OK
Oklahoma Senate Bill SB34

Oklahoma 2023 1st Special Session

Oklahoma Senate Bill SB34 Compare Versions

OldNewDifferences
11
22
3+ENGR. S. B. NO. 34x Page 1 1
4+2
5+3
6+4
7+5
8+6
9+7
10+8
11+9
12+10
13+11
14+12
15+13
16+14
17+15
18+16
19+17
20+18
21+19
22+20
23+21
24+22
25+23
26+24
327
4-An Act
5-ENROLLED SENATE
28+ENGROSSED SENATE
629 BILL NO. 34x By: Thompson (Roger) and Hall
730 of the Senate
831
932 and
1033
1134 Wallace and Martinez of the
1235 House
36+
1337
1438
1539
1640 An Act relating to sales tax; amending 68 O.S. 2021,
1741 Section 1357, as last amended by Section 1, Chapter
1842 512, O.S.L. 2021, which relates to sales tax
1943 exemption; stating intent; requiring exemption to be
2044 operative after certain date; amending 68 O.S. 2021,
2145 Section 1357.21, which relates to rebates for
2246 exemption and reporting requirements; terminating
2347 requirement that exemption b e based upon certain
2448 formula; transferring certain requirements to the
2549 Oklahoma Broadband Office; updating statutory
2650 reference; updating statutory language; and declaring
2751 an emergency.
2852
2953
3054
31-SUBJECT: Sales tax
3255
3356 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
34-
3557 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
3658 last amended by Section 1, Chapter 512, O .S.L. 2021, is amended to
3759 read as follows:
38-
3960 Section 1357. Exemptions – General.
40-
4161 There are hereby specif ically exempted from the tax levied by
4262 the Oklahoma Sales Tax Code:
43-
4463 1. Transportation of sch ool pupils to and from elementary
4564 schools or high schools in motor or other vehicles;
4665
66+ENGR. S. B. NO. 34x Page 2 1
67+2
68+3
69+4
70+5
71+6
72+7
73+8
74+9
75+10
76+11
77+12
78+13
79+14
80+15
81+16
82+17
83+18
84+19
85+20
86+21
87+22
88+23
89+24
4790
48-ENR. S. B. NO. 34x Page 2
4991 2. Transportation of persons where the fare of each person does
5092 not exceed One Dollar ($1.00), or local transporta tion of persons
5193 within the corporate limits of a munici pality except by taxicabs;
52-
5394 3. Sales for resale to persons engaged in the business of
5495 reselling the articles purchased, whether within or without the
5596 state, provided that such sales to residents of thi s state are made
5697 to persons to whom sales tax permits h ave been issued as provided in
5798 the Oklahoma Sales Tax Code. This exemption shall not apply to the
5899 sales of articles made to persons holding permits when such pers ons
59100 purchase items for their use and w hich they are not regularly
60101 engaged in the business of reselling; neither shall this exemption
61102 apply to sales of tangible personal property to peddlers, solicitors
62103 and other salespersons who do not have an established place of
63104 business and a sales tax perm it. The exemption provided by this
64105 paragraph shall apply to sales of motor fuel or diesel fuel to a
65106 Group Five vendor, but the use of such motor fuel or diesel fuel by
66107 the Group Five vendor shall not be exempt from th e tax levied by the
67108 Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
68109 is exempt from sales tax when the motor fuel is for shipment outside
69110 this state and consumed by a common carrier by rail in the conduct
70111 of its business. The sales tax shall apply to the purchase of motor
71112 fuel or diesel fuel in Oklahoma by a common carrier by r ail when
72113 such motor fuel is purchased for fueling, within this state, of any
73114 locomotive or other motorized flanged wheel equipment;
74115
116+ENGR. S. B. NO. 34x Page 3 1
117+2
118+3
119+4
120+5
121+6
122+7
123+8
124+9
125+10
126+11
127+12
128+13
129+14
130+15
131+16
132+17
133+18
134+19
135+20
136+21
137+22
138+23
139+24
140+
75141 4. Sales of advertising space in newspapers and periodicals;
76-
77142 5. Sales of programs relating to sporting and entertainment
78143 events, and sales of advertising on billboards (including signage,
79144 posters, panels, marquees, or on other similar surfaces, whether
80145 indoors or outdoors) or in progr ams relating to sporting and
81146 entertainment events, and sales of any advertising, to be displa yed
82147 at or in connection with a sporting event, via the Internet,
83148 electronic display devices, or through public address or broadcast
84149 systems. The exemption authori zed by this paragraph shall be
85150 effective for all sales made on or after January 1, 2001;
86-
87151 6. Sales of any advertising, other than the advertising
88152 described by paragraph 5 of this section, via the Internet,
89153 electronic display devices, or through the electro nic media,
90154 including radio, public add ress or broadcast systems, television
91-
92-ENR. S. B. NO. 34x Page 3
93155 (whether through closed circuit broadcasting systems or otherwise),
94156 and cable and satellite television, and the servicing of any
95157 advertising devices;
96-
97158 7. Eggs, feed, supplies, mach inery and equipment purchased by
98159 persons regularly engaged in the business of raising worms, fish,
99160 any insect or any other form of terrestrial or aquatic animal life
100161 and used for the purpose of raising same for marketing. This
101162 exemption shall only be gran ted and extended to the purchaser when
102163 the items are to be used and in fact are used in the r aising of
103164 animal life as set out above. Each purchaser shall certify, in
165+
166+ENGR. S. B. NO. 34x Page 4 1
167+2
168+3
169+4
170+5
171+6
172+7
173+8
174+9
175+10
176+11
177+12
178+13
179+14
180+15
181+16
182+17
183+18
184+19
185+20
186+21
187+22
188+23
189+24
190+
104191 writing, on the invoice or sales ticket retained by the vendor that
105192 the purchaser is regu larly engaged in the business of raisi ng such
106193 animal life and that the items purchased will b e used only in such
107194 business. The vendor shall certify to the Oklahoma Tax Commission
108195 that the price of the items has been reduced to grant the full
109196 benefit of the exemption. Violation hereof by the purchaser or
110197 vendor shall be a misdemeanor;
111-
112198 8. Sale of natural or artificial gas and electricity, and
113199 associated delivery or transmission services, when sold exclusively
114200 for residential use. Provided, this exemption shall not apply to
115201 any sales tax levied by a city or town, or a county, or any other
116202 jurisdiction in this state;
117-
118203 9. In addition to the exemptions authorized by Section 1357.6
119204 of this title, sales of drugs sold pursuant to a prescription
120205 written for the treatment of human beings by a person li censed to
121206 prescribe the drugs, and sales of insulin and medical oxygen.
122207 Provided, this exemption shall not apply to over-the-counter drugs;
123-
124208 10. Transfers of title or possession of empty, partially
125209 filled, or filled returnable oil and chemical drums to an y person
126210 who is not regularly engaged in the business o f selling, reselling
127211 or otherwise transferring empty, partially filled, or filled
128212 returnable oil drums;
129213
214+ENGR. S. B. NO. 34x Page 5 1
215+2
216+3
217+4
218+5
219+6
220+7
221+8
222+9
223+10
224+11
225+12
226+13
227+14
228+15
229+16
230+17
231+18
232+19
233+20
234+21
235+22
236+23
237+24
238+
130239 11. Sales of one-way utensils, paper napkins, paper cups,
131240 disposable hot containers and other on e-way carry out materials to a
132241 vendor of meals or bever ages;
133-
134-
135-ENR. S. B. NO. 34x Page 4
136242 12. Sales of food or food products for home consumption which
137243 are purchased in whole or in part with coupons issued pursuant to
138244 the federal food stamp progr am as authorized by Sections 2011
139245 through 2029 of Title 7 of the United States Code, as to th at
140246 portion purchased with such coupons. The exemption provided for
141247 such sales shall be inapplicable to such sales upon the effective
142248 date of any federal law that removes the requirement of the
143249 exemption as a condition for participation by the state in the
144250 federal food stamp program;
145-
146251 13. Sales of food or food products, or any equipment or
147252 supplies used in the preparation of the food or food products to or
148253 by an organization which:
149-
150254 a. is exempt from taxation pursuant to the provisions of
151255 Section 501(c)(3) of the Internal Revenue Code, 26
152256 U.S.C., Section 501(c)(3), and which provides and
153257 delivers prepared meals for home consumption to
154258 elderly or homebound persons as p art of a program
155259 commonly known as “Meals on Wheels” or “Mobile Meals”,
156260 or
157-
158261 b. is exempt from taxation pursuant to the provisions of
159262 Section 501(c)(3) of the Internal Revenue Code, 26
263+
264+ENGR. S. B. NO. 34x Page 6 1
265+2
266+3
267+4
268+5
269+6
270+7
271+8
272+9
273+10
274+11
275+12
276+13
277+14
278+15
279+16
280+17
281+18
282+19
283+20
284+21
285+22
286+23
287+24
288+
160289 U.S.C., Section 501(c)(3), and which receives federal
161290 funding pursuant to the Older Americans Act of 1965,
162291 as amended, for the purpose of providing nutrition
163292 programs for the care and benefit of elderly persons;
164-
165293 14. a. Sales of tangible personal property or services to or
166294 by organizations which are exempt from taxation
167295 pursuant to the provisions of Section 501(c)(3 ) of the
168296 Internal Revenue Code, 26 U.S.C., Section 501( c)(3),
169297 and:
170-
171298 (1) are primarily involved in the collection and
172299 distribution of food and other household products
173300 to other organizations that facilitate the
174301 distribution of such products to the needy and
175302 such distributee organizations are exempt from
176303 taxation pursuant to the provisions of Section
177-
178-ENR. S. B. NO. 34x Page 5
179304 501(c)(3) of the Internal Revenue Code, 26
180305 U.S.C., Section 501(c)(3), or
181-
182306 (2) facilitate the distribution of such products to
183307 the needy.
184-
185308 b. Sales made in the cours e of business for profit or
186309 savings, competing with oth er persons engaged in the
187310 same or similar business shall not be exempt under
188311 this paragraph;
312+
313+ENGR. S. B. NO. 34x Page 7 1
314+2
315+3
316+4
317+5
318+6
319+7
320+8
321+9
322+10
323+11
324+12
325+13
326+14
327+15
328+16
329+17
330+18
331+19
332+20
333+21
334+22
335+23
336+24
189337
190338 15. Sales of tangible personal property or services to
191339 children’s homes which are located on church-owned property and are
192340 operated by organizations exempt from t axation pursuant to the
193341 provisions of the Internal Revenue Code, 26 U.S.C., Section
194342 501(c)(3);
195-
196343 16. Sales of computers, data processing equipment, related
197344 peripherals and telephone, telegraph or teleco mmunications service
198345 and equipment for use in a qualifi ed aircraft maintenance or
199346 manufacturing facility. For purposes of this paragraph, “qualified
200347 aircraft maintenance or manufacturing facility ” means a new or
201348 expanding facility primarily engaged in air craft repair, building or
202349 rebuilding whether or not on a factory basis, whose total cost of
203350 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
204351 and which employs at least two hundred fifty (250) new fu ll-time-
205352 equivalent employees, as certi fied by the Oklahoma Employment
206353 Security Commission, up on completion of the facility. In order to
207354 qualify for the exemption provided for by this paragraph, the cost
208355 of the items purchased by the qualified aircraft mai ntenance or
209356 manufacturing facility sha ll equal or exceed the sum of Two Million
210357 Dollars ($2,000,000.00);
211-
212358 17. Sales of tangible personal property consumed or
213359 incorporated in the construction or expansion of a qualified
214360 aircraft maintenance or manufacturing facility as defined in
215361 paragraph 16 of this section. For purposes of this paragraph, sales
362+
363+ENGR. S. B. NO. 34x Page 8 1
364+2
365+3
366+4
367+5
368+6
369+7
370+8
371+9
372+10
373+11
374+12
375+13
376+14
377+15
378+16
379+17
380+18
381+19
382+20
383+21
384+22
385+23
386+24
387+
216388 made to a contractor or subcontractor that has previously entered
217389 into a contractual relationship with a qualified aircraft
218390 maintenance or manufacturing facility f or construction or expansion
219391 of such a facility shall be considered sales made to a qualified
220392 aircraft maintenance or manufacturing facility;
221-
222-ENR. S. B. NO. 34x Page 6
223-
224393 18. Sales of the following telecommunications services:
225-
226394 a. Interstate and International “800 service”. “800
227395 service” means a “telecommunications servi ce” that
228396 allows a caller to dial a toll -free number without
229397 incurring a charge for the call. The service is
230398 typically marketed under the name “800”, “855”, “866”,
231399 “877”, and “888” toll-free calling, and any subsequent
232400 numbers designated by the Federal Com munications
233401 Commission, or
234-
235402 b. Interstate and Internatio nal “900 service”. “900
236403 service” means an inbound toll “telecommunications
237404 service” purchased by a subscriber that allows the
238405 subscriber’s customers to call in to the subscriber’s
239406 prerecorded announce ment or live service. “900
240407 service” does not include the charge for: collection
241408 services provided by the seller of the
242409 “telecommunications services” to the subscriber, or
243410 service or product sold by the subscriber to t he
244411 subscriber’s customer. The service is typically
412+
413+ENGR. S. B. NO. 34x Page 9 1
414+2
415+3
416+4
417+5
418+6
419+7
420+8
421+9
422+10
423+11
424+12
425+13
426+14
427+15
428+16
429+17
430+18
431+19
432+20
433+21
434+22
435+23
436+24
437+
245438 marketed under the name “900” service, and any
246439 subsequent numbers designated by the Federal
247440 Communications Commission,
248-
249441 c. Interstate and International “private communications
250442 service”. “Private communications service” means a
251443 “telecommunications service” that entitles the
252444 customer to exclusive o r priority use of a
253445 communications channel or group of channels between or
254446 among termination points, regardless of the manner in
255447 which such channel or channels are connected, and
256448 includes switching cap acity, extension lines,
257449 stations, and any other associa ted services that are
258450 provided in connection with the use of such channel or
259451 channels,
260-
261452 d. “Value-added nonvoice data service”. “Value-added
262453 nonvoice data service ” means a service that otherwise
263454 meets the definition of “telecommunications services ”
264455 in which computer processing applications are used to
265-
266-ENR. S. B. NO. 34x Page 7
267456 act on the form, content, code, or protocol of the
268457 information or data primarily for a purpose other than
269458 transmission, conveyance or routing,
270-
271459 e. Interstate and International telecommunications
272460 service which is:
273461
462+ENGR. S. B. NO. 34x Page 10 1
463+2
464+3
465+4
466+5
467+6
468+7
469+8
470+9
471+10
472+11
473+12
474+13
475+14
476+15
477+16
478+17
479+18
480+19
481+20
482+21
483+22
484+23
485+24
486+
274487 (1) rendered by a company for private use within its
275488 organization, or
276-
277489 (2) used, allocated, or distributed by a company to
278490 its affiliated group,
279-
280491 f. Regulatory assessments and charges, including charg es
281492 to fund the Oklahoma Universal Service Fund, the
282493 Oklahoma Lifeline Fund and the Oklahoma High Cost
283494 Fund, and
284-
285495 g. Telecommunications nonrecurring charges, including but
286496 not limited to the installation, connection, cha nge or
287497 initiation of telecommunication s services which are
288498 not associated with a retail consu mer sale;
289-
290499 19. Sales of railroad track spikes manufactured and sold for
291500 use in this state in the construction or repair of railroad tracks,
292501 switches, sidings and t urnouts;
293-
294502 20. Sales of aircraft and ai rcraft parts provided such sales
295503 occur at a qualified a ircraft maintenance facility. As used in this
296504 paragraph, “qualified aircraft maintenance facility” means a
297505 facility operated by an air common carrier, including o ne or more
298506 component overhaul support buildings or structures in an area owned,
299507 leased or controlled by the air common carrier, at which there were
300508 employed at least two thousand (2,000) full-time-equivalent
301509 employees in the preceding year as certified by the Oklahoma
302510 Employment Security Commi ssion and which is primarily related to the
511+
512+ENGR. S. B. NO. 34x Page 11 1
513+2
514+3
515+4
516+5
517+6
518+7
519+8
520+9
521+10
522+11
523+12
524+13
525+14
526+15
527+16
528+17
529+18
530+19
531+20
532+21
533+22
534+23
535+24
536+
303537 fabrication, repair, alteration, modification, refurbishing,
304538 maintenance, building or rebuilding of commercial aircraft or
305539 aircraft parts used in air common carriage . For purposes of this
306540 paragraph, “air common carrier” shall also include members of an
307541 affiliated group as defined by Section 1504 of the Internal Revenue
308542 Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
309-
310-ENR. S. B. NO. 34x Page 8
311543 machinery, tools, supplies, equipment and r elated tangible personal
312544 property and services used or consumed in the repair, remodeling or
313545 maintenance of aircraft, aircraft engines, or aircraft component
314546 parts which occur at a qualified aircraft maintenance facility;
315-
316547 21. Sales of machinery and equipm ent purchased and used by
317548 persons and establishments primarily engaged in computer services
318549 and data processing:
319-
320550 a. as defined under Industrial Group Numbers 7372 and
321551 7373 of the Standard Industrial Classification (SIC)
322552 Manual, latest version, which derive at least fifty
323553 percent (50%) of their annual gross revenues from the
324554 sale of a product or se rvice to an out-of-state buyer
325555 or consumer, and
326-
327556 b. as defined under Industrial Group Number 7374 of the
328557 SIC Manual, latest version, which derive at least
329558 eighty percent (80%) of their annual gross reve nues
330559 from the sale of a product or service to an out -of-
331560 state buyer or consumer.
561+
562+ENGR. S. B. NO. 34x Page 12 1
563+2
564+3
565+4
566+5
567+6
568+7
569+8
570+9
571+10
572+11
573+12
574+13
575+14
576+15
577+16
578+17
579+18
580+19
581+20
582+21
583+22
584+23
585+24
332586
333587 Eligibility for the exemption set out in this paragraph shall be
334588 established, subject to review by the Tax Commission, by annually
335589 filing an affidavit with the Tax Commission stating that the
336590 facility so qualifies and such informa tion as required by the Tax
337591 Commission. For purposes of determining whether annual gross
338592 revenues are derived from sales to out-of-state buyers or consumers,
339593 all sales to the federal government shall be considered to be to an
340594 out-of-state buyer or consume r;
341-
342595 22. Sales of prosthetic devices to an individual for use by
343596 such individual. For purposes of this paragraph, “prosthetic
344597 device” shall have the same meaning a s provided in Section 1357.6 of
345598 this title, but shall not include corrective eye glasses, con tact
346599 lenses or hearing aids;
347-
348600 23. Sales of tangible personal property or services to a motion
349601 picture or television production company to be used or consumed in
350602 connection with an eligible production . For purposes of this
351603 paragraph, “eligible production” means a documentary, special, music
352604 video, or a television commercial or television program that will
353-
354-ENR. S. B. NO. 34x Page 9
355605 serve as a pilot for or be a segment of an ongoing dramatic o r
356606 situation comedy series filmed or ta ped for network or national or
357607 regional syndication or a feature-length motion picture intended for
358608 theatrical release or for network or national or regional
359609 syndication or broadcast. The provisions of this paragraph shall
360610 apply to sales occurring on or a fter July 1, 1996. In order to
611+
612+ENGR. S. B. NO. 34x Page 13 1
613+2
614+3
615+4
616+5
617+6
618+7
619+8
620+9
621+10
622+11
623+12
624+13
625+14
626+15
627+16
628+17
629+18
630+19
631+20
632+21
633+22
634+23
635+24
636+
361637 qualify for the exempti on, the motion picture or television
362638 production company shall file any documentation and information
363639 required to be submitted pursuant to rules promulgated by the Tax
364640 Commission;
365-
366641 24. Sales of diesel fuel sold for consumption by commercial
367642 vessels, barges and other commercial watercraft;
368-
369643 25. Sales of tangible personal property or services to tax-
370644 exempt independent nonprofit biomedical research foundations that
371645 provide educational programs for Oklahoma science students and
372646 teachers and to tax-exempt independent nonprofit community blood
373647 banks headquartered in this state;
374-
375648 26. Effective May 6, 1992, sales of wireless telecommunications
376649 equipment to a vendor who subseq uently transfers the equipment at no
377650 charge or for a discounted charge to a consumer as part of a
378651 promotional package or as an inducement to commence or continue a
379652 contract for wireless telecommunications services;
380-
381653 27. Effective January 1, 1991, leases of rail transportation
382654 cars to haul coal to coal-fired plants located in this state which
383655 generate electric power;
384-
385656 28. Beginning July 1, 2005, sales of aircraft engine repairs,
386657 modification, and replacement parts, sales of aircraft frame repairs
387658 and modification, aircraft interior modification, and paint, and
388659 sales of services employed in the repai r, modification and
660+
661+ENGR. S. B. NO. 34x Page 14 1
662+2
663+3
664+4
665+5
666+6
667+7
668+8
669+9
670+10
671+11
672+12
673+13
674+14
675+15
676+16
677+17
678+18
679+19
680+20
681+21
682+22
683+23
684+24
685+
389686 replacement of parts of aircraft engines, aircraft frame and
390687 interior repair and modification, and paint;
391-
392688 29. Sales of materials and supplies to the owner or operator of
393689 a ship, motor vessel or barge that is used in interstate or
394690 international commerce if the materials and supplies:
395-
396-
397-ENR. S. B. NO. 34x Page 10
398691 a. are loaded on the ship, motor vessel or barge and used
399692 in the maintenance and operation of the ship, motor
400693 vessel or barge, or
401-
402694 b. enter into and become component parts of the ship,
403695 motor vessel or barge;
404-
405696 30. Sales of tangible personal property made at estate sales at
406697 which such property is offered for sale on the premises of the
407698 former residence of the decedent by a person who is not required to
408699 be licensed pursuant to the Transient Merchant Licensing Act , or who
409700 is not otherwise required to obtain a sales tax permit for the sale
410701 of such property pursuant to the provisions of Section 1364 of this
411702 title; provided:
412-
413703 a. such sale or event may not be held f or a period
414704 exceeding three (3) consecutive days,
415-
416705 b. the sale must be conducted within six (6) months of
417706 the date of death of the decedent, and
418-
419707 c. the exemption allowed by this paragraph shall not be
420708 allowed for property that was not part of the
421709 decedent’s estate;
710+
711+ENGR. S. B. NO. 34x Page 15 1
712+2
713+3
714+4
715+5
716+6
717+7
718+8
719+9
720+10
721+11
722+12
723+13
724+14
725+15
726+16
727+17
728+18
729+19
730+20
731+21
732+22
733+23
734+24
422735
423736 31. Beginning January 1, 2004, sales of elect ricity and
424737 associated delivery and transmission services, when sold exclusively
425738 for use by an oil and gas operator for reservoir dewatering projects
426739 and associated operations commencing on or after Jul y 1, 2003, in
427740 which the initial water -to-oil ratio is greater than or equal to
428741 five-to-one water-to-oil, and such oil and gas development projects
429742 have been classified by the Corporation Commission as a reservoir
430743 dewatering unit;
431-
432744 32. Sales of prewritten c omputer software that is delivered
433745 electronically. For purposes of this paragraph, “delivered
434746 electronically” means delivered to the purchaser by means other than
435747 tangible storage media;
436-
437748 33. Sales of modular dwelling units when built at a production
438749 facility and moved in whole or in parts, to be assembled on -site,
439750 and permanently affixed to the real property and used for
440-
441-ENR. S. B. NO. 34x Page 11
442751 residential or commercial purposes. The exemption provided by this
443752 paragraph shall equal forty -five percent (45%) of the total sales
444753 price of the modular dwelling unit. For purposes of this paragraph,
445754 “modular dwelling unit” means a structure that is not subject to the
446755 motor vehicle excise tax imposed pursuant to Section 2103 of this
447756 title;
448-
449757 34. Sales of tangible personal property or ser vices to persons
450758 who are residents of Oklahoma and have been honorably discharged
451759 from active service in any branch of the Armed Forces of the United
760+
761+ENGR. S. B. NO. 34x Page 16 1
762+2
763+3
764+4
765+5
766+6
767+7
768+8
769+9
770+10
771+11
772+12
773+13
774+14
775+15
776+16
777+17
778+18
779+19
780+20
781+21
782+22
783+23
784+24
785+
452786 States or Oklahoma National Guard and who have been certified by the
453787 United States Department of Veterans Affairs or its successor to be
454788 in receipt of disability compensation at the one-hundred-percent
455789 rate and the disability shall be permanent and have been sustained
456790 through military action or accident or resulting from d isease
457791 contracted while in such active service or the surviving spouse of
458792 such person if the person is deceased and the spouse has not
459793 remarried; provided, sales for the benefit of the person to a spouse
460794 of the eligible person or to a member of the househo ld in which the
461795 eligible person reside s and who is authorized to make purchases on
462796 the person’s behalf, when such eligible person is not present at the
463797 sale, shall also be exempt for purposes of this paragraph. The
464798 Oklahoma Tax Commission shall issue a se parate exemption card to a
465799 spouse of an eligible person or to a member of the household in
466800 which the eligible person resides who is authorized to make
467801 purchases on the person’s behalf, if requested by the eligible
468802 person. Sales qualifying for the exemptio n authorized by this
469803 paragraph shall not exceed Twenty-five Thousand Dollars ($25,000.00)
470804 per year per individual while the disabled veteran is living. Sales
471805 qualifying for the exemption authorized by this paragraph shall not
472806 exceed One Thousand Dollars ( $1,000.00) per year for an unremarried
473807 surviving spouse. Upon request of the Tax Commission, a person
474808 asserting or claiming the exemption authorized by this paragraph
475809 shall provide a statement, executed under oath, that the total sales
810+
811+ENGR. S. B. NO. 34x Page 17 1
812+2
813+3
814+4
815+5
816+6
817+7
818+8
819+9
820+10
821+11
822+12
823+13
824+14
825+15
826+16
827+17
828+18
829+19
830+20
831+21
832+22
833+23
834+24
835+
476836 amounts for which the exemption is applicable have not ex ceeded
477837 Twenty-five Thousand Dollars ($25,000.00) per ye ar per living
478838 disabled veteran or One Thousand Dollars ($1,000.00) per year for an
479839 unremarried surviving spouse. If the amount of such exempt sales
480840 exceeds such amount, the sales tax in excess of the authorized
481841 amount shall be treated as a direct sales ta x liability and may be
482842 recovered by the Tax Commission in the same manner provided by law
483843 for other taxes, including penalty and interest;
484-
485-ENR. S. B. NO. 34x Page 12
486-
487844 35. Sales of electricity to the operator, specifically
488845 designated by the Corporation Commission, of a spacing unit o r lease
489846 from which oil is produced or attempted to be produced using
490847 enhanced recovery methods, including, but not limited to, increased
491848 pressure in a producing fo rmation through the use of water or
492849 saltwater if the electrical usage is associated with and necessary
493850 for the operation of equipment required to inject or circulate
494851 fluids in a producing formation for the purpose of forcing oil or
495852 petroleum into a wellbor e for eventual recovery and production from
496853 the wellhead. In order to be eligible for the sa les tax exemption
497854 authorized by this paragraph, the total content of oil recovered
498855 after the use of enhanced recovery methods shall not exceed one
499856 percent (1%) by volume. The exemption authorized by t his paragraph
500857 shall be applicable only to the state sal es tax rate and shall not
501858 be applicable to any county or municipal sales tax rate;
502859
860+ENGR. S. B. NO. 34x Page 18 1
861+2
862+3
863+4
864+5
865+6
866+7
867+8
868+9
869+10
870+11
871+12
872+13
873+14
874+15
875+16
876+17
877+18
878+19
879+20
880+21
881+22
882+23
883+24
884+
503885 36. Sales of intrastate charter and tour bus transportation .
504886 As used in this paragraph, “intrastate charter and tour bus
505887 transportation” means the transportation of person s from one
506888 location in this state to another location in this state in a motor
507889 vehicle which has been constructed in such a manner that it may
508890 lawfully carry more than eighteen persons, and which is or dinarily
509891 used or rented to carry persons for compensati on. Provided, this
510892 exemption shall not apply to regularly scheduled bus transportation
511893 for the general public;
512-
513894 37. Sales of vitamins, minerals and dietary supple ments by a
514895 licensed chiropractor to a person who is the patient of such
515896 chiropractor at the p hysical location where the chiropractor
516897 provides chiropractic care or services to such patient. The
517898 provisions of this paragraph shall not be applicable to any dr ug,
518899 medicine or substance for which a prescription by a licensed
519900 physician is required;
520-
521901 38. Sales of goods, wares, merchandise, tangible personal
522902 property, machinery and equipment to a web search portal located in
523903 this state which derives at least eighty percent (80%) of its annual
524904 gross revenue from the sale of a product or service to an out -of-
525905 state buyer or consumer. For purposes of this paragraph, “web
526906 search portal” means an establishment classified under NAICS code
527907 519130 which operates websites tha t use a search engine to generate
528908
529-ENR. S. B. NO. 34x Page 13
909+ENGR. S. B. NO. 34x Page 19 1
910+2
911+3
912+4
913+5
914+6
915+7
916+8
917+9
918+10
919+11
920+12
921+13
922+14
923+15
924+16
925+17
926+18
927+19
928+20
929+21
930+22
931+23
932+24
933+
530934 and maintain extensive databases of Internet addresses and content
531935 in an easily searchable format;
532-
533936 39. Sales of tangible personal property consumed or
534937 incorporated in the construction or expansion of a facility for a
535938 corporation organized under Section 437 et seq. of Title 18 of the
536939 Oklahoma Statutes as a rural e lectric cooperative. For purposes of
537940 this paragraph, sales made to a contractor or subcontractor that has
538941 previously entered into a contractual relationship with a rural
539942 electric cooperative for const ruction or expansion of a facility
540943 shall be considered sales made to a rural electric cooperative;
541-
542944 40. Sales of tangible personal property or services to a
543945 business primarily engaged in the repair of consumer electron ic
544946 goods, including, but not limited t o, cell phones, compact disc
545947 players, personal computer s, MP3 players, digital devices for the
546948 storage and retrieval of information through hard-wired or wireless
547949 computer or Internet connections, if the devices are so ld to the
548950 business by the original man ufacturer of such devices and the
549951 devices are repaired, refitted or refurbished for sale by the entity
550952 qualifying for the exemption authorized by this paragraph directly
551953 to retail consumers or if the devices are sold t o another business
552954 entity for sale to retail consumers;
553-
554955 41. On or after July 1, 2019, and pr ior to July 1, 2024, sales
555956 or leases of rolling stock when sold or leased by the manufacturer,
556957 regardless of whether the purchaser is a public services corporation
958+
959+ENGR. S. B. NO. 34x Page 20 1
960+2
961+3
962+4
963+5
964+6
965+7
966+8
967+9
968+10
969+11
970+12
971+13
972+14
973+15
974+16
975+17
976+18
977+19
978+20
979+21
980+22
981+23
982+24
983+
557984 engaged in business as a common carri er of property or passengers by
558985 railway, for use or con sumption by a common carrier directly in the
559986 rendition of public service. For purposes of this paragraph,
560987 “rolling stock” means locomotives, autocars and railroad cars and
561988 “sales or leases” includes railroad car maintenance and retrofitting
562989 of railroad cars for their further use only on the railways;
563-
564990 42. Sales of gold, silver, platinum, palladium or other bullion
565991 items such as coins and bars and legal tender of an y nation, which
566992 legal tender is sold a ccording to its value as precious metal or as
567993 an investment. As used in the paragraph, “bullion” means any
568994 precious metal, including, but not limited to, gold, silver,
569995 platinum and palladium, that is in such a state o r condition that
570996 its value depends upo n its precious metal content and not its form .
571997 The exemption authorized by this paragraph shall not apply to
572-
573-ENR. S. B. NO. 34x Page 14
574998 fabricated metals that have been processed or manufactured for
575999 artistic use or as jewelry ; and
576-
5771000 43. Subject to the other requirements of this para graph and the
5781001 requirements of Section 2 1357.21 of this act title, sale, lease,
5791002 rental, storage, use or other consumption of qualifying broadband
5801003 equipment by providers of Internet service or subsidiaries if the
5811004 property is directly used or consumed by the provider or subsidiary
5821005 in or during the distribution o f broadband Internet service. The
5831006 Legislature finds that pursuant to the provisions of subsection H of
5841007 Section 1357.21 of this title, the provisions of this paragraph were
1008+
1009+ENGR. S. B. NO. 34x Page 21 1
1010+2
1011+3
1012+4
1013+5
1014+6
1015+7
1016+8
1017+9
1018+10
1019+11
1020+12
1021+13
1022+14
1023+15
1024+16
1025+17
1026+18
1027+19
1028+20
1029+21
1030+22
1031+23
1032+24
1033+
5851034 originally made contingent upon the enactment of an incentive award
5861035 formula. Notwithstanding the failure to fulfill the condition as
5871036 prescribed by subsection H of Section 1357.21 of this title, as
5881037 originally enacted, the provisions of this paragraph shall be
5891038 operative on and after the effective date of this act.
590-
5911039 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1357.21, is
5921040 amended to read as follows:
593-
5941041 Section 1357.21. A. The exemption authorized by the provisions
5951042 of paragraph 43 of Section 1357 of Title 68 of the Oklahoma Statutes
5961043 this title shall be administered as a rebate.
597-
5981044 B. No claim for a rebate shall be approved unless the equipment
5991045 was purchased in order to establish or expand broadband services in
6001046 underserved or unserved areas . As used in this subsection and for
6011047 purposes of the exemption authorize d by paragraph 43 of Section 1357
6021048 of Title 68 of the Oklahoma Statutes this title, “broadband”,
6031049 “underserved” and “unserved” shall mean those services and areas as
6041050 defined in Section 139.102 of Title 17 of the Ok lahoma Statutes.
605-
6061051 C. No claim for rebate sha ll be approved unless the claimant
6071052 establishes that as a result of the equipment purchase there has
6081053 been net growth in the number of potential customers served in
6091054 underserved or unserved areas.
610-
6111055 D. In order to qualify for rebate payments during the fiscal
6121056 year beginning July 1, 2022, equipment or other items qualifying for
6131057 the exemption authorized b y paragraph 43 of Section 1357 of Title 68
1058+
1059+ENGR. S. B. NO. 34x Page 22 1
1060+2
1061+3
1062+4
1063+5
1064+6
1065+7
1066+8
1067+9
1068+10
1069+11
1070+12
1071+13
1072+14
1073+15
1074+16
1075+17
1076+18
1077+19
1078+20
1079+21
1080+22
1081+23
1082+24
1083+
6141084 of the Oklahoma Statutes this title must be purchased and placed in
6151085 service between January 1, 2022, and December 31, 2023. Claims for
616-
617-ENR. S. B. NO. 34x Page 15
6181086 rebates of sales tax or use tax paid for such equipment purchased in
6191087 calendar year 2022 shall be filed with the Oklahoma Tax Commission
6201088 not later than September 1, 2023, and claims for rebates f or sales
6211089 or use tax paid for such equipment purchased in calendar year 2023
6221090 shall be filed with the Oklah oma Tax Commission not later than
6231091 September 1, 2024. All claims shall be processed by the Tax
6241092 Commission not later than March 1, 2025.
625-
6261093 E. Qualifying purchases do not include supporting or ancillary
6271094 functions, such as office operations, field operations, marketing,
6281095 transportation, warehousing, data storage, or similar operations
6291096 that do not directly result in the distribution of broadband
6301097 Internet service. Property directly used or consumed in or during
6311098 the provision, creation, or production of a data proc essing service
6321099 or information service, or property the provider grants, sells, or
6331100 leases to the customer for use within the home or establishment
6341101 receiving broadband is not eligible for a rebate under this section.
635-
6361102 F. The total amount of rebates that may be paid shall not
6371103 exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one
6381104 Million Five Hundred Thousand Dollars ($31,500,000.00) of the tota l
6391105 reserved for eligible projects serving counties having a population
6401106 density of fewer than one hundred persons per square mile and Ten
6411107 Million Five Hundred Thousand Dollars ($10,500,000.00) of the total
1108+
1109+ENGR. S. B. NO. 34x Page 23 1
1110+2
1111+3
1112+4
1113+5
1114+6
1115+7
1116+8
1117+9
1118+10
1119+11
1120+12
1121+13
1122+14
1123+15
1124+16
1125+17
1126+18
1127+19
1128+20
1129+21
1130+22
1131+23
1132+24
1133+
6421134 reserved for eligible projects serving counties havi ng a population
6431135 density of one hundred or more persons per square mile.
644-
6451136 G. The amount of rebate paid to each claimant shall be computed
6461137 by dividing the applicable total rebate pool amount by the dollar
6471138 amount of claims timely received by the Tax Commissio n with respect
6481139 to each fiscal year, and paying in full the amount of the claims
6491140 submitted if the amount of claims are equal to, or less than, the
6501141 total rebate pool, or a pro rata share if the total amount of claims
6511142 submitted exceed the rebate pool.
652-
6531143 H. For the fiscal year beginning July 1, 2023, and all
6541144 subsequent fiscal years, the total amount of rebate that may be paid
6551145 shall not exceed Forty-two Million Dollars ($42,000,000.00), but the
6561146 allocation of this amount shall be made using an incentive award
6571147 formula as enacted into law by the Legislature after recommendation
6581148 by the Rural Broadband Expansion Council. If an incentive award
6591149 formula is not enacted into law as of January 1, 2023, then the
660-
661-ENR. S. B. NO. 34x Page 16
6621150 sales tax exemption otherwise authorized pursuant to paragraph 43 of
6631151 Section 1357 of Title 68 of the Oklahoma Statutes shall cease to be
6641152 effective as law and the exemption shall not be applicable to any
6651153 equipment purchase made on or after January 1, 2024.
666-
6671154 I. Claims for rebate shall be on such forms as the Oklahoma Ta x
6681155 Commission may prescribe for such purpose and shall contain any
6691156 required information or supporting documentation the Commission
6701157 requires to verify eligibility for the rebate payment.
1158+
1159+ENGR. S. B. NO. 34x Page 24 1
1160+2
1161+3
1162+4
1163+5
1164+6
1165+7
1166+8
1167+9
1168+10
1169+11
1170+12
1171+13
1172+14
1173+15
1174+16
1175+17
1176+18
1177+19
1178+20
1179+21
1180+22
1181+23
1182+24
6711183
6721184 J. The Oklahoma Department of Commerce and the Rural Oklahoma
6731185 Broadband Expansion Council Office shall use information provided by
6741186 the Oklahoma Tax Commission to prepare a repo rt to identify the
6751187 qualifying rural broadband projects completed with the equipment
6761188 purchased together with the location of the equipment and the
6771189 geographic areas served as a result of the equipment purchases,
6781190 including the total number of potential new customers receiving
6791191 qualifying broadband services resulting from the project. The
6801192 report shall not identify any entity by name that purchased
6811193 equipment.
682-
6831194 K. The report shall be filed not la ter than April 1, 2025, with
6841195 respect to rebates paid for equipment p urchases made during calendar
6851196 years 2022 and 2023. The Oklahoma Tax Commission shall make
6861197 information available as required by subsection J of this s ection as
6871198 claims are completed to assi st with the timely preparation of the
6881199 report.
689-
6901200 L. The report shall be filed with the Governor, the Speaker of
6911201 the Oklahoma House of Representatives and the President Pro Tempore
6921202 of the Oklahoma State Senate and posted on the Rural Oklahoma
6931203 Broadband Expansion Council Office website maintained by the
6941204 Oklahoma Department of Commerce.
695-
6961205 SECTION 3. It being immediatel y necessary for the preservation
6971206 of the public peace, health or safety, an emergency is hereb y
1207+
1208+ENGR. S. B. NO. 34x Page 25 1
1209+2
1210+3
1211+4
1212+5
1213+6
1214+7
1215+8
1216+9
1217+10
1218+11
1219+12
1220+13
1221+14
1222+15
1223+16
1224+17
1225+18
1226+19
1227+20
1228+21
1229+22
1230+23
1231+24
1232+
6981233 declared to exist, by reason whereof thi s act shall take effect and
6991234 be in full force from and after its passage and approval.
700-
701-
702-ENR. S. B. NO. 34x Page 17
7031235 Passed the Senate the 24th day of May, 2023.
7041236
7051237
7061238
7071239 Presiding Officer of the Senate
7081240
7091241
710-Passed the House of Representatives the 26th day of May, 2023.
1242+Passed the House of Representatives the ____ day of __________,
1243+2023.
7111244
7121245
7131246
7141247 Presiding Officer of the House
7151248 of Representatives
7161249
717-OFFICE OF THE GOVERNOR
718-Received by the Office of the Governor this _______ _____________
719-day of ___________________, 20_______, at _______ o'clock _______ M.
720-By: _______________________________ __
721-Approved by the Governor of the State of Oklahoma this _____ ____
722-day of _________________ __, 20_______, at _______ o'clock _______ M.
723-
724- _____________________ ____________
725- Governor of the State of Oklahoma
726-
727-
728-OFFICE OF THE SECRETARY OF STATE
729-Received by the Office of the Secretary of State this _______ ___
730-day of __________________, 20 _______, at _______ o'clock _______ M.
731-By: _______________________________ __