An Act
ENROLLED SENATE
BILL NO. 236 By: Standridge of the Senate
and
Rosecrants of the House
An Act relating to sales tax exemption; amending 68
O.S. 2011, Section 1356, as la st amended by Section 1
of Enrolled House Bill No. 1935 of the 1st Session of
the 58th Oklahoma Legislature, which relates to
exemptions; exempting certain sales to organization
involved in specifie d philanthropic program; and
providing an effective date.
SUBJECT: Sales tax exemption
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 1356, as
last amended by Section 1 of Enrolled House Bill No. 1935 of the 1st
Session of the 58th Oklahoma Legislature , is amended to read as
follows:
Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or serv ices to the United
States government or to the State of Okla homa, any political
subdivision of this state or any agency of a political subdivision
of this state; provided, all sales to contractors in connection with
the performance of any contract with the United States govern ment,
State of Oklahoma or any of its p olitical subdivisions shall not be
ENR. S. B. NO. 236 Page 2
exempted from the tax levied by Section 1350 et seq. of this title,
except as hereinafter provided;
2. Sales of property to agents appointed by or under contrac t
with agencies or instrumentalities of the United States go vernment
if ownership and possession of such property transfers immediately
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdivi sion of this state if the sale of such
property is associate d with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivisi on or the state;
4. Sales made directl y by county, district or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fa ir events at any loca tion in the state
authorized by county, district or state fair a uthorities; provided,
the exemption provided by this paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority. As used
in this paragraph, “fair event” shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district or state fair;
5. Sale of food in cafeterias or lunc h rooms of elementary
schools, high schools, colleges or univer sities which are operated
primarily for teachers and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, chari table or
educational societies or organizations by regular m embers thereof,
provided, such societies or organizations operate under what is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit w hich inures
to the benefit of any individual member or membe rs thereof to the
exclusion of other members and dues paid monthly or annually to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libra ries with students
ENR. S. B. NO. 236 Page 3
interested in the study of geology, petro leum engineering or rel ated
subjects;
7. Sale of tangible personal property or services to or by
churches, except sales made in the course of business for profit or
savings, competing with other persons engaged in th e same or a
similar business or sale o f tangible personal pro perty or services
by an organization exempt from federal income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
made on behalf of or at th e request of a church or churches if the
sale of such property is conducted not mo re than once each calendar
year for a period not to exceed three (3) days by the organization
and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable purposes;
8. The amount of proceeds received from the sale of admission
tickets which is separately stated on the ticket of admission for
the repayment of money borrowed by any accredited state -supported
college or university or any public trust of which a county in this
state is the beneficiary, f or the purpose of constructing or
enlarging any facility to be used for the staging of an athletic
event, a theatrical production, or any other form of entertainment,
edification or cultural culti vation to which entry is gained with a
paid admission ticket . Such facilities include, but are not limited
to, athletic fields, athletic stadiums, field houses, amphitheaters
and theaters. To be eligible for this sales tax exemption, the
amount separately stated on the admission ticket shal l be a
surcharge which is imposed, collected and used for the sole purpose
of servicing or aiding in the servicing of debt incurred by the
college or university to effect the capital improvements
hereinbefore described;
9. Sales of tangible personal prop erty or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of America, Girl Scouts of U.S.A. and Camp Fire USA;
10. Sale of tangible personal property or services to any
county, municipality, rural water di strict, public school district,
city-county library system, the institutions of The Oklahoma State
System of Higher Education, the Grand River Dam Authority, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, City of Tulsa-Rogers County Port
ENR. S. B. NO. 236 Page 4
Authority, Muskogee City-County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic Development
Authority, Ardmore Development Authority, Durant Industrial
Authority, Oklahoma Ordnance Work s Authority, Central Oklahoma
Master Conservancy District, Arbuckle Master Conservancy District,
Fort Cobb Master Conservancy District, Foss Reservoir Master
Conservancy District, Mountain Park Master Conservancy District,
Waurika Lake Master Conservancy D istrict, University Hospitals Trust
and the Office of Management and Enter prise Services only when
carrying out a public construction contract on behalf of the
Oklahoma Department of Veterans Affairs or to any person with whom
any of the above-named subdivisions or agencies of this state has
duly entered into a public contract p ursuant to law, necessary for
carrying out such public contract or to any subcontractor to such a
public contract. Any person making purchases on behalf of such
subdivision or agency of th is state shall certify, in writing, on
the copy of the invoice or s ales ticket to be retained by the ve ndor
that the purchases are made for and on behalf of such subdivision or
agency of this state and set out the name of such public subdivision
or agency. Any person who wrongfully or erroneously certifies that
purchases are for any of the above -named subdivisions or agencies of
this state or who otherwise violates this section shall be guilty of
a misdemeanor and upon conviction thereof shall be fined an amount
equal to double the amount of sales tax involved or incarcer ated for
not more than sixty (60) da ys or both;
11. Sales of tangible personal property or services to private
institutions of higher education and private elementary and
secondary institutions of education accredited by the State
Department of Education or registered by the State Board of
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma State Regents for Higher
Education which are exempt from taxation pursuant to the provisions
of the Internal Revenue Co de, 26 U.S.C., Section 501(c)(3) including
materials, supplies and equipment used in the construction and
improvement of buildings and other structures owned by the
institutions and operat ed for educational purposes.
Any person, firm, agency or entity ma king purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the copy of the invoice or sales ticket the nature of
ENR. S. B. NO. 236 Page 5
the purchases, and viola tion of this paragraph shall be a
misdemeanor as set forth in parag raph 10 of this section;
12. Tuition and educational fees paid to private institutions
of higher education and private elementary and secondary
institutions of education accredited by the State Department of
Education or registered by the State Board of E ducation for purposes
of participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which are exempt from
taxation pursuant to the provis ions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal prope rty made by:
(1) a public school,
(2) a private school offering instruction for grade
levels kindergarten through twelfth grade,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student group or
organization,
(6) a parent-teacher association or organization
other than as specified in subparagraph b of this
paragraph, or
(7) public or private school personnel for purposes
of raising funds for the benefit of a public or
private school, public school distr ict, public or
private school board or public or private school
student group or organization, or
b. Sales of tangible personal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions o f the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
ENR. S. B. NO. 236 Page 6
which solicit money or property in th e name of any
public or private school or public school district.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to those public or private
schools accredited by the State Department of Education or
registered by the State Board of Education for purposes of
participating in federal programs. Sale of tang ible personal
property in this paragrap h shall include sale of admission tickets
and concessions at athletic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional or state 4-H councils,
c. county, regional or stat e 4-H committees,
d. 4-H leader association s,
e. county, regional or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragraph shall be limited to
sales for the purpose of rai sing funds for the be nefit of such
organizations. Sale of tangible personal property exempted by this
paragraph shall include sale of admission tickets;
15. The first Seventy-five Thousand Dollars ($75,000.00) each
year from sale of tickets and concessio ns at athletic events by each
organization exempt from taxation purs uant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklahoma Tourism and Rec reation Department has
entered into a public contract and which is n ecessary for carrying
out such contract to assist the Department in the development and
production of advertising, promotio n, publicity and public re lations
programs;
ENR. S. B. NO. 236 Page 7
17. Sales of tangibl e personal property or services to fire
departments organized pursua nt to Section 592 of Title 18 of the
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person making purchas es on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales tic ket to be retained by the vendor that the
purchases are made for and on behalf of such fire departm ent and set
out the name of such fire department. Any person who wrongfully or
erroneously certifies that the purchases are for any such fire
department or who otherwise violates the provisions of this section
shall be deemed guilty of a misdemeanor and u pon conviction thereof,
shall be fined an amount e qual to double the amount of sales tax
involved or incarcerated for not more than sixty (60) days, or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, e xhibition, display or o ther
recreational events or activities which are issued through a b ox
office or other entity which is operated by a state institution o f
higher education with institutional employees or by a municipality
with municipal employees;
19. The first Fifteen Th ousand Dollars ($15,000.00) e ach year
from sales of tangible persona l property by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of the fire
department. Fire departmen ts selling tangible personal property for
the purposes of raising fu nds shall be limited to no more than six
(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal property or se rvices to any Boys
& Girls Clubs of America affiliate in this state w hich is not
affiliated with the Salvation Army and which is exempt f rom taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or servi ces to any
organization, which takes co urt-adjudicated juveniles for purposes
of rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Sec tion
501(c)(3), provided that at least fifty percent ( 50%) of the
juveniles served by such or ganization are court adjudicated and the
ENR. S. B. NO. 236 Page 8
organization receives state funds in an amount less than ten percent
(10%) of the annual budget of the organization;
22. Sales of tangible pers onal property or services to:
a. any health center as defined in Sectio n 254b of Title
42 of the United States Code,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revolving Fund pursuant
to the provisions of Section 66 of Title 56 of the
Oklahoma Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) is exempt from taxation pursuant to t he
provisions of Sectio n 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes;
23. Dues or fees including free or complimentary dues or fees
which have a value equivalent to the charge that could have
otherwise been made, to YMC As, YWCAs or municipally-owned recreation
centers for the use of fac ilities and programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible pe rsonal property or services to or by a
cultural organization established to sp onsor and promote
educational, charitable and cultural events for di sadvantaged
children, and which organization is exempt from taxation pursuant to
the provisions of the Interna l Revenue Code, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible personal property or services to museums
or other entities which have been ac credited by the American
Association of Museums. Any person making purchases on behal f of
ENR. S. B. NO. 236 Page 9
any such museum or other entity shall certify, in writing, on the
copy of the invoice or sales ti cket to be retained by the vendor
that the purchases are made for an d on behalf of such museum or
other entity and set out the name of such museum or othe r entity.
Any person who wrongfully or erroneously certifies t hat the
purchases are for any such muse um or other entity or who otherwise
violates the provisions of this paragraph shall be deemed guilty of
a misdemeanor and, upon conviction thereof, shall be fined an amount
equal to double the amount of sales tax invo lved or incarcerated for
not more than sixty (60) days, or by both such fine and
incarceration;
26. Sales of tickets for admission by any museum accredited by
the American Association of Muse ums. In order to be el igible for
the exemption provided by this paragraph, an amount equivalent to
the amount of the tax which would otherwise be required to be
collected pursuant to the provisions of Section 1350 et seq. of this
title shall be separately stated on the admissio n ticket and shall
be collected and used for the sole purpose of servicing or ai ding in
the servicing of debt incurred by the museum to effect the
construction, enlarging or renovation of any facility to be used for
entertainment, edification or cultural c ultivation to which entry is
gained with a paid admission ticket;
27. Sales of tangible personal property or services occurring
on or after June 1, 1995, to children’s homes which are supported or
sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Departmen t of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible pers onal property or servic es to youth
camps which are supported or spo nsored by one or more churches,
members of which serve as trustees of the organization;
30. Transfer of tangible personal property or services to or
by:
a. the University Hospitals Trust created pursuant to
Section 3224 of Title 63 of the Oklahoma Statutes, or
ENR. S. B. NO. 236 Page 10
b. nonprofit entities which are exempt from ta xation
pursuant to the provisions of the Internal Revenue
Code of the United States, 26 U.S.C., Section
501(c)(3), which have entered i nto a joint operating
agreement with the University Hospitals Trust ;
31. Sales of tangible personal property or services to a
municipality, county or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county or school district. A copy of the lease or
lease-purchase agreement shall be retained by the vendor;
32. Sales of tangible personal property or servic es to any
spaceport user, as def ined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storag e, consumption or distribution in this
state, whether by the importer , exporter or another person, of a ny
satellite or any associated launch ve hicle including components of,
and parts and motors for, any such satellite or launch veh icle,
imported or caused to be imported into this state for the purpos e of
export by means of launching into space. This exem ption provided by
this paragraph shall n ot be affected by:
a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launc h;
34. The sale, lease, use, st orage, consumption or distribution
in this state of any space facility, space propulsion system or
space vehicle, satellite or station of any kind possessing space
flight capacity including components thereof;
35. The sale, lease, use, storage, consump tion or distribution
in this state of tangible personal property, placed on or u sed
aboard any space facility, space propulsion system or space vehi cle,
satellite, or station pos sessing space flight capacity, which is
launched into space, irrespective of whether such tangible property
ENR. S. B. NO. 236 Page 11
is returned to this state for subsequent use, stor age, or
consumption in any manner;
36. The sale, lease, use, storag e, consumption, or distribution
in this state of tangible personal property meeting the definition
of “section 38 property” as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal R evenue Code of 1986, that is an integral
part of and used primarily i n support of space flight; however,
section 38 property used in support of space flight shall not
include general office equipment, any boat, mobile home, motor
vehicle or other vehicle of a class or type required to be
registered, licensed, titled or documented in this state or by the
United States government, or any other pro perty not specifically
suited to supporting space activity. The term “in support of space
flight”, for purposes of this paragraph, means the altering,
monitoring, controlling, regu lating, adjusting, servicing or
repairing of any space facility, space pro pulsion systems or space
vehicle, satellite or station possessing space flight capacity
including the components th ereof;
37. The purchase or lease of machin ery and equipment for use at
a fixed location in this state, which is used exclusively in the
manufacturing, processing, compoun ding or producing of any space
facility, space propulsion sy stem or space vehicle, s atellite or
station of any kind possessing space flight capacit y. Provided, the
exemption provided for in this paragraph shall not be all owed unless
the purchaser or les see signs an affidavit stating that the item or
items to be exempted are for the exclu sive use designated herein.
Any person furnishing a false affi davit to the vendor for the
purpose of evading payment of any tax imposed b y Section 1354 of
this title shall be subject to the penalties provided by law. As
used in this paragraph, “machinery and equipment” means “section 38
property” as defined in Sections 48(a)(1)(A) and (B)(i) of the
Internal Revenue Code of 1986, which is u sed as an integral part of
the manufacturing, processing, compounding or producing of items of
tangible personal prope rty. Such term includes parts and
accessories only to the ext ent that the exemption thereof is
consistent with the provisions of this pa ragraph;
38. The amount of a su rcharge or any other amount which is
separately stated on an a dmission ticket which is imposed, collected
and used for the sole purpose of constructi ng, remodeling or
ENR. S. B. NO. 236 Page 12
enlarging facilities of a public trust having a municipal ity or
county as its sole benefi ciary;
39. Sales of tangible personal property or services w hich are
directly used in or for the benefit of a state park in thi s state,
which are made to an organization which is exempt from taxation
pursuant to the provisi ons of the Internal Revenue Code , 26 U.S.C.,
Section 501(c)(3) and which is organized primari ly for the purpose
of supporting one or more state parks located in this state;
40. The sale, lease or use of parking privileges by an
institution of The Oklahoma State System of Higher Educatio n;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Okla homa State System of Higher Education,
private institutions of higher educa tion accredited by the Oklahoma
State Regents for Higher Education or any public school or school
district when such projects are financed by or through the use of
nonprofit entities which are exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Sectio n
501(c)(3);
42. Sales of tangible personal property or s ervices by an
organization which is exempt from taxation pursuant to t he
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), in the course of condu cting a national championship
sports event, but only if all or a portion of the payment in
exchange therefor would qualify as the receipt of a qualified
sponsorship payment describe d in Internal Revenue Code, 26 U.S.C.,
Section 513(i). Sales exempted purs uant to this paragraph shall be
exempt from all Oklahoma sales, use, excise and gross rece ipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Sectio n
501(c)(3),
ENR. S. B. NO. 236 Page 13
b. is affiliated with a comprehensive univ ersity within
The Oklahoma State System of Higher Education, and
c. has been organized primari ly for the purpose of
providing education and teacher training and
conducting events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic organization exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 2 6
U.S.C., Section 501(c)(4), for the purposes of rais ing funds for the
benefit of the team;
45. Sales of tickets for admission to a collegiate athle tic
event that is held in a facility owned or operated by a municipality
or a public trust of which the mun icipality is the sole beneficiary
and that actually determines or is part of a tournament or
tournament process for determining a conference tourname nt
championship, a conference championship, or a national championship;
46. Sales of tangible personal pro perty or services to or by an
organization which is exempt from taxation pu rsuant to the
provisions of the Internal Revenue Code , 26 U.S.C., Section
501(c)(3) and is operating the Oklahoma City National Memorial and
Museum, an affiliate of the National Par k System;
47. Sales of tangible personal property or services to
organizations which are exempt from federal taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3 ), the memberships of which are limited to
honorably discharged veterans, and whic h furnish financial supp ort
to area veterans’ organizations to be used for the purpose of
constructing a memorial or museum;
48. Sales of tangible personal property or servi ces on or after
January 1, 2003, to an organization which is exempt from taxation
pursuant to the provisi ons of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) that is expen ding monies received from a private
foundation grant in conjunction with ex penditures of local sales tax
revenue to construct a local public library;
ENR. S. B. NO. 236 Page 14
49. Sales of tangible person al property or services to a state
that borders this sta te or any political s ubdivision of that state,
but only to the extent that the other state or po litical subdivision
exempts or does not impose a tax on similar sales of items t o this
state or a political subdivision of this state;
50. Effective July 1, 20 05, sales of tangible personal property
or services to the Career Technology Student Organizatio ns under the
direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. Sales of tangible personal property to a public trust
having either a sing le city, town or county or multiple cities,
towns or counties or combinatio n thereof as beneficiary or
beneficiaries or a nonprofit organization which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c )(3) for the purpose of constructing
improvements to or expanding a hospita l or nursing home owned and
operated by any such public trust or nonprofit ent ity prior to July
1, 2008, in counties with a population of less than one hundred
thousand (100,000) pe rsons, according to the most recent Federal
Decennial Census. As used in t his paragraph, “constructing
improvements to or expanding” shall not mean any expense for routine
maintenance or general repairs and shall require a project cos t of
at least One Hundred Thousand Dollars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subcont ractor that
enters into a contractual relation ship with a public trust or
nonprofit entity as described by this paragraph shall be considered
sales made to the public trust or nonprofit entity. The exemption
authorized by this paragraph shall be administe red in the form of a
refund from the sales tax revenues apportioned pu rsuant to Section
1353 of this title and the vendor shall be required to collec t the
sales tax otherwise applicable to the transaction. The purchaser
may apply for a refund of the sales tax paid in the manner
prescribed by this par agraph. Within thirty ( 30) days after the end
of each fiscal year, any purchaser that is entitled to m ake
application for a refund based upon the exempt treatment authorized
by this paragraph may file an appli cation for refund of the sales
taxes paid during such preceding fiscal year. The Tax Commission
shall prescribe a form for purp oses of making the ap plication for
refund. The Tax Commission shall determine whether or not th e total
amount of sales tax exem ptions claimed by all purchasers is equal to
ENR. S. B. NO. 236 Page 15
or less than Six Hundred Fifty Thousand Dollars ($650,000.00). If
such claims are less than or equal to that amount, the Tax
Commission shall make refunds to the purchasers in th e full amount
of the documented and verified sales tax amounts. If such claim s by
all purchasers are in excess of Six Hundred Fifty Thousand Dollars
($650,000.00), the Tax Commissi on shall determine the amount of each
purchaser’s claim, the total amount o f all claims by all purchasers,
and the percentage each purchaser’s claim amount bears to the total.
The resulting percentage determined for each purchaser sha ll be
multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
determine the amount of refundable sales tax to be paid to each
purchaser. The pro rata refund amount shall be the only metho d to
recover sales taxes paid during the preceding fiscal year and no
balance of any sales taxes paid on a pro rata basis shall be the
subject of any subsequent refund claim pursuant to this paragraph;
52. Effective July 1, 2006, sales of tangible person al property
or services to any organization which assists, trains, educates, and
provides housing for physically and mentally handicapped persons and
which is exempt from taxation pursuan t to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
receives at least eighty -five percent (85%) of its annual bud get
from state or federal funds. In order to receive the benefit of the
exemption authorized by this parag raph, the taxpayer shall be
required to make payment of the applicabl e sales tax at the time of
sale to the vendor in the manner otherwise required b y law.
Notwithstanding any other provision of the Oklahoma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be authorized to
file a claim for refund of sales tax es paid that qualify for the
exemption authorized by this p aragraph for a period of one (1) year
after the date of the sale transaction. The taxpayer shal l be
required to provide documen tation as may be prescribed by the
Oklahoma Tax Commission in support of the refund claim. The total
amount of sales tax qualif ying for exempt treat ment pursuant to this
paragraph shall not exceed One Hundred Seventy -five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
processed in the order in which such claims are received by the
Oklahoma Tax Commiss ion. If a claim othe rwise timely filed exceeds
the total amount of refunds payable for a fiscal year, such claim
shall be barred;
ENR. S. B. NO. 236 Page 16
53. The first Two Thousand Dollars ($2,0 00.00) each year of
sales of tangible personal property or services to, by, or for t he
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or wo rking directly with a law enforc ement
agency with jurisdiction in the area i n which the neighborhood watch
organization is located. As used in this paragraph, “qualified
neighborhood watch organization” means an organization that is a
not-for-profit corporation under the laws of the Sta te of Oklahoma
that was created to help prev ent criminal activity in an area
through community involvement and interaction with local law
enforcement and which is one of the first two thousand organizations
which makes application to the Oklahoma Tax Commi ssion for the
exemption after March 29, 2006 ;
54. Sales of tangibl e personal property to a nonprofit
organization, exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
primarily for the purp ose of providing services to homeless perso ns
during the day and lo cated in a metropolitan area with a population
in excess of five hundred thousand (500,000) persons according to
the latest Federal Decennial Census. The ex emption authorized by
this paragraph shall be applicable to sales of tangib le personal
property to a qualified entity occurring on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C ., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation o f wetlands and habitat for wild ducks;
56. Sales of tangible personal prop erty or services to or by an
organization which is exempt from taxation p ursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principa l purpose of which is to provide
funding for the preservation and conservat ion of wild turkeys;
57. Sales of tangible personal property or service s to an
organization which:
ENR. S. B. NO. 236 Page 17
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Cod e, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of community -based, autonomous
member organizations that meets the following
criteria:
(1) serves people with workplace disadvantages and
disabilities by providing job traini ng and
employment services, as well as job placement
opportunities and post-employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing and household goods to
sell in retail stores and provi des contract labor
services to business and government, and
(4) provides documentation to the Ok lahoma Tax
Commission that over seventy-five percent (75%)
of its revenues are channeled i nto employment,
job training and placement programs and other
critical community services;
58. Sales of tickets made on or after September 21, 2005, and
complimentary or free tickets for admission issued on or after
September 21, 2005, which have a value equivalent to the charge that
would have otherwise been made, for admi ssion to a professional
athletic event in which a team in th e National Basketball
Association is a participant, which is held in a facility owned or
operated by a municipality, a county or a public trust of which a
municipality or a county is the sole bene ficiary, and sales of
tickets made on or after July 1, 2007, and complimentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge that would have otherwise been made,
for admission to a professional a thletic event in which a team in
the National Hockey League is a participant, which is held in a
facility owned or operated by a municipality, a county or a public
trust of which a muni cipality or a county is the sole beneficiary;
ENR. S. B. NO. 236 Page 18
59. Sales of tickets for admission and complimentary or free
tickets for admission w hich have a value equivalent to the charge
that would have otherwise been made to a professional sporting event
involving ice hockey, baseball, basketball, football or arena
football, or soccer. As used in this paragraph, “professional
sporting event” means an organized athletic competition between
teams that are members of an organized league or association with
centralized management, other than a national league or national
association, that im poses requirements for participation in the
league upon the teams, the individual athletes or bo th, and which
uses a salary structure to compensate the athletes;
60. Sales of tickets for admission to an annual event sponsored
by an educational and charita ble organization of women which is
exempt from taxation purs uant to the provisions of the Intern al
Revenue Code, 26 U.S.C., Sect ion 501(c)(3) and has as its mission
promoting volunteerism, developing the potential of women and
improving the community throu gh the effective action and leadership
of trained volunteers ;
61. Sales of tangible personal pr operty or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the provis ions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraising, public awareness or other
efforts for the benefit of its member organizations, and if the
member organization is primarily engaged either in providing
educational services and programs concerning health -related diseases
and conditions to individuals suffering from such health-related
diseases and conditions or their ca regivers and family members or
support to such individuals, or in health-related research as to
such diseases and conditions, or both. In order to qualify for the
exemption authorized by this paragraph, the member nonpr ofit
organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the member ship organization;
62. Sales of tangible personal property or services to or by an
organization which is part of a national volunteer women’s service
organization dedicated to promoting patriotism, pre serving American
ENR. S. B. NO. 236 Page 19
history and securing better educatio n for children and which has at
least 168,000 members in 3,000 chapters acr oss the United States;
63. Sales of tangible personal prope rty or services to or by a
YWCA or YMCA organization which is part o f a national nonprofit
community service organizatio n working to meet the health and social
service needs of its members across the United States;
64. Sales of tangible personal property or services to or by a
veteran’s organization which is exempt from t axation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(19) and which is known as the Veteran s of Foreign Wars of the
United States, Oklahoma Chapters;
65. Sales of boxes of food by a chur ch or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3). To qualify
under the provisions of this paragraph, the organization must be
organized for the primary purpose of feeding needy individuals or to
encourage volunteer service by requiring such ser vice in order to
purchase food. These boxes shall only contain edible staple food
items;
66. Sales of tangible personal property or serv ices to any
person with whom a churc h has duly entered into a constr uction
contract, necessary for carrying out such contract or to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or educational purposes, to or by an
organization which:
a. is exempt from taxation pursuant to the pro visions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
ENR. S. B. NO. 236 Page 20
(1) providing training and education to
developmentally disabled indivi duals,
(2) educating the community about the rights,
abilities and strengths of deve lopmentally
disabled individuals, and
(3) promoting unity among developmentally disabled
individuals in their community and geog raphic
area;
68. Sales of tangible perso nal property or services to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exempt from taxation purs uant to the
provisions of the Intern al Revenue Code, 26 U.S.C., Sect ion
501(c)(3); provided, until July 1, 20 08, such exemption shall apply
only to eligible shelters for children from birth to age twelve (12)
and after July 1, 2008, such exemption shall ap ply to eligible
shelters for childre n from birth to age eighteen (18 );
69. Sales of tangible personal prope rty or services to a child
care center which is licensed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Hum an
Services Reaching for the Sta rs Program or a national
accreditation, and
b. allows on-site universal prekindergarten education to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has entered previously into a
contractual relationship with a child care cente r for construction
and improvement of buildings and other str uctures owned by the child
care center and operated for educational purposes shall be
considered sales mad e to a child care center. Any such person,
firm, agency or entity making purchases on be half of a child care
center shall certify, in writing, on the copy of the invoice or
sales ticket the nature of the purchase. An y such person, or person
ENR. S. B. NO. 236 Page 21
acting on behalf of a firm, agency or entity making purchases on
behalf of a child care center in viol ation of this paragraph shall
be guilty of a misdemeanor and upon conviction thereof shall be
fined an amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or both;
70. a. Sales of tangible personal pro perty to a service
organization of mothers who have children w ho are
serving or who have served in the military, which
service organization is exempt from taxation pur suant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(19) and w hich is known as the
Blue Star Mothers of America, Inc. The e xemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actual ly sent
to United States military personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the organization.
Provided, this exempt ion shall not apply to any sales
tax levied by a city, town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph s hall be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Se ction 1353 of
this title, and the vendor shall be required to
collect the sales tax otherwise applicable to the
transaction. The purchaser may apply for a r efund of
the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60) da ys after the end
of each calendar quarter, any purchaser that is
entitled to make application for a refund based upon
the exempt treatment authorized by this paragraph may
file an application for refund of the state sale s
taxes paid during such preceding c alendar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refund pursu ant to this
paragraph shall certify that the items were actually
sent to military personnel overseas in a combat zone.
Any purchaser that applies for a refund for the
ENR. S. B. NO. 236 Page 22
purchase of items that are not authorized for
exemption under this paragraph shall be su bject to a
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack ite ms to or by an organization
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose prim ary
and principal purpose is providing funding for scholarships i n the
medical field;
72. Sales of tangible personal property or ser vices for use
solely on construction projects for organizations which are exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and who se purpose is providing
end-of-life care and access to hospice servi ces to low-income
individuals who live in a facility owned by the organization. The
exemption provided by this paragraph applies to sales to the
organization as well as to sales to any pe rson with whom the
organization has duly entered into a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any person m aking purchases on behalf
of such organization shall certify, in w riting, on the copy of the
invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf of such organization and set
out the name of such organization. Any person who wrongfully or
erroneously certifies that purchases are for any of the above -named
organizations or who otherwise viola tes this section shall be guilty
of a misdemeanor and upon conviction thereof shall be fined an
amount equal to double the amount of sales tax involved or
incarcerated for not more than si xty (60) days or both;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 5 01(c)(3) that are
organized for the purpose of supporting general h ospitals licensed
by the State Department of Health;
74. Sales of tangible personal property or services:
a. to a foundation which is exempt from taxation pursuant
to the provisions of t he Internal Revenue Code, 26
ENR. S. B. NO. 236 Page 23
U.S.C., Section 501(c)(3) and which rais es tax-
deductible contributions in s upport of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
organizations that defend and foster Second Amendment
rights, and
b. to or by a grassroots fund raising program for sales
related to events to raise funds for a fou ndation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provisions of the Internal Rev enue Code, 26
U.S.C., Section 501(c) (3) which are related to a fundr aising event
sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days and when the sales are not in
the organization’s or the entity’s regular course of business.
Provided, the exemption provided in this paragra ph shall be limited
to tickets sold for admittance to the fundraising event and items
which were donated to the organ ization or entity for sale at the
event;
76. Effective November 1, 201 7, sales of tangible personal
property or services to an organizatio n which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3 ) and operates as a collaborative model
which connects community agencie s in one location to serve
individuals and families affected by viol ence and where victims have
access to services and advocacy at no cost to the victim;
77. Effective July 1, 2018, sales of tangible personal property
or services to or by an association w hich is exempt from taxation
pursuant to the provisions of the Inter nal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the National Guard
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible personal property
or services to or by an association which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which is known as the Marine Corps League of
Oklahoma;
ENR. S. B. NO. 236 Page 24
79. Sales of tangible personal property or services t o the
American Legion, whether the p urchase is made by the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authority of
the national American Legion organization;
80. Sales of tangible personal property or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter , and
c. able to provide documentation that its primary and
principal purpose is to provide community access to
advanced 21st century manufacturing a nd digital
fabrication tools for scienc e, technology,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses and producing personalized products ;
81. Sales of tangible personal property or services used solely
for construction and remodeling projects to an organization which is
exempt from taxation pursuant to the provisions of t he Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) , and which meets the
following requirements:
a. its primary purpose is to construct or remodel and
sell affordable housing and provide homeownership
education to residents of Oklahoma that have an inc ome
that is below one hundred percent (100%) of the Family
Median Income guidelines as defined by the U.S.
Department of Housing and Urban Development,
b. it conducts its activities in a manner that serves
public or charitable purposes, rather than commer cial
purposes,
ENR. S. B. NO. 236 Page 25
c. it receives funding and revenue and charges fees in a
manner that does not incentivize it or its employees
to act other than in the best interests of its
clients, and
d. it compensates its employees in a manner that does not
incentivize employees to act other than in the best
interests of its clients ; and
82. Sales of tangible personal property or services to a
nonprofit entity, organized pursuant to Oklahoma law before January
1, 2022, exempt from federal income taxation pursuant to S ection
501(c) of the Internal Revenue Code of 1986, as amended, the
principal functions of which are to provide assistance to natural
persons following a disaster, with program emphasis on repair or
restoration to single-family residential dwellings or the
construction of a replacement single -family residential dwelling .
As used in this paragraph , "disaster" means damage to property with
or without accompanying injury to persons from heavy rain, high
winds, tornadic winds, drought, wildfire, snow, ice, geo logic
disturbances, explosions, chemical accidents or spills and other
events causing damage to property on a large scale . For purposes of
this paragraph, an entity that expended at least seventy -five
percent (75%) of its funds on the restoration to singl e-family
housing following a disaster , including related general and
administrative expenses, shall be eligible for the exemption
authorized by this paragraph ; and
83. Sales of articles of clothing to an Oklahoma C hapter of a
national organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. distributes clothing to disadvantaged children through
a community-based philanthropic program known as
Operation School Bell.
SECTION 2. This act shall become effective November 1, 2021.
ENR. S. B. NO. 236 Page 26
Passed the Senate the 19th day of May, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the 25th day of May, 2021.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _______________________________ __