Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB244 Compare Versions

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3		-	ENGR. S. B. NO. 244 Page 1 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 244 By: Allen of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 24, 2021
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	33	+	SENATE BILL NO. 244 By: Allen of the Senate
30	34
31	35		and
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33	37		Grego of the House
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38	43		An Act relating to sales tax exemption; amendi ng 68
39	44		O.S. 2011, Section 1358, which relates to
40	45		agricultural exemptions; providin g sales tax
41	46		exemption for certain purchases of sod; and providing
42	47		an effective date.
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48	53		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
49	54		SECTION 1. AMENDATORY 68 O.S. 2011, Se ction 1358, is
50	55		amended to read as follow s:
51	56		Section 1358. Exemptions – Agriculture.
52	57		A. There are hereby specifically exempted from the tax levied
53	58		by Section 1350 et seq. of this title:
54	59		1. Sales of agricultural product s produced in this state by the
55	60		producer thereof directly to the consumer or user when such articles
56	61		are sold at or from a farm and not from some other place of
57	62		business, as follows:
58	63		a. farm, orchard or garden products, and
59		-	b. dairy products sold by a dair y producer or farmer who
60		-	owns all the cows from which the dairy products
61		-	offered for sale are produced , and
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63		-	ENGR. S. B. NO. 244 Page 2 1
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	91	+	b. dairy products sold by a dair y producer or farmer who
	92	+	owns all the cows from which the dairy products
	93	+	offered for sale are produced, and
88	94		c. sod;
89	95		provided, the provisions of this paragraph shall not be construed as
90	96		exempting sales by florists, nursery operators or chicken
91	97		hatcheries, or sales of dairy products by any ot her business except
92	98		as set out herein;
93	99		2. Livestock, including cattle, horses, mules or other domestic
94	100		or draft animals, sold by the producer by private treaty or at a
95	101		special livestock sale;
96	102		3. Sale of baby chicks, tur key poults and starter pullets used
97	103		in the commercial production of c hickens, turkeys and eggs, provided
98	104		that the purchaser certifies, in writing, on the copy of the invoice
99	105		or sales ticket to be retained by the vendor that the pullets will
100	106		be used primarily for egg production;
101	107		4. Sale of salt, grains, tankage, oyster shel ls, mineral
102	108		supplements, limestone and other generally recognized animal feeds
103	109		for the following purposes and subject to the following limitations:
104	110		a. feed which is fed to poultry and liv estock, including
105	111		breeding stock and wool-bearing stock, for the purp ose
106	112		of producing eggs, poultry, milk or meat for human
107	113		consumption,
108		-	b. feed purchased in Oklahoma for the purpose of being
109		-	fed to and which is fed by the purchaser to horses,
110		-	mules or other domestic or draft animals used d irectly
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112		-	ENGR. S. B. NO. 244 Page 3 1
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	141	+	b. feed purchased in Oklahoma for the purpose of being
	142	+	fed to and which is fed by the purchaser to horses,
	143	+	mules or other domestic or draft animals used d irectly
137	144		in the producing and marke ting of agricultural
138	145		products, and
139	146		c. any stock tonics, water purifying products, stock
140	147		sprays, disinfectants or other such agricultural
141	148		supplies.
142	149		"Poultry" shall not be construed to incl ude any fowl other than
143	150		domestic fowl kept and raised for the market or production of eggs.
144	151		"Livestock" shall not be construed to include any pet animals such
145	152		as dogs, cats, birds or such other fur -bearing animals. This
146	153		exemption shall only be granted an d extended where the purchaser of
147	154		feed that is to be used and in fact is used for a purpose that would
148	155		bring about an exemption hereunder executes an invoice or sales
149	156		ticket in duplicate on a form to be prescribed by the Oklahoma Tax
150	157		Commission. The purch aser may demand and receive a copy of the
151	158		invoice or sales ticket and the vendor shall retain a copy;
152	159		5. Sales of items to be and in fact used in the production of
153	160		agricultural products. Sale of the following items shall be subject
154	161		to the following limit ations:
155	162		a. sales of agricultural fe rtilizer to any person
156	163		regularly engaged, for profit, in the business of
157	164		farming or ranching,
158		-	b. sales of agricultural fertilizer to any person engaged
159		-	in the business of applying such materials on a
160		-	contract or custom ba sis to land owned or leased and
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	192	+	b. sales of agricultural fertilizer to any person engaged
	193	+	in the business of applying such materials on a
	194	+	contract or custom ba sis to land owned or leased and
187	195		operated by persons regularly engaged , for profit, in
188	196		the business of farming or ranching. In addition to
189	197		providing the vendor proof of eligibility as provided
190	198		in Section 1358.1 of this title, the purchaser shall
191	199		provide the name or names of such owner or le ssee and
192	200		operator and the location of the lands on which said
193	201		materials are to be applied to each such land,
194	202		c. sales of agricultural fertilizer, pharmaceuticals and
195	203		biologicals to persons engaged in the business of
196	204		applying such materials on a contract or custom basis
197	205		shall not be conside red to be sales to contractors
198	206		under this article, and said sales shall not be
199	207		considered to be taxable sales within the meaning of
200	208		the Oklahoma Sales Tax Code. As used in this section,
201	209		"agricultural fertilizer ", "pharmaceuticals" and
202	210		"biologicals" mean any substance sold and used for
203	211		soil enrichment or soil corrective purposes or for
204	212		promoting the growth and productivity of plants or
205	213		animals,
206	214		d. sales of agricultural seed or plants to an y person
207	215		regularly engaged, for pro fit, in the business of
208		-	farming or ranching. This section shall not be
209		-	construed as exempting from sales tax, seed which is
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211		-	ENGR. S. B. NO. 244 Page 5 1
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	243	+	farming or ranching. This section shall not be
	244	+	construed as exempting from sales tax, seed which is
236	245		packaged and sold for use in noncommercial flower and
237	246		vegetable gardens, and
238	247		e. sales of agricultural chemical pesticides to any
239	248		person regularly engaged, for profit , in the business
240	249		of farming or ranching. For the purposes of this
241	250		subparagraph, "agricultural chemical pesticides " shall
242	251		include any substance or mixture of substances
243	252		intended for preventing, destroying, repelling or
244	253		mitigating any insect, snail, slug, rodent, bird,
245	254		nematode, fungus, weed or any other form of
246	255		terrestrial or aquatic plant or animal life or virus,
247	256		bacteria or other microorganism, except viruses,
248	257		bacteria or other microorg anisms on or in living man,
249	258		or any substance or mixture of substances intended for
250	259		use as a plant regulator, defoliant or desiccant.
251	260		The exemption provided in this paragraph shall only be granted
252	261		and extended to the purchaser where the items are to be used and in
253	262		fact are used in the produc tion of agricultural products;
254	263		6. Sale of farm machinery, repair parts thereto or fuel, oil,
255	264		lubricants and other substances used for operation and maintenance
256	265		of the farm machinery to be used directly on a farm or ranch in the
257	266		production, cultivation, pl anting, sowing, harvesting, proces sing,
258		-	spraying, preservation or irriga tion of any livestock, poultry,
259		-	agricultural or dairy products produced from such lands. The
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	294	+	spraying, preservation or irrigation of any livestock, poultry,
	295	+	agricultural or dairy products produced from such lands. The
286	296		exemption specified in this paragraph shall apply to su ch farm
287	297		machinery, repair parts or fuel, oil, lubricants and other
288	298		substances used by persons engaged in the business of custom
289	299		production, cultivation, planting, sowing, harvesting, processing,
290	300		spraying, preservation, or irrigation of any livestock, poult ry,
291	301		agricultural, or dairy products for farmers or ranchers. The
292	302		exemption provided for herein shall not apply to motor vehicles;
293	303		7. Sales of supplies, machinery and equipment to persons
294	304		regularly engaged in the business of raising evergreen trees for
295	305		retail sale in which such trees are c ut down on the premises by the
296	306		consumer purchasing such tree. This exemption shall only be granted
297	307		and extended when the items in fact are used in the raising of such
298	308		evergreen trees; and
299	309		8. Sales of materials, supplies and equipment to an
300	310		agricultural permit holder or to any person with whom the permit
301	311		holder has contracted to construct facilities which are or which
302	312		will be used directly in the production of any livestock, including,
303	313		but not limited to, facilities used in the production and storage of
304	314		feed for livestock owned by the perm it holder. Any person making
305	315		purchases on behalf of the agricultural permit holder shall certify,
306	316		in writing, on the copy of the invoice or sales ticket to be
307	317		retained by the vendor that the purchases are made for and on behalf
308		-	of such permit holder and s et out the name and permit number of s uch
309		-	holder. Any person who wrongfully or erroneously certifies that
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	345	+	of such permit holder and s et out the name and permit number of such
	346	+	holder. Any person who wrongfully or erroneously certifies that
336	347		purchases are for an agricultural permit holder or who otherwise
337	348		violates this subsection shall be guilty of a misd emeanor and upon
338	349		conviction thereof shall be punishable by a fine of an amount equal
339	350		to double the amount of sales tax involved or imprisonment in the
340	351		county jail for not more than sixty (60) days or by both such fine
341	352		and imprisonment.
342	353		B. As used in this section and Section 1358.1 of this title:
343	354		1. "Agricultural products" shall include horses; and
344	355		2. "Ranching" or "ranch" shall include the business, or
345	356		facilities for the business, of raising horses.
346	357		Provided, sales of i tems at race meetings as defined in Section
347	358		200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
348	359		pursuant to the provisions of this section and Section 1358.1 of
349	360		this title.
350	361		SECTION 2. This act shall become effective November 1, 2021.
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377		-	Passed the Senate the 2nd day of March, 2021.
378		-
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380		-
381		-	Presiding Officer of the Senate
382		-
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384		-	Passed the House of Representatives the ____ day of __________,
385		-	2021.
386		-
387		-
388		-
389		-	Presiding Officer of the House
390		-	of Representatives
391		-
	362	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	363	+	February 24, 2021 - DO PASS