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ENGROSSED SENATE
BILL NO. 1495 By: Treat and Newhouse of the
Senate
and
McCall of the House
[ sales tax - certain tax rate upon the sale of
certain property - effective date ]
BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1352, is
amended to read as follows:
Section 1352. As used in the Oklahoma Sales Tax Code:
1. “Bottled water” means water that is placed in a safety
sealed container or pa ckage for human consumption including water
that is delivered to the buyer in a reusable container that is not
sold with the water. Bottled water shall be calorie free and shall
not contain sweeteners or other additives, except that it may
contain:
a. antimicrobial agents,
b. fluoride,
c. carbonation,
d. vitamins, minerals, and electrolytes,
e. oxygen,
f. preservatives, and
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g. only those flavors, ext racts, or essences derived from
spice or fruit;
2. “Bundled transaction” means the retail sale of two or mo re
products, except real property and services to real property, where
the products are otherwise distinct and identifiable, and th e
products are sold for one nonitemized price. A “bundled
transaction” does not include the sale of any products in which th e
sales price varies, or is negotiable, based on the selection by the
purchaser of the products included in the transaction. As us ed in
this paragraph:
a. “distinct and identifiable pro ducts” does not include:
(1) packaging such as containers, boxes, sack s, bags,
and bottles, or other materials such as wrapping,
labels, tags, and instruction guides, that
accompany the retail sale of the products and are
incidental or immaterial to the re tail sale
thereof, including, but not limited to, grocery
sacks, shoeboxes, dry cleaning garment bags and
express delivery envelopes and boxes,
(2) a product provided free of charge with the
required purchase of another product. A product
is provided free of charge if the sales p rice of
the product purchased does not vary de pending on
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the inclusion of the product provided free of
charge, or
(3) items included in the definition of gross
receipts or sales price, pursuant to this
section,
b. “one nonitemized price” does not include a price that
is separately identified by produc t on binding sales
or other supporting sales -related documentation made
available to the customer in paper or electronic form
including, but not limited to , an invoice, bill of
sale, receipt, contract, service agreement, lease
agreement, periodic notice of rates and services, rate
card, or price list,
A transaction that otherwise meets the definition of a bundled
transaction shall not be considered a bundled transaction if it is:
(1) the retail sale of tangible personal property and
a service where the tangi ble personal property is
essential to the use of the service, and is
provided exclusively in connection with the
service, and the true object of the transaction
is the service,
(2) the retail sale of services where one service is
provided that is essential to the use or receipt
of a second service and the first service is
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provided exclusively in connection with the
second service and the true object of the
transaction is the second servic e,
(3) a transaction that includes taxable products and
nontaxable products and the purchase price or
sales price of the taxable products is de
minimis. For purposes of this subdivision, “de
minimis” means the seller’s purchase price or
sales price of taxable products is ten percent
(10%) or less of the total purchase price or
sales price of the bundled products. Sellers
shall use either the purchase price or the sales
price of the products to determi ne if the taxable
products are de minimis. Sellers may not use a
combination of the purchase price and sales price
of the products to determine if the taxable
products are de minimis. Sellers shall use the
full term of a service contract to determine if
the taxable products are de minimis, or
(4) the retail sale of exempt tangible personal
property and taxable tangible persona l property
where:
(a) the transaction includes food and food
ingredients, drugs, durable medical
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equipment, mobility enhancing equi pment,
over-the-counter drugs, prosthetic devices
or medical supplies, and
(b) the seller’s purchase price or sales price
of the taxable tangible personal property is
fifty percent (50%) or less of the total
purchase price or sales price of the bundled
tangible personal property. Sellers may not
use a combination of the purchase price and
sales price of the tangible personal
property when making the fifty percent (50%)
determination for a transaction;
2. 3. “Business” means any activity engaged in or caused to be
engaged in by any person with the object of ga in, benefit, or
advantage, either direct or indirect;
3. 4. “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
bars, drops, or pieces. Candy shall not include any preparation
containing flour or require refrigeration;
5. “Commission” or “Tax Commission” means the Oklahoma Tax
Commission;
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4. 6. “Computer” means an electronic device that accepts
information in digital or similar form and manipulates it for a
result based on a sequence of instruc tions;
5. 7. “Computer software” means a set of coded instructions
designed to cause a “computer” or automatic data processing
equipment to perform a task;
6. 8. “Consumer” or “user” means a person to whom a taxable
sale of tangible personal property is made or to whom a taxable
service is furnished. “Consumer” or “user” includes all contractors
to whom a taxable sale of materials, supplies, equipment, or other
tangible personal prop erty is made or to whom a taxable service is
furnished to be used or con sumed in the performance of any contract;
7. 9. “Contractor” means any person who performs any
improvement upon real property and who, as a necessary and
incidental part of performing s uch improvement, incorporates
tangible personal property belonging to or purchased by the person
into the real property being improved;
8. 10. “Dietary supplement” means any product, other than
tobacco, intended to supplement the diet that:
a. contains one or more of the following dietary
ingredients:
(1) a vitamin,
(2) a mineral,
(3) an herb or other botanical,
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(4) an amino acid,
(5) a dietary substance for us e by humans to
supplement the diet by increasing the total
dietary intake, or
(6) a concentrate, metabolite, constituent, extract,
or combination of any ingredient described in
this division,
b. 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
c. is required to be labeled as a dietary supplement,
identifiable by the “Supplemental Facts” box found on
the label as required pursuant to 21 C FR, Part 101.36;
11. “Drug” means a compound, substance or preparation, and any
component of a compound, substance or preparation:
a. recognized in the official United States
Pharmacopoeia, official Homeopathic Pharmacopoeia of
the United States, or official National For mulary, and
supplement to any of them,
b. intended for use in the diag nosis, cure, mitigation,
treatment, or prevention of disease, or
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c. intended to affect the structure or any function of
the body;
9. 12. “Electronic” means relating to technology having
electrical, digital, magnetic, wireless, optical, electromagnetic,
or similar capabilities;
10. 13. “Established place of busines s” means the location at
which any person regularly engages in, conducts, or operates a
business in a continuous manner for a ny length of time, that is open
to the public during the hours customa ry to such business, in which
a stock of merchandise for resa le is maintained, and which is not
exempted by law from attachment, execution, or other species of
forced sale barring any sa tisfaction of any delinquent tax liability
accrued under the Oklahoma Sales Tax Code;
11. 14. “Fair authority” means:
a. any county, municipality, school district, public
trust or any other political subdivision of this
state, or
b. any not-for-profit corporation acting pursuant to an
agency, operating or management agreeme nt which has
been approved or authorized by the governing body of
any of the entities specified in subparagraph a of
this paragraph which conduct, operate or produce a
fair commonly understood to be a county, district or
state fair;
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12. 15. “Food and food ingredients” mean substances, whether in
liquid, concentrated, solid, 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 ingred ients shall
include bottled water, candy, and soft drinks. Food and food
ingredients shall not include alcoholic beverages, dietary
supplements, prepared food, and tobacco;
16. a. “Gross receipts”, “gross proceeds” or “sales price”
means the total amount of con sideration, including
cash, credit, property and services, for which
personal property or services are sold, leased or
rented, valued in money, whether received in money or
otherwise, without any deduction for the following:
(1) the seller’s cost of the property sold,
(2) the cost of materials used, labor or service
cost,
(3) interest, losses, all costs of transportation to
the seller, all taxes imposed on the seller, and
any other expense of the seller,
(4) charges by the seller for any services necessary
to complete the sale, other than delivery and
installation charges,
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(5) delivery charges and installation charges, unless
separately stated on the invoice, billing or
similar document given to the purchase r, and
(6) credit for any trade-in.
b. Such term shall not include:
(1) discounts, including cash, term, or coupons that
are not reimbursed by a third party that are
allowed by a seller and taken by a purchaser on a
sale,
(2) interest, financing, and carry ing charges from
credit extended on the sale of per sonal property
or services, if the amount is separately stated
on the invoice, bill of sale or similar document
given to the purchaser, and
(3) any taxes legally imposed directly on the
consumer that are separately stated on the
invoice, bill of sale or si milar document given
to the purchaser.
c. Such term shall include consideration received by the
seller from third parties if:
(1) the seller actually receives consideration from a
party other than the purc haser and the
consideration is directly related to a price
reduction or discount on the sale,
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(2) the seller has an obligation to pass the price
reduction or discount through to the purchaser,
(3) the amount of the consideration attributable to
the sale is fixed and determinable by the seller
at the time of the sale of the item to the
purchaser, and
(4) one of the following criteria is met:
(a) the purchaser presents a coupon, certificate
or other documentation to the seller to
claim a price reduction or di scount where
the coupon, certificate or documentati on is
authorized, distributed or granted by a
third party with the understanding that the
third party will reimburse any seller to
whom the coupon, certificate or
documentation is presented,
(b) the purchaser identifies himself or herself
to the seller as a member of a group or
organization entitled to a price reduction
or discount; provided, a “preferred
customer” card that is available to any
patron does not constitute membership in
such a group, or
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(c) the price reduction or discount is
identified as a third-party price reduction
or discount on the invoice received by the
purchaser or on a coupon, certificate or
other documentation presented by the
purchaser;
13. 17. a. “Maintaining a place of business i n this state”
means and shall be presumed to include:
(1) (a) utilizing or maintaining in this state,
directly or by subsidiary, an office,
distribution house, sales house, warehouse,
or other physical place of business, whether
owned or operated by the ve ndor or any other
person, other than a common carrier a cting
in its capacity as such, or
(b) having agents operating in this state,
whether the place of business or agent
is within this state temporarily or
permanently or whether the person or
agent is authorized to do business
within this state, and
(2) the presence of any person, other than a common
carrier acting in its capacity as such, that has
substantial nexus in this state and that:
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(a) sells a similar line of products as the
vendor and does so unde r the same or a
similar business name,
(b) uses trademarks, service marks or trade
names in this state that are the same
or substantially similar to those used
by the vendor,
(c) delivers, installs, assembles or
performs maintenance services for the
vendor,
(d) facilitates the vendor’s delivery of
property to customers in the state by
allowing the vendor’s customers to pick
up property sold by the vendor at an
office, distribution facility,
warehouse, storage place or similar
place of business maintained by the
person in this state, or
(e) conducts any other ac tivities in this state
that are significantly associated with the
vendor’s ability to establish and maintain a
market in this state for the vendor ’s sale.
b. The presumptions in divisions (1) and (2) o f
subparagraph a of this paragraph may be rebutted by
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demonstrating that the person’s activities in this
state are not significantly associated with the
vendor’s ability to establish and maintain a market in
this state for the vendor ’s sales.
c. Any ruling, agreement or contract, whether written or
oral, express or implied, between a person and
executive branch of this state, or any other state
agency or department, stating, agreeing or ruling that
the person is not “maintaining a place of business in
this state” or is not required to collect sales and
use tax in this state despite the presence of a
warehouse, distribution center or fulfillment center
in this state that is owned or operated by the vendor
or an affiliated person of the vendor shall be null
and void unless it is specifically approved by a
majority vote of each house of the Oklahoma
Legislature;
14. 18. “Manufacturing” means and includes the activity of
converting or conditioning tangible personal property by changing
the form, composition, or quality of character of some existing
material or materials , including natural resources, by procedures
commonly regarded by the average person as manufacturing,
compounding, processing or assembling, into a material or materials
with a different form or u se. “Manufacturing” does not include
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extractive industrial activities such as mining, quarrying, logging,
and drilling for oil, gas and water, nor oil and gas field
processes, such as natural pressure reduction, mechanical
separation, heating, cooling, de hydration and compression;
15. 19. “Manufacturing operation ” means the designing,
manufacturing, compounding, processing, assembling, warehousing, or
preparing of articles for sale as tangible personal property. A
manufacturing operation begins at the po int where the materials
enter the manufacturing site and ends a t the point where a finished
product leaves the manufacturing site. “Manufacturing operation ”
does not include administration, sales, distribution,
transportation, site construction, or site m aintenance. Extractive
activities and field processes shall no t be deemed to be a part of a
manufacturing operation even when performed by a person otherwise
engaged in manufacturing;
16. 20. “Manufacturing site” means a location where a
manufacturing operation is conducted, including a location
consisting of one or mor e buildings or structures in an area owned,
leased, or controlled by a manufacturer;
17. 21. “Over-the-counter drug” means a drug that contains a
label that identifies the product as a dru g as required by 21
C.F.R., Section 201.66. The over -the-counter-drug label includes:
a. a “Drug Facts” panel, or
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b. a statement of the “active ingredient(s) ” with a list
of those ingredients contained in the compound,
substance or preparation;
18. 22. “Person” means any individual, company, partnership,
joint venture, joint agreement, association, mutual or otherwise,
limited liability company, corporation, estate, trust, business
trust, receiver or trustee appointed by any state or federal court
or otherwise, syndicate, this state, any county, city, municipality,
school district, any other political subdivision of the state, or
any group or combination acting as a unit, in the plural or singular
number;
19. 23. “Prescription” means an order, formula or recipe issued
in any form of oral, written, electronic, or other means of
transmission by a duly licensed “practitioner” as defined in Section
1357.6 of this title;
20. 24. a. “Prepared food” means:
(1) food sold in a heated state or heated by the
seller,
(2) two or more food ingredients mixed or c ombined by
the seller for sale as a single item, or
(3) food sold with eating utensils provided by the
seller including plates, knives, forks, spoons,
glasses, cups, napkins, or straws, but does not
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include a container or packaging used to
transport the food, and
b. prepared food shall not include:
(1) food sold by a seller whose primary NAICS
classification is manufacturing 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 ;
25. “Prewritten computer software” means “computer software”,
including prewritten upgrades, which is not designed and developed
by the author or other creator to the sp ecifications of a spe cific
purchaser. The combining of two or more prewritten computer
software programs or prewritten portions thereof does not cause the
combination to be other than prewritten computer software.
Prewritten software includes software de signed and developed by the
author or other creator to the specifications of a specific
purchaser when it is sold to a person other than the purchaser.
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Where a person modifies or enhances computer software of which the
person is not the author or creator, the person shall be deemed to
be the author or creator only of such person ’s modifications or
enhancements. Prewritten software or a prewritten portion thereof
that is modified or enhanced to any degree, where such modification
or enhancement is designed and developed to the specifications of a
specific purchaser, remains prewritten software; provided, however,
that where there is a reasonable, separately stated charge or an
invoice or other statement of the price given to the purchaser for
such modification or enhancement, s uch modification or enhancement
shall not constitute prewritten comput er software;
21. 26. “Repairman” means any person who performs any repair
service upon tangible personal property of the consumer, whether or
not the repairman, as a ne cessary and incidental part of performing
the service, incorporates tangible personal p roperty belonging to or
purchased by the repairman into the tangible personal property being
repaired;
22. 27. “Sale” means the transfer of either title or possession
of tangible personal property for a valuable consideration
regardless of the manner, met hod, instrumentality, or device by
which the transfer is accomplished in this state, or other
transactions as provided by this paragraph , including, but not
limited to:
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a. the exchange, barter, lease, or rental of tangible
personal property resulting in the transfer of the
title to or possession of the property,
b. the disposition for consumption or use in any business
or by any person of all goods, wares, merchandise, or
property which has been purchased for resale,
manufacturing, or further processing,
c. the sale, gift, exchange, or other disposition of
admission, dues, or fees to clubs, places of
amusement, or recreational or athletic events or for
the privilege of having a ccess to or the use of
amusement, recreational, athletic or entertainment
facilities,
d. the furnishing or rendering of services taxable under
the Oklahoma Sales Tax Code, and
e. any use of motor fuel or diesel fuel by a supplier, as
defined in Section 500 .3 of this title, upon which
sales tax has not previously been paid, for purposes
other than to propel motor vehicles over the public
highways of this state. Motor fuel or diesel fuel
purchased outside the state and used for purposes
other than to propel motor vehicles over the public
highways of this state shall not constitute a sale
within the meaning of this paragraph;
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23. 28. “Sale for resale” means:
a. a sale of tangible personal property to any purchaser
who is purchasing tangible personal property for the
purpose of reselling it within the geographical limits
of the United States of America or its territories or
possessions, in the normal course of business either
in the form or condition in which it is purchased or
as an attachment to or integral part of other tangible
personal property,
b. a sale of tangible personal property to a purchaser
for the sole purpose of the renting or leasing, within
the geographical limits of the United States of
America or its territories or possessions, of the
tangible personal property to another person by the
purchaser, but not if incidental to th e renting or
leasing of real estate,
c. a sale of tangible goods and products within this
state if, simultaneously with the sale, the vendor
issues an export bill of lading, or other
documentation that the point of delivery of such goods
for use and consumption is in a foreign country and
not within the territorial confines of the United
States. If the vendor is not in the business of
shipping the tangible goods and products tha t are
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purchased from the vendor, the buyer or purchaser of
the tangible goods a nd products is responsible for
providing an export bill of lading or other
documentation to the vendor from whom the tangible
goods and products were purchased showing that the
point of delivery of such goods for use and
consumption is a foreign country an d not within the
territorial confines of the United States, or
d. a sales sale of any carrier access services, right of
access services, telecommunications services to be
resold, or telecommunications used in the subsequent
provision of, use as a component part of, or
integrated into, end-to-end telecommunications
service;
24. 29. “Soft drinks” means non-alcoholic beverages that
contain natural or artificial sweeteners, but does not incl ude
beverages that contain milk or milk products, soy, rice, or similar
milk substitutes, or greater than fifty percent (50%) of vegetable
or fruit juice by volume;
30. “Tangible personal property ” means personal property that
can be seen, weighed, measur ed, felt, or touched or that is in any
other manner perceptible to the sense s. “Tangible personal
property” includes electricity, water, gas, steam and prewritten
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computer software. This definition shall be applicable only for
purposes of the Oklahoma Sa les Tax Code;
25. 31. “Taxpayer” means any person liable to pay a tax impos ed
by the Oklahoma Sales Tax Code;
26. 32. “Tax period” or “taxable period” means the calendar
period or the taxpayer ’s fiscal period for which a taxpayer has
obtained a permit fr om the Tax Commission to use a fiscal period in
lieu of a calendar period;
27. 33. “Tax remitter” means any person required to collect,
report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
tax remitter who fails, for any reason, to collect, report, or remit
the tax shall be considered a taxpayer for purposes of ass essment,
collection, and enforcement of the tax imposed by the Oklahoma Sales
Tax Code; and
28. 34. “Vendor” means:
a. any person making sales of tangible personal property
or services in this state, the gross receipts or gross
proceeds from which are tax ed by the Oklahoma Sales
Tax Code,
b. any person maintaining a place of business in this
state and making sales of tangible personal property
or services, whether at the place of b usiness or
elsewhere, to persons within this state, the gross
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receipts or gross proceeds from which are taxed by the
Oklahoma Sales Tax Code,
c. any person who solicits business by employees,
independent contractors, agents, or other
representatives in thi s state, and thereby makes sales
to persons within this state of tangible pe rsonal
property or services, the gross receipts or gross
proceeds from which are taxed by the Oklahoma Sales
Tax Code, or
d. any person, pursuant to an agreement with the person
with an ownership interest in or title to tangible
personal property, who has been entrusted with the
possession of any such property and has the power to
designate who is to obtain title, to physically
transfer possession of, or otherwise make sales of the
property.
SECTION 2. AMENDATORY 68 O.S. 2021, Sect ion 1354, is
amended to read as follows:
Section 1354. A. There is hereby levied upon all sales, not
otherwise exempted in the Oklahoma Sales Tax Code, an excise tax of
four and one-half percent (4.5%) of the gross receipts or gross
proceeds of each sale of the following:
1. Tangible personal property, except newspapers , and
periodicals. Provided, a tax of zero percent (0%) shall be levied
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upon sales of food and food ingredients . The state sales tax rate
of zero percent (0%) levied upon sales of food and food ingredients
shall not apply to any city or town, county, or any other
jurisdiction in this state . Provided, further, any sales tax levied
by a city, town, county, or any other jurisdiction in this state
pursuant to the provisions of this section, upon sales of food and
food ingredients shall be in effect regardless of ordinan ce or
contractual provisions referring to previously imposed state sales
tax on the items;
2. Natural or artificial gas, electricit y, ice, steam, or any
other utility or public service, except water, sewage, and refuse.
Provided, the rate of four a nd one-half percent (4.5%) shall not
apply to sales subject to the provisions of pa ragraph 6 of Section
1357 of this title;
3. Transportation for hire to persons by commo n carriers,
including railroads both steam and electric, motor transportation
companies, pullman car companies, airlines, and other means of
transportation for hire, e xcluding:
a. transportation services provided by a touri sm service
broker which are incid ental to the rendition of
tourism brokerage services by such broker to a
customer regardless of whether or not such
transportation services are actually owned and
operated by the tourism service broker . For purposes
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of this subsection, “tourism service broker” means any
person, firm, association, or corporation or any
employee of such per son, firm, association, or
corporation which, for a fee, commission or other
valuable consideration, arranges or offers to arrange
trips, tours, or other vacation or recre ational travel
plans for a customer, and
b. transportation services provided by a fun eral
establishment to family members and other persons for
purposes of conducting a funeral in this state;
4. Intrastate, interstate and international telecommunications
services sourced to this state in accordance with Section 1354.30 of
this title and ancillary services. Provided:
a. the term “telecommunications services ” shall mean the
electronic transmission, conveyance, or routing of
voice, data, audio, video, or any other information or
signals to a point, or between or among points . The
term “telecommunications services” includes such
transmission, conveyance, or routing in wh ich computer
processing applications are used to act on t he form,
code, or protocol of the content for purposes of
transmission, conveyance , or routing without regard to
whether such service is re ferred to as voice-over
Internet protocol services or is class ified by the
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Federal Communications Commission as enhan ced or value
added. “Telecommunications services” do not include:
(1) data processing and information services that
allow data to be gener ated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser where such
purchaser’s primary purpose for the underlying
transaction is the processed data or information,
(2) installation or maintenance of wiring or
equipment on a customer ’s premises,
(3) tangible personal property,
(4) advertising, including, but not limited to,
directory advertising,
(5) billing and collection services provided to third
parties,
(6) Internet access services ,
(7) radio and television audio and video programming
services, regardless of the medium, including the
furnishing of transmission, conveyan ce, and
routing of such service s by the programming
service provider. Radio and television audio and
video programming services shall inclu de, but not
be limited to, cable service as defined in 47
U.S.C. 522(6) and audio and video programming
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services delivered by commercial mobile rad io
service providers, as defined in 47 C.F.R. 20.3 ,
(8) ancillary services, or
(9) digital products delivered electronically,
including, but not limited to, softwa re, music,
video, reading materials, or ring tones,
b. the term “interstate” means a “telecommunications
service” that originates in one United States state,
or a United States ter ritory or possession, an d
terminates in a different United States state or a
United States territory or possession,
c. the term “intrastate” means a telecommunications
service that originates in one United States state or
a United States territory or posse ssion, and
terminates in the same United States state or a United
States territory or possession,
d. the term “ancillary services” means services that are
associated with or incidental to the provision of
telecommunications services , including, but not
limited to, “detailed telecommunications billing”,
“directory assistance ”, “vertical service”, and “voice
mail services”,
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e. in the case of a bundled transaction that inclu des
telecommunication service, ancillary service, Internet
access, or audio or video prog ramming service:
(1) if the price is attributable to products that are
taxable and products that are nontaxable, the
portion of the price attributable to the
nontaxable products may be subject to tax unless
the provider can identify by reasonable and
verifiable standards such port ion for its books
and records kept in the regula r course of
business for other purposes, including, but not
limited to, nontax purposes, and
(2) the provisions of this paragraph shall apply
unless otherwise provided by federal law, and
f. a sale of prepaid calling service or prepaid wireless
calling service shall be taxable at the time of sale
to the customer;
5. Telecommunications nonrecurring charges, which means an
amount billed for the installation, connection, change , or
initiation of telecommunication s services received by a customer;
6. Printing or printed matter of all types, kinds, or character
and, except for services of printing, cop ying or photocopying
performed by a privately owned scientific and educational library
sustained by monthly or annu al dues paid by members sharing the use
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of such services with students interested in the study of geology,
petroleum engineering or related s ubjects, any service of printing
or overprinting, including the copying of information by mimeograph,
multigraph, or by otherwise duplicating written or printe d matter in
any manner, or the production of microfiche containing i nformation
from magnetic tapes or other media furnished by customers;
7. Service of furnishing rooms by hotel, apartm ent hotel,
public rooming house, motel, public lodging house, or tour ist camp;
8. Service of furnishing storage or parking privileges by auto
hotels or parking lots;
9. Computer hardware, software, coding sheets, cards, magnetic
tapes, or other media on which prewritten programs h ave been coded,
punched, or otherwise rec orded, including the gross receipts from
the licensing of software pro grams;
10. Foods, confections, and all drinks sold or dispensed by
hotels, restaurants, or other dispensers, and sold for immediate
consumption upon the premises or delivered or carrie d away from the
premises for consumption elsewhere , except for food and food
ingredients as defined in Section 1352 of this title;
11. Advertising of all kinds, types, and characters , including
any and all devices used for advertising purposes except those
specifically exempt pursuant to the provisions of Section 1357 of
this title;
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12. Dues or fees to clubs including free or complimentary dues
or fees which have a value equivalent to the charge that would have
otherwise been made, including any fees paid for the use of
facilities or services rendered at a health spa or club or an y
similar facility or business;
13. Tickets for admission to or voluntary contributions made to
places of amusement, sports , entertainment, exhibition, display, or
other recreational events or activities , including free or
complimentary admissions which have a value equivalent to the charge
that would have otherwise been made; provided, that the state tax
generated from the sa le of tickets for admission by an aquarium
exempt from taxation pursuant to the provi sions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), or owned or operated by
a public trust or political subdivision of this state, shall be
collected and disbursed to the nonprofit organization, public trust
or political subdivision responsib le for the aquarium’s operations
for use by that entity for promoting visitation primarily to out-of-
state residents;
14. Charges made for the privilege of entering or en gaging in
any kind of activity, such as tennis, racquetball, or handball, when
spectators are charged no admission fee;
15. Charges made for the privilege of using items for
amusement, sports, entertainment, or recreational activity, such as
trampolines or golf carts;
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16. The rental of equipment for amusement, sports,
entertainment, or other recreational activities, such as bowli ng
shoes, skates, golf carts, or other sports or athletic equipment;
17. The gross receipts from sales from any vending machine
without any deduction for rental to locate the vending machine on
the premises of a person who is not the owner or any other
deductions therefrom;
18. The gross receipts or gross proceeds from the rental or
lease of tangible personal property , including rental or lease of
personal property when the rental or lease agreement requires the
vendor to launder, clean, repair, or othe rwise service the rented or
leased property on a regular basis, without any deduction for the
cost of the service rendered . If the rental or lease charge is
based on the retail value of the property at the time of making the
rental or lease agreement and the expected life of the property, and
the rental or lease charge is separately stated from the service
cost in the statement, bil l, or invoice delivered to the consumer,
the cost of services rendered shall be deduc ted from the gross
receipts or gross proc eeds;
19. Flowers, plants, shrubs, trees, and other floral items,
whether or not produced by the vendor, sold by persons engaged in
florist or nursery business in this state , including all orders
taken by an Oklahoma business for delivery in another stat e. All
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orders taken outside this state for delivery within this state shall
not be subject to the taxes levied in this section;
20. Tangible personal property sold to persons, peddlers,
solicitors, or other salesme n, for resale when there is likelihood
that this state will lose tax revenue due to the difficulty of
enforcing the provisions of the Oklahoma Sales Tax Code because of:
a. the operation of the business,
b. the nature of the business,
c. the turnover of independent contractors,
d. the lack of place of business in which to display a
permit or keep records,
e. lack of adequate records,
f. the fact that the persons are minors or transients,
g. the fact that the persons are engaged in service
businesses, or
h. any other reasonable reason;
21. Any taxable services and tangible personal property
including materials, supplies, and equipment sold to contractors for
the purpose of developing and improving real estate even though said
the real estate is intended for resa le as real property, hereby
declared to be sales to c onsumers or users,; however, taxable
materials, supplies, and equipment sold to contractors as provided
by this subsection which are purchased as a result of and subsequent
to the date of a contract enter ed into either prior to the eff ective
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date of any law increasing the rate of sales tax imposed by this
article, or entered into prior to the effective date of an ordinance
or other measure increasing the sales tax levy of a political
subdivision shall be s ubject to the rate of sales tax applicable, as
of the date such contract was entered into, to sales of such
materials, supplies and equipment if such purchases are require d in
order to complete the contract . Such rate shall be applicable to
purchases made pursuant to the contract or an y change order under
the contract until the contract or any change order has been
completed, accepted and the contractor has been discharged from any
further obligation under the contract or change order or until two
(2) years from the date on which the co ntract was entered int o,
whichever occurs first. The increased sales tax rate shall be
applicable to all such purchases at the time of sale and the
contractor shall file a claim for refund before the expiration of
three (3) years after the date of contract completion or five (5 )
years after the contract was entered into, whichever occurs earlier .
However, the Oklahoma Tax Commission shall pre scribe rules and
regulations and shall provide procedures for the refund to a
contractor of sales taxes collected on purchases eligible fo r the
lower sales tax rate authorized by this subsection;
22. Any taxable services and tangible personal property sol d to
persons who are primarily engaged in selling their services, such as
repairmen, hereby declared to be sales to consumers or users; an d
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23. Canoes and paddleboats as defined in Section 4002 of Title
63 of the Oklahoma Statutes.
B. All solicitations or advertisements in print or electronic
media by Group Three vendors, for the sale of tangible property to
be delivered within this state, shall contain a notice that the sale
is subject to Oklahoma sales tax, unless the sale is exempt from
such taxation.
SECTION 3. This act shall become effective November 1, 2022.
Passed the Senate the 23rd day of March, 2022.
Presiding Officer of the Senat e
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives