Req. No. 2729 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1495 By: Treat
AS INTRODUCED
An Act relating to sales tax; amending 68 O.S. 20 21,
Section 1357, as amended by Sectio n 1, Chapter 68,
O.S.L. 2021, which relates to exe mptions; providing
exemption for groceries; providing certain
exceptions; defining terms; providing exception for
certain political subdivisions; amending 68 O.S.
2021, Section 1370, which relates to county sales
tax; providing exception to requirement tha t all
items exempt from the state sales tax be exempt from
county sales tax; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAH OMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
amended by Section 1, Chapter 68, O.S.L. 2021, is amended to read as
follows:
Section 1357. Exemptions – General. There are hereby
specifically exempted from the t ax levied by the Oklahoma Sales Tax
Code:
1. Transportation of school pupils to and f rom elementary
schools or high schools in motor or other veh icles;
Req. No. 2729 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
2. Transportation of persons where the f are of each person does
not exceed One Dollar ($1.00), or loca l transportation of persons
within the corporate limits of a municipality except by ta xicabs;
3. Sales for resale to persons engaged in the business of
reselling the articles purchased, whethe r within or without the
state, provided that such sales to resi dents of this state are made
to persons to whom sales tax permits have been issued as provided in
the Oklahoma Sales Tax Code. This exemption shall not apply to the
sales of articles made to p ersons holding permits when such persons
purchase items for the ir use and which they are not regularl y
engaged in the business of reselling; neither shall this exemption
apply to sales of tangible personal property to peddlers,
solicitors, and other salespersons who do not have an established
place of business and a s ales tax permit. The exemption provid ed by
this paragraph shall apply to sales of mot or fuel or diesel fuel to
a Group Five vendor, but the use of such motor fuel or diesel fuel
by the Group Five vendor shall not be exempt from the tax levied by
the Oklahoma Sales Tax Code. The purchase of motor fuel or diesel
fuel is exempt from sales ta x when the motor fuel is for shipment
outside this state and consumed by a common carrier by rail in the
conduct of its business. The sales tax shall apply to the purcha se
of motor fuel or diesel fuel in Okl ahoma by a common carrier by rail
when such motor fuel is purchased for fueling, within this state, of
any locomotive or other motorized flanged wheel equip ment;
Req. No. 2729 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
4. Sales of advertising space in newspapers and periodi cals;
5. Sales of programs relating t o sporting and entertainment
events, and sales of advertising on billboards (including signage,
posters, panels, marquees, or on other similar surfaces, w hether
indoors or outdoors) or in programs relating to sporting and
entertainment events, and sales of any advertising, to be displayed
at or in connection with a sporting event, via the Internet,
electronic display devices, or through public address or br oadcast
systems. The exemption authorized by this paragraph sha ll be
effective for all sales made on or after January 1, 2001;
6. Sales of any advertising, other than the advertising
described by paragraph 5 of this section, via the Internet,
electronic display devices, or through the electronic media ,
including radio, public address or broadcast systems , television
(whether through closed circuit bro adcasting systems or otherwise),
and cable and satellite television, and the servicing of any
advertising devices;
7. Eggs, feed, supplies, machinery , and equipment purchased by
persons regularly engaged in the business of raising worms, fish,
any insect, or any other form of terrestrial or aquatic animal life
and used for the purpose of raising same for mark eting. This
exemption shall only be granted and extended to the purchaser when
the items are to be us ed and in fact are used in the raising of
animal life as set out above. Each purchaser shall certify, in
Req. No. 2729 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
writing, on the invoice or sales ticket retained by the vendor that
the purchaser is regularly engaged in the bu siness of raising such
animal life and that the items purchased will be used only in s uch
business. The vendor shall certify to the Oklahoma Tax Commission
that the price of the items has bee n reduced to grant the full
benefit of the exemption . Violation hereof by the purchaser or
vendor shall be a misdemeanor;
8. Sale of natural or arti ficial gas and electricity, and
associated delivery or transmission services, when sold exclusively
for residential use. Provided, this exemption shall not apply to
any sales tax levied by a city or town, or a county, or any other
jurisdiction in this sta te;
9. In addition to the exemptions authorized by Section 1357.6
of this title, sales of drugs sold pu rsuant to a prescription
written for the treatment of human beings by a person licensed to
prescribe the drugs, and sales of insulin and medical oxygen .
Provided, this exemption shall not apply to over-the-counter drugs;
10. Transfers of title or posses sion of empty, partially
filled, or filled returnable oil and chemi cal drums to any person
who is not regularly engaged in the business of selling, resel ling,
or otherwise transferring empty, partially filled, or filled
returnable oil drums;
Req. No. 2729 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
11. Sales of one-way utensils, paper napkins, paper cups,
disposable hot contain ers, and other one-way carry out materials to
a vendor of meals or beverages;
12. Sales of food or food products for home consumption which
are purchased in whole or in part with coupons i ssued pursuant to
the federal food stamp program as authorized by S ections 2011
through 2029 of Title 7 o f the United States Code, as to that
portion purchased with such coupons. The exemption provided for
such sales shall be inapplicable to such sales up on the effective
date of any federal law that removes the requireme nt of the
exemption as a condition for participation by the state in the
federal food stamp program;
13. Sales of food or food products, or any equipment or
supplies used in the preparati on of the food or food products to or
by an organization which:
a. 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 which provides and
delivers prepared meals for home consumption to
elderly or homebound persons as part of a program
commonly known as “Meals on Wheels” or “Mobile Meals”,
or
b. is exempt from taxation pursu ant to the provisions of
Section 501(c)(3) of the Internal Revenue Code, 26
Req. No. 2729 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
U.S.C., Section 501(c)(3 ), and which receives federal
funding pursuant to the Older Americans Act of 1965,
as amended, for the purpo se of providing nutrition
programs for the care and benefit of elderly persons;
14. a. Sales of tangible personal property or services to or
by organizations which are 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:
(1) are primarily involved in the collection and
distribution of food and other household products
to other organizations that facilitate the
distribution of such products to the needy and
such distributee orga nizations are 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), or
(2) facilitate the distribution of such products to
the needy.
b. Sales made in the course of business for pro fit or
savings, competing with other persons e ngaged in the
same or similar business shall not be exempt under
this paragraph;
Req. No. 2729 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
15. Sales of tangible personal property or services to
children’s homes which are located on church-owned property and are
operated by organizations exempt from taxation purs uant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
16. Sales of computers, data processing equipment, related
peripherals, and telephone, telegraph or telecommunications service
and equipment for use in a qualified aircraft maintenance or
manufacturing facility. For purposes of this paragraph, “qualified
aircraft maintenance or manufacturing facility” means a new or
expanding facility primar ily engaged in aircraft repair, buildi ng,
or rebuilding whether or not on a factory ba sis, whose total cost of
construction exceeds the sum of Five Million Dollars ($5,000,000.00)
and which employs at least two hundred fifty (250) new full -time-
equivalent employees, as certified by the Oklahom a Employment
Security Commission, upon completio n of the facility. In order to
qualify for the exemption provided for by this paragraph, the co st
of the items purchased by the qualified aircraft maintenance or
manufacturing facility shall equal or exceed the sum of Two Million
Dollars ($2,000,000.00);
17. Sales of tangible personal property consumed or
incorporated in the construction or expans ion of a qualified
aircraft maintenance or manufacturing facility as define d in
paragraph 16 of this section . For purposes of this paragraph, sales
Req. No. 2729 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
made to a contractor or subcontractor that has previously entered
into a contractual relationship with a qu alified aircraft
maintenance or manufacturing facility for construction or expansion
of such a facility shall be considered sales made to a qualified
aircraft maintenance or manufacturing facility;
18. Sales of the following telecommunications services:
a. Interstate and International “800 service”. “800
service” means a “telecommunications service ” that
allows a caller to dial a toll-free number without
incurring a charge for the call. The service is
typically marketed under the name “800”, “855”, “866”,
“877”, and “888” toll-free calling, and any subsequent
numbers designated by the Federal Communications
Commission, or
b. Interstate and International “900 service”. “900
service” means an inbound toll “telecommunications
service” purchased by a subscriber that allows the
subscriber’s customers to call in to the subscriber ’s
prerecorded announcement or live servic e. “900
service” does not include the charge fo r: collection
services provided by the seller of the
“telecommunications services ” to the subscriber, or
service or product sold by the subscriber to the
subscriber’s customer. The service is typically
Req. No. 2729 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
marketed under the name “900” service, and any
subsequent numbers designated by the Federal
Communications Commission,
c. Interstate and Interna tional “private communications
service”. “Private communications service ” means a
“telecommunications service ” that entitles the
customer to exclusive or priority u se of a
communications channel or group of channels between or
among termination points, re gardless of the manner in
which such channel or channels are connected, and
includes switching capacity, extension li nes,
stations, and any other associated services that are
provided in connection with the use of such channel or
channels,
d. “Value-added nonvoice data service”. “Value-added
nonvoice data service” means a service that otherwise
meets the definition of “telecommunications services”
in which computer processing applications are used to
act on the form, content, code, or protocol of the
information or data primarily for a purpose other than
transmission, conveyance , or routing,
e. Interstate and Internation al telecommunications
service which is:
Req. No. 2729 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
(1) rendered by a company for private use within its
organization, or
(2) used, allocated, or di stributed by a compa ny to
its affiliated group,
f. Regulatory assessments and char ges, including charges
to fund the Oklahoma Universal Service Fund, the
Oklahoma Lifeline Fund and the Oklahoma High Cost
Fund, and
g. Telecommunications nonrecurring charg es, including but
not limited to the installation, connection, change ,
or initiation of telecommunications services which are
not associated with a retail consumer sale;
19. Sales of railroad track spikes manufactured and sold for
use in this state in the construction or repai r of railroad tracks,
switches, sidings, and turnouts;
20. Sales of aircraft and aircraft parts pro vided such sales
occur at a qualified aircraft m aintenance facility. As used in this
paragraph, “qualified aircraft maintenance facil ity” means a
facility operated by an air common carrier, including one or more
component overhaul support buildings or str uctures in an area owned,
leased, or controlled by the air common carrier, at which there were
employed at least two thousand (2,000) f ull-time-equivalent
employees in the preceding year as certified by the Oklahoma
Employment Security Commission and which is primarily related to the
Req. No. 2729 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
fabrication, repair, alteration, modification, refurbishing,
maintenance, building, or rebuilding of commer cial aircraft or
aircraft parts used in air common carriage. For purposes of this
paragraph, “air common carrier” shall also include members of an
affiliated group as defined by Section 1504 of the Internal Revenue
Code, 26 U.S.C., Section 1504 . Beginning July 1, 2012, sale s of
machinery, tools, supplies, equipment, and related tangible personal
property and services used or consumed in the repair, remodeling , or
maintenance of aircraft, aircraft engines, or aircraft component
parts which occur at a qualifi ed aircraft maintenance facility;
21. Sales of machinery and equipment purchase d and used by
persons and establishmen ts primarily engaged in computer services
and data processing:
a. as defined under Industrial Group Numbers 7372 and
7373 of the Standard Industrial Classif ication (SIC)
Manual, latest version, which derive at least fi fty
percent (50%) of their annual gros s revenues from the
sale of a product or service to an out-of-state buyer
or consumer, and
b. as defined under Industrial Group Number 7374 of the
SIC Manual, latest version, which derive at least
eighty percent (80%) of their annual gross revenues
from the sale of a product or service to an out -of-
state buyer or consumer.
Req. No. 2729 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Eligibility for the exemption set out in this paragraph shall be
established, subject t o review by the Tax Commission, by annually
filing an affidavit with the Tax Commission stating that the
facility so qualifies and such information as required by the Tax
Commission. For purposes of determining whether annual gross
revenues are derived fr om sales to out-of-state buyers or consumers,
all sales to the federal government shall be considere d to be to an
out-of-state buyer or consumer;
22. Sales of prosthetic devices to an individual for use by
such individual. For purposes of this paragraph, “prosthetic
device” shall have the same meaning as provided i n Section 1357.6 of
this title, but shall not include corrective eye glasses eyeglasses,
contact lenses, or hearing aids;
23. Sales of tangible personal property or services to a mo tion
picture or television production company to be used or consumed in
connection with an eligible production . For purposes of this
paragraph, “eligible production” means a documentary, special, music
video, or a television commercial or television progr am that will
serve as a pilot for or b e a segment of an ongoing dramatic or
situation comedy series filmed or ta ped for network or national or
regional syndication or a feature-length motion picture intended for
theatrical release or for network or nationa l or regional
syndication or broadcast . The provisions of this paragraph shall
apply to sales occurring on or a fter July 1, 1996. In order to
Req. No. 2729 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
qualify for the exempt ion, the motion picture or television
production company shall file any documentation and information
required to be submitted p ursuant to rules promulgated by the Tax
Commission;
24. Sales of diesel fuel sold for consumption by commercial
vessels, barges and other commercial watercraft;
25. Sales of tangible personal property or services t o tax-
exempt independent nonprofit biome dical research foundations that
provide educational programs for Oklahoma science students and
teachers and to tax-exempt independent nonprofit community blood
banks headquartered in this state;
26. Effective May 6, 1992, sales of wireless telecommunicati ons
equipment to a vendor who subsequently transfers the equipment at no
charge or for a discounted charge to a consumer as part of a
promotional package or as an inducement to commence or continue a
contract for wireless telecommunications services;
27. Effective January 1, 1991, leases of rail transportation
cars to haul coal to coal-fired plants located in this state which
generate electric power;
28. Beginning July 1, 2005, sales of aircraft engine repairs,
modification, and replacement parts, sales o f aircraft frame repairs
and modification, aircraft interior modification, and paint, and
sales of services employed in the repa ir, modification, and
Req. No. 2729 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
replacement of parts of aircraft engines, aircraft frame and
interior repair and modification, and paint;
29. Sales of materials and supplies to the owner or operator of
a ship, motor vessel, or barge that is used in interstate or
international commerce if the materials and supplies:
a. are loaded on the ship, motor vessel, or barge and
used in the maintenanc e and operation of t he ship,
motor vessel, or barge, or
b. enter into and become component parts of the ship,
motor vessel, or barge;
30. Sales of tangible personal property made at estate sales at
which such property is offered for sale on the premises o f the
former residence of the decedent by a person who is not required to
be licensed pursuant to the Transient Merchant Licensi ng Act, or who
is not otherwise required to obtain a sales tax permit for the sale
of such property pursuant to the provisions o f Section 1364 of this
title; provided:
a. such sale or event may not be h eld for a period
exceeding three (3) consecutive days,
b. the sale must be condu cted within six (6) months of
the date of death of the dec edent, and
c. the exemption allowed by this paragraph shall not be
allowed for property that was not part of the
decedent’s estate;
Req. No. 2729 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
31. Beginning January 1, 2004, sales of electricity and
associated delivery and transmission services, when sold exclusiv ely
for use by an oil and gas operator for res ervoir dewatering proj ects
and associated operations commencing on or afte r July 1, 2003, in
which the initial water -to-oil ratio is greater than or equal to
five-to-one water-to-oil, and such oil and gas devel opment projects
have been classified by the Co rporation Commission a s a reservoir
dewatering unit;
32. Sales of prewritten computer software that is delivered
electronically. For purposes of this par agraph, “delivered
electronically” means delivered to the purchaser by mean s other than
tangible storage media;
33. Sales of modular dwelling units when built at a production
facility and moved in whole or in parts, to be assemb led on-site,
and permanently affixed to the real property and used for
residential or commercial purpo ses. The exemption provid ed by this
paragraph shall equal forty-five percent (45%) of the total sal es
price of the modular dwelling unit. For purposes of this paragraph,
“modular dwelling unit” means a structure that is not subject to the
motor vehicle excise tax imposed pursuant to Section 2103 of th is
title;
34. Sales of tangible personal property o r services to persons
who are residents of Oklahoma an d have been honorably disch arged
from active service in any branch of the Armed Forces of the United
Req. No. 2729 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
States or Oklahoma National Guard and who have be en certified by the
United States Department of Vete rans Affairs or its successor to be
in receipt of disability compensation at the one-hundred-percent
rate and the disability shall be permanent and have bee n sustained
through military action or accident or resulting from disease
contracted while in such a ctive service or the surviving spouse of
such person if the person is deceased an d the spouse has not
remarried; provided, sales for the benefit of the pers on to a spouse
of the eligible person or to a me mber of the household in which the
eligible person resides and who is authorized to make purchases on
the person’s behalf, when such eligible person is not present at the
sale, shall also be exempt for purpos es of this paragraph . The
Oklahoma Tax Commissi on shall issue a separate exemption card to a
spouse of an eligible person or to a member of the household in
which the eligible pers on resides who is authorized to make
purchases on the person’s behalf, if requested by the eligible
person. Sales qualifying for the exemption authorized by this
paragraph shall not exceed Twenty-five Thousand Dollars ($25,000.0 0)
per year per individual while the disabled veteran is living. Sales
qualifying for the exemption a uthorized by this paragrap h shall not
exceed One Thousand Dollars ($1,000.00) per year for an unrema rried
surviving spouse. Upon request of the Tax Commi ssion, a person
asserting or claiming the exemption authorized by this paragrap h
shall provide a state ment, executed under oath, that the total sales
Req. No. 2729 Page 17 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
amounts for which the exemption is applicable have n ot exceeded
Twenty-five Thousand Dollars ($25,000.00) per year per living
disabled veteran or One Thousand Dollars ($1,000.00) per ye ar for an
unremarried surviving spouse. If the amount of such exempt s ales
exceeds such amount, the sales tax in excess of the authorized
amount shall be treated as a direct sa les tax liability and may b e
recovered by the Tax Commission in the same manner provided by law
for other taxes, including penalty and interest;
35. Sales of electricity to the operator, specifically
designated by the Corporation Commission, of a spacing unit or lease
from which oil is produced or attempted to be produced using
enhanced recovery methods , including, but not limited to, increased
pressure in a producing formation through the use of water or
saltwater if the electrical usage is associated wit h and necessary
for the operation of equipment required to inject or circulate
fluids in a producing f ormation for the purpose o f forcing oil or
petroleum into a wellbore for eventual recovery and produ ction from
the wellhead. In order to be eligible for the sales tax exemption
authorized by this paragraph, the total content of oil recovered
after the use of enhanced recovery meth ods shall not exceed o ne
percent (1%) by volume. The exemption authorized by this paragraph
shall be applicable only to the sta te sales tax rate and shall not
be applicable to any county or municipal sales tax rate;
Req. No. 2729 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
36. Sales of intrastate charter and to ur bus transportation .
As used in this paragraph, “intrastate charter and tour bus
transportation” means the transportation of persons from one
location in this state to another location in this state in a motor
vehicle which has been constructed in such a manner that it may
lawfully carry more than eighteen persons, and which is ordinarily
used or rented to carry persons for comp ensation. Provided, this
exemption shall not apply to regularly scheduled bu s transportation
for the general public;
37. Sales of vitamins, minerals , and dietary supplements by a
licensed chiropractor to a person who is the patient of such
chiropractor at the physical location whe re the chiropractor
provides chiropractic care or services to such patient . The
provisions of this p aragraph shall not be a pplicable to any drug,
medicine, or substance for which a prescription by a licensed
physician is require d;
38. Sales of goods, wares, merchandise, tangible personal
property, machinery, and equipment to a web search portal located in
this state which deriv es at least eighty percent (80%) of its annual
gross revenue from the sale of a product or service to a n out-of-
state buyer or consumer. For purposes of this paragraph, “web
search portal” means an establishment classified under N AICS code
519130 which operates websites that use a sear ch engine to generate
Req. No. 2729 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
and maintain extensive databases of Internet addre sses and content
in an easily searchable format;
39. Sales of tangible personal property consumed or
incorporated in the constr uction or expansion of a facility for a
corporation organized under Sectio n 437 et seq. of Title 18 of the
Oklahoma Statutes as a rural electric cooperativ e. For purposes of
this paragraph, sales made to a contractor or subcontra ctor that has
previously entered into a contractual relationship with a rural
electric cooperative f or construction or expansion of a facility
shall be considered sales made to a ru ral electric cooperative;
40. Sales of tangible personal property or servi ces to a
business primarily engaged in the repair o f consumer electronic
goods, including, but not l imited to, cell phones, compact disc
players, personal computers, MP3 players, di gital devices for the
storage and retrieval of information through hard -wired or wireless
computer or Internet connections, if the devices are sold to the
business by the orig inal manufacturer of such devices and the
devices are repaired, refitted, or refurbished for sale by the
entity qualifying for the exemption authorized by t his paragraph
directly to retail consumers or if the devices are sold to another
business entity for sale to retail consumers;
41. On or after July 1, 20 19, and prior to July 1, 20 24, sales
or leases of rolling stock when sold or leased by the manufacture r,
regardless of whether t he purchaser is a public s ervices corporation
Req. No. 2729 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
engaged in business as a com mon carrier of property or passengers by
railway, for use or consumption by a com mon carrier directly in the
rendition of public service. For purposes of this paragraph,
“rolling stock” means locomotives, au tocars, and railroad cars and
“sales or leases” includes railroad car maintenance and retrofitting
of railroad cars for their fur ther use only on the railways;
42. Sales of gold, silver, platinum, pallad ium, or other
bullion items such as coins and bars and legal tender of any nation,
which legal tender is sold according to its value as precious metal
or as an investment. As used in the paragraph, “bullion” means any
precious metal, including, but not li mited to, gold, silver,
platinum, and palladium, that i s in such a state or condition that
its value depends upon its precious metal content and not its f orm.
The exemption authori zed by this paragraph shall not apply to
fabricated metals that have been p rocessed or manufactured f or
artistic use or as jewelry ; and
43. Until January 2027, s ales of commercial forestry service
equipment, limited to forwarder s, fellers, bunchers, track skidders,
wheeled skidders, hydraulic excavators, delimbers, soil compacto rs
and skid steer loaders, to businesses engaged in log ging, timber,
and tree farming; and
44. Groceries. For the purposes of this paragraph:
a. “bottled water” means water that is placed in a safety
sealed container or package for human consumption
Req. No. 2729 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
including water that is delivered to the buyer in a
reusable container that i s not sold with the water.
Bottled water shall be calorie free and shall not
contain sweeteners or other additives, except that it
may contain:
(1) antimicrobial agents,
(2) fluoride,
(3) carbonation,
(4) vitamins, minerals, a nd electrolytes,
(5) oxygen,
(6) preservatives, and
(7) only those flavors, extracts, or essences derived
from spice or fruit,
b. “candy” means a preparation of sugar, honey, or other
natural or artificial sweeteners in combination with
chocolate, fruits, nuts, or other ingredients or
flavorings in the form of bar s, drops, or pieces.
Candy shall not include any p reparation containing
flour or require refrigeration,
c. “dietary supplement” means any product, other than
tobacco, intended to supplement th e diet that:
(1) contains one or more of the following dietary
ingredients:
(a) a vitamin,
Req. No. 2729 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
(b) a mineral,
(c) an herb or other botanical,
(d) an amino acid,
(e) a dietary substance for use by humans to
supplement the diet by increasing the total
dietary intake, or
(f) a concentrate, metabolite, constituent,
extract, or combination of any ingredient
described in this division,
(2) is intended for ingestion in tablet, capsule,
powder, softgel, gelcap, or liquid form, or if
not intended for ingestion in such a form, is not
represented as conventional food and is not
represented for use as a sole item of a meal or
of the diet, and
(3) is required to be labeled as a dietary
supplement, identifiable by the “Supplemental
Facts” box found on the label as requ ired
pursuant to 21 CFR, Part 101.36,
d. “food and food ingredients ” mean substances, whether
in liquid, concentrated, so lid, frozen, dried, or
dehydrated form, that are sold for ingestion or
chewing by humans and are consumed for their taste or
nutritional value. Food and food ingredients shall
Req. No. 2729 Page 23 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
not include alcoholic bevera ges, dietary supplements,
bottled water, candy, sof t drinks, or tobacco,
e. “groceries” mean food and food ingredients , candy,
soft drinks, dietary supplements, and bottled water.
Groceries shall not mean prepared food, except fo r:
(1) food sold by a seller whose primary NAICS
classification is manufactur ing in sector 311,
except subsector 3118,
(2) food sold in an unheated state by weight or
volume as a single item,
(3) bakery items including bread rolls, buns,
biscuits, bagels, croissants, pastries, donuts,
Danish, cakes, tortes, pies, tarts, muffins,
bars, cookies, and tortillas, and
(4) food sold that ordinarily requires additional
cooking, not including just reheating, by the
consumer prior to consumption,
f. “prepared food” means:
(1) food sold in a heated state or heated by the
seller,
(2) two or more food ingredients mixed or combined by
the seller for sale as a single item, or
(3) food sold with eating utensils provided by the
seller including plates, knives, forks, spo ons,
Req. No. 2729 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
glasses, cups, napkins, or straws, but does not
include a container or packa ging used to
transport the food.
“Prepared food” shall not include soft drink s, dietary
supplements, or candy, and
g. “soft drinks” means non-alcoholic beverages that
contain natural or artificial sweeteners, but does not
include beverages that contain mil k or milk products,
soy, rice, or similar milk substitutes, or greater
than fifty percent (50%) of vegetable or fruit juice
by volume.
The exemption provided in this paragraph shall not apply to any
sales tax levied by a city or town, county, or any other
jurisdiction in this state .
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1370, is
amended to read as f ollows:
Section 1370. A. In accordance with the provisions of Section
1 of this act 1354.36 of this title, any county of this s tate may
levy a sales tax of not to exceed two percent (2%) upon the gross
proceeds or gross rec eipts derived from all sales or services in the
county upon which a consumer’s sales tax is levied by this state.
Before a sales tax may be levied by the count y, the imposition of
the tax shall first be ap proved by a majority of the registered
voters of the county voting thereon at a special election called by
Req. No. 2729 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the board of county commissioners or by initi ative petition signed
by not less than five percent (5%) o f the registered voters of the
county who were registered at the time of the last general election.
However, if a majority of the registered voters of a county voting
fail to approve such a tax, th e board of county commissioners shall
not call another spe cial election for such purpose for six (6)
months. Any sales tax approved by the registered voters of a county
shall be applicable only when the poi nt of sale is within the
territorial limits of su ch county. Any sales tax levied or any
change in the rate of a sales tax levied pursuant to the provisi ons
of this section shall become effective on the first day of the
calendar quarter following approval by the voters of the county
unless another effect ive date, which shall also be on the first day
of a calendar quarter, is specified in the ordinance or r esolution
levying the sales tax or changing the rate of sales tax.
B. The Oklahoma Tax Commission shal l give notice to all vendors
of a rate change at least sixty (60) days prior to the effective
date of the rate change. Provided, for purchases from prin ted
catalogs wherein the purchaser computed the tax based upon local tax
rates published in the catalog , the rate change shall not be
effective until the first day of a calendar quarter after a minimum
of one hundred twenty (120) days ’ notice to vendors. Failure to
give notice as required by this section shall delay the effective
Req. No. 2729 Page 26 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
date of the rate change to the first day of the next calendar
quarter.
C. Initiative petitions calling for a special election
concerning county sales tax proposals shall be in ac cordance with
Sections 2, 3, 3.1, 6, 18 and 24 of Title 34 of the Oklahoma
Statutes. Petitions shall b e submitted to the office of county
clerk for approval as to form prior to circulation. Following
approval, the petitioner shall have ninety (90) days t o secure the
required signatures. After securing the requisite number of
signatures, the petitioner sh all submit the petition and signatures
to the county clerk. Following the verification of signatures, the
county clerk shall present the petition to the board of county
commissioners. The special election shall be held within sixty (60)
days of receiving the petition. The ballot title presented to the
voters at the special election shall be identical to the ballot as
presented in the initiative petition .
D. Subject to the provisions of Section 1357.10 of this title,
all items that are exempt from the st ate sales tax shall be exempt
from any sales tax levied by a county; provided, the provisions of
this subsection shall not apply to paragraph 44 of Section 1 of t his
act.
E. Any sales tax which may be levied by a county shall be
designated for a particula r purpose. Such purposes may include, but
are not limited to, projects owned by the state, any agency or
Req. No. 2729 Page 27 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
instrumentality thereof, the county and/or any political subdivision
located in whole or in part within such county, regional
development, economic de velopment, common education, general
operations, capital improvements, county roads, weather modification
or any other purpose deemed, by a majority vote of the c ounty
commissioners or as stated by initiative petition, to be necessary
to promote safety, se curity and the general well-being of the
people, including any authorized purpose pursuant to the Oklahoma
Community Economic Development Pooled Finance Act. The county shall
identify the purpose of the sales tax when it is presented to the
voters pursuant to the provisions of subsection A of this secti on.
Except as otherwise provided in this section and exce pt as required
by the Oklahoma Community Economic Devel opment Pooled Finance Act,
the proceeds of any sales tax levied by a county shall be deposited
in the general revenue or sales tax revolving fu nd of the county and
shall be used only for the purpose fo r which such sales tax was
designated. If the proceeds of any sales tax levied by a county
pursuant to this section are pledged for the purpose of r etiring
indebtedness incurred for the specific pu rpose for which the sales
tax is imposed, the sales tax sh all not be repealed until such time
as the indebtedness is retired. However, in no event shall the life
of the tax be extended beyond the duration a pproved by the voters of
the county.
Req. No. 2729 Page 28 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
F. 1. Notwithstanding any other provisions of law, any county
that has approved a sales tax for the construction, support o r
operation of a county hospital may continue to collect such tax if
such hospital is subseque ntly sold. Such collection shall only
continue if the county remains indebted for the past construction,
support or operation of such hospital. The collection m ay continue
only until the debt is repaid or for the stated term of the sales
tax, whichever period is shorter.
2. If the construction, suppor t or operation of a hospital is
funded through the levy of a county sales tax pursuant to this
section and such hospital is subsequently sold, the county levying
the tax may dissolve the governing board of s uch hospital following
the sale. Upon the sale o f the hospital and dissolution of any
governing board, the county is relieved of any future liability for
the operation of such hospital.
G. Proceeds from any sales tax levied that is designated to be
used solely by the sheriff for the operation of the of fice of
sheriff shall be placed in the special revenue acc ount of the
sheriff.
H. The life of the tax could be l imited or unlimited in
duration. The county shall identify the duration of the tax when it
is presented to the voters pursuant to the provisio ns of subsections
A and C of this section. The maximum du ration of a levy imposed
pursuant to Section 891.14 of Title 62 of the Oklahoma Statutes
Req. No. 2729 Page 29 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
shall be no longer than allowed pursuant to the Oklahoma Com munity
Economic Development Pooled Finance Act.
I. Except for the levies imposed pursuant to Section 891.1 4 of
Title 62 of the Oklahoma Statutes, there are hereb y created one or
more county sales tax revolving funds in each county which levies a
sales tax under this section if any or all of the proceeds of such
tax are not to be deposited in the general revenu e fund of the
county or comply with the provisions of s ubsection G of this
section. Each such revolving fund shall be designated for a
particular purpose and shall consist of all monies generated b y such
sales tax which are designated for such purpose. M onies in such
funds shall only be expended for the purp oses specifically
designated as required by this section. A county sales tax
revolving fund shall be a continuing fund not subject to fiscal y ear
limitations.
J. In the case of a levy submitted for v oter approval pursuant
to Section 891.14 of Title 62 of the Oklahoma Statutes, taxes levied
by a county shall not become valid until the ordinance or resolution
setting the rate of the levy shall ha ve been approved by a majority
vote of the registered vote rs of each such county voting on such
question at a special election. Elections conducted pursuant to
questions submitted pursuant to Section 891.14 of Title 62 of the
Oklahoma Statutes shall be co nducted on the same date or in a
sequence that provides th at the last vote required for approval by
Req. No. 2729 Page 30 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
all participating counties or municipalities occurs not later than
thirty (30) days after the date upon whi ch the first vote occurs.
SECTION 3. This act shall become effective November 1, 2022.
58-2-2729 QD 1/20/2022 8:04:03 AM