Oklahoma 2023 Regular Session

Oklahoma House Bill HB1955 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	ENGR. H. B. NO. 1955 Page 1 1
	3	+	HB1955 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
4	5		2
5	6		3
6	7		4
7	8		5
8	9		6
9	10		7
10	11		8
11	12		9
12	13		10
13	14		11
14	15		12
15	16		13
16	17		14
17	18		15
18	19		16
19	20		17
20	21		18
21	22		19
22	23		20
23	24		21
24	25		22
25	26		23
26	27		24
27	28
28		-	ENGROSSED HOUSE
29		-	BILL NO. 1955 By: McCall, O'Donnell, and
30		-	Waldron of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
31	30
32		-	~~and~~
	31	+	STATE OF OKLAHOMA
33	32
34		-	Bullard of the Senate
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 1955 By: McCall and O'Donnell
35	36
36	37
37	38
	39	+
	40	+
	41	+	AS INTRODUCED
	42	+
38	43		An Act relating to revenue and taxation; amending 68
39	44		O.S. 2021, Section 1352 , which relates to sales tax;
40		-	~~defining terms~~; providing for zero rate of ~~state~~
41		-	sales tax on certain food items; providing for ~~effect~~
42		-	of sales tax levies by political subd ivisions;
	45	+	modifying definitions; providing for zero rate of
	46	+	state sales tax on certain food items; providing for
	47	+	effect of sales tax levies by political subd ivisions;
43	48		prohibiting certain modifications with respect to
44	49		levy of sales tax; specifying duration of prohibited
45	50		action; providing an effective date; and declaring an
46	51		emergency.
	52	+
	53	+
47	54
48	55
49	56
50	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	58		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1352, is
52	59		amended to read as follows:
53	60		Section 1352. Definitions.
54	61		As used in the Oklahoma Sales Tax Code:
55	62		1. "Alcoholic beverages" means beverages that are suitable for
56	63		human consumption and contain one -half of one percent (0.5%) or more
57	64		of alcohol by volume;
58	65		2. "Bundled transaction" means the retail sal e of two or more
59	66		products, except real property and services to real property, where
60		-	the products are otherwise distinct and identifiable, and th e
61		-	products are sold for one nonitemized price. A "bundled
62		-	transaction" does not include the sale of any produc ts in which the
63	67
64		-	ENGR. H. B. NO. 1955 Page 2 1
	68	+	HB1955 HFLR Page 2
	69	+	BOLD FACE denotes Committee Amendments. 1
65	70		2
66	71		3
67	72		4
68	73		5
69	74		6
70	75		7
71	76		8
72	77		9
73	78		10
74	79		11
75	80		12
76	81		13
77	82		14
78	83		15
79	84		16
80	85		17
81	86		18
82	87		19
83	88		20
84	89		21
85	90		22
86	91		23
87	92		24
88	93
	94	+	the products are otherwise distinct and identifiable, and th e
	95	+	products are sold for one nonitemized price. A "bundled
	96	+	transaction" does not include the sale of any produc ts in which the
89	97		sales price varies, or is negotiable, based on t he selection by the
90	98		purchaser of the products included in the transaction. As us ed in
91	99		this paragraph:
92	100		a. "distinct and identifiable products " does not include:
93	101		(1) packaging such as container s, boxes, sacks, bags,
94	102		and bottles, or other materials such as w rapping,
95	103		labels, tags, and instruction guides, that
96	104		accompany the retail sale of the products and are
97	105		incidental or immaterial to the retail sale
98	106		thereof, including but n ot limited to, grocery
99	107		sacks, shoeboxes, dry cleanin g garment bags and
100	108		express delivery envelopes and boxes,
101	109		(2) a product provided free of charge with the
102	110		required purchase of another product. A product
103	111		is provided free of charge if the sales price of
104	112		the product purchased do es not vary depending on
105	113		the inclusion of the product provided f ree of
106	114		charge, or
107	115		(3) items included in the definition of gross
108	116		receipts or sales price, pursuant to this
109	117		section,
110		-	b. "one nonitemized price " does not include a price tha t
111		-	is separately identi fied by product on binding sal es
112		-	or other supporting sales-related documentation made
113	118
114		-	ENGR. H. B. NO. 1955 Page 3 1
	119	+	HB1955 HFLR Page 3
	120	+	BOLD FACE denotes Committee Amendments. 1
115	121		2
116	122		3
117	123		4
118	124		5
119	125		6
120	126		7
121	127		8
122	128		9
123	129		10
124	130		11
125	131		12
126	132		13
127	133		14
128	134		15
129	135		16
130	136		17
131	137		18
132	138		19
133	139		20
134	140		21
135	141		22
136	142		23
137	143		24
138	144
	145	+	b. "one nonitemized price " does not include a price tha t
	146	+	is separately identi fied by product on binding sal es
	147	+	or other supporting sales -related documentation made
139	148		available to the customer in paper or electronic form
140	149		including, but not limited to an invoice, bill of
141	150		sale, receipt, contract, service agreement, lease
142	151		agreement, periodic notice of rates and servic es, rate
143	152		card, or price list,
144	153		A transaction that otherwise meets the definition of a bundled
145	154		transaction shall not be considered a bundled transaction if it is:
146	155		(1) the retail sale of tangible personal pr operty and
147	156		a service where the tangible personal pro perty is
148	157		essential to the use of t he service, and is
149	158		provided exclusively in connection with the
150	159		service, and the true object of the transaction
151	160		is the service,
152	161		(2) the retail sale of services where one s ervice is
153	162		provided that is essential to the use or r eceipt
154	163		of a second service and the first service is
155	164		provided exclusively in connection with the
156	165		second service and the true object of the
157	166		transaction is the second service,
158	167		(3) a transaction that includes taxable products and
159	168		nontaxable products and the pu rchase price or
160		-	sales price of the taxable products is de
161		-	minimis. For purposes of this subdivision, "de
162		-	minimis" means the seller's purchase price or
163	169
164		-	ENGR. H. B. NO. 1955 Page 4 1
	170	+	HB1955 HFLR Page 4
	171	+	BOLD FACE denotes Committee Amendments. 1
165	172		2
166	173		3
167	174		4
168	175		5
169	176		6
170	177		7
171	178		8
172	179		9
173	180		10
174	181		11
175	182		12
176	183		13
177	184		14
178	185		15
179	186		16
180	187		17
181	188		18
182	189		19
183	190		20
184	191		21
185	192		22
186	193		23
187	194		24
188	195
	196	+	sales price of the taxable products is de
	197	+	minimis. For purposes of this subdivision, "de
	198	+	minimis" means the seller's purchase price or
189	199		sales price of taxable products is ten percent
190	200		(10%) or less of the total purchase price or
191	201		sales price of the bundled products. Sellers
192	202		shall use either the purchase price or the sales
193	203		price of the products to determi ne if the taxable
194	204		products are de minimis. Sellers may not use a
195	205		combination of the purc hase price and sales p rice
196	206		of the products to determ ine if the taxable
197	207		products are de minimis. Sellers shall use the
198	208		full term of a service contract to determine if
199	209		the taxable products are de minimis, or
200	210		(4) the retail sale of exempt tangible personal
201	211		property and taxable ta ngible personal property
202	212		where:
203	213		(a) the transaction includes foo d and food
204	214		ingredients, drugs, durable medical
205	215		equipment, mobility enhancing equi pment,
206	216		over-the-counter drugs, prosthetic devices
207	217		or medical supplies, and
208	218		(b) the seller's purchase price or s ales price
209	219		of the taxable tangible personal property is
210		-	fifty percent (50%) or less of the total
211		-	purchase price or sales price of the bundled
212		-	tangible personal property. Sellers may not
213	220
214		-	ENGR. H. B. NO. 1955 Page 5 1
	221	+	HB1955 HFLR Page 5
	222	+	BOLD FACE denotes Committee Amendments. 1
215	223		2
216	224		3
217	225		4
218	226		5
219	227		6
220	228		7
221	229		8
222	230		9
223	231		10
224	232		11
225	233		12
226	234		13
227	235		14
228	236		15
229	237		16
230	238		17
231	239		18
232	240		19
233	241		20
234	242		21
235	243		22
236	244		23
237	245		24
238	246
	247	+	fifty percent (50%) or less of the total
	248	+	purchase price or sales price of the bundled
	249	+	tangible personal property. Sellers may not
239	250		use a combination of the purchase price and
240	251		sales price of the tangib le personal
241	252		property when making the fifty percent (50%)
242	253		determination for a transaction;
243	254		2. 3. "Business" means any activity engaged in or caused to be
244	255		engaged in by any person with the object of gain, benefit, or
245	256		advantage, either direct or indirect;
246	257		3. 4. "Candy" means a preparation of sugar, honey, or other
247	258		natural or artificial sweeteners in combination with chocolate,
248	259		fruits, nuts, or other ingredients or flavorings in the form of
249	260		bars, drops, or pieces. Candy shall not includ e any preparation
250	261		containing flour or requiring refrigeration;
251	262		5. "Commission" or "Tax Commission" means the Oklahoma Tax
252	263		Commission;
253	264		4. 6. "Computer" means an electronic device that ac cepts
254	265		information in digital or similar form and manipulate s it for a
255	266		result based on a sequence of instructions;
256	267		5. 7. "Computer software" means a set of coded inst ructions
257	268		designed to cause a "computer" or automatic data processing
258	269		equipment to perform a task;
259		-	6. 8. "Consumer" or "user" means a person to whom a taxa ble
260		-	sale of tangible personal property is made or to who m a taxable
261		-	service is furnished. "Consumer" or "user" includes all contractors
262		-	to whom a taxable sale of materials, supplies, equipme nt, or other
263	270
264		-	ENGR. H. B. NO. 1955 Page 6 1
	271	+	HB1955 HFLR Page 6
	272	+	BOLD FACE denotes Committee Amendments. 1
265	273		2
266	274		3
267	275		4
268	276		5
269	277		6
270	278		7
271	279		8
272	280		9
273	281		10
274	282		11
275	283		12
276	284		13
277	285		14
278	286		15
279	287		16
280	288		17
281	289		18
282	290		19
283	291		20
284	292		21
285	293		22
286	294		23
287	295		24
288	296
	297	+	6. 8. "Consumer" or "user" means a person to whom a taxa ble
	298	+	sale of tangible personal property is made or to who m a taxable
	299	+	service is furnished. "Consumer" or "user" includes all contractors
	300	+	to whom a taxable sale of materials, supplies, equipme nt, or other
289	301		tangible personal prop erty is made or to whom a taxa ble service is
290	302		furnished to be used or consumed in the p erformance of any contrac t;
291	303		7. 9. "Contractor" means any person who performs any
292	304		improvement upon real property and who, as a necessar y and
293	305		incidental part of performing su ch improvement, incorporates
294	306		tangible personal property belonging to or purchased b y the person
295	307		into the real property being improved;
296	308		8. 10. "Dietary supplements" means any product, other than
297	309		tobacco, intended to su pplement the diet that:
298	310		a. contains one or more of the following diet ary
299	311		ingredients:
300	312		(1) a vitamin,
301	313		(2) a mineral,
302	314		(3) an herb or other botanical,
303	315		(4) an amino acid,
304	316		(5) a dietary substance to supplement the diet by
305	317		increasing the total dietary intake, or
306	318		(6) a concentrate, metabolite, constituent, extract,
307	319		or combination of any ingredient described in
308	320		divisions (1) through (5) of this subparagraph,
309		-	b. is intended for ingestion in tablet, capsule, powder,
310		-	softgel, gelcap, or liquid form, or, if not intende d
311		-	for ingestion in such form, is not represented as
312	321
313		-	ENGR. H. B. NO. 1955 Page 7 1
	322	+	HB1955 HFLR Page 7
	323	+	BOLD FACE denotes Committee Amendments. 1
314	324		2
315	325		3
316	326		4
317	327		5
318	328		6
319	329		7
320	330		8
321	331		9
322	332		10
323	333		11
324	334		12
325	335		13
326	336		14
327	337		15
328	338		16
329	339		17
330	340		18
331	341		19
332	342		20
333	343		21
334	344		22
335	345		23
336	346		24
337	347
	348	+	b. is intended for ingestion in tablet, capsule, powder,
	349	+	softgel, gelcap, or liquid form, or, if not intende d
	350	+	for ingestion in such form, is not represented as
338	351		conventional food and is not represented for use as a
339	352		sole item of a meal or of the diet, and
340	353		c. is required to be labeled as a dietary supplement,
341	354		identifiable by the label and as required pursuant to
342	355		Section 101.36 of Title 21 of the Code of Federal
343	356		Regulations;
344	357		11. "Drug" means a compound, substance o r preparation, and any
345	358		component of a compound, substance or pre paration:
346	359		a. recognized in the official United States
347	360		Pharmacopoeia, official Homeopathic Pharmacopoeia of
348	361		the United States, or official National Formulary, a nd
349	362		supplement to any of them,
350	363		b. intended for use in the diagnosis, cure, mitigation,
351	364		treatment, or prevention of disease, or
352	365		c. intended to affect the structure or any function of
353	366		the body;
354	367		9. 12. "Electronic" means relating to technology having
355	368		electrical, digital, magnetic, wireless, opti cal, electromagnetic,
356	369		or similar capabilities;
357	370		10. 13. "Established place of busines s" means the location at
358	371		which any person regularly engages in, c onducts, or operates a
359		-	business in a continuou s manner for any length of time, that is open
360		-	to the public during the hours customary to such business, in which
361		-	a stock of merchandise for resale is maintained, and which is not
362	372
363		-	ENGR. H. B. NO. 1955 Page 8 1
	373	+	HB1955 HFLR Page 8
	374	+	BOLD FACE denotes Committee Amendments. 1
364	375		2
365	376		3
366	377		4
367	378		5
368	379		6
369	380		7
370	381		8
371	382		9
372	383		10
373	384		11
374	385		12
375	386		13
376	387		14
377	388		15
378	389		16
379	390		17
380	391		18
381	392		19
382	393		20
383	394		21
384	395		22
385	396		23
386	397		24
387	398
	399	+	business in a continuou s manner for any length of time, that is open
	400	+	to the public during the hours customary to such business, in which
	401	+	a stock of merchandise for resa le is maintained, and which is not
388	402		exempted by law from attachmen t, execution, or other species of
389	403		forced sale barring any satisfactio n of any delinquent tax liability
390	404		accrued under the Oklahoma Sales Tax Code;
391	405		11. 14. "Fair authority" means:
392	406		a. any county, municipality, school district, public
393	407		trust or any other polit ical subdivision of this
394	408		state, or
395	409		b. any not-for-profit corporation acting pursuant to an
396	410		agency, operating or ma nagement agreement which has
397	411		been approved or author ized by the governing body of
398	412		any of the entities specified in subparagraph a of
399	413		this paragraph which conduct, operate or produce a
400	414		fair commonly understood to be a county, district or
401	415		state fair;
402	416		15. "Food and food ingredients" means substances, whether in
403	417		liquid, concentrated, solid, frozen, dried , or dehydrated form, that
404	418		are sold for ingestion or chewing by humans and are consumed for
405	419		their taste or nutriti onal value. Food and food ingredients shall
406	420		include bottled water, candy, and soft drinks. Food and food
407	421		ingredients shall not include:
408	422		a. alcoholic beverages,
409		-	b. dietary supplements,
410		-	c. marijuana, usable marijuana , or marijuana-infused
411		-	products,
412	423
413		-	ENGR. H. B. NO. 1955 Page 9 1
	424	+	HB1955 HFLR Page 9
	425	+	BOLD FACE denotes Committee Amendments. 1
414	426		2
415	427		3
416	428		4
417	429		5
418	430		6
419	431		7
420	432		8
421	433		9
422	434		10
423	435		11
424	436		12
425	437		13
426	438		14
427	439		15
428	440		16
429	441		17
430	442		18
431	443		19
432	444		20
433	445		21
434	446		22
435	447		23
436	448		24
437	449
	450	+	b. dietary supplements,
	451	+	c. marijuana, usable marijuana , or marijuana-infused
	452	+	products,
438	453		d. prepared food, or
439	454		e. tobacco;
440	455		12.
441	456		16. a. "Gross receipts", "gross proceeds" or "sales price"
442	457		means the total amount of con sideration, including
443	458		cash, credit, property and services, for which
444	459		personal property or services are sold, le ased or
445	460		rented, valued in money, whether received in money or
446	461		otherwise, without any deduction for the following:
447	462		(1) the seller's cost of the property sold,
448	463		(2) the cost of materials used, labor or service
449	464		cost,
450	465		(3) interest, losses, all costs of transpor tation to
451	466		the seller, all taxes imposed on the seller, and
452	467		any other expense of the seller,
453	468		(4) charges by the seller for an y services necessary
454	469		to complete the sale, other th an delivery and
455	470		installation charges,
456	471		(5) delivery charges and installation charg es, unless
457	472		separately stated on the invoice, billing or
458	473		similar document given to the purchaser, and
459		-	(6) credit for any trade-in.
460		-	b. Such term shall not include:
461	474
462		-	ENGR. H. B. NO. 1955 Page 10 1
	475	+	HB1955 HFLR Page 10
	476	+	BOLD FACE denotes Committee Amendments. 1
463	477		2
464	478		3
465	479		4
466	480		5
467	481		6
468	482		7
469	483		8
470	484		9
471	485		10
472	486		11
473	487		12
474	488		13
475	489		14
476	490		15
477	491		16
478	492		17
479	493		18
480	494		19
481	495		20
482	496		21
483	497		22
484	498		23
485	499		24
486	500
	501	+	(6) credit for any trade-in.
	502	+	b. Such term shall not include:
487	503		(1) discounts, including cash, term, or coupons that
488	504		are not reimbursed by a third party that are
489	505		allowed by a seller and taken by a purchaser on a
490	506		sale,
491	507		(2) interest, financing, and carrying charges from
492	508		credit extended on the sale of per sonal property
493	509		or services, if the amount is separately stated
494	510		on the invoice, bill of sale or similar document
495	511		given to the purchaser, an d
496	512		(3) any taxes legally imposed direc tly on the
497	513		consumer that are separately stated on the
498	514		invoice, bill of sale or si milar document given
499	515		to the purchaser.
500	516		c. Such term shall include con sideration received by the
501	517		seller from third parties if:
502	518		(1) the seller actually receives consideration fr om a
503	519		party other than the purchaser and the
504	520		consideration is directly related to a price
505	521		reduction or discount on the sale,
506	522		(2) the seller has an obli gation to pass the price
507	523		reduction or discount through to the purchas er,
508		-	(3) the amount of the considerati on attributable to
509		-	the sale is fixed and determinable by the seller
510	524
511		-	ENGR. H. B. NO. 1955 Page 11 1
	525	+	HB1955 HFLR Page 11
	526	+	BOLD FACE denotes Committee Amendments. 1
512	527		2
513	528		3
514	529		4
515	530		5
516	531		6
517	532		7
518	533		8
519	534		9
520	535		10
521	536		11
522	537		12
523	538		13
524	539		14
525	540		15
526	541		16
527	542		17
528	543		18
529	544		19
530	545		20
531	546		21
532	547		22
533	548		23
534	549		24
535	550
	551	+	(3) the amount of the considerati on attributable to
	552	+	the sale is fixed and determinable by the seller
536	553		at the time of the sale of the item to the
537	554		purchaser, and
538	555		(4) one of the following criteria is met:
539	556		(a) the purchaser presen ts a coupon, certificate
540	557		or other documentation to the seller to
541	558		claim a price reduction or discount where
542	559		the coupon, certificate or documentati on is
543	560		authorized, distributed or granted by a
544	561		third party with the un derstanding that the
545	562		third party will reim burse any seller to
546	563		whom the coupon, certificate or
547	564		documentation is presented,
548	565		(b) the purchaser identifies himself or hers elf
549	566		to the seller as a member of a group or
550	567		organization entitled to a price reduction
551	568		or discount; provided, a "preferred
552	569		customer" card that is available to any
553	570		patron does not constitute member ship in
554	571		such a group, or
555	572		(c) the price reduction or discount is
556	573		identified as a third-party price reduction
557	574		or discount on the invoice received by the
558		-	purchaser or on a coupon, certificate or
559	575
560		-	ENGR. H. B. NO. 1955 Page 12 1
	576	+	HB1955 HFLR Page 12
	577	+	BOLD FACE denotes Committee Amendments. 1
561	578		2
562	579		3
563	580		4
564	581		5
565	582		6
566	583		7
567	584		8
568	585		9
569	586		10
570	587		11
571	588		12
572	589		13
573	590		14
574	591		15
575	592		16
576	593		17
577	594		18
578	595		19
579	596		20
580	597		21
581	598		22
582	599		23
583	600		24
584	601
	602	+	purchaser or on a coupon, certificate or
585	603		other documentation present ed by the
586	604		purchaser;
587	605		13.
588	606		17. a. "Maintaining a place of business in this state " means
589	607		and shall be presumed to include:
590	608		(1) (a) utilizing or maintainin g in this state,
591	609		directly or by subsidiary, an office,
592	610		distribution house, sales house, warehouse,
593	611		or other physical place of business, whether
594	612		owned or operated by the vendor or any other
595	613		person, other than a common carrier a cting
596	614		in its capacity as such, or
597	615		(b) having agents operating in this state,
598	616		whether the place of business or a gent
599	617		is within this state temporarily or
600	618		permanently or whether the person or
601	619		agent is authorized to do business
602	620		within this state, and
603	621		(2) the presence of any person, other t han a common
604	622		carrier acting in its capacity as such, that has
605	623		substantial nexus in this state and that:
606		-	(a) sells a similar line of products as t he
607		-	vendor and does so under the same or a
608		-	similar business name,
609	624
610		-	ENGR. H. B. NO. 1955 Page 13 1
	625	+	HB1955 HFLR Page 13
	626	+	BOLD FACE denotes Committee Amendments. 1
611	627		2
612	628		3
613	629		4
614	630		5
615	631		6
616	632		7
617	633		8
618	634		9
619	635		10
620	636		11
621	637		12
622	638		13
623	639		14
624	640		15
625	641		16
626	642		17
627	643		18
628	644		19
629	645		20
630	646		21
631	647		22
632	648		23
633	649		24
634	650
	651	+	(a) sells a similar line of products as t he
	652	+	vendor and does so under the same or a
	653	+	similar business name,
635	654		(b) uses trademarks, service marks or trade
636	655		names in this state that are the same
637	656		or substantially similar to those used
638	657		by the vendor,
639	658		(c) delivers, installs, assembles or
640	659		performs maintenance services for the
641	660		vendor,
642	661		(d) facilitates the vendor 's delivery of
643	662		property to customers in the state by
644	663		allowing the vendor's customers to pick
645	664		up property sold by the vendor at an
646	665		office, distribution facility,
647	666		warehouse, storage place or similar
648	667		place of business maintained by the
649	668		person in this state, or
650	669		(e) conducts any other ac tivities in this state
651	670		that are significantly associated with the
652	671		vendor's ability to establish and maintain a
653	672		market in this state fo r the vendor's sale.
654	673		b. The presumptions in divisions (1) and (2) of
655	674		subparagraph a of this parag raph may be rebutted by
656		-	demonstrating that the person 's activities in this
657		-	state are not significantly associated with the
658	675
659		-	ENGR. H. B. NO. 1955 Page 14 1
	676	+	HB1955 HFLR Page 14
	677	+	BOLD FACE denotes Committee Amendments. 1
660	678		2
661	679		3
662	680		4
663	681		5
664	682		6
665	683		7
666	684		8
667	685		9
668	686		10
669	687		11
670	688		12
671	689		13
672	690		14
673	691		15
674	692		16
675	693		17
676	694		18
677	695		19
678	696		20
679	697		21
680	698		22
681	699		23
682	700		24
683	701
	702	+	demonstrating that the person 's activities in this
	703	+	state are not significantly associated with the
684	704		vendor's ability to establish and ma intain a market in
685	705		this state for the ven dor's sales.
686	706		c. Any ruling, agreement or contract, wheth er written or
687	707		oral, express or implied, between a perso n and
688	708		executive branch of this stat e, or any other state
689	709		agency or department, st ating, agreeing or ruli ng that
690	710		the person is not "maintaining a place of business in
691	711		this state" or is not required to c ollect sales and
692	712		use tax in this state despite the pres ence of a
693	713		warehouse, distribution c enter or fulfillment center
694	714		in this state that is owned or operated b y the vendor
695	715		or an affiliated person of t he vendor shall be null
696	716		and void unless it is specifical ly approved by a
697	717		majority vote of each house of the Okl ahoma
698	718		Legislature;
699	719		14. 18. "Manufacturing" means and includes the activity of
700	720		converting or conditioning tangible personal property by changing
701	721		the form, composition, or quality of character of some e xisting
702	722		material or materials , including natural resources, by procedures
703	723		commonly regarded by the average person as manufacturing,
704	724		compounding, processing or assembling, into a material or materials
705	725		with a different form or use. "Manufacturing" does not include
706		-	extractive industrial activities such as mining, qu arrying, logging,
707		-	and drilling for oil, gas and water, nor oil and gas field
708	726
709		-	ENGR. H. B. NO. 1955 Page 15 1
	727	+	HB1955 HFLR Page 15
	728	+	BOLD FACE denotes Committee Amendments. 1
710	729		2
711	730		3
712	731		4
713	732		5
714	733		6
715	734		7
716	735		8
717	736		9
718	737		10
719	738		11
720	739		12
721	740		13
722	741		14
723	742		15
724	743		16
725	744		17
726	745		18
727	746		19
728	747		20
729	748		21
730	749		22
731	750		23
732	751		24
733	752
	753	+	extractive industrial activities such as mining, qu arrying, logging,
	754	+	and drilling for oil, gas and water, nor oil and gas field
734	755		processes, such as natural pressure reduction, mechanical
735	756		separation, heating, cooling, dehydration and compression;
736	757		15. 19. "Manufacturing operation " means the designing,
737	758		manufacturing, compounding, processin g, assembling, warehousing, or
738	759		preparing of articles f or sale as tangible personal property. A
739	760		manufacturing operatio n begins at the point where the materials
740	761		enter the manufacturing site and ends a t the point where a finished
741	762		product leaves the manufactu ring site. "Manufacturing operation "
742	763		does not include administration, sales, distribution,
743	764		transportation, site const ruction, or site maintenance. Extractive
744	765		activities and field processes shall no t be deemed to be a part of a
745	766		manufacturing operation eve n when performed by a person otherwise
746	767		engaged in manufacturing;
747	768		16. 20. "Manufacturing site" means a location where a
748	769		manufacturing operation is conducted, includin g a location
749	770		consisting of one or mor e buildings or structures in a n area owned,
750	771		leased, or controlled by a manufacturer;
751	772		17. 21. "Over-the-counter drug" means a drug that contains a
752	773		label that identifies the p roduct as a drug as required by 21
753	774		C.F.R., Section 201.66. The over -the-counter-drug label includes:
754	775		a. a "Drug Facts" panel, or
755		-	b. a statement of the "active ingredient(s) " with a list
756		-	of those ingredients contained in the compound,
757		-	substance or preparat ion;
758	776
759		-	ENGR. H. B. NO. 1955 Page 16 1
	777	+	HB1955 HFLR Page 16
	778	+	BOLD FACE denotes Committee Amendments. 1
760	779		2
761	780		3
762	781		4
763	782		5
764	783		6
765	784		7
766	785		8
767	786		9
768	787		10
769	788		11
770	789		12
771	790		13
772	791		14
773	792		15
774	793		16
775	794		17
776	795		18
777	796		19
778	797		20
779	798		21
780	799		22
781	800		23
782	801		24
783	802
	803	+	b. a statement of the "active ingredient(s) " with a list
	804	+	of those ingredients contained in the compound,
	805	+	substance or preparat ion;
784	806		18. 22. "Person" means any individual, company, partnership,
785	807		joint venture, joint ag reement, association, mutual o r otherwise,
786	808		limited liability company, corporation, estate, trust, business
787	809		trust, receiver or trustee appointed by any state or federa l court
788	810		or otherwise, syndicate, this state, any county, city, municipality,
789	811		school district, any other political subdiv ision of the state, or
790	812		any group or combination acting as a unit, in the plural o r singular
791	813		number;
792	814		23. "Prepared food" means:
793	815		a. food sold in a heated state or that is heated by the
794	816		seller,
795	817		b. two or more food ingredients mixed or com bined by the
796	818		seller for sale as a single item, or
797	819		c. food sold with eating utensils provided by the sell er,
798	820		including plates, knives, forks, spoons, glasses,
799	821		cups, napkins, or straws;
800	822		19. 24. "Prescription" means an order, formula o r recipe issued
801	823		in any form of oral, written, electronic, or other means of
802	824		transmission by a duly licensed "practitioner" as defined in Section
803	825		1357.6 of this title;
804		-	20. 25. "Prewritten computer software" means "computer
805		-	software", including prewritten upgra des, which is not designed and
806		-	developed by the author or other creator to the sp ecifications of a
807		-	specific purchaser. The combining of two or more prewritten
808	826
809		-	ENGR. H. B. NO. 1955 Page 17 1
	827	+	HB1955 HFLR Page 17
	828	+	BOLD FACE denotes Committee Amendments. 1
810	829		2
811	830		3
812	831		4
813	832		5
814	833		6
815	834		7
816	835		8
817	836		9
818	837		10
819	838		11
820	839		12
821	840		13
822	841		14
823	842		15
824	843		16
825	844		17
826	845		18
827	846		19
828	847		20
829	848		21
830	849		22
831	850		23
832	851		24
833	852
	853	+	20. 25. "Prewritten computer software" means "computer
	854	+	software", including prewritten upgra des, which is not designed and
	855	+	developed by the author or other creator to the sp ecifications of a
	856	+	specific purchaser. The combining of two or more prewritten
834	857		computer software programs or prewritten portions thereof do es not
835	858		cause the combination to be o ther than prewritten computer software.
836	859		Prewritten software includes software de signed and developed by the
837	860		author or other creator to the specifications of a specific
838	861		purchaser when it is sold to a person other than th e purchaser.
839	862		Where a person modifie s or enhances computer software of which the
840	863		person is not the author or creator, the person shall be deemed to
841	864		be the author or creator only of such person 's modifications or
842	865		enhancements. Prewritten software or a prew ritten portion thereof
843	866		that is modified or enhanced to any degree, where such modification
844	867		or enhancement is designed and developed to the specific ations of a
845	868		specific purchaser, remains prewritten software; pro vided, however,
846	869		that where there is a reasona ble, separately stated charge or an
847	870		invoice or other statement of the price given to the p urchaser for
848	871		such modification or enhancement, such modif ication or enhancement
849	872		shall not constitute prewritten computer software;
850	873		21. 26. "Repairman" means any person who performs any repair
851	874		service upon tangible personal property of the consumer, whethe r or
852	875		not the repairman, as a ne cessary and incidental part of performing
853	876		the service, incorporates tangible personal prop erty belonging to or
854		-	purchased by the repairman into the tangible personal property b eing
855		-	repaired;
856		-	22. 27. "Sale" means the transfer of either title or possession
857		-	of tangible personal property for a valuable consideration
858	877
859		-	ENGR. H. B. NO. 1955 Page 18 1
	878	+	HB1955 HFLR Page 18
	879	+	BOLD FACE denotes Committee Amendments. 1
860	880		2
861	881		3
862	882		4
863	883		5
864	884		6
865	885		7
866	886		8
867	887		9
868	888		10
869	889		11
870	890		12
871	891		13
872	892		14
873	893		15
874	894		16
875	895		17
876	896		18
877	897		19
878	898		20
879	899		21
880	900		22
881	901		23
882	902		24
883	903
	904	+	purchased by the repairm an into the tangible personal property b eing
	905	+	repaired;
	906	+	22. 27. "Sale" means the transfer of either title or possession
	907	+	of tangible personal property for a valuable consideration
884	908		regardless of the manner, method , instrumentality, or dev ice by
885	909		which the transfer is accomplished in this state, or othe r
886	910		transactions as provided by this paragraph, including but not
887	911		limited to:
888	912		a. the exchange, barter, lease, or rental of tangible
889	913		personal property resulting in the tr ansfer of the
890	914		title to or possession of the property,
891	915		b. the disposition for consumption or use in any business
892	916		or by any person of all goods, wares, merchandise, or
893	917		property which has been purchased for resale,
894	918		manufacturing, or further processing,
895	919		c. the sale, gift, exchange, or other disposition of
896	920		admission, dues, or fees to clubs, places of
897	921		amusement, or recreational or athletic even ts or for
898	922		the privilege of having a ccess to or the use of
899	923		amusement, recreational, athletic or entertainment
900	924		facilities,
901	925		d. the furnishing or rend ering of services ta xable under
902	926		the Oklahoma Sales Tax Code, and
903		-	e. any use of motor fuel or diesel fuel by a supplier, as
904		-	defined in Section 500 .3 of this title, upon which
905		-	sales tax has not previously been paid, for purposes
906		-	other than to propel motor vehicles over the public
907		-	highways of this state. Motor fuel or di esel fuel
908	927
909		-	ENGR. H. B. NO. 1955 Page 19 1
	928	+	HB1955 HFLR Page 19
	929	+	BOLD FACE denotes Committee Amendments. 1
910	930		2
911	931		3
912	932		4
913	933		5
914	934		6
915	935		7
916	936		8
917	937		9
918	938		10
919	939		11
920	940		12
921	941		13
922	942		14
923	943		15
924	944		16
925	945		17
926	946		18
927	947		19
928	948		20
929	949		21
930	950		22
931	951		23
932	952		24
933	953
	954	+	e. any use of motor fuel or diesel fuel by a supplier, as
	955	+	defined in Section 500 .3 of this title, upon which
	956	+	sales tax has not previously been paid, for purposes
	957	+	other than to propel motor ve hicles over the publ ic
	958	+	highways of this state. Motor fuel or di esel fuel
934	959		purchased outside the state and used for purposes
935	960		other than to propel motor vehicles over the public
936	961		highways of this state shall not constitute a sale
937	962		within the meaning of this pa ragraph;
938	963		23. 28. "Sale for resale" means:
939	964		a. a sale of tangible per sonal property to any purchaser
940	965		who is purchasing tangible personal property for the
941	966		purpose of reselling it wi thin the geographical limits
942	967		of the United States of America or its territories o r
943	968		possessions, in the normal course of business either
944	969		in the form or condition in which it is purchased o r
945	970		as an attachment to or integral part of other tangible
946	971		personal property,
947	972		b. a sale of tangible personal property to a purchaser
948	973		for the sole purpose of the renting or leasing, within
949	974		the geographical limits of t he United States of
950	975		America or its territo ries or possessions, of the
951	976		tangible personal property to another per son by the
952		-	purchaser, but not if incidental to the r enting or
953		-	leasing of real estate,
954		-	c. a sale of tangible goods and products within this
955		-	state if, simultaneously with the sale, the vend or
956		-	issues an export bill of lading, or other
957		-	documentation that the p oint of delivery of such goods
958	977
959		-	ENGR. H. B. NO. 1955 Page 20 1
	978	+	HB1955 HFLR Page 20
	979	+	BOLD FACE denotes Committee Amendments. 1
960	980		2
961	981		3
962	982		4
963	983		5
964	984		6
965	985		7
966	986		8
967	987		9
968	988		10
969	989		11
970	990		12
971	991		13
972	992		14
973	993		15
974	994		16
975	995		17
976	996		18
977	997		19
978	998		20
979	999		21
980	1000		22
981	1001		23
982	1002		24
983	1003
	1004	+	purchaser, but not if incidental to the r enting or
	1005	+	leasing of real estate,
	1006	+	c. a sale of tangible goods and products within this
	1007	+	state if, simultaneously with the sale, the vend or
	1008	+	issues an export bill of lading, or other
	1009	+	documentation that the p oint of delivery of such goods
984	1010		for use and consumpti on is in a foreign country an d
985	1011		not within the territorial confines of the United
986	1012		States. If the vendor is not in the business of
987	1013		shipping the tangible goods and products tha t are
988	1014		purchased from the vendo r, the buyer or purchaser of
989	1015		the tangible goods and products is responsible for
990	1016		providing an export bill of lading or other
991	1017		documentation to the vendor from whom the tangible
992	1018		goods and products were purchased showing that the
993	1019		point of delivery of such good s for use and
994	1020		consumption is a foreign country and n ot within the
995	1021		territorial confines of the United States, or
996	1022		d. a sales of any carrier access services, right of
997	1023		access services, teleco mmunications services to be
998	1024		resold, or telecommunications used in the subsequent
999	1025		provision of, use as a component part of , or
1000	1026		integrated into, end -to-end telecommunications
1001	1027		service;
1002		-	29. "Soft drinks" means any nonalcoholic beverages that co ntain
1003		-	natural or artificial sweeteners. Soft drinks shall not include
1004		-	beverages that contain:
1005		-	a. milk or milk products,
1006		-	b. soy, rice, oat, or similar milk substitutes, or
1007	1028
1008		-	ENGR. H. B. NO. 1955 Page 21 1
	1029	+	HB1955 HFLR Page 21
	1030	+	BOLD FACE denotes Committee Amendments. 1
1009	1031		2
1010	1032		3
1011	1033		4
1012	1034		5
1013	1035		6
1014	1036		7
1015	1037		8
1016	1038		9
1017	1039		10
1018	1040		11
1019	1041		12
1020	1042		13
1021	1043		14
1022	1044		15
1023	1045		16
1024	1046		17
1025	1047		18
1026	1048		19
1027	1049		20
1028	1050		21
1029	1051		22
1030	1052		23
1031	1053		24
1032	1054
	1055	+	29. "Soft drinks" means any nonalcoholic beverages that co ntain
	1056	+	natural or artificial sweeteners. Soft drinks shall not include
	1057	+	beverages that contain:
	1058	+	a. milk or milk products,
	1059	+	b. soy, rice, oat, or similar milk substitutes, or
1033	1060		c. greater than fifty percent (50%) of vegetable or fruit
1034	1061		juice by volume;
1035	1062		24. 30. "Tangible personal property" means personal property
1036	1063		that can be seen, weighed, meas ured, felt, or touched o r that is in
1037	1064		any other manner perceptible to the senses. "Tangible personal
1038	1065		property" includes electricity, wa ter, gas, steam and prewritten
1039	1066		computer software. T his definition shall be applicable only for
1040	1067		purposes of the Oklahoma Sales Tax Code;
1041	1068		25. 31. "Taxpayer" means any person liable to pay a tax imposed
1042	1069		by the Oklahoma Sales Tax Code;
1043	1070		26. 32. "Tax period" or "taxable period" means the calendar
1044	1071		period or the taxpayer's fiscal period for which a taxpayer has
1045	1072		obtained a permit from the Tax Commission to use a fiscal period in
1046	1073		lieu of a calendar period;
1047	1074		27. 33. "Tax remitter" means any person required to collect,
1048	1075		report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
1049	1076		tax remitter who fails, for any reason, to collec t, report, or remit
1050	1077		the tax shall be considered a taxpayer for purposes of assessment,
1051		-	collection, and enforcement of the tax imposed by the Oklaho ma Sales
1052		-	Tax Code; and
1053		-	28. 34. "Vendor" means:
1054		-	a. any person making sales of tangible personal property
1055		-	or services in this state, the gross receipt s or gross
1056	1078
1057		-	ENGR. H. B. NO. 1955 Page 22 1
	1079	+	HB1955 HFLR Page 22
	1080	+	BOLD FACE denotes Committee Amendments. 1
1058	1081		2
1059	1082		3
1060	1083		4
1061	1084		5
1062	1085		6
1063	1086		7
1064	1087		8
1065	1088		9
1066	1089		10
1067	1090		11
1068	1091		12
1069	1092		13
1070	1093		14
1071	1094		15
1072	1095		16
1073	1096		17
1074	1097		18
1075	1098		19
1076	1099		20
1077	1100		21
1078	1101		22
1079	1102		23
1080	1103		24
1081	1104
	1105	+	collection, and enforcement of the tax imposed by the Oklaho ma Sales
	1106	+	Tax Code; and
	1107	+	28. 34. "Vendor" means:
	1108	+	a. any person making sales of tangible personal property
	1109	+	or services in this state, the gross receipt s or gross
1082	1110		proceeds from which are taxed by the Oklahoma Sales
1083	1111		Tax Code,
1084	1112		b. any person maintaining a place of b usiness in this
1085	1113		state and making sal es of tangible personal prop erty
1086	1114		or services, whether at the place of business or
1087	1115		elsewhere, to persons withi n this state, the gross
1088	1116		receipts or gross proceeds from w hich are taxed by the
1089	1117		Oklahoma Sales Tax Code,
1090	1118		c. any person who solicits business by empl oyees,
1091	1119		independent contracto rs, agents, or other
1092	1120		representatives in t his state, and thereby makes sales
1093	1121		to persons within this state of tangible personal
1094	1122		property or services, the gross receipts or gross
1095	1123		proceeds from which are taxed by the Oklahoma Sales
1096	1124		Tax Code, or
1097	1125		d. any person, pursuant to an agreement with the person
1098	1126		with an ownership interest in or title t o tangible
1099	1127		personal property, who has been entrusted with the
1100	1128		possession of any such property and has the power to
1101		-	designate who is to obtain title , to physically
1102		-	transfer possession of, or otherwise make sales of th e
1103		-	property.
1104	1129
1105		-	ENGR. H. B. NO. 1955 Page 23 1
	1130	+	HB1955 HFLR Page 23
	1131	+	BOLD FACE denotes Committee Amendments. 1
1106	1132		2
1107	1133		3
1108	1134		4
1109	1135		5
1110	1136		6
1111	1137		7
1112	1138		8
1113	1139		9
1114	1140		10
1115	1141		11
1116	1142		12
1117	1143		13
1118	1144		14
1119	1145		15
1120	1146		16
1121	1147		17
1122	1148		18
1123	1149		19
1124	1150		20
1125	1151		21
1126	1152		22
1127	1153		23
1128	1154		24
1129	1155
	1156	+	designate who is to obtain title , to physically
	1157	+	transfer possession of, or otherwise make sales of th e
	1158	+	property.
1130	1159		SECTION 2. NEW LAW A new section of law to be codified
1131	1160		in the Oklahoma Statutes as Section 1357.11 of Title 68, unless
1132	1161		there is created a dupli cation in numbering, reads as follow s:
1133	1162		A. 1. On or after the effective date of this act, an excise
1134	1163		tax of zero percent (0%) is hereby imposed upon all retail sales of
1135	1164		food and food ingredients sold for human consumption off the
1136	1165		premises where sold.
1137	1166		2. Any sales tax or excise tax levied by a city, town, county,
1138	1167		or any other jurisdiction in this state upon sales of food and food
1139	1168		ingredients shall be in effect regardless of ordinance or
1140	1169		contractual provisions referring to previously imposed state sales
1141	1170		tax on the items.
1142	1171		3. On or after the effective date of this act, until June 30,
1143	1172		2025, a county or a municipality that submits the question of a
1144	1173		sales tax or excise tax to its voters shall provide t hat the
1145	1174		increased rate does not apply to "food and food ingredients" as that
1146	1175		term is defined in Section 1352 of Title 68 of the Oklahoma
1147	1176		Statutes.
1148	1177		B. The Oklahoma Tax Commission shall promulgate any necessary
1149	1178		rules to implement the provisions of this sect ion in accordance with
1150	1179		the Streamlined Sales and Use Tax Agreement.
1151		-	SECTION 3. This act shall become effective July 1, 2023.
1152		-	SECTION 4. It being immediately necessary for the preservation
1153		-	of the public peace, health or safety, an emergency is hereby
1154	1180
1155		-	ENGR. H. B. NO. 1955 Page 24 1
	1181	+	HB1955 HFLR Page 24
	1182	+	BOLD FACE denotes Committee Amendments. 1
1156	1183		2
1157	1184		3
1158	1185		4
1159	1186		5
1160	1187		6
1161	1188		7
1162	1189		8
1163	1190		9
1164	1191		10
1165	1192		11
1166	1193		12
1167	1194		13
1168	1195		14
1169	1196		15
1170	1197		16
1171	1198		17
1172	1199		18
1173	1200		19
1174	1201		20
1175	1202		21
1176	1203		22
1177	1204		23
1178	1205		24
1179	1206
	1207	+	SECTION 3. This act shall become effective July 1, 2023.
	1208	+	SECTION 4. It being immediately necessary for the preservation
	1209	+	of the public peace, health or safety, an emergency is hereby
1180	1210		declared to exist, by reason whereof thi s act shall take effect and
1181	1211		be in full force from and after its passage and approval.
1182		-	Passed the House of Representatives the 21st day of March, 2023.
1183	1212
1184		-
1185		-
1186		-
1187		-	Presiding Officer of the House
1188		-	of Representatives
1189		-
1190		-
1191		-	Passed the Senate the ___ day of __________, 2023.
1192		-
1193		-
1194		-
1195		-
1196		-	Presiding Officer of the Senate
1197		-
1198		-
	1213	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	1214	+	03/02/2023 - DO PASS, As Coauthored.