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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2234 By: Lawson
COMMITTEE SUBSTITUTE
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 r esale
permits; providing for system of verification;
imposing duties on Oklahoma Tax Commission with
respect to verification systems; providing for
codification; providing an ef fective 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 cod ified
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 f or 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. The
permit may be obtained at no charge. The Oklahoma Tax Commission
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shall grant and issue to each applicant a Sale for Resale permit for
each business in this state, upon proper application there for 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 pro of shall be exempt
from the tax levied by Section 1350 et seq. of this title.
C. It shall be unlawful for any person 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 afte r a Sale for Resale permit
has been suspended, upon conviction, shall be guilty of a
misdemeanor punishable by a fine of not more than One Thousand
Dollars ($1,000.00).
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D. All Sale for Resale permits issued under the provisions of
this section shall expir e 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 resale, 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 numbe rs are valid. The
Oklahoma Tax Commission shall also provide a sell er 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.
SECTION 3. It being immediately necessary for the prese rvation
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall
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take effect and be in full force from and after i ts passage and
approval.
59-1-7951 JM 03/03/23