outside this state and consumed by a common carrier by rail in the
159	159		conduct of its business. The sales tax shall apply t o the purchase
160	160		of motor fuel or diesel fuel in Oklahom a by a common carrier by rail
161	161		when such motor fuel is purchased for fueling, within this state, of
162	162		any locomotive or other motorized flanged wheel equip ment;
163	163
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214	214		4. Sales of advertising space in newspapers and periodicals;
215	215		5. Sales of programs relating to sp orting and entertainment
216	216		events, and sales of advertising on billboards (including signage,
217	217		posters, panels, marquees, or on other similar surfaces, w hether
218	218		indoors or outdoors) or in programs relating to sporting and
219	219		entertainment events, and sales of any advertising, to be displayed
220	220		at or in connection with a sporting event, via the Internet,
221	221		electronic display devices, or through public address or br oadcast
222	222		systems. The exemption authorized by this p aragraph shall be
223	223		effective for all sales made on or a fter January 1, 2001;
224	224		6. Sales of any advertising, other than the advertising
225	225		described by paragraph 5 of this section, via the Internet,
226	226		electronic display devices, or through the electronic media ,
227	227		including radio, public address or broadcast systems, te levision
228	228		(whether through closed circuit bro adcasting systems or otherwise),
229	229		and cable and satellite television, and the servicing of any
230	230		advertising devices;
231	231		7. Eggs, feed, supplies, machinery , and equipment purchased by
232	232		persons regularly engaged in the business of raising worms, fish,
233	233		any insect, or any other form of terrestrial or aquatic animal life
234	234		and used for the purpose of raising same for mark eting. This
235	235		exemption shall only be granted and ext ended to the purchaser when
236	236		the items are to be used a nd in fact are used in the raising of
237	237		animal life as set out above. Each purchaser shall certify, in
238	238
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289	289		writing, on the invoice or sales ticket retained by the vendor that
290	290		the purchaser is regularly engag ed in the business of raising such
291	291		animal life and that the items purchased will be used only in s uch
292	292		business. The vendor shall certify to the Oklahoma Tax Commission
293	293		that the price of the items has bee n reduced to grant the full
294	294		benefit of the exemption . Violation hereof by the purchaser or
295	295		vendor shall be a misdemeanor;
296	296		8. Sale of natural or arti ficial gas and electricity, and
297	297		associated delivery or transmission services, when sold exclusively
298	298		for residential use. Provided, this exemption shall not a pply to
299	299		any sales tax levied by a city or town, or a c ounty, or any other
300	300		jurisdiction in this sta te;
301	301		9. In addition to the exemptions authorized by Section 1357.6
302	302		of this title, sales of drugs sold pu rsuant to a prescription
303	303		written for the treatment of human beings by a person licensed to
304	304		prescribe the drugs, and sales of insulin and medical oxygen .
305	305		Provided, this exemption shall not apply to over-the-counter drugs;
306	306		10. Transfers of title or posses sion of empty, partially
307	307		filled, or filled returnable o il and chemical drums to any person
308	308		who is not regularly engaged in the business of selling, resel ling,
309	309		or otherwise transferring empty, partially filled, or filled
310	310		returnable oil drums;
311	311
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362	362		11. Sales of one-way utensils, paper napkins, paper cups,
363	363		disposable hot containers, and other one-way carry out materials to
364	364		a vendor of meals or beverages;
365	365		12. Sales of food or food products for home consumption which
366	366		are purchased in whole or in part with coupons i ssued pursuant to
367	367		the federal food stamp program as aut horized by Sections 2011
368	368		through 2029 of Title 7 of th e United States Code, as to that
369	369		portion purchased with such coupons. The exemption provided for
370	370		such sales shall be inapplicable to such sales up on the effective
371	371		date of any federal law that removes t he requirement of the
372	372		exemption as a condition for par ticipation by the state in the
373	373		federal food stamp program;
374	374		13. Sales of food or food products, or any equipment or
375	375		supplies used in the preparati on of the food or food products to or
376	376		by an organization which:
377	377		a. is exempt from taxation pursuant to the pro visions of
378	378		Section 501(c)(3) of the Internal Revenue Code, 26
379	379		U.S.C., Section 501(c)(3), and which provides and
380	380		delivers prepared meals for home consumption to
381	381		elderly or homebound persons as part of a program
382	382		commonly known as “Meals on Wheels” or “Mobile Meals”,
383	383		or
384	384		b. is exempt from taxation pursu ant to the provision s of
385	385		Section 501(c)(3) of the Internal Revenue Code, 26
386	386
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437	437		U.S.C., Section 501(c)(3 ), and which receives federal
438	438		funding pursuant to the Olde r Americans Act of 1965,
439	439		as amended, for the purpose o f providing nutrition
440	440		programs for the care and benefit of elder ly persons;
441	441		14. a. Sales of tangible personal property or services to or
442	442		by organizations which are exempt from taxation
443	443		pursuant to the provisions of Section 501(c)(3) of the
444	444		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
445	445		and:
446	446		(1) are primarily involved in the collection and
447	447		distribution of food and other household products
448	448		to other organizations that facilitate the
449	449		distribution of such products to the needy and
450	450		such distributee organiza tions are exempt from
451	451		taxation pursuant to the provisions of Sec tion
452	452		501(c)(3) of the Internal Revenue Code, 26
453	453		U.S.C., Section 501(c)(3), or
454	454		(2) facilitate the distribution of such products to
455	455		the needy.
456	456		b. Sales made in the course of business for profit or
457	457		savings, competing with other persons e ngaged in the
458	458		same or similar business shall not be exempt under
459	459		this paragraph;
460	460
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511	511		15. Sales of tangible personal property or services to
512	512		children’s homes which are located on church -owned property and are
513	513		operated by organizations exempt from taxation purs uant to the
514	514		provisions of the Internal Revenue Code, 26 U.S.C., Section
515	515		501(c)(3);
516	516		16. Sales of computers, data processing equipment, related
517	517		peripherals, and telephone, telegraph or telecommunications service
518	518		and equipment for use in a qualified aircraft maintenance or
519	519		manufacturing facility. For purposes of this paragraph, “qualified
520	520		aircraft maintenance or manufacturing facility” means a new or
521	521		expanding facility primarily engaged in aircraft repair, building ,
522	522		or rebuilding whether or not on a factory ba sis, whose total cost of
523	523		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
524	524		and which employs at least two hundred fifty (250) new full -time-
525	525		equivalent employees, as certified by the Oklahoma Em ployment
526	526		Security Commission, upon completio n of the facility. In order to
527	527		qualify for the exemption provided for by this paragraph, the co st
528	528		of the items purchased by the qualified aircraft maintenanc e or
529	529		manufacturing facility shall equal or exceed the sum of Two Million
530	530		Dollars ($2,000,000.00);
531	531		17. Sales of tangible personal property consumed or
532	532		incorporated in the construction or expans ion of a qualified
533	533		aircraft maintenance or manufacturing facili ty as defined in
534	534		paragraph 16 of this section . For purposes of this paragraph, sales
535	535
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586	586		made to a contractor or subcontrac tor that has previously entered
587	587		into a contractual relationship with a qu alified aircraft
588	588		maintenance or manufacturing facility for cons truction or expansion
589	589		of such a facility shall be cons idered sales made to a qualified
590	590		aircraft maintenance or manufactu ring facility;
591	591		18. Sales of the following telecommunications services:
592	592		a. Interstate and International “800 service”. “800
593	593		service” means a “telecommunications service ” that
594	594		allows a caller to dial a toll-free number without
595	595		incurring a charge for the ca ll. The service is
596	596		typically marketed under the name “800”, “855”, “866”,
597	597		“877”, and “888” toll-free calling, and any subsequent
598	598		numbers designated by the Federal Communications
599	599		Commission, or
600	600		b. Interstate and International “900 service”. “900
601	601		service” means an inbound toll “telecommunications
602	602		service” purchased by a subscriber that allows the
603	603		subscriber’s customers to call in to the su bscriber’s
604	604		prerecorded announcement or live service . “900
605	605		service” does not include the charge fo r: collection
606	606		services provided by the seller of the
607	607		“telecommunications services ” to the subscriber, or
608	608		service or product sold by the subscriber to the
609	609		subscriber’s customer. The service is typically
610	610
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661	661		marketed under the name “900” service, and any
662	662		subsequent numbers designate d by the Federal
663	663		Communications Commission,
664	664		c. Interstate and Interna tional “private communications
665	665		service”. “Private communications s ervice” means a
666	666		“telecommunications service ” that entitles the
667	667		customer to exclusive or priority u se of a
668	668		communications channel or group of channels between or
669	669		among termination points, re gardless of the manner in
670	670		which such channel or channels are connec ted, and
671	671		includes switching capacity, extension lines,
672	672		stations, and any other associated services that are
673	673		provided in connection with the use of such channel or
674	674		channels,
675	675		d. “Value-added nonvoice data service”. “Value-added
676	676		nonvoice data service” means a service that otherwise
677	677		meets the definition of “telecommunications services”
678	678		in which computer processing applications are used to
679	679		act on the form, content, code, or protocol of the
680	680		information or data primarily for a purpose other than
681	681		transmission, conveyance, or routing,
682	682		e. Interstate and International t elecommunications
683	683		service which is:
684	684
685	685
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723	723		14
724	724		15
725	725		16
726	726		17
727	727		18
728	728		19
729	729		20
730	730		21
731	731		22
732	732		23
733	733		24
734	734
735	735		(1) rendered by a company for private use within its
736	736		organization, or
737	737		(2) used, allocated, or di stributed by a compa ny to
738	738		its affiliated group,
739	739		f. Regulatory assessments and charges, including charges
740	740		to fund the Oklahoma Universal Service Fund, the
741	741		Oklahoma Lifeline Fund and the Oklah oma High Cost
742	742		Fund, and
743	743		g. Telecommunications nonrecurring charg es, including but
744	744		not limited to the installation, connection, change ,
745	745		or initiation of telecommunications services which are
746	746		not associated with a retail consumer sale;
747	747		19. Sales of railroad track spikes manufactured and sold for
748	748		use in this state in the construction or repai r of railroad tracks,
749	749		switches, sidings, and turnouts;
750	750		20. Sales of aircraft and aircraft parts provide d such sales
751	751		occur at a qualified aircraft m aintenance facility. As used in this
752	752		paragraph, “qualified aircraft maintenance facil ity” means a
753	753		facility operated by an air common carrier, including one or more
754	754		component overhaul support buildings or structu res in an area owned,
755	755		leased, or controlled by the air common carr ier, at which there were
756	756		employed at least two thousand (2,000) f ull-time-equivalent
757	757		employees in the preceding year as certified by the Oklahoma
758	758		Employment Security Commission and which is primarily related to the
759	759
760	760
761	761		Req. No. 2512 Page 11 1
762	762		2
763	763		3
764	764		4
765	765		5
766	766		6
767	767		7
768	768		8
769	769		9
770	770		10
771	771		11
772	772		12
773	773		13
774	774		14
775	775		15
776	776		16
777	777		17
778	778		18
779	779		19
780	780		20
781	781		21
782	782		22
783	783		23
784	784		24
785	785		1
786	786		2
787	787		3
788	788		4
789	789		5
790	790		6
791	791		7
792	792		8
793	793		9
794	794		10
795	795		11
796	796		12
797	797		13
798	798		14
799	799		15
800	800		16
801	801		17
802	802		18
803	803		19
804	804		20
805	805		21
806	806		22
807	807		23
808	808		24
809	809
810	810		fabrication, repair, alteration, modifica tion, refurbishing,
811	811		maintenance, building, or rebuilding of commer cial aircraft or
812	812		aircraft parts used in air common carriage. For purposes of this
813	813		paragraph, “air common carrier” shall also include members of an
814	814		affiliated group as defined by Section 150 4 of the Internal Revenue
815	815		Code, 26 U.S.C., Section 1504 . Beginning July 1, 2012, sale s of
816	816		machinery, tools, supplies, equipment, and related tangible personal
817	817		property and services used or consumed in the repair, remodeling , or
818	818		maintenance of aircraft, ai rcraft engines, or aircraft component
819	819		parts which occur at a qualifi ed aircraft maintenance facility;
820	820		21. Sales of machinery and equipment purchased and used by
821	821		persons and establishments p rimarily engaged in computer services
822	822		and data processing:
823	823		a. as defined under Industrial Group Numbers 7372 and
824	824		7373 of the Standard Industrial Classif ication (SIC)
825	825		Manual, latest version, which derive at least fifty
826	826		percent (50%) of their annual gross re venues from the
827	827		sale of a product or service to an out-of-state buyer
828	828		or consumer, and
829	829		b. as defined under Industrial Group Number 7374 of the
830	830		SIC Manual, latest version, which derive at least
831	831		eighty percent (80%) of their annual gross revenues
832	832		from the sale of a product or service to an out -of-
833	833		state buyer or consumer.
834	834
835	835
836	836		Req. No. 2512 Page 12 1
837	837		2
838	838		3
839	839		4
840	840		5
841	841		6
842	842		7
843	843		8
844	844		9
845	845		10
846	846		11
847	847		12
848	848		13
849	849		14
850	850		15
851	851		16
852	852		17
853	853		18
854	854		19
855	855		20
856	856		21
857	857		22
858	858		23
859	859		24
860	860		1
861	861		2
862	862		3
863	863		4
864	864		5
865	865		6
866	866		7
867	867		8
868	868		9
869	869		10
870	870		11
871	871		12
872	872		13
873	873		14
874	874		15
875	875		16
876	876		17
877	877		18
878	878		19
879	879		20
880	880		21
881	881		22
882	882		23
883	883		24
884	884
885	885		Eligibility for the exemption set out in this paragraph shall be
886	886		established, subject t o review by the Tax Commission, by annually
887	887		filing an affidavit with the Tax Commission stating that the
888	888		facility so qualifies and such information as required by the Tax
889	889		Commission. For purposes of determining whether annual gross
890	890		revenues are derived fr om sales to out-of-state buyers or consumers,
891	891		all sales to the federal government shall be considered to be to an
892	892		out-of-state buyer or consumer;
893	893		22. Sales of prosthetic devices to an individual for use by
894	894		such individual. For purposes of this paragraph, “prosthetic
895	895		device” shall have the same meaning as provided in Section 1357.6 of
896	896		this title, but shall not include corrective eye glasses eyeglasses,
897	897		contact lenses, or hearing aids;
898	898		23. Sales of tangible personal property or services to a mo tion
899	899		picture or television production company to be used or consumed in
900	900		connection with an eligible production . For purposes of this
901	901		paragraph, “eligible production” means a documentary, special, music
902	902		video, or a television commercial or television progr am that will
903	903		serve as a pilot for or b e a segment of an ongoing dramatic or
904	904		situation comedy series filmed or taped for network or national or
905	905		regional syndication or a fe ature-length motion picture intended for
906	906		theatrical release or for network or nationa l or regional
907	907		syndication or broadcast . The provisions of this paragraph shall
908	908		apply to sales occurring on or after July 1, 19 96. In order to
909	909
910	910
911	911		Req. No. 2512 Page 13 1
912	912		2
913	913		3
914	914		4
915	915		5
916	916		6
917	917		7
918	918		8
919	919		9
920	920		10
921	921		11
922	922		12
923	923		13
924	924		14
925	925		15
926	926		16
927	927		17
928	928		18
929	929		19
930	930		20
931	931		21
932	932		22
933	933		23
934	934		24
935	935		1
936	936		2
937	937		3
938	938		4
939	939		5
940	940		6
941	941		7
942	942		8
943	943		9
944	944		10
945	945		11
946	946		12
947	947		13
948	948		14
949	949		15
950	950		16
951	951		17
952	952		18
953	953		19
954	954		20
955	955		21
956	956		22
957	957		23
958	958		24
959	959
960	960		qualify for the exemption, the motion picture or television
961	961		production company shall file any documentation and information
962	962		required to be submitted p ursuant to rules promulgated by the Tax
963	963		Commission;
964	964		24. Sales of diesel fuel sold for co nsumption by commercial
965	965		vessels, barges and other commercial watercraft;
966	966		25. Sales of tangible personal property or services t o tax-
967	967		exempt independent nonprofit biome dical research foundations that
968	968		provide educational programs for Oklahoma science student s and
969	969		teachers and to tax-exempt independent nonprofit community blood
970	970		banks headquartered in this state;
971	971		26. Effective May 6, 1992, sales of wireless telecommunicati ons
972	972		equipment to a vendor who subsequently transfers the equipment at no
973	973		charge or for a discounted charge to a consumer as part of a
974	974		promotional package or as an inducement to commence or continue a
975	975		contract for wireless telecommunications services;
976	976		27. Effective January 1, 1991, leases of rail transportation
977	977		cars to haul coal to coal -fired plants located in this state which
978	978		generate electric power;
979	979		28. Beginning July 1, 2005, sales of aircraft engine repairs,
980	980		modification, and replacement parts, sales o f aircraft frame repairs
981	981		and modification, aircraft interior modification, and paint, and
982	982		sales of services employed in the repair, m odification, and
983	983
984	984
985	985		Req. No. 2512 Page 14 1
986	986		2
987	987		3
988	988		4
989	989		5
990	990		6
991	991		7
992	992		8
993	993		9
994	994		10
995	995		11
996	996		12
997	997		13
998	998		14
999	999		15
1000	1000		16
1001	1001		17
1002	1002		18
1003	1003		19
1004	1004		20
1005	1005		21
1006	1006		22
1007	1007		23
1008	1008		24
1009	1009		1
1010	1010		2
1011	1011		3
1012	1012		4
1013	1013		5
1014	1014		6
1015	1015		7
1016	1016		8
1017	1017		9
1018	1018		10
1019	1019		11
1020	1020		12
1021	1021		13
1022	1022		14
1023	1023		15
1024	1024		16
1025	1025		17
1026	1026		18
1027	1027		19
1028	1028		20
1029	1029		21
1030	1030		22
1031	1031		23
1032	1032		24
1033	1033
1034	1034		replacement of parts of aircraft engines, aircraft frame and
1035	1035		interior repair and modification, and paint;
1036	1036		29. Sales of materials and supplies to the owner or operator of
1037	1037		a ship, motor vessel , or barge that is used in interstate or
1038	1038		international commerce if the materials and supplies:
1039	1039		a. are loaded on the ship, motor vessel, or barge and
1040	1040		used in the maintenanc e and operation of t he ship,
1041	1041		motor vessel, or barge, or
1042	1042		b. enter into and become componen t parts of the ship,
1043	1043		motor vessel, or barge;
1044	1044		30. Sales of tangible personal property made at estate sales at
1045	1045		which such property is offered for sale on the premises o f the
1046	1046		former residence of the decedent by a person who is not required to
1047	1047		be licensed pursuant to the Transient Merchant Licensing Ac t, or who
1048	1048		is not otherwise required to obtain a sales tax permit for the sale
1049	1049		of such property pursuant to the provisions o f Section 1364 of this
1050	1050		title; provided:
1051	1051		a. such sale or event may not be held for a perio d
1052	1052		exceeding three (3) consecutive days,
1053	1053		b. the sale must be condu cted within six (6) months of
1054	1054		the date of death of the dec edent, and
1055	1055		c. the exemption allowed by this paragraph shall not be
1056	1056		allowed for property that was not part of the
1057	1057		decedent’s estate;
1058	1058
1059	1059
1060	1060		Req. No. 2512 Page 15 1
1061	1061		2
1062	1062		3
1063	1063		4
1064	1064		5
1065	1065		6
1066	1066		7
1067	1067		8
1068	1068		9
1069	1069		10
1070	1070		11
1071	1071		12
1072	1072		13
1073	1073		14
1074	1074		15
1075	1075		16
1076	1076		17
1077	1077		18
1078	1078		19
1079	1079		20
1080	1080		21
1081	1081		22
1082	1082		23
1083	1083		24
1084	1084		1
1085	1085		2
1086	1086		3
1087	1087		4
1088	1088		5
1089	1089		6
1090	1090		7
1091	1091		8
1092	1092		9
1093	1093		10
1094	1094		11
1095	1095		12
1096	1096		13
1097	1097		14
1098	1098		15
1099	1099		16
1100	1100		17
1101	1101		18
1102	1102		19
1103	1103		20
1104	1104		21
1105	1105		22
1106	1106		23
1107	1107		24
1108	1108
1109	1109		31. Beginning January 1, 2004, sales of elec tricity and
1110	1110		associated delivery and transmission services, when sold exclusiv ely
1111	1111		for use by an oil and gas operator for res ervoir dewatering proj ects
1112	1112		and associated operations commencing on or after July 1, 2003 , in
1113	1113		which the initial water -to-oil ratio is greater than or equal to
1114	1114		five-to-one water-to-oil, and such oil and gas devel opment projects
1115	1115		have been classified by the Co rporation Commission a s a reservoir
1116	1116		dewatering unit;
1117	1117		32. Sales of prewritten computer so ftware that is delivered
1118	1118		electronically. For purposes of this par agraph, “delivered
1119	1119		electronically” means delivered to the purchaser by mean s other than
1120	1120		tangible storage media;
1121	1121		33. Sales of modular dwelling units when built at a production
1122	1122		facility and moved in whole or in parts, to be assembled o n-site,
1123	1123		and permanently affixed to the real property and used for
1124	1124		residential or commercial purpo ses. The exemption provid ed by this
1125	1125		paragraph shall equal forty-five percent (45%) of the total sales
1126	1126		price of the modular dwelling unit. For purposes of this paragraph,
1127	1127		“modular dwelling unit” means a structure that is not subject to the
1128	1128		motor vehicle excise tax imposed pursuant to Section 2103 of th is
1129	1129		title;
1130	1130		34. Sales of tangible personal property or services to p ersons
1131	1131		who are residents of Oklahoma and hav e been honorably disch arged
1132	1132		from active service in any branch of the Armed Forces of the United
1133	1133
1134	1134
1135	1135		Req. No. 2512 Page 16 1
1136	1136		2
1137	1137		3
1138	1138		4
1139	1139		5
1140	1140		6
1141	1141		7
1142	1142		8
1143	1143		9
1144	1144		10
1145	1145		11
1146	1146		12
1147	1147		13
1148	1148		14
1149	1149		15
1150	1150		16
1151	1151		17
1152	1152		18
1153	1153		19
1154	1154		20
1155	1155		21
1156	1156		22
1157	1157		23
1158	1158		24
1159	1159		1
1160	1160		2
1161	1161		3
1162	1162		4
1163	1163		5
1164	1164		6
1165	1165		7
1166	1166		8
1167	1167		9
1168	1168		10
1169	1169		11
1170	1170		12
1171	1171		13
1172	1172		14
1173	1173		15
1174	1174		16
1175	1175		17
1176	1176		18
1177	1177		19
1178	1178		20
1179	1179		21
1180	1180		22
1181	1181		23
1182	1182		24
1183	1183
1184	1184		States or Oklahoma National Guard and who have be en certified by the
1185	1185		United States Department of Veterans Affairs or its successor to be
1186	1186		in receipt of disabilit y compensation at the one-hundred-percent
1187	1187		rate and the disability shall be permanent and have bee n sustained
1188	1188		through military action or accident or resulting from disease
1189	1189		contracted while in such active service o r the surviving spouse of
1190	1190		such person if the person is deceased an d the spouse has not
1191	1191		remarried; provided, sales for the benefit of the pers on to a spouse
1192	1192		of the eligible person or to a me mber of the household in which the
1193	1193		eligible person resides and who is authorized to make purchases on
1194	1194		the person’s behalf, when such eligible person is not present at the
1195	1195		sale, shall also be exempt for purpos es of this paragraph . The
1196	1196		Oklahoma Tax Commissi on shall issue a separate exemp tion card to a
1197	1197		spouse of an eligible person or to a member of the household in
1198	1198		which the eligible pers on resides who is authorized to make
1199	1199		purchases on the person’s behalf, if requested by the eligible
1200	1200		person. Sales qualifying for the exemption authorized by this
1201	1201		paragraph shall not exceed Twenty-five Thousand Dollars ($25,000.00)
1202	1202		per year per individual while the disabled veteran is living. Sales
1203	1203		qualifying for the exemption a uthorized by this paragrap h shall not
1204	1204		exceed One Thousand Dollars ($1,000.00) p er year for an unremarried
1205	1205		surviving spouse. Upon request of the Tax Commission , a person
1206	1206		asserting or claiming the exemption authorized by this paragrap h
1207	1207		shall provide a state ment, executed under oath, that the total sales
1208	1208
1209	1209
1210	1210		Req. No. 2512 Page 17 1
1211	1211		2
1212	1212		3
1213	1213		4
1214	1214		5
1215	1215		6
1216	1216		7
1217	1217		8
1218	1218		9
1219	1219		10
1220	1220		11
1221	1221		12
1222	1222		13
1223	1223		14
1224	1224		15
1225	1225		16
1226	1226		17
1227	1227		18
1228	1228		19
1229	1229		20
1230	1230		21
1231	1231		22
1232	1232		23
1233	1233		24
1234	1234		1
1235	1235		2
1236	1236		3
1237	1237		4
1238	1238		5
1239	1239		6
1240	1240		7
1241	1241		8
1242	1242		9
1243	1243		10
1244	1244		11
1245	1245		12
1246	1246		13
1247	1247		14
1248	1248		15
1249	1249		16
1250	1250		17
1251	1251		18
1252	1252		19
1253	1253		20
1254	1254		21
1255	1255		22
1256	1256		23
1257	1257		24
1258	1258
1259	1259		amounts for which the exemption is applicable have not exceeded
1260	1260		Twenty-five Thousand Dollars ($25,000.00) per y ear per living
1261	1261		disabled veteran or One Thousand Dollars ($1,000.00) per ye ar for an
1262	1262		unremarried surviving spouse. If the amount of such exempt s ales
1263	1263		exceeds such amount, the s ales tax in excess of the authorized
1264	1264		amount shall be treated as a direct sales t ax liability and may b e
1265	1265		recovered by the Tax Commission in the same manner provided by law
1266	1266		for other taxes, including penalty and interest;
1267	1267		35. Sales of electricity to the ope rator, specifically
1268	1268		designated by the Corporation Commission, of a spacing unit or lease
1269	1269		from which oil is produced or attempted to be produced using
1270	1270		enhanced recovery methods , including, but not limited to, increased
1271	1271		pressure in a producing formation thro ugh the use of water or
1272	1272		saltwater if the electrical usage is associated with and necessary
1273	1273		for the operation of equipment required to inject or circulate
1274	1274		fluids in a producing f ormation for the purpose o f forcing oil or
1275	1275		petroleum into a wellbore for eventu al recovery and production from
1276	1276		the wellhead. In order to be eligible for the s ales tax exemption
1277	1277		authorized by this paragraph, the total content of oil recovered
1278	1278		after the use of enhanced recovery meth ods shall not exceed o ne
1279	1279		percent (1%) by volume . The exemption authorized by this paragr aph
1280	1280		shall be applicable only to the state sa les tax rate and shall not
1281	1281		be applicable to any county or municipal sales tax rate;
1282	1282
1283	1283
1284	1284		Req. No. 2512 Page 18 1
1285	1285		2
1286	1286		3
1287	1287		4
1288	1288		5
1289	1289		6
1290	1290		7
1291	1291		8
1292	1292		9
1293	1293		10
1294	1294		11
1295	1295		12
1296	1296		13
1297	1297		14
1298	1298		15
1299	1299		16
1300	1300		17
1301	1301		18
1302	1302		19
1303	1303		20
1304	1304		21
1305	1305		22
1306	1306		23
1307	1307		24
1308	1308		1
1309	1309		2
1310	1310		3
1311	1311		4
1312	1312		5
1313	1313		6
1314	1314		7
1315	1315		8
1316	1316		9
1317	1317		10
1318	1318		11
1319	1319		12
1320	1320		13
1321	1321		14
1322	1322		15
1323	1323		16
1324	1324		17
1325	1325		18
1326	1326		19
1327	1327		20
1328	1328		21
1329	1329		22
1330	1330		23
1331	1331		24
1332	1332
1333	1333		36. Sales of intrastate charter and to ur bus transportation .
1334	1334		As used in this paragraph, “intrastate charter and tour bus
1335	1335		transportation” means the transportation of perso ns from one
1336	1336		location in this state to another location in this state in a motor
1337	1337		vehicle which has been constructed in such a manner that it may
1338	1338		lawfully carry more than eightee n persons, and which is ordinarily
1339	1339		used or rented to carry persons for compensat ion. Provided, this
1340	1340		exemption shall not apply to regularly scheduled bu s transportation
1341	1341		for the general public;
1342	1342		37. Sales of vitamins, minerals , and dietary supplements by a
1343	1343		licensed chiropractor to a person wh o is the patient of such
1344	1344		chiropractor at the physical location whe re the chiropractor
1345	1345		provides chiropractic care or services to such patient . The
1346	1346		provisions of this p aragraph shall not be a pplicable to any drug,
1347	1347		medicine, or substance for which a prescrip tion by a licensed
1348	1348		physician is required;
1349	1349		38. Sales of goods, wares, merchandise, tangible personal
1350	1350		property, machinery, and equipment to a web search portal located in
1351	1351		this state which deri ves at least eighty percent (80% ) of its annual
1352	1352		gross revenue from the sale of a product or service to an out -of-
1353	1353		state buyer or consumer. For purposes of this paragraph, “web
1354	1354		search portal” means an establishment classified under N AICS code
1355	1355		519130 which operates websites that use a sear ch engine to generate
1356	1356
1357	1357
1358	1358		Req. No. 2512 Page 19 1
1359	1359		2
1360	1360		3
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1406	1406
1407	1407		and maintain extensive databases of Internet addresses and content
1408	1408		in an easily searchable format;
1409	1409		39. Sales of tangible personal property consumed or
1410	1410		incorporated in the constr uction or expansion of a facility for a
1411	1411		corporation organized under Section 437 et seq. o f Title 18 of the
1412	1412		Oklahoma Statutes as a rur al electric cooperativ e. For purposes of
1413	1413		this paragraph, sales made to a contractor or subcontra ctor that has
1414	1414		previously entered into a contractua l relationship with a rural
1415	1415		electric cooperative for construction or expansion of a facility
1416	1416		shall be considered sales made to a ru ral electric cooperative;
1417	1417		40. Sales of tangible personal property or servi ces to a
1418	1418		business primarily engaged in the repair of consumer electronic
1419	1419		goods, including, but not limited to, cell phones, compact disc
1420	1420		players, personal comp uters, MP3 players, di gital devices for the
1421	1421		storage and retrieval of information through hard -wired or wireless
1422	1422		computer or Internet connections, i f the devices are sold to the
1423	1423		business by the original manufactur er of such devices and the
1424	1424		devices are repaired, refitted, or refurbished for sale by the
1425	1425		entity qualifying for the exemption authorized by t his paragraph
1426	1426		directly to retail consumers or if t he devices are sold to another
1427	1427		business entity for sale to retail consumers;
1428	1428		41. On or after July 1, 2019, a nd prior to July 1, 20 24, sales
1429	1429		or leases of rolling stock when sold or leased by the manufacture r,
1430	1430		regardless of whether t he purchaser is a public services corporation
1431	1431
1432	1432
1433	1433		Req. No. 2512 Page 20 1
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1481	1481
1482	1482		engaged in business as a common carrier of property or passengers by
1483	1483		railway, for use or consumption by a com mon carrier directly in the
1484	1484		rendition of public service. For purposes of this paragraph,
1485	1485		“rolling stock” means locomotives, autocars, and railroad cars and
1486	1486		“sales or leases” includes railroad car maintenance and retrofitting
1487	1487		of railroad cars for their fur ther use only on the railways;
1488	1488		42. Sales of gold, silver, platinum, pallad ium, or other
1489	1489		bullion items such as coins and bars and legal tender of any nation,
1490	1490		which legal tender is sold accor ding to its value as precious metal
1491	1491		or as an investment. As used in the paragraph, “bullion” means any
1492	1492		precious metal, including, but not li mited to, gold, silver,
1493	1493		platinum, and palladium, that is in such a state or condition that
1494	1494		its value depends upon i ts precious metal content and not its form .
1495	1495		The exemption authori zed by this paragraph shall not apply to
1496	1496		fabricated metals that have been p rocessed or manufactured f or
1497	1497		artistic use or as je welry; and
1498	1498		43. Until January 2027, s ales of commercial forestry service
1499	1499		equipment, limited to forwarders, fe llers, bunchers, track skidders,
1500	1500		wheeled skidders, hydraulic excavators, delimbers, soil compacto rs
1501	1501		and skid steer loaders, to businesses engaged i n logging, timber,
1502	1502		and tree farming; and
1503	1503		44. That portion of the gross receipts or gross proceeds
1504	1504		derived from the sale of parts which constitutes core charges which
1505	1505		are received for the purpose of securin g a trade-in for the article
1506	1506
1507	1507
1508	1508		Req. No. 2512 Page 21 1
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1556	1556
1557	1557		purchased. If the ar ticle is not traded in, the tax is due on the
1558	1558		core charge. For purposes of this paragraph “core charge” means a
1559	1559		form of deposit paid when purchasing a part that is refunded when
1560	1560		the used part is brought for exchange.
1561	1561		SECTION 2. This act shall become effective November 1, 2022.
1562	1562
1563	1563		58-2-2512 QD 1/20/2022 8:03:24 AM