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ENGROSSED HOUSE
BILL NO. 2316 By: Hilbert of the House
and
Paxton of the Senate
[ revenue and taxation – sales tax – occasional sales
– effective date -
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. As used in the Oklahoma 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 selection by the
purchaser of the products included in the transaction. As used in
this paragraph:
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a. "distinct and identifiable products" does not include:
(1) packaging such as containers, boxes, sacks, bags,
and bottles, or other materials such as wrapping,
labels, tags, and instruction guides, that
accompany the retail sale of the products and are
incidental or immaterial to the retail sale
thereof, including but not limit ed 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 an other 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, purs uant 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
including, but not limited to an invoice, bill of
sale, receipt, contract, service agreement, lease
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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 considere d 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 service, and is
provided exclusively in connection with the
service, and the true object o f 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 first service is
provided exclusively in connection with the
second service and the true obj ect of the
transaction is the second service,
(3) a transaction that includes taxable products an d
nontaxable products and the purchase price or
sales price of the taxable 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
(10%) or less of the tota l purchase price or
sales price of the bundled products. Sellers
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shall use either the purchase price or the sales
price of the products to determine if the ta xable
products are de minimis. Sellers 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 and food
ingredients, drugs, durable medical
equipment, mobility enhancing equipment,
over-the-counter drugs, prosthetic devices
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
sales price of the tang ible personal
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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 f orm 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 furnished
to be used or consumed in the performance of any contr act;
7. "Contractor" means any person who performs any improvement
upon real property and who, as a necessary and incidental part of
performing such improveme nt, incorporates tangible personal property
belonging to or purchased by the person into the real property being
improved;
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8. "Drug" means a compound, substance or preparation, 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 mainta ined, and which is not exempted
by law from attachment, execution, or other species of forced sal e
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 management 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 and 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, labor or service
cost,
(3) interest, losses, all costs of transp ortation 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 cha rges, 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 incl ude:
(1) discounts, including cash, term, or coupons that
are not reimbursed by a third party tha t 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 proper ty
or services, if the amount is separately stated
on the invoice, bill of sale or similar docume nt
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 docume nt 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 attributable to
the sale is fixed and determinable by the seller
at the time of the sale o f 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 invoice received by the
purchaser or on a coupon, certificate o r
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 th e
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 business
maintained by the person in this state, or
(e) conducts any other activities in t his state
that are significantly associated 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 divisions (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, s tating, 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 vendor 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 n atural 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 s uch 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 begins at the point where the materials
enter the manufacturing site and ends at the point w here a finished
product leaves the manufacturing site. "Manufacturing operation "
does not include administration, sales, distribution,
transportation, site construction, or site maintenance. Extractive
activities and field processes shall not be deemed t o 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 manufacturing
operation is conducted, including a location consisting of one or
more buildings or structures in an area owned, leased, or controlled
by a manufacturer;
17. "Occasional sale" means:
a. an isolated sale or series of s ales by a person who
does not habitually engage, or hold himself out as
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engaging, in the business of selling the same or
similar 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. the sale of tangible personal property by an
individual if:
(1) the property was originally boug ht by the
individual or a member of the individual's family
for the personal use of the individua l or the
individual's family,
(2) the individual does not hold a permit issued
under this code and is not required to obtain a
permit as a "seller" or "retailer" as those terms
are defined by law,
(3) the individual does not employ an auctioneer,
broker, or factor, other than an online auction,
to sell the property, and
(4) the total receipts from sales of the individual 's
tangible personal property in a calenda r year do
not exceed Three Thousand Dollars ($3,000.00),
d. within the meaning of subparagraph b of this
paragraph, separate division, branch, or identifiable
segment of a business exists if before its sale the
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income and expenses attributable to the separ ate
division, branch, or segment could be separately
ascertained from the books of account or rec ord,
e. this section does not apply to:
(1) a rental or lease of a taxable item,
(2) sales of taxable items held on consignment,
(3) sales made, supervised or aided by an auctioneer,
or agent or employee of an auctioneer,
(4) the sale of motor vehicles, an d
f. "Series of sales" means any multiple sales of t angible
personal property, for a limited duration not to
exceed thirty (30) consecutive days. Each individ ual
sale of the multiple sales shall meet the defi nition
of occasional sale as provided i n this subsection.
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, partnersh ip,
joint venture, joint agreement, association, mutual or otherwise,
limited liability company, corporation, estate, trust, business
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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 unit, in the plural or singular
number;
19. 20. "Prescription" means an order, formula or recipe issued
in any form of oral, written, elec tronic, or other means 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 combinin g 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 includes software designed and developed by the
author or other creator to the specifications of a specific
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 cre ator 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 modi fication
or enhancement is designed and developed to the specifications of a
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specific purchaser, remains prewritten software; 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 for
such modification or enhancement, such modification or enhancemen t
shall not constitute prewritten computer software;
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 personal 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 valuable con sideration
regardless of the manner, method, instrumentality, or device by
which the transfer i s accomplished in this state, or other
transactions as provided by this par agraph, including but not
limited to:
a. the exchange, barter, lease, or rental of tan gible
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, wares, merchandise, or
property which has been purchased for resale,
manufacturing, or further processing,
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c. the sale, gift, exchange, or other disposition of
admission, dues, or fees to clubs, places of
amusement, or recreational or athle tic events or for
the privilege of having access to or the use of
amusement, recreatio nal, 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 fu el by a supplier, as
defined in Section 500.3 of this title, upon which
sales tax has not previously been paid, for purposes
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 purposes
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 tangible 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 pur chased or
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as an attachment to or integral part of other tangible
personal property,
b. a sale of tangible personal property to a purchaser
for the sole purpose of the renting or lea sing, within
the geographical limits of the United States of
America or its territories or possessions, of the
tangible personal property to another person by th e
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 d elivery 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, the bu yer 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 were purchased showing that the
point of delivery of such goods for use and
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consumption is a foreign country and not within the
territorial confines of the United Sta tes, or
d. a sales of any carrier access services, right of
access services, telecommunications services to be
resold, or telecommunications used in the subseque nt
provision of, use as a component part of, or
integrated into, end-to-end telecommunications
service;
24. 25. "Tangible personal property " means personal property
that can be seen, weighed, measured, felt, or touched or that is in
any other manner perce ptible to the senses. "Tangible personal
property" includes electricity, water, gas, steam and prewritten
computer software. This definition shall be applicable only fo r
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 taxp ayer 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 taxpayer for purposes of assessment,
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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 tang ible personal property
or services in this state, the gross receipts or gross
proceeds from which are taxed by the Oklahoma 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 g ross
receipts or gross proceeds from 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 s tate 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 the 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
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designate who is to obtain title, to physically
transfer possession of, or otherwise make sales of the
property.
SECTION 2. AMENDATORY 68 O.S. 20 21, 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 specifically 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 age ncy of a political subdivision
of this state; provided, all sales to contractors 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 provided;
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 tr ansfers immediately
to the United States govern ment;
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
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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;
4. Sales made direct ly by county, district or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of 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 authorities; provided,
the exemption provided by this paragraph for admission t ickets 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 conju nction 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 universities which are operated
primarily for teachers and 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 what is
commonly termed the lodg e plan or system, and provided 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
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exclusion of other members and dues pai d monthly or annually to
privately owned scient ific and educational libraries by members
sharing the use of services rendered by such l ibraries with students
interested in the stu dy of geology, petro leum engineering or related
subjects;
7. Sale of tangible personal property or services to or by
churches, except sales made in 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 or services
by an organization exempt from federal 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 exceed three (3) days by the o rganization
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 the sale of admission
tickets which is separately stated on the ticket of ad mission 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 purpose of constructing or
enlarging any facility 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
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paid admission ticket. Such facilities include, but are not limited
to, athletic fields, athletic stadi ums, field houses, amphitheaters
and theaters. To be eligible for this sales tax exempt ion, the
amount separately stated on the adm ission ticket shall be a
surcharge which is imposed, collected and used for t he sole purpose
of servicing or aiding in the s ervicing of debt incurred 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 sta te supervisory organizations 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, t he 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 Vetera ns 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, Foss Reservoir Master
Conservancy District, Mountain Park Master Co nservancy District,
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Waurika Lake Master Cons ervancy District and the Office of
Management and Enterprise Services only wh en carrying out a public
construction contract on behalf of the Oklahoma Department of
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 ha s duly entered into a
public contract pursuant to law, necessary for carrying 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 w riting, 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 s ubdivision or agency of this state
and set out the name of such public subdivision or agency. Any
person who wrongfully or erroneously certifies 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 accredite d by the State
Department of Education or regis tered by the State Board of
Education for purposes of participating in federal programs or
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accredited as defined by the Oklahoma Sta te Regents for Highe r
Education which are exempt from taxation pursuant to th e provisions
of the Internal Revenue Code, 26 U .S.C., Section 501(c)(3) including
materials, supplies and equipment used in the constru ction and
improvement of buildings and other structures owned by the
institutions and operated for educational purposes.
Any person, firm, agency or entity making purch ases 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 violation of this paragraph shall b e 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 State Department of
Education or registered by the State Board of Education f or 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 provisions of the Internal Revenue Co de, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property 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 district,
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(4) a public or private school board,
(5) a public or private school st udent group or
organization,
(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 district, public or
private school board or public or private school
student group or organization, or
b. Sales of tangible personal property m ade by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
which solicit money or prop erty in the name of any
public or private school o r public school district.
The exemption provide d 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 Educ ation or
registered by the State Board of Educatio n for purposes of
participating in federal prog rams. Sale of tangible personal
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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,
b. county, regional or state 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 by this paragraph shall be li mited to
sales for the purpose of raising funds for the benefit of such
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 tickets and concessions at athl etic 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 Oklahoma Tourism and Recreation De partment 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, promotion, publicity and public rela tions
programs;
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17. Sales of tangible personal property or services to 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 ce rtify, in writing, on the copy of the
invoice or sales ticket to be retained by the vend or that the
purchases are made for and on be half of such fire departmen t and set
out the name of such fire department. A ny person who wrongfully or
erroneously certifies that the purchases are for any such fire
department or who otherwise violates the pro visions of this section
shall be deemed guil ty of a misdemeanor and upo n conviction thereof,
shall be fined an amount equ al to double the amount 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, exhi bition, display or other
recreational events or ac tivities which are issued through a box
office or other entity which is operated by a state institution of
higher education with instit utional employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) eac h 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 pr operty for
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the purposes of raising funds shall be limited to no more than six
(6) days each year to raise such funds in order to receiv e the
exemption granted by this paragraph;
20. Sales of tangible perso nal property or services to any Boys
& Girls Clubs of America affiliate in this state which is no t
affiliated with the Salvation 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 service s to any
organization, which takes court -adjudicated juveniles for purposes
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 that 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 property 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 Title 56 of the
Oklahoma Statutes,
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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
(2) is exempt from taxatio n pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center 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 equivalent to the charge that co uld have
otherwise been made, to YMCAs, YWCAs o r 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 property or services to or by a
cultural organization established to sponsor and p romote
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 shall certify, in writing, on the
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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 or erroneously certifies that the
purchases are for any such museum or other entity or who otherwise
violates the provisions of this paragraph shall be deemed guilt y of
a misdemeanor and, upon conviction ther eof, shall be fined an amou nt
equal to double the amount of sales tax involve d or incarcerated for
not more than sixty (60) days, or by both such fine 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 pa ragraph, an amount equivalent to
the amount of the tax which would otherwise be required to be
collected pursuant to the provisions of Section 1350 et seq. of this
title shall be separately stated on the ad mission ticket and shall
be collected and used for the sole purpose of servicing or aiding in
the servicing of debt incurred by the museum to effect the
construction, enlarging or renov ation of any facility to be used for
entertainment, edification or cult ural cultivation to which entry is
gained with a paid admission ticket;
27. Sales of tangible pe rsonal property or services occurring
on or after June 1, 1995, to children's homes which are supported or
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sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Department of
Oklahoma, Inc., and subord inate chapters thereof;
29. Sales of tangib le personal property or ser vices to youth
camps which are supported or sponso red 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 University Hospitals
Trust, and
b. Effective July 1, 2022, transfer of tangibl e 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 are exempt from taxation
pursuant to the provisions of the Internal
Revenue Code of the United States, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the University
Hospitals Trust;
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31. Sales of tangible personal property 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;
32. Sales of tangible personal property 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 associated 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 into space. This exemption pro vided by
this paragraph shall not be affected b y:
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 tr ansfer or title to, or possession
of, the satellite or launch vehicle 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 k ind possessing space
flight capacity including com ponents thereof;
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35. The sale, lease, use, sto rage, consumption or distribution
in this state of tangible personal property, placed on or used
aboard any space facility, space pr opulsion system or space ve hicle,
satellite, or station possessing space flig ht capacity, which is
launched into space, irre spective of whether such tangible property
is returned to this state for subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, stor age, consumption or distribution
in this state of tangible personal property meeting the definiti on
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 flight; however,
section 38 property used in support of space flight shall no t
include general office equipment, any boat, mobile home, motor
vehicle or other vehicl e of a class or type required to be
registered, licensed, titled or doc umented in this state or by the
United States government, or any other property not specifically
suited to supporting space activity. The term "in support of space
flight", for purposes of this paragraph, means the altering,
monitoring, controlling, regul ating, adjusting, servicing or
repairing of any space facility, space propulsion systems or space
vehicle, satellite or station possessing space flight capacity
including the components thereof;
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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, c ompounding or producing of any space
facility, space propulsion system or space vehicle, satellite or
station of any kind possessing space flight capacity. Pr ovided, the
exemption provided for in this paragra ph shall not be allowed unless
the purchaser or lessee signs an affidavit 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 o f any tax imposed by Section 1354 of
this title shall be subject to the 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) of the
Internal Revenue Code of 1986, which is used as an integral part of
the manufacturing, processing, compounding or producing of items of
tangible personal pro perty. Such term includes parts and
accessories only to the extent tha t the exemption thereof is
consistent with the pro visions of this paragraph;
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, rem odeling or
enlarging facilities of a public trust having a municipality or
county as its sole ben eficiary;
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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 is exempt from taxation
pursuant to the provisions of the Internal Revenue C ode, 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;
40. The sale, lease or use of parking privileges by an
institution of The Oklahoma State System of Higher Educa tion;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma St ate System of Higher Education,
private institutions of higher education accredited by the Oklaho ma
State Regents for Higher 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 taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Sec tion
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 Interna l Revenue Code, 26 U.S.C., Section
501(c)(3), in the course of conducting 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 In ternal Revenue Code, 26 U.S.C.,
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Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the provisio ns of
the Internal Revenue Code, 26 U.S.C., Sec tion
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 tra ining and
conducting events relating to robotic s;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an a thletic organization exempt 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 facility owned or operated by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determines or is part of a tourna ment or
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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
501(c)(3) and is operating the Oklahoma City National Mem orial 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 Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the memberships of which a re 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 services 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 mo nies received from a private
foundation grant in c onjunction 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 subdivis ion of that state,
but only to the extent that the other state or political subdivision
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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 person al property
or services to the Career Technology S tudent Organizations under the
direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. Sales of tangible personal property to a public trust
having either a single city , town or county or multiple cities,
towns or counties or combination thereof as beneficiary or
beneficiaries or a nonprofit organization which is exempt from
taxation pursuant to the p rovisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) fo r the purpose of constructing
improvements to or e xpanding a hospital or nursing home owned and
operated by any such public 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 in this paragraph, "constructing
improvements to or expanding" shall not mean any expense for routine
maintenance or general repairs and shall require a project cost of
at least One Hundred Th ousand Dollars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subc ontractor 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 nonprofit entity. The exempti on
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authorized by this paragraph shall be admini stered 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 applicable to the transaction. The purchaser
may apply for a refund of the sa les tax paid in the manner
prescribed by this paragraph. Within thirty (30) days after the end
of each fiscal year, any purchaser t hat is entitled to make
application for a refund based upon the exempt treatm ent authorized
by this paragraph may file an ap plication 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 applicati on for
refund. The Tax Commission shall determine whether or not the total
amount of sales tax e xemptions claimed by all 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 a mount, the Tax
Commission shall make refunds to th e purchasers in the full amount
of the documented and verified sales tax amounts. If such claims by
all purchasers are in excess of Si x Hundred Fifty Thousand Dollars
($650,000.00), the Tax Commission shal l determine the amount of each
purchaser's claim, the total amount of all claims by all purchaser s,
and the percentage each purchaser's claim amount bears to the total.
The resulting percentage determined for each purchaser shal l be
multiplied by Six Hund red Fifty Thousand Dollars ($650,000.00) to
determine the amount of refundable sales tax to be pa id to each
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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 pro 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
provides housing for physically and mentally handicapped persons and
which is exempt from taxation purs uant 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 funds. In order to receive the benefit of the
exemption authorized by this pa ragraph, the taxpayer shall 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 other provision of the Oklaho ma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be authorized 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 shall be
required to provide docu mentation as may be prescribed by the
Oklahoma Tax Commission in support of the refund c laim. The total
amount of sales tax qualify ing for exempt treatment pu rsuant to this
paragraph shall not exceed One Hund red Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
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processed in the order in which such clai ms are received by the
Oklahoma Tax Commissi on. If a claim otherwise t imely filed exceeds
the total amount of refunds pa yable for a fiscal 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
benefit of a qualified ne ighborhood watch organization that is
endorsed or supported by or working directly with a law enf orcement
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 first two thousand organizations
which makes application to the Oklahoma Tax Co mmission 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 pro visions of the
Internal Revenue Code, 26 U.S.C., S ection 501(c)(3), organized
primarily for the purpose of providing services to homeless persons
during the day and located in a metropo litan area with a population
in excess of five hundred thousand (500,00 0) persons according to
the latest Federal Decenni al Census. The exemption authorized by
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this paragraph shall be applicable 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 from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the princip al purpose of which is to provide
funding for the preservation of wetla nds and habitat for wild ducks;
56. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Re venue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpo se of which is to provide
funding for the preserva tion and conservation 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 community-based, autonomous
member organizations that meets the following
criteria:
(1) serves people with workplace disadvantag es and
disabilities by providing job trainin g and
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employment services, as well as job placement
opportunities and post -employment support,
(2) has locations in the Unit ed 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 government, and
(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 admissi on 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 Basketb all
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 July 1, 2007, and complimentary or free
tickets for admission issued on or aft er 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 tea m in
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the National Hockey League is a participant, which is held in a
facility owned or operated b y a municipality, a county 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 the charge
that would have otherw ise been made to a professional sporting event
involving ice hockey, baseball, basketbal l, football or arena
football, or soccer. A s used in this paragraph, "professional
sporting event" means an organized at hletic competition between
teams that are membe rs of an organized league or association with
centralized management, other than a natio nal league or national
association, that imp oses requirements for parti cipation in the
league upon the teams, the individ ual 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 wh ich is
exempt from taxation pursuant to the provis ions of the Internal
Revenue Code, 26 U.S.C., S ection 501(c)(3) and has 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 exempt from taxation pursuant to the
provisions of the Internal Reven ue Code, 26 U.S.C., Section
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501(c)(3), and which is itself a member of an organization which is
exempt from taxation purs uant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraisi ng, public awareness or other
efforts for the bene fit of its member organizations, and if the
member organization is primarily engaged either in providing
educational services and progr ams concerning health -related diseases
and conditions to individuals su ffering from such health-related
diseases and conditions or their caregivers and family members o r
support to such individuals, 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 member nonprofit
organization shall be required to provide proof to the Oklah oma 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 personal property or services to or by a
YWCA or YMCA organization which is par t of a national nonprofit
community service organization working to meet the health and social
service needs of its members across t he United States;
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64. Sales of tangible personal property or services to or by a
veteran's organization which is exempt fro m 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 Chapters;
65. Sales of boxes of food by a church or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U .S.C., Section 501(c)(3). To qualify
under the provisions of this para graph, the organization 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 property or services to any
person with whom a church has duly entered into a con struction
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 edu cational purposes, 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),
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b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training a nd education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of developmentally
disabled individuals, and
(3) promoting unity among developmentall y disabled
individuals in their community and g eographic
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 taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., S ection
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 exemption shall apply to eligible
shelters for children 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 Ac t and which:
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a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Program or a national
accreditation, and
b. allows on-site universal prekindergart en education to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sal es made to any person,
firm, agency or entity that has entered previously into a
contractual relationship with a child care center for construction
and improvement of buildings and other structures owned by th e child
care center and operated for educationa l 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 writing, on the copy of the invoic e or
sales ticket the nature of the purchase. Any such person, or person
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 misdemeanor and upon conviction the reof shall be
fined an amount equal to double t he 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 children who are
serving or who have served in the military, which
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service organization is exempt from 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, Inc. The exemption
provided by this paragraph shall 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 purchased by the organization.
Provided, this exemption shall not apply to any sal es
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 apportion ed pursuant to Section 1353 of
this title, and the vendor shall be required to
collect the sales tax otherwise applicable to the
transaction. The purchaser may appl y for a refund of
the state sales tax pai d in the manner prescribed by
this paragraph. Wit hin sixty (60) days after the end
of each calendar quarter, any purchaser 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 state sales
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taxes paid during such preceding calendar 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 certi fy 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
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack items to or by an organization
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), who se primary
and principal purpose is provi ding funding for scholarships in the
medical field;
72. Sales of tangible personal property or s ervices 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 provi ding
end-of-life care and access to hospice ser vices 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
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organization has duly entered into a constructi on 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 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 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 vio lates this section shall be guilty
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 more than sixty (60) days or bo th;
73. Sales of tickets for admission to even ts 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 property 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 which raises tax-
deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and other
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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 f oundation
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 Internal Revenue Code, 26
U.S.C., Section 501(c)(3) which are related to a fun draising event
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 parag raph 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 November 1, 2017, sales of tangibl e personal
property or services to an organizat ion which is exempt from
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 community agencies in one location t o serve
individuals and families affected by vi olence and where victims have
access to services and advocacy at no cost to the victim;
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77. Effective July 1, 2018, s ales of tangible personal property
or services to or by an association which is exempt from taxation
pursuant to the provisions of the Int ernal 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 tangi ble 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)(4) and which i s known as the Marine Corps Le ague of
Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase 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 Le gion organization;
80. Sales of tangible personal property or services 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 L ab 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
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advanced 21st century manufacturing and digital
fabrication tools for science, technology,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses and producing personalized product s;
81. Effective November 1, 2021, sales of tangible personal
property or services used solely for construction and remo deling
projects to an organization which is exe mpt from taxation pursuant
to the provisions of the Internal Revenue Code, 26 U.S.C., Se ction
501(c)(3), and which mee ts the following requirements:
a. its primary purpose is to construct 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 activities in a manner that serves
public or charitable purposes, 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 interes ts of its
clients, and
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d. it compensates its em ployees in a manner that 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 e ntity, organized pursuant to
Oklahoma law before January 1, 2022, exempt 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 disaster, with program
emphasis on repair or restoration to single-family residential
dwellings or the construction of a r eplacement single-family
residential dwelling. As used in this paragraph, "disaster" means
damage to property with or wi thout accompanying injury to persons
from heavy rain, high winds, tornadic winds, drought, wildfire,
snow, ice, geologic disturbances, explosions, chemical accidents or
spills and other events causing damage to property on a large 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 for the exemption
authorized by this paragraph;
83. Effective November 1, 20 21, through December 31, 2024,
sales of tangible personal property or services to a muse um that:
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a. operates as a part of an organiz ation which is exempt
from taxation pursuant to the 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 tangible personal property or
services for use in a clinical practice or medica l 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 joi nt
operating agreement with the University Hosp itals 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 property and services for use in
clinical practices or medical facilities acq uired 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 pursu ant to Oklahoma law before January
1, 2019, exempt from federal income taxation pursuant to Section
501(c) of the Internal Revenue C ode of 1986, as amended, the
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principal functions of which are to provide assi stance 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 operat ed exclusively for
charitable and educational p urposes through the coordination 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 disaster 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,
shall be eligible for the exemption authorized by this paragraph.
The exemption provided by this 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 persons 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 h ereby
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declared to exist, by reason whereof this ac t shall take effect and
be in full force from a nd after its passage and approval.
Passed the House of Representatives the 13th day of March, 2023.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2023.
Presiding Officer of the Senate