Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB213 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SB213 HFLR Page 1
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	3	+	ENGR. S. B. NO. 213 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 58th Legislature (2021)
34		-
35	28		ENGROSSED SENATE
36	29		BILL NO. 213 By: Burns and Jett of the
37	30		Senate
38	31
39	32		and
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41	34		Dempsey of the House
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45		-	[ sales tax - sales tax exemption for certain
46		-	forestry equipment - effective date ]
	38	+	An Act relating to sales tax; amending 68 O.S. 2011,
	39	+	Section 1357, as last amended by S ection 10, Chapter
	40	+	229, O.S.L. 2017 (68 O.S. Supp. 2020, Section 1357),
	41	+	which relates to sales tax exemptions; exempting
	42	+	certain equipment used for certain purpose for
	43	+	specified years; and providing an effective dat e.
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51	48		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
52	49		SECTION 1. AMENDATORY 68 O.S. 2011, Section 1357, as
53	50		last amended by Section 10, Chapter 229, O.S.L. 2017 (68 O.S. Supp.
54	51		2020, Section 1357), is amended to read as follows:
55	52		Section 1357. Exemptions – General.
56	53		There are hereby specifically exempted from the tax l evied by
57	54		the Oklahoma Sales Tax Code:
58	55		1. Transportation of school pupils to and from elementary
59	56		schools or high schools in moto r or other vehicles;
60	57		2. Transportation of persons where the fare of each person does
61	58		not exceed One Dollar ($1.00), or local tr ansportation of persons
62	59		within the corporate limits of a municipality except by taxicabs;
	60	+	3. Sales for resale to persons engage d in the business of
	61	+	reselling the articles purchased, whether wit hin or without the
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64		-	SB213 HFLR Page 2
65		-	BOLD FACE denotes Committee Amendments. 1
	63	+	ENGR. S. B. NO. 213 Page 2 1
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90		-	3. Sales for resale to persons engaged in the business of
91		-	reselling the articles purchased, whether within or without the
92	88		state, provided that such sales to resident s of this state are made
93	89		to persons to whom sales tax permits have been issued as provided in
94	90		the Oklahoma Sales Tax Code. This exemption shall not apply to the
95	91		sales of articles made to person s holding permits when such persons
96	92		purchase items for their u se and which they are not regularly
97	93		engaged in the business of reselling; neither shall this exemption
98	94		apply to sales of tangibl e personal property to peddlers, solicitors
99	95		and other salespersons who do not have an established place of
100	96		business and a sales tax permit. The exemption provided by this
101	97		paragraph shall apply to sales of motor fuel or diesel fuel to a
102	98		Group Five vendor, but the use of such motor fuel or diesel fuel by
103	99		the Group Five vendor shall not be exempt from the tax levied by the
104	100		Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
105	101		is exempt from sales tax when the motor fuel is for shipment outside
106	102		this state and consumed by a common carrier by rail in the conduct
107	103		of its business. The sales tax shall apply to the purchase of motor
108	104		fuel or diesel fuel in Oklahoma by a common carrier by rail when
109	105		such motor fuel is purchased for fueling, within this st ate, of any
110	106		locomotive or other motorized flanged wheel equipment;
111	107		4. Sales of advertising space in newspapers and periodicals;
112	108		5. Sales of programs relating to sporting and entertainment
113	109		events, and sales of advertising on billboards (including signage,
	110	+	posters, panels, marquees, or on other similar surfaces, whether
	111	+	indoors or outdoors) or in programs relating to sporting and
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115		-	SB213 HFLR Page 3
116		-	BOLD FACE denotes Committee Amendments. 1
	113	+	ENGR. S. B. NO. 213 Page 3 1
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141		-	posters, panels, marquees, or on other similar surfaces, whether
142		-	indoors or outdoors) or in programs relating to sporting and
143	138		entertainment events, and sales of any advertising, to be displayed
144	139		at or in connection with a sporting event, via the Internet,
145	140		electronic display devices, or through public address or broadcast
146	141		systems. The exemption authorized by this paragraph shall be
147	142		effective for all sales made on or after January 1, 2001;
148	143		6. Sales of any advertising, other than the advertising
149	144		described by paragraph 5 of this section, via the Internet,
150	145		electronic display devices, or through the electronic media,
151	146		including radio, public address or broadcast systems, television
152	147		(whether through closed circuit broadcasting systems or otherwise),
153	148		and cable and satellite television, and the servicing of any
154	149		advertising devices;
155	150		7. Eggs, feed, supplies, machinery and equipment purchased by
156	151		persons regularly engaged in the business of raising worms, fish,
157	152		any insect or any other form of terrestrial or aquatic anim al life
158	153		and used for the purpose of raising same for marketing. T his
159	154		exemption shall only be granted and extended to the purcha ser when
160	155		the items are to be used and in fact are used in the raising of
161	156		animal life as set out above. Each purchaser shall cer tify, in
162	157		writing, on the invoice or sales ticket retained by the v endor that
163	158		the purchaser is regularly engaged in the business of raising such
164	159		animal life and that the items purchased will be used only in such
	160	+	business. The vendor shall certify to the Ok lahoma Tax Commission
	161	+	that the price of the items has been reduced to grant the full
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166		-	SB213 HFLR Page 4
167		-	BOLD FACE denotes Committee Amendments. 1
	163	+	ENGR. S. B. NO. 213 Page 4 1
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192		-	business. The vendor shall certify to the Oklahom a Tax Commission
193		-	that the price of the items has been reduced to grant the full
194	188		benefit of the exemption. Violation hereof by the purchaser or
195	189		vendor shall be a misdemeanor;
196	190		8. Sale of natural or artificial gas and electricity, and
197	191		associated delivery or transmission services, when sold exclusively
198	192		for residential use. Provided, this exemption shall not apply to
199	193		any sales tax levied by a city or town, or a county, or any other
200	194		jurisdiction in this state;
201	195		9. In addition to the exemptions authorized by Section 1357.6
202	196		of this title, sales of drugs sold pursuant to a prescription
203	197		written for the treatment of human beings by a p erson licensed to
204	198		prescribe the drugs, and sales of insulin and medical oxygen.
205	199		Provided, this exemption shall not apply to ove r-the-counter drugs;
206	200		10. Transfers of title or possession of empt y, partially
207	201		filled, or filled returnable oil and chemical dru ms to any person
208	202		who is not regularly engaged in the business of selling, reselling
209	203		or otherwise transferring empty, partially f illed, or filled
210	204		returnable oil drums;
211	205		11. Sales of one-way utensils, paper napkins, paper cups,
212	206		disposable hot containers and other one-way carry out materials to a
213	207		vendor of meals or beverages;
214	208		12. Sales of food or food products for home consumption wh ich
215	209		are purchased in whole or in part with coupons issued pursuant to
	210	+	the federal food stamp program as authorized by Sections 2 011
	211	+	through 2029 of Title 7 of the United States Code, as to that
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217		-	SB213 HFLR Page 5
218		-	BOLD FACE denotes Committee Amendments. 1
	213	+	ENGR. S. B. NO. 213 Page 5 1
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243		-	the federal food stamp program as authorized by Sections 2011
244		-	through 2029 of Title 7 of the United States Code, as to that
245	238		portion purchased with such coupons. The exemption provided f or
246	239		such sales shall be inapplicable to such sales upon the effecti ve
247	240		date of any federal law that removes the requirement of the
248	241		exemption as a condition for participation by the state in the
249	242		federal food stamp program;
250	243		13. Sales of food or food products, or any equipment or
251	244		supplies used in the preparation of the food or food products to or
252	245		by an organization which:
253	246		a. is exempt from taxation pursuant to the provisions of
254	247		Section 501(c)(3) of the Internal Revenue Code, 26
255	248		U.S.C., Section 501(c)(3), and wh ich provides and
256	249		delivers prepared meals for home consumption to
257	250		elderly or homebound persons as part of a program
258	251		commonly known as “Meals on Wheels” or “Mobile Meals”,
259	252		or
260	253		b. is exempt from taxation pursuant to the provisions of
261	254		Section 501(c)(3) of the I nternal Revenue Code, 26
262	255		U.S.C., Section 501(c)(3), and which rece ives federal
263	256		funding pursuant to the Older Americans Act of 19 65,
264	257		as amended, for the purpose of providing nutrition
265	258		programs for the care and benefit of elderly persons;
	259	+	14. a. Sales of tangible personal property or services to or
	260	+	by organizations which a re exempt from taxation
	261	+	pursuant to the provisions of Section 501(c)(3) of the
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267		-	SB213 HFLR Page 6
268		-	BOLD FACE denotes Committee Amendments. 1
	263	+	ENGR. S. B. NO. 213 Page 6 1
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293		-	14. a. Sales of tangible personal property or services to or
294		-	by organizations which are exempt from taxation
295		-	pursuant to the provisions of Section 501(c)(3) of the
296	288		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
297	289		and:
298	290		(1) are primarily involved in the collection and
299	291		distribution of food and other household products
300	292		to other organizatio ns that facilitate the
301	293		distribution of such products to the ne edy and
302	294		such distributee organizations are exempt from
303	295		taxation pursuant to the provisions of Section
304	296		501(c)(3) of the Internal Revenue Code, 26
305	297		U.S.C., Section 501(c)(3), or
306	298		(2) facilitate the distribution of such products to
307	299		the needy.
308	300		b. Sales made in the course of business for profit or
309	301		savings, competing with other persons engaged in the
310	302		same or similar business shall not be e xempt under
311	303		this paragraph;
312	304		15. Sales of tangible personal proper ty or services to
313	305		children’s homes which are located on church -owned property and are
314	306		operated by organizations exempt from taxation pursuant to the
315	307		provisions of the Internal Revenue Code, 26 U.S.C., Section
316	308		501(c)(3);
	309	+	16. Sales of computers, data proces sing equipment, related
	310	+	peripherals and telephone, telegraph o r telecommunications service
	311	+	and equipment for use in a qualified aircraft maintenance or
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318		-	SB213 HFLR Page 7
319		-	BOLD FACE denotes Committee Amendments. 1
	313	+	ENGR. S. B. NO. 213 Page 7 1
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344		-	16. Sales of computers, data processing equipment, related
345		-	peripherals and telephone, telegraph or telecommunications service
346		-	and equipment for use in a qualified aircraft maintenance or
347	338		manufacturing facility. For purposes of this paragraph, “qualified
348	339		aircraft maintenance or manufacturin g facility” means a new or
349	340		expanding facility primarily engage d in aircraft repair, building or
350	341		rebuilding whether or not on a factory basis, whose total cost of
351	342		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
352	343		and which employs at leas t two hundred fifty (250) new full-time-
353	344		equivalent employees, as certified by the Oklahoma Employment
354	345		Security Commission, upon completion of the facility. In order to
355	346		qualify for the exemp tion provided for by this paragraph, the cost
356	347		of the items purchas ed by the qualified aircraft maintenance or
357	348		manufacturing facility shall equal or exceed the sum of Two Million
358	349		Dollars ($2,000,000.00);
359	350		17. Sales of tangible personal property consumed or
360	351		incorporated in the construction or expansion of a qualified
361	352		aircraft maintenance or manufacturing facility as defined in
362	353		paragraph 16 of this section. For purposes of this paragraph, sales
363	354		made to a contractor or subcontractor that has previously entered
364	355		into a contractual relationship with a qualified aircraft
365	356		maintenance or manufacturing facility for construction or expansion
366	357		of such a facility shall be considered sales made to a qualified
367	358		aircraft maintenance or manufacturing facility;
	359	+	18. Sales of the following telecommunications services:
	360	+	a. Interstate and Interna tional “800 service”. “800
	361	+	service” means a “telecommunications service” that
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369		-	SB213 HFLR Page 8
370		-	BOLD FACE denotes Committee Amendments. 1
	363	+	ENGR. S. B. NO. 213 Page 8 1
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395		-	18. Sales of the fol lowing telecommunications services:
396		-	a. Interstate and International “800 service”. “800
397		-	service” means a “telecommunications service ” that
398	388		allows a caller to dial a toll -free number without
399	389		incurring a charge for the call. The service is
400	390		typically marketed under the name “800”, “855”, “866”,
401	391		“877”, and “888” toll-free calling, and any subsequent
402	392		numbers designated by the Fed eral Communications
403	393		Commission, or
404	394		b. Interstate and International “900 service”. “900
405	395		service” means an inbound toll “telecommunications
406	396		service” purchased by a subscriber that allows the
407	397		subscriber’s customers to call in to the subscriber ’s
408	398		prerecorded announcement or live service. “900
409	399		service” does not include the charge for: collection
410	400		services provided by the seller of the
411	401		“telecommunications services” to the subscriber, or
412	402		service or product sold by the subscriber to the
413	403		subscriber’s customer. The service is typically
414	404		marketed under the name “900 service”, and any
415	405		subsequent numbers designated by the Federal
416	406		Communications Commission,
417	407		c. Interstate and International “private communicatio ns
418	408		service”. “Private communications service ” means a
	409	+	“telecommunications service” that entitles the
	410	+	customer to exclusive or priority use of a
	411	+	communications channel or group of channels b etween or
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420		-	SB213 HFLR Page 9
421		-	BOLD FACE denotes Committee Amendments. 1
	413	+	ENGR. S. B. NO. 213 Page 9 1
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446		-	“telecommunications service ” that entitles the
447		-	customer to exclusive or priority use of a
448		-	communications channel or group of channels betwee n or
449	438		among termination points, regardless of the manner in
450	439		which such channel or channels are connected, and
451	440		includes switching capacity, extension lines,
452	441		stations, and any other associated services that are
453	442		provided in connection with the use of such channel or
454	443		channels,
455	444		d. “Value-added nonvoice data service ”. “Value-added
456	445		nonvoice data service” means a service that otherwis e
457	446		meets the definition of “telecommunications services ”
458	447		in which computer processing applications are used to
459	448		act on the form, content, code, or protocol of the
460	449		information or data primarily for a purpose other than
461	450		transmission, conveyance or routing,
462	451		e. Interstate and International telecommunications
463	452		service which is:
464	453		(1) rendered by a company for private use within its
465	454		organization, or
466	455		(2) used, allocated, or distributed by a company to
467	456		its affiliated group,
468	457		f. Regulatory assessments and charges, includi ng charges
469	458		to fund the Oklahoma Universal Service Fund, the
	459	+	Oklahoma Lifeline Fund and the Oklahoma High Cost
	460	+	Fund, and
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471		-	SB213 HFLR Page 10
472		-	BOLD FACE denotes Committee Amendments. 1
	462	+	ENGR. S. B. NO. 213 Page 10 1
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497		-	Oklahoma Lifeline Fund and the Oklahoma High Cost
498		-	Fund, and
499	487		g. Telecommunications nonrecurring charges, including but
500	488		not limited to the installation, connection, change or
501	489		initiation of telecommu nications services which are
502	490		not associated with a retail consumer sale;
503	491		19. Sales of railroad track spikes manufactured and so ld for
504	492		use in this state in the construction or repair of railroad tracks,
505	493		switches, sidings and turnouts;
506	494		20. Sales of aircraf t and aircraft parts provided such sales
507	495		occur at a qualified aircraft maintenance facility. As used in this
508	496		paragraph, “qualified aircraft maintenance facility” means a
509	497		facility operated by an air common carrier, including one or more
510	498		component overhaul support buildings or structures in an area owned,
511	499		leased or controlled by the air common carrier, at which there were
512	500		employed at least two thousand (2,000) full-time-equivalent
513	501		employees in the preceding year as certified by the Oklahoma
514	502		Employment Security Commission and which is primarily related to the
515	503		fabrication, repair, alteration, modification, refurbishing,
516	504		maintenance, building or rebuilding of commercial aircraft or
517	505		aircraft parts used in air common carriage. For purposes of this
518	506		paragraph, “air common carrier” shall also include members of an
519	507		affiliated group as defined by Section 1504 of the Internal Revenue
520	508		Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
	509	+	machinery, tools, supplies, equipment and related tangible personal
	510	+	property and services used or consumed in the repair, remodeling or
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522		-	SB213 HFLR Page 11
523		-	BOLD FACE denotes Committee Amendments. 1
	512	+	ENGR. S. B. NO. 213 Page 11 1
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548		-	machinery, tools, supplies, equipment and related tangible personal
549		-	property and services used or consumed in the repair, remodeling or
550	537		maintenance of aircraft, aircraft engines, or aircraft component
551	538		parts which occur at a qualified aircraft maintenance facility;
552	539		21. Sales of machinery and equipment purchased and used by
553	540		persons and establishments primarily engaged in computer services
554	541		and data processing:
555	542		a. as defined under Industrial Group Numbers 7372 and
556	543		7373 of the Standard Industrial Classification (SIC)
557	544		Manual, latest version, which derive at least fifty
558	545		percent (50%) of their annual gross revenues from the
559	546		sale of a product or service to an out -of-state buyer
560	547		or consumer, and
561	548		b. as defined under Industrial Group Number 7374 of the
562	549		SIC Manual, latest version, which derive at least
563	550		eighty percent (80%) of their annual gr oss revenues
564	551		from the sale of a product or service to an out -of-
565	552		state buyer or consumer.
566	553		Eligibility for the exemption set out i n this paragraph shall be
567	554		established, subject to review by the Ta x Commission, by annually
568	555		filing an affidavit with the Tax Com mission stating that the
569	556		facility so qualifies and such information as required by the Tax
570	557		Commission. For purposes of determin ing whether annual gross
571	558		revenues are derived from sales to out -of-state buyers or consumers,
	559	+	all sales to the federal governmen t shall be considered to be to an
	560	+	out-of-state buyer or consumer;
572	561
573		-	SB213 HFLR Page 12
574		-	BOLD FACE denotes Committee Amendments. 1
	562	+	ENGR. S. B. NO. 213 Page 12 1
575	563		2
576	564		3
577	565		4
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579	567		6
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593	581		20
594	582		21
595	583		22
596	584		23
597	585		24
598	586
599		-	all sales to the federal government shall be considered to be to an
600		-	out-of-state buyer or consumer;
601	587		22. Sales of prosthetic devices to an individual for use by
602	588		such individual. For purposes of this paragraph, “prosthetic
603	589		device” shall have the same meaning as provided in Section 1357.6 o f
604	590		this title, but shall not include corrective eye glasses, contact
605	591		lenses or hearing aids;
606	592		23. Sales of tangible personal prop erty or services to a motion
607	593		picture or television production comp any to be used or consumed in
608	594		connection with an eligible prod uction. For purposes of this
609	595		paragraph, “eligible production” means a documentary, special, music
610	596		video, or a television commer cial or television program that will
611	597		serve as a pilot for or be a segment of an ongoing dramatic or
612	598		situation comedy series film ed or taped for network or national or
613	599		regional syndication or a feature -length motion picture intended for
614	600		theatrical release o r for network or national or regional
615	601		syndication or broadcast. T he provisions of this paragraph shall
616	602		apply to sales occurring on or after July 1, 1996. In order to
617	603		qualify for the exemption, the motion picture or television
618	604		production company shall fil e any documentation and information
619	605		required to be submitted pursu ant to rules promulgated by the Tax
620	606		Commission;
621	607		24. Sales of diesel fuel sold for consumption by commercial
622	608		vessels, barges and other commercial watercraft;
	609	+	25. Sales of tangible personal property or services to tax-
	610	+	exempt independent nonprofit biomedica l research foundations that
623	611
624		-	SB213 HFLR Page 13
625		-	BOLD FACE denotes Committee Amendments. 1
	612	+	ENGR. S. B. NO. 213 Page 13 1
626	613		2
627	614		3
628	615		4
629	616		5
630	617		6
631	618		7
632	619		8
633	620		9
634	621		10
635	622		11
636	623		12
637	624		13
638	625		14
639	626		15
640	627		16
641	628		17
642	629		18
643	630		19
644	631		20
645	632		21
646	633		22
647	634		23
648	635		24
649	636
650		-	25. Sales of tangible personal prope rty or services to tax -
651		-	exempt independent nonprofit biomedical research foundations that
652	637		provide educational programs for O klahoma science students and
653	638		teachers and to tax-exempt independent nonprofit community blood
654	639		banks headquartered in this state;
655	640		26. Effective May 6, 1992, sales of wireless telecommunications
656	641		equipment to a vendor who subsequently transfers the equipment at no
657	642		charge or for a discounted charge to a consumer as part of a
658	643		promotional package or as an inducement to commence or conti nue a
659	644		contract for wireless telecommunications services;
660	645		27. Effective January 1, 1991, leases of rail transportation
661	646		cars to haul coal to coal-fired plants located in this state which
662	647		generate electric power;
663	648		28. Beginning July 1, 2005, sales of aircraf t engine repairs,
664	649		modification, and replacement parts, sales of ai rcraft frame repairs
665	650		and modification, aircraft interior modif ication, and paint, and
666	651		sales of services employed in the repair, modification and
667	652		replacement of parts of aircraft engines, air craft frame and
668	653		interior repair and modification, and paint;
669	654		29. Sales of materials and supplies to the owner or operator of
670	655		a ship, motor vessel or barge that is used in interstate or
671	656		international commerce if the materials and supplies:
	657	+	a. are loaded on the ship, motor vessel or barge and used
	658	+	in the maintenance and o peration of the ship, motor
	659	+	vessel or barge, or
672	660
673		-	SB213 HFLR Page 14
674		-	BOLD FACE denotes Committee Amendments. 1
	661	+	ENGR. S. B. NO. 213 Page 14 1
675	662		2
676	663		3
677	664		4
678	665		5
679	666		6
680	667		7
681	668		8
682	669		9
683	670		10
684	671		11
685	672		12
686	673		13
687	674		14
688	675		15
689	676		16
690	677		17
691	678		18
692	679		19
693	680		20
694	681		21
695	682		22
696	683		23
697	684		24
698	685
699		-	a. are loaded on the ship, motor vessel or barge and used
700		-	in the maintenance and operation of the ship, motor
701		-	vessel or barge, or
702	686		b. enter into and become component parts of the ship,
703	687		motor vessel or barge;
704	688		30. Sales of tangible personal property made at estate sales at
705	689		which such property is offered for sale on the premises of the
706	690		former residence of the decedent by a person who is not required to
707	691		be licensed pursuant to the Transient Merchant Licensing Act, or who
708	692		is not otherwise required to obtain a sales tax permit f or the sale
709	693		of such property pursuant to the provisions of Section 1364 of this
710	694		title; provided:
711	695		a. such sale or event may not b e held for a period
712	696		exceeding three (3) consecutive days,
713	697		b. the sale must be conducted within six (6) months of
714	698		the date of death of the decedent, and
715	699		c. the exemption allowed by this paragraph shall not be
716	700		allowed for property that was not part of the
717	701		decedent’s estate;
718	702		31. Beginning January 1, 2004, sales of electricity and
719	703		associated delivery and transmission services, when so ld exclusively
720	704		for use by an oil and gas operator for reservoir de watering projects
721	705		and associated operations commencing on or a fter July 1, 2003, in
722	706		which the initial water -to-oil ratio is greater than or equal to
	707	+	five-to-one water-to-oil, and such oil an d gas development projects
	708	+	have been classified by the Corporation Commission as a reservoir
	709	+	dewatering unit;
723	710
724		-	SB213 HFLR Page 15
725		-	BOLD FACE denotes Committee Amendments. 1
	711	+	ENGR. S. B. NO. 213 Page 15 1
726	712		2
727	713		3
728	714		4
729	715		5
730	716		6
731	717		7
732	718		8
733	719		9
734	720		10
735	721		11
736	722		12
737	723		13
738	724		14
739	725		15
740	726		16
741	727		17
742	728		18
743	729		19
744	730		20
745	731		21
746	732		22
747	733		23
748	734		24
749	735
750		-	five-to-one water-to-oil, and such oil and gas development projects
751		-	have been classified by the Corporation Commission as a reservoir
752		-	dewatering unit;
753	736		32. Sales of prewritten computer software that is delivered
754	737		electronically. For purposes of this paragraph, “delivered
755	738		electronically” means delivered to the purchaser by means other than
756	739		tangible storage media ;
757	740		33. Sales of modular dwelling units when built at a product ion
758	741		facility and moved in whole or in parts, to be assembled on -site,
759	742		and permanently affixed to the real property and used for
760	743		residential or commercial purposes. The exemption provided by thi s
761	744		paragraph shall equal forty-five percent (45%) of the total sales
762	745		price of the modular dwelling unit. For purposes of this paragraph,
763	746		“modular dwelling unit ” means a structure that is not subject to the
764	747		motor vehicle excise tax imposed pursuant to Secti on 2103 of this
765	748		title;
766	749		34. Sales of tangible personal propert y or services to:
767	750		a. persons who are residents of Oklahoma and have been
768	751		honorably discharged from active service in any branch
769	752		of the Armed Forces of the United States or Oklahoma
770	753		National Guard and who have been certified by the
771	754		United States Department of Veterans Affairs or its
772	755		successor to be in receipt of disability compensation
773	756		at the one-hundred-percent rate and the disabil ity
	757	+	shall be permanent and have been sustained through
	758	+	military action or accident or resulting from disease
	759	+	contracted while in such active service and registered
774	760
775		-	SB213 HFLR Page 16
776		-	BOLD FACE denotes Committee Amendments. 1
	761	+	ENGR. S. B. NO. 213 Page 16 1
777	762		2
778	763		3
779	764		4
780	765		5
781	766		6
782	767		7
783	768		8
784	769		9
785	770		10
786	771		11
787	772		12
788	773		13
789	774		14
790	775		15
791	776		16
792	777		17
793	778		18
794	779		19
795	780		20
796	781		21
797	782		22
798	783		23
799	784		24
800	785
801		-	shall be permanent and have been sustained through
802		-	military action or accident or resulting from disease
803		-	contracted while in such active service and registered
804	786		with the veterans registry created by the Oklahoma
805	787		Department of Veterans Affairs; provided, that if the
806	788		veteran has previously received the sales tax
807	789		exemption pursuant to this subparagraph, no
808	790		registration with the vet erans registry shall be
809	791		required, or
810	792		b. the surviving spouse of the person in subparagraph a
811	793		of this paragraph if the person is deceased and the
812	794		spouse has not remarried. Sales for the benefit of an
813	795		eligible person to a spouse of the eligible person or
814	796		to a member of the household in which the eligible
815	797		person resides and who is authorized to make purchases
816	798		on the person’s behalf, when such eligible person is
817	799		not present at the sale, shall also b e exempt for
818	800		purposes of this paragraph. The Oklahoma Tax
819	801		Commission shall issue a separate exemption card to a
820	802		spouse of an eligible person or to a member of the
821	803		household in which the eli gible person resides who is
822	804		authorized to make purchases on the pe rson’s behalf,
823	805		if requested by the eligible person. Sales qua lifying
824	806		for the exemption authorized by this paragraph shall
	807	+	not exceed Twenty-five Thousand Dollars ($25,000.00)
	808	+	per year per individual while the disabled veteran is
	809	+	living. Sales qualifying for the exemption authorized
825	810
826		-	SB213 HFLR Page 17
827		-	BOLD FACE denotes Committee Amendments. 1
	811	+	ENGR. S. B. NO. 213 Page 17 1
828	812		2
829	813		3
830	814		4
831	815		5
832	816		6
833	817		7
834	818		8
835	819		9
836	820		10
837	821		11
838	822		12
839	823		13
840	824		14
841	825		15
842	826		16
843	827		17
844	828		18
845	829		19
846	830		20
847	831		21
848	832		22
849	833		23
850	834		24
851	835
852		-	not exceed Twenty-five Thousand Dollars ($25,000.00)
853		-	per year per individual while the disabled veteran is
854		-	living. Sales qualifying for the exemption authorized
855	836		by this paragraph shall not excee d One Thousand
856	837		Dollars ($1,000.00) per year for an unremarried
857	838		surviving spouse. Upon request of the Tax Commission,
858	839		a person asserting or claiming the exemption
859	840		authorized by this paragraph sh all provide a
860	841		statement, executed under oath, that the total s ales
861	842		amounts for which the exemption is applicable have not
862	843		exceeded Twenty-five Thousand Dollars ($25,000.00) per
863	844		year per living disabled veteran or One Thousand
864	845		Dollars ($1,000.00) per year f or an unremarried
865	846		surviving spouse. If the amount of such exe mpt sales
866	847		exceeds such amount, the sales tax in excess of the
867	848		authorized amount shall be treated as a direct sales
868	849		tax liability and may be recovered by the Tax
869	850		Commission in the same manner pro vided by law for
870	851		other taxes, including penalty and interest. The Tax
871	852		Commission shall promulgate any rules necessary to
872	853		implement the provisions of this section;
873	854		35. Sales of electricity to the operator, specifically
874	855		designated by the Corporation Commis sion, of a spacing unit or lease
875	856		from which oil is produced or attempted to be produced using
	857	+	enhanced recovery methods, including, but not limited to, increased
	858	+	pressure in a producing form ation through the use of water or
	859	+	saltwater if the electrical usag e is associated with and necessary
876	860
877		-	SB213 HFLR Page 18
878		-	BOLD FACE denotes Committee Amendments. 1
	861	+	ENGR. S. B. NO. 213 Page 18 1
879	862		2
880	863		3
881	864		4
882	865		5
883	866		6
884	867		7
885	868		8
886	869		9
887	870		10
888	871		11
889	872		12
890	873		13
891	874		14
892	875		15
893	876		16
894	877		17
895	878		18
896	879		19
897	880		20
898	881		21
899	882		22
900	883		23
901	884		24
902	885
903		-	enhanced recovery methods, including, but not limited to, increased
904		-	pressure in a producing formation through the use of water or
905		-	saltwater if the electrical usage is associated with and necessary
906	886		for the operation of equipm ent required to inject or circulate
907	887		fluids in a producing formation for the purpose of forcing oil or
908	888		petroleum into a wellbore for eventual recovery and production from
909	889		the wellhead. In order to be eligible for the sales tax exemption
910	890		authorized by this paragraph, the total content of oil recovered
911	891		after the use of enhanced recovery methods shall not exceed one
912	892		percent (1%) by volume. The exemption authorized by this paragraph
913	893		shall be applicable only to the state sales tax rate and shall not
914	894		be applicable to any county or municipal sales tax rate;
915	895		36. Sales of intrastate charter and tour bus transportation.
916	896		As used in this paragraph, “intrastate charter and tour bus
917	897		transportation” means the transportation of persons from one
918	898		location in this state to another location in this state in a motor
919	899		vehicle which has been constructed in such a manner that it may
920	900		lawfully carry more th an eighteen persons, and which is ordinarily
921	901		used or rented to car ry persons for compensation. Provided, this
922	902		exemption shall not apply to regularly scheduled bus transportation
923	903		for the general public;
924	904		37. Sales of vitamins, minerals and dietary suppleme nts by a
925	905		licensed chiropractor to a person who is the patient of s uch
926	906		chiropractor at the physical location where the chiropract or
	907	+	provides chiropractic care or services to such patient. The
	908	+	provisions of this paragraph shall not be applicable to any drug ,
927	909
928		-	SB213 HFLR Page 19
929		-	BOLD FACE denotes Committee Amendments. 1
	910	+	ENGR. S. B. NO. 213 Page 19 1
930	911		2
931	912		3
932	913		4
933	914		5
934	915		6
935	916		7
936	917		8
937	918		9
938	919		10
939	920		11
940	921		12
941	922		13
942	923		14
943	924		15
944	925		16
945	926		17
946	927		18
947	928		19
948	929		20
949	930		21
950	931		22
951	932		23
952	933		24
953	934
954		-	provides chiropractic care or services to such patient. The
955		-	provisions of this paragraph shall not be applicable to any drug,
956	935		medicine or substance for which a prescription by a licensed
957	936		physician is required;
958	937		38. Sales of goods, wares, merchandise, t angible personal
959	938		property, machinery and equipment to a web search portal located in
960	939		this state which derives at least eighty pe rcent (80%) of its annual
961	940		gross revenue from the sale of a product or service to an out-of-
962	941		state buyer or consumer. For purpose s of this paragraph, “web
963	942		search portal” means an establishment classified under NAICS code
964	943		519130 which operates websites that use a search engine to generate
965	944		and maintain extensive databases o f Internet addresses and content
966	945		in an easily searchable forma t;
967	946		39. Sales of tangible personal property consumed or
968	947		incorporated in the construction or expansion of a facility for a
969	948		corporation organized under Section 437 et seq. of Title 18 of the
970	949		Oklahoma Statutes as a rural electric cooperative. For purposes of
971	950		this paragraph, sales made to a contractor or subcontractor that has
972	951		previously entered into a contractual relationship with a rural
973	952		electric cooperative for construction or expansion of a faci lity
974	953		shall be considered sales made to a rural electric cooper ative;
975	954		40. Sales of tangible personal property or services to a
976	955		business primarily engaged in the repair of consumer electronic
977	956		goods, including, but not limited to, cell phones, compact disc
	957	+	players, personal computers, MP3 players, digital devices for t he
	958	+	storage and retrieval of information through hard -wired or wireless
978	959
979		-	SB213 HFLR Page 20
980		-	BOLD FACE denotes Committee Amendments. 1
	960	+	ENGR. S. B. NO. 213 Page 20 1
981	961		2
982	962		3
983	963		4
984	964		5
985	965		6
986	966		7
987	967		8
988	968		9
989	969		10
990	970		11
991	971		12
992	972		13
993	973		14
994	974		15
995	975		16
996	976		17
997	977		18
998	978		19
999	979		20
1000	980		21
1001	981		22
1002	982		23
1003	983		24
1004	984
1005		-	players, personal computers, MP3 players, digital devices for the
1006		-	storage and retrieval of information through hard -wired or wireless
1007	985		computer or Internet connections, if the devices are sold to the
1008	986		business by the original manufacturer of such devices and the
1009	987		devices are repaired, refitted or refurbished for sale by the entity
1010	988		qualifying for the exemption authorized by this paragraph directly
1011	989		to retail consumers or if the devices are sold to another business
1012	990		entity for sale to retail consumers;
1013	991		41. Before July 1, 2019, sales of rolling stock when sold or
1014	992		leased by the manufacturer, regardless of whether the purchaser is a
1015	993		public services corporation engaged in business as a common carrier
1016	994		of property or passengers by railway, for use or consumption by a
1017	995		common carrier directly in the rendition of public service. For
1018	996		purposes of this paragraph, “rolling stock” means locomotives,
1019	997		autocars and railroad cars; and
1020	998		42. Sales of gold, silver, plati num, palladium or other bullion
1021	999		items such as coins and bars and l egal tender of any nation, which
1022	1000		legal tender is sold accordin g to its value as precious metal or as
1023	1001		an investment. As used in the paragraph, “bullion” means any
1024	1002		precious metal, including, but not limited to, gold, silver,
1025	1003		platinum and palladium, that is in such a state or condition that
1026	1004		its value depends upon its p recious metal content and not its form.
1027	1005		The exemption authorized by this paragraph shall not apply to
	1006	+	fabricated metals that ha ve been processed or manufactured for
	1007	+	artistic use or as jewelry ; and
1028	1008
1029		-	SB213 HFLR Page 21
1030		-	BOLD FACE denotes Committee Amendments. 1
	1009	+	ENGR. S. B. NO. 213 Page 21 1
1031	1010		2
1032	1011		3
1033	1012		4
1034	1013		5
1035	1014		6
1036	1015		7
1037	1016		8
1038	1017		9
1039	1018		10
1040	1019		11
1041	1020		12
1042	1021		13
1043	1022		14
1044	1023		15
1045	1024		16
1046	1025		17
1047	1026		18
1048	1027		19
1049	1028		20
1050	1029		21
1051	1030		22
1052	1031		23
1053	1032		24
1054	1033
1055		-	fabricated metals that have be en processed or manufactured for
1056		-	artistic use or as jewelry ; and
1057	1034		43. For tax years 2022 through 2027, sales of commercial
1058	1035		forestry service equipment, limited to forwarders, feller bunchers,
1059	1036		track skidders, wheeled skidders, hyd raulic excavators, delimbers,
1060	1037		soil compactors and sk id steer loaders, to businesses engag ed in
1061	1038		logging, timber and tree farming.
1062	1039		SECTION 2. This act shall become effective November 1, 2021.
	1040	+	Passed the Senate the 2nd day of March, 2021.
1063	1041
1064		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
1065		-	04/08/2021 - DO PASS, As Amended.
	1042	+
	1043	+
	1044	+	Presiding Officer of the Senate
	1045	+
	1046	+
	1047	+	Passed the House of Representatives the ____ day of __________,
	1048	+	2021.
	1049	+
	1050	+
	1051	+
	1052	+	Presiding Officer of the House
	1053	+	of Representatives
	1054	+