ENGR. S. B. NO. 79 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ENGROSSED SENATE
BILL NO. 79 By: Thompson of the Senate
and
Wallace of the House
An Act relating to sales tax; amending 68 O.S. 2011,
Section 1356, as last amended by Section 1, Chapter
413, O.S.L. 2019 (68 O.S. Supp. 2020, Section 1356),
which relates to exemptions; modifying exemption for
sales to certain subdivision s of the state by adding
University Hospitals Trust; expanding exemption for
specified transfers to or by University Hospitals
Trust by including certain nonprofit entities; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2011, Section 1356, as
last amended by Sectio n 1, Chapter 413, O.S.L. 2019 (68 O.S. Supp.
2020, Section 1356), is amended to read as follows:
Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby specif ically exempted from the tax levied by
Section 1350 et seq. of this tit le:
1. Sale of tangible personal property or services to the United
States government or to the S tate of Oklahoma, any political
subdivision of this state or any agency of a political subdivision
of this state; provided, all sales to contractors in connec tion with
the performance of any contract with the United States government,
State of Oklahoma or any of its political subdivisions shall not be
ENGR. S. B. NO. 79 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 contract
with agencies or instrumentalities of the Unit ed States government
if ownership and possession of such property transfers immediately
to the United States government;
3. Sales of property to agents appoi nted by or under contract
with a political subdivision of this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and posse ssion of such property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county, district or state fair
authorities of this state, upon the pre mises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county, district or state fair authorities; provided,
the exemption provided by th is paragraph for admission tickets to
fair events shall apply only to a ny portion of the admission price
that is retained by or distributed to the fair authority. As us ed
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;
ENGR. S. B. NO. 79 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. Sale of food in cafeterias or lunch rooms of elementary
schools, high schools, colleges or universities which are operated
primarily for teachers an d pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, charitable or
educational societies or organizations by regular members thereof,
provided, such societies or organizations operate under wha t is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inures
to the benefit of any individual mem ber or members thereof to the
exclusion of other members and dues paid monthly or annua lly to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libraries with students
interested in the study of ge ology, petroleum engineering or related
subjects;
7. Sale of tangible personal propert y or services to or by
churches, except sales made in the course of bus iness for profit or
savings, competing with other persons engaged in the same or a
similar business or sale of tangible personal property or services
by an organization exempt from fede ral income tax pursuant to
Section 501(c)(3) of the Internal Revenue Co de of 1986, as amended,
made on behalf of or at the request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to e xceed three (3) days by the organization
ENGR. S. B. NO. 79 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 separate ly stated on the ticket of admission for
the repayment of money borrowe d by any accredited state-supported
college or university or any public trust of which a county in this
state is the beneficiary, for the purpose of constructing or
enlarging any facili ty to be used for the staging of an athletic
event, a theatrical produc tion, or any other form of entertainment,
edification or cultural cultivation to which entry is ga ined 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 t icket shall 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 pers onal property or services to the
council organizations or similar state supervisory org anizations 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 district, public school district,
the institutions of The Oklahoma State System o f Higher Education,
ENGR. S. B. NO. 79 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the Grand River Dam Authority, the Northeast Oklaho ma Public
Facilities Authority, the Oklahoma Municipal Power Authority, City
of Tulsa-Rogers County Port Authority, Muskogee City -County Port
Authority, the Oklahoma Department of Veter ans Affairs, the Broken
Bow Economic Development Authority, Ardmore Dev elopment Authority,
Durant Industrial Authority, Oklahoma Ordnance Works Authority,
Central Oklahoma Master Conservancy District, Arbuckle Master
Conservancy District, Fort Cobb Master Conservancy District, Foss
Reservoir Master Conservancy District, Mount ain Park Master
Conservancy District, Waurika Lake Master Conservancy District,
University Hospitals Trust, Office of Management and Enterprise
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 pursuant to law,
necessary for carrying out such public contract or to any
subcontractor to such a public contract. An y person making
purchases on behalf of such subdivision or agency of this state
shall certify, in writing, on the copy of the invoice or sales
ticket to be retained by the vendor that t he purchases are made for
and on behalf of such subdivision or agency o f 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
ENGR. S. B. NO. 79 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 incarcerated for not more than sixty
(60) days or both;
11. Sales of tangible personal property or services to private
institutions of higher education and private elementary and
secondary institutions of education accredit ed 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 t he provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
including materials, supplies, and equipment used in the
construction and improvemen t of buildings and other structures owned
by the institutions and operated for educational purposes.
Any person, firm, agency or entity making purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the cop y of the invoice or sales ticket the nature of
the purchases, and violation of this paragraph shall be a
misdemeanor as set forth in paragraph 10 of this section;
12. Tuition and educa tional fees paid to private institutions
of higher education and privat e elementary and secondary
institutions of education accredited by the State Department of
Education or registered by the State Board of Education for purposes
ENGR. S. B. NO. 79 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
of participating in feder al 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 Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made by :
(1) a public school,
(2) a private school offering instruction for gr ade
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 sub paragraph 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 district, public or
private school board or public or private school
student group or organi zation, or
b. Sales of tangible personal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
ENGR. S. B. NO. 79 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
nonprofit local public or pri vate school foundations
which solicit money or property in the name of any
public or private schoo l 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 Educa tion for purposes of
participating in federal programs. Sale of tangible personal
property in this paragraph 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 state 4 -H committees,
d. 4-H leader associations,
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 raising funds for the benefit 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 concessions at athletic events by each
ENGR. S. B. NO. 79 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Cod e, 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 Recreation Department has
entered into a public co ntract and which is necessary for carrying
out such contract to assist the Department in the development and
production of advertising, promotion, publicity and public r elations
programs;
17. Sales of tangible personal property or services to fire
departments organized pursuant 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 purcha ses on behalf of any such
fire department shall certify, in writing, 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 fire department and set
out the name of such fire department. Any person who wrongfully or
erroneously certifies that the purchases are for any suc h fire
department or who otherwise violates the provisions of this sect ion
shall be deemed 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 sixt y (60) days, or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibition, display or other
recreational events or activities which are issued through a box
ENGR. S. B. NO. 79 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
office or other entity which is operated by a state institution of
higher education with institutional employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal 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 departments selling tangible personal property for
the purposes of raising funds 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 services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army and which is exempt from taxation
pursuant to the provisions of the Int ernal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or serv ices to any
organization, which takes court -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., Section
501(c)(3), provided that at least fifty percent (50%) of the
juveniles served by such organization are court adjudicated and the
organization receives state funds in an amount less than ten percent
(10%) of the annual budget of the organization;
ENGR. S. B. NO. 79 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
22. Sales of tangible personal property or services to:
a. any health center as defined in Section 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 the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center as define d 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 tha t could have
otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
centers for the use of facilities and programs;
24. The first Fifteen Thous and Dollars ($15,000.00) each year
from sales of tangible personal property or services to or by a
cultural organization established to sponsor and promote
educational, charitable and c ultural events for disadvantaged
ENGR. S. B. NO. 79 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
children, and which organization is ex empt from taxation pursuant to
the provisions of the Internal 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 accredited by the American
Association of Museums. Any person making purchases on behalf of
any such museum or other entity shall certify, in writing, 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 museum or
other entity and set out the name of such museum or other entity.
Any person who wrongfully or erroneously certifies that the
purchases are for any such museum 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 inv olved 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 Museums. In order to be eligible for
the exemption provided by thi s paragraph, an amount equivalent to
the amount of the tax which would otherwise be req uired to be
collected pursuant to the provisions of Section 1350 et seq . of this
title shall be separately stated on the admission ticket and shall
be collected and used for the sole purpose of servicing or aiding in
ENGR. S. B. NO. 79 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the servicing of debt incurred by the m useum to effect the
construction, enlarging or renovation of any facili ty to be used for
entertainment, edification or cultural cultivation to which entry is
gained with a paid admission ticket;
27. Sales of tangible personal property or services occurrin g
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 America n Veterans, Department of
Oklahoma, Inc., and subordinate chapters ther eof;
29. Sales of tangible personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organization ;
30. Transfer of tangible personal property made pursuant to
Section 3226 of Title 63 of the Oklahoma Statutes or services to or
by:
a. the University Hospitals Trust created pursuant to
Section 3224 of Title 63 of the Oklahoma Statutes , or
b. nonprofit entities which are exempt from taxation
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 Hospital s Trust;
ENGR. S. B. NO. 79 Page 14 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 v endor;
32. Sales of tangible pers onal property or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storage, consumption, or distribution in
this state, whether by the importer, exporter, or ano ther person, of
any satellite or any associated launch vehicle, including components
of, and parts and motors for, any such satellite or launch vehi cle,
imported or caused to be imported into this state for the purpos e of
export by means of launching into space. This exemption provided by
this paragraph shall not 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 p ossession
of, the satellite or lau nch vehicle after launch;
34. The sale, lease, use, storage, consumption, or distribution
in this state of any sp ace facility, space propulsion system or
space vehicle, satellite, or station of any kind possessing space
flight capacity, including componen ts thereof;
ENGR. S. B. NO. 79 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
35. The sale, lease, use, storage, consumption, or distribution
in this state of tangible personal pr operty, placed on or used
aboard any space facility, space propulsion system or space vehicle,
satellite, or station possessing space flight c apacity, which is
launched into space, irrespective of whether such tangible property
is returned to this state fo r subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption, or distribution
in this state of tan gible personal property meeting the definition
of “section 38 property” as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, that is an integral
part of and used primarily in 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 s tate or by the
United States government, or any other property not specifically
suited to supporting space activity. The term “in support of space
flight”, for purposes of this paragraph, means the altering,
monitoring, controlling, regulating, adjusting, servicing, or
repairing of any space facility, space propulsion systems or space
vehicle, satellite, or station possessing space flight capacity,
including the components thereof;
ENGR. S. B. NO. 79 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
37. The purchase or lease of machin ery and equipment for use at
a fixed location in this state, which is use d exclusively in the
manufacturing, processing, compounding, or producing of any space
facility, space propulsion system or space vehicle, satellite, or
station of any kind possessing space flight capacity. Provided, the
exemption provided for in this par agraph shall not be allowed unless
the purchaser or lessee signs an affidavit stating that the item or
items to be exempted are for the exclusive use designated herein.
Any person furnishing a false affidavit to the vendo r for the
purpose of evading payme nt of any tax imposed by 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) an d (B)(i) of the
Internal Revenue Code of 1986, which is used as an integral part of
the manufacturing, processing, compounding, or producing of item s of
tangible personal property. Such term includes parts and
accessories only to the extent that the exemp tion thereof is
consistent with the provisions of this paragraph;
38. The amount of a surcharge or any other amount which is
separately stated on a n admission ticket which is imposed, collected
and used for the sole purpose of constructing, remodeling or
enlarging facilities of a public t rust having a municipality or
county as its sole beneficiary;
ENGR. S. B. NO. 79 Page 17 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a state park in thi s state,
which are made to an organizat ion 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 organized prima rily for the purpose
of supporting one or more state parks located in this state;
40. The sale, lease or us e of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State System of Higher Education,
private institutions of higher education 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., Section
501(c)(3);
42. Sales of tangible personal property or se rvices by an
organization which is exempt from taxation pursuant to t he
provisions of the Internal Revenue C ode, 26 U.S.C., Section
501(c)(3), in the course of conducting 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 described in Internal Reve nue Code, 26 U.S.C.,
ENGR. S. B. NO. 79 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise and gross recei pts
taxes;
43. Sales of tangible personal property or services 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. is affiliated with a comprehensive universi ty within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teache r training and
conducting events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each y ear
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic org anization exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(4), for the purposes of raising fu nds for the
benefit of the team;
45. Sales of tickets for admission to a collegiate athletic
event that is held in a facility owned or operat ed by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determi nes or is part of a tournament or
ENGR. S. B. NO. 79 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
tournament process for determining a conference tournament
championship, a conference championship, or a nat ional championship;
46. 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) and is operating the Oklahoma City Nationa l Memorial and
Museum, an affiliate of the National Park System;
47. Sales of tangible personal property or servi ces 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 which furnish financial support
to area veterans’ organizations to be used for the purpose of
constructing a memorial or museum;
48. Sales of tangible per sonal property or services on or after
January 1, 2003, 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) that is expending monies receiv ed from a private
foundation grant in conjunction with expenditures of local sales tax
revenue to construct a local public library;
49. Sales of tangible personal property or services to a state
that borders this sta te or any political subdivision of that state,
but only to the extent tha t the other state or political subdivision
ENGR. S. B. NO. 79 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
exempts or does not impose a tax on similar sales of items to 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 Technol ogy Student Organizations 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 single city, town or c ounty or multiple cities,
towns or counties or combination 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 purpo se of constructing
improvements to or expanding a hospital or nursing home owned and
operated by any such public trust or nonprofit entity prior to July
1, 2008, in counties with a population of less than one hundred
thousand (100,000) persons, according t o the most recent Federal
Decennial Census. As used in this paragraph, “constructing
improvements to or expanding” shall not mean any expense for r outine
maintenance or general repairs and shall require a project cos t of
at least One Hundred Thousand Doll ars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subcontractor that
enters into a contractual relationship with a p ublic trust or
nonprofit entity as described by this paragraph shall be considered
sales made to the public trust or nonprofit entity. The ex emption
ENGR. S. B. NO. 79 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
authorized by this paragraph shall be administered in the form of a
refund from the sales tax revenues app ortioned pursuant to Section
1353 of this title and the vendor shall be required to collect the
sales tax otherwise applicable to the transact ion. The purchaser
may apply for a refund of the sales tax paid in the manner
prescribed by this paragraph. With in thirty (30) days after the end
of each fiscal year, any purchaser that is entitled to make
application for a refund based upon the exempt t reatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such prece ding fiscal year. The Tax Commission
shall prescribe a form for purp oses of making the application for
refund. The Tax Commission shall dete rmine whether or not the total
amount of sales tax exemptions claimed by all purchasers is equal to
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 the full amount
of the documented and verified sales tax amounts. If such claims by
all purchasers are in excess of Six Hundred Fifty Thousand Dollars
($650,000.00), the Tax Commission shall determine the amount of each
purchaser’s claim, the total amount of all claims by all purchasers,
and the percentage each purchaser’s claim amount bears to t he 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
ENGR. S. B. NO. 79 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
purchaser. The pro rata refund amount shall be the only method 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 tangi ble personal property
or services to any organization which assists, trains, educates, and
provides housing for physically and mentally handic apped persons and
which is exempt from taxation pursuant 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 budget
from state or federal funds. In order to receiv e the benefit of the
exemption authorized by this paragraph, the taxpayer shall be
required to make payment of the applicable sales tax at the time of
sale to the vendor in the manner otherwise required by law.
Notwithstanding any other provision of the O klahoma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be authorized to
file a claim for refund of sales taxes paid that qualify for the
exemption authorized by this p aragraph for a period of one (1) year
after the date of the sale transact ion. The taxpayer shall be
required to provide documentation 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 treatment pursuant to t his
paragraph shall not exceed One Hundred Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
ENGR. S. B. NO. 79 Page 23 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
processed in the order in which such claims are received by the
Oklahoma Tax Commiss ion. If a claim otherwise timely filed exceeds
the total amount of refun ds payable for a fiscal year, such claim
shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each yea r 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 working directly with a law enforcement
agency with jurisdiction in the area in which the nei ghborhood watch
organization is located. As used in this paragraph, “qualified
neighborhood watch organizat ion” means an organization that is a
not-for-profit corporation under the laws of the State of Oklahoma
that was created to help prevent criminal ac tivity in an area
through community involvement and interaction with local law
enforcement and which is one of the first two thousand organiza tions
which makes application to the Oklahoma Tax Commission for the
exemption after March 29, 2006;
54. Sales of tangible 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 purpose of providing services to homeless persons
during the day and located in a metropolitan area with a population
in excess of five hundred thousand (500,000) persons according to
the latest Federal De cennial Census. The exemption authorized by
ENGR. S. B. NO. 79 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
this paragraph shall be applicable to sales of tangible 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 of wetlands and habitat for wild ducks;
56. 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 and conservation of wild turkeys;
57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Sect ion
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
ENGR. S. B. NO. 79 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
employment services, as well as job placement
opportunities and po st-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 Oklahoma Tax
Commission that over seventy-five percent (75%)
of its revenues are channeled in to 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 e quivalent to the charge that
would have otherwise been made, for admi ssion to a professional
athletic event in which a team in the National Ba sketball
Association is a participant, which is held in a facility owned or
operated by a municipality, a county o r 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 complime ntary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge t hat would have otherwise been made,
for admission to a professional a thletic event in which a team in
ENGR. S. B. NO. 79 Page 26 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
the National Hockey League is a particip ant, which is held in a
facility owned or operated by a municipality, a county or a public
trust of which a munici pality or a county is the sole beneficiary;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a v alue 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 in dividual athletes or both, 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 pursuant to the p rovisions of the Internal
Revenue Code, 26 U.S.C., Section 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 property or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
ENGR. S. B. NO. 79 Page 27 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
501(c)(3), and which is itself a member of an organiza tion which is
exempt from taxation pursuant to the provisions 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 fro m such health-related
diseases and conditions or their caregivers 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 paragr aph, the member nonprofit
organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the membership 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, preserving American
history and securing better education for children and which has at
least 168,000 members in 3,000 chapters acr oss the United States;
63. Sales of tangible personal property or servic es to or by a
YWCA or YMCA organization which is part of a national nonprofit
community service organization worki ng to meet the health and social
service needs of its members across the United States;
ENGR. S. B. NO. 79 Page 28 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
64. Sales of tangib le personal property or services t o or by a
veteran’s organization which is exempt from taxation 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 church 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 service in o rder to
purchase food. These boxes shall only contain edible staple food
items;
66. Sales of tangible pers onal property or services to any
person with whom a church has duly entered into a construction
contract, necessary for carrying out such contract o r to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable o r educational purposes, to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
ENGR. S. B. NO. 79 Page 29 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of deve lopmentally
disabled individuals, and
(3) promoting unity among developme ntally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or se rvices to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exem pt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3); provided, until July 1, 2008, such exemption shall apply
only to eligible shelters for children from birth to age twelve (12)
and after July 1, 2008, su ch exemption shall apply to eligib le
shelters for children from birth to age eighteen (18);
69. Sales of tangible personal property or services to a child
care center which is licensed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which :
ENGR. S. B. NO. 79 Page 30 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Program or a national
accreditation, and
b. allows on site universal pre-kindergarten education to
be provided to four-year-old children through a
contractual agreement with any public school or sch ool
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has entere d previously into a
contractual relationship with a child care center for construction
and improvement of bu ildings and other structures owned by the child
care center and operated for educational purposes shall be
considered sales made to a child care cen ter. Any such person,
firm, agency or entity making purchases on beh alf of a child care
center shall certify, in writing, on the copy of the invoice or
sales ticket the nature of the purchase. Any such person, or person
acting on behalf of a firm, agency or entity making purchases on
behalf of a child care center in viola tion of this paragraph shall
be guilty of a misdemeanor and upon convicti on 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 prope rty to a service
organization of mother s who have children who are
serving or who have served in the military, which
ENGR. S. B. NO. 79 Page 31 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
service organization is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(19) and whi ch is known as the
Blue Star Mothers of America, Inc. The exemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actually sent
to United States military personnel overseas who are
serving in a combat zone and n ot to any other tangible
personal property purchased by the organization.
Provided, this exemption 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 shal l be
administered in the form of a refu nd from the sales
tax revenues apportioned pursuant to Section 1353 of
this title, and the vendor shall be required to
collect the sales tax otherwi se applicable to the
transaction. The purchaser may apply for a refu nd of
the state sales tax paid in the m anner prescribed by
this paragraph. Within sixty (60) days after the end
of each calendar quarter, any purchaser that is
entitled to make applicati on for a refund based upon
the exempt treatment authorized by this pa ragraph may
file an application for refund of the state sales
ENGR. S. B. NO. 79 Page 32 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
taxes paid during such preceding calendar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that th e items were actually
sent to military personnel overseas in a combat zone.
Any purchaser that applies for a refund for the
purchase of items that are not authorized for
exemption under this paragraph shall be subjec t to a
penalty in the amount of Five Hu ndred Dollars
($500.00);
71. Sales of food and snack items 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 primary
and principal purpose is providing fundi ng for scholarships in the
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizat ions which are exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Sect ion 501(c)(3) and whose purpose is providing
end-of-life care and access to hospice services to low-income
individuals who live in a facility owned by the organization. The
exemption provided by this paragraph applie s to sales to the
organization as well as to sales to any person with who m the
ENGR. S. B. NO. 79 Page 33 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organization has duly entered into a construction contract,
necessary for carrying out such contract or to a ny subcontractor to
such a construction contract. Any person making purchases on behalf
of such organization shall certify, in writing, on th e copy of the
invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf o f such organization and set
out the name of such organization. Any p erson who wrongfully or
erroneously certifies that purchases are for any of the above-named
organizations 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 amoun t of sales tax involved or
incarcerated for not more than sixty (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 501(c)(3 ) that are
organized for the purpose of supporting general hospitals lice nsed
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 the Intern al Revenue Code, 26
U.S.C., Section 501(c)(3) and which raises tax -
deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
ENGR. S. B. NO. 79 Page 34 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
organizations that defend and foste r Second Amendment
rights, and
b. to or by a grassroots fundraising progr am for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of thi s
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provision s of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) which are related to a fundraising event
sponsored by the organization or entity when t he event does not
exceed any five (5) consecutive days and when the s ales are not in
the organization’s or the entity’s regular course of busi ness.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admittance to the f undraising event and items
which were donated to the organization or entity for sale at the
event;
76. Effective November 1, 2017, sales of t angible personal
property 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 operat es as a collaborative model
which connects community agencies in one loca tion to serve
individuals and families affected by violence and where victims have
access to services and advocacy at no cost to the victim;
ENGR. S. B. NO. 79 Page 35 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
77. Effective July 1, 2018, sales of tang ible personal property
or services to or by an association which is exemp t from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which i s known as the National Guard
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible person al property
or services to or by a n 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;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase is made by the entity
chartered by the United States Congress or is an entity organ ized
under the laws of this or another state pursuant to the authorit y of
the national American Legion organ ization; and
80. Sales of tangibl e personal property or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisi ons of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. verified with a letter from the MIT Fab F oundation 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
ENGR. S. B. NO. 79 Page 36 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
advanced 21st century manufacturing and digital
fabrication tools for science, technology ,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses and producing personalized products.
SECTION 2. This act shall become eff ective July 1, 2022.
Passed the Senate the 2nd day of March, 2021.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2021.
Presiding Officer of the House
of Representatives