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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2316 By: Hilbert
AS INTRODUCED
An Act relating to revenue and taxation; amendi ng 68
O.S. 2021, Sections 1352 and 1356, as last amended
by Section 1, Chapter 394, O.S. L. 2022 (68 O.S. Supp.
2022, Section 1356), which relate to sales taxation;
modifying definitions; providing definition of
occasional sales; modifying provisions for exemption
from sales taxation; providing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1352, is
amended to read as follows:
Section 1352. Definitions.
As used in the Oklahom a Sales Tax Code:
1. "Bundled transaction" means the retail sale of two or more
products, except real property and services to real property, where
the products are otherwise distinct and identifiable, and the
products are sold for one nonitemized price. A "bundled
transaction" does not include the sale of any products in which the
sales price varies, or is negotiable, based on the s election by the
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purchaser of the products included in the transaction. As used in
this paragraph:
a. "distinct and identifi able products" does not include:
(1) packaging such as containers, boxes, sacks, bags,
and bottles, or other materials such as wrapp ing,
labels, tags, and instruction guides, that
accompany the retail sale of the products and are
incidental or immaterial t o the retail sale
thereof, including but not limited to, grocery
sacks, shoeboxes, dry cleaning garm ent bags and
express delivery envelopes and boxes,
(2) a product provided free of charge with the
required purchase of another product. A product
is provided free of charge if the sales price of
the product purchased does not vary depending on
the inclusion of the product provided free of
charge, or
(3) items included in the definition of gross
receipts or sales price, pursuant to this
section,
b. "one nonitemized price" does not include a price that
is separately identified by product on binding sales
or other supporting sales -related documentation made
available to the customer in paper or electronic form
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including, but not limited to an invoice, bill of
sale, receipt, contract, service agreement, lease
agreement, periodic notice of rates and services, ra te
card, or price list,
A transaction that otherwise meets the definition of a bundled
transaction shall not be considered a bundled transaction if it is:
(1) the retail sale of tangible personal property and
a service where the tangible personal property is
essential to the use of the s ervice, and is
provided exclusively in connection with the
service, and the true object of the transaction
is the service,
(2) the retail sale of services where one service is
provided that is essential to the use or receipt
of a second service and the fir st service is
provided exclusively in connection with the
second service and the true object of the
transaction is the secon d service,
(3) a transaction that includes taxable products and
nontaxable products and the purchase price or
sales price of the tax able products is de
minimis. For purposes of this subdivision, "de
minimis" means the seller's purchase price or
sales price of taxable products is ten percent
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(10%) or less of the total purchase price or
sales price of the bundled products. Sellers
shall use either the purchase price or the sales
price of the products to determine if the taxable
products are de minimis. Sel lers may not use a
combination of the purchase price and sales price
of the products to determine if the taxable
products are de minimis. Sellers shall use the
full term of a service contract to determine if
the taxable products are de minimis, or
(4) the retail sale of exempt tangible personal
property and taxable tangible personal property
where:
(a) the transaction includes food an d food
ingredients, drugs, durable medical
equipment, mobility enhancing equipment,
over-the-counter drugs, prosthetic devic es
or medical supplies, and
(b) the seller's purchase price or sales price
of the taxable tangible p ersonal property is
fifty percent (50%) or less of the total
purchase price or sales price of the bundled
tangible personal property. Sellers may not
use a combination of the purchase price and
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sales price of the tangible personal
property when making the fifty percent (50%)
determination for a transaction;
2. "Business" means any activity engaged in or caused to be
engaged in by any person with the object of gain, benefit, or
advantage, either direct or indirect;
3. "Commission" or "Tax Commission" means the Oklahoma Tax
Commission;
4. "Computer" means an electronic device that accepts
information in digital or similar form and manipulates it for a
result based on a sequence of instructions;
5. "Computer software" means a set of coded instructions
designed to cause a "computer" or automatic data processing
equipment to perform a task;
6. "Consumer" or "user" means a person to whom a taxable sale
of tangible personal property is made or to whom a taxable service
is furnished. "Consumer" or "user" includes all contractors to whom
a taxable sale of materials, supplies, equipment, or other tangible
personal property is made or to whom a taxable service is fu rnished
to be used or consumed in the performance of any contract;
7. "Contractor" means any person who performs any improvement
upon real property and who, as a necessary and incidental part of
performing such improvement, incorporates tangible personal property
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belonging to or purchased by the person into the real property being
improved;
8. "Drug" means a compound, substance or pr eparation, and any
component of a compound, substance or preparation:
a. recognized in the official United States
Pharmacopoeia, official Homeopathic Pharmacopoeia of
the United States, or official National Formulary, and
supplement to any of them,
b. intended for use in the diagnosis, cure, mitigation,
treatment, or prevention of disease, or
c. intended to affect the structure or any function of
the body;
9. "Electronic" means relating to technology having electrical,
digital, magnetic, wireless, optical, electromagnetic, or similar
capabilities;
10. "Established place of business " means the location at which
any person regularly engages in, conducts, or operates a business in
a continuous manner for any length of time, tha t is open to the
public during the hours customary to such business, in which a stock
of merchandise for resale is maintained, and which is not exempted
by law from attachment, execution, or other species of forced sale
barring any satisfaction of any deli nquent tax liability accrued
under the Oklahoma Sales Tax Code;
11. "Fair authority" means:
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a. any county, municipality, school district, public
trust or any other political subdivision of this
state, or
b. any not-for-profit corporation acting pursuant t o an
agency, operating or manage ment agreement which has
been approved or authorized by the governing body of
any of the entities specified in subparagraph a of
this paragraph which conduct, operate or produce a
fair commonly understood to be a county, dis trict or
state fair;
12. a. "Gross receipts", "gross proceeds" or "sales price"
means the total amount of consideration, including
cash, credit, property an d services, for which
personal property or services are sold, leased or
rented, valued in money, whe ther received in money or
otherwise, without any deduction for the following:
(1) the seller's cost of the property sold,
(2) the cost of materials used, la bor or service
cost,
(3) interest, losses, all costs of transportation to
the seller, all taxes impo sed on the seller, and
any other expense of the seller,
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(4) charges by the seller for any services necessary
to complete the sale, other than delivery and
installation charges,
(5) delivery charges and installation charges, unless
separately stated on the invoice, billing or
similar document given to the purchaser, and
(6) credit for any trade -in.
b. Such term shall not include:
(1) discounts, including cash, term, or coupons that
are not reimbursed by a third party that are
allowed by a seller and taken by a purchaser on a
sale,
(2) interest, financing, and carrying charges from
credit extended on the sale of personal property
or services, if the amount is se parately stated
on the invoice, bill of sale or similar document
given to the purchaser, and
(3) any taxes legally imposed directly on the
consumer that are separately stated on the
invoice, bill of sale or similar document given
to the purchaser.
c. Such term shall include consideration received by the
seller from third parties if:
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(1) the seller actually receives consideration from a
party other than the purchaser and the
consideration is directly related to a price
reduction or discount on the sale,
(2) the seller has an obligation to pass the price
reduction or discount through to the purchaser,
(3) the amount of the consideration a ttributable to
the sale is fixed and determinable by the seller
at the time of the sale of the item to the
purchaser, and
(4) one of the following criteria is met:
(a) the purchaser presents a coupon, certificate
or other documentation to the seller to
claim a price reduction or discount where
the coupon, certificate or documentation is
authorized, distributed or granted by a
third party with the understanding that the
third party will reimburse any seller to
whom the coupon, certificate or
documentation is presented,
(b) the purchaser identifies himself or herself
to the seller as a member of a group or
organization entitled to a price reduction
or discount; provided, a "preferred
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customer" card that is available to any
patron does not constitute membership in
such a group, or
(c) the price reduction or discount is
identified as a third -party price reduction
or discount on the i nvoice received by the
purchaser or on a coupon, certificate or
other documentation presented by the
purchaser;
13. a. "Maintaining a place of business in this state " means
and shall be presumed to include:
(1) (a) utilizing or maintaining in this state,
directly or by subsidiary, an office,
distribution house, sales house, warehouse, or
other physical place of business, whether owned
or operated by the vendor or any other person,
other than a common carrier acting in its
capacity as such, or
(b) having agents operating in this state,
whether the place of business or agent is
within this state temporarily or permanently
or whether the person or agent is authorized
to do business within this state, and
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(2) the presence of any person, other than a common
carrier acting in its capacity as such, that has
substantial nexus in this state and that:
(a) sells a similar line of products as the
vendor and does so under the same or a
similar business name,
(b) uses trademarks, service marks or trade
names in this state that are the same or
substantially similar to those used by the
vendor,
(c) delivers, installs, asse mbles or performs
maintenance services for the vendor,
(d) facilitates the vendor 's delivery of
property to customers in the state by
allowing the vendor's customers to pick up
property sold by the vendor at an office,
distribution facility, warehouse, sto rage
place or similar place of b usiness
maintained by the person in this state, or
(e) conducts any other activities in this state
that are significantly as sociated with the
vendor's ability to establish and maintain a
market in this state for the vendor 's sale.
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b. The presumptions in di visions (1) and (2) of
subparagraph a of this paragraph may be rebutted by
demonstrating that the person 's activities in this
state are not significantly associated with the
vendor's ability to establish and maintain a marke t in
this state for the vendor 's sales.
c. Any ruling, agreement or contract, whether written or
oral, express or implied, between a person and
executive branch of this state, or any other state
agency or department, stating, agreeing or ruling that
the person is not "maintaining a place of business in
this state" or is not required to collect sales and
use tax in this state despite the presence of a
warehouse, distribution center or fulfillment center
in this state that is owned or operated by the vendor
or an affiliated person of the ve ndor shall be null
and void unless it is specifically approved by a
majority vote of each house of the Oklahoma
Legislature;
14. "Manufacturing" means and includes the activity of
converting or conditioning tangible persona l property by changing
the form, composition, or quality of character of some existing
material or materials, including natural resources, by procedures
commonly regarded by the average person as manufacturing,
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compounding, processing or assembling, into a material or materials
with a different form or use. "Manufacturing" does not include
extractive industrial activities such as mining, quarrying, logging,
and drilling for oil, gas and water, nor oil and gas field
processes, such as natural pressure reduc tion, mechanical
separation, heating, cooling, dehydration and compression;
15. "Manufacturing operation " means the designing,
manufacturing, compounding, processing, assembling, warehousing, or
preparing of articles for sale as tangible personal property . A
manufacturing operation beg ins at the point where the materials
enter the manufacturing site and ends at the point where a finished
product leaves the manufacturing site. "Manufacturing operation"
does not include administration, sales, distribution,
transportation, site constructi on, or site maintenance. Extractive
activities and field processes shall not be deemed to be a part of a
manufacturing operation even when performed by a person otherwise
engaged in manufacturing;
16. "Manufacturing site" means a location where a manufac turing
operation is conducted, including a location consisting of one or
more buildings or structures in an area owned, leas ed, or controlled
by a manufacturer;
17. "Occasional sale" means:
a. one or two sales of taxable items, other than an
amusement service, at retail during a twelve-month
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period by a person who does not habitually engage, or
hold himself out as engaging, in the business of
selling taxable items at retail,
b. the sale of the entire operating asse ts of a business
or of a separate division, branch, or identifiable
segment of a business ,
c. a transfer of all or substantially all the property
used by a person in t he course of an activity if after
the transfer the real or ultimate ownership of the
property is substantially similar to that which
existed before the transfer ,
d. the sale of not more than ten admissions for amusement
services during a twelve-month period by a person who
does not hold himself out as engaging, or does not
habitually engage, in p roviding amusement services, or
e. the sale of tangible personal property by an
individual if:
(1) the property was originally bought by the
individual or a member of the individual's family
for the personal use of the individual or t he
individual's family,
(2) the individual does not hold a permit issued
under this code and is not required to obtain a
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permit as a "seller" or "retailer" as those terms
are defined by law,
(3) the individual does not em ploy an auctioneer,
broker, or factor, ot her than an online auction,
to sell the property , and
(4) the total receipts from sales of the individual 's
tangible personal property in a calendar year do
not exceed Three Thousand Dollars ($3,000.00),
f. within the meaning of subparagraph b of this
paragraph, separate division, branch, or identifiable
segment of a business exists if before its sale the
income and expenses attributable to the separate
division, branch, or segment could be separately
ascertained from the books of account or record ,
g. within the meaning of subparagraph c of this
paragraph, the stockholders, bondholders, partners, or
other persons holding an interest in a corporation or
other entity have the real or ultimate ownership of
the property of the corporation or other entity ,
h. this section does not apply to a rental or lease of a
taxable item,
i. subparagraph a of this paragraph does not apply to a
sale made by a person who holds a permit issued
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pursuant to the provisions of th e Oklahoma Sales Tax
Code,
j. a person who holds a p ermit issued under the Oklahoma
Sales Tax Code and makes a purchase from a person
entitled to claim the exemption provided by
subparagraph a of this paragraph shall accrue use tax
on the transaction and remit it to th e Oklahoma Tax
Commission;
18. "Over-the-counter drug" means a drug that contains a label
that identifies the product as a drug as required by 21 C.F.R.,
Section 201.66. The over -the-counter-drug label includes:
a. a "Drug Facts" panel, or
b. a statement of the "active ingredient(s) " with a list
of those ingredients contained in the compound,
substance or preparation;
18. 19. "Person" means any individual, company, partnership,
joint venture, joint agreement, association, mutual or otherwise,
limited liability company, corporation, estate, tr ust, business
trust, receiver or trustee appointed by any state or federal court
or otherwise, syndicate, this state, any county, city, municipality,
school district, any other political subdivision of the state, or
any group or combination acting as a uni t, in the plural or singular
number;
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19. 20. "Prescription" means an order, formula or recipe issued
in any form of oral, written, electronic, or other m eans of
transmission by a duly licensed "practitioner" as defined in Section
1357.6 of this title;
20. 21. "Prewritten computer software" means "computer
software", including prewritten upgrades, which is not designed and
developed by the author or other creator to the specifications of a
specific purchaser. The com bining of two or more prewritten
computer software programs or prewritten portions thereof does not
cause the combination to be other than prewritten computer software.
Prewritten software inc ludes software designed and developed by the
author or other creator to the specifications of a specif ic
purchaser when it is sold to a person other than the purch aser.
Where a person modifies or enhances computer software of which the
person is not the author or creator, the person shall be deemed to
be the author or creator only of such person 's modifications or
enhancements. Prewritten software or a prewritten portion thereof
that is modified or enhanced to any degree, where such modification
or enhancement is designed and developed to the specifications of a
specific purchaser, remains prewritten soft ware; provided, however,
that where there is a reasonable, se parately stated charge or an
invoice or other statement of the price given to the purchaser f or
such modification or enhancement, such modification or enhan cement
shall not constitute prewritten computer software;
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21. 22. "Repairman" means any person who performs any repair
service upon tangible personal property of the consumer, whether or
not the repairman, as a necessary and incidental part of performing
the service, incorporates tangible pers onal property belonging to or
purchased by the repairman into the tangible personal property being
repaired;
22. 23. "Sale" means the transfer of either title or possession
of tangible personal property for a valuabl e consideration
regardless of the manne r, method, instrumentality, or device by
which the transfer i s accomplished in this state, or other
transactions as provided by this paragraph, including but not
limited to:
a. the exchange, barter, lease, or rental o f tangible
personal property resulting in the transfer of the
title to or possession of the property ,
b. the disposition for consumption or use in any business
or by any person of all goods, wa res, merchandise, or
property which has been purchased for resa le,
manufacturing, or further processin g,
c. the sale, gift, exchange, or other disposition of
admission, dues, or fees to clubs, places of
amusement, or recreational or athletic events or for
the privilege of having access to or the use of
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amusement, recreational, athletic or entertainment
facilities,
d. the furnishing or rendering of services taxable u nder
the Oklahoma Sales Tax Code, and
e. any use of motor fuel or diesel fuel by a supplier, as
defined in Section 500.3 of this title, upon which
sales tax has not previously been paid, for purp oses
other than to propel motor vehicles over the public
highways of this state. Motor fuel or diesel fuel
purchased outside the state and used for purpo ses
other than to propel motor vehicles over the public
highways of this state shall not constitute a sale
within the meaning of this paragraph;
23. 24. "Sale for resale" means:
a. a sale of tangible personal property to any purchaser
who is purchasing ta ngible personal property for the
purpose of reselling it within the geographical limits
of the United States of America or its territories or
possessions, in the n ormal course of business either
in the form or condition in which it is purchased or
as an attachment to or integral part of other tangible
personal property,
b. a sale of tangible personal prope rty to a purchaser
for the sole purpose of the renting or lea sing, within
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the geographical limits of the United States of
America or its territories or po ssessions, of the
tangible personal property to another person by the
purchaser, but not if incidental to the renting or
leasing of real estate,
c. a sale of tangible goods and products within this
state if, simultaneously with the sale, the vendor
issues an export bill of lading, or other
documentation that the point of delivery of such goods
for use and consumption is in a foreign country and
not within the territ orial confines of the United
States. If the vendor is not in the business of
shipping the tangible goods and products that are
purchased from the vendor, t he buyer or purchaser of
the tangible goods and products is responsible for
providing an export bill of lading or other
documentation to the vendor from whom the tangible
goods and products wer e purchased showing that the
point of delivery of such goods fo r use and
consumption is a foreign coun try and not within the
territorial confines of the United Sta tes, or
d. a sales of any carrier access services, right of
access services, telecommunicatio ns services to be
resold, or telecommunications used in the sub sequent
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provision of, use as a componen t part of, or
integrated into, end-to-end telecommunications
service;
24. 25. "Tangible personal property " means personal property
that can be seen, weig hed, measured, felt, or touched or that is in
any other manner perceptible to the senses. "Tangible personal
property" includes electricity, water, gas, steam and prewritten
computer software. This definition shall be applicable only for
purposes of the Oklahoma Sales Tax Code;
25. 26. "Taxpayer" means any person liable to pay a tax imposed
by the Oklahoma Sales Tax Code;
26. 27. "Tax period" or "taxable period" means the calendar
period or the taxpayer 's fiscal period for which a taxpayer has
obtained a permit from the Tax Commission to use a fiscal period in
lieu of a calendar period;
27. 28. "Tax remitter" means any person required to collect,
report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
tax remitter who fails, for any reason, to collect, report, or remit
the tax shall be considered a taxp ayer for purposes of assessment,
collection, and enforcement of the tax imposed by the Oklahoma Sale s
Tax Code; and
28. 29. "Vendor" means:
a. any person making sales of tangible personal prop erty
or services in this state, the gross receipts or gross
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proceeds from which are taxed by the Oklah oma Sales
Tax Code,
b. any person maintaining a place of busi ness in this
state and making sales of tangible personal property
or services, whether at the place of business or
elsewhere, to persons within this state, the gross
receipts or gross proceeds fr om which are taxed by the
Oklahoma Sales Tax Code,
c. any person who solicits business by employees,
independent contractors, agents, or other
representatives in this state, and thereby makes sales
to persons within this state of tangible personal
property or services, the gross receipts or gross
proceeds from which are taxed by the Oklahoma Sales
Tax Code, or
d. any person, pursuant to an agreement with th e person
with an ownership interest in or title to tangible
personal property, who has been entrusted with the
possession of any such property and has the power to
designate who is to obtain title, to physically
transfer possession of, or otherwise make sa les of the
property.
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SECTION 2. AMENDATORY 68 O.S. 2021, Section 1356, as
last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
2022, Section 1356), is amended to read as f ollows:
Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby speci fically exempted from the tax levied by
Section 1350 et seq. of this title:
1. Sale of tangible personal property or services to the United
States government or to the State of Oklahoma, any political
subdivision of this state or any agency of a political subdivision
of this state; provided, all sales to c ontractors in connection with
the performance of any contract wit h the United States government,
State of Oklahoma or any of its political subdivisions shall not be
exempted from the tax levied by Section 1350 et seq. of this title,
except as hereinafter p rovided;
2. Sales of property to agents appointed by or under co ntract
with agencies or instrumentalities of the United States government
if ownership and possession of such property transfers immediatel y
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdivision of this state if the sale of such
property is associat ed with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivision or the state;
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4. Sales made direct ly by county, district or sta te fair
authorities of this state, upon the pr emises of the fair authority,
for the sole benefit o f the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county , district or state fair auth orities; provided,
the exemption provided by t his paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authorit y. As used
in this paragraph, "fair event" shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district or state fair;
5. Sale of food in cafeterias or lunchrooms of elementa ry
schools, high schools, colleges or universitie s which are operated
primarily for teachers an d pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, c haritable or
educational societies or organi zations by regular m embers thereof,
provided, such societies or organizations operate under wha t is
commonly termed the lodge plan or system, and p rovided such
societies or organizations do not operate for a prof it which inures
to the benefit of any indivi dual member or membe rs thereof to the
exclusion of other members and dues paid monthly or annua lly to
privately owned scientific and educational li braries by members
sharing the use of services rendered by such l ibraries with students
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interested in the stu dy of geology, petro leum engineering or related
subjects;
7. Sale of tangible personal propert y or services to or by
churches, except sales made i n the course of business for profit or
savings, competing with ot her persons engaged in the same or a
similar business or sale of tangible personal property o r services
by an organization exempt from fede ral income tax pursuant to
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
made on behalf of or a t the request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to e xceed three (3) days by the organization
and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable pur poses;
8. The amount of proceeds received from t he sale of admission
tickets which is separate ly stated on the ticket of admission for
the repayment of money borrowed by any accredited state-supported
college or university or any public trust of which a c ounty in this
state is the beneficiary, for the p urpose of constructing or
enlarging any facili ty to be used for the staging of an athletic
event, a theatrical production, or any other form of entertainment,
edification or cultural cultivation to which ent ry is gained with a
paid admission ticket. Such facilities include, but are not limited
to, athletic fields, athletic stadiums, field houses, amph itheaters
and theaters. To be eligible for this sales tax exempt ion, the
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amount separately stated on the adm ission ticket shall be a
surcharge which is impos ed, collected and used for the sole purpose
of servicing or aiding in the servicing of debt incurr ed by the
college or university to effect the capital improvement s
hereinbefore described;
9. Sales of tangible personal propert y or services to the
council organizations or similar state supervisory org anizations of
the Boy Scouts of America, Girl Scouts of U.S.A. and Camp Fire USA;
10. Sale of tangible personal prop erty or services to any
county, municipality , rural water distri ct, public school district,
city-county library system, the institutions of The Oklahoma State
System of Higher Education, the Grand River Dam Authority, the
Northeast Oklahoma Public Faciliti es Authority, the Oklahoma
Municipal Power Authority, City of Tu lsa-Rogers County Port
Authority, Muskogee City-County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic Development
Authority, Ardmore Development Authority , Durant Industrial
Authority, Oklahoma Ordn ance Works Authority , Central Oklahoma
Master Conservancy District, Arbuckle Master Conservancy District,
Fort Cobb Master Conservancy District, Fo ss Reservoir Master
Conservancy District, Mountain Park Master Co nservancy District,
Waurika Lake Master Cons ervancy District and the Office of
Management and Enterprise Services only when carrying out a public
construction contract on behalf of the Oklaho ma Department of
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Veterans Affairs, and effective July 1, 2022, th e University
Hospitals Trust, or to any pers on with whom any of the above-named
subdivisions or agencies of this state has duly entered int o a
public contract pursuant to law, necessary for c arrying out such
public contract or to any subcontractor to such a public contract.
Any person making purcha ses on behalf of suc h subdivision or agency
of this state shall certify, in writing, on the cop y of the invoice
or sales ticket to be retained by t he vendor that the purchases are
made for and on behalf of such s ubdivision or agency of this state
and set out the name of such public subdivision or agency. Any
person who wrongfully or erroneously cer tifies that purchases are
for any of the above -named subdivisions or agencies of this state or
who otherwise violates this section shall be guilty of a misdemean or
and upon conviction thereof shall be fined an amount equal to double
the amount of sales tax involved or incarcerated for not more than
sixty (60) days or both;
11. Sales of tangible personal property or serv ices to private
institutions of higher educa tion and private ele mentary and
secondary institutions of education accredited by the State
Department of Education or registered by the State Boar d of
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma Sta te Regents for Highe r
Education which are exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3 ) including
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materials, supplies and equipment used in the constru ction and
improvement of buildings and other structures owned by the
institutions and operate d for educational purposes.
Any person, firm, agency or entity making purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the copy of the invoice or sale s ticket the nature of
the purchases, and violati on of this paragraph shall be a
misdemeanor as set forth in paragraph 10 of this section;
12. Tuition and educational fees paid to private institutions
of higher education and private elementary and seconda ry
institutions of education accredited by the St ate Department of
Education or registered by t he State Board of Education for purposes
of participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which a re exempt from
taxation pursuant to the provision s of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal pr operty made by:
(1) a public school,
(2) a private school offerin g instruction for grade
levels kindergarten through twelfth grad e,
(3) a public school distri ct,
(4) a public or private school board,
(5) a public or private school student group or
organization,
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(6) a parent-teacher association or organization
other than as specified in subparagraph b of this
paragraph, or
(7) public or private school personnel for purposes
of raising funds for the benefit of a public or
private school, public school distric t, public or
private school board or public or private school
student group or organization, or
b. Sales of tangible personal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of t he
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
which solicit money or property in the name of an y
public or private school or public school di strict.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to tho se public or private
schools accredited by t he State Department of Education or
registered by the State Board of Education for purposes of
participating in federal programs. Sale of tangible personal
property in this paragraph shall include sale of admiss ion tickets
and concessions at athletic even ts;
14. Sales of tangible personal property by:
a. local 4-H clubs,
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b. county, regional or sta te 4-H councils,
c. county, regional or state 4 -H committees,
d. 4-H leader associations,
e. county, regional or stat e 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided b y this paragraph shall be limited to
sales for the purpose of raising funds for the benefit of suc h
organizations. Sale of tangible personal property exempted by this
paragraph shall include sale of admissi on tickets;
15. The first Seventy -five Thousand Dollars ($75,000.00) each
year from sale of ti ckets and concessions at athletic events by each
organization exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 50 1(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklah oma Tourism and Recreation Department has
entered into a public contract and which is necessary for carrying
out such contract to assist the Department in the de velopment and
production of advertising, promotio n, publicity and public relations
programs;
17. Sales of tangible personal property or services t o fire
departments organized pursuant to Section 592 of Title 18 of the
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person making purchases on behalf of any such
fire department shall certify, in writing, on t he copy of the
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invoice or sales ticket to be retained by the vend or that the
purchases are made for and on be half of such fire department and set
out the name of such fire department. Any person who wron gfully or
erroneously certifies that the purchases a re for any such fire
department or who otherwise violates the pro visions of this section
shall be deemed guil ty of a misdemeanor and upon conviction thereof,
shall be fined an amount equal to double the a mount of sales tax
involved or incarcerated for not more than sixty (60) days, or both;
18. Complimentary or free ti ckets for admission to places of
amusement, sports, entertainment, exhibition, display or oth er
recreational events or activities which are issued through a box
office or other entity which i s operated by a state institution of
higher education with instit utional employees or by a municipality
with municipal employees;
19. The first Fifteen Thous and Dollars ($15,000.00) each year
from sales of tangible personal property by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the b enefit of the fire
department. Fire departments selling tangible personal property for
the purposes of raising funds shall be limited to no more t han six
(6) days each year to raise such funds in order to receiv e the
exemption granted by this paragraph;
20. Sales of tangible personal property or servic es to any Boys
& Girls Clubs of America affili ate in this state which is not
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affiliated with the S alvation Army and which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U .S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or services to any
organization, which takes court-adjudicated juveniles for pur poses
of rehabilitation, and which is exempt from taxation pursua nt to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), provided tha t at least fifty percent (50%) of the
juveniles served by such organization are court adjudicated and the
organization receives state funds in an amount less than ten percent
(10%) of the annual budget of th e organization;
22. Sales of tangible personal p roperty or services to:
a. any health center as defined in Section 254b of Title
42 of the United States Code,
b. any clinic receiving disbursements of state monie s
from the Indigent Health Care Revolving Fu nd pursuant
to the provisions of Section 66 of Ti tle 56 of the
Oklahoma Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to t he
recipient, and
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(2) is exempt from taxatio n pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Sect ion 501(c)(3), and
d. any community mental health ce nter as defined in
Section 3-302 of Title 43A of the Oklahoma Sta tutes;
23. Dues or fees including free or c omplimentary dues or fees
which have a value equi valent to the charge that could have
otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
centers for the use of facilities and programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal propert y or services to or by a
cultural organization established to sponsor and promote
educational, charitable and cultural events for disadvantaged
children, and which organization is exempt from taxation pursua nt to
the provisions of the Internal Revenue Code , 26 U.S.C., Section
501(c)(3);
25. Sales of tangible personal property or services to museums
or other entities which have been accredited by the American
Association of Museums. Any person making purchas es on behalf of
any such museum or other entity s hall certify, in writing, on the
copy of the invoice or sales ticket to be retained by the vendor
that the purchases are made for and on behalf of such museum or
other entity and set out the name of such mus eum or other entity.
Any person who wrongfully o r erroneously certifies that the
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purchases are for any such museum or other entity or who otherwis e
violates the provisions of this paragraph shall be deemed guilt y of
a misdemeanor and, upon conviction ther eof, shall be fined an amount
equal to double the amount of sales tax involved or incarcerated for
not more than sixty (60) days, or by both such f ine and
incarceration;
26. Sales of tickets for admission by any museum accredited by
the American Associati on of Museums. In order to be eligible for
the exemption provided by this paragraph, an amount equivalent to
the amount of the tax which would oth erwise be required to be
collected pursuant to the provisions of Section 1350 et seq. of this
title shall be separately stated on the admission ticket and sha ll
be collected and used for the sole purpose of servicing or aiding in
the servicing of debt incu rred by the museum to effect the
construction, enlarging or renov ation of any facility to be used for
entertainment, edification or cultural cultivation to wh ich entry is
gained with a paid admission tick et;
27. Sales of tangible personal property or serv ices occurring
on or after June 1, 1995, to children's homes which are supported or
sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal prope rty or services to the
organization known as the Dis abled American Veterans, Department of
Oklahoma, Inc., and subord inate chapters thereof;
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29. Sales of tangib le personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organization;
30. a. Until July 1, 2022, transfer of tangible pe rsonal
property made pursuant to Section 322 6 of Title 63 of
the Oklahoma Statutes by the Uni versity Hospitals
Trust, and
b. Effective July 1, 2022, transfer of tangible personal
property or services to or by:
(1) the University Hospitals Trust created pur suant
to Section 3224 of Title 63 of the Okl ahoma
Statutes, or
(2) nonprofit entities which a re exempt from taxation
pursuant to the provis ions of the Internal
Revenue Code of the United Stat es, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the University
Hospitals Trust;
31. Sales of tangible personal pro perty or services to a
municipality, county or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county or school district. A copy of the lease or
lease-purchase agreement shall be retained by the vendor;
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32. Sales of tangible personal pr operty or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storage, consumption or distribution in this
state, whether by the importer, exporter or another person, of any
satellite or any associ ated launch vehicle including components of,
and parts and motors for, any such satellite or launch vehicle,
imported or caused to be imported into this state fo r the purpose of
export by means of launching int o space. This exemption provided by
this paragraph shall not be affected by:
a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicl e after launch;
34. The sale, lease, use, storage, consumption or distribution
in this state of any space facility, space propulsion system or
space vehicle, satellite or station of any kind possessing space
flight capacity including components thereof;
35. The sale, lease, use, storage, consumption or di stribution
in this state of tangible personal property, placed on or used
aboard any space facility, space pr opulsion system or space vehicle,
satellite, or station possessing space flight capacity, which is
launched into space, irrespective of whether suc h tangible property
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is returned to this state for subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption or di stribution
in this state of tangible personal property meeting the definition
of "section 38 property" as defined in Sections 48(a)(1)(A) and
(B)(i) of the Interna l Revenue Code of 1986, that is an integral
part of and used primarily in support of space fl ight; however,
section 38 property used in sup port of space flight shall not
include general offic e equipment, any boat, mobile home, motor
vehicle or other vehicl e of a class or type required to be
registered, licensed, titled or documented in this state or by the
United States government, or any oth er property not specifically
suited to supporting sp ace activity. The term "in support of space
flight", for purposes of this paragraph, means the altering,
monitoring, controlling, regulating, adjusting, serv icing or
repairing of any space facility, spac e propulsion systems or space
vehicle, satellite or station possessing space flight capacity
including the components thereof;
37. The purchase or lease of mach inery and equipment for use at
a fixed location in this state, which is used exclusively in the
manufacturing, processing, compounding or producing of any space
facility, space propulsion system or space vehicle, satellite or
station of any kind possessing space flight capacity. Provided, the
exemption provided for in this paragraph shall not be al lowed unless
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the purchaser or lessee signs an affida vit stating that the item or
items to be exempted are for the exc lusive use designated herein.
Any person furnishing a false affidavit to the vendor for the
purpose of evading payment of any tax imposed by Section 1354 of
this title shall be subject to th e penalties provided by law. As
used in this paragraph, "machinery and equipment" means "section 38
property" as defined in Sections 48(a)(1)(A) and (B)(i) o f the
Internal Revenue Code of 1986, which is used as an integral part of
the manufacturing, proce ssing, compounding or producing of items of
tangible personal pro perty. Such term includes parts and
accessories only to the extent that the exemption thereo f is
consistent with the provisions of this pa ragraph;
38. The amount of a surcharge or any other amount which is
separately stated on an admission ticket which i s imposed, collected
and used for the sole p urpose of constructing, remodeling or
enlarging facilities of a public trust having a municipal ity or
county as its sole beneficiary;
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a state park in this state,
which are made to an organization which i s exempt from taxation
pursuant to the provisi ons of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primarily for the purpose
of supporting one or more state parks located in this state;
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40. The sale, lease or use of parkin g privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State System of Higher E ducation,
private institutions of higher educa tion accredited by the Oklahoma
State Regents for Hi gher Education or any public school or school
district when such projects are financed by or through the use of
nonprofit entities which are exempt from taxat ion pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
42. Sales of tangible personal property or services by an
organization which is exempt from taxation pursuant to th e
provisions of the Internal Revenue Code, 26 U.S .C., Section
501(c)(3), in the course of condu cting a national championship
sports event, but only if all or a portion of the payment in
exchange therefor would qu alify as the receipt of a qualified
sponsorship payment described in Internal Revenue Code, 2 6 U.S.C.,
Section 513(i). Sales exempted purs uant to this paragraph shall be
exempt from all Okla homa sales, use, excise and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
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a. is exempt from taxat ion pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. is affiliated with a comprehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teacher training and
conducting events relating to robotics;
44. The first Fifte en Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic organization e xempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(4), for the purposes of raising funds for the
benefit of the team;
45. Sales of tickets for admission t o a collegiate athletic
event that is held in a f acility owned or operated by a municipality
or a public trust of which the municipality is the sol e beneficiary
and that actually determines or is part of a tourna ment or
tournament process for determining a conference tournament
championship, a conference championship, or a national championship;
46. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
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501(c)(3) and is operating th e Oklahoma City National Memorial and
Museum, an affiliate of the National Park System;
47. Sales of tangible personal property or services to
organizations which are exempt from federal taxation pursuant t o the
provisions of Section 501(c)(3) of the Inte rnal Revenue Code, 26
U.S.C., Section 501(c )(3), the memberships of which are limited to
honorably discharged veterans, and which furnish financial support
to area veterans' organizations to be used for the purpose of
constructing a memorial or museum;
48. Sales of tangible personal property or se rvices on or after
January 1, 2003, to an organization which is exempt from taxation
pursuant to the provisions of the I nternal Revenue Code, 26 U.S.C.,
Section 501(c)(3) that is expending monies received from a p rivate
foundation grant in conjunction with expenditures of local sales tax
revenue to construct a local public library;
49. Sales of tangible personal property o r services to a state
that borders this stat e or any political subdivision of that state,
but only to the extent that the other state or political subdivision
exempts or does not impose a tax on similar sales of items to this
state or a political subdivisi on of this state;
50. Effective July 1, 200 5, sales of tangible personal property
or services to the Career Technology Student Organiza tions under the
direction and supervision of the Oklaho ma Department of Career and
Technology Education;
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51. Sales of tangible personal property to a public trust
having either a single city, town or county or mu ltiple cities,
towns or counties or combina tion thereof as beneficiary or
beneficiaries or a nonpr ofit organization which is exempt from
taxation pursuant to the p rovisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) for the purpose of const ructing
improvements to or expanding a hosp ital or nursing home owned and
operated by any such pub lic trust or nonprofit entity prior to July
1, 2008, in counties with a population of less than one hundred
thousand (100,000) persons, according to the most recent Federal
Decennial Census. As used i n this paragraph, "constructing
improvements to or expa nding" shall not mean any expense for routine
maintenance or general repairs and shall require a project cost of
at least One Hundred Thousand Dollars ($100,0 00.00). For purposes
of this paragraph, sa les made to a contractor or subcontractor that
enters into a contractual relationship with a public trust or
nonprofit entity as described by this paragraph shall b e considered
sales made to the public trust or no nprofit entity. The exemption
authorized by this paragraph shall be administered in the form of a
refund from the sales tax revenues apportioned pursuant to Secti on
1353 of this title and the vendor shall b e required to collect the
sales tax otherwise app licable to the transaction. The purchaser
may apply for a refund of the sales tax paid in the man ner
prescribed by this paragraph. Within thirty (30) days after the end
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of each fiscal year, any purchaser t hat is entitled to make
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such preceding fiscal year. The Tax Commission
shall prescribe a form for purpo ses of making the application for
refund. The Tax Commission shall determine whether or not the total
amount of sales tax exemptions claimed by al l purchasers is equal to
or less than Six Hundred Fifty Thousand Dollars ($650,000.00). If
such claims are less than or equal to that amount, the Tax
Commission shall make refunds to the purchasers in the full amount
of the documented and verified sales t ax amounts. If such claims by
all purchasers are in excess of Si x Hundred Fifty Thousand Dollars
($650,000.00), the Tax Commission shall determine the amount of each
purchaser's claim, the total amoun t of all claims by all purchasers,
and the percentage e ach purchaser's claim amount bears to the total.
The resulting percentage determined for each purchaser shal l be
multiplied by Six Hundred Fifty Thousand Dol lars ($650,000.00) to
determine the amount of refundable sales tax to be paid to each
purchaser. The pro rata refund amount shall be the only method to
recover sales taxes paid during the preceding fiscal y ear and no
balance of any sales taxes paid on a p ro rata basis shall be the
subject of any subsequent refund claim pursuant to this paragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, t rains, educates, and
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provides housing for physica lly and mentally handicapped persons and
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and th at
receives at least eighty -five percent (85%) of its annual budget
from state or federal fun ds. In order to receive the benefit of the
exemption authorized by this paragraph, the taxpayer s hall be
required to make payment of the applicable sales tax at t he time of
sale to the vendor in the manner otherwise required by law.
Notwithstanding any o ther provision of the Oklahoma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be a uthorized to
file a claim for refund of sales taxes paid that qua lify for the
exemption authorized by this pa ragraph for a period of one (1) year
after the date of the sale transaction. The taxpayer s hall be
required to provide documentation as may be pre scribed by the
Oklahoma Tax Commission in support of the refund c laim. The total
amount of sales tax qualify ing for exempt treatment pursuant to this
paragraph shall not exceed One Hundred Seventy -five Thousand Dollars
($175,000.00) each fiscal year. Cla ims for refund shall be
processed in the order in which such clai ms are received by the
Oklahoma Tax Commissi on. If a claim otherwise timely filed exceeds
the total amount of refunds payable for a fis cal year, such claim
shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each year of
sales of tangible per sonal property or services to, by, or for th e
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benefit of a qualified neighborhood watch organ ization that is
endorsed or supported by or working directly with a law enforcement
agency with jurisdiction in the area in which the neighborhood watch
organization is located. As used in this paragraph, "qualified
neighborhood watch organization " means an organization that is a
not-for-profit corporation under the laws of the State of Oklahoma
that was created to help prevent criminal activity in an area
through community involvement and interaction with l ocal law
enforcement and which is one of the firs t two thousand organizations
which makes application to the Oklahoma Tax Commission for the
exemption after March 29, 2006;
54. Sales of tangible personal propert y to a nonprofit
organization, exempt from t axation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3 ), organized
primarily for the purpose of providing ser vices to homeless persons
during the day and located in a metropo litan area with a population
in excess of five hundred thousand (500,000) persons according t o
the latest Federal Decennial Census. The exemption authorized by
this paragraph shall be applic able to sales of tangible personal
property to a qualified entity occurring on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt fr om taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
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501(c)(3) for events the princip al purpose of which is to provide
funding for the preservation of wetlands and habitat for wi ld ducks;
56. Sales of tangible personal p roperty or services to or by an
organization which is e xempt from taxation pursuant to the
provisions of the Internal Re venue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to prov ide
funding for the preservation and conser vation of wild turkeys;
57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of communit y-based, autonomous
member organizations that meets the following
criteria:
(1) serves people with workplace disadvantag es and
disabilities by providing job trainin g and
employment services, as well as job placeme nt
opportunities and post -employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing and househo ld goods to
sell in retail stores and provid es contract labor
services to business and govern ment, and
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(4) provides documentation to the Oklahoma Tax
Commission that over seventy -five percent (75%)
of its revenues are channeled into employment,
job training and placement programs and other
critical community services;
58. Sales of tickets made on or after September 21, 2005, and
complimentary or free tickets for admission issued on or after
September 21, 2005, which have a value equivalent to the charge th at
would have otherwise been made, for admis sion to a professional
athletic event in which a team in the National Basketball
Association is a participant, which is held in a facility owned or
operated by a municipality, a county or a public trust of which a
municipality or a county is the sole benef iciary, and sales of
tickets made on or after Jul y 1, 2007, and complimentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge that would have otherwise b een made,
for admission to a professional at hletic event in which a team in
the National Hockey League is a participant, which is held i n a
facility owned or operated by a municipality, a cou nty or a public
trust of which a municipality or a county is the sole beneficiary;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to t he charge
that would have otherwise been made to a prof essional sporting event
involving ice hockey, baseball, basketbal l, football or arena
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football, or soccer. A s used in this paragraph, "professional
sporting event" means an organized athletic competit ion between
teams that are members of an organized leag ue or association with
centralized management, other than a natio nal league or national
association, that imp oses requirements for participation in the
league upon the teams, the individual athletes or both, and which
uses a salary structure to compensate the athletes;
60. Sales of tickets for admission to an annual ev ent sponsored
by an educational and charitab le organization of women which is
exempt from taxation pursuant to the provisions of the Int ernal
Revenue Code, 26 U.S.C., Section 501(c)(3) and ha s as its mission
promoting volunteerism, developing the potential of women and
improving the community throug h the effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exem pt from taxation pursuant to the
provisions of the Internal Reven ue Code, 26 U.S.C., Section
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the pro visions of the Internal
Revenue Code, 26 U.S.C., Sectio n 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraising, public awareness o r other
efforts for the benefit of its memb er organizations, and if the
member organization is pri marily engaged either in providing
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educational services and progr ams concerning health -related diseases
and conditions to individuals suffering from such heal th-related
diseases and conditions or their caregivers and family members or
support to such indiv iduals, or in health-related research as to
such diseases and con ditions, or both. In order to qualify for t he
exemption authorized by this paragraph, the me mber nonprofit
organization shall be requir ed to provide proof to the Oklahoma Tax
Commission of its membership status in the membership organization;
62. Sales of tangible personal property or services to or by an
organization which is part of a national volunteer women's service
organization dedicated to promoting patriotism, preserving American
history and securing better education for children and which has at
least 168,000 members in 3,000 chapters acro ss the United States;
63. Sales of tangible pers onal property or services to or by a
YWCA or YMCA organization which is part of a national nonprof it
community service organization working to meet the health and social
service needs of its members across t he United States;
64. Sales of tangible personal property or services to or by a
veteran's organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(19) and which is known as the Veterans of Foreign Wars of the
United States, Oklahoma C hapters;
65. Sales of boxes of food by a c hurch or by an organization,
which is exempt from taxat ion pursuant to the provisions of the
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Internal Revenue Code, 26 U .S.C., Section 501(c)(3). To qualify
under the provisions of this paragraph, the organizatio n must be
organized for the primary purpose of feeding needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes shall only contain edible staple f ood
items;
66. Sales of tangible personal proper ty or services to any
person with whom a ch urch has duly entered into a construction
contract, necessary for carrying out such contract or to any
subcontractor to such a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or educational purpos es, to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of developmentally
disabled individuals, and
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(3) promoting unity among developmentally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or services to any
organization which is a shelter for abused , neglected, or abandoned
children and which is exempt from tax ation pursuant to the
provisions of the Intern al Revenue Code, 26 U.S.C., Section
501(c)(3); provided, until July 1, 2008, such exemption shall apply
only to eligible shelters for children from birth to age twelve (12)
and after July 1, 2008, such exemptio n shall apply to eligible
shelters for childre n from birth to age eighteen (18);
69. Sales of tangible personal property or services to a child
care center which is licensed pursuant to the Ok lahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Hum an
Services Reaching for the Stars Program or a nati onal
accreditation, and
b. allows on-site universal prekindergart en education to
be provided to four-year-old children through a
contractual agreement with an y public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has entered previously into a
contractual relationship with a child care center for construction
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and improvement of buildings and other structures owned by the child
care center and operated for educational purposes shall be
considered sales made to a child care center. Any such person,
firm, agency or entity making purc hases on behalf of a child care
center shall certify, in writin g, on the copy of the invoice or
sales ticket the nature of the purchase. Any such person, or per son
acting on behalf of a firm, agency or entity making purchases on
behalf of a child care cen ter in violation of this paragraph shall
be guilty of a misdeme anor and upon conviction thereof shall be
fined an amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or bot h;
70. a. Sales of tangible pe rsonal property to a service
organization of mothers who have c hildren who are
serving or who have served in the military, which
service organization is exempt f rom taxation pursuant
to the provisions of the Internal Revenue C ode, 26
U.S.C., Section 501(c) (19) and which is known as the
Blue Star Mothers of America, In c. The exemption
provided by this paragraph s hall only apply to the
purchase of tangible personal property actually sent
to United States military personnel overs eas who are
serving in a combat zone and not to any other tangible
personal property purchase d by the organization.
Provided, this exempti on shall not apply to any sales
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tax levied by a city , town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this pa ragraph shall be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Sec tion 1353 of
this title, and the vendor shall be req uired to
collect the sales tax otherwise applicable to the
transaction. The purchaser may appl y for a refund of
the state sales tax paid in the manner prescr ibed by
this paragraph. Within sixty (60) day s after the end
of each calendar quarter, any purcha ser that is
entitled to make application for a refund based upon
the exempt treatment authorize d by this paragraph may
file an application for refund of the s tate sales
taxes paid during such preceding ca lendar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refu nd pursuant to this
paragraph shall certify that the items were actually
sent to military personnel overseas in a combat zone.
Any purchaser that applies for a refund for the
purchase of items that are not authorized for
exemption under this paragraph sha ll be subject to a
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penalty in the amount of Five Hundred Dollar s
($500.00);
71. Sales of food and snack item s to or by an organization
which is exempt from taxa tion pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), who se primary
and principal purpose is providing funding for schol arships in the
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizations which are exempt
from taxation pursuant to the provi sions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3 ) and whose purpose is providing
end-of-life care and access to hospice services to low -income
individuals who live in a facility owned by the organization. The
exemption provided by this para graph applies to sales to the
organization as well as to sales to any person with whom the
organization has duly entered into a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any pe rson making purchases on behalf
of such organization shall cert ify, in writing, on the copy of the
invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf of such organization and set
out the name of such organiza tion. Any person who wrongfully or
erroneously certifies that purchases are for any of the above -named
organizations or who otherwise violates this section shal l be guilty
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of a misdemeanor and upon conviction thereof shall be fined an
amount equal to doub le the amount of sales tax involved or
incarcerated for not mor e than sixty (60) days or both;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Sect ion 501(c)(3) that are
organized for the purpose of supporting general hospitals licensed
by the State Department of Health;
74. Sales of tangible personal prop erty or services:
a. to a foundation which is exempt from taxatio n pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and w hich raises tax-
deductible contributions in su pport of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
organizations that defe nd and foster Second Amendment
rights, and
b. to or by a grassroots fundraising program for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity whic h is exempt from
taxation pursuant to the provisions of the Int ernal Revenue Code, 26
U.S.C., Section 501(c)( 3) which are related to a fundraising event
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sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days an d when the sales are not in
the organization's or the entity's regular course of business.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admittance to the fundraising event and items
which were donated to the orga nization or entity for sale at the
event;
76. Effective Novemb er 1, 2017, sales of tangible personal
property or services to an organization which is exempt fro m
taxation pursuant to the provisions of the Internal Revenue Cod e, 26
U.S.C., Section 501(c)(3 ) and operates as a collaborative model
which connects communit y agencies in one location to serve
individuals and families affected by violence and where victim s have
access to services and advocacy at no cost to the victim;
77. Effective July 1, 2018, s ales of tangible personal property
or services to or by an asso ciation which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the National Gua rd
Association of Oklahoma;
78. Effective July 1, 2018, sales of tangible personal property
or services to or by an association which is e xempt from taxation
pursuant to the provisions of th e Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which i s known as the Marine Corps Le ague of
Oklahoma;
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79. Sales of tangible personal property or s ervices to the
American Legion, whether the pu rchase is made by the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authority of
the national American Legion organization;
80. Sales of tangible personal property or servi ces to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Cod e, 26 U.S.C., Section 501(c)(3 ),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter, and
c. able to provide documentation that its primary and
principal purpose is to provid e community access to
advanced 21st century manufacturing and digital
fabrication tools for s cience, technology,
engineering, art and math (STEAM) learning skills,
developing inventions, crea ting and sustaining
businesses and producing personalized product s;
81. Effective November 1, 2021, sales of tangible personal
property or services used sole ly for construction and remodeling
projects to an organization which is exempt from taxation pursu ant
to the provisions of the Internal Revenue Code, 26 U.S.C., Se ction
501(c)(3), and which mee ts the following requirements:
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a. its primary purpose is to con struct or remodel and
sell affordable housing and provide homeownership
education to residents of Oklahoma that have an income
that is below one hundred percent (1 00%) of the Family
Median Income guidelines as defined by the U.S.
Department of Housing and Urban Development,
b. it conducts its activiti es in a manner that serves
public or charitable purp oses, rather than commercial
purposes,
c. it receives funding and revenue and charges fees in a
manner that does not incentivize it or its employees
to act other than in the best interests of its
clients, and
d. it compensates its employees in a manner tha t does not
incentivize employees to act other than in the best
interests of its clients;
82. Effective Novem ber 1, 2021, sales of tangible personal
property or services to a nonprofit entity, organized p ursuant to
Oklahoma law before January 1, 2022, exem pt from federal income
taxation pursuant to Section 501(c) of the Internal Revenue Code of
1986, as amended, the principal functions of which are to provide
assistance to natural persons following a disas ter, with program
emphasis on repair or restoration to single-family residential
dwellings or the construction of a r eplacement single-family
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residential dwelling. As used in this paragraph, "disaster" means
damage to property with or without accompanying injury to persons
from heavy rain, high winds, torn adic winds, drought, wildfire,
snow, ice, geologic disturbances, explosions, chemical accidents or
spills and other events causing damage to property on a lar ge scale.
For purposes of this paragraph, an entity that expended at least
seventy-five percent (75%) of its funds on the restoration to
single-family housing following a disaster including related general
and administrative expenses, shall be eligible fo r the exemption
authorized by this paragraph;
83. Effective November 1, 2021, through December 31 , 2024,
sales of tangible personal property or services to a muse um that:
a. operates as a part of an organiz ation which is exempt
from taxation pursuant to t he provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. is not accredited by the American Alliance of Museums,
and
c. operates on an annual bu dget of less than One Million
Dollars ($1,000,000.00);
84. Until July 1, 2022, sales of tang ible personal property or
services for use in a clinical practice or medical facility operated
by an organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code of the United States, 26
U.S.C., Section 501(c)(3), and which has entered into a joint
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operating agreement with the University Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The
exemption provided by this paragraph shall b e limited to the
purchase of tangible personal pr operty and services for use in
clinical practices or medical facilities acquired or leased by the
organization from the University Hospitals Authority, University
Hospitals Trust, or the University of Oklaho ma on or after June 1,
2021; and
85. Sales of tangible personal property or services to a
nonprofit entity, organized pursuant to Oklahoma law bef ore January
1, 2019, exempt from federal income taxation pursuant to Section
501(c) of the Internal Revenue C ode of 1986, as amended, the
principal functions of which are to provide assistance to natural
persons following a disaster, with program emphasis on repair or
restoration to single-family residential dwellings o r the
construction of a replacement single -family residential dwelling.
For purposes of this paragraph, an entity operated exclusively for
charitable and educational purposes through the coo rdination of
volunteers for the disaster recovery of homes (as de rived from Part
III, Statement of Program Se rvices, of Internal Revenue Service Form
990) and offers its services free of charge to disaste r survivors
statewide who are low income with no or limited means of recovery on
their own for the restoration to sin gle-family housing following a
disaster including related general and administrative expenses ,
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shall be eligible for the exemption authoriz ed by this paragraph.
The exemption provided by thi s paragraph shall only be applicable to
sales made on or after th e effective date of this act. As used in
this paragraph, "disaster" means damage to property with or without
accompanying injury to person s from heavy rain, high winds, tornadic
winds, drought, wildfire, snow, ice, geologic disturbances,
explosions, chemical accidents or spills and other events cau sing
damage to property on a large scale ; and
86. Occasional sales.
SECTION 3. This act shall become effective July 1, 2023.
SECTION 4. 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 e ffect and
be in full force from and afte r its passage and approval.
59-1-5612 MAH 01/18/23