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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 415 By: Simpson
AS INTRODUCED
An Act relating to veteran’s sales tax exemptions;
amending 68 O.S. 2011, Section s 205, as last amended
by Section 37, Chapter 210, O.S. L. 2016 and 1357, as
last amended by Section 1, Chapter 241, O.S.L. 2019
(68 O.S. Supp. 2020, Section s 205 and 1357), which
relate to information for determining eligibility;
deleting obsolete language; authorizing disclosure of
specified information by Ok lahoma Tax Commission to
Oklahoma Department of Veterans Affairs relating to
certain eligibility; requiring veteran registration
for certain sales tax exemption; requiring veteran
registration by certain date to remain qualified for
certain sales tax exemp tion; requiring the Tax
Commission to promulgate rules; specifying content of
rules; providing statutory reference; amending
Section 1, Chapter 229, O.S.L. 2017, as last amended
by Section 1, Chapter 124, O.S.L. 2019 (72 O.S. Supp.
2020, Section 421), which relates to registry of
veterans; requiring additional verification of
veteran service disability status under certain
circumstance; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 205, as last
amended by Section 37, Chapter 210, O.S.L. 2016 (68 O.S. Supp. 2020,
Section 205), is amended to read as follows:
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Section 205. A. The records and files of the Oklahoma Tax
Commission concerning the administration of the Uniform Tax
Procedure Code or of any state tax law shall be considered
confidential and privileged, except as otherwi se provided for by
law, and neither the Tax Commission nor any employee engaged in the
administration of the Tax Comm ission or charged with the custody of
any such records or files nor any person who may have secured
information from the Tax Commission sha ll disclose any information
obtained from the records or files or from any examination or
inspection of the premises or property of any person.
B. Except as provided in paragraph 26 of subsection C of this
section, neither the Tax Commission nor any emplo yee engaged in the
administration of the Tax Commission or charged with the custody of
any such records or files shal l be required by any court of this
state to produce any of the records or files for the inspection of
any person or for use in any action o r proceeding, except when the
records or files or the facts shown thereby are directly involved in
an action or proceeding pursuant to the provisions of the Uniform
Tax Procedure Code or of the state tax law, or when the
determination of the action or proc eeding will affect the validity
or the amount of the claim of the state pursuant to any state tax
law, or when the information contained in the records or files
constitutes evidence of violation of the provisions of the Uniform
Tax Procedure Code or of any state tax law.
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C. The provisions of this section shall not prevent the Tax
Commission from disclosing the following information and no
liability whatsoever, civil or criminal, shall attach to any member
of the Tax Commission or any employee thereof for a ny error or
omission in the disclosure of such information:
1. The delivery to a taxpayer or a duly authorized
representative of the taxpayer of a copy of any report or any other
paper filed by the taxpayer pursuant to the provisions of the
Uniform Tax Procedure Code or of any state tax law;
2. The exchange of information that is not protected by the
federal Privacy Protection Act, 42 U.S.C., Section 2000aa et seq.,
pursuant to reciprocal agreements entered into by the Tax Commission
and other state agenc ies or agencies of the federal government;
3. The publication of statistics so classified as to prevent
the identification of a particular report and the items thereof;
4. The examination of records and files by the State Auditor
and Inspector or the dul y authorized agents of the State Auditor and
Inspector;
5. The disclosing of information or evidence to the Oklahoma
State Bureau of Investigation, Attorney General, Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control, any district
attorney, or agent of any federal law enforcement agency when the
information or evidence is to be used by such officials to
investigate or prosecute violations of the criminal provisions of
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the Uniform Tax Procedure Code or of any state tax law or of any
federal crime committed against this state. Any information
disclosed to the Oklahoma State Bureau of Investigation, Attorney
General, Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control, any district attorney , or agent of any federal law
enforcement agency shall be kept confidential by such person and not
be disclosed except when presented to a court in a prosecution fo r
violation of the tax laws of this state or except as specifically
authorized by law, and a violation by the Oklahoma State Bureau of
Investigation, Attorney General, Oklahoma State Bureau of Narcotics
and Dangerous Drugs Control, district attorney , or agent of any
federal law enforcement agency by otherwise releasing the
information shall be a felony;
6. The use by any division of the T ax Commission of any
information or evidence in the possession of or contained in any
report or return filed with any ot her division of the Tax
Commission;
7. The furnishing, at the discretion of the Tax Commission, of
any information disclosed by its rec ords or files to any official
person or body of this state, any other state, the United States , or
foreign country who i s concerned with the administration or
assessment of any similar tax in this state, any other state or the
United States. The provision s of this paragraph shall include the
furnishing of information by the Tax Commission to a county assessor
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to determine the amount of gross household income pursuant to the
provisions of Section 8C of Article X of the Oklahoma Constitution
or Section 2890 of this title. The Tax Commission shall promulgate
rules to give guidance to the county assessors regarding the type of
information which may be used by the county assessors in determining
the amount of gross household income pursuant to Section 8C of
Article X of the Oklahoma Constitution or Section 2890 of this
title. The provisions of this paragraph shall also include the
furnishing of information to the State Treasurer for the purpose of
administration of the Uniform Unclaimed Property Act;
8. The furnishing of information to other state agencies for
the limited purpose of aiding in the collection of debts owed by
individuals to such requesting agencies;
9. The furnishing of information requested by any member of the
general public and stated in the sworn lists or schedules of taxable
property of public service corporations organized, existing, or
doing business in th is state which are submitted to and certified by
the State Board of Equalization pursuant to the provisions of
Section 2858 of this titl e and Section 21 of Article X of the
Oklahoma Constitution, provided such information would be a public
record if filed pursuant to Sections 2838 and 2839 of this title on
behalf of a corporation other than a public service corporation;
10. The furnishing of information requested by any member of
the general public and stated in the findings of the Tax Commission
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as to the adjustment and equalization of the valuation of real and
personal property of the counties of the state, which are submitted
to and certified by the State Board of Equalization pursuant to the
provisions of Section 2865 of this title and Section 21 of Art icle X
of the Oklahoma Constitution;
11. The furnishing of information to an Oklahoma wholesaler of
low-point beer, licensed under the provisions of Section 163.1 et
seq. of Title 37 of the Oklahoma Statutes, or an association or
organization whose member ship is comprised of such wholesalers, of
the licensed retailers authorized by law to purchase low -point beer
in this state or the furni shing of information to a licensed
Oklahoma wholesaler of low -point beer of shipments by licensed
manufacturers into thi s state;
12. The furnishing of information as to the issuance or
revocation of any tax permit, license or exemption by the Tax
Commission as provided for by law. Such information shall be
limited to the name of the person issued the permit, license or
exemption, the name of the business entity authorized to engage in
business pursuant to the permit, license or exemption, the address
of the business entity , and the grounds for revocation;
13. 12. The posting of notice of revocation of any tax permit
or license upon the premises of the place of business of any
business entity which has had any tax permit or license revoked by
the Tax Commission as provided for by law. Such notice shall be
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limited to the name of the person issued the permit or license, the
name of the business entity authorized to engage in business
pursuant to the permit or license, the address of the business
entity, and the grounds for revocation;
14. 13. The furnishing of information upon written request by
any member of the general pub lic as to the outstanding and unpaid
amount due and owing by any taxpayer of this state for any
delinquent tax, together with penalty and interest, for which a tax
warrant or a certificate of indebtedness has been filed pursuant to
law;
15. 14. After the filing of a tax warrant pursuant to law, the
furnishing of information upon written request by any member of the
general public as to any agreement entered into by the Tax
Commission concerning a compromise of tax liability for an amount
less than the amount of tax liability stated on such warrant;
16. 15. The disclosure of information necessary to complete the
performance of any contract authorized by this title to any person
with whom the Tax Commission has contracted;
17. 16. The disclosure of informat ion to any person for a
purpose as authorized by the taxpayer pursuant to a waiver of
confidentiality. The waiver shall be in writing and shall be made
upon such form as the Tax Commission may prescribe;
18. 17. The disclosure of information required in order to
comply with the provisions of Section 2369 of this title;
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19. 18. The disclosure to an employer, as defined in Sections
2385.1 and 2385.3 of this title, of information required in order to
collect the tax imposed by Section 2385.2 of this title;
20. 19. The disclosure to a plaintiff of a corporation's last -
known address shown on the records of the Franchise Tax Division of
the Tax Commission in order for such plaintiff to comply with the
requirements of Section 2004 of Title 12 of the Oklahoma St atutes;
21. 20. The disclosure of information directly involved in the
resolution of the protest by a taxpayer to an assessment of tax or
additional tax or the resolution of a claim for refund filed by a
taxpayer, including the disclosure of the pendency of an
administrative proceeding involving such protest or claim, to a
person called by the Tax Commission as an expert witness or as a
witness whose area of knowledge or expertise specifically addresses
the issue addressed in the protest or claim for refun d. Such
disclosure to a witness shall be limited to information pertaining
to the specific knowledge of that witness as to the transaction or
relationship between taxpayer and witness;
22. 21. The disclosure of information necessary to implement an
agreement authorized by Section 2702 of this title when such
information is directly involved in the resolution of issues arising
out of the enforcement of a municipal sales tax ordinance. Such
disclosure shall be to the governing body or to the municipal
attorney, if so designated by the governing body;
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23. 22. The furnishing of information regarding incentive
payments made pursuant to the provisions of Sections 3601 through
3609 of this title or incentive payments made pursuant to the
provisions of Sections 3501 through 3508 of this title;
24. 23. The furnishing to a prospective purchaser of any
business, or his or her authorized representative, of information
relating to any liabilities, delinquencies, assessments or warrants
of the prospective seller of th e business which have not been filed
of record, established , or become final and which relate solely to
the seller's business. Any disclosure under this paragraph shall
only be allowed upon the presentment by the prospective buyer, or
the buyer's authoriz ed representative, of the purchase contract and
a written authorization between the parties;
25. 24. The furnishing of information as to the amount of state
revenue affected by the issuance or granting of any tax permit,
license, exemption, deduction, cre dit or other tax preference by the
Tax Commission as provided for by law. Such information shall be
limited to the type of permit, license, exemption, deduction, credit
or other tax preference issued or granted, the date and duration of
such permit, license, exemption, deduction, credit or other tax
preference and the amount of such revenue. The provisions of this
paragraph shall not authorize the disclosure of the name of the
person issued such permit, license, exemption, deduction, credit or
other tax preference, or the name of the business entity authorized
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to engage in business pursuant to the permit, license, exemption,
deduction, credit or other tax preference;
26. 25. The examination of records and files of a person or
entity by the Oklahoma State Bureau of Narcotics and Dangerous Drugs
Control pursuant to a court order by a magistrate in whose
territorial jurisdiction the person or entity resides, or where the
Tax Commission records and files are physically located. Such an
order may only be issue d upon a sworn application by an agent of the
Oklahoma State Bureau of Narcotics and Dangerous Drugs Control,
certifying that the person or entity whose records and files are to
be examined is the target of an ongoing investigation of a felony
violation of the Uniform Controlled Dangerous Substances Act and
that information resulting from such an examination would likely be
relevant to that investigation. Any records or information obtained
pursuant to such an order may only be used by the Oklahoma State
Bureau of Narcotics and Dangerous Drugs Control in the investigation
and prosecution of a felony violation of the Uniform Controlled
Dangerous Substances Act. Any such order issued pursuant to this
paragraph, along with the underlying application, shall be sealed
and not disclosed to the person or entity whose records were
examined, for a period of ninety (90) days. The issuing magistrate
may grant extensions of such period upon a showing of good cause in
furtherance of the investigation. Upon the expirat ion of ninety
(90) days and any extensions granted by the magistrate, a copy of
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the application and order shall be served upon the person or entity
whose records were examined, along with a copy of the records or
information actually provided by the Tax Co mmission;
27. 26. The disclosure of information, as prescribed by this
paragraph, which is related to the proposed or actual usage of tax
credits pursuant to Section 2357.7 of this title, the Small Business
Capital Formation Incentive Act or the Rural Ven ture Capital
Formation Incentive Act. Unless the context clearly requires
otherwise, the terms used in this paragraph shall have the same
meaning as defined by Section 2357.7, 2357.61 or 2357.72 of this
title. The disclosure of information authorized by this paragraph
shall include:
a. the legal name of any qualified venture capital
company, qualified small business capital company , or
qualified rural small business capital company,
b. the identity or legal name of any person or entity
that is a shareholder or partner of a qualified
venture capital company, qualified small business
capital company, or qualified rural small business
capital company,
c. the identity or legal name of any Oklahoma business
venture, Oklahoma small business venture , or Oklahoma
rural small business venture in which a qualified
investment has been made by a capital company, or
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d. the amount of funds invested in a qualified venture
capital company, the amount of qualified investments
in a qualified small business capital c ompany or
qualified rural small business capital company and the
amount of investments made by a qualified venture
capital company, qualified small business capital
company, or qualified rural small business capital
company;
28. 27. The disclosure of spec ific information as required by
Section 46 of Title 62 of the Oklahoma Statutes;
29. 28. The disclosure of specific information as required by
Section 205.5 of this title;
30. 29. The disclosure of specific information as required by
Section 205.6 of this title;
31. 30. The disclosure of information to the State Treasurer
necessary to implement Section 2368.27 of this title; or
32. 31. The disclosure of specific information to t he Oklahoma
Health Care Authority for purposes of determining eligibility for
current or potential recipients of assistance from the Oklahoma
Medicaid Program; or
32. The disclosure of information to the Oklahoma Department of
Veterans Affairs including b ut not limited to the name and basis for
eligibility of each individual who qualifies for the sales tax
exemption authorized in paragraph 34 of Section 1357 of this title .
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D. The Tax Commission shall cause to be prepared and made
available for public insp ection in the office of the Tax Commission
in such manner as it may determine an annu al list containing the
name and post office address of each person, whether individual,
corporate, or otherwise, making and filing an income tax return with
the Tax Commission.
It is specifically provided that no liability whatsoever, civil
or criminal, shall attach to any member of the Tax Commission or any
employee thereof for any error or omission of any name or address in
the preparation and publication of the list.
E. The Tax Commission shall prepare or cause to be prepared a
report on all provisions of state tax law that reduce state revenue
through exclusions, deductions, credits, exemptions, deferrals or
other preferential tax treatments. The report shall be prepar ed not
later than October 1 of each even -numbered year and shall be
submitted to the Governor, the President Pro Tempore of the Senate
and the Speaker of the House of Representatives. The Tax Commission
may prepare and submit supplements to the report at other times of
the year if additional or updated information relevant to the report
becomes available. The report shall include, for the previous
fiscal year, the Tax Commission's best estimate of the amount of
state revenue that would have been collected but for the existence
of each such exclusion, deduction, credit, exemption, deferral or
other preferential tax treatment allowed by law. The Tax Commission
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may request the assistance of other state agencies as may be needed
to prepare the report. The Ta x Commission is authorized to require
any recipient of a tax incentive or tax expendi ture to report to the
Tax Commission such information as requested so that the Tax
Commission may fulfill its obligations as required by this
subsection. The Tax Commissi on may require this information to be
submitted in an electronic format. The Tax Com mission may disallow
any claim of a person for a tax incentive due to its failure to file
a report as required under the authority of this subsection.
F. It is further pr ovided that the provisions of this section
shall be strictly interpreted and shall no t be construed as
permitting the disclosure of any other information contained in the
records and files of the Tax Commission relating to income tax or to
any other taxes.
G. Unless otherwise provided for in this section, any violation
of the provisions of this section shall constitute a misdemeanor and
shall be punishable by the imposition of a fine not exceeding One
Thousand Dollars ($1,000.00) or by imprisonment in the county jail
for a term not exceeding one (1) year, or by both such fine and
imprisonment, and the offender shall be removed or dismissed from
office.
H. Offenses described in Section 2376 of this title shall be
reported to the appropriate district attorne y of this state by the
Tax Commission as soon as the offenses are discovered by the T ax
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Commission or its agents or employees. The Tax Commission shall
make available to the appropriate district attorney or to the
authorized agent of the district attorney its records and files
pertinent to prosecutions, and such records and files shall be fully
admissible as evidence for the purpose of such prosecutions.
SECTION 2. AMENDATORY 68 O.S. 2011, Section 1357, as
last amended by Section 1, Chapter 241, O.S.L. 2019 (68 O.S. Supp.
2020, Section 1357), is amended to read as follows:
Section 1357. Exemptions – General.
There are hereby specifically exempted from the tax levied by
the Oklahoma Sales Tax Code:
1. Transportation of school pupi ls to and from elementary
schools or high schools in motor or other vehicles;
2. Transportation of persons where the fare of each person does
not exceed One Dollar ($1.00), or local transportation of persons
within the corporate limits of a municipality e xcept by taxicabs;
3. Sales for resale to persons engaged in the business of
reselling the articles purchased, whether within or without the
state, provided that such sales to residents of this state are made
to persons to whom sales tax permits have been issued as provided in
the Oklahoma Sales Tax Code. This exemption shall not apply t o the
sales of articles made to persons holding permits when such persons
purchase items for their use and which they are not regularly
engaged in the business of resellin g; neither shall this exemption
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apply to sales of tangible personal property to peddl ers, solicitors
and other salespersons who do not have an established place of
business and a sales tax permit. The exemption provided by this
paragraph shall apply to sa les of motor fuel or diesel fuel to a
Group Five vendor, but the use of such motor fu el or diesel fuel by
the Group Five vendor shall not be exempt from the tax levied by the
Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
is exempt from sales tax when the motor fuel is for shipment outside
this state and consumed by a common carrier by rail in the conduct
of its business. The sales tax shall apply to the purchase of motor
fuel or diesel fuel in Oklahoma by a common carrier by rail when
such motor fuel is purchased for fueling, within this state, of any
locomotive or other motorized flanged wheel equipment;
4. Sales of advertising space in newspapers and periodicals;
5. Sales of programs relating to sporting and entertainment
events, and sales of advertising on billboards (including signage,
posters, panels, marquees , or on other similar surfaces, whether
indoors or outdoors) or in programs relating to sporting and
entertainment events, and sales of any advertisin g, to be displayed
at or in connection with a sporting event, via the Internet,
electronic display devices , or through public address or broadcast
systems. The exemption authorized by this paragraph shall be
effective for all sales made on or after Januar y 1, 2001;
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6. Sales of any advertising, other than the advertising
described by paragraph 5 of this section , via the Internet,
electronic display devices , or through the electronic media,
including radio, public address or broadcast systems, television
(whether through closed circuit broadcasting systems or otherwise),
and cable and satellite television, and th e servicing of any
advertising devices;
7. Eggs, feed, supplies, machinery and equipment purchased by
persons regularly engaged in the business of raising worms, fish,
any insect or any other form of terrestrial or aquatic animal life
and used for the pur pose of raising same for marketing. This
exemption shall only be granted and extended to the purchaser when
the items are to be used and in fact ar e used in the raising of
animal life as set out above. Each purchaser shall certify, in
writing, on the invoice or sales ticket retained by the vendor that
the purchaser is regularly engaged in the business of raising such
animal life and that the items p urchased will be used only in such
business. The vendor shall certify to the Oklahoma Tax Commission
that the price of the items has been reduced to grant the full
benefit of the exemption. Violation hereof by the purchaser or
vendor shall be a misdemean or;
8. Sale of natural or artificial gas and electricity, and
associated delivery or transmission services, when sold exclusively
for residential use. Provided, this exemption shall not apply to
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any sales tax levied by a city or town, or a county , or any other
jurisdiction in this state;
9. In addition to the exemptions authorized by Section 1357.6
of this title, sales of drugs sold pursuant to a prescription
written for the treatment of human beings by a person licensed to
prescribe the drugs, and sales of insulin and medical oxygen.
Provided, this exemption shall not apply to over -the-counter drugs;
10. Transfers of title or possession of empty, partially
filled, or filled returnable oil and chemical drums to any person
who is not regularly engaged in the business of selling, reselling
or otherwise transferring empty, partially filled , or filled
returnable oil drums;
11. Sales of one-way utensils, paper napkins, paper cups,
disposable hot containers and other one -way carry out materials to a
vendor of meals or beverages;
12. Sales of food or food products for home consumption which
are purchased in whole o r in part with coupons issued pursuant to
the federal food stamp program as authorized by Sections 2011
through 2029 of Title 7 of the United States Code, as to that
portion purchased with such coupons. The exemption provided for
such sales shall be inapp licable to such sales upon the effective
date of any federal law that removes the requirement of the
exemption as a condition for participation by t he state in the
federal food stamp program;
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13. Sales of food or food products, or any equipment or
supplies used in the preparation of the food or food products to or
by an organization which:
a. is exempt from taxation pursuant to the provisions of
Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), and which provides and
delivers prepared meals for home consumption to
elderly or homebound persons as part of a program
commonly known as "Meals on Wheels" or "Mobile Meals",
or
b. is exempt from taxation pursuant to the provisions of
Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), and which receives federal
funding pursuant to the Older Americans Act of 1965,
as amended, for the purpose of providing nut rition
programs for the care and benefit of elderly persons;
14. a. Sales of tangible personal property or s ervices to or
by organizations which are exempt from taxation
pursuant to the provisions of Section 501(c)(3) of the
Internal Revenue Code, 26 U.S.C ., Section 501(c)(3),
and:
(1) are primarily involved in the collection and
distribution of food and other h ousehold products
to other organizations that facilitate the
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distribution of such products to the needy and
such distributee organizations are exemp t from
taxation pursuant to the provisions of Section
501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), or
(2) facilitate the distribution of such products to
the needy.
b. Sales made in the course of business for profit or
savings, competing with other persons engaged in the
same or similar business shall not be exempt under
this paragraph;
15. Sales of tangible personal property or services to
children's homes which are located on church -owned property and are
operated by organization s exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
16. Sales of computers, data processing equipment, related
peripherals and telephone, telegraph or telecommunications service
and equipment for use in a qualified aircraft maintenance or
manufacturing facility. For purposes of this paragraph, "qualifie d
aircraft maintenance or manufacturing facility" means a new or
expanding facility primarily engaged in aircraft repair, building or
rebuilding whether or not on a factory basis, whose total cost of
construction exceeds the sum of Five Million Dollars ($5 ,000,000.00)
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and which employs at least two hundred fifty (250) new full -time-
equivalent employees, as certified by the Oklahoma Employment
Security Commission, upon completion of the facility. In order to
qualify for the exemption provided for by this pa ragraph, the cost
of the items purchased by the qualified aircraft maintenance or
manufacturing facility shall equal or exceed the sum of Two Millio n
Dollars ($2,000,000.00);
17. Sales of tangible personal property consumed or
incorporated in the construc tion or expansion of a qualified
aircraft maintenance or manufacturing facility as defined in
paragraph 16 of this section. For purposes of this pa ragraph, sales
made to a contractor or subcontractor that has previously entered
into a contractual relation ship with a qualified aircraft
maintenance or manufacturing facility for construction or expansion
of such a facility shall be considered sales made to a qualified
aircraft maintenance or manufacturing facility;
18. Sales of the following telecommunicatio ns services:
a. Interstate and International "800 service". "800
service" means a "telecommunications service" that
allows a caller to dial a toll-free number without
incurring a charge for the call. The service is
typically marketed under the name "800" , "855", "866",
"877", and "888" toll-free calling, and any subsequent
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numbers designated by the Federal Communications
Commission, or
b. Interstate and International "900 service". "900
service" means an inbound toll "telecommunications
service" purchased by a subscriber that allows the
subscriber's customers to call in to the subscriber's
prerecorded announcement or live service. "900
service" does not include the charge for: collection
services provided by the seller of the
"telecommunications services " to the subscriber, or
service or product sold by the subscriber to the
subscriber's customer. The service is typically
marketed under the na me "900” service, and any
subsequent numbers designated by the Federal
Communications Commission,
c. Interstate and International "private communications
service". "Private communications service" means a
"telecommunications service" that entitles the
customer to exclusive or priority use of a
communications channel or group of channels between or
among termination points, regardless of the manner in
which such channel or channels are connected, and
includes switching capacity, extension lines,
stations, and any other associated services that are
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provided in connection with the use of such channel or
channels,
d. "Value-added nonvoice data service". "Value -added
nonvoice data service" means a service that otherwise
meets the definition of "telecommunicatio ns services"
in which computer processing applications are used to
act on the form, content, code , or protocol of the
information or data primarily for a purpose other than
transmission, conveyance or routing,
e. Interstate and International telecommunications
service which is:
(1) rendered by a company for private use within its
organization, or
(2) used, allocated, or distributed by a company to
its affiliated group,
f. Regulatory assessments and charges, including charges
to fund the Oklahoma Universal Service Fund, the
Oklahoma Lifeline Fund and the Oklahoma High Cost
Fund, and
g. Telecommunications nonrecurring c harges, including but
not limited to the installation, connection, change or
initiation of telecommunications services which are
not associated with a retail consumer sale;
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19. Sales of railroad track spikes manufactured and sold for
use in this state in the construction or repair of railroad tracks,
switches, sidings and turnouts;
20. Sales of aircraft and aircraft parts provided such sales
occur at a qualified aircraft maintenance facility. As used in this
paragraph, "qualified aircraft maintenance fac ility" means a
facility operated by an air common carrier, including one or more
component overhaul support buildings or structur es in an area owned,
leased or controlled by the air common carrier, at which there were
employed at least two thousand (2,000) full-time-equivalent
employees in the preceding year as certified by the Oklahoma
Employment Security Commission and which is pr imarily related to the
fabrication, repair, alteration, modification, refurbishing,
maintenance, building or rebuilding of comm ercial aircraft or
aircraft parts used in air common carriage. For purposes of this
paragraph, "air common carrier" shall also i nclude members of an
affiliated group as defined by Section 1504 of the Internal Revenue
Code, 26 U.S.C., Section 1504. Beginn ing July 1, 2012, sales of
machinery, tools, supplies, equipment and related tangible personal
property and services used or cons umed in the repair, remodeling or
maintenance of aircraft, aircraft engines , or aircraft component
parts which occur at a quali fied aircraft maintenance facility;
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21. Sales of machinery and equipment purchased and used by
persons and establishments primar ily engaged in computer services
and data processing:
a. as defined under Industrial Group Numbers 7372 and
7373 of the Standard Industrial Classification (SIC)
Manual, latest version, which derive at least fifty
percent (50%) of their annual gross revenue s from the
sale of a product or service to an out -of-state buyer
or consumer, and
b. as defined under Industrial Group Number 7 374 of the
SIC Manual, latest version, which derive at least
eighty percent (80%) of their annual gross revenues
from the sale of a product or service to an out -of-
state buyer or consumer.
Eligibility for the exemption set out in this paragraph shall be
established, subject to review by the Tax Commission, by annually
filing an affidavit with the Tax Commission stating that the
facility so qualifies and such information as required by the Tax
Commission. For purposes of determining whether annual gross
revenues are derived from sales to out -of-state buyers or consumers,
all sales to the federal government shall be considered to be t o an
out-of-state buyer or consumer;
22. Sales of prosthetic devices to an individual for use by
such individual. For purpose s of this paragraph, "prosthetic
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device" shall have the same meaning as provided in Section 1357.6 of
this title, but shall not include corrective eye glasses, contact
lenses or hearing aids;
23. Sales of tangible personal property or services to a motion
picture or television production company to be used or consumed in
connection with an eligible production. For purposes of this
paragraph, "eligible production" means a documentary, special, music
video, or a television commercial or television program t hat will
serve as a pilot for or be a segment of an ongoing dramatic or
situation comedy series filmed or taped for network or national or
regional syndication or a feature -length motion picture intended for
theatrical release or for network or national or regional
syndication or broadcast. The provisions of this paragraph shall
apply to sales occurring on or after July 1, 199 6. In order to
qualify for the exemption, the motion picture or television
production company shall file any documentation and info rmation
required to be submitted pursuant to rules promulgated by the Tax
Commission;
24. Sales of diesel fuel sold for con sumption by commercial
vessels, barges and other commercial watercraft;
25. Sales of tangible personal property or services to tax -
exempt independent nonprofit biomedical research foundations that
provide educational programs for Oklahoma science students and
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teachers and to tax-exempt independent nonprofit community blood
banks headquartered in this state;
26. Effective May 6, 1992, sales of wireless telecommunications
equipment to a vendor who subsequently transfers the equipment at no
charge or for a discounted charge to a consumer as part of a
promotional package or as an inducement to commence or continue a
contract for wireless telecommunications services;
27. Effective January 1, 1991, leases of rail transportation
cars to haul coal to coal -fired plants located in this state which
generate electric power;
28. Beginning July 1, 2005, sales of aircraft engine repairs,
modification, and replacement parts, sales of aircraft frame repairs
and modification, aircraft interior modification, and paint, and
sales of services employed in the repair, modification and
replacement of parts of aircraft engines, aircraft frame and
interior repair and modification, and paint;
29. Sales of materials and supplies to the owner or operator of
a ship, motor vessel or ba rge that is used in interstate or
international commerce if the materials and supplies:
a. are loaded on the ship, motor vessel or b arge and used
in the maintenance and operation of the ship, motor
vessel or barge, or
b. enter into and become component par ts of the ship,
motor vessel or barge;
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30. Sales of tangible personal property made at estate sales at
which such property is offer ed for sale on the premises of the
former residence of the decedent by a person who is not required to
be licensed pursuant to the Transient Merchant Licensing Act, or who
is not otherwise required to obtain a sales tax permit for the sale
of such property pursuant to the provisions of Section 1364 of this
title; provided:
a. such sale or event may not be held for a period
exceeding three (3) consecutive days,
b. the sale must be conducted within six (6) months of
the date of death of the decedent, and
c. the exemption allowed by this paragraph shall not be
allowed for property that was not part of the
decedent's estate;
31. Beginning January 1, 2004, sales of electricity and
associated delivery and transmission services, when sold exclusively
for use by an oil and gas operator for reservoir dewatering projects
and associated operations commencing on or after July 1, 2003, in
which the initial water -to-oil ratio is greater than or equal to
five-to-one water-to-oil, and such oil and gas development projects
have been classified by the Corporation Commission as a reservoir
dewatering unit;
32. Sales of prewritten computer software that is delivered
electronically. For purposes of this paragraph, "delivered
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electronically" means delivered to the purchaser by m eans other than
tangible storage media;
33. Sales of modular dwelling units when built at a production
facility and moved i n whole or in parts, to be assembled on -site,
and permanently affixed to the real property and used for
residential or commercial pu rposes. The exemption provided by this
paragraph shall equal forty -five percent (45%) of the total sales
price of the modular dwelling unit. For purposes of this paragraph,
"modular dwelling unit" means a structure that is not subject to the
motor vehicle excise tax imposed pursuant to Section 2103 of this
title;
34. Sales of tangible personal property or services to :
a. persons who are residents of Oklahoma and have been
honorably discharged from active service in any branch
of the Armed Forces of the U nited States or Oklahoma
National Guard and who have been certified by the
United States Department of Veterans Affairs or i ts
successor to be in receipt of disability compensation
at the one-hundred-percent rate and the disability
shall be permanent and h ave been sustained through
military action or accident or resulting from disease
contracted while in such active service and registered
with the veterans registry created by the Oklahoma
Department of Veterans Affairs; provided, that if the
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veteran received the sales tax exemption prior to
November 1, 2020, he or she shall be required to
register with the veterans registry prio r to July 1,
2023, in order to remain qualified, or
b. the surviving spouse of such the person in
subparagraph a of this paragraph if the person is
deceased and the spouse has not remarried ; provided,
sales. Sales for the benefit of the an eligible
person to a spouse of the eligible person or to a
member of the household in which the eligible person
resides and who is authorized to ma ke purchases on the
person's behalf, when such eligible person is not
present at the sale, shall also be exempt for purposes
of this paragraph. The Oklahoma Tax Commission shall
issue a separate exemption card to a spouse of an
eligible person or to a mem ber of the household in
which the eligible person resides who is authorized to
make purchases on the person's behalf, if req uested by
the eligible person. Sales qualifying for the
exemption authorized by this paragraph shall not
exceed Twenty-five Thousand Dollars ($25,000.00) per
year per individual while the disabled veteran is
living. Sales qualifying for the exemption aut horized
by this paragraph shall not exceed One Thousand
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Dollars ($1,000.00) per year for an unremarried
surviving spouse. Upon requ est of the Tax Commission,
a person asserting or claiming the exemption
authorized by this paragraph shall provide a
statement, executed under oath, that the total sales
amounts for which the exemption is applicable have not
exceeded Twenty-five Thousand Dollars ($25,000.00) per
year per living disabled veteran or One Thousand
Dollars ($1,000.00) per year for an unremarried
surviving spouse. If the amount of such exempt sales
exceeds such amount, the sales tax in excess of the
authorized amount shall be tr eated as a direct sales
tax liability and may be recovered by the Tax
Commission in the same manner provided by law for
other taxes, including penalty and interest . The Tax
Commission shall promulgate any rules necessary to
implement the provisions of thi s paragraph, which
shall include rules providing for the disclosure of
information about persons eligible for the exemption
authorized in this paragraph to the Oklahoma
Department of Veteran’s Affairs, as authorized in
Section 205 of this title ;
35. Sales of electricity to the operator, specifically
designated by the Corporation Commission, of a spacing unit or lease
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from which oil is produced or attempted to be produced using
enhanced recovery methods, including, but not limited to, increased
pressure in a producing formation through the use of water or
saltwater if the electrical usage is associated with and necessary
for the operation of equipment required to inject or circulate
fluids in a producing formation for the purpose of forcing oil or
petroleum into a wellbore for eventual recovery and production from
the wellhead. In order to be eligible for the sales tax exemption
authorized by this paragraph, the total content of oil recovered
after the use of enhanced recovery methods shall not exceed one
percent (1%) by volume. The exemption authorized by this paragraph
shall be applicable only to the state sales tax rate and s hall not
be applicable to any county or municipal sales tax rate;
36. Sales of intrastate charter and tour bus transportation.
As used in this paragraph, "intrastate charter and tour bus
transportation" means the transportation of persons from one
location in this state to another location in this state in a motor
vehicle which has been constructed in such a manner that it may
lawfully carry more than eighteen persons, and which is ordinarily
used or rented to carry persons for compensation. Provid ed, this
exemption shall not apply to regularly scheduled bus transportation
for the general public;
37. Sales of vitamins, minerals and dietary supplements by a
licensed chiropractor to a person who is the patient of such
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chiropractor at the physical loc ation where the chiropractor
provides chiropractic care or services to such patient. The
provisions of this paragraph shall not be applic able to any drug,
medicine or substance for which a prescription by a licensed
physician is required;
38. Sales of goods, wares, merchandise, tangible personal
property, machinery and equipment to a web search portal located in
this state which derives at least eighty percent (80%) of its annual
gross revenue from the sale of a product or service to an out -of-
state buyer or consumer. For purposes of this paragraph, "web
search portal" means an establishment classified under NAICS code
519130 which operate s websites that use a search engine to generate
and maintain extensive databases of Internet addresses and content
in an easily searchable format;
39. Sales of tangible personal property consumed or
incorporated in the construction or expansion of a facil ity for a
corporation organized under Section 437 et seq. of Title 18 of the
Oklahoma Statutes as a rural electric coo perative. For purposes of
this paragraph, sales made to a contractor or subcontractor that has
previously entered into a contractual rela tionship with a rural
electric cooperative for construction or expansion of a facility
shall be considered sales made to a rural electric cooperative;
40. Sales of tangible personal property or services to a
business primarily engaged in the repair of con sumer electronic
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goods, including, but not limited to, cell phones, compact disc
players, personal computers, MP3 play ers, digital devices for the
storage and retrieval of information through hard -wired or wireless
computer or Internet connections, if the devices are sold to the
business by the original manufacturer of such devices and the
devices are repaired, refitted o r refurbished for sale by the entity
qualifying for the exemption authorized by this paragraph directly
to retail consumers or if the devi ces are sold to another business
entity for sale to retail consumers;
41. On or after July 1, 2019, and prior to July 1, 2024, sales
or leases of rolling stock when sold or leased by the manufacturer,
regardless of whether the purchaser is a public servic es corporation
engaged in business as a common carrier of property or passengers by
railway, for use or consumption by a common carrier directly in the
rendition of public service. For purposes of this paragraph,
"rolling stock" means locomotives, autocar s and railroad cars and
"sales or leases" includes railroad car maintenance and retrofitting
of railroad cars for thei r further use only on the railways; and
42. Sales of gold, silver, platinum, palladium or other bullion
items such as coins and bars and legal tender of any nation, which
legal tender is sold according to its value as precious metal or as
an investment. As used in the paragraph, "bullion" means any
precious metal, including, but not limited to, gold, silver,
platinum and palladium, that is in such a state or condition that
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its value depends upon its precious metal content and not its form.
The exemption authorized by this paragraph shall not apply to
fabricated metals that have been processed or manufactured for
artistic use or as jewelry.
SECTION 3. AMENDATORY Section 1, Chapter 229, O.S.L.
2017, as last amended by Section 1, Ch apter 124, O.S.L. 2019 (72
O.S. Supp. 2020, Section 421), is amended to read as follows:
Section 421. A. The Oklahoma Department of Vete rans Affairs
shall create and maintain a registry of all veterans in this state
by January 1, 2020, which shall be tit led the "Oklahoma Veterans
Registry". The registry shall include the following information
regarding the veteran:
1. Name;
2. Military rank and branch of service;
3. Dates of service;
4. Percentage of service -connected disability, if applicable;
5. Date of death and place of interment, if applicable; and
6. Name of the veteran's spouse, if applicable.
B. As a component of the veteran s registry created pursuant to
subsection A of this section, the Oklahoma Department of Veterans
Affairs shall designa te those veterans within the registry as one
hundred percent (100%) service -disabled Oklahoma veterans, if
applicable. The registry desig nation shall also be maintained as a
separate list within the registry for all one hundred percent (100%)
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service-disabled Oklahoma veterans. The Department shall be
responsible for verification of all information provided through the
registry and shall v erify veteran service disability status at least
once every four (4) years or upon request of the Oklahoma Tax
Commission, as needed to verify eligibility for the sales tax
exemption authorized in paragraph 34 of Section 1357 of Title 68 of
the Oklahoma Statutes.
C. The Oklahoma Department of Veterans Affairs may promulgate
rules for implementing the provisions of this s ection.
D. For purposes of this section, "veteran" shall have the same
meaning as specified in Section 2 of this title.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
58-1-218 QD 1/15/2021 9:53:26 AM