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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1490 By: Montgomery
AS INTRODUCED
An Act relating to sales tax; amending 68 O.S. 2021,
Section 1356, as last amended by Section 1, Chapter
539, O.S.L. 2021, which relates to exemptions;
providing exemption for certain organization that
provides service to United Sta tes Fish and Wildlife
Service; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356 , as
last amended by Section 1, Chap ter 539, O.S.L. 2021 , is amended to
read as follows:
Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby specifically exempted from the tax l evied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or se rvices to the United
States government or to the State of Oklahoma this state, any
political subdivision of this stat e, or any agency of a political
subdivision of this state; provided, all sales to contractors in
connection with the performance of any contract with t he United
States government, State of Oklahoma this state, or any of its
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political subdivisions shall not be exempted from the tax levied by
Section 1350 et seq. of this title, except as hereina fter provided;
2. Sales of property to agents appointed by or under contr act
with agencies or instrumentalities of the Unit ed States government
if ownership and posse ssion of such property transfers immediately
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdi vision of this state if the sale of such
property is associated with the development of a qua lified federal
facility, as provided in the Oklaho ma Federal Facilities Development
Act, and if ownership and possession of s uch property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county, district , or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county, district, or state fair authorities; provided,
the exemption provided by this p aragraph for admission tickets to
fair events shall apply only to any porti on of the admission price
that is retained by or distributed to the fair authority . As used
in this paragraph, “fair event” shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district, or state fair;
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5. Sale of food in cafeterias or lunchrooms of elementary
schools, high schools, colleges, or universities which are operated
primarily for teachers and p upils and are not operated primarily fo r
the public or for profit;
6. Dues paid to fraternal, religious, civic, char itable, or
educational societies or organizatio ns by regular members thereof,;
provided, such societies or organizations operate under what is
commonly termed the lodge plan or sy stem, and provided such
societies or organizations do not operate for a profit which inures
to the benefit of any individual member or members thereof to the
exclusion of other members and dues paid monthly or annual ly to
privately owned scientific and edu cational libraries by members
sharing the use of services rendered by such libr aries with students
interested in the study of geology, petroleum engineering , or
related subjects;
7. Sale of tangible personal propert y or services to or by
churches, except sales made in the course of business for profit or
savings, competing with other persons engaged in the same , or a
similar business or sale of tangible personal prope rty or services
by an organization exempt from fed eral income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
made on behalf of or at t he request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to exceed three (3) days by the organizatio n
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and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable purpose s;
8. The amount of proceeds received f rom the sale of admission
tickets which is separat ely stated on the ticket of admission fo r
the repayment of money borrowed by any accredited state-supported
college or university or any public trust of which a coun ty in this
state is the beneficiary, for the purpose of constructing or
enlarging any facility to be used for the staging of an ath letic
event, a theatrical production, or any other form of entertainment,
edification, or cultural cultivation to which entry is gained with a
paid admission ticket . Such facilities include, but are not limited
to, athletic fields, athletic stadiums, fiel d houses, amphitheaters,
and theaters. To be eligible for this sales tax exemption , the
amount separately stated on the admiss ion ticket shall be a
surcharge which is imposed, collected, and used for the sole purpos e
of servicing or aiding in the servicin g of debt incurred by the
college or university to effect the capital improvements
hereinbefore described;
9. Sales of tangible personal property or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of Amer ica, Girl Scouts of the U.S.A., and Camp Fire
USA;
10. Sale of tangible personal propert y or services to any
county, municipality, rural water district, public schoo l district,
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city-county library system, the instit utions of The Oklahoma State
System of Higher Education, the Grand River Dam Autho rity, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, City of Tulsa-Rogers County Port
Authority, Muskogee City -County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic Developm ent
Authority, Ardmore Development Authority, D urant Industrial
Authority, Oklahoma Ord nance Works Authority, Central Oklaho ma
Master Conservancy District, Arbuckle Master Co nservancy District,
Fort Cobb Master Con servancy District, Foss Reservoir Master
Conservancy District, Mountain Park Master Conse rvancy District,
Waurika Lake Master Con servancy District, the Office of Management
and Enterprise Services only when carrying out a public construction
contract on behalf of the Oklahoma Department of Veteran s Affairs,
and effective July 1, 2022, the Uni versity Hospitals Trust, or to
any person with whom any of the above -named subdivisions or agencies
of this state has duly enter ed into a public contract pursuant to
law, necessary for carrying out such public contract or to any
subcontractor to such a pub lic contract. Any person making
purchases on behalf of such subdivision or ag ency of this state
shall certify, in writing, on t he copy of the invoice or sales
ticket to be retained by the vendor that the purch ases are made for
and on behalf of such subdiv ision or agency of this state and set
out the name of such public subdivision or agency. Any person who
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wrongfully or erroneous ly certifies that purchases are for any of
the above-named subdivisions or agencie s of this state or who
otherwise violates this section shall be guilty of a misdemeanor and
upon conviction thereof shall be fined an amount equal to double the
amount of sales tax involved or incarcerated for not more than sixty
(60) days or both;
11. Sales of tangible personal property or services to private
institutions of higher educati on and private elementary and
secondary institutions of education accredited by the Sta te
Department of Education or registered by the State Board of
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma State Regents for Higher
Education which are exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C. , Section 501(c)(3) including
materials, supplies, and equipment used in the construction and
improvement of buildings and other structures owned by the
institutions and operated for educational purposes.
Any person, firm, agency, or entity making purchase s on behalf
of any institution, agency, or subdivision in this state, shall
certify in writing, on the copy of the invoice or sal es ticket the
nature of the purchases , and violation of this paragraph shall be a
misdemeanor as set forth in paragraph 10 of t his section;
12. Tuition and educational f ees paid to private institutions
of higher education and private elementary and second ary
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institutions of education accredi ted by the State Department of
Education or registered by the State Board of Education for purposes
of participating in federal progr ams or accredited as defined by the
Oklahoma State Regents for Higher Education which are exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering ins truction for grade
levels kindergarten through twelfth grade,
(3) a public school district,
(4) a public or private school bo ard,
(5) a public or private school stud ent group or
organization,
(6) a parent-teacher association or organization
other than as specified in subparagraph b of th is
paragraph, or
(7) public or private scho ol personnel for purposes
of raising funds for the benefit of a public or
private school, public school district, public or
private school board, or public or private school
student group or organization, or
b. Sales of tangible personal property made by o r to
nonprofit parent-teacher associations or orga nizations
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exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school fou ndations
which solicit money or property in the name of any
public or private school or public school district.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to those pu blic or private
schools accredited by the State Department of Education or
registered by the State Board of Education for pu rposes of
participating in federal progr ams. Sale of tangible personal
property in this paragraph shall include sale of admission t ickets
and concessions at ath letic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional, or state 4-H councils,
c. county, regional, or state 4-H committees,
d. 4-H leader associations,
e. county, regional, or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragraph shall be limited to
sales for the purpose of raising fun ds for the benefit of such
organizations. Sale of tangible personal property exempted by this
paragraph shall inclu de sale of admission tickets;
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15. The first Seventy-five Thousand Dollars ($75,000.00) each
year from sale of tickets and concessions at at hletic events by each
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklahoma Tourism and Recreation Department has
entered into a public contract and which is necessary for carrying
out such contract to assist the Department in the development and
production of advertising, promotion, publicity , and public
relations programs;
17. Sales of tangible perso nal property or services to fire
departments organized pursuant to Section 592 of Title 18 of th e
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person making purchases on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales ticket to be retained by the vendor th at the
purchases are made for and on behalf of such fire department an d set
out the name of such fire department . Any person who wrongfully or
erroneously certifies that the purchases are for any such fire
department or who otherwise violates the provisio ns of this section
shall be deemed guilty of a misdemeanor and upon co nviction thereof,
shall be fined an amount equal t o double the amount of sales tax
involved or incarcerated for not more than sixty (60) days, or both;
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18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibiti on, display, or other
recreational events or activ ities which are issued through a box
office or other entity which is operated by a sta te institution of
higher education with institution al employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each y ear
from sales of tangible personal prop erty by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of the fire
department. Fire departments selling tangible personal prope rty for
the purposes of raising funds sh all be limited to no more than six
(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal property or services to any Boys
& Girls Clubs of America affiliate in this state which i s not
affiliated with the Salvation Army and w hich is exempt from taxation
pursuant to the provis ions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or services t o any
organization, which takes court -adjudicated juveniles for purposes
of rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), provided that at least fifty percent (50%) of the
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juveniles served by such organiza tion are court adjudicated and the
organization receives state funds in an amount less than ten p ercent
(10%) of the annual budget of the organization;
22. Sales of tangible personal property or services to:
a. any health center as defined in Section 254b of Title
42 of the United States Code,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revol ving Fund pursuant
to the provisions of Section 66 of Title 56 of the
Oklahoma Statutes,
c. any community-based health center w hich meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) 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
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes ;
23. Dues or fees including fr ee or complimentary dues or fees
which have a value equivalent to the charge that could have
otherwise been made, to YMCAs, YWC As, or municipally-owned
recreation centers fo r the use of facilities and programs;
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24. The first Fifteen Thousand Dollars ($15, 000.00) each year
from sales of tangible personal property or services to or by a
cultural organization established to sponsor and promote
educational, charitable, and cultural events for disadvantaged
children, and which orga nization is exempt from taxati on pursuant to
the provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible personal prope rty or services to museums
or other entities which have been accredited by the American
Association Alliance of Museums. Any person making purchases on
behalf of any such museum or other entity shall certify, in wri ting,
on the copy of the invoice or sale s ticket to be retained by the
vendor that the purchase s are made for and on behalf of such museum
or other entity and set out the name of such museum or other entity .
Any person who wrongfully or erroneously certif ies that the
purchases are for any such museum or other entity or who otherwise
violates the provisions of this paragraph shall be deemed guilty of
a misdemeanor and, upon conviction thereof, shall be fined an amount
equal to double the amount of sales tax involved or incarcerated for
not more than sixty (60) days, or by both such fine and
incarceration;
26. Sales of tickets for admission by any muse um accredited by
the American Association Alliance of Museums. In order to be
eligible for the exemption pr ovided by this paragraph, an amount
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equivalent to the amount of the tax which would otherwise be
required to be collected pursuant to the provisions of Secti on 1350
et seq. of this title shall be separately stated on the admission
ticket and shall be colle cted and used for the sole purpose of
servicing or aiding in the ser vicing of debt incurred by the museu m
to effect the construction, enlarging , or renovation of any facility
to be used for entertainment, e dification, or cultural cultivation
to which entry is gained with a paid admission ticket;
27. Sales of tangible perso nal property or services occurring
on or after June 1, 1995, to children ’s homes which are supported or
sponsored by one or more churches , members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American V eterans, Department of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible perso nal property or services to youth
camps which are supported or sponsored by one or more ch urches,
members of which serv e as trustees of the organization;
30. a. Until July 1, 2022, transfer of tangible personal
property made pursuant to Section 3226 of Tit le 63 of
the Oklahoma Statutes by the University H ospitals
Trust, and
b. Effective July 1, 2022, transfer of tangible p ersonal
property or services to or b y:
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(1) the University Hospitals Trust created pur suant
to Section 3224 of Title 63 of the Oklahoma
Statutes, or
(2) nonprofit entities which are exem pt from taxation
pursuant to the provisi ons of the Internal
Revenue Code of the United States, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the University
Hospitals Trust;
31. Sales of tangible personal property o r services to a
municipality, county , or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county, or school district. A copy of the lease or
lease-purchase agreement shall be retained by the v endor;
32. Sales of tangible personal p roperty or services to any
spaceport user, as defined in the Okla homa Space Industry
Development Act;
33. The sale, use, storage, consumption, or distribution in
this state, whether by the importer, exporter , or another person, of
any satellite or any ass ociated launch vehicle includ ing components
of, and parts and mot ors for, any such satellite or launch vehicle,
imported or caused to be imported into this state for the purpose of
export by means of launching into s pace. This exemption provided by
this paragraph shall not be affecte d by:
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a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or po ssession
of, the satellite or launch veh icle after launch;
34. The sale, lease, use, storage, consumptio n, or distribution
in this state of any space f acility, space propulsion system, or
space vehicle, satellite, or station of any kind possessing space
flight capacity including components ther eof;
35. The sale, lease, use , storage, consumption, or distribution
in this state of tangible personal property, placed on or used
aboard any space facility, space propulsion system, or space
vehicle, satellite, or station possessing space flight capacit y,
which is launched into space , irrespective of whether such tangi ble
property is returned to this state for subse quent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption , or distribution
in this state of tangible personal property meeting the d efinition
of “section 38 property” as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, that is an integ ral
part of and used primarily in support of space flight; however,
section 38 property us ed in support of space flight s hall not
include general office equi pment, any boat, mobile home, motor
vehicle, or other vehicle of a class or type required to be
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registered, licensed, titled , or documented in this s tate or by the
United States government, or any other property not speci fically
suited to supporting space a ctivity. The term “in support of space
flight”, for purposes of this paragraph, means the alterin g,
monitoring, controlling, regulating, adjusting, servicing, or
repairing of any space fa cility, space propulsion systems , or space
vehicle, satellite, or station possessing space flight capacity
including the components thereof;
37. The purchase or leas e of machinery and equipment for use at
a fixed location in this state, which is used excl usively in the
manufacturing, processing, compounding, or producing of any space
facility, space propulsion system , or space vehicle, satellite, or
station of any kind possessing space flight capacity . Provided, the
exemption provided for in this paragrap h shall not be allowed unless
the purchaser or lessee signs an affidav it stating that the item or
items to be exempted are for the exclusive use designated herein .
Any person furnishing a false affidavit to the vend or for the
purpose of evading payment of any tax imposed by Section 1354 o f
this title shall be subject to the penalties provided by law. As
used in this paragra ph, “machinery and equipment” means “section 38
property” as defined in Sections 48(a)(1)(A) a nd (B)(i) of the
Internal Revenue Code o f 1986, which is used as an integr al part of
the manufacturing, proces sing, compounding, or producing of items of
tangible personal property. Such term includes part s and
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accessories only to the extent that the exem ption thereof is
consistent with the pro visions of this paragraph;
38. The amount of a surcharge or any other amount which is
separately stated on an admission t icket which is imposed,
collected, and used for the sole purpose of constructing,
remodeling, or enlarging facilities of a public trus t having a
municipality or county a s its sole beneficiary;
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a sta te park in this state,
which are made to an organi zation which is exempt from taxation
pursuant to the provisions of the Inte rnal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primarily for the purpose
of supporting one or more state pa rks located in this state;
40. The sale, lease, or use of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State Sys tem of Higher Education,
private institutions of higher education accredite d by the Oklahoma
State Regents for Higher Education, or any public school or school
district when such projects are financed by or through the use of
nonprofit entities which are e xempt from taxation pursuant to the
provisions of the Internal Revenue Code , 26 U.S.C., Section
501(c)(3);
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42. Sales of tangible personal property or services by an
organization which is exempt from taxati on pursuant to the
provisions of the Internal Reve nue Code, 26 U.S.C., Section
501(c)(3), in the course of conducting a natio nal championship
sports event, but only if all or a portion of the payment in
exchange therefor would qualify as the receipt of a q ualified
sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise, and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the pro visions of
the Internal Revenue Cod e, 26 U.S.C., Section
501(c)(3),
b. is affiliated with a comprehensive university wit hin
The Oklahoma State System of Higher Educat ion, and
c. has been organized primarily for the p urpose of
providing education and teache r training and
conducting events re lating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or b y youth athletic
teams which are part of an athlet ic organization exempt from
taxation pursuant to the provisions of the Inte rnal Revenue Code, 26
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U.S.C., Section 501(c)(4), for the purposes of raising funds for the
benefit of the team;
45. Sales of tickets for admission to a collegiate athletic
event that is held in a facility owned or operat ed by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determines or is part of a tournament or
tournament process for determining a conference tournament
championship, a conference championship, or a nat ional championship;
46. Sales of tangible personal property or service s to or by an
organization which is exempt fr om taxation pursuant to the
provisions of the Inte rnal Revenue Code, 26 U.S.C., Section
501(c)(3) and is operating the Oklahoma City Nationa l Memorial and
Museum, an affiliate of the National Park System;
47. Sales of tangible personal property or servic es to
organizations which are exempt from federal t axation pursuant to the
provisions of Section 501( c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the membe rships of which are limited to
honorably discharged veterans, and which furnish financial support
to area veterans’ organizations to be used for the purpose of
constructing a memori al or museum;
48. Sales of tangible per sonal property or services on or af ter
January 1, 2003, to an organizat ion which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U .S.C.,
Section 501(c)(3) that is expending monies received from a private
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foundation grant in conjunction with expenditures o f local sales tax
revenue to construct a local public library;
49. Sales of tangible personal property or services to a state
that borders this state or any political subdivision o f that state,
but only to the extent tha t the other state or political subd ivision
exempts or does not impose a tax on similar sales of items to this
state or a political subdivision of this state;
50. Effective July 1, 2005, sales of tangible personal pr operty
or services to the Career Technol ogy Student Organizations under the
direction and supervision of the Ok lahoma Department of Career and
Technology Education;
51. Sales of tangible personal property to a public trust
having either a single city, tow n or county or multiple cities,
towns or counties, or combination thereof a s beneficiary or
beneficiaries or a nonprofit organization which is exempt fr om
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) for th e purpose of constructing
improvements to or expanding a hospital or nursin g home owned and
operated by any such public trust or nonprofit entity prior to July
1, 2008, in counties with a population of less than one hundred
thousand (100,000) persons, acco rding to the most recent Federal
Decennial Census. As used in this paragra ph, “constructing
improvements to or expanding” shall not mean any expense fo r routine
maintenance or general repairs and shall req uire a project cost of
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at least One Hundred Thousa nd Dollars ($100,000.00) . For purposes
of this paragraph, sales made to a contractor or subcontractor that
enters into a contractual relationship with a public trust or
nonprofit entity as described by thi s paragraph shall be considered
sales made to the public trust or nonprofit entity . The exemption
authorized by this paragra ph shall be administered in the form of a
refund from the sales tax revenues apportioned pursuant to Section
1353 of this title and the vendor shall be required to collect the
sales tax otherwise applicable to the transac tion. The purchaser
may apply for a refund of the sales tax paid in th e manner
prescribed by this paragraph . Within thirty (30) days after the end
of each fiscal year, any purchaser that is entitled to make
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refu nd of the sales
taxes paid during such pr eceding fiscal year. The Oklahoma Tax
Commission shall prescribe a form for purposes of making the
application for refund. The Tax Commission shall det ermine whether
or not the total amo unt of sales tax exemptions claimed by all
purchasers is equal to or less tha n Six Hundred Fifty Thousand
Dollars ($650,000.00). If such claims are less than or equal to
that amount, the Tax Commission shall make refunds to the purchasers
in the full amount of the documented and verified sa les tax amounts.
If such claims by all p urchasers are in excess of Six Hundred Fifty
Thousand Dollars ($650,000.00), the Tax Commission shall determine
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the amount of each purchaser ’s claim, the total amount of all claim s
by all purchasers, and the percent age each purchaser’s claim amount
bears to the total. The resulting percentage determined for each
purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
($650,000.00) to determine the amount of refundable sales tax to be
paid to each purchas er. The pro rata refund amount shall be the
only method to recover sales taxes paid during the preceding fiscal
year and no balance of any sales taxes paid on a pro rata basis
shall be the subject of any subsequent refu nd claim pursuant to this
paragraph;
52. Effective July 1, 2006, sales of t angible personal property
or services to any organization which assists, trains, educates, and
provides housing for physically and mentally handi capped persons
with disabilities and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U. S.C., Section
501(c)(3) and that receives at least eighty-five percent (85%) o f
its annual budget from state or federal funds . In order to receive
the benefit of the exemption aut horized by this paragraph, the
taxpayer shall be required to make payment of the applicable sales
tax at the time of sale to the vendor in the manner othe rwise
required by law. Notwithstanding any other provision of the
Oklahoma Uniform Tax Procedure Code to the contrary, the taxpayer
shall be authorized to file a claim for refun d of sales taxes paid
that qualify for the exemption authorized by this paragr aph for a
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period of one (1) year after the date of the sale transac tion. The
taxpayer shall be requir ed to provide documentation as may b e
prescribed by the Oklahoma Tax Commiss ion in support of the refund
claim. The total amount of sales tax qualifying for exempt
treatment pursuant to this paragraph shall not exceed On e Hundred
Seventy-five Thousand Dollars ($175,000.00) each fiscal year .
Claims for refund shall be processed i n the order in which such
claims are received by the Oklahoma Tax Commission . If a claim
otherwise timely filed exceeds the total amount of refu nds payable
for a fiscal year, such claim shall be barred;
53. The first Two Thousand Dollars ($2,000.00) eac h year of
sales of tangible personal property or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working direc tly with a law enforcement
agency with jurisdiction in the area in which th e neighborhood watch
organization is located. As used in this paragraph, “qualified
neighborhood watch organization ” means an organization that i s a
not-for-profit corporation unde r the laws of the State of Oklahoma
this state that was created to help prevent criminal activity in an
area through community involvement and interaction with local law
enforcement and which is one of the first two thousand organiz ations
which makes application to t he Oklahoma Tax Commission for the
exemption after March 29, 2006;
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54. Sales of tangible personal property to a nonprofit
organization, exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S .C., Section 501(c)(3), organized
primarily for the purpose of providin g services to homeless persons
during the day and located in a metropolitan area with a population
in excess of five hundred thousand (500,000) persons according to
the latest Federal D ecennial Census. The exemption authorized by
this paragraph shall be a pplicable to sales of tangible personal
property to a qualified entity occurring on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pu rsuant to the
provisions of the Inte rnal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation of wetlands and habitat for wild ducks;
56. Sales of tangible personal property or ser vices to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation and conservation of wild turkeys;
57. Sales of tangible per sonal property or services to an
organization which:
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a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of community -based, autonomous
member organizations that meet s the following
criteria:
(1) serves people with workplac e disadvantages and
disabilities by providing job training and
employment services, as well as job placement
opportunities and post-employment support,
(2) has locations in the United States and at l east
twenty other countries,
(3) collects donated clothin g and household goods to
sell in retail stores and provides contract labor
services to business and government, and
(4) provides documentation to the Oklahoma Tax
Commission that over seventy-five percent (75%)
of its revenues are channeled into employment ,
job training and placement programs , and other
critical community services;
58. Sales of tickets made on or after September 2 1, 2005, and
complimentary or free tickets for admission issued on or a fter
September 21, 2005, which have a value equivalent to the charge that
would have otherwise been made, f or admission to a professional
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athletic event in which a team in the National Basketball
Association is a partici pant, which is held in a facility ow ned or
operated by a municipality, a county, or a public trust of which a
municipality or a county is the s ole beneficiary, and sales of
tickets made on or after July 1, 2007, and compl imentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge that would h ave otherwise been made,
for admission to a profes sional athletic event in which a team in
the National Hockey League is a parti cipant, which is held in a
facility owned or operated by a municipality , a county, or a public
trust of which a municipality or a county is the sole beneficiary;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been made t o a professional sporting event
involving ice hockey, bas eball, basketball, football or arena
football, or soccer. As used in this paragraph, “professional
sporting event” means an organized athletic competition between
teams that are members of an organi zed league or association with
centralized management, ot her than a national league or national
association, that imposes requirements for participation in the
league upon the teams, th e individual athletes , or both, and which
uses a salary structure to co mpensate the athletes;
60. Sales of tickets for admissio n to an annual event sponsored
by an educational and charitable organization of women which is
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exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)( 3) and has as its mission
promoting volunteerism, develop ing the potential of women and
improving the community through the effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C ., Section 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraising, public awareness , or other
efforts for the benefit of its member organi zations, and if the
member organization is primarily engaged either in providing
educational services and programs concerning health-related diseases
and conditions to individuals suffering from such health -related
diseases and conditions or their caregive rs and family members or
support to such individuals, or in health-related research as to
such diseases and conditions, or both. In order to qualify for the
exemption authorized by this paragraph, the member nonprofit
organization shall be required to pro vide proof to the Oklahoma Tax
Commission of its membership status in the membership organiza tion;
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62. Sales of tangible personal property or services to or by an
organization which is part of a national volunteer women ’s service
organization dedicated to promoting patriotism, preserving Am erican
history, and securing better education for childre n and which has at
least 168,000 members in 3,000 chapters across the United States;
63. Sales of tangible personal property or services to or by a
YWCA or YMCA organization which is part of a natio nal nonprofit
community service organization working to m eet the health and social
service needs of its mem bers across the United States;
64. Sales of tangible personal property or ser vices to or by a
veteran’s organization which is exempt from taxation p ursuant to the
provisions of the Internal Revenue Code, 2 6 U.S.C., Section
501(c)(19) and which is known as the Veterans of Foreign Wars of the
United States, Oklahoma Chapters;
65. Sales of boxes of food by a church or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) . To qualify
under the provisions of this paragraph, the organization must be
organized for the primary purpose of feed ing needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes shall only contain ed ible staple food
items;
66. Sales of tangible personal property or services t o any
person with whom a church has duly entered into a construction
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contract, necessary for carrying out such contract or to an y
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for chari table or educational purposes, to o r by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities, and strengths of developmentally
disabled individuals, and
(3) promoting unity among d evelopmentally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or services to any
organization which is a shelter for abused , neglected, or abandoned
children and which is exempt from taxation pursuant to the
provisions of the Internal R evenue Code, 26 U.S.C., Section
501(c)(3); provided, until July 1, 2008, such exemption shall apply
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only to eligible shelters for children from birth to age twelve (12)
and after July 1, 2008, such exemption shall apply t o eligible
shelters for children fr om birth to age eighteen (18);
69. Sales of tangible personal property or services to a chil d
care center which is licensed pursuant to the Ok lahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Progr am or a national
accreditation, and
b. allows on-site universal prekindergarten education to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency, or entity that has entered prev iously into a
contractual relationship with a chil d care center for construction
and improvement of buildings and other structur es owned by the child
care center and operated for educational purposes shall be
considered sales made to a child care center. Any such person,
firm, agency, or entity making purchases on behalf of a child care
center shall certify, in writing, on the cop y of the invoice or
sales ticket the nature of the purchase. Any such person, or person
acting on behalf of a firm, agency, or entity making purchases on
behalf of a child care center in violation of this paragraph shall
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be guilty of a misdemeanor and upo n conviction thereof shall be
fined an amount equal to double the amoun t of sales tax involved or
incarcerated for not more than sixty (60) days or both;
70. a. Sales of tangible personal property to a service
organization of mothers who have children who are
serving or who have served in t he military, which
service organization is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(19) and which is known as the
Blue Star Mothers of America, Inc . The exemption
provided by this paragraph sh all only apply to the
purchase of tangible personal property actually sent
to United States military personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the org anization.
Provided, this exemption shall not app ly to any sales
tax levied by a city , town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph shall be
administered in the form of a refund from the sales
tax revenues apportioned p ursuant to Section 1353 of
this title, and the vendor shall be req uired to
collect the sales tax otherwise a pplicable to the
transaction. The purchaser may apply for a refund of
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the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60) days after the end
of each calendar quarter, any purcha ser that is
entitled to make application f or a refund based upon
the exempt treatment author ized by this paragraph may
file an application for refund of the state sales
taxes paid during suc h preceding calendar quarter .
The Tax Commission shall prescribe a form for purposes
of making the applicat ion for refund.
c. A purchaser who applies for a r efund pursuant to this
paragraph shall certify that the items were actually
sent to military perso nnel overseas in a combat zone .
Any purchaser that applies for a refund for the
purchase of items that are not authorized for
exemption under this paragraph shall be subject to a
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack items to or by an or ganization
which is exempt from tax ation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary
and principal purpose is providing funding for scholarships in t he
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizations which are exempt
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from taxation pursuant to the pr ovisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
end-of-life care and access t o hospice services to low-income
individuals who live in a facility owned by t he organization. The
exemption provided by this p aragraph applies to sales to the
organization as well as to sales to any perso n with whom the
organization has duly entered into a construction contract,
necessary for carrying out such contract or to any s ubcontractor to
such a construction contract. Any person making purchases on behalf
of such organization shall certify, in writ ing, on the copy of the
invoice or sales ticket to be retained by the vendor that th e
purchases are made for and on behalf of su ch organization and set
out the name of such organ ization. Any person who wrongfully or
erroneously certifies that purchases ar e for any of the abo ve-named
organizations or who otherwise violates this section sh all be guilty
of a misdemeanor and upon conv iction thereof shall be fined an
amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or both;
73. Sales of tickets for admi ssion to events held by
organizations exempt from taxation pursuant to the pro visions of the
Internal Revenue Code, 26 U.S.C., S ection 501(c)(3) that are
organized for the purpose of supporting general hosp itals licensed
by the State Department of Health;
74. Sales of tangible personal property or services:
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a. to a foundation which is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and which raises tax-
deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
organizations that d efend and foster Second Amendment
rights, and
b. to or by a grassroots fundrai sing program for sal es
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity w hich is exempt from
taxation pursuant to the provisions of the Internal Revenu e Code, 26
U.S.C., Section 501(c)(3) which are rel ated to a fundraising event
sponsored by the organization or entity when the e vent does not
exceed any five (5) consecutive days and when the sales are not in
the organization’s or the entity’s regular course of business.
Provided, the exemption provided in this paragraph shall be li mited
to tickets sold for admittance to the fundr aising event and items
which were donated to the o rganization or entity for sale at the
event;
76. Effective November 1, 2017, sales of tangible pe rsonal
property or services to an organization which is ex empt from
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taxation pursuant to the provisions of t he Internal Revenue Code, 26
U.S.C., Section 501(c )(3) and operates as a collaborative model
which connects community agencies i n one location to se rve
individuals and families a ffected by violence and wher e victims have
access to services and advocacy at no cost to the victim;
77. Effective July 1, 2018 , sales of tangible personal property
or services to or by an association whic h is exempt from tax ation
pursuant to the provisio ns of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is kn own as the National Guard
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible personal property
or services to or by an associat ion which is exempt from taxat ion
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which is known as the Marine Corps League of
Oklahoma;
79. Sales of tangible personal property or services to t he
American Legion, whether the purchase is made b y the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authority of
the national American Legion organization;
80. Sales of tangible personal pro perty or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of t he
Internal Revenue Code, 26 U.S.C., Section 501(c )(3),
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b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab N etwork in
compliance with the Fab Charter, and
c. able to provide documentation that its primary and
principal purpose is to provide community access to
advanced 21st century manufacturing and digital
fabrication tools for science, tech nology,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses, and producing personalized products;
81. Effective November 1, 2021, sales of tangible personal
property or services used solely for cons truction and remodel ing
projects to an organizatio n which is exempt from taxation pursuant
to the provisions of the Internal Rev enue Code, 26 U.S.C., Section
501(c)(3), and which meets the following requirements:
a. its primary purpose is to construct or r emodel and
sell affordable housing and provide hom eownership
education to residents of Oklahoma that have an income
that is below one hundred percent (100%) of the Family
Median Income guidelines as defined by the U.S.
Department of Housing and Urban Devel opment,
b. it conducts its activities in a manner that serves
public or charitable purposes, rather than commercial
purposes,
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c. it receives funding and revenue and charges fees in a
manner that does not incentivize it or its employees
to act other than in the best interests of its
clients, and
d. it compensates its employees in a manner that does not
incentivize employees to act o ther than in the best
interests of its clients;
82. Effective November 1, 2021, sales of tangible personal
property or services to a nonprofit entity, organized pursuant to
Oklahoma law before January 1, 2022, exe mpt from federal income
taxation pursuant to Section 501(c) of the Internal Revenue Code of
1986, as amended, the principal functions of which are to provide
assistance to natural persons following a disaster, with progr am
emphasis on repair or restoration to single-family residential
dwellings or the construction of a replacement single-family
residential dwelling. As used in this paragraph, “disaster” means
damage to property with or without accompanying injury to pers ons
from heavy rain, high winds, tor nadic winds, drought, wildfire,
snow, ice, geologic disturbances, explosions, chemical accid ents or
spills, and other events causing damage to property on a large
scale. For purposes of this paragraph, an entity that ex pended at
least seventy-five percent (75%) of its funds on the restoration to
single-family housing following a disaster, including related
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general and administrative expenses, shall be eligible for the
exemption authorized by this paragraph; and
83. Until July 1, 2022, sales of tangible pe rsonal property or
services for use in a c linical practice or medical facility operated
by an organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code of the United States, 26
U.S.C., Section 501(c)(3), and which h as entered into a joint
operating agreement with the University Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statutes . The
exemption provided by this paragraph shall be limited to the
purchase of tangible personal property and services for use in
clinical practices or medical facilities acquired or leased by the
organization from the University Hospitals Authority, University
Hospitals Trust, or the University of Oklahoma on or after June 1,
2021; and
84. Sales to an organization that is exempt from taxation
pursuant to the provisions of the Internal Revenue Code , 26 U.S.C.,
Section 501(c)(3) that assists the United States Fish and Wildlife
Service in promoting educational op portunities and provides care for
a federally recognized wildlif e refuge.
SECTION 2. This act shall become effective November 1, 2022.
58-2-2769 QD 1/20/2022 8:03:56 AM