Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB422 Compare Versions

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Version 2 (New)

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3		-	An Act
4		-	ENROLLED SENATE
5		-	BILL NO. 422 By: Simpson, Pederson, Hamilton
6		-	and Stephens of the Senate
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	27	+
	28	+	STATE OF OKLAHOMA
	29	+
	30	+	1st Session of the 58th Legislature (2021)
	31	+
	32	+	CONFERENCE COMMITTEE SUBSTITUTE
	33	+	FOR ENGROSSED
	34	+	SENATE BILL 422 By: Simpson of the Senate
7	35
8	36		and
9	37
10		-	Kerbs, Burns, Pfeiffer,
11		-	Caldwell (Trey), Lowe
12		-	(Dick), West (Rick), Moore,
13		-	Dobrinski, Fetgatter, Mize,
14		-	Strom, Vancuren, Grego,
15		-	McCall, Baker, Culver,
16		-	Frix, McDugle, Bashore,
17		-	Boles, Hardin (David) ,
18		-	Hilbert and Stegall of the
	38	+	Kerbs and Burns of the
19	39		House
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	43	+
	44	+	CONFERENCE COMMITTEE SUBSTITUTE
22	45
23	46		An Act relating to agriculture tax exemption;
24	47		amending 68 O.S. 2011, Section 1358.1, which relates
25	48		to sales tax exemptions; modifying language;
26	49		establishing documentary proofs of active agriculture
27	50		production for purposes of sales tax application;
28	51		directing acceptance of certain documents as proof of
29	52		eligibility; providing an effective date; and
30	53		declaring an emergency.
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35		-
36		-	SUBJECT: Sales tax exemption
37		-
38	58		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
39		-
40	59		SECTION 1. AMENDATORY 68 O.S. 2011, Section 1358.1, is
41	60		amended to read as follows:
42		-
43	61		Section 1358.1. A. In order to qualify for any exemption
44	62		authorized by Section 1358 of this title, at the time of sale, the
45	63		person to whom the sale is made shall be required to furnish the
46		-
47		-	ENR. S. B. NO. 422 Page 2
48	64		vendor proof of eligibili ty for the exemption as required by this
49	65		section.
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50	91
51	92		B. All vendors shall honor the proof of eligibility for sales
52	93		tax exemption as authorized by this sec tion and sales to a person
53	94		providing such proof shall be exempt from the tax levied by this
54	95		article, Section 1350 et seq. of this title.
55		-
56	96		C. The agricultural exemption permit, the size and design of
57	97		which shall be prescribed by the Oklahoma Tax Commission, shall
58	98		constitute proof of eligibility for sales tax exemptions authorized
59	99		by Section 1358 of this title . The permit shall be obtained by
60	100		listing personal property used in farming or ranching by the person
61	101		with the county assessor each year as provided by law. If the
62	102		assessor determines that the personal property is correctly listed
63	103		and assessed for ad val orem taxation and the county treasurer
64	104		certifies whether the person has delinquent accounts appearing on
65	105		the personal property tax lien docket in the co unty treasurer’s
66	106		office, the assessor shall certify the assessment upon a form
67	107		prescribed by the Oklahom a Tax Commission. One copy shall be
68	108		retained by the assessor, one copy shall be forwarded to the
69	109		Oklahoma Tax Commission and one copy shall be given to the person
70	110		listing the personal property. Upon verification that the applicant
71	111		qualifies for the exemp tions authorized by Section 1358 of this
72	112		title and that the applicant has no delinquent accounts appearing on
73	113		the personal property tax lien docket in t he office of the county
74	114		treasurer, a permit shall be issued as prescribed by this section.
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75	141		The permit shall be renewable every three (3) years in the manner
76	142		provided by this section.
77		-
78	143		D. A person who does not otherwise qualify for a permit
79	144		pursuant to subsection C of this section, except as provided in
80	145		subsection E of this section, shall file with the O klahoma Tax
81	146		Commission an application for an agricultural exemption permit
82	147		constituting proof of eligibility for the sales tax exemptions
83	148		authorized by Section 1358 of this title, setting forth such
84	149		information as the Tax Commission may require. The application
85	150		shall be certified by the applicant that the applicant is engaged in
86	151		custom farming operations or i n the business of farming or ranching.
87	152		If the applicant is a corporation, the application shall be
88	153		certified by a legally constituted officer thereof.
89		-
90		-
91		-	ENR. S. B. NO. 422 Page 3
92	154		The Oklahoma Tax Commi ssion shall accept any of the following as
93	155		proof of eligibility for the exemptions autho rized by this section
94	156		or pursuant to Section 1358 of this title .
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96	157		1. A copy of IRS Schedule F, a copy of IRS form 1065 or a copy
97	158		of IRS form 4835, or any equivalent form prescribed by the Internal
98	159		Revenue Service, with respect to a fe deral income tax return;
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100	160		2. A one-page business description form provided by the
101	161		Oklahoma Tax Commission;
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103	162		3. Farm Service Agency form 156EZ; or
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105	163		4. Other documents at the discretion of the Oklahoma Tax
106	164		Commission that verify active agriculture production.
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107	190
108	191		E. Except as provided in this subsection, for a person who is a
109	192		resident of another state and w ho is engaged in custom farming
110	193		operations in this state, the person shall provide the vendor proof
111	194		of residency, the name, address and telephone number of the person
112	195		engaging the custom farmer and certification on the face of the
113	196		invoice, under the penalt y of perjury, that the property purchased
114	197		shall be used in agricultural pro duction as proof of eligibility for
115	198		the sales tax exemption authorized by Sec tion 1358 of this title.
116	199		Any person who is a resident of another state and who is engaged in
117	200		custom farming operations in this state and who owns property in
118	201		this state, shall ob tain proof of eligibility as provided in
119	202		subsection C or D of this section.
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121	203		F. If an agricultural exemption permit holder purchases
122	204		tangible personal property from a vendor on a re gular basis, the
123	205		permit holder may furnish the vendor proof of eligibility as
124	206		provided for in subsections C and D of this section and the vendor
125	207		may subsequently make sales of tangible personal property to the
126	208		permit holder without requiring proof of eligi bility for each
127	209		subsequent sale. Provided, the permit holder shall notify the
128	210		vendor of all purchases which are not exempt from sales tax under
129	211		the provisions of Section 1358 of this title and remit the
130	212		applicable amount of tax thereon. If the permit hol der fails to
131	213		notify the vendor of purchases not exempt from sales tax, then
132	214		sufficient grounds shall exist for the Oklahoma Tax Commission to
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134		-	ENR. S. B. NO. 422 Page 4
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135	241		cancel the agricultural exemption permit of the permit holder who so
136	242		failed to notify the vendor.
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138	243		G. If an out-of-state agricultural exemption permit holder
139	244		purchases tangible personal pro perty from a vendor within this state
140	245		who is not in the business of shipping the tangible personal
141	246		property purchased, then the out -of-state agricultural exemption
142	247		permit holder is responsible for providing an export bill of lading
143	248		or other documentation t o the vendor from whom the tangible personal
144	249		property was purchased showing t hat the point of delivery of such
145	250		goods for use and consumption is outside the State of Oklahoma this
146	251		state.
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148	252		H. A purchaser who uses an agricultural exemption permit or
149	253		provides proof of eligibility pursuant to subsection E of this
150	254		section to purchase, exempt from s ales tax, items not authorized for
151	255		exemption under Section 1358 of this title shall be subjec t to a
152	256		penalty in the amount of Five Hundred Dollars ($500.00).
153		-
154	257		SECTION 2. This act shall become effective July 1, 2021.
155		-
156	258		SECTION 3. It being immediately necessary for the preservation
157	259		of the public peace, health or safety, an emergency is hereby
158	260		declared to exist, by reason whereof this act shall take effect and
159	261		be in full force from and after its passage and approval.
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162		-	ENR. S. B. NO. 422 Page 5
163		-	Passed the Senate the 19th day of May, 2021.
164		-
165		-
166		-
167		-	Presiding Officer of the Senate
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169		-
170		-	Passed the House of Representatives the 24th day of May, 2021.
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174		-	Presiding Officer of the House
175		-	of Representatives
176		-
177		-	OFFICE OF THE GOVERNOR
178		-	Received by the Office of the Governor this _______ _____________
179		-	day of ___________________, 20_______, at _______ o'clock _______ M.
180		-	By: _______________________________ __
181		-	Approved by the Governor of the State of Oklahoma this _____ ____
182		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
183		-
184		-	_________________________________
185		-	Governor of the State of Oklahoma
186		-
187		-
188		-	OFFICE OF THE SECRETARY OF STATE
189		-	Received by the Office of the Secretary of State this _______ ___
190		-	day of __________________, 20 _______, at _______ o'clock _______ M.
191		-	By: _____________________ ____________
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