OK
Oklahoma Senate Bill SB406

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB406 Compare Versions

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28-ENGROSSED HOUSE AMENDME NT
29- TO
30-ENGROSSED SENATE BILL NO . 406 By: Rader of the Senate
3+SB406 HFLR Page 1
4+BOLD FACE denotes Committee Amendments. 1
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29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31+STATE OF OKLAHOMA
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33+1st Session of the 59th Legislature (2023)
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35+COMMITTEE SUBSTITUTE
36+FOR ENGROSSED
37+SENATE BILL NO. 406 By: Rader of the Senate
3138
3239 and
3340
34- Boatman of the House
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40-An Act relating to sales tax; amending 68 O.S. 2021,
41-Section 1356, as last amend ed by Section 1, Chapter
42-394, O.S.L. 2022 (68 O.S. Sup p. 2022, Section 1356),
43-which relates to exemptions for governmen tal and
44-nonprofit entities; providing exemption for certain
45-organization providing services to abused a nd
46-neglected children; requiring submission of certain
47-documentation; providing exemptio n for certain
48-organization providing clothing or supplies to
49-certain students; updating statutory language; and
50-providing an effective date.
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58-AUTHOR: Add the following House Coauthor: Blancett
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60-AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
61-and insert:
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66-"[ sales tax - exemptions - effective date ]
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41+ Boatman and Blancett of the
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51+COMMITTEE SUBSTITUTE
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53+[ sales tax - exemptions - effective date ]
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9961
10062 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
10163 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1 356, as
10264 last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
10365 2022, Section 1356), is amended to read as follows:
10466 Section 1356. Exemptions - Governmental and nonp rofit entities.
10567 There are hereby specif ically exempted from the tax levied by
10668 Section 1350 et seq. of this title:
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10796 1. Sale of tangible personal property or services to the United
10897 States government or to the State of Oklahoma this state, any
10998 political subdivision of this state, or any agency of a political
11099 subdivision of this state; provided, all sales to contractors in
111-connection with the performance of any contract with the United
112-States government, State of Oklahoma this state, or any of its
113-political subdivisions shall not be exempted from th e tax levied by
114-Section 1350 et seq. of this title, except as hereinafter provided;
115-2. Sales of property to agents appointed by or under contract
116-with agencies or instrumental ities of the United States government
117-if ownership and possession of such proper ty transfers immediately
118-to the United States government;
119-3. Sales of property to agents appointed by or under contract
120-with a political subdivision of this state if the sale of such
121-property is associated with the development of a qualified federal
122-facility, as provided in the Oklahoma Federal Facilities Development
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149-Act, and if ownership and possession of such property transfers
150-immediately to the political subdivision or the state;
151-4. Sales made directly by county , district, or state fair
152-authorities of this state, upon the premises of the fair authority,
153-for the sole benefit of the fair authority or sales of admission
154-tickets to such fairs or fair events at any location in t he state
155-authorized by county, district , or state fair authorities; provided,
156-the exemption provided by this paragraph for admission tickets to
157-fair events shall apply only to any portion of the admission price
158-that is retained by or distributed to the fai r authority. As used
159-in this paragraph, "fair event" shall be limited to an eve nt held on
160-the premises of the fair authority in conjunction with and during
161-the time period of a county, district, or state fair;
162-5. Sale of food in cafeterias or lunchrooms of elementary
163-schools, high schools, coll eges, or universities which are operate d
164-primarily for teachers and pupils and are not operated primarily for
165-the public or for profit;
166-6. Dues paid to fraternal, religious, civic, charitable, or
167-educational societies or organizations by regular members t hereof,
168-provided, such societies or org anizations operate under what is
169-commonly termed the lodge plan or system, and provided such
170-societies or organizations do not operate for a profit which inures
171-to the benefit of any individual member or members there of to the
172-exclusion of other members an d dues paid monthly or annually to
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199-privately owned scientific and educational libraries by members
200-sharing the use of services rendered by such libraries with students
201-interested in the study of geology, petroleum eng ineering, or
202-related subjects;
203-7. Sale of tangible personal property or services to or by
204-churches, except sales made in the course of business for profit or
205-savings, competing with other persons engaged in the sam e, or a
206-similar business or sale of tangi ble personal property or services
207-by an organization exempt from federal income tax pursuant to
208-Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
209-made on behalf of or at the request of a church or churches if the
210-sale of such property is conducted not more than once each calen dar
211-year for a period not to exceed three (3) days by the organization
212-and proceeds from the sale of such property are used by the church
213-or churches or by the organization for charitable purposes;
214-8. The amount of proceeds received from the sale of admis sion
215-tickets which is separately stated on the ticket of admission for
216-the repayment of money borrowed by any accredited state-supported
217-college or university or any public tru st of which a county in this
218-state is the beneficiary, for the purpose of constr ucting or
219-enlarging any facility to be used for the staging of an athletic
220-event, a theatrical production, or any other form of entertainment,
221-edification, or cultural cultivat ion to which entry is gained with a
222-paid admission ticket. Such facilities incl ude, but are not limited
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249-to, athletic fields, athletic stadiums, field houses, amphitheaters,
250-and theaters. To be eligible for this sales tax exemption, the
251-amount separately stated on the admission ticket shall be a
252-surcharge which is imposed, collected , and used for the sole purpose
253-of servicing or aiding in the servicing of debt incurred by the
254-college or university to effect the capital improvements
255-hereinbefore described;
256-9. Sales of tangible personal property or services to the
257-council organizations or similar state supervisory organizations of
258-the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire
259-USA;
260-10. Sale of tangible personal propert y or services to any
261-county, municipality, rural water district, public school district,
262-city-county library system, the institutions of The Oklahoma State
263-System of Higher Education, the Grand River Dam Authority, the
264-Northeast Oklahoma Public Facilities Authority, the Oklahoma
265-Municipal Power Authority, City of Tul sa-Rogers County Port
266-Authority, Muskogee City-County Port Authority, the Oklahoma
267-Department of Veterans Affairs, the Broken Bow Economic Development
268-Authority, Ardmore Development Authority, D urant Industrial
269-Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
270-Master Conservancy District, Arbuckle Master Conservancy District,
271-Fort Cobb Master Conservancy District, Foss Reservoir Master
272-Conservancy District, Mountain Park Master Conse rvancy District,
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299-Waurika Lake Master Conservancy District and the Office of
300-Management and Enterpr ise Services only when carrying out a public
301-construction contract on behalf of the Oklahoma Department of
302-Veterans Affairs, and effective July 1, 2022, the Uni versity
303-Hospitals Trust, or to any person with whom any of the above-named
304-subdivisions or agenc ies of this state has duly entered into a
305-public contract pursuant to law, necessary for carrying out such
306-public contract or to any subcontractor to such a pub lic contract.
307-Any person making purchases on behalf of such su bdivision or agency
308-of this state shall certify, in writing, on the copy of the invoice
309-or sales ticket to be retained by the vendor that the purchases are
310-made for and on behalf of such subdiv ision or agency of this state
311-and set out the name of such publ ic subdivision or agency . Any
312-person who wrongfully or erroneously certifies that purchases are
313-for any of the above-named subdivisions or agencies of this state or
314-who otherwise violates this section shall be guilty of a misdemeanor
315-and upon conviction t hereof shall be fined an amount e qual to double
316-the amount of sales tax involved or incarcerated for not more than
317-sixty (60) days or both;
318-11. Sales of tangible personal property or services to private
319-institutions of higher education and private element ary and
320-secondary institutions of education accredited by the State
321-Department of Education or registered by the State Board of
322-Education for purposes of participating in federal programs or
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349-accredited as defined by the Oklahoma State Regents for Higher
350-Education which are exempt from tax ation pursuant to the provisions
351-of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including
352-materials, supplies, and equipment used in the construction and
353-improvement of buildings and other structures owned by th e
354-institutions and operated for e ducational purposes.
355-Any person, firm, agency, or entity making purchases on behalf
356-of any institution, agency, or subdivision in this state, shall
357-certify in writing, on the copy of the invoice or sales ticket the
358-nature of the purchases, and violation of this paragraph shall be a
359-misdemeanor as set forth in paragraph 10 of this section;
360-12. Tuition and educational fees paid to private institutions
361-of higher education and private elementary and secondary
362-institutions of education accredited by the State D epartment of
363-Education or registered by the State Board of Education for purposes
364-of participating in federal programs or accredited as defined by the
365-Oklahoma State Regents for Higher Education which are exempt from
366-taxation pursuant to the provisions of the Internal Revenue Code, 26
367-U.S.C., Section 501(c)(3);
368-13. a. Sales of tangible personal property made by:
369-(1) a public school,
370-(2) a private school offering ins truction for grade
371-levels kindergarten through twelfth grade ,
372-(3) a public school district,
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399-(4) a public or private school board,
400-(5) a public or private school student group or
401-organization,
402-(6) a parent-teacher association or organization
403-other than as specified in subparagraph b of this
404-paragraph, or
405-(7) public or private school personnel for p urposes
406-of raising funds for the benefit of a public or
407-private school, public school district, public or
408-private school board, or public or private school
409-student group or organization, or
410-b. Sales of tangible personal pro perty made by or to
411-nonprofit parent-teacher associations or organizations
412-exempt from taxation pursuant to the provisions of the
413-Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
414-nonprofit local public or private school foundations
415-which solicit money or property in the name of any
416-public or private school or public school district.
417-The exemption provided by this paragraph for sales made by a
418-public or private school shall be limited to those pu blic or private
419-schools accredited by the State Department of Education or
420-registered by the State Board of Education for purposes of
421-participating in federal programs. Sale of tangible personal
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448-property in this paragraph shall include sale of admission t ickets
449-and concessions at athletic events;
450-14. Sales of tangible personal property by:
451-a. local 4-H clubs,
452-b. county, regional, or state 4-H councils,
453-c. county, regional, or state 4-H committees,
454-d. 4-H leader associations,
455-e. county, regional, or state 4-H foundations, and
456-f. authorized 4-H camps and training c enters.
457-The exemption provided by this paragraph shall be limited to
458-sales for the purpose of raising funds for the benefit of such
459-organizations. Sale of tangible personal property exempted by this
460-paragraph shall include sale of admission tickets;
461-15. The first Seventy-five Thousand Dollars ($75,000.00) each
462-year from sale of tickets and concessions at athletic eve nts by each
463-organization exempt from taxation pursuant to the provisions of the
464-Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
465-16. Sales of tangible personal property or services to any
466-person with whom the Oklahoma Tourism and Recreation Department has
467-entered into a public contract and which is necessary for carrying
468-out such contract to assist the Department in the development and
469-production of advertising, promotion , publicity, and public
470-relations programs;
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497-17. Sales of tangible personal proper ty or services to fire
498-departments organized pursuant to Section 592 of Title 18 of th e
499-Oklahoma Statutes which items are to be used for the purposes of the
500-fire department. Any person making purchases on behalf of any such
501-fire department shall certify, in writing, on the copy of the
502-invoice or sales ticket to be retained by the vendor th at the
503-purchases are made for and on behalf of such fir e department and set
504-out the name of such fire department. Any person who wrongfully or
505-erroneously certifies that the purchases are for any such fire
506-department or who otherwise violates the provisio ns of this section
507-shall be deemed guilty of a misdemea nor and upon conviction thereof,
508-shall be fined an amount equal to double the amount of sales tax
509-involved or incarcerated for not more than sixty (60) days, or both;
510-18. Complimentary or free tickets for admission to places of
511-amusement, sports, entertai nment, exhibition, display, or other
512-recreational events or activities which are issued through a box
513-office or other entity which is operated by a state institution of
514-higher education with institution al employees or by a municipality
515-with municipal emplo yees;
516-19. The first Fifteen Thou sand Dollars ($15,000.00) each year
517-from sales of tangible personal property by fi re departments
518-organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
519-for the purposes of raising funds for the benefit of the f ire
520-department. Fire departments selling tangible personal property for
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547-the purposes of raising funds shall be lim ited to no more than six
548-(6) days each year to raise such funds in order to receive the
549-exemption granted by this paragraph;
550-20. Sales of tangible personal property or servi ces to any Boys
551-& Girls Clubs of America affiliate in this state which is not
552-affiliated with the Salvation Army and which is exempt from taxation
553-pursuant to the provis ions of the Internal Revenue Code, 26 U.S.C.,
554-Section 501(c)(3);
555-21. Sales of tangible personal property or services to any
556-organization, which takes court-adjudicated juveniles for purposes
557-of rehabilitation, and which is exempt from taxation pursuant to the
558-provisions of the Internal Revenue Code, 26 U.S.C ., Section
559-501(c)(3), provided th at at least fifty percent (50%) of the
560-juveniles served by such organization are c ourt adjudicated and the
561-organization receives state funds in an amount less than ten p ercent
562-(10%) of the annual budget of the organization;
563-22. Sales of tangible personal property or services to:
564-a. any health center as defined in Section 254b of Title
565-42 of the United States Code,
566-b. any clinic receiving disbursements of state monies
567-from the Indigent Health Care Revolving Fund pursuant
568-to the provisions of Section 66 of T itle 56 of the
569-Oklahoma Statutes,
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596-c. any community-based health center which meets all of
597-the following criteria:
598-(1) provides primary care services at no cost to the
599-recipient, and
600-(2) is exempt from taxation pursuant to t he
601-provisions of Section 501(c)(3 ) of the Internal
602-Revenue Code, 26 U.S.C., Section 501(c)(3), and
603-d. any community mental health center as defined in
604-Section 3-302 of Title 43A of the Oklahoma Statutes ;
605-23. Dues or fees including free or complimentary du es or fees
606-which have a value equ ivalent to the charge that could have
607-otherwise been made, to YMCAs, YWCAs, or municipally-owned
608-municipally owned recreation centers for the use of facilities and
609-programs;
610-24. The first Fifteen Thousand Dollars ($15,000.00) each year
611-from sales of tangible personal prope rty or services to or by a
612-cultural organization established to sponsor and promote
613-educational, charitable, and cultural events for disadvantaged
614-children, and which orga nization is exempt from taxation pursuant to
615-the provisions of the Internal Revenue C ode, 26 U.S.C., Section
616-501(c)(3);
617-25. Sales of tangible personal property or services to museums
618-or other entities which have been accredited by the American
619-Association Alliance of Museums. Any person making purchases o n
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646-behalf of any such museum or other entity shall certify, in writing,
647-on the copy of the invoice or sales ticket to be retained by the
648-vendor that the purchases are made for and on behalf of such museum
649-or other entity and set out the name of such museum or other entity.
650-Any person who wrongfully or erroneously certifies that the
651-purchases are for any such museum or other entity or who otherwise
652-violates the provisions of this paragraph shall be deemed guilty of
653-a misdemeanor and, upon conviction thereof, shall be fined an amount
654-equal to double the amount of sales tax involved or incarcerated for
655-not more than sixty (60) days, or by both such fine and
656-incarceration;
657-26. Sales of tickets for admission by any museum accredited by
658-the American Association Alliance of Museums. In order to be
659-eligible for the exemption provided by this paragraph, an amount
660-equivalent to the amount of the tax which would otherwise be
661-required to be collected pursuant to the provis ions of Section 1350
662-et seq. of this title shal l be separately stated o n the admission
663-ticket and shall be collected and used for the sole purpose of
664-servicing or aiding in the servicing of debt incurred by the museum
665-to effect the construction, enlarging , or renovation of any facility
666-to be used for entertainment, edification , or cultural cultivation
667-to which entry is gained with a paid admission ticket;
668-27. Sales of tangible personal property or services occurring
669-on or after June 1, 1995, to children 's homes which are supported or
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696-sponsored by one or more churches, members of which serve as
697-trustees of the home;
698-28. Sales of tangible personal property or services to the
699-organization known as the Disabled American Veterans, Department of
700-Oklahoma, Inc., and subordinate chapters thereof;
701-29. Sales of tangible personal proper ty or services to youth
702-camps which are supported or sponsored by one or more churches,
703-members of which serve as trustees of the organization;
704-30. a. Until July 1, 2022, transfer of tangible personal
705-property made pursuant to Sect ion 3226 of Title 63 of
706-the Oklahoma Statutes by the University Hospitals
707-Trust, and
708-b. Effective July 1, 2022, transfer of tangible personal
709-property or services to or by:
710- (1) the University Hospitals Trust created pursuant
711-to Section 3224 of Title 63 of the Oklahoma
712-Statutes, or
713- (2) nonprofit entities which are exempt from taxation
714-pursuant to the provisions of the Internal
715-Revenue Code of the United States, 26 U.S.C.,
716-Section 501(c)(3), which have entered into a
717-joint operating agreement with the Unive rsity
718-Hospitals Trust;
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745-31. Sales of tangible personal property or services to a
746-municipality, county, or school district pursuant to a lease or
747-lease-purchase agreement executed between the vendor and a
748-municipality, county, or school district. A copy of the lease or
749-lease-purchase agreement shall be retained by the vendor;
750-32. Sales of tangible personal property or services to any
751-spaceport user, as defined in the Oklahoma Space Industry
752-Development Act;
753-33. The sale, use, storage, consumption , or distribution in
754-this state, whether by the importer, exporter, or another person, of
755-any satellite or any associated launch vehicle including components
756-of, and parts and motors for, any such satellite or launch v ehicle,
757-imported or caused to be imported into this state for the purpos e of
758-export by means of launching into space. This exemption provided by
759-this paragraph shall not be affected by:
760-a. the destruction in whole or in part of the satellite
761-or launch vehicle,
762-b. the failure of a launch to occur or be successful, or
763-c. the absence of any transfer or title to, or possession
764-of, the satellite or launch vehicle after launch;
765-34. The sale, lease, use, storage, consumption, or distribution
766-in this state of any space facility, space propulsion system or
767-space vehicle, satellite, or station of any kind possessing space
768-flight capacity including components thereof;
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784-15
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789-20
790-21
791-22
792-23
793-24
794-
795-35. The sale, lease, use, storage, consumption, or distribution
796-in this state of tangible personal property, placed on or used
797-aboard any space facility, space propulsion system or space vehicle,
798-satellite, or station possessing space flight capacity, which is
799-launched into space, irrespective of whether such tangible property
800-is returned to this state for subsequent use, storage, or
801-consumption in any manner;
802-36. The sale, lease, use, storage, consumption, or distribution
803-in this state of tangible personal property meeting the definition
804-of "section 38 property" as defined in Sections 48(a)(1)(A) and
805-(B)(i) of the Internal Revenue Code of 1986, tha t is an integral
806-part of and used primarily in support of space flight; however,
807-section 38 property used in support of space flight shall not
808-include general office equipment, any boat, mobile home, motor
809-vehicle, or other vehicle of a class or type requi red to be
810-registered, licensed, titled, or documented in this state or by the
811-United States government, or any other property not specifically
812-suited to supporting space activity. The term "in support of space
813-flight", for purposes of this paragraph, mean s the altering,
814-monitoring, controlling, regulating, adjusting, servicing, or
815-repairing of any space facility, space propulsion systems or space
816-vehicle, satellite, or station possessing space flight capacity
817-including the components thereof;
818-
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843-
844-37. The purchase or lease of machinery and equipment for use at
845-a fixed location in this state, which is used exclusively in the
846-manufacturing, processing, compounding, or producing of any space
847-facility, space propulsion system or space vehicle, satellite, or
848-station of any kind possessing sp ace flight capacity. Provided, the
849-exemption provided for in this paragraph shall not be allowed unless
850-the purchaser or lessee signs an affidavit stating that the item or
851-items to be exempted are for the exclusive use designated herein.
852-Any person furnishing a false affidavit to the vendor for the
853-purpose of evading payment of any tax imposed by Section 1354 of
854-this title shall be subject to the penalties provided by law . As
855-used in this paragraph, "machinery and equipment" means "section 38
856-property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
857-Internal Revenue Code of 1986, which is used as an integral part of
858-the manufacturing, processing, compounding, or producing of items of
859-tangible personal property. Such term includes parts and
860-accessories only to the extent that the exemption thereof is
861-consistent with the provisions of this paragraph;
862-38. The amount of a surcharge or any other amount which is
863-separately stated on an admission ticket which is imposed,
864-collected, and used for the sole pur pose of constructing,
865-remodeling, or enlarging facilities of a public trust having a
866-municipality or county as its sole beneficiary;
867-
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888-21
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890-23
891-24
892-
893-39. Sales of tangible personal property or servi ces which are
894-directly used in or for the benefit of a state park in this state,
895-which are made to an organization which is exempt from taxation
896-pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
897-Section 501(c)(3) and which is organized pr imarily for the purpose
898-of supporting one or more state parks located in t his state;
899-40. The sale, lease, or use of parking privileges by an
900-institution of The Oklahoma State System of Higher Education;
901-41. Sales of tangible personal property or services for use on
902-campus or school construction projects for the benefit of
903-institutions of The Oklahoma State System of Higher Education,
904-private institutions of higher education accredited by the Oklahoma
905-State Regents for Higher Education, or any public school or school
906-district when such projects are financed by or through the use of
907-nonprofit entities which are exempt from taxation pursuant to the
908-provisions of the Internal Revenue Code, 26 U.S.C., Section
909-501(c)(3);
910-42. Sales of tangible personal property or services by an
911-organization which is exempt from taxation pursuant to t he
912-provisions of the Internal Revenue Code, 26 U.S.C., Section
913-501(c)(3), in the course of conducting a national championship
914-sports event, but only if all or a portion of the paymen t in
915-exchange therefor would qualify as the receipt of a qualified
916-sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
917-
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942-
943-Section 513(i). Sales exempted pursuant to this paragraph shall be
944-exempt from all Oklahoma sales, use, excise , and gross receipts
945-taxes;
946-43. Sales of tangible personal property or services to o r by an
947-organization which:
948-a. is exempt from taxation pursuant to the provisions of
949-the Internal Revenue Code, 26 U.S.C., Section
950-501(c)(3),
951-b. is affiliated with a comprehensive un iversity within
952-The Oklahoma State System of Higher Education, and
953-c. has been organized primarily for the purpose of
954-providing education and teacher training and
955-conducting events relating to robotics;
956-44. The first Fifteen Thousand Dollars ($15,000.00) each year
957-from sales of tangible personal property to or by youth athletic
958-teams which are part of an athletic organization exempt from
959-taxation pursuant to the provisions of the Internal Revenue Code, 26
960-U.S.C., Section 501(c)(4), for the purposes of rais ing funds for the
961-benefit of the team;
962-45. Sales of tickets for admission to a collegiate athletic
963-event that is held in a facility owned or operated by a municipality
964-or a public trust of which the municipality is the sole beneficiary
965-and that actually determines or is part of a tourname nt or
966-
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987-21
988-22
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990-24
991-
992-tournament process for determining a conference tournament
993-championship, a conference championship, or a national championship;
994-46. Sales of tangible personal property or services to or by an
995-organization which is e xempt from taxation pursuant to th e
996-provisions of the Internal Revenue Cod e, 26 U.S.C., Section
997-501(c)(3) and is operating the Oklahoma City National Memorial and
998-Museum, an affiliate of the National Park System;
999-47. Sales of tangible personal property or services to
1000-organizations which a re exempt from federal taxation pursuant to the
1001-provisions of Section 501(c)(3) of the Internal Revenue Code, 26
1002-U.S.C., Section 501(c)(3), the memberships of which are limited to
1003-honorably discharged veterans, and which f urnish financial support
1004-to area veterans' organizations to be used for th e purpose of
1005-constructing a memorial or museum;
1006-48. Sales of tangible personal property or services on or after
1007-January 1, 2003, to an organization which is exempt from taxation
1008-pursuant to the provisions of the Int ernal Revenue Code, 26 U.S.C.,
1009-Section 501(c)(3) that is expending monies received from a private
1010-foundation grant in conjunction with expenditures of local sales tax
1011-revenue to construct a local public library;
1012-49. Sales of tangible personal property or services to a state
1013-that borders this st ate or any political subdivision of that state,
1014-but only to the extent that the other state or political subdivision
1015-
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1031-16
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1035-20
1036-21
1037-22
1038-23
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1040-
1041-exempts or does not impose a tax on similar sales of items to thi s
1042-state or a political subdivision of this state;
1043-50. Effective July 1, 2005, sales of tangible personal property
1044-or services to the Career Technology Student Organizations under the
1045-direction and supervision of the Oklahoma Department of Career and
1046-Technology Education;
1047-51. Sales of tangible personal property to a public trus t
1048-having either a single city, town or county or multiple cities,
1049-towns or counties, or combination thereof as beneficiary or
1050-beneficiaries or a nonprofit organization which is exemp t from
1051-taxation pursuant to the pro visions of the Internal Revenue Code, 2 6
1052-U.S.C., Section 501(c)(3) for the purpose of constructing
1053-improvements to or expanding a hospital or nursing home owned and
1054-operated by any such public trust or nonprofit entity pr ior to July
1055-1, 2008, in counties wi th a population of less than one hundre d
1056-thousand (100,000) persons, according to the most recent Federal
1057-Decennial Census. As used in this paragraph, "constructing
1058-improvements to or expanding" shall not mean any expens e for routine
1059-maintenance or genera l repairs and shall require a project c ost of
1060-at least One Hundred Thousand Dollars ($100,000.00). For purposes
1061-of this paragraph, sales made to a contractor or subcontractor that
1062-enters into a contractual relationship w ith a public trust or
1063-nonprofit entity as described by this paragraph shal l be considered
1064-sales made to the public trust or nonprofit entity. The exemption
1065-
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1090-
1091-authorized by this paragraph shall be administered in the form of a
1092-refund from the sales tax reven ues apportioned pursuant to Section
1093-1353 of this title and the vendor shal l be required to collect the
1094-sales tax otherwise applicable to the transaction. The purchaser
1095-may apply for a refund of the sales tax paid in the manner
1096-prescribed by this paragraph . Within thirty (30) days after th e end
1097-of each fiscal year, any purchase r that is entitled to make
1098-application for a refund based upon the exempt treatment authorized
1099-by this paragraph may file an application for refund of the sales
1100-taxes paid during suc h preceding fiscal year. The Tax Commission
1101-shall prescribe a form for pu rposes of making the application for
1102-refund. The Tax Commission shall determine whether or not the total
1103-amount of sales tax exemptions claimed by all purchasers is equal to
1104-or less than Six Hundred Fifty Thousand Do llars ($650,000.00). If
1105-such claims are less than or equal to that amount, the Tax
1106-Commission shall make refunds to the purchasers in the full amount
1107-of the documented and verified sales tax amounts. If such claims by
1108-all purchasers are in excess of Six Hundred Fifty Thousand Dollars
1109-($650,000.00), the Tax Commission shall determine the amount of each
1110-purchaser's claim, the total amount of all claims by all purchasers,
1111-and the percentage each purchaser's claim amount bears to the total.
1112-The resulting percentage determined for each purchaser s hall be
1113-multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
1114-determine the amount of refundable sales tax to be paid to each
1115-
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1140-
1141-purchaser. The pro rata refund amount shall be the only method to
1142-recover sales taxes paid during the preceding fisca l year and no
1143-balance of any sales taxes paid on a pro rata basis shall be the
1144-subject of any subsequent refund claim pursuant to this paragraph;
1145-52. Effective July 1, 2006, sales o f tangible personal property
1146-or services to any organization which assists , trains, educates, and
1147-provides housing for physically and mentally handicapped persons and
1148-which is exempt from taxation pursuant to the provisions of the
1149-Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
1150-receives at least eighty-five percent (85%) of its annual budget
1151-from state or federal funds. In order to receive the benefit of the
1152-exemption authorized by this paragraph, the taxpayer shall be
1153-required to make payment of the applicable sales tax at the time of
1154-sale to the vendor in the mann er otherwise required by law.
1155-Notwithstanding any other provision of the Oklahoma Uniform Tax
1156-Procedure Code to the contrary, the taxpayer shall be authorized to
1157-file a claim for refund of sales taxes paid that quali fy for the
1158-exemption authorized by this paragraph for a period of one (1) year
1159-after the date of the sale transaction. The taxpayer shall be
1160-required to provide documentation as may be prescribed by the
1161-Oklahoma Tax Commission in support of the refund cla im. The total
1162-amount of sales tax qual ifying for exempt treatment pursuant to this
1163-paragraph shall not exceed One Hundred Seventy-five Thousand Dollars
1164-($175,000.00) each fiscal year. Claims for refund shall be
1165-
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1190-
1191-processed in the order in which such claims are received by the
1192-Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
1193-the total amount of refunds payable for a fiscal year, such claim
1194-shall be barred;
1195-53. The first Two Thousand Dollars ($2,000.00) e ach year of
1196-sales of tangible perso nal property or services to, by, or for the
1197-benefit of a qualified neighborhood watch organization that is
1198-endorsed or supported by or working directly with a law enforcement
1199-agency with jurisdiction in the area in which the neighborhood watch
1200-organization is located. As used in this paragraph , "qualified
1201-neighborhood watch organization" means an organization that is a
1202-not-for-profit corporation under the laws of the State of Oklahoma
1203-this state that was created to help p revent criminal activity in an
1204-area through community involvement and inte raction with local law
1205-enforcement and which is one of the first two thousand organizations
1206-which makes application to the Oklahoma Tax Commission for the
1207-exemption after March 29, 2 006;
1208-54. Sales of tangible personal property to a nonprofit
1209-organization, exempt from taxation pursuant to the provisions of the
1210-Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
1211-primarily for the purpose of providing services to homeless per sons
1212-during the day and located in a metropoli tan area with a population
1213-in excess of five hundred thousand (500,000) persons according to
1214-the latest Federal Decennial Census. The exemption authorized by
1215-
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1240-
1241-this paragraph shall be applicable to sales of tang ible personal
1242-property to a qualified entity o ccurring on or after January 1,
1243-2005;
1244-55. Sales of tangible personal property or services to or by an
1245-organization which is exempt from taxation pursuant to the
1246-provisions of the Internal Revenue Code, 26 U.S. C., Section
1247-501(c)(3) for events the principal purpose of which is to prov ide
1248-funding for the preservation of wetlands and habitat for wild ducks;
1249-56. Sales of tangible personal property or services to or by an
1250-organization which is exempt from taxation p ursuant to the
1251-provisions of the Internal Reve nue Code, 26 U.S.C., Section
1252-501(c)(3) for events the principal purpose of which is to provide
1253-funding for the preservation and conservation of wild turkeys;
1254-57. Sales of tangible personal property or services to an
1255-organization which:
1256-a. is exempt from taxation pursuant to the prov isions of
1257-the Internal Revenue Code, 26 U.S.C., Section
1258-501(c)(3), and
1259-b. is part of a network of community-based, autonomous
1260-member organizations that meets the following
1261-criteria:
1262-(1) serves people with workplace disadvantages and
1263-disabilities by providi ng job training and
1264-
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1289-
1290-employment services, as well as job placement
1291-opportunities and post-employment support,
1292-(2) has locations in the United States and at least
1293-twenty other countrie s,
1294-(3) collects donated clothing and household goods to
1295-sell in retail stores and provides contract labor
1296-services to business and government, and
1297-(4) provides documentation to the Oklahoma Tax
1298-Commission that over seventy-five percent (75%)
1299-of its revenues are channeled into employment,
1300-job training and placement programs, and other
1301-critical community services;
1302-58. Sales of tickets made on or after September 21, 2005, and
1303-complimentary or free tickets for admission issued on or after
1304-September 21, 2005, w hich have a value equivalent to the charge that
1305-would have otherwise been made, for admission to a professional
1306-athletic event in which a team in the National Basketball
1307-Association is a participant, which is held in a facility owned or
1308-operated by a municipality, a county, or a public trust of which a
1309-municipality or a county i s the sole beneficiary, and sales of
1310-tickets made on or after July 1, 2007, and complimentary or free
1311-tickets for admission issued on or after July 1, 2007, which have a
1312-value equivalent to the charge that would have otherwise be en made,
1313-for admission to a professional athletic event in which a team in
1314-
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1339-
1340-the National Hockey League is a participant, which is held in a
1341-facility owned or operated by a municipality, a county, or a public
1342-trust of which a municipality or a county is the sole beneficiary;
1343-59. Sales of tickets for admission and complimentary or free
1344-tickets for admission which have a value equivalent to the charge
1345-that would have otherwise been made to a professional sporting event
1346-involving ice hockey, baseball, basketbal l, football or arena
1347-football, or soccer. As used in this paragraph, "professional
1348-sporting event" means an organized athletic competition between
1349-teams that are members of an organized league or association with
1350-centralized management, other than a natio nal league or national
1351-association, that imposes requirements for participation in the
1352-league upon the teams, the individual athletes, or both, and which
1353-uses a salary structure to compensate the athletes;
1354-60. Sales of tickets for admission to an annual e vent sponsored
1355-by an educational and charitable organization of women which is
1356-exempt from taxation pursuant to the provisions of the Internal
1357-Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
1358-promoting volunteerism, developing the potentia l of women, and
1359-improving the community through the effective action and leadership
1360-of trained volunteers;
1361-61. Sales of tangible personal property or services to an
1362-organization, which is exempt from taxation pursuant to the
1363-provisions of the Internal Rev enue Code, 26 U.S.C., Sectio n
1364-
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1381-17
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1383-19
1384-20
1385-21
1386-22
1387-23
1388-24
1389-
1390-501(c)(3), and which is itself a member of an organization which is
1391-exempt from taxation pursuant to the provisions of the Internal
1392-Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
1393-organization is primarily engage d in advancing the purposes of its
1394-member organizations through fundraising, public awareness, or other
1395-efforts for the benefit of its member organizations, and if the
1396-member organization is primarily engaged either in providing
1397-educational services and pr ograms concerning health-related diseases
1398-and conditions to individuals suffering from such health-related
1399-diseases and conditions or their caregivers and family members or
1400-support to such individuals, or in h ealth-related research as to
1401-such diseases and conditions, or both. In order to qualify for the
1402-exemption authorized by this paragraph, the member nonprofit
1403-organization shall be required to provide proof to the Oklahoma Tax
1404-Commission of its membership s tatus in the membership organization;
1405-62. Sales of tangible personal prope rty or services to or by an
1406-organization which is part of a national volunteer women's service
1407-organization dedicated to promoting patriotism, preserving American
1408-history, and securing better education for children and which has at
1409-least 168,000 members in 3,000 chapters across the United States;
1410-63. Sales of tangible personal property or services to or by a
1411-YWCA or YMCA organization which is part of a national nonprofit
1412-community service organization working to meet the health and social
1413-service needs of its members across the United States;
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1434-20
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1438-24
1439-
1440-64. Sales of tangible personal property or services to or by a
1441-veteran's organization which is exempt from taxation pursuant to the
1442-provisions of the Internal Revenue Code, 26 U.S.C., Secti on
1443-501(c)(19) and which is k nown as the Veterans of Foreign Wars of the
1444-United States, Oklahoma Chapters;
1445-65. Sales of boxes of food by a church or by an organization,
1446-which is exempt from taxation pursuant t o the provisions of the
1447-Internal Revenue Code, 26 U.S.C., Section 501(c)(3) . To qualify
1448-under the provisions of this paragraph, the organization must be
1449-organized for the primary purpose of feeding needy individuals or to
1450-encourage volunteer service by re quiring such service in order to
1451-purchase food. These boxes shall only con tain edible staple food
1452-items;
1453-66. Sales of tangible personal property or services to any
1454-person with whom a church has duly entered into a construction
1455-contract, necessary for car rying out such contract or to any
1456-subcontractor to such a construction contract;
1457-67. Sales of tangible personal property or services used
1458-exclusively for charitable or educational purposes, to or by an
1459-organization which:
1460-a. is exempt from taxation pursu ant to the provisions of
1461-the Internal Revenue Co de, 26 U.S.C., Section
1462-501(c)(3),
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1479-16
1480-17
1481-18
1482-19
1483-20
1484-21
1485-22
1486-23
1487-24
1488-
1489-b. has filed a Not-for-Profit Certificate of
1490-Incorporation in this state, and
1491-c. is organized for the purpose of:
1492-(1) providing training and education to
1493-developmentally disabled individuals,
1494-(2) educating the community ab out the rights,
1495-abilities, and strengths of developmentally
1496-disabled individuals, and
1497-(3) promoting unity among developmentally disabled
1498-individuals in their community and geographic
1499-area;
1500-68. Sales of tangible personal property or services to any
1501-organization which is a shelter for abused, neglected, or abandoned
1502-children and which is exempt from taxation pursuant to the
1503-provisions of the Internal Revenue Code, 26 U.S.C., Section
1504-501(c)(3); provided, until July 1, 2008, such exemption shall apply
1505-only to eligible shelters for children from birth to age twelve (12)
1506-and after July 1, 2008, such exemption shall apply to eligible
1507-shelters for children from birth to age eighteen (18);
1508-69. Sales of tangible personal property or services to a child
1509-care center which is licensed pursuant to the Oklahoma Child Care
1510-Facilities Licensing Act and which:
1511-
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1514-3
1515-4
1516-5
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1518-7
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1520-9
1521-10
1522-11
1523-12
1524-13
1525-14
1526-15
1527-16
1528-17
1529-18
1530-19
1531-20
1532-21
1533-22
1534-23
1535-24
1536-
1537-a. possesses a 3-star rating from the Department of Human
1538-Services Reaching for the Stars Program or a national
1539-accreditation, and
1540-b. allows on-site universal prekinde rgarten education to
1541-be provided to four-year-old children through a
1542-contractual agreement with any public school or school
1543-district.
1544-For the purposes of this paragraph, sales made to any person,
1545-firm, agency, or entity that has entered previously into a
1546-contractual relationship with a child care center for construction
1547-and improvement of buildings and other structures owned by the child
1548-care center and operated for educational purposes shall be
1549-considered sales made to a child care center. Any such person,
1550-firm, agency, or entity making purchases on behalf of a child care
1551-center shall certify, in writing, on the copy of the invoice or
1552-sales ticket the nature of the purchase. Any such person, or person
1553-acting on behalf of a firm, agency, or entity making purchases on
1554-behalf of a child care center in violation of this paragraph shall
1555-be guilty of a misdemeanor and upon conviction thereof shall be
1556-fined an amount equal to double the amount of sales tax involved or
1557-incarcerated for not more than sixty (60) day s or both;
1558-70. a. Sales of tangible personal property to a service
1559-organization of mothers who have children who are
1560-serving or who have served in the military, which
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1574-13
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1577-16
1578-17
1579-18
1580-19
1581-20
1582-21
1583-22
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1585-24
1586-
1587-service organization is exempt from taxation pursuant
1588-to the provisions of the Internal R evenue Code, 26
1589-U.S.C., Section 501(c)(19) and which is known as the
1590-Blue Star Mothers of America, Inc. The exemption
1591-provided by this paragraph shall only apply to the
1592-purchase of tangible personal property actually sent
1593-to United States military personn el overseas who are
1594-serving in a combat zone and not to any other tangible
1595-personal property purchased by the organization.
1596-Provided, this exemption shall not apply to any sales
1597-tax levied by a city, town, county, or any other
1598-jurisdiction in this state.
1599-b. The exemption authorized by this paragraph shall be
1600-administered in the form of a refund from the sales
1601-tax revenues apportioned pursuant to Section 1353 of
1602-this title, and the vendor shall be requ ired to
1603-collect the sales tax otherwise applicable to th e
1604-transaction. The purchaser may apply for a refund of
1605-the state sales tax paid in the manner prescribed by
1606-this paragraph. Within sixty (60) days after the end
1607-of each calendar quarter, any purchas er that is
1608-entitled to make application for a refund bas ed upon
1609-the exempt treatment authorized by this paragraph may
1610-file an application for refund of the state sales
1611-
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1635-24
1636-
1637-taxes paid during such preceding calendar quarter.
1638-The Tax Commission shall prescribe a form for purposes
1639-of making the application for refund.
1640-c. A purchaser who applies for a refund pursuant to this
1641-paragraph shall certify that the items were actually
1642-sent to military personnel overseas in a combat zone.
1643-Any purchaser that applies for a refund for the
1644-purchase of items that are not authorized for
1645-exemption under this paragraph shall be subject to a
1646-penalty in the amount of Five Hundred Dollars
1647-($500.00);
1648-71. Sales of food and snack items to or by an organization
1649-which is exempt from tax ation pursuant to the provisions of the
1650-Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary
1651-and principal purpose is providing funding for scholarships in the
1652-medical field;
1653-72. Sales of tangible personal property or services for use
1654-solely on construction projects for organizations which are exem pt
1655-from taxation pursuant to the provisions of the Internal Revenue
1656-Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
1657-end-of-life care and access to hospice services to low-income
1658-individuals who live in a facility owned by the organization . The
1659-exemption provided by this paragraph applies to sales to the
1660-organization as well as to sales to any person with whom the
1661-
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1673-12
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1677-16
1678-17
1679-18
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1681-20
1682-21
1683-22
1684-23
1685-24
1686-
1687-organization has duly entered into a construction contract,
1688-necessary for carrying out such contract or to any subcontractor to
1689-such a construction contract. Any person making purchases on behalf
1690-of such organization shall certify, in writing, on the copy of the
1691-invoice or sales ticket to be retained by the vendor that th e
1692-purchases are made for and on behalf of such organization and set
1693-out the name of such organization. Any person who wrongfully or
1694-erroneously certifies that purchases are for any of the above-named
1695-organizations or who otherwise violates this section sh all be guilty
1696-of a misdemeanor and upon conviction thereof shall be fined an
1697-amount equal to double the amount of sales tax involved or
1698-incarcerated for not more than sixty (60) days or both;
1699-73. Sales of tickets for admission to events held by
1700-organizations exempt from taxation pursuant to the provisions of the
1701-Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
1702-organized for the purpose of supporting general hospitals licensed
1703-by the State Department of Health;
1704-74. Sales of tangible personal property or services:
1705-a. to a foundation which is exempt from taxation pursuant
1706-to the provisions of the Internal Revenue Code, 26
1707-U.S.C., Section 501(c)(3) and which raises tax-
1708-deductible contributions in support of a wide range of
1709-firearms-related public interest activities of the
1710-National Rifle Association of Ame rica and other
1711-
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1727-16
1728-17
1729-18
1730-19
1731-20
1732-21
1733-22
1734-23
1735-24
1736-
1737-organizations that defend and foster Second Amendment
1738-rights, and
1739-b. to or by a grassroots fundraising program for sales
1740-related to events to raise funds for a foundation
1741-meeting the qualifications of subparagraph a of this
1742-paragraph;
1743-75. Sales by an organization or entity which is exempt from
1744-taxation pursuant to the provisions of the Internal Revenue Code, 26
1745-U.S.C., Section 501(c)(3) which are related to a fundraising event
1746-sponsored by the organization or entity when the event does not
1747-exceed any five (5) consecutive days and when the sales are not in
1748-the organization's or the entity's regular course of business.
1749-Provided, the exemption provided in this paragraph shall be li mited
1750-to tickets sold for admittance to the fundraising event an d items
1751-which were donated to the organization or entity for sale at the
1752-event;
1753-76. Effective November 1, 2017, sales of tangible personal
1754-property or services to an organization which is ex empt from
1755-taxation pursuant to the provisions of the Internal Rev enue Code, 26
1756-U.S.C., Section 501(c)(3) and operates as a collaborative model
1757-which connects community agencies in one location to serve
1758-individuals and families affected by violence and wher e victims have
1759-access to services and advocacy at no cost to the victim;
1760-
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1777-17
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1779-19
1780-20
1781-21
1782-22
1783-23
1784-24
1785-
1786-77. Effective July 1, 2018, sales of tangible personal property
1787-or services to or by an association which is exempt from taxation
1788-pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
1789-Section 501(c)(19) and which is known as the Nati onal Guard
1790-Association of Oklahoma;
1791-78. Effective July 1, 2018, sales of tangible personal property
1792-or services to or by an association which is exempt from taxation
1793-pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
1794-Section 501(c)(4) and which is known as the Marine Corps League of
1795-Oklahoma;
1796-79. Sales of tangible personal property or services to the
1797-American Legion, whether the purchase is made by the entity
1798-chartered by the United States Congress or is an entity organized
1799-under the laws of this or another state pursuant to the authority of
1800-the national American Legion organization;
1801-80. Sales of tangible personal property or services to or by an
1802-organization which is:
1803-a. exempt from taxation pursuant to the provisions of the
1804-Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
1805-b. verified with a letter from the MIT Fab Foundation as
1806-an official member of the Fab Lab Network in
1807-compliance with the Fab Charter, and
1808-c. able to provide documenta tion that its primary and
1809-principal purpose is t o provide community access to
1810-
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1822-12
1823-13
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1825-15
1826-16
1827-17
1828-18
1829-19
1830-20
1831-21
1832-22
1833-23
1834-24
1835-
1836-advanced 21st century manufacturing and digital
1837-fabrication tools for science, technology,
1838-engineering, art, and math (STEAM) learning skills,
1839-developing inventions, creating and sustaining
1840-businesses, and producing personaliz ed products;
1841-81. Effective November 1, 2021, sales of tangible personal
1842-property or services used solely for construction and remodeling
1843-projects to an organization which is exempt from taxation pursuant
1844-to the provisions of the Internal Revenue Code, 26 U.S.C., Section
1845-501(c)(3), and which meets the following requirements:
1846-a. its primary purpose is to construct or remodel and
1847-sell affordable housing and provide homeownership
1848-education to residents of Oklahom a that have an income
1849-that is below one hundred percent (100%) of the Family
1850-Median Income guidelines as defined by the U.S.
1851-Department of Housing and Urban Development,
1852-b. it conducts its activities in a manner that serves
1853-public or charitable purposes, r ather than commercial
1854-purposes,
1855-c. it receives funding and revenue and charges fees in a
1856-manner that does not incentivize it or its employees
1857-to act other than in the best interests of its
1858-clients, and
1859-
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1872-13
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1874-15
1875-16
1876-17
1877-18
1878-19
1879-20
1880-21
1881-22
1882-23
1883-24
1884-
1885-d. it compensates its employees in a manner that does not
1886-incentivize employees to act other than in t he best
1887-interests of its clients;
1888-82. Effective November 1, 2021, sales of tangible personal
1889-property or services to a nonprofit entity, organized pursuant to
1890-Oklahoma law before January 1, 2022, exempt from federal income
1891-taxation pursuant to Section 501 (c) of the Internal Revenue Code of
1892-1986, as amended, the principal functions of which are to provide
1893-assistance to natural persons following a disaster, with program
1894-emphasis on repair or restoration to sing le-family residential
1895-dwellings or the construct ion of a replacement single-family
1896-residential dwelling. As used in this paragraph, "disaster" means
1897-damage to property with or without accompanying injury to persons
1898-from heavy rain, high winds, tornadic wi nds, drought, wildfire,
1899-snow, ice, geologic dist urbances, explosions, chemical accidents or
1900-spills, and other events causing damage to property on a large
1901-scale. For purposes of this paragraph, an entity that expended at
1902-least seventy-five percent (75%) o f its funds on the restoration to
1903-single-family housing following a disaster including related general
1904-and administrative expenses, shall be eligible for the exemption
1905-authorized by this paragraph;
1906-83. Effective November 1, 2021, through December 31, 2024 ,
1907-sales of tangible personal property or service s to a museum that:
1908-
1909-ENGR. H. A. to ENGR. S. B. NO. 406 Page 39 1
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1911-3
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1913-5
1914-6
1915-7
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1917-9
1918-10
1919-11
1920-12
1921-13
1922-14
1923-15
1924-16
1925-17
1926-18
1927-19
1928-20
1929-21
1930-22
1931-23
1932-24
1933-
1934-a. operates as a part of an organization which is exempt
1935-from taxation pursuant to the provisions of the
1936-Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
1937-b. is not accredited by the Am erican Alliance of Museums,
1938-and
1939-c. operates on an annual budget of less than One Million
1940-Dollars ($1,000,000. 00);
1941-84. Until July 1, 2022, sales of tangible personal property or
1942-services for use in a clinical practice or medical facility operated
1943-by an organization which is exempt from taxation pursuant to the
1944-provisions of the Internal Revenue Code of the Unit ed States, 26
1945-U.S.C., Section 501(c)(3), and which has entered into a joint
1946-operating agreement with the University Hospitals Trust created
1947-pursuant to Section 3224 of Title 63 of the Oklahoma Stat utes. The
1948-exemption provided by this paragraph shall be li mited to the
1949-purchase of tangible personal property and services for use in
1950-clinical practices or medical facilities acquired or leased by the
1951-organization from the University Hospitals Authority, University
1952-Hospitals Trust, or the University of Oklahoma o n or after June 1,
1953-2021; and
1954-85. Sales of tangible personal property or services t o a
1955-nonprofit entity, organized pursuant to Oklahoma law before Ja nuary
1956-1, 2019, exempt from federal income taxati on pursuant to Section
1957-501(c) of the Internal Revenue Code of 1986, as amended, the
1958-
1959-ENGR. H. A. to ENGR. S. B. NO. 406 Page 40 1
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1961-3
1962-4
1963-5
1964-6
1965-7
1966-8
1967-9
1968-10
1969-11
1970-12
1971-13
1972-14
1973-15
1974-16
1975-17
1976-18
1977-19
1978-20
1979-21
1980-22
1981-23
1982-24
1983-
1984-principal functions of which are to provide assistance to natural
1985-persons following a disaster, with program emphasis on rep air or
1986-restoration to single-family residential dwellings or the
1987-construction of a replacement single -family residential dwelling.
1988-For purposes of this paragraph, an entity operated exclusi vely for
1989-charitable and educational purposes through the coordinat ion of
1990-volunteers for the disaster recovery of h omes (as derived from Part
1991-III, Statement of Program Servic es, of Internal Revenue Service Form
1992-990) and offers its services free of charge to disaster survivors
1993-statewide who are low income with no or limite d means of recovery on
1994-their own for the restora tion to single-family housing following a
1995-disaster including related general and administrative expenses,
1996-shall be eligible for the exemption authorized by this paragraph.
1997-The exemption provided by this para graph shall only be applicable to
1998-sales made on or after the effective date of this act July 1, 2022.
1999-As used in this paragraph, "disaster" means damage to property with
2000-or without accompanying injury to persons from heavy rain, high
2001-winds, tornadic winds , drought, wildfire, snow, ice, geologic
2002-disturbances, explosions, chemical accidents or spills, and other
2003-events causing damage to property on a large scale;
2004-86. Sales of tangible personal pr operty or services to an
2005-organization which is exempt from taxation pursuant to the
2006-provisions of the Internal Revenue Code, 26 U.S.C., Section
2007-501(c)(3), the principal functions of w hich are to prevent child
2008-
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2011-3
2012-4
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2015-7
2016-8
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2018-10
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2020-12
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2022-14
2023-15
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2025-17
2026-18
2027-19
2028-20
2029-21
2030-22
2031-23
2032-24
2033-
2034-abuse and neglect through education, treatment, and advocacy, and
2035-operates a facility that offers comprehensive community-based
2036-services for abused or negle cted children from birth through
2037-eighteen (18) years of age . To be eligible for the exemption
2038-provided by this paragraph, the organization shall provide the
2039-following documentation to the Oklaho ma Tax Commission:
2040-a. articles of incorporation,
2041-b. organizational by-laws, and
2042-c. a notarized letter from the president or chairman of
2043-the organization stating the services provided by the
2044-organization; and
2045-87. Sales of tangible personal property or services to or by an
2046-organization in this state which:
2047-a. is exempt from taxation pursuant to the p rovisions of
2048-the Internal Revenue Code, 26 U.S.C., Section
2049-501(c)(3), and
2050-b. provides documentation to the Oklahoma Tax Commission
2051-showing the organization 's principal purpose is to
2052-provide school supplies or articles of clothing for
2053-underserved students a ttending grades pre-K through 12
2054-at public schools in this state.
2055-The exemption provided by this paragraph shall include
2056-materials, supplies, and equipment used in the construc tion or
2057-improvement of buildings and other struc tures owned by the
2058-
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2061-3
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2063-5
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2068-10
2069-11
2070-12
2071-13
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2074-16
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2076-18
2077-19
2078-20
2079-21
2080-22
2081-23
2082-24
2083-
2084-organization and operated in pursuit of th e organization's primary
2085-and principal purpose. The exemption shall apply to sales to the
2086-organization and to sales to any person with whom the or ganization
2087-has duly entered into a construction contract, necessary for
2088-carrying out the contract or to any subcontracto r to the
2089-construction contract.
2090-SECTION 2. AMENDATORY 68 O.S. 2021, Section 1357, as
2091-amended by Section 1, Cha pter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
2092-Section 1357), is amended to read as follo ws:
2093-Section 1357. Exemptions – General.
2094-There are hereby specifi cally exempted from the tax levied by
2095-the Oklahoma Sales Tax Code:
2096-1. Transportation of school pupils to and from elementary
2097-schools or high schools in motor or other vehicles;
2098-2. Transportation of persons where the fare of each person does
2099-not exceed One Dollar ($1.00), or local transportatio n of persons
2100-within the corporate limits of a municipality except by taxicabs;
2101-3. Sales for resale to persons engaged in the bu siness of
2102-reselling the articles purchased, whether within or without the
2103-state, provided that such sales to residents of this s tate are made
2104-to persons to whom sales tax permits have been issued as provided in
2105-the Oklahoma Sales Tax Code. This exemption shall not apply to the
2106-sales of articles made to persons holding permits when such perso ns
2107-purchase items for their use and whic h they are not regularly
2108-
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2111-3
2112-4
2113-5
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2116-8
2117-9
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2119-11
2120-12
2121-13
2122-14
2123-15
2124-16
2125-17
2126-18
2127-19
2128-20
2129-21
2130-22
2131-23
2132-24
2133-
2134-engaged in the business of reselling; neither shall this exemption
2135-apply to sales of tangible personal property to peddlers, solicitors
2136-and other salespersons who do not have an established p lace of
2137-business and a sales tax permit. The exemption provided by this
2138-paragraph shall apply to sales of motor fuel or diesel fuel to a
2139-Group Five vendor, but the use of such motor fuel or diesel fuel by
2140-the Group Five vendor shall not be exempt from the tax levied by the
2141-Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
2142-is exempt from sales tax when the motor fuel is for shipment outside
2143-this state and consumed by a common carrier by rail in the conduct
2144-of its business. The sales tax s hall apply to the purchase of motor
2145-fuel or diesel fuel in Oklahoma by a common carrier by rail when
2146-such motor fuel is purchased for fueling, within this state, of any
2147-locomotive or other motorized flanged wheel equipment;
2148-4. Sales of advertising space i n newspapers and periodicals;
2149-5. Sales of programs relating to sporting and entertainment
2150-events, and sales of advertising on billboards (including signage,
2151-posters, panels, marquees, or on other similar surfaces, whether
2152-indoors or outdoors) or in progra ms relating to sporting and
2153-entertainment events, and sales of any advertising, to be displayed
2154-at or in connection with a sporting event, via the Internet,
2155-electronic display devices or through public address or broadcast
2156-systems. The exemption authorize d by this paragraph shall be
2157-effective for all sales made on or after January 1, 2001;
2158-
2159-ENGR. H. A. to ENGR. S. B. NO. 406 Page 44 1
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2161-3
2162-4
2163-5
2164-6
2165-7
2166-8
2167-9
2168-10
2169-11
2170-12
2171-13
2172-14
2173-15
2174-16
2175-17
2176-18
2177-19
2178-20
2179-21
2180-22
2181-23
2182-24
2183-
2184-6. Sales of any advertising, other than the advertising
2185-described by paragraph 5 of this section, via the Internet,
2186-electronic display devices or through the electronic media including
2187-radio, public address o r broadcast systems, television (whether
2188-through closed circuit broadcasting systems or otherwise), and cable
2189-and satellite television, and the servicing of any advertising
2190-devices;
2191-7. Eggs, feed, supplies, machiner y, and equipment purchased by
2192-persons regularly engaged in the business of raising worms, fish,
2193-any insect, or any other form of terrestrial or aquatic animal life
2194-and used for the purpose of raising same for marketing. This
2195-exemption shall only be grante d and extended to the purchaser when
2196-the items are to be used and in fact are used in the raising of
2197-animal life as set out above. Each purchaser shall certify, in
2198-writing, on the invoice or sales ticket retained by the vendor that
2199-the purchaser is regula rly engaged in the business of raising s uch
2200-animal life and that the items purchased will be used only in such
2201-business. The vendor shall certify to the Oklahoma Tax Co mmission
2202-that the price of the items has been reduced to grant the full
2203-benefit of the exemption. Violation hereof by the purc haser or
2204-vendor shall be a misdemeanor;
2205-8. Sale of natural or artificial gas and electricity, and
2206-associated delivery or transmi ssion services, when sold exclusively
2207-for residential use. Provided, this exemption sh all not apply to
2208-
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2233-
2234-any sales tax levied by a city or town, or a county or any other
2235-jurisdiction in this state;
2236-9. In addition to the exemptions authorized by Section 135 7.6
2237-of this title, sales of drugs sold pursuant to a prescription
2238-written for the treat ment of human beings by a person license d to
2239-prescribe the drugs, and sales of insulin and medical oxygen.
2240-Provided, this exemption shall not apply to over-the-counter drugs;
2241-10. Transfers of title or possession of empty, partially
2242-filled, or filled retu rnable oil and chemical drums to any per son
2243-who is not regularly engaged in the business of selling, reselling
2244-or otherwise transferring empty, partially filled or filled
2245-returnable oil drums;
2246-11. Sales of one-way utensils, paper napkins, paper cups,
2247-disposable hot containers, and other one-way carry out materials to
2248-a vendor of meals or beverages;
2249-12. Sales of food or food products for home consumption which
2250-are purchased in whole or in part with coupons issued pursuant to
2251-the federal food stamp program as authorized by Sections 2011
2252-through 2029 of Title 7 of the United States Code, as to that
2253-portion purchased with such coupons. The exemption provided for
2254-such sales shall be inapplicable to such sales upon the effective
2255-date of any federal law that rem oves the requirement of the
2256-exemption as a condition for participation by the state in the
2257-federal food stamp program;
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2283-
2284-13. Sales of food or food products, or any equ ipment or
2285-supplies used in the preparation of the food or food products to or
2286-by an organization which:
2287-a. is exempt from taxation pursuant to the provisions of
2288-Section 501(c)(3) of the Internal Revenue Code, 26
2289-U.S.C., Section 501(c)(3), and which provid es and
2290-delivers prepared meals for home consumption to
2291-elderly or homebound persons as part of a program
2292-commonly known as "Meals on Wheels" or "Mobile Meals",
2293-or
2294-b. is exempt from taxation pursuant to the provisions of
2295-Section 501(c)(3) of the Internal R evenue Code, 26
2296-U.S.C., Section 501(c)(3), and which receives federal
2297-funding pursuant to th e Older Americans Act of 1965,
2298-as amended, for the purpose of providing nutrition
2299-programs for the care and benefit of elderly persons;
2300-14. a. Sales of tangible pe rsonal property or services to or
2301-by organizations which are exempt from taxation
2302-pursuant to the provisions of Section 501(c)(3) of the
2303-Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
2304-and:
2305-(1) are primarily involved in the collection and
2306-distribution of food and other household products
2307-to other organizations that facilitate the
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2331-23
2332-24
2333-
2334-distribution of such products to the needy and
2335-such distributee organizations are exempt from
2336-taxation pursuant to the provisions of Section
2337-501(c)(3) of the Internal Revenue Code, 26
2338-U.S.C., Section 501(c)(3), or
2339-(2) facilitate the distribution of such products to
2340-the needy.
2341-b. Sales made in the course of business for profit or
2342-savings, competing with other persons engaged in the
2343-same or similar business shall not be exempt under
2344-this paragraph.
2345-c. The exemption provided by this paragraph shall include
2346-sales of tangible personal property or taxable
2347-services consumed or incorporated in the construction
2348-of a facility placed in service during calendar year
2349-2023. The exemption shall include sales and taxable
2350-services to the organization and to any person,
2351-entity, contractor, or subcontractor with whom the
2352-organization has duly entered into a construction
2353-contract necessary for carrying out the contract. For
2354-sales tax paid on purchases that would otherwise be
2355-exempt pursuant to this subparagraph but occurred
2356-before the effective date of this act, the Tax
2357-Commission shall make refunds to the purchasers in the
2358-
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2383-
2384-full amount of the sales tax paid, as documented by
2385-the purchaser and veri fied by the Tax Commission;
2386-15. Sales of tangible personal property or services to
2387-children's homes which are located on church-owned property and are
2388-operated by organizations exempt from taxation pursuant to the
2389-provisions of the Internal Revenue Code, 26 U.S.C., Section
2390-501(c)(3);
2391-16. Sales of computers, data processing equipment, related
2392-peripherals, and telephone, telegraph or telecommunications service
2393-and equipment for use in a qualified aircraft maintenance or
2394-manufacturing facility. For purposes of this paragraph, "qualified
2395-aircraft maintenance or manufacturing facility" means a new or
2396-expanding facility primarily engaged in aircraft repair, building,
2397-or rebuilding whether or not on a factory basis, whose total cost of
2398-construction exceeds the sum of Five Million Dollars ($5,000,000.00)
2399-and which employs at least two hundred fifty (250) new full-time-
2400-equivalent employees, as certified by the Oklahoma Employment
2401-Security Commission, upon completion of the facility. In order to
2402-qualify for the exemption provided for by this paragraph, the cost
2403-of the items purchased by the qualified aircra ft maintenance or
2404-manufacturing facility shall equal or exceed the sum of Two Millio n
2405-Dollars ($2,000,000.00);
2406-17. Sales of tangible personal property consumed or
2407-incorporated in the construction or expansion of a qualified
2408-
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2429-21
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2431-23
2432-24
2433-
2434-aircraft maintenance or manufac turing facility as defined in
2435-paragraph 16 of this section. For purposes of this paragraph, sales
2436-made to a contractor or subcontractor that has previously entered
2437-into a contractual relationship with a qualified aircraft
2438-maintenance or manufacturing faci lity for construction or expansion
2439-of such a facility shall be considered sales made to a qualified
2440-aircraft maintenance or manufacturing facility;
2441-18. Sales of the following telecommunications services:
2442-a. Interstate and International "800 service". "800
2443-service" means a "telecommunications service" that
2444-allows a caller to dial a toll-free number without
2445-incurring a charge for the call. The service is
2446-typically marketed under the name "800", "855", "866",
2447-"877" and "888" toll-free calling, and any subse quent
2448-numbers designated by the Federal Communications
2449-Commission,
2450-b. Interstate and International "900 service". "900
2451-service" means an inbound toll "telecommunications
2452-service" purchased by a subscriber that allows the
2453-subscriber's customers to call in to the subscriber's
2454-prerecorded announcemen t or live service. "900
2455-service" does not include the charge for: collection
2456-services provided by the seller of the
2457-"telecommunications services" to the subscriber, or
2458-
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2481-23
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2483-
2484-service or product sold by the subscriber to the
2485-subscriber's customer. The service is typically
2486-marketed under the name "900" service, and any
2487-subsequent numbers designated by the Federal
2488-Communications Commission,
2489-c. Interstate and International "private communications
2490-service". "Private communications service" means a
2491-"telecommunications service" that entitles the
2492-customer to exclusive or priority use of a
2493-communications channel or group of channels between or
2494-among termination points, regardless of the manner in
2495-which such channel or channels a re connected, and
2496-includes switching capaci ty, extension lines, stations
2497-and any other associated services that are provided in
2498-connection with the use of such channel or channels,
2499-d. "Value-added nonvoice data service". "Value-added
2500-nonvoice data service " means a service that otherwise
2501-meets the definition of "telecommunications services"
2502-in which computer processing applications are used to
2503-act on the form, content, code or protocol of the
2504-information or data primarily for a purpose other than
2505-transmission, conveyance, or routing,
2506-e. Interstate and International telecommunications
2507-service which is:
2508-
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2533-
2534-(1) rendered by a company for private use within its
2535-organization, or
2536-(2) used, allocated or distributed by a company to
2537-its affiliated group,
2538-f. Regulatory assessments and charges including charges
2539-to fund the Oklahoma Universal Service Fund, the
2540-Oklahoma Lifeline Fund and the Oklahoma High Cost
2541-Fund, and
2542-g. Telecommunications nonre curring charges including but
2543-not limited to the installation, connection, chang e,
2544-or initiation of telecommunications se rvices which are
2545-not associated with a retail consumer sale;
2546-19. Sales of railroad track spikes manufactured and sold for
2547-use in this state in the construction or repair of railroad tracks,
2548-switches, sidings, and turnouts;
2549-20. Sales of aircraft and aircraft parts provided such sales
2550-occur at a qualified aircraft maintenance facility. As used in this
2551-paragraph, "qualified aircraft maint enance facility" means a
2552-facility operated by an air common carrier including one or more
2553-component overhaul support buildings or structures in an area owned,
2554-leased, or controlled by the air common carrier, at which there were
2555-employed at least two thousa nd (2,000) full-time-equivalent
2556-employees in the preceding year as certified by the Oklahoma
2557-Employment Security Commission and which is primarily related to the
2558-
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2571-13
2572-14
2573-15
2574-16
2575-17
2576-18
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2578-20
2579-21
2580-22
2581-23
2582-24
2583-
2584-fabrication, repair, alteration, modification, refurbishing,
2585-maintenance, building, or rebuilding of commercial aircraft or
2586-aircraft parts used in air common carriage. For p urposes of this
2587-paragraph, "air common carrier" shall also include members of an
2588-affiliated group as defined by Section 1504 of the Internal Revenue
2589-Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
2590-machinery, tools, supplies, equipment , and related tangible personal
2591-property and services used or consumed in the repair, remodeling, or
2592-maintenance of aircraft, aircraft engines or aircraft component
2593-parts which occur at a qualified aircraft maintenance facility;
2594-21. Sales of machinery and equi pment purchased and used by
2595-persons and establishments primarily engaged in computer services
2596-and data processing:
2597-a. as defined under Industrial Group Numbers 7372 and
2598-7373 of the Standard Industrial Classification (SIC)
2599-Manual, latest version, which deri ve at least fifty
2600-percent (50%) of their annual gross revenues from the
2601-sale of a product or service to an out-of-state buyer
2602-or consumer, and
2603-b. as defined under Industrial Gr oup Number 7374 of the
2604-SIC Manual, latest version, which derive at least
2605-eighty percent (80%) of their annual gross revenues
2606-from the sale of a product or service to an out-of-
2607-state buyer or consumer.
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2630-22
2631-23
2632-24
2633-
2634-Eligibility for the exemption set out in this paragraph shall be
2635-established, subject to review by the Tax Commission, by annually
2636-filing an affidavit with the Tax Commission stating that the
2637-facility so qualifies and such information as required by the Tax
2638-Commission. For purposes of determining whether annu al gross
2639-revenues are derived from sales to out-of-state buyers or consumers,
2640-all sales to the federal government shall be considered to be to an
2641-out-of-state buyer or consumer;
2642-22. Sales of prosthetic devices to an individual for use by
2643-such individual. For purposes of this paragraph, "prosthetic
2644-device" shall have the same meaning as provided in Section 1357.6 of
2645-this title, but shall not include corrective eye glasses, contact
2646-lenses, or hearing aids;
2647-23. Sales of tangible personal property or service s to a motion
2648-picture or television production company to be used or consumed in
2649-connection with an eligible production. For purposes of this
2650-paragraph, "eligible production" means a documentary, special, music
2651-video or a television commercial or televisi on program that will
2652-serve as a pilot for or be a segment of an ongoing dramatic or
2653-situation comedy series filmed or taped for network or national or
2654-regional syndication or a feature-length motion picture intended for
2655-theatrical release or for network or national or regional
2656-syndication or broadcast. The provisions of this paragrap h shall
2657-apply to sales occurring on or after July 1, 1996. In order to
2658-
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2670-12
2671-13
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2674-16
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2678-20
2679-21
2680-22
2681-23
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2683-
2684-qualify for the exemption, the motion picture or television
2685-production company shall file any documentat ion and information
2686-required to be submitted pursuant to rules promulgated by th e Tax
2687-Commission;
2688-24. Sales of diesel fuel sold for consumption by commercial
2689-vessels, barges and other commercial watercraft;
2690-25. Sales of tangible personal property or serv ices to tax-
2691-exempt independent nonprofit biomedical research foundations that
2692-provide educational programs for Oklahoma science students and
2693-teachers and to tax-exempt independent nonprofit community blood
2694-banks headquartered in this state;
2695-26. Effective May 6, 1992, sales of wireless telecommunications
2696-equipment to a vendor who subs equently transfers the equipment at no
2697-charge or for a discounted charge to a consumer as part of a
2698-promotional package or as an inducement to commence or continue a
2699-contract for wireless telecommunications services;
2700-27. Effective January 1, 1991, leases of rail transportation
2701-cars to haul coal to coal-fired plants located in this state which
2702-generate electric power;
2703-28. Beginning July 1, 2005, sales of aircraft engine repairs ,
2704-modification, and replacement parts, sales of aircraft frame repairs
2705-and modification, aircraft interior modification, and paint, and
2706-sales of services employed in the repair, modification, and
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2732-
2733-replacement of parts of aircraft engines, aircraft frame and
2734-interior repair and modification, and paint;
2735-29. Sales of materials and suppli es to the owner or operator of
2736-a ship, motor vessel, or barge that is used in interstate or
2737-international commerce if the materials and supplies:
2738-a. are loaded on the ship, mot or vessel, or barge and
2739-used in the maintenance and operation of the ship,
2740-motor vessel, or barge, or
2741-b. enter into and become component parts of the ship,
2742-motor vessel, or barge;
2743-30. Sales of tangible personal property made at estate sales at
2744-which such property is offered for sale on the premises of the
2745-former residence of the dece dent by a person who is not required to
2746-be licensed pursuant to the Transient Merchant Licensing Act, or who
2747-is not otherwise required to obtain a sales tax permit for the sale
2748-of such property pursuant to the provisions of Section 1364 of this
2749-title; provided:
2750-a. such sale or event may not be held for a period
2751-exceeding three (3) consecutive days,
2752-b. the sale must be conducted within six (6) months of
2753-the date of death of the d ecedent, and
2754-c. the exemption allowed by this paragraph shall not be
2755-allowed for property that was not part of the
2756-decedent's estate;
2757-
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2770-13
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2773-16
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2778-21
2779-22
2780-23
2781-24
2782-
2783-31. Beginning January 1, 2004, sales of electricity and
2784-associated delivery and transmission services, when sold exclusiv ely
2785-for use by an oil and gas operator for reservoir dewatering projects
2786-and associated operations commencing on or after July 1, 2003, in
2787-which the initial water-to-oil ratio is greater than or equal to
2788-five-to-one water-to-oil, and such oil and gas devel opment projects
2789-have been classified by the Corporation Commission as a reservoi r
2790-dewatering unit;
2791-32. Sales of prewritten computer software that is delivered
2792-electronically. For purposes of this paragraph, "delivered
2793-electronically" means delivered to t he purchaser by means other than
2794-tangible storage media;
2795-33. Sales of modular d welling units when built at a production
2796-facility and moved in whole or in parts, to be assembled on-site,
2797-and permanently affixed to the real property and used for
2798-residential or commercial purposes. The exemption provided by this
2799-paragraph shall equal f orty-five percent (45%) of the total sales
2800-price of the modular dwelling unit. For p urposes of this paragraph,
2801-"modular dwelling unit" means a structure that is not subject to the
2802-motor vehicle excise tax imposed pursuant to Section 2103 of this
2803-title;
2804-34. Sales of tangible personal property or services to:
2805-a. persons who are residents o f Oklahoma and have been
2806-honorably discharged from active service in any branch
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2832-
2833-of the Armed Forces of the United States or Oklahoma
2834-National Guard and who have been certi fied by the
2835-United States Department of Ve terans Affairs or its
2836-successor to be in re ceipt of disability compensation
2837-at the one-hundred-percent rate and the disability
2838-shall be permanent and have been sustained through
2839-military action or accident or resul ting from disease
2840-contracted while in such active service and registered
2841-with the veterans registry created by the Oklahoma
2842-Department of Veterans Affairs; provided, that if th e
2843-veteran received the sales tax exemption prior to
2844-November 1, 2020, he or she shall be required to
2845-register with the vet erans registry prior to July 1,
2846-2023, in order to remain qualified, or
2847-b. the surviving spouse of the person in subparagraph a
2848-of this paragraph if the person is deceased and the
2849-spouse has not remarried and the surviving spouse of a
2850-person who is determined by the United States
2851-Department of Defense or any branch of the United
2852-States military to have died while in the line of duty
2853-if the spouse has not remarried. Sales for the
2854-benefit of an eligible person to a spouse of the
2855-eligible person or to a member of the household in
2856-which the eligible per son resides and who is
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2881-24
2882-
2883-authorized to make purchases on the person's behalf,
2884-when such eligible person is not present at the sale,
2885-shall also be exempt for purpose s of this paragraph.
2886-The Oklahoma Tax Commission s hall issue a separate
2887-exemption card to a s pouse of an eligible person or to
2888-a member of the household in which the eligible person
2889-resides who is authorized to make purchases on the
2890-person's behalf, if requested by the eligible person.
2891-Sales qualifying for the exemption authorized by this
2892-paragraph shall not exceed Twenty-five Thousand
2893-Dollars ($25,000.00) per year per individual while the
2894-disabled veteran is living. Sales qualifying for the
2895-exemption authorized by this paragraph shall not
2896-exceed One Thousand Dollars ($1,000.00) per year for
2897-an unremarried surviving spouse. Upon request of the
2898-Tax Commission, a person asserting or cla iming the
2899-exemption authorized by this paragraph shall provide a
2900-statement, executed under oath, that the total sales
2901-amounts for which the exemption is applicable h ave not
2902-exceeded Twenty-five Thousand Dollars ($25,000.00) per
2903-year per living disabled vet eran or One Thousand
2904-Dollars ($1,000.00) per year for an unremarried
2905-surviving spouse. If the amount of such exempt sales
2906-exceeds such amount, the sales tax in exce ss of the
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2933-authorized amount shall be treated as a direct sales
2934-tax liability and may be rec overed by the Tax
2935-Commission in the same manner provided by law for
2936-other taxes including penalty and interest. The Tax
2937-Commission shall promulgate any rules necess ary to
2938-implement the provisions of this paragraph, which
2939-shall include rules providing for the disclosure of
2940-information about persons eligible for the exemption
2941-authorized in this paragraph to the Oklahoma
2942-Department of Veteran's Veterans Affairs, as
2943-authorized in Section 205 of this title;
2944-35. Sales of electricity to the operator, specifically
2945-designated by the Corporation Commission, of a spacing unit or lease
2946-from which oil is produced or attempted to be produced using
2947-enhanced recovery methods including, but not limited to, increased
2948-pressure in a producing formation through the use of water or
2949-saltwater if the electrical usage is associated with and necessary
2950-for the operation of equipment required to inject or circulate
2951-fluids in a producing formatio n for the purpose of forcing oil or
2952-petroleum into a wellbore for eventual recovery and production f rom
2953-the wellhead. In order to be eligible for the sales tax exempti on
2954-authorized by this paragraph, the total content of oil recovered
2955-after the use of enh anced recovery methods shall not exceed one
2956-percent (1%) by volume. The exemption authorized by thi s paragraph
2957-
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2983-shall be applicable only to the state sales tax rate and shall not
2984-be applicable to any county or municipal sales tax rate;
2985-36. Sales of intras tate charter and tour bus transportation.
2986-As used in this paragraph, "intrastate charter and tour b us
2987-transportation" means the transportation of persons from one
2988-location in this state to another location in this state in a motor
2989-vehicle which has been c onstructed in such a manner that it may
2990-lawfully carry more than eighteen persons, and which is ordi narily
2991-used or rented to carry persons for compensation. Provid ed, this
2992-exemption shall not apply to regularly scheduled bus transportation
2993-for the general public;
2994-37. Sales of vitamins, minerals, and dietary supplements by a
2995-licensed chiropractor to a p erson who is the patient of such
2996-chiropractor at the physical loc ation where the chiropractor
2997-provides chiropractic care or services to such patient. The
2998-provisions of this paragraph shall not be applicable to any drug,
2999-medicine, or substance for which a prescription by a licensed
3000-physician is required;
3001-38. Sales of goods, wares, merchandise, tangible personal
3002-property, machinery, and equipment to a web sea rch portal located in
3003-this state which derives at least eighty percent (80%) of its annual
3004-gross revenue from the sale of a product or service to an out-of-
3005-state buyer or consumer. For purposes of this paragraph, "web
3006-search portal" means an establishment classified under NAICS code
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3033-519130 which operates websites that use a search engine to generate
3034-and maintain extensive databases of Internet addresses and content
3035-in an easily searchable format;
3036-39. Sales of tangible personal property consumed or
3037-incorporated in the construction or expansion of a facility for a
3038-corporation organized under Section 437 et seq. of Title 18 of the
3039-Oklahoma Statutes as a rural electric coo perative. For purposes of
3040-this paragraph, sales made to a contractor or subcontractor th at has
3041-previously entered into a contractual relationship with a rural
3042-electric cooperative for cons truction or expansion of a facility
3043-shall be considered sales made to a rural electric cooperative;
3044-40. Sales of tangible personal property or services to a
3045-business primarily engaged in the repair of consumer electronic
3046-goods including, but not limited t o, cell phones, compact disc
3047-players, personal computers, MP3 pla yers, digital devices for the
3048-storage and retrieval of information through hard-wired or wireless
3049-computer or Internet connections, if the devices are sold to the
3050-business by the original man ufacturer of such devices and the
3051-devices are repaired, refitted or refurbished for sale by the entity
3052-qualifying for the exemption authorized by this parag raph directly
3053-to retail consumers or if the devices are sold to another business
3054-entity for sale to retail consumers;
3055-41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
3056-or leases of rolling stock when sold or leased by the manufacturer,
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3083-regardless of whether the purchaser is a public services corporation
3084-engaged in business as a common carri er of property or passengers by
3085-railway, for use or consumption by a common carrier directly in the
3086-rendition of public service. For purposes of this parag raph,
3087-"rolling stock" means locomotives, autocars, and railroad cars and
3088-"sales or leases" includes railroad car maintenance and retrofitting
3089-of railroad cars for th eir further use only on the railways; and
3090-42. Sales of gold, silver, platinum, palladium, or other
3091-bullion items such as coins and bars and legal tender of any nation,
3092-which legal tender is s old according to its value as precious metal
3093-or as an investment. As used in the paragraph, "bullion" means any
3094-precious metal including, but not limited to, gold, silver,
3095-platinum, and palladium, that is in such a state or condition that
3096-its value depends upon its precious metal content and not its form.
3097-The exemption authorized by this paragraph shall not apply to
3098-fabricated metals that have been process ed or manufactured for
3099-artistic use or as jewelry.
3100-SECTION 3. This act shall become effective November 1, 2023."
3101-
3102-
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3129-Passed the House of Representatives the 25th day of April, 2023.
3130-
3131-
3132-
3133-
3134-
3135-Presiding Officer of the House of
3136- Representatives
3137-
3138-
3139-Passed the Senate the ____ day of _______ ___, 2023.
3140-
3141-
3142-
3143-
3144-
3145-Presiding Officer of the Senate
3146-
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3173-ENGROSSED SENATE
3174-BILL NO. 406 By: Rader of the Senate
3175-
3176- and
3177-
3178- Boatman of the House
3179-
3180-
3181-
3182-
3183-An Act relating to sales tax; amending 68 O.S. 2021,
3184-Section 1356, as last amend ed by Section 1, Chapter
3185-394, O.S.L. 2022 (68 O.S. Supp. 2 022, Section 1356),
3186-which relates to exemptions for governmental and
3187-nonprofit entities; providing exemptio n for certain
3188-organization providing services to abused a nd
3189-neglected children; requiring submission of certain
3190-documentation; providing exemption fo r certain
3191-organization providing clothing or supplies to
3192-certain students; updating statutory language; and
3193-providing an effective date.
3194-
3195-
3196-
3197-
3198-
3199-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
3200-SECTION 4. AMENDATORY 68 O.S. 2021, Section 1 356, as
3201-last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
3202-2022, Section 1356), is amended to read as follows:
3203-Section 1356. Exemptions - Governmental and nonp rofit entities.
3204-There are hereby specif ically exempted from the tax levied by
3205-Section 1350 et seq. of this title:
3206-1. Sale of tangible personal property or services to the United
3207-States government or to the State of Oklahoma this state, any
3208-political subdivision of this state, or any agency of a political
3209-subdivision of this state; provided, all sales to contractors in
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3236100 connection with the performance of any contract with the United
3237101 States government, State of Oklahoma this state, or any of its
3238102 political subdivisions shall not be exempted from th e tax levied by
3239103 Section 1350 et seq. of this title, except as hereinafter provided;
3240104 2. Sales of property to agents appointed by or under contract
3241105 with agencies or instrumental ities of the United States government
3242106 if ownership and possession of such proper ty transfers immediately
3243107 to the United States government;
3244108 3. Sales of property to agents appointed by or under contract
3245109 with a political subdivision of this state if the sale of such
3246110 property is associated with the development of a qualified federal
3247111 facility, as provided in the Oklahoma Federal Facilities Development
3248112 Act, and if ownership and possession of such property transfers
3249113 immediately to the political subdivision or the state;
3250114 4. Sales made directly by county , district, or state fair
3251115 authorities of this state, upon the premises of the fair authority,
3252116 for the sole benefit of the fair authority or sales of admission
3253117 tickets to such fairs or fair events at any location in t he state
3254118 authorized by county, district , or state fair authorities; provided,
3255119 the exemption provided by this paragraph for admission tickets to
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3256147 fair events shall apply only to any portion of the admission price
3257148 that is retained by or distributed to the fai r authority. As used
3258-in this paragraph, “fair event” shall be limited to an eve nt held on
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149+in this paragraph, "fair event" shall be limited to an eve nt held on
3285150 the premises of the fair authority in conjunction with and during
3286151 the time period of a county, district, or state fair;
3287152 5. Sale of food in cafeterias or lunchrooms of elementary
3288153 schools, high schools, coll eges, or universities which are operate d
3289154 primarily for teachers and pupils and are not operated primarily for
3290155 the public or for profit;
3291156 6. Dues paid to fraternal, religious, civic, charitable, or
3292157 educational societies or organizations by regular members t hereof,
3293158 provided, such societies or org anizations operate under what is
3294159 commonly termed the lodge plan or system, and provided such
3295160 societies or organizations do not operate for a profit which inures
3296161 to the benefit of any individual member or members there of to the
3297162 exclusion of other members an d dues paid monthly or annually to
3298163 privately owned scientific and educational libraries by members
3299164 sharing the use of services rendered by such libraries with students
3300165 interested in the study of geology, petroleum eng ineering, or
3301166 related subjects;
3302167 7. Sale of tangible personal property or services to or by
3303168 churches, except sales made in the course of business for profit or
3304169 savings, competing with other persons engaged in the sam e, or a
3305170 similar business or sale of tangi ble personal property or services
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3306198 by an organization exempt from federal income tax pursuant to
3307199 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
3308200 made on behalf of or at the request of a church or churches if the
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3335201 sale of such property is conducted not more than once each calen dar
3336202 year for a period not to exceed three (3) days by the organization
3337203 and proceeds from the sale of such property are used by the church
3338204 or churches or by the organization for charitable purposes;
3339205 8. The amount of proceeds received from the sale of admis sion
3340206 tickets which is separately stated on the ticket of admission for
3341207 the repayment of money borrowed by any accredited state-supported
3342208 college or university or any public tru st of which a county in this
3343209 state is the beneficiary, for the purpose of constr ucting or
3344210 enlarging any facility to be used for the staging of an athletic
3345211 event, a theatrical production, or any other form of entertainment,
3346212 edification, or cultural cultivat ion to which entry is gained with a
3347213 paid admission ticket. Such facilities incl ude, but are not limited
3348214 to, athletic fields, athletic stadiums, field houses, amphitheaters,
3349215 and theaters. To be eligible for this sales tax exemption, the
3350216 amount separately stated on the admission ticket shall be a
3351217 surcharge which is imposed, collected , and used for the sole purpose
3352218 of servicing or aiding in the servicing of debt incurred by the
3353219 college or university to effect the capital improvements
3354220 hereinbefore described;
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3355248 9. Sales of tangible personal property or services to the
3356249 council organizations or similar state supervisory organizations of
3357250 the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire
3358251 USA;
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3385252 10. Sale of tangible personal propert y or services to any
3386253 county, municipality, rural water district, public school district,
3387254 city-county library system, the institutions of The Oklahoma State
3388255 System of Higher Education, the Grand River Dam Authority, the
3389256 Northeast Oklahoma Public Facilities Authority, the Oklahoma
3390257 Municipal Power Authority, City of Tul sa-Rogers County Port
3391258 Authority, Muskogee City-County Port Authority, the Oklahoma
3392259 Department of Veterans Affairs, the Broken Bow Economic Development
3393260 Authority, Ardmore Development Authority, D urant Industrial
3394261 Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
3395262 Master Conservancy District, Arbuckle Master Conservancy District,
3396263 Fort Cobb Master Conservancy District, Foss Reservoir Master
3397264 Conservancy District, Mountain Park Master Conse rvancy District,
3398265 Waurika Lake Master Conservancy District and the Office of
3399266 Management and Enterpr ise Services only when carrying out a public
3400267 construction contract on behalf of the Oklahoma Department of
3401268 Veterans Affairs, and effective July 1, 2022, the Uni versity
3402269 Hospitals Trust, or to any person with whom any of the above-named
3403270 subdivisions or agenc ies of this state has duly entered into a
3404271 public contract pursuant to law, necessary for carrying out such
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3405299 public contract or to any subcontractor to such a pub lic contract.
3406300 Any person making purchases on behalf of such su bdivision or agency
3407301 of this state shall certify, in writing, on the copy of the invoice
3408302 or sales ticket to be retained by the vendor that the purchases are
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3435303 made for and on behalf of such subdiv ision or agency of this state
3436304 and set out the name of such publ ic subdivision or agency . Any
3437305 person who wrongfully or erroneously certifies that purchases are
3438306 for any of the above-named subdivisions or agencies of this state or
3439307 who otherwise violates this section shall be guilty of a misdemeanor
3440308 and upon conviction t hereof shall be fined an amount e qual to double
3441309 the amount of sales tax involved or incarcerated for not more than
3442310 sixty (60) days or both;
3443311 11. Sales of tangible personal property or services to private
3444312 institutions of higher education and private element ary and
3445313 secondary institutions of education accredited by the State
3446314 Department of Education or registered by the State Board of
3447315 Education for purposes of participating in federal programs or
3448316 accredited as defined by the Oklahoma State Regents for Higher
3449317 Education which are exempt from tax ation pursuant to the provisions
3450318 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including
3451319 materials, supplies, and equipment used in the construction and
3452320 improvement of buildings and other structures owned by th e
3453321 institutions and operated for e ducational purposes.
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3454349 Any person, firm, agency, or entity making purchases on behalf
3455350 of any institution, agency, or subdivision in this state, shall
3456351 certify in writing, on the copy of the invoice or sales ticket the
3457352 nature of the purchases, and violation of this paragraph shall be a
3458353 misdemeanor as set forth in paragraph 10 of this section;
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3485354 12. Tuition and educational fees paid to private institutions
3486355 of higher education and private elementary and secondary
3487356 institutions of education accredited by the State D epartment of
3488357 Education or registered by the State Board of Education for purposes
3489358 of participating in federal programs or accredited as defined by the
3490359 Oklahoma State Regents for Higher Education which are exempt from
3491360 taxation pursuant to the provisions of the Internal Revenue Code, 26
3492361 U.S.C., Section 501(c)(3);
3493362 13. a. Sales of tangible personal property made by:
3494363 (1) a public school,
3495364 (2) a private school offering ins truction for grade
3496365 levels kindergarten through twelfth grade ,
3497366 (3) a public school district,
3498367 (4) a public or private school board,
3499368 (5) a public or private school student group or
3500369 organization,
3501370 (6) a parent-teacher association or organization
3502371 other than as specified in subparagraph b of this
3503372 paragraph, or
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3504400 (7) public or private school personnel for p urposes
3505401 of raising funds for the benefit of a public or
3506402 private school, public school district, public or
3507403 private school board, or public or private school
3508404 student group or organization, or
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3535405 b. Sales of tangible personal pro perty made by or to
3536406 nonprofit parent-teacher associations or organizations
3537407 exempt from taxation pursuant to the provisions of the
3538408 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
3539409 nonprofit local public or private school foundations
3540410 which solicit money or property in the name of any
3541411 public or private school or public school district.
3542412 The exemption provided by this paragraph for sales made by a
3543413 public or private school shall be limited to those pu blic or private
3544414 schools accredited by the State Department of Education or
3545415 registered by the State Board of Education for purposes of
3546416 participating in federal programs. Sale of tangible personal
3547417 property in this paragraph shall include sale of admission t ickets
3548418 and concessions at athletic events;
3549419 14. Sales of tangible personal property by:
3550420 a. local 4-H clubs,
3551421 b. county, regional, or state 4-H councils,
3552422 c. county, regional, or state 4-H committees,
3553423 d. 4-H leader associations,
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3554451 e. county, regional, or state 4-H foundations, and
3555452 f. authorized 4-H camps and training c enters.
3556453 The exemption provided by this paragraph shall be limited to
3557454 sales for the purpose of raising funds for the benefit of such
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3584455 organizations. Sale of tangible personal property exempted by this
3585456 paragraph shall include sale of admission tickets;
3586457 15. The first Seventy-five Thousand Dollars ($75,000.00) each
3587458 year from sale of tickets and concessions at athletic eve nts by each
3588459 organization exempt from taxation pursuant to the provisions of the
3589460 Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
3590461 16. Sales of tangible personal property or services to any
3591462 person with whom the Oklahoma Tourism and Recreation Department has
3592463 entered into a public contract and which is necessary for carrying
3593464 out such contract to assist the Department in the development and
3594465 production of advertising, promotion , publicity, and public
3595466 relations programs;
3596467 17. Sales of tangible personal proper ty or services to fire
3597468 departments organized pursuant to Section 592 of Title 18 of th e
3598469 Oklahoma Statutes which items are to be used for the purposes of the
3599470 fire department. Any person making purchases on behalf of any such
3600471 fire department shall certify, in writing, on the copy of the
3601472 invoice or sales ticket to be retained by the vendor th at the
3602473 purchases are made for and on behalf of such fir e department and set
3603474 out the name of such fire department. Any person who wrongfully or
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3604502 erroneously certifies that the purchases are for any such fire
3605503 department or who otherwise violates the provisio ns of this section
3606504 shall be deemed guilty of a misdemea nor and upon conviction thereof,
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3633505 shall be fined an amount equal to double the amount of sales tax
3634506 involved or incarcerated for not more than sixty (60) days, or both;
3635507 18. Complimentary or free tickets for admission to places of
3636508 amusement, sports, entertai nment, exhibition, display, or other
3637509 recreational events or activities which are issued through a box
3638510 office or other entity which is operated by a state institution of
3639511 higher education with institution al employees or by a municipality
3640512 with municipal emplo yees;
3641513 19. The first Fifteen Thou sand Dollars ($15,000.00) each year
3642514 from sales of tangible personal property by fi re departments
3643515 organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
3644516 for the purposes of raising funds for the benefit of the f ire
3645517 department. Fire departments selling tangible personal property for
3646518 the purposes of raising funds shall be lim ited to no more than six
3647519 (6) days each year to raise such funds in order to receive the
3648520 exemption granted by this paragraph;
3649521 20. Sales of tangible personal property or servi ces to any Boys
3650522 & Girls Clubs of America affiliate in this state which is not
3651523 affiliated with the Salvation Army and which is exempt from taxation
3652524 pursuant to the provis ions of the Internal Revenue Code, 26 U.S.C.,
3653525 Section 501(c)(3);
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3654553 21. Sales of tangible personal property or services to any
3655554 organization, which takes court-adjudicated juveniles for purposes
3656555 of rehabilitation, and which is exempt from taxation pursuant to the
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3683556 provisions of the Internal Revenue Code, 26 U.S.C ., Section
3684557 501(c)(3), provided th at at least fifty percent (50%) of the
3685558 juveniles served by such organization are c ourt adjudicated and the
3686559 organization receives state funds in an amount less than ten p ercent
3687560 (10%) of the annual budget of the organization;
3688561 22. Sales of tangible personal property or services to:
3689562 a. any health center as defined in Section 254b of Title
3690563 42 of the United States Code,
3691564 b. any clinic receiving disbursements of state monies
3692565 from the Indigent Health Care Revolving Fund pursuant
3693566 to the provisions of Section 66 of T itle 56 of the
3694567 Oklahoma Statutes,
3695568 c. any community-based health center which meets all of
3696569 the following criteria:
3697570 (1) provides primary care services at no cost to the
3698571 recipient, and
3699572 (2) is exempt from taxation pursuant to t he
3700573 provisions of Section 501(c)(3 ) of the Internal
3701574 Revenue Code, 26 U.S.C., Section 501(c)(3), and
3702575 d. any community mental health center as defined in
3703576 Section 3-302 of Title 43A of the Oklahoma Statutes ;
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3704604 23. Dues or fees including free or complimentary du es or fees
3705605 which have a value equ ivalent to the charge that could have
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3732606 otherwise been made, to YMCAs, YWCAs, or municipally-owned
3733607 recreation centers for the use of facilities and programs;
3734608 24. The first Fifteen Thousand Dollars ($15,000.00) each year
3735609 from sales of tangible personal prope rty or services to or by a
3736610 cultural organization established to sponsor and promot e
3737611 educational, charitable, and cultural events for disadvantaged
3738612 children, and which orga nization is exempt from taxation pursuant to
3739613 the provisions of the Internal Revenue C ode, 26 U.S.C., Section
3740614 501(c)(3);
3741615 25. Sales of tangible personal property or ser vices to museums
3742616 or other entities which have been accredited by the American
3743617 Association Alliance of Museums. Any person making purchases o n
3744618 behalf of any such museum or other entity shall certify, in writing,
3745619 on the copy of the invoice or sales ticket to be reta ined by the
3746620 vendor that the purchases are made for and on behalf of such museum
3747621 or other entity and set out the name of such museum or other entity.
3748622 Any person who wrongfully or erroneously certifies that the
3749623 purchases are for any such museum or other ent ity or who otherwise
3750624 violates the provisions of this paragraph shall be deemed guilty of
3751625 a misdemeanor and, upon conviction thereof, shall be fined an amount
3752626 equal to double the amount of sales tax involved or incarcerated for
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3753654 not more than sixty (60) days , or by both such fine and
3754655 incarceration;
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3781656 26. Sales of tickets for admission by any museum accredited by
3782657 the American Association Alliance of Museums. In order to be
3783658 eligible for the exemption provided by this paragraph, an amount
3784659 equivalent to the amount of the tax which would otherwise be
3785660 required to be collected pursuant to the provis ions of Section 1350
3786661 et seq. of this title shal l be separately stated o n the admission
3787662 ticket and shall be collected and used for the sole purpose of
3788663 servicing or aiding in th e servicing of debt incurred by the museum
3789664 to effect the construction, enlarging , or renovation of any facility
3790665 to be used for entertainment, edification , or cultural cultivation
3791666 to which entry is gained with a paid admission ticket;
3792667 27. Sales of tangible personal property or services occurring
3793-on or after June 1, 1995, to children ’s homes which are supported or
668+on or after June 1, 1995, to children 's homes which are supported or
3794669 sponsored by one or more churches, members of which serve as
3795670 trustees of the home;
3796671 28. Sales of tangible personal property or services to the
3797672 organization known as the Disabled American Veterans, Department of
3798673 Oklahoma, Inc., and subordinate chapters thereof;
3799674 29. Sales of tangible personal proper ty or services to youth
3800675 camps which are supported or sponsored by one or more churches,
3801676 members of which serve as trustees of the organization;
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3802704 30. a. Until July 1, 2022, transfer of tangible personal
3803705 property made pursuant to Sect ion 3226 of Title 63 of
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3830706 the Oklahoma Statutes by the University Hospitals
3831707 Trust, and
3832708 b. Effective July 1, 2022, transfer of tang ible personal
3833709 property or services to or by:
3834710 (1) the University Hospitals Trust created pursuant
3835711 to Section 3224 of Title 63 of the Oklahoma
3836712 Statutes, or
3837713 (2) nonprofit entities which are exempt from taxation
3838714 pursuant to the provisions of the Internal
3839715 Revenue Code of the United States, 26 U.S.C.,
3840716 Section 501(c)(3), which have entered into a
3841717 joint operating agreement with the Unive rsity
3842718 Hospitals Trust;
3843719 31. Sales of tangible personal property or services to a
3844720 municipality, county, or school district pursua nt to a lease or
3845721 lease-purchase agreement executed between the vendor and a
3846722 municipality, county, or school district. A copy of the lease or
3847723 lease-purchase agreement shall be retained by the vendor;
3848724 32. Sales of tangible personal property or services to any
3849725 spaceport user, as defined in the Oklahoma Space Industry
3850726 Development Act;
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3851754 33. The sale, use, storage, consumption , or distribution in
3852755 this state, whether by the importer, exporter, or another person, of
3853756 any satellite or any associated launch vehicle including components
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3880757 of, and parts and motors for, any such satellite or launch v ehicle,
3881758 imported or caused to be imported into this state for the purpos e of
3882759 export by means of launching into space. This exemption provided by
3883760 this paragraph shall not be a ffected by:
3884761 a. the destruction in whole or in part of the satellite
3885762 or launch vehicle,
3886763 b. the failure of a launch to occur or be successful, or
3887764 c. the absence of any transfer or title to, or possession
3888765 of, the satellite or launch vehicle after launch;
3889766 34. The sale, lease, use, storage, consumption, or distribution
3890767 in this state of any space facility, space propulsion system or
3891768 space vehicle, satellite, or station of any kind possessing space
3892769 flight capacity including components thereof;
3893770 35. The sale, lease, use, storage, consumption, or distribution
3894771 in this state of tangible personal property, placed on or used
3895772 aboard any space facility, space propulsion system or space vehicle,
3896773 satellite, or station possessing space flight capacity, which is
3897774 launched into space, irrespective of whether such tangible property
3898775 is returned to this state for subsequent use, storage, or
3899776 consumption in any manner;
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3900804 36. The sale, lease, use, storage, consumption, or distribution
3901805 in this state of tangible personal property meeting the definition
3902-of “section 38 property” as defined in Sections 48(a)(1)(A) and
806+of "section 38 property" as defined in Sections 48(a)(1)(A) and
3903807 (B)(i) of the Internal Revenue Code of 1986, tha t is an integral
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3930808 part of and used primarily in support of space flight; however,
3931809 section 38 property used in support of space fl ight shall not
3932810 include general office equipment, any boat, mobile home, motor
3933811 vehicle, or other vehicle of a class or type requi red to be
3934812 registered, licensed, titled, or documented in this state or by the
3935813 United States government, or any other property no t specifically
3936-suited to supporting space activity. The term “in support of space
3937-flight”, for purposes of this paragraph, mean s the altering,
814+suited to supporting space activity. The term "in support of space
815+flight", for purposes of this paragraph, mean s the altering,
3938816 monitoring, controlling, regulating, adjusting, servicing, or
3939817 repairing of any space facility, space propulsion systems or space
3940818 vehicle, satellite, or station possessing space flight capacity
3941819 including the components thereof;
3942820 37. The purchase or lease of machinery and equipment for use at
3943821 a fixed location in this state, which is used exclusively in the
3944822 manufacturing, processing, compounding, or producing of any space
3945823 facility, space propulsion system or space vehicle, satellite, or
3946824 station of any kind possessing sp ace flight capacity. Provided, the
3947825 exemption provided for in this paragraph shall not be allowed unle ss
3948826 the purchaser or lessee signs an affidavit stating that the item or
3949827 items to be exempted are for the exclusive use designated herein.
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3950855 Any person furnishing a false affidavit to the vendor for the
3951856 purpose of evading payment of any tax imposed by Section 1354 of
3952857 this title shall be subject to the penalties provided by law . As
3953-used in this paragra ph, “machinery and equipment” means “section 38
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3980-property” as defined in Sections 48(a)(1)(A) and (B)(i) of the
858+used in this paragraph, "machinery and equipment" means "section 38
859+property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
3981860 Internal Revenue Code of 1986, which is used as an integral part of
3982861 the manufacturing, processing, compounding, or producing of items of
3983862 tangible personal property. Such term includes parts and
3984863 accessories only to the extent that the exemption thereof is
3985864 consistent with the provisions of this paragraph;
3986865 38. The amount of a surcharge or any other amount which is
3987866 separately stated on an admission ticket which is imposed,
3988867 collected, and used for the sole pur pose of constructing,
3989868 remodeling, or enlarging facilities of a public trust having a
3990869 municipality or county as its sole beneficiary;
3991870 39. Sales of tangible personal property or servi ces which are
3992871 directly used in or for the benefit of a state park in this state,
3993872 which are made to an organization which is exempt from taxation
3994873 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
3995874 Section 501(c)(3) and which is organized pr imarily for the purpose
3996875 of supporting one or more state parks located in t his state;
3997876 40. The sale, lease, or use of parking privileges by an
3998877 institution of The Oklahoma State System of Higher Education;
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3999905 41. Sales of tangible personal property or services for use on
4000906 campus or school construction projects for the benefit of
4001907 institutions of The Oklahoma State System of Higher Education,
4002908 private institutions of higher education a ccredited by the Oklahoma
4003909 State Regents for Higher Education, or any public school or school
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4030910 district when such projects are financed by or through the use of
4031911 nonprofit entities which are exempt from taxation pursuant to the
4032912 provisions of the Internal Reve nue Code, 26 U.S.C., Section
4033913 501(c)(3);
4034914 42. Sales of tangible personal property or services by an
4035915 organization which is exempt from taxation pursuant to t he
4036916 provisions of the Internal Revenue Code, 26 U.S.C., Section
4037917 501(c)(3), in the course of conducting a national championship
4038918 sports event, but only if all or a portion of the paymen t in
4039919 exchange therefor would qualify as the receipt of a qualified
4040920 sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
4041921 Section 513(i). Sales exempted pursuant to this paragraph shall be
4042922 exempt from all Oklahoma sales, use, excise , and gross receipts
4043923 taxes;
4044924 43. Sales of tangible personal property or services to o r by an
4045925 organization which:
4046926 a. is exempt from taxation pursuant to the provisions of
4047927 the Internal Revenue Code, 26 U.S.C., Section
4048928 501(c)(3),
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4049956 b. is affiliated with a comprehensive un iversity within
4050957 The Oklahoma State System of Higher Education, and
4051958 c. has been organized primarily for the purpose of
4052959 providing education and teacher training and
4053960 conducting events relating to robotics;
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4080961 44. The first Fifteen Thousand Dollars ($15,000.00) each year
4081962 from sales of tangible personal property to or by youth athletic
4082963 teams which are part of an athletic organization exempt from
4083964 taxation pursuant to the provisions of the Internal Revenue Code, 26
4084965 U.S.C., Section 501(c)(4), for the purposes of rais ing funds for the
4085966 benefit of the team;
4086967 45. Sales of tickets for admission to a collegiate athletic
4087968 event that is held in a facility owned or operated by a municipality
4088969 or a public trust of which the municipality is the sole beneficiary
4089970 and that actually determines or is part of a tourname nt or
4090971 tournament process for determining a conference tournament
4091972 championship, a conference championship, or a national championship;
4092973 46. Sales of tangible personal property or services to or by an
4093974 organization which is e xempt from taxation pursuant to th e
4094975 provisions of the Internal Revenue Cod e, 26 U.S.C., Section
4095976 501(c)(3) and is operating the Oklahoma City National Memorial and
4096977 Museum, an affiliate of the National Park System;
4097978 47. Sales of tangible personal property or services to
4098979 organizations which a re exempt from federal taxation pursuant to the
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40991007 provisions of Section 501(c)(3) of the Internal Revenue Code, 26
41001008 U.S.C., Section 501(c)(3), t he memberships of which are limited to
41011009 honorably discharged veterans, and which f urnish financial support
4102-to area veterans’ organizations to be used for th e purpose of
1010+to area veterans' organizations to be used for th e purpose of
41031011 constructing a memorial or museum;
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41301012 48. Sales of tangible personal property or services on or after
41311013 January 1, 2003, to an organization which is exempt from taxation
41321014 pursuant to the provisions of the Int ernal Revenue Code, 26 U.S.C.,
41331015 Section 501(c)(3) that is expending monies received from a private
41341016 foundation grant in conjunction with expend itures of local sales tax
41351017 revenue to construct a local public library;
41361018 49. Sales of tangible personal property or services to a state
41371019 that borders this st ate or any political subdivision of that state,
41381020 but only to the extent that the other state or politi cal subdivision
41391021 exempts or does not impose a tax on similar sales of items to thi s
41401022 state or a political subdivision of this state;
41411023 50. Effective July 1, 2005, sales of tangible personal property
41421024 or services to the Career Technology Student Organizations u nder the
41431025 direction and supervision of the Oklahoma Department of Career and
41441026 Technology Education;
41451027 51. Sales of tangible personal property to a public trus t
41461028 having either a single city, town or county or multiple cities,
41471029 towns or counties, or combination thereof as beneficiary or
41481030 beneficiaries or a nonprofit organization which is exemp t from
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41491058 taxation pursuant to the pro visions of the Internal Revenue Code, 2 6
41501059 U.S.C., Section 501(c)(3) for the purpose of constructing
41511060 improvements to or expanding a hospital o r nursing home owned and
41521061 operated by any such public trust or nonprofit entity pr ior to July
41531062 1, 2008, in counties wi th a population of less than one hundre d
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41801063 thousand (100,000) persons, according to the most recent Federal
4181-Decennial Census. As used in this paragraph, “constructing
4182-improvements to or expanding” shall not mean any expense fo r routine
1064+Decennial Census. As used in this paragraph, "constructing
1065+improvements to or expanding" shall not mean any expens e for routine
41831066 maintenance or genera l repairs and shall require a project c ost of
41841067 at least One Hundred Thousand Dollars ($100,000.00). For purposes
41851068 of this paragraph, sales ma de to a contractor or subcontractor that
41861069 enters into a contractual relationship w ith a public trust or
41871070 nonprofit entity as described by this paragraph shal l be considered
41881071 sales made to the public trust or nonprofit entity. The exemption
41891072 authorized by this paragraph shall be administered in the form of a
41901073 refund from the sales tax reven ues apportioned pursuant to Section
41911074 1353 of this title and the vendor shal l be required to collect the
41921075 sales tax otherwise applicable to the transaction. The purchaser
41931076 may apply for a refund of the sales tax paid in the manner
41941077 prescribed by this paragraph . Within thirty (30) days after th e end
41951078 of each fiscal year, any purchase r that is entitled to make
41961079 application for a refund based upon the exempt treatment authorized
41971080 by this paragraph may file an application for refund of the sales
41981081 taxes paid during suc h preceding fiscal year. The Tax Commission
1082+
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41991109 shall prescribe a form for pu rposes of making the application for
42001110 refund. The Tax Commission shall determine whether or not the t otal
42011111 amount of sales tax exemptions claimed by all purchasers is equal to
42021112 or less than Six Hundred Fifty Thousand Do llars ($650,000.00). If
42031113 such claims are less than or equal to that amount, the Tax
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42301114 Commission shall make refunds to the purchasers in the f ull amount
42311115 of the documented and verified sales tax amounts. If such claims by
42321116 all purchasers are in excess of Six Hundred Fifty Thousand Dollars
42331117 ($650,000.00), the Tax Commission shall determine the amount of each
4234-purchaser’s claim, the total amount of a ll claims by all purchasers,
4235-and the percentage each purchaser’s claim amount bears t o the total.
1118+purchaser's claim, the total amount of a ll claims by all purchasers,
1119+and the percentage each purchaser's claim amount bears to the total.
42361120 The resulting percentage determined for each purchaser s hall be
42371121 multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
42381122 determine the amount of ref undable sales tax to be paid to each
42391123 purchaser. The pro rata refund amount shall be the only method to
42401124 recover sales taxes paid during the preceding fisca l year and no
42411125 balance of any sales taxes paid on a pro rata basis shall be the
42421126 subject of any subsequ ent refund claim pursuant to this paragraph;
42431127 52. Effective July 1, 2006, sales o f tangible personal property
42441128 or services to any organization which assists , trains, educates, and
42451129 provides housing for physically and mentally handicapped persons and
42461130 which is exempt from taxation pursuant to the provisions of the
42471131 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
42481132 receives at least eighty-five percent (85%) of its annual budget
1133+
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42491160 from state or federal funds. In order to receive the benefit of the
42501161 exemption authorized by this paragraph, the taxpayer shall be
42511162 required to make payment of the applicable sales tax at the time of
42521163 sale to the vendor in the mann er otherwise required by law.
42531164 Notwithstanding any other provision of the Oklahoma Uniform Tax
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42801165 Procedure Code to the contrary, the taxpayer shall be authorized to
42811166 file a claim for refund of sales taxes paid that quali fy for the
42821167 exemption authorized by this paragraph for a period of one (1) year
42831168 after the date of the sale transaction. The taxpayer shall b e
42841169 required to provide documentation as may be prescribed by the
42851170 Oklahoma Tax Commission in support of the refund cla im. The total
42861171 amount of sales tax qual ifying for exempt treatment pursuant to this
42871172 paragraph shall not exceed One Hundred Seventy -five Thousand Dollars
42881173 ($175,000.00) each fiscal year. Claims for refund shall be
42891174 processed in the order in which such claims are received by the
42901175 Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
42911176 the total amount of refunds payable for a fiscal ye ar, such claim
42921177 shall be barred;
42931178 53. The first Two Thousand Dollars ($2,000.00) e ach year of
42941179 sales of tangible perso nal property or services to, by, or for the
42951180 benefit of a qualified neighborhood watch organization that is
42961181 endorsed or supported by or worki ng directly with a law enforcement
42971182 agency with jurisdiction in the area in which the neighborhood watch
4298-organization is located. As used in this paragraph , “qualified
4299-neighborhood watch organization” means an organization that is a
1183+organization is located. As used in this paragraph , "qualified
1184+
1185+SB406 HFLR Page 24
1186+BOLD FACE denotes Committee Amendments. 1
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1211+neighborhood watch organization" means an organization that is a
43001212 not-for-profit corporation under the laws of the State of Oklahoma
43011213 this state that was created to help p revent criminal activity in an
43021214 area through community involvement and inte raction with local law
43031215 enforcement and which is one of the first two thousand organizations
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43301216 which makes application to the Oklahoma Tax Commission for the
43311217 exemption after March 29, 2 006;
43321218 54. Sales of tangible personal property to a nonprofit
43331219 organization, exempt from taxation pursuant to the provisions of the
43341220 Internal Revenue Code, 26 U.S.C., Section 501 (c)(3), organized
43351221 primarily for the purpose of providing services to homeless per sons
43361222 during the day and located in a metropoli tan area with a population
43371223 in excess of five hundred thousand (500,000) persons according to
43381224 the latest Federal Decennial Census . The exemption authorized by
43391225 this paragraph shall be applicable to sales of tang ible personal
43401226 property to a qualified entity o ccurring on or after January 1,
43411227 2005;
43421228 55. Sales of tangible personal property or services to or by an
43431229 organization which is exem pt from taxation pursuant to the
43441230 provisions of the Internal Revenue Code, 26 U.S. C., Section
43451231 501(c)(3) for events the principal purpose of which is to prov ide
43461232 funding for the preservation of wetlands and habitat for wild ducks;
43471233 56. Sales of tangible perso nal property or services to or by an
43481234 organization which is exempt from taxation p ursuant to the
1235+
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1237+BOLD FACE denotes Committee Amendments. 1
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43491262 provisions of the Internal Reve nue Code, 26 U.S.C., Section
43501263 501(c)(3) for events the principal purpose of which is to provide
43511264 funding for the preservation and c onservation of wild turkeys;
43521265 57. Sales of tangible personal property or services to an
43531266 organization which:
4354-
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43801267 a. is exempt from taxation pursuant to the prov isions of
43811268 the Internal Revenue Code, 26 U.S.C., Section
43821269 501(c)(3), and
43831270 b. is part of a network of com munity-based, autonomous
43841271 member organizations that meets the following
43851272 criteria:
43861273 (1) serves people with workplace disadvantages and
43871274 disabilities by providi ng job training and
43881275 employment services, as well as job placement
43891276 opportunities and post -employment support,
43901277 (2) has locations in the United States and at least
43911278 twenty other countrie s,
43921279 (3) collects donated clothing and household goods to
43931280 sell in retail stores and provides contract labor
43941281 services to business and government, and
43951282 (4) provides documentation t o the Oklahoma Tax
43961283 Commission that over seventy-five percent (75%)
43971284 of its revenues are channeled into employment,
1285+
1286+SB406 HFLR Page 26
1287+BOLD FACE denotes Committee Amendments. 1
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43981312 job training and placement programs, and other
43991313 critical community services;
44001314 58. Sales of tickets made on or after September 21, 2005, and
44011315 complimentary or free tickets for admission issued on or after
44021316 September 21, 2005, w hich have a value equivalent to the charge that
44031317 would have otherwise been made, for admission to a professional
4404-
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44301318 athletic event in which a team in the National Basketball
44311319 Association is a participant, which is held in a facility owned or
44321320 operated by a municipality, a county, or a public trust of which a
44331321 municipality or a county i s the sole beneficiary, and sales of
44341322 tickets made on or after July 1, 2007, and complimentary or free
44351323 tickets for admission issued on or after July 1, 2007, which have a
44361324 value equivalent to the charge that would have otherwise be en made,
44371325 for admission to a professional athletic event in which a team in
44381326 the National Hockey League is a participant, which is held in a
44391327 facility owned or operated by a municipality, a county, or a public
44401328 trust of which a municipality or a county is the sole beneficiary;
44411329 59. Sales of tickets for admission and complimentary or free
44421330 tickets for admission which have a value equival ent to the charge
44431331 that would have otherwise been made to a professional sporting event
44441332 involving ice hockey, baseball, basketbal l, football or arena
4445-football, or soccer. As used in this paragraph, “professional
4446-sporting event” means an organized athletic competition between
1333+football, or soccer. As used in this paragraph, "professional
1334+sporting event" means an organized athletic competition between
44471335 teams that are members of an organized league or association with
1336+
1337+SB406 HFLR Page 27
1338+BOLD FACE denotes Committee Amendments. 1
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44481363 centralized management, other than a natio nal league or national
44491364 association, that imposes requirements for participation in the
44501365 league upon the teams, the individual ath letes, or both, and which
44511366 uses a salary structure to compensate the athletes;
44521367 60. Sales of tickets for admission to an annual e vent sponsored
44531368 by an educational and charitable organization of women which is
4454-
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44801369 exempt from taxation pursuant to the provisions o f the Internal
44811370 Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
44821371 promoting volunteerism, developing the potentia l of women, and
44831372 improving the community through the effective action and leadership
44841373 of trained volunteers;
44851374 61. Sales of tangible personal property or services to an
44861375 organization, which is exempt from taxation pursuant to the
44871376 provisions of the Internal Rev enue Code, 26 U.S.C., Sectio n
44881377 501(c)(3), and which is itself a member of an organization which is
44891378 exempt from taxation pursuant to the provisions of the Internal
44901379 Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
44911380 organization is primarily engage d in advancing the purposes of its
44921381 member organizations through fundraising, public awareness, or other
44931382 efforts for the benefit of its member organizations, and if the
44941383 member organization is primarily engaged either in providing
44951384 educational services and pr ograms concerning health-related diseases
44961385 and conditions to individuals suffering from such health-related
44971386 diseases and conditio ns or their caregivers and family members or
1387+
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1389+BOLD FACE denotes Committee Amendments. 1
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44981414 support to such individuals, or in h ealth-related research as to
44991415 such diseases and conditions, or both. In order to qualify for the
45001416 exemption authorized by this paragraph, the member nonprofit
45011417 organization shall be required to provide proof to the Oklahoma Tax
45021418 Commission of its membership s tatus in the membership organization;
4503-
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45291419 62. Sales of tangible personal prope rty or services to or by an
4530-organization which is part of a national volunteer women’s service
1420+organization which is part of a national volunteer women's service
45311421 organization dedicated to promoting patriotism, preserving American
45321422 history, and securing better education for children and which has at
45331423 least 168,000 members in 3,000 chapters across the United States;
45341424 63. Sales of tangible personal property or services to or by a
45351425 YWCA or YMCA organization which is part of a national nonprofit
45361426 community service organization working to meet the health and social
45371427 service needs of its members across the United States;
45381428 64. Sales of tangible personal property or services to or by a
4539-veteran’s organization which is exempt from taxation pursuant to the
1429+veteran's organization which is exempt from taxation pursuant to the
45401430 provisions of the Internal Revenue Code, 26 U.S.C., Secti on
45411431 501(c)(19) and which is k nown as the Veterans of Foreign Wars of the
45421432 United States, Oklahoma Chapters;
45431433 65. Sales of boxes of food by a church or by an organization,
45441434 which is exempt from taxation pursuant t o the provisions of the
45451435 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) . To qualify
45461436 under the provisions of this paragraph, the organization must be
45471437 organized for the pri mary purpose of feeding needy individuals or to
1438+
1439+SB406 HFLR Page 29
1440+BOLD FACE denotes Committee Amendments. 1
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45481465 encourage volunteer service by re quiring such service in order to
45491466 purchase food. These boxes shall only con tain edible staple food
45501467 items;
45511468 66. Sales of tangible personal property or services to any
45521469 person with whom a church has duly entered into a construction
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45791470 contract, necessary for car rying out such contract or to any
45801471 subcontractor to such a construction contract;
45811472 67. Sales of tangible personal property or services used
45821473 exclusively for charitable or educat ional purposes, to or by an
45831474 organization which:
45841475 a. is exempt from taxation pursu ant to the provisions of
45851476 the Internal Revenue Co de, 26 U.S.C., Section
45861477 501(c)(3),
45871478 b. has filed a Not-for-Profit Certificate of
45881479 Incorporation in this state, and
45891480 c. is organized for the purpose of:
45901481 (1) providing training and education to
45911482 developmentally disabled individuals,
45921483 (2) educating the community ab out the rights,
45931484 abilities, and strengths of developmentally
45941485 disabled individuals, and
45951486 (3) promoting unity among developmentally disabled
45961487 individuals in their community and geographic
45971488 area;
1489+
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45981516 68. Sales of tangible personal property or services to any
45991517 organization which is a shelter for abused, neglected, or abandoned
46001518 children and which is exempt from taxation pursuant to the
46011519 provisions of the Internal Revenue Code, 26 U.S.C., Section
46021520 501(c)(3); provided, until July 1, 2008, such exemption shall apply
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46291521 only to eligible shelters for children from birth to age twelve (12)
46301522 and after July 1, 2008, such exemption shall apply to eligible
46311523 shelters for children from birth to age eighteen (18);
46321524 69. Sales of tangible personal property or services to a child
46331525 care center which is licensed pursuant to the Oklahoma Child Care
46341526 Facilities Licensing Act and which:
46351527 a. possesses a 3-star rating from the D epartment of Human
46361528 Services Reaching for the Stars Program or a national
46371529 accreditation, and
46381530 b. allows on-site universal prekinde rgarten education to
46391531 be provided to four-year-old children through a
46401532 contractual agreement with any public school or school
46411533 district.
46421534 For the purposes of this paragraph, sales made to any person,
46431535 firm, agency, or entity that has entered previously into a
46441536 contractual relationship with a child care center for construction
46451537 and improvement of buildings and other structures owned by the child
46461538 care center and operated for educational purposes shall be
46471539 considered sales made to a child care center. Any such person,
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46481567 firm, agency, or entity making purchases on behalf of a child care
46491568 center shall certify, in writing, on the copy of the invoic e or
46501569 sales ticket the nature of the purchase. Any such person, or person
46511570 acting on behalf of a firm, agency, or entity making purchases on
46521571 behalf of a child care center in violation of this paragraph shall
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46791572 be guilty of a misdemeanor and upon conviction th ereof shall be
46801573 fined an amount equal to double the amount of sales tax involved or
46811574 incarcerated for not more than sixty (60) day s or both;
46821575 70. a. Sales of tangible personal property to a service
46831576 organization of mothers who have children who are serving or who
46841577 have served in the military, which service organization is exempt
46851578 from taxation pursuant to the provisions of the Internal R evenue
46861579 Code, 26 U.S.C., Section 501(c)(19) and which is known as the Blue
46871580 Star Mothers of America, Inc. The exemption provided by this
46881581 paragraph shall only apply to the purchase of tangible personal
46891582 property actually sent to United States military personn el overseas
46901583 who are serving in a combat zone and not to any other tangible
46911584 personal property purchased by the organization. Provided, this
46921585 exemption shall not apply to any sales tax levied by a city, town,
46931586 county, or any other jurisdiction in this state.
46941587 b. The exemption authorized by this paragraph shall be
46951588 administered in the form of a refund from the sales
46961589 tax revenues apportioned p ursuant to Section 1353 of
46971590 this title, and the vendor shall be requ ired to
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46981618 collect the sales tax otherwise applicable to th e
46991619 transaction. The purchaser may apply for a refund of
47001620 the state sales tax paid in the manner prescribed by
47011621 this paragraph. Within sixty (60) days after the end
47021622 of each calendar quarter, any purchas er that is
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47291623 entitled to make application for a refund bas ed upon
47301624 the exempt treatment authorized by this paragraph may
47311625 file an application for refund of the state sales
47321626 taxes paid during suc h preceding calendar quarter.
47331627 The Tax Commission shall prescribe a form for purposes
47341628 of making the application for refund.
47351629 c. A purchaser who applies for a refund pursuant to this
47361630 paragraph shall certify that the items were actually
47371631 sent to military perso nnel overseas in a combat zone.
47381632 Any purchaser that applies for a refund for the
47391633 purchase of items that are not authorized for
47401634 exemption under this paragraph shall be subject to a
47411635 penalty in the amount of Five Hundred Dollars
47421636 ($500.00);
47431637 71. Sales of food and snack items to or by an organization
47441638 which is exempt from tax ation pursuant to the provisions of the
47451639 Internal Revenue Code, 26 U.S.C., Section 501(c)(3), whose primary
47461640 and principal purpose is providing funding for scholarships in the
47471641 medical field;
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47481669 72. Sales of tangible personal property or services for use
47491670 solely on construction projects for organizations which are exem pt
47501671 from taxation pursuant to the provisions of the Internal Revenue
47511672 Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
47521673 end-of-life care and access to hospice services to low-income
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47791674 individuals who live in a facility owned by the organization . The
47801675 exemption provided by this paragraph applies to sales to the
47811676 organization as well as to sales to any person with whom the
47821677 organization has duly entered into a construction contract,
47831678 necessary for carrying out such contract or to any subcontractor to
47841679 such a construction contract. Any person making purchases on behalf
47851680 of such organization shall certify, in writing, on the copy of the
47861681 invoice or sales ticket to be retained by the vendor that th e
47871682 purchases are made for and on behalf of such organization and set
47881683 out the name of such organization. Any person who wrongfully or
47891684 erroneously certifies that purchases are for any of the abo ve-named
47901685 organizations or who otherwise violates this section sh all be guilty
47911686 of a misdemeanor and upon conviction thereof shall be fined an
47921687 amount equal to double the amount of sales tax involved or
47931688 incarcerated for not more than sixty (60) days or both;
47941689 73. Sales of tickets for admission to events held by
47951690 organizations exempt from taxation pursuant to the provisions of the
47961691 Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
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47971719 organized for the purpose of supporting general hospitals licensed
47981720 by the State Department of Health;
47991721 74. Sales of tangible personal property or services:
48001722 a. to a foundation which is exempt from taxation pursuant
48011723 to the provisions of the Internal Revenue Code, 26
48021724 U.S.C., Section 501(c)(3) and which raises tax-
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48291725 deductible contributions in support of a wide range of
48301726 firearms-related public interest activities of the
48311727 National Rifle Association of Ame rica and other
48321728 organizations that defend and foster Second Amendment
48331729 rights, and
48341730 b. to or by a grassroots fundraising program for sal es
48351731 related to events to raise funds for a foundation
48361732 meeting the qualifications of subparagraph a of this
48371733 paragraph;
48381734 75. Sales by an organization or entity which is exempt from
48391735 taxation pursuant to the provisions of the Internal Revenue Code, 26
48401736 U.S.C., Section 501(c)(3) which are related to a fundraising event
48411737 sponsored by the organization or entity when the event does not
48421738 exceed any five (5) consecutive days and when the sales are not in
4843-the organization’s or the entity’s regular course of business.
1739+the organization's or the entity's regular course of business.
48441740 Provided, the exemption provided in this paragraph shall be li mited
48451741 to tickets sold for admittance to the fundraising event an d items
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48461769 which were donated to the organization or entity for sale at the
48471770 event;
48481771 76. Effective November 1, 2017, sales of tangible pe rsonal
48491772 property or services to an organization which is ex empt from
48501773 taxation pursuant to the provisions of the Internal Rev enue Code, 26
48511774 U.S.C., Section 501(c)(3) and operates as a collaborative model
48521775 which connects community agencies in one location to se rve
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48791776 individuals and families affected by violence and wher e victims have
48801777 access to services and advocacy at no cost to the victim;
48811778 77. Effective July 1, 2018, sales of tangible personal property
48821779 or services to or by an association which is exempt from tax ation
48831780 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
48841781 Section 501(c)(19) and which is known as the Nati onal Guard
48851782 Association of Oklahoma;
48861783 78. Effective July 1, 2018, sales of tangible personal property
48871784 or services to or by an associat ion which is exempt from taxation
48881785 pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
48891786 Section 501(c)(4) and which is known as the Marine Corps League of
48901787 Oklahoma;
48911788 79. Sales of tangible personal property or services to the
48921789 American Legion, whether the purchase is made by the entity
48931790 chartered by the United States Congress or is an entity organized
48941791 under the laws of this or another state pursuant to the authority of
48951792 the national American Legion organization;
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48961820 80. Sales of tangible personal pro perty or services to or by an
48971821 organization which is:
48981822 a. exempt from taxation pursuant to the provisions of the
48991823 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
49001824 b. verified with a letter from the MIT Fab Foundation as
49011825 an official member of the Fab Lab N etwork in
49021826 compliance with the Fab Charter, and
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49291827 c. able to provide documenta tion that its primary and
49301828 principal purpose is t o provide community access to
49311829 advanced 21st century manufacturing and digital
49321830 fabrication tools for science, technology,
49331831 engineering, art, and math (STEAM) learning skills,
49341832 developing inventions, creating and sustaining
49351833 businesses, and producing personaliz ed products;
49361834 81. Effective November 1, 2021, sales of tangible personal
49371835 property or services used solely for construction and remodel ing
49381836 projects to an organization which is exempt from taxation pursuant
49391837 to the provisions of the Internal Revenue Code, 26 U.S.C., Section
49401838 501(c)(3), and which meets the following requirements:
49411839 a. its primary purpose is to construct or remodel and
49421840 sell affordable housing and provide homeownership
49431841 education to residents of Oklahom a that have an income
49441842 that is below one hundred percent (100%) of the Family
1843+
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49451870 Median Income guidelines as defined by the U.S.
49461871 Department of Housing and Urban Development,
49471872 b. it conducts its activities in a manner that serves
49481873 public or charitable purposes, r ather than commercial
49491874 purposes,
49501875 c. it receives funding and revenue and charges fees in a
49511876 manner that does not incentivize it or its employees
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49781877 to act other than in the best interests of its
49791878 clients, and
49801879 d. it compensates its employees in a manner that does not
49811880 incentivize employees to act other than in t he best
49821881 interests of its clients;
49831882 82. Effective November 1, 2021, sales of tangible personal
49841883 property or services to a nonprofit ent ity, organized pursuant to
49851884 Oklahoma law before January 1, 2022, exempt from federal income
49861885 taxation pursuant to Section 501 (c) of the Internal Revenue Code of
49871886 1986, as amended, the principal functions of which are to provide
49881887 assistance to natural persons f ollowing a disaster, with program
49891888 emphasis on repair or restoration to sing le-family residential
49901889 dwellings or the construct ion of a replacement single-family
4991-residential dwelling. As used in this paragraph, “disaster” means
1890+residential dwelling. As used in this paragraph, "disaster" means
49921891 damage to property with or with out accompanying injury to persons
49931892 from heavy rain, high winds, tornadic wi nds, drought, wildfire,
49941893 snow, ice, geologic dist urbances, explosions, chemical accidents or
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49951921 spills, and other events causing damage to property on a large
49961922 scale. For purposes of this paragraph, an entity that expended at
49971923 least seventy-five percent (75%) o f its funds on the restoration to
49981924 single-family housing following a disaster including related general
49991925 and administrative expenses, shall be eligible for the exemption
50001926 authorized by this paragraph;
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50271927 83. Effective November 1, 2021, through December 31, 2024 ,
50281928 sales of tangible personal property or service s to a museum that:
50291929 a. operates as a part of an organization which is exempt
50301930 from taxation pursuant to the provisions of the
50311931 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
50321932 b. is not accredited by the Am erican Alliance of Museums,
50331933 and
50341934 c. operates on an annual budget of less than One Million
50351935 Dollars ($1,000,000. 00);
50361936 84. Until July 1, 2022, sales of tangible personal property or
50371937 services for use in a clinical practice or medical facility operated
50381938 by an organization which is exempt from taxation pursuant to the
50391939 provisions of the Internal Revenue Code of the Unit ed States, 26
50401940 U.S.C., Section 501(c)(3), and which has entered into a joint
50411941 operating agreement with the University Hospitals Trust created
50421942 pursuant to Section 3224 of Title 63 of the Oklahoma Stat utes. The
50431943 exemption provided by this paragraph shall be li mited to the
50441944 purchase of tangible personal property and services for use in
1945+
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50451972 clinical practices or medical facilities acquired or leased by the
50461973 organization from the University Hospitals Authority, University
50471974 Hospitals Trust, or the University of Oklahoma o n or after June 1,
50481975 2021; and
50491976 85. Sales of tangible personal property or services t o a
50501977 nonprofit entity, organized pursuant to Oklahoma law before Ja nuary
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50771978 1, 2019, exempt from federal income taxati on pursuant to Section
50781979 501(c) of the Internal Revenue Code of 1986, as amended, the
50791980 principal functions of which are to provide assistance to natural
50801981 persons following a disaster, with program emphasis on rep air or
50811982 restoration to single-family residential dwellings or the
50821983 construction of a replacement single -family residential dwelling.
50831984 For purposes of this paragraph, an entity operated exclusi vely for
50841985 charitable and educational purposes through the coordinat ion of
50851986 volunteers for the disaster recovery of h omes (as derived from Part
50861987 III, Statement of Program Servic es, of Internal Revenue Service Form
50871988 990) and offers its services free of charge to disaster survivors
50881989 statewide who are low income with no or limite d means of recovery on
50891990 their own for the restora tion to single-family housing following a
50901991 disaster including related general and administrative expenses,
50911992 shall be eligible for the exemption authorized by this paragraph.
50921993 The exemption provided by this para graph shall only be applicable to
50931994 sales made on or after the effective date of this act July 1, 2022.
5094-As used in this paragraph, “disaster” means damage to property with
1995+As used in this paragraph, "disaster" means damage to property with
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50952023 or without accompanying injury to persons from heavy rain, high
50962024 winds, tornadic winds , drought, wildfire, snow, ice, geologic
50972025 disturbances, explosions, chemical accidents or spills, and other
50982026 events causing damage to property on a large scale;
50992027 86. Sales of tangible personal pr operty or services to an
51002028 organization which is exempt from taxation pursuant to the
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51272029 provisions of the Internal Revenue Code, 26 U.S.C., Section
51282030 501(c)(3), the principal functions of w hich are to prevent child
51292031 abuse and neglect through education, treatment, and advocacy, and
51302032 operates a facility that offers comprehensive community-based
51312033 services for abused or negle cted children from birth through
51322034 eighteen (18) years of age . To be eligible for the exemption
51332035 provided by this paragraph , the organization shall provide the
51342036 following documentation to the Oklaho ma Tax Commission:
51352037 a. articles of incorporation,
51362038 b. organizational by-laws, and
51372039 c. a notarized letter from the president or chairman of
51382040 the organization stating the services prov ided by the
51392041 organization; and
51402042 87. Sales of tangible personal property or services to or by an
51412043 organization in this state which:
51422044 a. is exempt from taxation pursuant to the p rovisions of
51432045 the Internal Revenue Code, 26 U.S.C., Section
51442046 501(c)(3), and
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51452074 b. provides documentation to the Oklahoma Tax Commission
5146-showing the organization’s principal purpose is to
2075+showing the organization 's principal purpose is to
51472076 provide school supplies or articles of clothing for
51482077 underserved students a ttending grades pre-K through 12
51492078 at public schools in this state.
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51762079 The exemption provided by this paragraph shall include
51772080 materials, supplies, and equipment used in the construc tion or
51782081 improvement of buildings and other struc tures owned by the
5179-organization and operated in pursuit of th e organization’s primary
2082+organization and operated in pursuit of th e organization's primary
51802083 and principal purpose. The exemption shall apply to sales to the
51812084 organization and to sales to any person with whom the or ganization
51822085 has duly entered into a construction contract, necessary for
51832086 carrying out the contract or to any subcontracto r to the
51842087 construction contract.
5185-SECTION 5. This act shall become effective Nove mber 1, 2023.
5186-Passed the Senate the 23rd day of March, 2023.
5187-
5188-
5189-
5190- Presiding Officer of the Senate
5191-
5192-
5193-Passed the House of Representatives the ____ day of ________ __,
5194-2023.
5195-
5196-
5197-
5198- Presiding Officer of the House
5199- of Representatives
5200-
5201-
2088+SECTION 2. AMENDATORY 68 O.S. 2021, Section 1357, as
2089+amended by Section 1, Cha pter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
2090+Section 1357), is amended to read as follo ws:
2091+Section 1357. Exemptions – General.
2092+There are hereby specifically exempted fr om the tax levied by
2093+the Oklahoma Sales Tax Code:
2094+1. Transportation of school pupils to and from elementary
2095+schools or high schools in motor or other vehicles;
2096+
2097+SB406 HFLR Page 42
2098+BOLD FACE denotes Committee Amendments. 1
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2122+
2123+2. Transportation of persons where the fare of each person does
2124+not exceed One Dollar ($1.00), or local transportatio n of persons
2125+within the corporate limits of a municipality except by taxicabs;
2126+3. Sales for resale to persons engaged in the bu siness of
2127+reselling the articles purchased, whether within or without the
2128+state, provided that such sales to residents of this s tate are made
2129+to persons to whom sales tax permits have been issued as provided in
2130+the Oklahoma Sales Tax Code. This exemption shall not apply to the
2131+sales of articles made to persons holding permits when such persons
2132+purchase items for their use and whic h they are not regularly
2133+engaged in the business of reselling; neither shall this exemption
2134+apply to sales of tangible personal property to peddlers, solicitors
2135+and other salespersons who do not have an established place of
2136+business and a sales tax permit. The exemption provided by this
2137+paragraph shall apply to sales of motor fuel or diesel fuel to a
2138+Group Five vendor, but the use of such motor fuel or diesel fuel by
2139+the Group Five vendor shall not be exempt from the tax levied by th e
2140+Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
2141+is exempt from sales tax when the motor fuel is for shipment outside
2142+this state and consumed by a common carrier by rail in the conduct
2143+of its business. The sales tax shall apply to the purchase of motor
2144+fuel or diesel fuel in Oklahoma by a common carrier by rail when
2145+such motor fuel is purchased for fueling, within this state, of any
2146+locomotive or other motorized flanged wheel equipment;
2147+
2148+SB406 HFLR Page 43
2149+BOLD FACE denotes Committee Amendments. 1
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2174+4. Sales of advertising space in newspapers and periodicals;
2175+5. Sales of programs relating to sporting and entertainment
2176+events, and sales of advertising on billboards (including signage,
2177+posters, panels, marquees, or on other similar surfaces, whether
2178+indoors or outdoors) or in programs relating to spo rting and
2179+entertainment events, and sales of any advertising, to be displayed
2180+at or in connection with a sporting event, via the Internet,
2181+electronic display devices or through public address or broadcast
2182+systems. The exemption authorized by this paragrap h shall be
2183+effective for all sales made on or after January 1, 2001;
2184+6. Sales of any advertising, other than the advertising
2185+described by paragraph 5 of this section, via the Internet,
2186+electronic display devices or through the electronic media including
2187+radio, public address o r broadcast systems, television (whether
2188+through closed circuit broadcasting systems or otherwise), and cable
2189+and satellite television, and the servicing of any advertising
2190+devices;
2191+7. Eggs, feed, supplies, machinery , and equipment purchased by
2192+persons regularly engaged in the business of raising worms, fish,
2193+any insect, or any other form of terrestrial or aquatic animal life
2194+and used for the purpose of raising same for marketing. This
2195+exemption shall only be granted and extended to the purchaser when
2196+the items are to be used and in fact are used in the raising of
2197+animal life as set out above. Each purchaser shall certify, in
2198+
2199+SB406 HFLR Page 44
2200+BOLD FACE denotes Committee Amendments. 1
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2224+
2225+writing, on the invoice or sales ticket retained by the vendor that
2226+the purchaser is regularly engaged in th e business of raising s uch
2227+animal life and that the items purchased will be used only in such
2228+business. The vendor shall certify to the Oklahoma Tax Co mmission
2229+that the price of the items has been reduced to grant the full
2230+benefit of the exemption. Viola tion hereof by the purc haser or
2231+vendor shall be a misdemeanor;
2232+8. Sale of natural or artificial gas and electricity, and
2233+associated delivery or transmi ssion services, when sold exclusively
2234+for residential use. Provided, this exemption shall not apply to
2235+any sales tax levied by a city or town, or a county or any other
2236+jurisdiction in this state;
2237+9. In addition to the exemptions authorized by Section 135 7.6
2238+of this title, sales of drugs sold pursuant to a prescription
2239+written for the treatment of human bei ngs by a person license d to
2240+prescribe the drugs, and sales of insulin and medical oxygen.
2241+Provided, this exemption shall not apply to over-the-counter drugs;
2242+10. Transfers of title or possession of empty, partially
2243+filled, or filled returnable oil and ch emical drums to any per son
2244+who is not regularly engaged in the business of selling, reselling
2245+or otherwise transferring empty, partially filled or filled
2246+returnable oil drums;
2247+
2248+SB406 HFLR Page 45
2249+BOLD FACE denotes Committee Amendments. 1
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2273+
2274+11. Sales of one-way utensils, paper napkins, paper cups,
2275+disposable hot contai ners, and other one-way carry out materials to
2276+a vendor of meals or beverages;
2277+12. Sales of food or food products for home consumption which
2278+are purchased in whole or in part with coupons issued pursuant to
2279+the federal food stamp program as authorized by Sections 2011
2280+through 2029 of Title 7 of the United States Code, as to that
2281+portion purchased with such coupons. The exemption provided for
2282+such sales shall be inapplicable to such sales upon the effective
2283+date of any federal law that removes the requirem ent of the
2284+exemption as a condition for participation by the state in the
2285+federal food stamp program;
2286+13. Sales of food or food products, or any equ ipment or
2287+supplies used in the preparation of the food or food products to or
2288+by an organization which:
2289+a. is exempt from taxation pursuant to the provisions of
2290+Section 501(c)(3) of the Internal Revenue Code, 26
2291+U.S.C., Section 501(c)(3), and which provid es and
2292+delivers prepared meals for home consumption to
2293+elderly or homebound persons as part of a program
2294+commonly known as "Meals on Wheels" or "Mobile Meals",
2295+or
2296+b. is exempt from taxation pursuant to the provisions of
2297+Section 501(c)(3) of the Internal R evenue Code, 26
2298+
2299+SB406 HFLR Page 46
2300+BOLD FACE denotes Committee Amendments. 1
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2323+24
2324+
2325+U.S.C., Section 501(c)(3), and which receives federal
2326+funding pursuant to the Older Americans Act of 1965,
2327+as amended, for the purpose of providing nutrition
2328+programs for the care and benefit of elderly persons;
2329+14. a. Sales of tangible pe rsonal property or services to or
2330+by organizations which are exempt from taxation
2331+pursuant to the provisions o f Section 501(c)(3) of the
2332+Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
2333+and:
2334+(1) are primarily involved in the collection and
2335+distribution of food and other household products
2336+to other organizations that facilitate the
2337+distribution of such products to the needy and
2338+such distributee organizations are exempt from
2339+taxation pursuant to the provisions of Section
2340+501(c)(3) of the Internal Revenue Code, 26
2341+U.S.C., Section 501(c)(3), or
2342+(2) facilitate the distribution of such products to
2343+the needy.
2344+b. Sales made in the course of business for profit or
2345+savings, competing with other persons engaged in the
2346+same or similar business shall not be exempt under
2347+this paragraph.
2348+
2349+SB406 HFLR Page 47
2350+BOLD FACE denotes Committee Amendments. 1
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2374+
2375+c. The exemption provided by this paragraph shall include
2376+sales of tangible personal property or taxable
2377+services consumed or incorporated in the construction
2378+of a facility placed in service during calendar year
2379+2023. The exemption shall include sales and taxable
2380+services to the organization and to any person,
2381+entity, contractor, or subcontractor with whom the
2382+organization has duly entered into a construction
2383+contract necessary for carrying out the contract. For
2384+sales tax paid on purchases that would otherwise be
2385+exempt pursuant to this subparagraph but occurred
2386+before the effective date of this act , the Tax
2387+Commission shall make refunds to the purchasers in the
2388+full amount of the sales tax paid, as documented by
2389+the purchaser and veri fied by the Tax Commission;
2390+15. Sales of tangible personal property or services to
2391+children's homes which are located on church-owned property and are
2392+operated by organizations exempt from taxation pursuant to the
2393+provisions of the Internal Revenue Code, 26 U.S.C., Section
2394+501(c)(3);
2395+16. Sales of computers, data processing equipment, related
2396+peripherals, and telephone, telegraph or telecommunications service
2397+and equipment for use in a qualified aircraft maintenance or
2398+manufacturing facility. For purposes of this paragraph, "qualified
2399+
2400+SB406 HFLR Page 48
2401+BOLD FACE denotes Committee Amendments. 1
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2423+23
2424+24
2425+
2426+aircraft maintenance or manufacturing facility" means a new or
2427+expanding facility prima rily engaged in aircraft repair, building,
2428+or rebuilding whether or not on a factory basis, whose total cost of
2429+construction exceeds the sum of Five Million Dollars ($5,000,000.00)
2430+and which employs at least two hundred fifty (250) new full -time-
2431+equivalent employees, as certified by the Oklahoma Employment
2432+Security Commission, upon completion of the facility. In order to
2433+qualify for the exemption provided for by this paragraph, the cost
2434+of the items purchased by the qualified aircraft maintenance or
2435+manufacturing facility shall equal or exceed the sum of Two Millio n
2436+Dollars ($2,000,000.00);
2437+17. Sales of tangible personal property consumed or
2438+incorporated in the construction or expansion of a qualified
2439+aircraft maintenance or manufacturing facility as define d in
2440+paragraph 16 of this section. For purposes of this paragraph, sales
2441+made to a contractor or subcontractor that has previously entered
2442+into a contractual relationship with a qualified aircraft
2443+maintenance or manufacturing facility for construction or expansion
2444+of such a facility shall be considered sales made to a qualified
2445+aircraft maintenance or manufacturing facility;
2446+18. Sales of the following telecommunications services:
2447+a. Interstate and International "800 service". "800
2448+service" means a "telecommunications service" that
2449+allows a caller to dial a toll-free number without
2450+
2451+SB406 HFLR Page 49
2452+BOLD FACE denotes Committee Amendments. 1
2453+2
2454+3
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2474+23
2475+24
2476+
2477+incurring a charge for the call. The service is
2478+typically marketed under the name "800", "855", "866",
2479+"877" and "888" toll-free calling, and any subsequent
2480+numbers designated by the Federal Communications
2481+Commission,
2482+b. Interstate and International "900 service". "900
2483+service" means an inbound toll "telecommunications
2484+service" purchased by a subscriber that allows the
2485+subscriber's customers to call in to the subscriber 's
2486+prerecorded announcemen t or live service. "900
2487+service" does not include the charge for: collection
2488+services provided by the seller of the
2489+"telecommunications services" to the subscriber, or
2490+service or product sold by the subscriber to the
2491+subscriber's customer. The service is typically
2492+marketed under the name "900" service, and any
2493+subsequent numbers designated by the Federal
2494+Communications Commission,
2495+c. Interstate and International "private communications
2496+service". "Private communications service " means a
2497+"telecommunications service" that entitles the
2498+customer to exclusive or priority use of a
2499+communications channel or group of channels between or
2500+among termination points, regardless of the manner in
2501+
2502+SB406 HFLR Page 50
2503+BOLD FACE denotes Committee Amendments. 1
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2525+23
2526+24
2527+
2528+which such channel or channels are connected, and
2529+includes switching capaci ty, extension lines, stations
2530+and any other associated services that are provided in
2531+connection with the use of such channel or channels,
2532+d. "Value-added nonvoice data service". "Value-added
2533+nonvoice data service " means a service that otherwise
2534+meets the definition of "telecommunications services"
2535+in which computer processing applications are used to
2536+act on the form, content, code or protocol of the
2537+information or data primarily for a purpose other than
2538+transmission, conveyance , or routing,
2539+e. Interstate and International telecommunications
2540+service which is:
2541+(1) rendered by a company for private use within its
2542+organization, or
2543+(2) used, allocated or distributed by a company to
2544+its affiliated group,
2545+f. Regulatory assessments and charges including charges
2546+to fund the Oklahoma Universal Service Fund, the
2547+Oklahoma Lifeline Fund and the Oklahoma High Cost
2548+Fund, and
2549+g. Telecommunications nonre curring charges including but
2550+not limited to the installation, connection, change ,
2551+
2552+SB406 HFLR Page 51
2553+BOLD FACE denotes Committee Amendments. 1
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2575+23
2576+24
2577+
2578+or initiation of telecommunications se rvices which are
2579+not associated with a retail consumer sale;
2580+19. Sales of railroad track spikes manufactured and sold for
2581+use in this state in the construction or repair of railroad tracks,
2582+switches, sidings, and turnouts;
2583+20. Sales of aircraft and aircraft parts provided such sales
2584+occur at a qualified aircraft maintenance facility. As used in this
2585+paragraph, "qualified aircraft maint enance facility" means a
2586+facility operated by an air common carrier including one or more
2587+component overhaul support buildings or structures in an area owned,
2588+leased, or controlled by the air common carrier, at which there were
2589+employed at least two thousa nd (2,000) full-time-equivalent
2590+employees in the preceding year as certified by the Oklahoma
2591+Employment Security Commission and which is primarily related to the
2592+fabrication, repair, alteration, modification, refurbishing,
2593+maintenance, building, or rebuilding of commercial aircraft or
2594+aircraft parts used in air common carriage. For purposes of this
2595+paragraph, "air common carrier" shall also include members of an
2596+affiliated group as defined by Section 1504 of the Internal Revenue
2597+Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
2598+machinery, tools, supplies, equipment , and related tangible p ersonal
2599+property and services used or consumed in the repair, remodeling, or
2600+maintenance of aircraft, aircraft engines or aircraft component
2601+parts which occur at a qualified aircraft maintenance facility;
2602+
2603+SB406 HFLR Page 52
2604+BOLD FACE denotes Committee Amendments. 1
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2626+23
2627+24
2628+
2629+21. Sales of machinery and equipment purchased and used by
2630+persons and establishments primarily engaged in computer services
2631+and data processing:
2632+a. as defined under Industrial Group Numbers 7372 and
2633+7373 of the Standard Industrial Classification (SIC)
2634+Manual, latest version, which derive at least fifty
2635+percent (50%) of their annual gross revenues from the
2636+sale of a product or service to an out-of-state buyer
2637+or consumer, and
2638+b. as defined under Industrial Gr oup Number 7374 of the
2639+SIC Manual, latest version, which derive at least
2640+eighty percent (80%) of th eir annual gross revenues
2641+from the sale of a product or service to an out-of-
2642+state buyer or consumer.
2643+Eligibility for the exemption set out in this paragraph shall be
2644+established, subject to review by the Tax Commission, by annually
2645+filing an affidavit wit h the Tax Commission stating that the
2646+facility so qualifies and such information as required by the Tax
2647+Commission. For purposes of determining whether annu al gross
2648+revenues are derived from sales to out-of-state buyers or consumers,
2649+all sales to the fede ral government shall be considered to be to an
2650+out-of-state buyer or consumer;
2651+22. Sales of prosthetic devices to an individual for use by
2652+such individual. For purposes of this paragraph, "prosthetic
2653+
2654+SB406 HFLR Page 53
2655+BOLD FACE denotes Committee Amendments. 1
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2676+22
2677+23
2678+24
2679+
2680+device" shall have the same meaning as provided in Sec tion 1357.6 of
2681+this title, but shall not include corrective eye glasses, contact
2682+lenses, or hearing aids;
2683+23. Sales of tangible personal property or service s to a motion
2684+picture or television production company to be used or consumed in
2685+connection with an eligible production. For purposes of this
2686+paragraph, "eligible production" means a documentary, special, music
2687+video or a television commercial or televisi on program that will
2688+serve as a pilot for or be a segment of an ongoing dramatic or
2689+situation comedy series filmed or taped for network or national or
2690+regional syndication or a feature-length motion picture intended for
2691+theatrical release or for network or national or regional
2692+syndication or broadcast. The provisions of this paragraph shall
2693+apply to sales occurring on or after July 1, 1996. In order to
2694+qualify for the exemption, the motion picture or television
2695+production company shall file any documentat ion and information
2696+required to be submitted pursuant to rules promulgated by the Tax
2697+Commission;
2698+24. Sales of diesel fuel sold for consumption by commercial
2699+vessels, barges and other commercial watercraft;
2700+25. Sales of tangible personal property or serv ices to tax-
2701+exempt independent nonprofit biomedical research foundations that
2702+provide educational p rograms for Oklahoma science students and
2703+
2704+SB406 HFLR Page 54
2705+BOLD FACE denotes Committee Amendments. 1
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2727+23
2728+24
2729+
2730+teachers and to tax-exempt independent nonprofit community blood
2731+banks headquartered in this state;
2732+26. Effective May 6, 1992, sales of wireless telecommunications
2733+equipment to a vendor who subsequently transfers the equipment at no
2734+charge or for a discounted charge to a consumer as part of a
2735+promotional package or as an inducement to commence or continue a
2736+contract for wireless telecommunications services;
2737+27. Effective January 1, 1991, leases of rail transportat ion
2738+cars to haul coal to coal-fired plants located in this state which
2739+generate electric power;
2740+28. Beginning July 1, 2005, sales of aircraft engine repairs ,
2741+modification, and replacement parts, sales of aircraft frame repairs
2742+and modification, aircraft i nterior modification, and paint, and
2743+sales of services employed in the repair, modification, and
2744+replacement of parts of aircraft engines, aircraft frame and
2745+interior repair and modification, and paint;
2746+29. Sales of materials and supplies to the owner or operator of
2747+a ship, motor vessel, or barge that is used in interstate or
2748+international commerce if the materials and supplies:
2749+a. are loaded on the ship, mot or vessel, or barge and
2750+used in the maintenance and operation of the ship,
2751+motor vessel, or barge, or
2752+b. enter into and become component parts of the ship,
2753+motor vessel, or barge;
2754+
2755+SB406 HFLR Page 55
2756+BOLD FACE denotes Committee Amendments. 1
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2778+23
2779+24
2780+
2781+30. Sales of tangible personal property made at estate sales at
2782+which such property is offered for sale on the premises of the
2783+former residence of the decedent by a person wh o is not required to
2784+be licensed pursuant to the Transient Merchant Licensing Act, or who
2785+is not otherwise required to obtain a sales tax permit for the sale
2786+of such property pursuant to the provisions of Section 1364 of this
2787+title; provided:
2788+a. such sale or event may not be held for a period
2789+exceeding three (3) consecutive days,
2790+b. the sale must be conducted within six (6) months of
2791+the date of death of the d ecedent, and
2792+c. the exemption allowed by this paragraph shall not be
2793+allowed for property that was not part of the
2794+decedent's estate;
2795+31. Beginning January 1, 2004, sales of electricity and
2796+associated delivery and transmission services, when sold exclusiv ely
2797+for use by an oil and gas operator for reservoir dewatering projects
2798+and associated operations commencing on or after July 1, 2003, in
2799+which the initial water-to-oil ratio is greater than or equal to
2800+five-to-one water-to-oil, and such oil and gas devel opment projects
2801+have been classified by the Corporation Commission as a reservoir
2802+dewatering unit;
2803+32. Sales of prewritten computer software that is delivered
2804+electronically. For purposes of this paragraph, "delivered
2805+
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2832+electronically" means delivered to t he purchaser by means other than
2833+tangible storage media;
2834+33. Sales of modular dwelling units whe n built at a production
2835+facility and moved in whole or in parts, to be assembled on-site,
2836+and permanently affixed to the real property and used for
2837+residential or commercial purposes. The exemption provided by this
2838+paragraph shall equal forty -five percent (45%) of the total sales
2839+price of the modular dwelling unit. For p urposes of this paragraph,
2840+"modular dwelling unit" means a structure that is not subject to the
2841+motor vehicle excise tax imposed pursuant to Section 2103 of this
2842+title;
2843+34. Sales of tangible personal property or services to:
2844+a. persons who are residents o f Oklahoma and have been
2845+honorably discharged from active service in any branch
2846+of the Armed Forces of the United States or Oklahoma
2847+National Guard and who have been certified by the
2848+United States Department of Ve terans Affairs or its
2849+successor to be in re ceipt of disability compensation
2850+at the one-hundred-percent rate and the disability
2851+shall be permanent and have been sustained through
2852+military action or accident or resulting from disea se
2853+contracted while in such active service and registered
2854+with the veterans registry created by the Oklahoma
2855+Department of Veterans Affairs; provided, that if th e
2856+
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2883+veteran received the sales tax exemption prior to
2884+November 1, 2020, he or she shall be requir ed to
2885+register with the vet erans registry prior to July 1,
2886+2023, in order to remain qualified, or
2887+b. the surviving spouse of the person in subparagraph a
2888+of this paragraph if the person is deceased and the
2889+spouse has not remarried and the surviving spouse of a
2890+person who is determined by the United States
2891+Department of Defense or any branch of the United
2892+States military to have died while in the line of duty
2893+if the spouse has not remarried. Sales for the
2894+benefit of an eligible person to a spouse of the
2895+eligible person or to a member of the household in
2896+which the eligible per son resides and who is
2897+authorized to make purchases on the person's behalf,
2898+when such eligible person is not present at the sale,
2899+shall also be exempt for purpose s of this paragraph.
2900+The Oklahoma Tax Commission s hall issue a separate
2901+exemption card to a s pouse of an eligible person or to
2902+a member of the household in which the eligible person
2903+resides who is authorized to make purchases on the
2904+person's behalf, if requested by the eligible person.
2905+Sales qualifying for the exemption authorized by this
2906+paragraph shall not exceed Twenty-five Thousand
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2934+Dollars ($25,000.00) per year per individual while the
2935+disabled veteran is living. Sales qualifying for the
2936+exemption authorized by this paragr aph shall not
2937+exceed One Thousand Dollars ($1,000.00) per year for
2938+an unremarried surviving spouse. Upon request of the
2939+Tax Commission, a person asserting or cla iming the
2940+exemption authorized by this paragraph shall provide a
2941+statement, executed under oat h, that the total sales
2942+amounts for which the exemption is applicable h ave not
2943+exceeded Twenty-five Thousand Dollars ($25,000.00) per
2944+year per living disabled vet eran or One Thousand
2945+Dollars ($1,000.00) per year for an unremarried
2946+surviving spouse. If the amount of such exempt sales
2947+exceeds such amount, the sales tax in exce ss of the
2948+authorized amount shall be treated as a direct sales
2949+tax liability and may be rec overed by the Tax
2950+Commission in the same manner provided by law for
2951+other taxes including penalty and interest. The Tax
2952+Commission shall promulgate any rules necess ary to
2953+implement the provisions of this paragraph, which
2954+shall include rules providing for the disclosure of
2955+information about persons eligible for the exemption
2956+authorized in this par agraph to the Oklahoma
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2984+Department of Veteran's Veterans Affairs, as
2985+authorized in Section 205 of this title;
2986+35. Sales of electricity to the operator, specifically
2987+designated by the Corporation Commission, of a spacing unit or lease
2988+from which oil is produced or attempted to be produced using
2989+enhanced recovery methods including, but not limited to, increased
2990+pressure in a producing formation through the use of water or
2991+saltwater if the electrical usage is associated with and necessary
2992+for the operation of equipme nt required to inject or circulate
2993+fluids in a producing formatio n for the purpose of forcing oil or
2994+petroleum into a wellbore for eventual recovery and production f rom
2995+the wellhead. In order to be eligible for the sales tax exempti on
2996+authorized by this p aragraph, the total content of oil recovered
2997+after the use of enh anced recovery methods shall not exceed one
2998+percent (1%) by volume. The exemption authorized by thi s paragraph
2999+shall be applicable only to the state sales tax rate and shall not
3000+be applicable to any county or municipal sales tax rate;
3001+36. Sales of intras tate charter and tour bus transportation.
3002+As used in this paragraph, "intrastate charter and tour b us
3003+transportation" means the transportation of persons from one
3004+location in this state to another location in this state in a motor
3005+vehicle which has been c onstructed in such a manner that it may
3006+lawfully carry more than eighteen persons, and which is ordi narily
3007+used or rented to carry persons for compensation. Provid ed, this
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3035+exemption shall not apply to regularly scheduled bus transportation
3036+for the general public;
3037+37. Sales of vitamins, minerals, and dietary supplements by a
3038+licensed chiropractor to a p erson who is the patient of such
3039+chiropractor at the physical loc ation where the chiropra ctor
3040+provides chiropractic care or services to such patient. The
3041+provisions of this paragraph shall not be applicable to any drug,
3042+medicine, or substance for which a prescription by a licensed
3043+physician is required;
3044+38. Sales of goods, wares, merchandis e, tangible personal
3045+property, machinery, and equipment to a web sea rch portal located in
3046+this state which derives at least eighty percent (80%) of its annual
3047+gross revenue from the sale of a product or service to an out-of-
3048+state buyer or consumer. For pu rposes of this paragraph, "web
3049+search portal" means an establishment classified under NAICS code
3050+519130 which operates websites that use a search engine to generate
3051+and maintain extensive databases of Internet addresses and content
3052+in an easily searchable format;
3053+39. Sales of tangible personal property consumed or
3054+incorporated in the construction or expansion of a facility for a
3055+corporation organized under Section 437 et seq. of Title 18 of the
3056+Oklahoma Statutes as a rural electric coo perative. For purpo ses of
3057+this paragraph, sales made to a contractor or subcontractor th at has
3058+previously entered into a contractual relationship with a rural
3059+
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3086+electric cooperative for cons truction or expansion of a facility
3087+shall be considered sales made to a rural electric cooperative;
3088+40. Sales of tangible personal property or services to a
3089+business primarily engaged in the repair of consumer electronic
3090+goods including, but not limited t o, cell phones, compact disc
3091+players, personal computers, MP3 pla yers, digital devices for the
3092+storage and retrieval of information through hard-wired or wireless
3093+computer or Internet connections, if the devices are sold to the
3094+business by the original man ufacturer of such devices and the
3095+devices are repaired, refitted or refurbished for sa le by the entity
3096+qualifying for the exemption authorized by this parag raph directly
3097+to retail consumers or if the devices are sold to another business
3098+entity for sale to retail consumers;
3099+41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
3100+or leases of rolling stock when sold or leased by the manufacturer,
3101+regardless of whether the purchaser is a public services corporation
3102+engaged in business as a common carri er of property or passengers by
3103+railway, for use or consumption by a common carrier directly in the
3104+rendition of public service. For purposes of this parag raph,
3105+"rolling stock" means locomotives, autocars, and railroad cars and
3106+"sales or leases" includes railroad car maintenance and retrofitting
3107+of railroad cars for th eir further use only on the railways; and
3108+42. Sales of gold, silver, platinum, palladium, or other
3109+bullion items such as coins and bars and legal tender of any nation,
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3137+which legal tender is s old according to its value as precious metal
3138+or as an investment. As used in the paragraph, "bullion" means any
3139+precious metal including, but not limited to, gold, silver,
3140+platinum, and palladium, that is in such a state or condition that
3141+its value depends upon its precious metal content and not its form.
3142+The exemption authorized by this paragraph shall not apply to
3143+fabricated metals that have been process ed or manufactured for
3144+artistic use or as jewelry.
3145+SECTION 3. This act shall become effective November 1, 2023.
3146+
3147+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
3148+04/20/2023 - DO PASS, As Amended and Coauthored.