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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2234 By: Ford
AS INTRODUCED
An Act relating to revenue and taxation;
requiring sale for resale tax permits; providing
permit to be obtained without char ge; requiring
vendors to honor sale for resale permits;
providing for utilization of electronic
verification; providing certain conduct
prohibited by vendors with respect to sales for
resale; providing for expiration of sale for
resale permits; providing for system of
verification; imposing duties on Oklahoma Tax
Commission with resp ect to verification systems;
providing for codification; providing an
effective date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be
codified in the Oklahoma Statutes as Section 1364.4 of Title 68,
unless there is created a duplication in numbering, reads as
follows:
A. To utilize the Sale for Resale sales tax exemption, a
separate Sale for Resale exemption permit for each business to
be operated must be obtained from the Oklahoma Tax Commission.
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The permit may be obtained at no charge. The Oklahoma Tax
Commission shall grant and issue to each applicant a Sale for
Resale permit for each business in this state, upon proper
application therefor and verification thereof by the Oklahoma
Tax Commission. A business with multiple locations in this
state may operate under one Sale for Resale permit. The
Oklahoma Tax Commission may additionally provide for the access
to a granted and issued permit electronically, or by other such
means as established by the Oklahoma Tax Commission.
B. All vendors shall honor a valid Sale for Resale permit
for sales tax exemption as authorize d under this section and may
utilize the verification procedures outlined in subsection E of
this section, and sales t o a person providing such proof shall
be exempt from the tax levied by Section 1350 et seq. of of this
title.
C. It shall be unlawful for any pers on designated as a
Group One, Group Two, Group Three or Group Fou r vendor, pursuant
to Section 1363 of this title, to claim a sale for resale
exemption within this state unless a Sale for Resale permit or
permits shall have been issued to such person. Any person who
claims a sale for resale exemption subject to the pro visions of
this section without a Sale for Resale permit or permits, or
after a Sale for Resale permit has been suspended, upon
conviction, shall be guilty of a misdemeanor punishable by a
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fine of not more than One Thousand Dollars ($1,000.00). Any
person convicted of a second or subsequent violation hereof
shall be guilty of a felony and punishable by a fine of not more
than Five Thousand Do llars ($5,000.00) or by a term of
imprisonment in the State Penitentiary for not more than two (2)
years, or both such fine and imprisonment.
D. All Sale for Resale permits issued under the provisions
of this section shall expire at 11:59 p.m. on the next June 30
following the effective date of issuance.
E. If the Oklahoma Tax Commission develops and adopts a n
electronic system for exchanging information with sellers
regarding Sale for Resale permit numbers of purchasers who are
seeking to make purchases for resal e, sellers may use the system
to verify the validity of the Sale for Resale permit number.
The Oklahoma Tax Commission shall provide such sellers, free of
charge, verification of whether the Sale for Resale permit
numbers are valid. The Oklahoma Tax Commission shall also
provide a seller a transaction code authorizing the seller to
sell items purchased for re sale to purchasers who hold a valid
Sale for Resale permit. A seller that verifies a purchaser 's
permit number as outlined in this subsection shall create a
presumption that the sa le was a valid sale for resale exemption.
SECTION 2. This act shall become effective J uly 1, 2023.
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SECTION 3. It being immediately necessary for the
preservation of the public peace, health or safety, an emergency
is hereby declared to exist, by reason whereof this act shall
take effect and be in full force from and after i ts passage and
approval.
59-1-6119 MAH 01/15/23