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53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 58th Legislature (2022)
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57	57	SENATE BILL 1655 By: Pederson
58	58
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63	63	AS INTRODUCED
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65	65	An Act relating to agricultural sales tax exemption;
66	66	amending 68 O.S. 2021, Section 1358.1, which relates
67	67	to the exemption permit; providing exception;
68	68	requiring the Oklahoma Tax Co mmission to provide
69	69	certain renewal form; providing eligibility for
70	70	permit renewal upon submission of form ; and providing
71	71	an effective date.
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77	77	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
78	78	SECTION 1. AMENDATORY 68 O.S. 2021, Section 1358.1, is
79	79	amended to read as follows:
80	80	Section 1358.1. A. In order to qualify for any exemption
81	81	authorized by Section 1358 of this title, at the time of sale, the
82	82	person to whom the sal e is made shall be required to furnish the
83	83	vendor proof of eligibility for the exemption as required by this
84	84	section.
85	85	B. All vendors shall honor the proof of eligibility for sales
86	86	tax exemption as authorized by this section and sales to a person
87	87	providing such proof shall be exempt from the tax levied by this
88	88	article, Section 1350 et seq. of this title.
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140	140	C. The agricultural exemption permit, the size and design of
141	141	which shall be prescribed by the Oklahoma Tax Commission, shall
142	142	constitute proof of eligibili ty for sales tax exemptions authorized
143	143	by Section 1358 of this title. The permit shall be obtained by
144	144	listing personal property used in farming or ranching by the person
145	145	with the county assessor each year as provided by law. If the
146	146	assessor determines th at the personal property is correctly listed
147	147	and assessed for ad valorem taxation and the county treasurer
148	148	certifies whether the person has delinquent accounts appearing on
149	149	the personal property tax lien docket in the county treasurer ’s
150	150	office, the assessor shall certify the assessment upon a form
151	151	prescribed by the Oklahoma Tax Commission. One copy shall be
152	152	retained by the assessor, one copy shall be forwarded to the
153	153	Oklahoma Tax Commission and one copy shall be given to the person
154	154	listing the personal pro perty. Upon verification that the applicant
155	155	qualifies for the exemptions authorized by Section 1358 of this
156	156	title and that the applicant has no delinquent accounts appearing on
157	157	the personal property tax lien docket in the office of the county
158	158	treasurer, a permit shall be issued as prescribed by this section.
159	159	The permit shall be renewable every three (3) years in the mann er
160	160	provided by this section , or as provided by subsection I of this
161	161	section.
162	162	D. A person who does not otherwise quali fy for a permit
163	163	pursuant to subsection C of this section, except as provided in
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215	215	subsection E of this section, shall file with the Oklahoma Tax
216	216	Commission an application for an agricultur al exemption permit
217	217	constituting proof of eligibility for the sales ta x exemptions
218	218	authorized by Section 1358 of this title, setting forth such
219	219	information as the Tax Commission may require. The app lication
220	220	shall be certified by the applicant that the app licant is engaged in
221	221	custom farming operations or in the business of f arming or ranching.
222	222	If the applicant is a corporation, the application shall be
223	223	certified by a legally constituted officer there of.
224	224	The Oklahoma Tax Commission shall accept any of the f ollowing as
225	225	proof of eligibility for th e exemptions authorized by thi s section
226	226	or pursuant to Section 1358 of this title.
227	227	1. A copy of IRS Schedule F, a copy of IRS form 1065 or a copy
228	228	of IRS form 4835, or any equivalent form prescribed by the Internal
229	229	Revenue Service, with respect to a federa l income tax return;
230	230	2. A one-page business description form provided by the
231	231	Oklahoma Tax Commission;
232	232	3. Farm Service Agency form 156EZ; or
233	233	4. Other documents at the discretion of the Oklahoma Tax
234	234	Commission that verify active agriculture production.
235	235	E. Except as provided in t his subsection, for a person who is a
236	236	resident of another state and who is engaged in custom farming
237	237	operations in this state, the pers on shall provide the vendor proof
238	238	of residency, the name, address and telephone number of the pe rson
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290	290	engaging the custom farmer and certification on the face of the
291	291	invoice, under the penalty of perjury, that the property purchased
292	292	shall be used in agricul tural production as proof of eligibility for
293	293	the sales tax exemption authorized by Section 1358 of this title.
294	294	Any person who is a resident of another state and who is engaged in
295	295	custom farming operations in this state and who owns property in
296	296	this state, shall obtain proof of eligibility as provided in
297	297	subsection C or D of this section.
298	298	F. If an agricultural exemption pe rmit holder purchases
299	299	tangible personal property from a vendor on a regular basis, the
300	300	permit holder may furnish the vendor proof of eli gibility as
301	301	provided for in subsections C and D of this s ection and the vendor
302	302	may subsequently make sales of tangible p ersonal property to the
303	303	permit holder without requiring proof of eligibility for each
304	304	subsequent sale. Provided, the permit holder shal l notify the
305	305	vendor of all purchases which are not exempt from sales tax under
306	306	the provisions of Section 1358 of this ti tle and remit the
307	307	applicable amount of tax thereon. If the permit holder fails to
308	308	notify the vendor of purchases not exempt from sales tax, then
309	309	sufficient grounds shall exist for the Oklahoma Tax Commission to
310	310	cancel the agricultu ral exemption permit of the permit holder who so
311	311	failed to notify the vendor.
312	312	G. If an out-of-state agricultural exemption permit holder
313	313	purchases tangible per sonal property from a vendor within this state
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365	365	who is not in the business of shipping the tangib le personal
366	366	property purchased, then the out-of-state agricultural exemption
367	367	permit holder is responsible for providing an export bill of lading
368	368	or other documentation to the vendor from whom the tangible personal
369	369	property was purchased showing that the po int of delivery of such
370	370	goods for use and consumption is outside this state.
371	371	H. A purchaser who uses an agricultural exemption permit or
372	372	provides proof of elig ibility pursuant to subsection E of this
373	373	section to purchase, ex empt from sales tax, items not authorized for
374	374	exemption under Section 13 58 of this title shall be subject to a
375	375	penalty in the amount of Five Hundred Dollars ($500.00).
376	376	I. The Tax Commission shall provide a form for the renewal of
377	377	the agricultural exemptio n permit provided by this section. The
378	378	form shall include a check box next to a statement attesting that the
379	379	permit holder has continued agricultural production activities.
380	380	Individuals that submit the renewal form with th eir signature and a
381	381	marked checkbox shall be eligible for a renewe d permit.
382	382	SECTION 2. This act shall become effective November 1, 2022.
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384	384	58-2-2397 QD 1/20/2022 4:34:11 PM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1655 Compare Versions