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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 1487 By: Montgomery
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to sales tax code; amending 68 O.S.
66	66	2021, Sections 1355 and 1361, which relate to
67	67	exemptions and consumer to pay tax ; requiring sales
68	68	tax to be paid in one or t wo installments; requiring
69	69	installments to be paid in certain period and manner;
70	70	and providing an effec tive date.
71	71
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74	74
75	75	BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
76	76	SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
77	77	amended to read as follows:
78	78	Section 1355. There are hereby specifically exempted from the
79	79	tax levied pursuant to the pro visions of Section 1350 et seq. of
80	80	this title:
81	81	1. Sale of gasoline, motor fuel, methano l, "M-85" which is a
82	82	mixture of methanol an d gasoline containing at least eighty -five
83	83	percent (85%) methanol, compressed natural gas, liquefied natural
84	84	gas, or liquefied petroleum gas on which the Motor Fue l Tax,
85	85	Gasoline Excise Tax, Special Fuels Tax or t he fee in lieu of Special
86	86	Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or
87	87	Section 701 et seq. of this title has been, or will be paid;
88	88
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139	139	2. For the sale of motor vehicles or any optional eq uipment or
140	140	accessories attached to motor vehicles on which the Oklahoma Motor
141	141	Vehicle Excise Tax levied in Section 2101 et seq. of this title has
142	142	been, or will be paid, all but a portion of the levy provided under
143	143	Section 1354 of this title, equal to one a nd twenty-five-hundredths
144	144	percent (1.25%) of the g ross receipts of such sales. Provided, the
145	145	sale of motor vehicles shall not be subject to any sales and use
146	146	taxes levied by cities, counties , or other jurisdictions of the
147	147	state. The portion of the tax levy provided under Section 1354 of
148	148	this title for the sale of motor vehicles or any optional equipment
149	149	or accessories attached to motor vehicles may be paid in one (1)
150	150	installment by the consumer in the same manner and time as the motor
151	151	vehicle excise tax f or the motor vehicle is due and shall include a
152	152	quarter, half, or the full amount of tax levied , but shall pe paid
153	153	in no more than two (2) installments. If paid in two (2)
154	154	installments the consumer shall pay the remaining amount of tax
155	155	levied during the first period for registration renewal pursuant to
156	156	the Oklahoma Vehicle Licens e and Registration Act, Section 1101 et
157	157	seq. of Title 47 of the Oklahoma Statutes;
158	158	3. Sale of crude petroleum or natural or c asinghead gas and
159	159	other products subject to gross prod uction tax pursuant to the
160	160	provisions of Section 1 001 et seq. and Section 1101 et seq. of this
161	161	title. This exemption shall not apply when such products are sold
162	162	to a consumer or user for consumption or use, except when used for
163	163
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214	214	injection into the earth fo r the purpose of promoting or
215	215	facilitating the pro duction of oil or gas. This paragraph shall not
216	216	operate to increase or repeal the gross production tax levied by the
217	217	laws of this state;
218	218	4. Sale of aircraft on which the tax levi ed pursuant to the
219	219	provisions of Sections 6001 through 6007 of this title ha s been, or
220	220	will be paid or which are specifically exempt from such tax pursuant
221	221	to the provisions of Section 6003 of this title;
222	222	5. Sales from coin-operated devices on which the f ee imposed by
223	223	Sections 1501 through 1512 of this title has been paid;
224	224	6. Leases of twelve (12) months or more of motor vehicles in
225	225	which the owners of the vehicles have paid the vehicle excise tax
226	226	levied by Section 2103 of this title;
227	227	7. Sales of charity game equipment on which a tax is levied
228	228	pursuant to the Oklahoma Charity Ga mes Act, Section 401 et seq. of
229	229	Title 3A of the Oklahoma Statutes, or which is sold to an
230	230	organization that is:
231	231	a. a veterans' organization exempt from taxation pursuant
232	232	to the provisions of paragraph (4), (7), (8), (10) or
233	233	(19) of subsection (c) of Sectio n 501 of the United
234	234	States Internal Revenue Code of 1986, as amended, 26
235	235	U.S.C., Section 501(c) et seq.,
236	236	b. a group home for mentally disabled individua ls exempt
237	237	from taxation pursuant to the provisions of paragraph
238	238
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289	289	(3) of subsection (c) of Section 501 of the United
290	290	States Internal Revenue Code of 1986, as amended, 26
291	291	U.S.C., Section 501(c) et seq., or
292	292	c. a charitable health care organization which is exe mpt
293	293	from taxation pursuant t o the provisions of paragr aph
294	294	(3) of subsection (c) of Section 501 of the Un ited
295	295	States Internal Revenue Code of 1986, as amended, 26
296	296	U.S.C., Section 501(c) et seq.;
297	297	8. Sales of cigarettes or tobacco products to:
298	298	a. a federally recognized Indian tribe or nation which
299	299	has entered into a compact with the State of Oklahoma
300	300	pursuant to the provisions of subsection C of Section
301	301	346 of this title or to a licensee of such a tribe or
302	302	nation, upon which the payment in lieu of taxes
303	303	required by the compact has been paid, or
304	304	b. a federally recognized Indian tribe or nation or to a
305	305	licensee of such a tribe or nation upon which the tax
306	306	levied pursuant to the provisions of Section 349.1 or
307	307	Section 426 of this title has been paid;
308	308	9. Leases of aircraft upon which the own ers have paid the
309	309	aircraft excise tax levied by Section 6001 et seq. of this title or
310	310	which are specifically exempt from such tax pursuant to the
311	311	provisions of Section 6003 of this title;
312	312
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363	363	10. The sale of low -speed or medium-speed electrical vehicles
364	364	on which the Oklahoma Motor Veh icle Excise Tax levied in Section
365	365	2101 et seq. of this title has been or will be paid;
366	366	11. Effective January 1, 2005, sales of cigarettes on which the
367	367	tax levied in Section 301 et seq. of this title o r tobacco products
368	368	on which the tax levied in Section 4 01 et seq. of this title has
369	369	been paid; and
370	370	12. Sales of electricity at charging stations as defined by
371	371	Section 2 of this act 6502 of this title when the electricity is
372	372	sold by a charging station owne r or operator for purposes o f
373	373	charging an electric vehi cle as defined by Section 2 of this act
374	374	6502 of this title and the tax imposed pursuant to Section 4 of this
375	375	act 6504 of this title is collected and remitted to the Oklahoma Tax
376	376	Commission.
377	377	SECTION 2. AMENDATORY 68 O.S. 2021, Sect ion 1361, is
378	378	amended to read as follows:
379	379	Section 1361. A. 1. Except as otherwise provided by
380	380	subsection C of this section, the tax levied by Section 1350 et seq.
381	381	of this title shall be paid by the c onsumer or user to the vendor as
382	382	trustee for and on acc ount of this state. Except as otherwise
383	383	provided by subsection C of this section, each and every vendor in
384	384	this state shall collect from the consumer or user the full amount
385	385	of the tax levied by Secti on 1350 et seq. of this title, or an
386	386	amount equal as nearly as possible or practicable to the average
387	387
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438	438	equivalent thereof. Every person required to collect any tax
439	439	imposed by Section 1350 et seq. of this title shall be personally
440	440	liable for the tax.
441	441	2. However, the Oklahoma Tax Commission shall relieve seller s
442	442	or certified service providers that follow the r equirements of this
443	443	section from the tax otherwise applicable if it is determined that
444	444	the purchaser improperly claimed an exemption and to hold the
445	445	purchaser liable for the nonpayment of tax. This relief from
446	446	liability does not apply to:
447	447	a. a seller or certified service provider (CSP) who
448	448	fraudulently fails to collect tax,
449	449	b. a seller who solicits purchasers to participate in the
450	450	unlawful claim of an e xemption, or
451	451	c. a seller who accepts an exemption certi ficate when the
452	452	purchaser claims an entity -based exemption when:
453	453	(1) the subject of the transaction sought to be
454	454	covered by the exemption certificate is actually
455	455	received by the purchaser at a location operated
456	456	by the seller, and
457	457	(2) the Tax Commission pro vides an exemption
458	458	certificate that clearly and af firmatively
459	459	indicates that the claimed exemption is not
460	460	available in this state.
461	461
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512	512	3. The Tax Commission shall relieve a seller or CSP of the tax
513	513	otherwise applicable if the seller obtains a fully completed
514	514	exemption certificate or captures the relevant dat a elements
515	515	required by the Tax Commission within ninety (90) days subsequent to
516	516	the date of sale.
517	517	If the seller or CSP has not obtained an exemption ce rtificate
518	518	or all relevant data elements as provided by the Tax Commission, the
519	519	seller may, within one hun dred twenty (120) days subsequent to a
520	520	request for substantiation, either prove that the transaction was
521	521	not subject to tax by other means or obtain a fully completed
522	522	exemption certificate from the purchase r, taken in good faith.
523	523	The Tax Commission shall r elieve a seller or CSP of the tax
524	524	otherwise applicable if it obtains a blanket exemption certificate
525	525	for a purchaser with which the seller has a recurr ing business
526	526	relationship. The Tax Commission shall no t request from the seller
527	527	or CSP renewal of blanke t certificates or updates of exemption
528	528	certificate information or data elements when there is a recurring
529	529	business relationship between the buyer and s eller. For purposes of
530	530	this section, a recurring busin ess relationship exists when a period
531	531	of no more than twelve (12) months elapses between sales
532	532	transactions.
533	533	4. Upon the granting of relief from liability to the vendor as
534	534	provided in this section, th e purchaser shall be liable for the
535	535	remittance of the tax, interest and penalty due thereon and the Tax
536	536
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587	587	Commission shall pursue collection thereof from the purchaser in any
588	588	manner in which sales tax may be collected from a vendor.
589	589	B. Except as otherwise p rovided by subsection C of this
590	590	section, vendors shall add the tax imposed by Section 1350 et seq.
591	591	of this title, or the average equivalent thereof, to the sales
592	592	price, charge, consideration, gross receipts or gross proceeds of
593	593	the sale of tangible persona l property or services taxed by Section
594	594	1350 et seq. of this title, and when added such tax shall constit ute
595	595	a part of such price or charge, shall be a debt from the consumer or
596	596	user to vendor until paid, and shall be recoverable at law in the
597	597	same manner as other debts.
598	598	C. A person who has obtained a direct payment permit as
599	599	provided in Section 1364.1 of th is title shall accrue all taxes
600	600	imposed pursuant to Section 1354 or 1402 of this title on all
601	601	purchases made by the person pursuant to the permit at th e time the
602	602	purchased items are first used or consumed i n a taxable manner and
603	603	pay the accrued tax directl y to the Oklahoma Tax Commission on
604	604	reports as required by Section 1365 of this title.
605	605	D. Except as otherwise provided by subsection C of this
606	606	section, a vendor who willfully or intentionally fails, neglec ts or
607	607	refuses to collect the full amount of the ta x levied by Section 1350
608	608	et seq. of this title, or willfully or intentionally fails, neglects
609	609	or refuses to comply with the provisions of Section 1350 et seq. of
610	610	this title, or remits or rebates to a consum er or user, either
611	611
612	612
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662	662	directly or indirectly, and by whatsoever means, all or any part of
663	663	the tax levied by Section 1350 et seq. of this title, or makes in
664	664	any form of advertising, verbally or otherwise, any statement which
665	665	implies that the vendor is absorbin g the tax, or paying the tax for
666	666	the consumer or user by an adjustment of prices or at a price
667	667	including the tax, or in any manner whatsoever, shall be deemed
668	668	guilty of a misdemeanor, and upon convicti on thereof shall be fined
669	669	not more than Five Hundred Do llars ($500.00), and upon conviction
670	670	for a second or other subsequent offense shall be fined not more
671	671	than One Thousand Dollars ($1,000.00), or incarcerated for not more
672	672	than sixty (60) days, or both. Provided, sales by vending machines
673	673	may be made at a stated price which includes state and any municipal
674	674	sales tax.
675	675	E. A consumer or user who willfully or intentionally fails,
676	676	neglects or refuses to pay the full amount of tax levied by Section
677	677	1350 et seq. of this title or willfully or intentionally uses a
678	678	sales tax permit or direct payment permit which is invalid, expired,
679	679	revoked, canceled or otherwise limited to a specific line of
680	680	business or willfully or intentionally issues a resale certificate
681	681	to a vendor to evade the tax levied by Section 1350 et seq. of this
682	682	title shall be subject to a penalty in the amount of Five Hundred
683	683	Dollars ($500.00) per reporting period upon determination thereof,
684	684	which shall be apportioned as provided for the apportionment of the
685	685	tax.
686	686
687	687
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737	737	F. Any sum or sums collected or accrued o r required to be
738	738	collected or accrued in Section 1 350 et seq. of this title shall be
739	739	deemed to be held in trust for the State of Oklahoma, and, as
740	740	trustee, the collecting vendor or holder of a direct p ayment permit
741	741	as provided for in Section 1364.1 of this title shall have a
742	742	fiduciary duty to the State of Oklahoma in regards to such sums and
743	743	shall be subject to the trust laws of this state.
744	744	G. Notwithstanding the provisions of this section, the sales
745	745	tax associated with the purchase of a motor vehicle shall may be
746	746	paid by the consumer in the same manner and time as the motor
747	747	vehicle excise tax for said motor vehicle is due in one (1)
748	748	installment in the same manner and time as the motor vehicle excise
749	749	tax for the motor vehicle is d ue and shall include a quarter, half,
750	750	or the full amount of tax levied, but s hall pe paid in no more than
751	751	two (2) installments. If paid in two (2) instal lments the consumer
752	752	shall pay the remaining amount of tax levied during the first period
753	753	for registration renewal pursuant to the Oklahoma Vehicle Licens e
754	754	and Registration Act, Se ction 1101 et seq. of Title 47 of the
755	755	Oklahoma Statutes.
756	756	SECTION 3. This act shall become effective November 1, 2022.
757	757
758	758	58-2-2694 QD 1/20/2022 8:03:51 AM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1487 Compare Versions