Oklahoma 2023 Regular Session

Oklahoma House Bill HB1130 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - HB1130 SFLR Page 1
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	3	+	ENGR. H. B. NO. 1130 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 10, 2023
31		-	AS AMENDED
32		-
33	28		ENGROSSED HOUSE
34	29		BILL NO. 1130 By: Fetgatter of the House
35	30
36	31		and
37	32
38	33		Thompson (Roger) of the
39	34		Senate
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45		-	An Act relating to sales tax; amending 68 O.S. 2021,
46		-	Section 1357, as last amended by Section 1 , Chapter
47		-	512, O.S.L. 2021, which relates to sales tax
48		-	exemption; stating intent; requiring exemption to be
49		-	operative after certain date; amending 68 O.S. 2021,
50		-	Section 1357.21, which relates to rebates for
51		-	exemption and reporting requirements; terminating
52		-	requirement that exemption be based upon certain
53		-	formula; transferring certain requirements to the
54		-	Oklahoma Broadband Office; updating statutory
55		-	reference; and declaring an emergency.
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	41	+
	42	+	[ revenue and taxation - sales tax exemptions -
	43	+	purchases of broadband equipment - operative effect
	44	+	- Rural Broadband Expansion Council - Oklahoma
	45	+	Broadband Office -
	46	+	emergency ]
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61	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
62	52		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, is
63	53		amended to read as follows:
64	54		Section 1357. Exemptions – General.
65	55		There are hereby specif ically exempted from the tax levied by
66	56		the Oklahoma Sales Tax Code:
67	57		1. Transportation of school pupils to and from el ementary
68	58		schools or high schools in motor or other vehicles;
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96	85		2. Transportation of persons where the f are of each person does
97	86		not exceed One Dollar ($1.00), or local transportation of persons
98	87		within the corporate limits of a municipality except by taxicabs ;
99	88		3. Sales for resale to persons engaged in the business of
100	89		reselling the articles purchased, whethe r within or without the
101	90		state, provided that such sales to residents of this state are made
102	91		to persons to whom sales tax permits have been issued as provid ed in
103	92		the Oklahoma Sales Tax Code. This exemption shall not apply to the
104	93		sales of articles made to p ersons holding permits when such pers ons
105	94		purchase items for their use and which they are not regularly
106	95		engaged in the business of reselling; neither shall this exemption
107	96		apply to sales of tangible personal property to peddlers, solicitors
108	97		and other salespersons who do not have an established place of
109	98		business and a sales tax permit . The exemption provided by this
110	99		paragraph shall apply to sales of motor fuel or diesel fuel to a
111	100		Group Five vendor, but the use of such motor fuel or diesel fuel by
112	101		the Group Five vendor shall not be exempt from th e tax levied by the
113	102		Oklahoma Sales Tax Code . The purchase of motor fuel or diesel fuel
114	103		is exempt from sales tax when the motor fuel is for shipment outside
115	104		this state and consumed by a common carrier by rail in the con duct
116	105		of its business. The sales tax shall apply to the purchase of motor
117	106		fuel or diesel fuel in Oklahoma by a common carrier by rail when
118	107		such motor fuel is purchased for fueling, within this state, of any
119	108		locomotive or other motorized flanged wheel equip ment;
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147	135		4. Sales of advertising space in newspapers and periodicals;
148	136		5. Sales of programs relating to sporting and entertainment
149	137		events, and sales of adver tising on billboards (including signage,
150	138		posters, panels, marquees, or on other similar surfaces, whether
151	139		indoors or outdoors) or in progr ams relating to sporting and
152	140		entertainment events, and sales of any advertising, to be displayed
153	141		at or in connection w ith a sporting event, via the Internet,
154	142		electronic display devices, or through public address or broadcast
155	143		systems. The exemption authori zed by this paragraph shall be
156	144		effective for all sales made on or after January 1, 2001;
157	145		6. Sales of any advertising, other than the advertising
158	146		described by paragraph 5 of this section, via the Internet,
159	147		electronic display devices, or through the electro nic media,
160	148		including radio, public address or broadcast systems, television
161	149		(whether through closed circuit broadcasti ng systems or otherwise),
162	150		and cable and satellite television, and the servicing of any
163	151		advertising devices;
164	152		7. Eggs, feed, supplies, mach inery and equipment purchased by
165	153		persons regularly engaged in the business of raising worms, fish,
166	154		any insect or any other form of terrestrial or aquatic animal life
167	155		and used for the purpose of raising same for marketing. This
168	156		exemption shall only be gran ted and extended to the purchaser when
169	157		the items are to be used and in fact are used in the raising of
170	158		animal life as set out above. Each purchaser shall certify, in
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198	185		writing, on the invoice or sales ticket retained by the vendor that
199	186		the purchaser is regu larly engaged in the business of raising such
200	187		animal life and that the items purchased will be used only in such
201	188		business. The vendor shall certify to the Oklahoma Tax Commission
202	189		that the price of the items has been reduced to grant the full
203	190		benefit of the exemption. Violation hereof by the purchaser or
204	191		vendor shall be a misdemeanor;
205	192		8. Sale of natural or artificial ga s and electricity, and
206	193		associated delivery or transmission services, when sold exclusively
207	194		for residential use. Provided, this exemption shall not apply to
208	195		any sales tax levied by a city or town, or a county, or any other
209	196		jurisdiction in this state;
210	197		9. In addition to the exemptions authorized by Section 1357.6
211	198		of this title, sales of drugs sold pursuant to a prescription
212	199		written for the treatment of human beings by a person licensed to
213	200		prescribe the drugs, and sales of insulin and medical oxygen .
214	201		Provided, this exemption shall not apply to over-the-counter drugs;
215	202		10. Transfers of title or possession of empty, partially
216	203		filled, or filled returnable oil and chemical drums to any person
217	204		who is not regularly engaged in the business of selling, reselling
218	205		or otherwise transferring empty, partially filled, or filled
219	206		returnable oil drums;
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247	233		11. Sales of one-way utensils, paper napkins, paper cups,
248	234		disposable hot containers and other one -way carry out materials to a
249	235		vendor of meals or beverages;
250	236		12. Sales of food or food products for home consumption which
251	237		are purchased in whole or in part with coupons issued pursuant to
252	238		the federal food stamp progr am as authorized by Sections 2011
253	239		through 2029 of Title 7 of the United States Code, as to that
254	240		portion purchased with such coupons. The exemption provided for
255	241		such sales shall be inapplicable to such sales upon the effective
256	242		date of any federal law that removes the requirement of the
257	243		exemption as a condition for participation by the state in the
258	244		federal food stamp progr am;
259	245		13. Sales of food or food products, or any equipment or
260	246		supplies used in the preparation of the food or food products to or
261	247		by an organization which:
262	248		a. is exempt from taxation pursuant to the provisions of
263	249		Section 501(c)(3) of the Internal Revenue Co de, 26
264	250		U.S.C., Section 501(c)(3), and which provides and
265	251		delivers prepared meals for home consumption to
266	252		elderly or homebound persons as p art of a program
267	253		commonly known as "Meals on Wheels" or "Mobile Meals",
268	254		or
269	255		b. is exempt from taxation pursuant to the provisions of
270	256		Section 501(c)(3) of the Internal Revenue Code, 26
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298	283		U.S.C., Section 501(c)(3), and which receives federal
299	284		funding pursuant to the Older Americans Act of 1965,
300	285		as amended, for the purpose of providing nutrition
301	286		programs for the care and benefit of elderly persons;
302	287		14. a. Sales of tangible personal property or services to or
303	288		by organizations which are exempt from taxation
304	289		pursuant to the provisions of Section 501(c)(3) of the
305	290		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
306	291		and:
307	292		(1) are primarily involved in the collection and
308	293		distribution of food and other household products
309	294		to other organizations that facilitate the
310	295		distribution of such products to the needy and
311	296		such distributee organizations are exempt from
312	297		taxation pursuant to the provisio ns of Section
313	298		501(c)(3) of the Internal Revenue Code, 26
314	299		U.S.C., Section 501(c)(3), or
315	300		(2) facilitate the distribution of such products to
316	301		the needy.
317	302		b. Sales made in the course of business for profit or
318	303		savings, competing with other persons engaged in the
319	304		same or similar business shall not be exempt under
320	305		this paragraph;
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348	332		15. Sales of tangible personal property or services to
349	333		children's homes which are located on church -owned property and are
350	334		operated by organizations exempt from taxation pursuant to the
351	335		provisions of the Internal Revenue Code, 26 U.S.C., Section
352	336		501(c)(3);
353	337		16. Sales of computers, data processing equipment, related
354	338		peripherals and telephone, telegraph or telecommunications service
355	339		and equipment for use in a qualified aircraft maintenance o r
356	340		manufacturing facility. For purposes of this paragraph, "qualified
357	341		aircraft maintenance or manufacturing facility " means a new or
358	342		expanding facility primarily engaged in aircraft repair, building or
359	343		rebuilding whether or not on a factory basis, whose to tal cost of
360	344		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
361	345		and which employs at least two hundred fifty (250) new fu ll-time-
362	346		equivalent employees, as certified by the Oklahoma Employment
363	347		Security Commission, upon completion of the faci lity. In order to
364	348		qualify for the exemption provided for by this paragraph, the cost
365	349		of the items purchased by the qualified aircraft mai ntenance or
366	350		manufacturing facility shall equal or exceed the sum of Two Million
367	351		Dollars ($2,000,000.00);
368	352		17. Sales of tangible personal property consumed or
369	353		incorporated in the construction or expansion of a qualified
370	354		aircraft maintenance or manufacturing facility as defined in
371	355		paragraph 16 of this section . For purposes of this paragraph, sales
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399	382		made to a contractor or s ubcontractor that has previously entered
400	383		into a contractual relationship with a qualified aircraft
401	384		maintenance or manufacturing facility f or construction or expansion
402	385		of such a facility shall be considered sales made to a qualified
403	386		aircraft maintenance or manufacturing facility;
404	387		18. Sales of the following telecommunications services:
405	388		a. Interstate and International "800 service". "800
406	389		service" means a "telecommunications service " that
407	390		allows a caller to dial a toll -free number without
408	391		incurring a charge f or the call. The service is
409	392		typically marketed under the name "800", "855", "866",
410	393		"877", and "888" toll-free calling, and any subsequent
411	394		numbers designated by the Federal Communications
412	395		Commission, or
413	396		b. Interstate and International "900 service". "900
414	397		service" means an inbound toll "telecommunications
415	398		service" purchased by a subscriber that allows the
416	399		subscriber's customers to call in to the subscriber's
417	400		prerecorded announcement or live service . "900
418	401		service" does not include the charge for: collection
419	402		services provided by the seller of the
420	403		"telecommunications services" to the subscriber, or
421	404		service or product sold by the subscriber to t he
422	405		subscriber's customer. The service is typically
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450	432		marketed under the name "900" service, and any
451	433		subsequent numbers designated by the Federal
452	434		Communications Commission,
453	435		c. Interstate and International "private communications
454	436		service". "Private communications service" means a
455	437		"telecommunications service " that entitles the
456	438		customer to exclusive or priority use of a
457	439		communications channel or group of channels between or
458	440		among termination points, regardless of the manner in
459	441		which such channel or channels are connected, and
460	442		includes switching capacity, extension lines,
461	443		stations, and any other associated services that are
462	444		provided in connection with the use of such channel or
463	445		channels,
464	446		d. "Value-added nonvoice data service". "Value-added
465	447		nonvoice data service " means a service that otherwise
466	448		meets the definition of "telecommunications services "
467	449		in which computer processing app lications are used to
468	450		act on the form, content, code, or protocol of the
469	451		information or data primarily for a purpose other than
470	452		transmission, conveyance or routing,
471	453		e. Interstate and International telecommunications
472	454		service which is:
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500	481		(1) rendered by a company for private use within its
501	482		organization, or
502	483		(2) used, allocated, or distributed by a company to
503	484		its affiliated group,
504	485		f. Regulatory assessments and charges, including charges
505	486		to fund the Oklahoma Universal Service Fund, the
506	487		Oklahoma Lifeline Fund and t he Oklahoma High Cost
507	488		Fund, and
508	489		g. Telecommunications nonrecurring charges, including but
509	490		not limited to the installation, connection, cha nge or
510	491		initiation of telecommunications services which are
511	492		not associated with a retail consumer sale;
512	493		19. Sales of railroad track spikes manufactured and sold for
513	494		use in this state in the construction or repair of railroad tracks,
514	495		switches, sidings and t urnouts;
515	496		20. Sales of aircraft and aircraft parts provided such sales
516	497		occur at a qualified aircraft maintenance facil ity. As used in this
517	498		paragraph, "qualified aircraft maintenance facility" means a
518	499		facility operated by an air common carrier, including o ne or more
519	500		component overhaul support buildings or structures in an area owned,
520	501		leased or controlled by the air common carrier, at which there were
521	502		employed at least two thousand (2,000) full-time-equivalent
522	503		employees in the preceding year as certified by the Oklahoma
523	504		Employment Security Commission and which is primarily related to the
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551	531		fabrication, repair, alteration, mod ification, refurbishing,
552	532		maintenance, building or rebuilding of commercial aircraft or
553	533		aircraft parts used in air common carriage . For purposes of this
554	534		paragraph, "air common carrier" shall also include members of an
555	535		affiliated group as defined by Section 1504 of the Internal Revenue
556	536		Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
557	537		machinery, tools, supplies, equipment and r elated tangible personal
558	538		property and services used or consumed in the repair, remodeling or
559	539		maintenance of aircraft, aircraft engines, or aircraft component
560	540		parts which occur at a qualified aircraft maintenance facility;
561	541		21. Sales of machinery and equipm ent purchased and used by
562	542		persons and establishments primarily engaged in computer services
563	543		and data processing:
564	544		a. as defined under Industrial Group Numbers 7372 and
565	545		7373 of the Standard Industrial Classification (SIC)
566	546		Manual, latest version, which derive at least fifty
567	547		percent (50%) of their annual gross revenues from the
568	548		sale of a product or service to an out -of-state buyer
569	549		or consumer, and
570	550		b. as defined under Industrial Group Number 7374 of the
571	551		SIC Manual, latest version, which derive at least
572	552		eighty percent (80%) of their annual gross revenues
573	553		from the sale of a product or service to an out -of-
574	554		state buyer or consumer.
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602	581		Eligibility for the exemption set out in this paragraph shall be
603	582		established, subject to review by the Tax Commission, by annually
604	583		filing an affidavit with the Tax Commission stating that the
605	584		facility so qualifies and such information as required by the T ax
606	585		Commission. For purposes of determining whether annual gross
607	586		revenues are derived from sales to out -of-state buyers or consumers,
608	587		all sales to the federal government shall be considered to be to an
609	588		out-of-state buyer or consumer;
610	589		22. Sales of prosthetic devices to an individual for use by
611	590		such individual. For purposes of this paragraph, "prosthetic
612	591		device" shall have the same meaning a s provided in Section 1357.6 of
613	592		this title, but shall not include corrective eye glasses, contact
614	593		lenses or hearing ai ds;
615	594		23. Sales of tangible personal property or services to a motion
616	595		picture or television production company to be used or consumed in
617	596		connection with an eligible production . For purposes of this
618	597		paragraph, "eligible production" means a documentary, spec ial, music
619	598		video, or a television commercial or television program that will
620	599		serve as a pilot for or be a segment of an ongoing dramatic o r
621	600		situation comedy series filmed or taped for network or national or
622	601		regional syndication or a feature -length motion picture intended for
623	602		theatrical release or for network or national or regional
624	603		syndication or broadcast . The provisions of this paragraph shall
625	604		apply to sales occurring on or after July 1, 1996 . In order to
626	605
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650	628		23
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652	630
653	631		qualify for the exemption, the motion picture or television
654	632		production company shall file any documentation and information
655	633		required to be submitted pursuant to rules promulgated by the Tax
656	634		Commission;
657	635		24. Sales of diesel fuel sold for consumption by commercial
658	636		vessels, barges and other commercial wate rcraft;
659	637		25. Sales of tangible personal property or services to tax-
660	638		exempt independent nonprofit biomedical research foundations that
661	639		provide educational programs for Oklahoma science students and
662	640		teachers and to tax-exempt independent nonprofit community blood
663	641		banks headquartered in this state;
664	642		26. Effective May 6, 1992, sales of wireless telecommunications
665	643		equipment to a vendor who subseq uently transfers the equipment at no
666	644		charge or for a discounted charge to a consumer as part of a
667	645		promotional package or as an inducement to commence or continue a
668	646		contract for wireless telecommunications services;
669	647		27. Effective January 1, 1991, leases of rail transportation
670	648		cars to haul coal to coal -fired plants located in this state which
671	649		generate electric power;
672	650		28. Beginning July 1, 2005, sales of aircraft engine repairs,
673	651		modification, and replacement parts, sales of aircraft frame repairs
674	652		and modification, aircraft interior modification, and paint, and
675	653		sales of services employed in the repair, modification and
676	654
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702	679
703	680		replacement of parts of aircraft engines, aircraft frame and
704	681		interior repair and modification, and paint;
705	682		29. Sales of materials and supplies to the owner or operator of
706	683		a ship, motor vessel or barge that is used in interstate or
707	684		international commerce if the materials and supplies:
708	685		a. are loaded on the ship, motor vessel or barge and used
709	686		in the maintenance and operation of the ship, motor
710	687		vessel or barge, or
711	688		b. enter into and become component parts of the ship,
712	689		motor vessel or barge;
713	690		30. Sales of tangible pe rsonal property made at estate sales at
714	691		which such property is offered for sale on the premises of the
715	692		former residence of the decedent by a person who is not required to
716	693		be licensed pursuant to the Transient Merchant Licensing Act, or who
717	694		is not otherwise required to obtain a sales tax permit for the sale
718	695		of such property pursuant to the provisions of Section 1364 of this
719	696		title; provided:
720	697		a. such sale or event may not be held for a period
721	698		exceeding three (3) consecutive days,
722	699		b. the sale must be conducted within six (6) months of
723	700		the date of death of the decedent, and
724	701		c. the exemption allowed by this paragraph shall not be
725	702		allowed for property that was not part of the
726	703		decedent's estate;
727	704
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753	729
754	730		31. Beginning January 1, 2004, sales of electricity and
755	731		associated delivery and transmission services, when sold exclusively
756	732		for use by an oil and gas operator for reservoir dewatering projects
757	733		and associated operations commencing on or after July 1, 2003, in
758	734		which the initial water -to-oil ratio is greater than or equal to
759	735		five-to-one water-to-oil, and such oil and gas development projects
760	736		have been classified by the Corporation Commission as a reservoir
761	737		dewatering unit;
762	738		32. Sales of prewritten computer software that is delivered
763	739		electronically. For purposes of this paragra ph, "delivered
764	740		electronically" means delivered to the purchaser by means other than
765	741		tangible storage media;
766	742		33. Sales of modular dwelling units when built at a production
767	743		facility and moved in whole or in parts, to be assembled on -site,
768	744		and permanently affixed to the real property and used for
769	745		residential or commercial purposes. The exemption provided by this
770	746		paragraph shall equal forty -five percent (45%) of the total sales
771	747		price of the modular dwelling unit . For purposes of this paragraph,
772	748		"modular dwelling unit" means a structure that is not subject to the
773	749		motor vehicle excise tax imposed pursuant to Section 2103 of this
774	750		title;
775	751		34. Sales of tangible personal property or services to persons
776	752		who are residents of Oklahoma and have been honorably discharge d
777	753		from active service in any branch of the Armed Forces of the United
778	754
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804	779
805	780		States or Oklahoma National Guard and who have been certified by the
806	781		United States Department of Veterans Affairs or its successor to be
807	782		in receipt of disability compensation at the one -hundred-percent
808	783		rate and the disability shall be permanent and have been sustained
809	784		through military action or accident or resulting from d isease
810	785		contracted while in such active service or the surviving spouse of
811	786		such person if the person is deceased and th e spouse has not
812	787		remarried; provided, sales for the benefit of the person to a spouse
813	788		of the eligible person or to a member of the househo ld in which the
814	789		eligible person resides and who is authorized to make purchases on
815	790		the person's behalf, when such elig ible person is not present at the
816	791		sale, shall also be exempt for purposes of this paragraph. The
817	792		Oklahoma Tax Commission shall issue a se parate exemption card to a
818	793		spouse of an eligible person or to a member of the household in
819	794		which the eligible person r esides who is authorized to make
820	795		purchases on the person's behalf, if requested by the eligible
821	796		person. Sales qualifying for the exemptio n authorized by this
822	797		paragraph shall not exceed Twenty -five Thousand Dollars ($25,000.00)
823	798		per year per individual whil e the disabled veteran is living. Sales
824	799		qualifying for the exemption authorized by this paragraph shall not
825	800		exceed One Thousand Dollars ( $1,000.00) per year for an unremarried
826	801		surviving spouse. Upon request of the Tax Commission, a person
827	802		asserting or claiming the exemption authorized by this paragraph
828	803		shall provide a statement, executed under oath, that the total sales
829	804
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856	830		amounts for which the exemption is applicable have not exceeded
857	831		Twenty-five Thousand Dollars ($25,000.00) per year per living
858	832		disabled veteran or One Thousand Dollars ($1,000.00) per year for an
859	833		unremarried surviving spouse. If the amount of such exempt sales
860	834		exceeds such amount, the sales tax in excess of the authorized
861	835		amount shall be treated as a direct sales tax liability and may be
862	836		recovered by the Tax Commission in the same manner provided by law
863	837		for other taxes, including penalty and interest;
864	838		35. Sales of electricity to the operator, specifically
865	839		designated by the Corporation Commission, of a spacing unit or lease
866	840		from which oil is produced or attempted to be produced using
867	841		enhanced recovery methods, including, but not limited to, increased
868	842		pressure in a producing fo rmation through the use of water or
869	843		saltwater if the electrical usage is associated with and necessary
870	844		for the operation of equipment required to inject or circulate
871	845		fluids in a producing formation for the purpose of forcing oil or
872	846		petroleum into a wellbor e for eventual recovery and production from
873	847		the wellhead. In order to be eligible for the sales tax exemption
874	848		authorized by this paragraph, the total content of oil recovered
875	849		after the use of enhanced recovery methods shall not exceed one
876	850		percent (1%) by volume. The exemption authorized by this paragraph
877	851		shall be applicable only to the state sales tax rate and shall not
878	852		be applicable to any county or municipal sales tax rate;
879	853
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905	878
906	879		36. Sales of intrastate charter and tour bus transportation .
907	880		As used in this paragraph, "intrastate charter and tour bus
908	881		transportation" means the transportation of persons from one
909	882		location in this state to another location in this state in a motor
910	883		vehicle which has been constructed in such a manner that it may
911	884		lawfully carry more than eighteen persons, and which is ordinarily
912	885		used or rented to carry persons for compensation . Provided, this
913	886		exemption shall not apply to regularly scheduled bus transportation
914	887		for the general public;
915	888		37. Sales of vitamins, minerals and dietary supple ments by a
916	889		licensed chiropractor to a person who is the patient of such
917	890		chiropractor at the physical location where th e chiropractor
918	891		provides chiropractic care or services to such patient. The
919	892		provisions of this paragraph shall not be applicable to any dr ug,
920	893		medicine or substance for which a prescription by a licensed
921	894		physician is required;
922	895		38. Sales of goods, wares, me rchandise, tangible personal
923	896		property, machinery and equipment to a web search portal located in
924	897		this state which derives at least eighty percent (80%) of its annual
925	898		gross revenue from the sale of a product or service to an out -of-
926	899		state buyer or consumer . For purposes of this paragraph, "web
927	900		search portal" means an establishment classified under NAICS code
928	901		519130 which operates websites tha t use a search engine to generate
929	902
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955	927
956	928		and maintain extensive databases of Internet addresses and content
957	929		in an easily searchable format;
958	930		39. Sales of tangible personal property consumed or
959	931		incorporated in the construction or expansion of a facility for a
960	932		corporation organized under Section 437 et seq. of Title 18 of the
961	933		Oklahoma Statutes as a rural electric cooperative . For purposes of
962	934		this paragraph, sales made to a contractor or subcontractor that has
963	935		previously entered into a contractual relationship with a rural
964	936		electric cooperative for construction or expansion of a facility
965	937		shall be considered sales made to a rural ele ctric cooperative;
966	938		40. Sales of tangible personal property or services to a
967	939		business primarily engaged in the repair of consumer electron ic
968	940		goods, including, but not limited to, cell phones, compact disc
969	941		players, personal computers, MP3 players, digital d evices for the
970	942		storage and retrieval of information through hard-wired or wireless
971	943		computer or Internet connections, if the devices are so ld to the
972	944		business by the original manufacturer of such devices and the
973	945		devices are repaired, refitted or refurbished for sale by the entity
974	946		qualifying for the exemption authorized by this paragraph directly
975	947		to retail consumers or if the devices are sold t o another business
976	948		entity for sale to retail consumers;
977	949		41. On or after July 1, 2019, and prior to July 1, 2024, sale s
978	950		or leases of rolling stock when sold or leased by the manufacturer,
979	951		regardless of whether the purchaser is a public services corporation
980	952
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992	963		11
993	964		12
994	965		13
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996	967		15
997	968		16
998	969		17
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1002	973		21
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1006	977
1007	978		engaged in business as a common carrier of property or passengers by
1008	979		railway, for use or consumption by a common carr ier directly in the
1009	980		rendition of public service. For purposes of this paragraph,
1010	981		"rolling stock" means locomotives, autocars and railroad cars and
1011	982		"sales or leases" includes railroad car maintenance and retrofitting
1012	983		of railroad cars for their further use only on the railways;
1013	984		42. Sales of gold, silver, platinum, palladium or other bullion
1014	985		items such as coins and bars and legal tender of an y nation, which
1015	986		legal tender is sold according to its value as precious metal or as
1016	987		an investment. As used in the paragraph, "bullion" means any
1017	988		precious metal, including, but not limited to, gold, silver,
1018	989		platinum and palladium, that is in such a state o r condition that
1019	990		its value depends upon its precious metal content and not its form .
1020	991		The exemption authorized by this paragraph shall not apply to
1021	992		fabricated metals that have been processed or manufactured for
1022	993		artistic use or as jewelry ; and
1023	994		43. Subject to the other requirements of this paragraph and the
1024	995		requirements of Section 2 1357.21 of this act title, sale, lease,
1025	996		rental, storage, use or other consumption of qualifying broadband
1026	997		equipment by providers of Internet service or subsidiaries if the
1027	998		property is directly used or consumed by the provider or subsidiary
1028	999		in or during the distribution of broadband Internet serv ice. The
1029	1000		Legislature finds that pursuant to the provisions of subsection H of
1030	1001		Section 1357.21 of this title, the provisions of this paragraph were
1031	1002
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1058	1028		originally made contingent upon the enactment of an incentive award
1059	1029		formula. Notwithstanding the failure to fulfill the condition as
1060	1030		prescribed by subsection H of Section 2 of Enrolled House Bill No.
1061	1031		2946 of the 1st Session of the 58th Legislature, as originally
1062	1032		enacted, the provisions of this paragraph shall be operative on and
1063	1033		after the effective date of this act.
1064	1034		SECTION 2. AMENDATORY 68 O.S. 2021, Section 1357.21, is
1065	1035		amended to read as follows:
1066	1036		Section 1357.21 A. The exemption authorized by the provisions
1067	1037		of paragraph 43 of Section 1357 of Title 68 of the Oklahoma Statutes
1068	1038		this title shall be administered as a rebate.
1069	1039		B. No claim for a rebate shall be approved unless the equipment
1070	1040		was purchased in ord er to establish or expand broadband services in
1071	1041		underserved or unserved areas . As used in this subsection and for
1072	1042		purposes of the exemption authorize d by paragraph 43 of Section 1357
1073	1043		of Title 68 of the Oklahoma Statutes this title, "broadband",
1074	1044		"underserved" and "unserved" shall mean those services and areas as
1075	1045		defined in Section 139.102 of Title 17 of the Oklahoma Statutes.
1076	1046		C. No claim for rebate sha ll be approved unless the claimant
1077	1047		establishes that as a result of the equipment purchase there has
1078	1048		been net growth in the number of potential customers served in
1079	1049		underserved or unserved areas.
1080	1050		D. In order to qualify for rebate p ayments during the fiscal
1081	1051		year beginning July 1, 2022, equipment or other items qualifying for
1082	1052
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1109	1078		the exemption authorized b y paragraph 43 of Sec tion 1357 of Title 68
1110	1079		of the Oklahoma Statutes this title must be purchased and placed in
1111	1080		service between January 1, 2022, an d December 31, 2023. Claims for
1112	1081		rebates of sales tax or use tax paid for such equipment purchased in
1113	1082		calendar year 2022 shall be filed with the Oklahoma Tax Commission
1114	1083		not later than September 1, 2023, and claims for rebates for sales
1115	1084		or use tax paid for such equipment purchased in calendar year 2023
1116	1085		shall be filed with the Oklah oma Tax Commission not later than
1117	1086		September 1, 2024. All claims shall be processed by the Tax
1118	1087		Commission not later than March 1, 2025.
1119	1088		E. Qualifying purchases do not include sup porting or ancillary
1120	1089		functions, such as office operations, field operations, marketing,
1121	1090		transportation, warehousing, data s torage, or similar operations
1122	1091		that do not directly result in the distribution of broadband
1123	1092		Internet service. Property directly used or consumed in or during
1124	1093		the provision, creation, or production of a data proc essing service
1125	1094		or information service, or pro perty the provider grants, sells, or
1126	1095		leases to the customer for use within the home or establishment
1127	1096		receiving broadband is not eligi ble for a rebate under this section.
1128	1097		F. The total amount of rebates that may be paid shall not
1129	1098		exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one
1130	1099		Million Five Hundred Thousand Dollars ($31,500,000.00) of the total
1131	1100		reserved for eligible pro jects serving counties having a population
1132	1101		density of fewer than one hundred persons per square mile and Ten
1133	1102
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1148	1116		14
1149	1117		15
1150	1118		16
1151	1119		17
1152	1120		18
1153	1121		19
1154	1122		20
1155	1123		21
1156	1124		22
1157	1125		23
1158	1126		24
1159	1127
1160	1128		Million Five Hundred Thousand Dollars ($10,500,000.00) of the total
1161	1129		reserved for eligible projects serving counties having a population
1162	1130		density of one hundred or more persons per square mile.
1163	1131		G. The amount of rebate paid to each claimant shall be computed
1164	1132		by dividing the applicable total rebate pool amount by the dollar
1165	1133		amount of claims timely received by the Tax Commission with respect
1166	1134		to each fiscal year, and paying in full the amount of the claims
1167	1135		submitted if the amount of claims are equal to, or less than, the
1168	1136		total rebate pool, or a pro rata share if the total amount of claims
1169	1137		submitted exceed the rebate pool.
1170	1138		H. For the fiscal year beginnin g July 1, 2023, and all
1171	1139		subsequent fiscal years, the total amount of rebate that may be paid
1172	1140		shall not exceed Forty-two Million Dollars ($42,000,000.00), but the
1173	1141		allocation of this amount shall be made using an incentive award
1174	1142		formula as enacted into law b y the Legislature after recommendation
1175	1143		by the Rural Broadband Expansion Council. If an incentive award
1176	1144		formula is not enacted into law as of January 1, 2023, then the
1177	1145		sales tax exemption otherwise authorized pursuant to paragraph 43 of
1178	1146		Section 1357 of Title 68 of the Oklahoma Statutes shall cease to be
1179	1147		effective as law and the exemption shall not be applicable to any
1180	1148		equipment purchase made on or after January 1, 2024.
1181	1149		I. Claims for rebate shall be on such forms as the Oklahoma Tax
1182	1150		Commission may prescri be for such purpose and shall contain any
1183	1151
1184		-	SENATE FLOOR VERSION - HB1130 SFLR Page 24
1185		-	(Bold face denotes Committee Amendments) 1
	1152	+	ENGR. H. B. NO. 1130 Page 24 1
1186	1153		2
1187	1154		3
1188	1155		4
1189	1156		5
1190	1157		6
1191	1158		7
1192	1159		8
1193	1160		9
1194	1161		10
1195	1162		11
1196	1163		12
1197	1164		13
1198	1165		14
1199	1166		15
1200	1167		16
1201	1168		17
1202	1169		18
1203	1170		19
1204	1171		20
1205	1172		21
1206	1173		22
1207	1174		23
1208	1175		24
1209	1176
1210	1177		required information or supporting documentation the Commission
1211	1178		requires to verify el igibility for the rebate payment.
1212	1179		J. The Oklahoma Department of Commerce and the Rural Oklahoma
1213	1180		Broadband Expansion Council Office shall use information provided by
1214	1181		the Oklahoma Tax Commission to prepare a repo rt to identify the
1215	1182		qualifying rural broadband projects completed with the equipme nt
1216	1183		purchased together with the location of the equipment and the
1217	1184		geographic areas served as a result of the equipment purchases,
1218	1185		including the total number of potential new customers receiving
1219	1186		qualifying broadband services resulting from the project. The
1220	1187		report shall not identify any entity by name that purchased
1221	1188		equipment.
1222	1189		K. The report shall be filed not la ter than April 1, 2025, with
1223	1190		respect to rebates paid for equipment p urchases made during ca lendar
1224	1191		years 2022 and 2023. The Oklahoma Tax Commission s hall make
1225	1192		information available as required by subsection J of this section as
1226	1193		claims are completed to assi st with the timely preparation of the
1227	1194		report.
1228	1195		L. The report shall be filed with the Govern or, the Speaker of
1229	1196		the Oklahoma House of Representatives a nd the President Pro Tempore
1230	1197		of the Oklahoma State Senate and posted on the Rural Oklahoma
1231	1198		Broadband Expansion Council Office website maintained by the
1232	1199		Oklahoma Department of Commerce.
1233	1200
1234		-	SENATE FLOOR VERSION - HB1130 SFLR Page 25
1235		-	(Bold face denotes Committee Amendments) 1
	1201	+	ENGR. H. B. NO. 1130 Page 25 1
1236	1202		2
1237	1203		3
1238	1204		4
1239	1205		5
1240	1206		6
1241	1207		7
1242	1208		8
1243	1209		9
1244	1210		10
1245	1211		11
1246	1212		12
1247	1213		13
1248	1214		14
1249	1215		15
1250	1216		16
1251	1217		17
1252	1218		18
1253	1219		19
1254	1220		20
1255	1221		21
1256	1222		22
1257	1223		23
1258	1224		24
1259	1225
1260	1226		SECTION 3. It being immediatel y necessary for the preservation
1261	1227		of the public peace, health or safety, an emergency is hereby
1262	1228		declared to exist, by reason whereof thi s act shall take effect and
1263	1229		be in full force from and after its passage and approval.
1264		-	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
1265		-	April 10, 2023 - DO PASS AS AMENDED
	1230	+	Passed the House of Representatives the 8th day of March, 2023.
	1231	+
	1232	+
	1233	+
	1234	+
	1235	+	Presiding Officer of the House
	1236	+	of Representatives
	1237	+
	1238	+
	1239	+
	1240	+	Passed the Senate the ___ day of __________, 2023.
	1241	+
	1242	+
	1243	+
	1244	+
	1245	+	Presiding Officer of the Senate
	1246	+
	1247	+