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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1759 By: Manger
AS INTRODUCED
An Act relating to excise tax; amending 68 O.S. 2021,
Section 2105, which relates to excise tax on
vehicles; defining term; updating statutory lan guage;
providing for transfer -on-death procedures for
vessels or motors; requiring noti ce; prescribing
content of notice; authorizing revocation; providing
for affidavit by transferee; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE S TATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Sect ion 2105, is
amended to read as follows:
Section 2105. An original or a transfer certificate of title
shall be issued without the payment of the excise tax levied by
Section 2101 et seq. of this title for:
1. Any vehicle owned by a nonresident person who operates
principally in some other state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person former ly
living in another state, wh o has owned and registered the vehicle in
such other state of residence at least sixty (60) days prior to the
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time it is required to be regi stered in this state; provided,
however, this paragraph shall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by the State of Oklahom a this state,
by any of the political su bdivisions thereof, or by a fire
department organized pursuant to Section 5 92 of Title 18 of the
Oklahoma Statutes to be use d for the purposes of the fire
department, or a vehi cle which is the subject of a lease or l ease-
purchase agreement executed between the person seeking an original
or transfer certificate of title for the ve hicle and a municipality,
county, school district , or fire protection district. The person
seeking an original or transfer certificate of ti tle shall provide
adequate proof that th e vehicle is subject to a lease or lea se-
purchase agreement with a municipa lity, county, school district, or
fire protection district at the time the exci se tax levied would
otherwise be payable. The Oklahoma Tax Co mmission shall have the
authority to determine what constitutes adequate proof as required
by this section;
4. Any vehicle, the legal ownership of which is obtaine d by the
applicant for a certi ficate of title by inh eritance. For the
purposes of this section, "inheritance" means any transfer from a
deceased individual to the direct successor in interest of the
decedent without consideration, whether through probate,
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administration, inter vivos t rust, transfer-on-death designation, or
joint ownership;
5. Any used motor vehicle, travel trailer, o r commercial
trailer which is owned an d being offered for sale by a person
licensed as a dealer to sell the same, under the provisions of the
Oklahoma Vehicle License and Registrati on Act:
a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax
paid thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been registered in some other s tate but is
not the latest manufactured model.
Provided, the provisions of this paragraph shall not be
construed as allowing an exemption to any person not licensed as a
dealer of used motor vehicles, travel trailers, or comme rcial
trailers, or as an autom otive dismantler and parts recycler in this
state;
6. Any vehicle which was purchased by a person lic ensed to sell
new or used motor vehicl es in another state if:
a. if such vehicle is not purchased for operation or
resale in this state, and
b. the state from which the dealer is li censed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreement between t he
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duly authorized agent of the Ta x Commission and the
licensing state;
7. Any vehicle, the ownership of which w as obtained by the
lienholder or mortgagee under o r by foreclosure of a lien or
mortgage in the manner pr ovided by law or to the insurer under
subrogated rights arising by reaso n of loss under an insurance
contract;
8. Any vehicle which is taxed on an ad valorem basis;
9. Any vehicle or motor vehicle, t he legal ownership of which
is obtained by transfers:
a. from one corporation to another corp oration pursuant
to a reorganization. As used in this subsection
subparagraph the term "reorganization" means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation when
the consideration is solely all or a part o f the
voting stock of the acquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the winding up , dissolution, or
liquidation of a corporation only whe n there is a
distribution in kind to t he shareholders of the
property of such corporation,
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c. to a corporation where the former owners of the
vehicle or motor vehicle transferred are, immediately
after the transfer, in control of the corporation, and
the stock or securities received by each is
substantially in proportion to th e interest in the
vehicle or motor vehicle prior to the transfer,
d. to a partnership if the former owners of the vehicle
or motor vehicle transferred are, immediately after
the transfer, members of such partnership and th e
interest in the partnership rece ived by each is
substantially in pro portion to the interest in the
vehicle or motor vehicle prior to the t ransfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liability company if the forme r owners of
the vehicle or motor veh icle transferred are,
immediately after the transfer, members of the l imited
liability company and the interest in the limited
liability company rec eived by each is substantially in
proportion to the interest in the vehi cle or motor
vehicle prior to the tr ansfer, or
g. from a limited liability company to the members
thereof when made in the dissol ution of such
partnership;
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10. Any vehicle which is pu rchased by a person to be used by a
business engaged in renting motor ve hicles without a driver,
provided:
a. the vehicle shall not be ren ted to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by th ese
provisions shall not be placed und er any type of lease
agreement,
c. on any such vehicle exempted from t he excise tax by
this subsection paragraph that is reregistered in this
state, without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date of issuance of the
original title, the seller shall p ay immediately the
amount of excise tax which woul d have been due had
this exemption not been granted plu s a penalty of
twenty percent (20%). No such excise tax or penalty
shall become due and payable if the vehicle is sold or
transferred in a condition e ither physical or
mechanical which would render it eligible for a
salvage title pursuant to law or if the vehicle is
sold and transferred in th is state at any time prior
to the expiration of twelve (12) months:
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(1) to the manufacturer of the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the
same line-make of the vehicle being purchased, or
d. when this exemption is claimed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title on ly within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as
provided in this section is made,
(2) the sale is made to a person specified in
division (1) or (2) of subparagr aph c of this
paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles her ein exempted shall be
treated as though the excise tax has been paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and t ransferred to
a licensed, franchis ed Oklahoma motor vehicle dealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which h olds a
franchise of the same line-make as the vehicle being registered;
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12. Any new motor vehicle, registered in th e name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to S ection 1116.1 of Title 47 o f the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individu al. The authorization for
such use shall not exceed four (4) months which shall not be renewed
or the exemption provided by this subsection paragraph shall not be
applicable. The exemption provided by this subsection paragraph
shall not be applicable to a transfer of owners hip or registration
subsequent to the first registration of the vehicle by a
manufacturer or dealer;
13. Any vehicle, travel trailer, or co mmercial trailer of the
latest manufacturer model purchased by a franchised Ok lahoma dealer
licensed to sell the sam e which holds a franchise of the s ame line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle whi ch is the subject of a lease or lease-
purchase agreement and which the ownersh ip of such vehicle is being
obtained by the lessee, if the vehicle excis e tax was paid at the
time of the initial lease or lease-purchase agreement;
15. Any vehicle which:
a. is purchased by a private , nonprofit organization
which is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal
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Revenue Code, 26 U.S.C., Section 501(c)(3), and which
is primarily funded by a fraterna l or civic service
organization with at least one hundred local chapters
or clubs, and
b. is designed and used to provide mobile health
screening services to the general public at no cost to
the recipient, and for which no reimbursement of any
kind is received from any health insura nce provider,
health maintenance organization, or governmental
program;
16. Any vehicle which is purchased by an in dividual who has
been honorably discharged from active service in any branch of the
Armed Forces of the United St ates or Oklahoma National G uard and who
has been certified by the United States Department of Veterans
Affairs, its successor, or the Armed For ces of the United States to
be a disabled veteran in receipt of compensation at the one-hundred-
percent rate for a permanent disability sust ained through military
action or accident resulting from disease contracted wh ile in such
active service and registe red with the veterans registry cre ated by
the Oklahoma Department of Veterans Affairs; provided, that if the
veteran has previously received exemption pursuant to this
paragraph, no registration with the veterans regis try shall be
required. This exemption may not be claimed by an individu al for
more than one vehicle in a consecutive three-year period, unless the
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vehicle is a replacement for a vehicle which was dest royed and
declared by the insurer to be a total loss cl aim. The Tax
Commission shall promulg ate any rules necessary to impleme nt the
provisions of this section; or
17. Any vehicle on which ownership is tr ansferred by a
repossessor directly back to the ow ner or owners from whom the
vehicle was repossessed; pr ovided, ownership shall be assigned by
the repossessor within thirty (30 ) days of issuance of the
repossession title and shall be identical to that ref lected in the
vehicle title record immediately pri or to the repossession.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Se ction 4012.1 of Title 63, unless there
is created a duplication in number ing, reads as follows:
A. The title of a vessel or motor that is not subject to any
lien or other encumbrance may be transferred in transfer -on-death
form by filing with the Oklahoma Tax Commission a written notice of
transfer signed by the transferor and designating the transferee .
Such notice shall transfer ownership of the vessel or motor to the
transferee upon the death of the transferor. The notice shall
include:
1. The identification number of the ve ssel or motor;
2. The full name and address of the transferor;
3. The full name and address of the transferee; and
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4. The signature of the transferor. The signature or consent
of or notice to the transferee shall not be required for any purpose
during the lifetime of the transferor.
B. A designation of the transferee may be revoked or changed at
any time prior to the death of the transferor by filing an amended
notice with the Tax Commission.
C. To accept a certifica te of title of a vessel or motor
pursuant to notice filed under subsection A of thi s section, the
designated transferee shall execute an affidavit verifying the death
of the transferor owner and submit it to the Tax Commission. After
the date of the transfer of th e vessel or motor as evidenced by the
submitted affidavit and the records of the Commission, the
Commission shall issue a title reflecting the transfer of ownership .
SECTION 3. This act shall become effective November 1, 2023.
59-1-5169 JBH 11/17/22