OK
Oklahoma Senate Bill SB1486

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1486 Compare Versions

OldNewDifferences
11
22
3-ENGR. H. A. to ENGR. S. B. NO. 1486 Page 1 1
3+SB1486 HFLR Page 1
4+BOLD FACE denotes Committee Amendments. 1
45 2
56 3
67 4
78 5
89 6
910 7
1011 8
1112 9
1213 10
1314 11
1415 12
1516 13
1617 14
1718 15
1819 16
1920 17
2021 18
2122 19
2223 20
2324 21
2425 22
2526 23
2627 24
2728
28-ENGROSSED HOUSE AMENDME NTS
29- TO
30-ENGROSSED SENATE BILL NO . 1486 By: Jech and David of the
31-Senate
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+2nd Session of the 58th Legislature (2022)
34+
35+ENGROSSED SENATE
36+BILL NO. 1486 By: Jech, David and Allen of
37+the Senate
3238
3339 and
3440
3541 Newton of the House
3642
3743
3844
39-
40-An Act relating to sales and use tax; amending 68
41-O.S. 2021, Sections 1355 and 1404 , which relate to
42-exemptions on the sale of a motor vehicle; modifying
43-the basis upon which gross receipts are calculated
44-for the purposes of sales tax and purchase price is
45-calculated for the purposes of use tax; and pro viding
46-an effective date.
47-
48-
49-
50-AUTHOR: Add the following House Coauthor: Bashore
51-
52-AUTHOR: Add the following Senate Coauthor: Allen
53-
54-AMENDMENT NO. 1. Page 1, lines 6 through 9, strike title to read
55-
56-"[ sales and use tax – modifying the basis upon which
45+[ sales and use tax - modifying the basis upon which
5746 gross receipts are calculated for the purposes of
58-sales tax and purchase price i s calculated –
59-effective date ]"
60-
61-
62-AMENDMENT NO. 2. Page 1, line 11, strike the enacting clause
47+sales tax and purchase price is calculated -
48+effective date ]
6349
6450
6551
6652
53+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
54+SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
55+amended to read as follows:
56+Section 1355. There are hereby specifically exempted from t he
57+tax levied pursuant to the provis ions of Section 1350 e t seq. of
58+this title:
59+1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
60+mixture of methanol an d gasoline containing at least eighty -five
61+percent (85%) methanol, compressed natural gas, l iquefied natural
62+gas, or liquefied petroleum gas on which the Motor Fuel Tax,
6763
68-ENGR. H. A. to ENGR. S. B. NO. 1486 Page 2 1
64+SB1486 HFLR Page 2
65+BOLD FACE denotes Committee Amendments. 1
6966 2
7067 3
7168 4
7269 5
7370 6
7471 7
7572 8
7673 9
7774 10
7875 11
7976 12
8077 13
8178 14
8279 15
8380 16
8481 17
8582 18
8683 19
8784 20
8885 21
8986 22
9087 23
9188 24
9289
93-Passed the House of Representatives the 26th day of April, 2022.
90+Gasoline Excise Tax, Special Fuels Tax or the fee in lieu of Special
91+Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or
92+Section 701 et seq. of this title has been, or will be paid;
93+2. For the sale of motor vehicles or an y optional equipment or
94+accessories attached to motor vehicles on which the Oklahoma Motor
95+Vehicle Excise Tax levied in Section 2101 et seq. of this title has
96+been, or will be paid, all but a portio n of the levy provided under
97+Section 1354 of this title, e qual to one and twenty-five-hundredths
98+percent (1.25%) of the gross receipts of such sales. For the
99+purposes of this paragraph, if the sale of a m otor vehicle includes
100+a trade-in, gross receipts shall be calculated based only on the
101+difference between the value of the trade-in vehicle and the ac tual
102+sales price of the vehicle being purchased. Provided, the sale of
103+motor vehicles shall not be subject to any sales and use taxes
104+levied by cities, cou nties or other jurisdictions of the s tate;
105+3. Sale of crude petroleum or natural or casinghead gas and
106+other products subject to gross production tax pursuant to the
107+provisions of Section 1001 et seq. and Section 1101 et seq. of this
108+title. This exemptio n shall not apply when such products are sold
109+to a consumer or user for consumption or use, except w hen used for
110+injection into the earth for the purpose of promot ing or
111+facilitating the production of oil or gas. This paragraph shall not
112+operate to increase or repeal the gross production tax levied by the
113+laws of this state;
94114
95-
96-
97-
98-
99-Presiding Officer of the House of
100- Representatives
101-
102-
103-Passed the Senate the ____ day of __________, 2022.
104-
105-
106-
107-
108-
109-Presiding Officer of the Senate
110-
111-ENGR. S. B. NO. 1486 Page 1 1
115+SB1486 HFLR Page 3
116+BOLD FACE denotes Committee Amendments. 1
112117 2
113118 3
114119 4
115120 5
116121 6
117122 7
118123 8
119124 9
120125 10
121126 11
122127 12
123128 13
124129 14
125130 15
126131 16
127132 17
128133 18
129134 19
130135 20
131136 21
132137 22
133138 23
134139 24
135140
136-ENGROSSED SENATE
137-BILL NO. 1486 By: Jech and David of the
138-Senate
141+4. Sale of aircraft on whic h the tax levied pursuant to the
142+provisions of Sections 6001 th rough 6007 of this title has been, or
143+will be paid or which are specifically exempt from such tax pursuant
144+to the provisions of Se ction 6003 of this tit le;
145+5. Sales from coin-operated devices on which the fee imposed by
146+Sections 1501 through 1512 of this title has been paid;
147+6. Leases of twelve (12) months or more of motor vehicles in
148+which the owners of the vehicles have paid the vehicle excise tax
149+levied by Section 2103 of this title;
150+7. Sales of charity game equipment on which a tax is levied
151+pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
152+Title 3A of the Oklahoma Statutes, or which is sold to an
153+organization that is:
154+a. a veterans’ organization exempt from taxation pursu ant
155+to the provisions of paragraph (4), (7), (8), (10) or
156+(19) of subsection (c) of Section 501 of the United
157+States Internal Revenue Code of 1986, as amend ed, 26
158+U.S.C., Section 501(c) et seq. ,
159+b. a group home for mentally disabled individuals exempt
160+from taxation pursuant to the provisions of paragraph
161+(3) of subsection (c) of Section 501 of the United
162+States Internal Revenue Code of 1986, as amended, 26
163+U.S.C., Section 501(c) et seq., or
139164
140- and
141-
142- Newton of the House
143-
144-
145-
146-An Act relating to sales and use tax; amending 68
147-O.S. 2021, Sections 1355 and 1404 , which relate to
148-exemptions on the sale of a motor vehicle; modifying
149-the basis upon which gross receipts are calculated
150-for the purposes of sales tax and purchase price is
151-calculated for the purposes of use tax; and pro viding
152-an effective date.
153-
154-
155-
156-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
157-SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
158-amended to read as follows:
159-Section 1355. There are hereby specifically exempted from t he
160-tax levied pursuant to the provis ions of Section 1350 et seq. of
161-this title:
162-1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
163-mixture of methanol an d gasoline containing at least eighty -five
164-percent (85%) methanol, compressed natural gas, l iquefied natural
165-gas, or liquefied petroleum gas on which the Motor Fuel Tax,
166-Gasoline Excise Tax, Special Fuels Tax or the fee in lieu of Special
167-Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or
168-Section 701 et seq. of this title has been, or will be paid;
169-
170-ENGR. S. B. NO. 1486 Page 2 1
165+SB1486 HFLR Page 4
166+BOLD FACE denotes Committee Amendments. 1
171167 2
172168 3
173169 4
174170 5
175171 6
176172 7
177173 8
178174 9
179175 10
180176 11
181177 12
182178 13
183179 14
184180 15
185181 16
186182 17
187183 18
188184 19
189185 20
190186 21
191187 22
192188 23
193189 24
194190
195-2. For the sale of motor vehicles or any optional equipment or
196-accessories attached to motor vehicles on which the Oklahoma Motor
197-Vehicle Excise Tax levied in Section 2101 et seq. of this title has
198-been, or will be paid, all but a portio n of the levy provided under
199-Section 1354 of this title, equal to one and twenty-five-hundredths
200-percent (1.25%) of the gross receipts of such sales. For the
201-purposes of this paragraph, if the sale of a m otor vehicle includes
202-a trade-in, gross receipts shall be calculated based only on the
203-difference between the value of the trade-in vehicle and the ac tual
204-sales price of the vehicle being purchased. Provided, the sale of
205-motor vehicles shall not be subject to any sales and use taxes
206-levied by cities, cou nties or other jurisdictions of the s tate;
207-3. Sale of crude petroleum or natural or casinghead gas and
208-other products subject to gross production tax pursuant to the
209-provisions of Section 1001 et seq. and Section 1101 et seq. of this
210-title. This exemptio n shall not apply when such products are sold
211-to a consumer or user for consumption or use, except w hen used for
212-injection into the earth for the purpose of promot ing or
213-facilitating the production of oil or gas. This paragraph shall not
214-operate to increase or repeal the gross production tax levied by the
215-laws of this state;
216-4. Sale of aircraft on whic h the tax levied pursuant to the
217-provisions of Sections 6001 th rough 6007 of this title has been, or
191+c. a charitable health car e organization which is exempt
192+from taxation pursuant to the provisions of paragraph
193+(3) of subsection (c) of Section 501 of the United
194+States Internal Revenue Code of 1986, as amended, 26
195+U.S.C., Section 501(c) et seq.;
196+8. Sales of cigarettes or tobacco products to:
197+a. a federally recognized In dian tribe or nation which
198+has entered into a compact with the State of Oklahoma
199+pursuant to the provisions of subsection C of Section
200+346 of this title or to a licensee of such a tribe or
201+nation, upon which the pay ment in lieu of taxes
202+required by the compact has been paid, or
203+b. a federally recognized Indian tribe o r nation or to a
204+licensee of such a tribe or nation upon which the tax
205+levied pursuant to the provisions of Section 349.1 or
206+Section 426 of this title h as been paid;
207+9. Leases of aircraft upon which the owners have paid the
208+aircraft excise tax levied by S ection 6001 et seq. of this title or
209+which are specifically exempt from such tax pursuant to the
210+provisions of Section 6003 of thi s title;
211+10. The sale of low-speed or medium-speed electrical vehicles
212+on which the Oklahoma Motor Vehicle Excise Tax levied in Section
213+2101 et seq. of this title has been or will be paid;
218214
219-ENGR. S. B. NO. 1486 Page 3 1
215+SB1486 HFLR Page 5
216+BOLD FACE denotes Committee Amendments. 1
220217 2
221218 3
222219 4
223220 5
224221 6
225222 7
226223 8
227224 9
228225 10
229226 11
230227 12
231228 13
232229 14
233230 15
234231 16
235232 17
236233 18
237234 19
238235 20
239236 21
240237 22
241238 23
242239 24
243240
244-will be paid or which are specifically exempt from such tax pursuant
245-to the provisions of Se ction 6003 of this title;
246-5. Sales from coin-operated devices on which the fee imposed by
247-Sections 1501 through 1512 of this title has been paid;
248-6. Leases of twelve (12) months or more of motor vehicles in
249-which the owners of the vehicles have paid the vehicle excise tax
250-levied by Section 2103 of this title;
251-7. Sales of charity game equipment on which a tax is levied
252-pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
253-Title 3A of the Oklahoma Statutes, or which is sold to an
254-organization that is:
255-a. a veterans’ organization exempt from taxation pursu ant
256-to the provisions of paragraph (4), (7), (8), (10) or
257-(19) of subsection (c) of Section 501 of the United
258-States Internal Revenue Code of 1986, as amend ed, 26
259-U.S.C., Section 501(c) et seq. ,
260-b. a group home for mentally disabled individuals exempt
261-from taxation pursuant to the provisions of paragraph
262-(3) of subsection (c) of Section 501 of the United
263-States Internal Revenue Code of 1986, as amended, 26
264-U.S.C., Section 501(c) et seq., or
265-c. a charitable health care organization which is exempt
266-from taxation pursuant to the provisions of paragraph
267-(3) of subsection (c) of Section 501 of the United
241+11. Effective January 1, 20 05, sales of cigarettes on which the
242+tax levied in Section 3 01 et seq. of this title or tobacco produ cts
243+on which the tax levied in Section 401 et seq. of this tit le has
244+been paid; and
245+12. Sales of electricity at charging stations as defined by
246+Section 2 of this act when the electricity is so ld by a charging
247+station owner or operator for purposes of char ging an electric
248+vehicle as defined by Section 2 of this act a nd the tax imposed
249+pursuant to Section 4 of this act is collected and remitted to the
250+Oklahoma Tax Commission.
251+SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
252+amended to read as follows:
253+Section 1404. The provisions of Section 1401 et seq. of this
254+title shall not apply:
255+1. In respect to the use of any article of ta ngible personal
256+property brought into the State of Oklahoma by a nonresident
257+individual, visiting in this state, for his or her personal use or
258+enjoyment, while within th e state;
259+2. In respect to the use of tangible personal property
260+purchased for resale before being used;
261+3. In respect to the use of any article of tangible personal
262+property on which a tax, equal to or in excess of that levied by
263+Section 1401 et seq. of this title, has been paid by the person
264+using such tangible personal property in this state, whether such
268265
269-ENGR. S. B. NO. 1486 Page 4 1
266+SB1486 HFLR Page 6
267+BOLD FACE denotes Committee Amendments. 1
270268 2
271269 3
272270 4
273271 5
274272 6
275273 7
276274 8
277275 9
278276 10
279277 11
280278 12
281279 13
282280 14
283281 15
284282 16
285283 17
286284 18
287285 19
288286 20
289287 21
290288 22
291289 23
292290 24
293291
294-States Internal Revenue Code of 1986, as amended, 26
295-U.S.C., Section 501(c) et seq.;
296-8. Sales of cigarettes or tobacco products to:
297-a. a federally recognized In dian tribe or nation which
298-has entered into a compact with the State of Oklahoma
299-pursuant to the provisions of subsection C of Section
300-346 of this title or to a licensee of such a tribe or
301-nation, upon which the payment in lieu of taxes
302-required by the compact has been paid, or
303-b. a federally recognized Indian tribe o r nation or to a
304-licensee of such a tribe or nation upon which the tax
305-levied pursuant to the provisions of Section 349.1 or
306-Section 426 of this title has been paid;
307-9. Leases of aircraft upon which the owners have paid the
308-aircraft excise tax levied by S ection 6001 et seq. of this title or
309-which are specifically exempt from such tax pursuant to the
310-provisions of Section 6003 of thi s title;
311-10. The sale of low-speed or medium-speed electrical vehicles
312-on which the Oklahoma Motor Vehicle Excise Tax levied in Section
313-2101 et seq. of this title has been or will be paid;
314-11. Effective January 1, 20 05, sales of cigarettes on which the
315-tax levied in Section 301 et seq. of this title or tobacco produ cts
316-on which the tax levied in Section 401 et seq. of this tit le has
317-been paid; and
292+tax was levied under the laws of this st ate or some other state of
293+the United States. If any article of tangible personal property has
294+already been subjected to a tax, by this or any other state, in
295+respect to its sale or use, in an am ount less than the tax imposed
296+by Section 1401 et seq. of th is title, the provisions of Section
297+1401 et seq. of this title shall apply to it by a rate measured by
298+the difference only between the rate herein provided and the rate by
299+which the previous tax u pon the sale or use was computed. Pro vided,
300+that no credit shall be given for taxes paid in another state, if
301+that state does not grant like credit for taxes paid in Okl ahoma;
302+4. In respect to the use of tangible personal property now
303+specifically exempted from taxation under Oklahoma Sales Tax Code.
304+Provided, for the sale of motor vehicles or any opti onal equipment
305+or accessories attached to motor vehicles on which the Oklahoma
306+Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
307+2108 of this title has been, or will be paid, th e exceptions shall
308+apply to all but a portion of the levy provi ded under Section 1402
309+of this title, equal to one and twenty -five-hundredths percent
310+(1.25%) of the purchase price. For the purposes of this para graph,
311+if the sale of a motor vehicle includes a trade-in, the purchase
312+price shall be calculated based only on the difference between the
313+value of the trade-in vehicle and the actual purchase price of the
314+vehicle being purchased. Provided further, the sale of m otor
318315
319-ENGR. S. B. NO. 1486 Page 5 1
316+SB1486 HFLR Page 7
317+BOLD FACE denotes Committee Amendments. 1
320318 2
321319 3
322320 4
323321 5
324322 6
325323 7
326324 8
327325 9
328326 10
329327 11
330328 12
331329 13
332330 14
333331 15
334332 16
335333 17
336334 18
337335 19
338336 20
339337 21
340338 22
341339 23
342340 24
343341
344-12. Sales of electricity at charging stations as defined by
345-Section 2 of this act when the electricity is so ld by a charging
346-station owner or operator for purposes of char ging an electric
347-vehicle as defined by Section 2 of this act a nd the tax imposed
348-pursuant to Section 4 of this act is collected and remitted to the
349-Oklahoma Tax Commission.
350-SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
351-amended to read as follows:
352-Section 1404. The provisions of Section 1401 et seq. of this
353-title shall not apply:
354-1. In respect to the use of any article of ta ngible personal
355-property brought into the State of Oklahoma by a nonresident
356-individual, visiting in this state, for his or her personal use or
357-enjoyment, while within the state;
358-2. In respect to the use of tangible personal property
359-purchased for resale before being used;
360-3. In respect to the use of any article of tangible personal
361-property on which a tax, equal to or in excess of that levied by
362-Section 1401 et seq. of this title, has been paid by the person
363-using such tangible personal property in this state, whether such
364-tax was levied under the laws of this state or some other state of
365-the United States. If any article of tangible personal property has
366-already been subjected to a tax, by this or any other state, in
367-respect to its sale or use, in an am ount less than the tax imposed
368-
369-ENGR. S. B. NO. 1486 Page 6 1
370-2
371-3
372-4
373-5
374-6
375-7
376-8
377-9
378-10
379-11
380-12
381-13
382-14
383-15
384-16
385-17
386-18
387-19
388-20
389-21
390-22
391-23
392-24
393-
394-by Section 1401 et seq. of this title, the provisions of Section
395-1401 et seq. of this title shall apply to it by a rate measured by
396-the difference only between the rate herein provided and the rate by
397-which the previous tax u pon the sale or use was computed. Pro vided,
398-that no credit shall be given for taxes paid in another state, if
399-that state does not grant like credit for taxes paid in Oklahoma;
400-4. In respect to the use of tangible personal property now
401-specifically exempted from taxation under Oklahoma Sales Tax Code.
402-Provided, for the sale of motor vehicles or any opti onal equipment
403-or accessories attached to motor vehicles on which the Oklahoma
404-Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
405-2108 of this title has been, or will be paid, th e exceptions shall
406-apply to all but a portion of the levy provi ded under Section 1402
407-of this title, equal to one and twenty -five-hundredths percent
408-(1.25%) of the purchase price. For the purposes of this para graph,
409-if the sale of a motor vehicl e includes a trade-in, the purchase
410-price shall be calculated based only on the difference between the
411-value of the trade-in vehicle and the actual purchase price of the
412-vehicle being purchased. Provided further, the sale of m otor
413342 vehicles shall not be subject to a ny sales and use taxes levied by
414343 cities, counties or other juri sdictions of the state;
415344 5. In respect to the use of any article or t angible personal
416345 property brought into the state by an individual with intent to
417-
418-ENGR. S. B. NO. 1486 Page 7 1
419-2
420-3
421-4
422-5
423-6
424-7
425-8
426-9
427-10
428-11
429-12
430-13
431-14
432-15
433-16
434-17
435-18
436-19
437-20
438-21
439-22
440-23
441-24
442-
443346 become a resident of this state where such personal property is f or
444347 such individual’s personal use or enjo yment;
445348 6. In respect to the use of any article of tangible personal
446349 property used or to be used by co mmercial airlines or railroads;
447350 7. In respect to li vestock purchased outside this state an d
448351 brought into this st ate for feeding or breeding purposes, and which
449352 is later resold; and
450353 8. Effective January 1, 1991, in respect to the use of rail
451354 transportation cars to haul coal to coal -fired plants located in
452355 this state which generate electric powe r.
453356 SECTION 3. This act shall become effective November 1, 2022.
454-Passed the Senate the 21st day of March, 2022.
455357
456-
457-
458- Presiding Officer of the Senate
459-
460-
461-Passed the House of Representatives the ____ day of __________,
462-2022.
463-
464-
465-
466- Presiding Officer of the House
467- of Representatives
468-
469-
358+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS A ND BUDGET, dated
359+04/11/2022 - DO PASS, As Amended and Coauthored .