Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB463 Compare Versions

Version 1 (Old)

Version 2 (New)

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3	28
4		-	An Act
5		-	ENROLLED SENATE
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	ENGROSSED SENATE
6	36		BILL NO. 463 By: Thompson (Roger) of the
7	37		Senate
8	38
9	39		and
10	40
11	41		Hilbert of the House
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15	49		An Act relating to sales tax exemption; amending 68
16	50		O.S. 2021, Section 1357, as amended by Section 1,
17	51		Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022, Section
18	52		1357), which relates to exemptions; modifying date of
19	53		exemption for sale or lease of rolling stock ;
20	54		updating statutory language; and pr oviding an
21	55		effective date.
22	56
23	57
24	58
25		-	SUBJECT: Sales tax exemption
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26	64
27	65		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
28		-
29	66		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
30	67		amended by Section 1, Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
31	68		Section 1357), is amended to read as follows:
	69	+	Section 1357. Exemptions – General.
32	70
33		-	Section 1357. Exemptions – General.
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35	97		There are hereby specifically exempted fr om the tax levied by
36	98		the Oklahoma Sales Tax Code:
37		-
38	99		1. Transportation of school pupi ls to and from elementary
39	100		schools or high schools in motor or other vehicles;
40		-
41	101		2. Transportation of persons where the fare of each person does
42	102		not exceed One Dollar ($1.00), or local transportation of persons
43	103		within the corporate limits of a municipality e xcept by taxicabs;
44		-
45	104		3. Sales for resale to persons engaged in the bu siness of
46	105		reselling the articles purchased, whether within or without the
47		-
48		-	ENR. S. B. NO. 463 Page 2
49	106		state, provided that such sales to residents of this state are made
50	107		to persons to whom sales tax permits have been issued as provided in
51	108		the Oklahoma Sales Tax Code. This exemption shall not apply to the
52	109		sales of articles made to persons holding permits when such persons
53	110		purchase items for their use and which they are not regularly
54	111		engaged in the business of resellin g; neither shall this exemption
55	112		apply to sales of tangible personal property to peddlers, solicitors
56	113		and other salespersons who do not have an established place of
57	114		business and a sales tax permit. The exemption provided by this
58	115		paragraph shall apply to sa les of motor fuel or diesel fuel to a
59	116		Group Five vendor, but the use of such motor fuel or diesel fuel by
60	117		the Group Five vendor shall not be exempt fr om the tax levied by th e
61	118		Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
62	119		is exempt from sales tax when the motor fuel is for shipment outside
63	120		this state and consumed by a common carrier by rail in the conduct
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64	148		of its business. The sales tax shall apply to the purchase of motor
65	149		fuel or diesel fuel in Oklahoma by a common carrier by rail when
66	150		such motor fuel is purchased for fueling, within this state, of any
67	151		locomotive or other motorized flanged wheel equipment;
68		-
69	152		4. Sales of advertising s pace in newspapers and periodicals;
70		-
71	153		5. Sales of programs relating to s porting and entertainment
72	154		events, and sales of advertising on billboards (including signage,
73	155		posters, panels, marquees or on other similar surfaces, whether
74	156		indoors or outdoors) or in p rograms relating to spo rting and
75	157		entertainment events, and sales of any advertising, to be displayed
76	158		at or in connection with a sporting event, via the Internet,
77	159		electronic display devices or through public address or broadcast
78	160		systems. The exemption authorized by this paragrap h shall be
79	161		effective for all sales made on or af ter January 1, 2001;
80		-
81	162		6. Sales of any advertising, other than the advertising
82	163		described by paragraph 5 of this section, via the Internet,
83	164		electronic display devices or through the elect ronic media including
84	165		radio, public address or broadcast systems, tel evision (whether
85	166		through closed circuit broadcasting systems or otherwise), and cable
86	167		and satellite television, and the servicing of any advertising
87	168		devices;
88		-
89	169		7. Eggs, feed, supplies, machinery, and equipment purchased by
90	170		persons regularly engaged in the business of raising worms, fish,
	171	+	any insect, or any other form of terrestrial or aquatic animal life
91	172
92		-	ENR. S. B. NO. 463 Page 3
93		-	any insect, or any other form of terrestrial or aquatic animal life
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94	199		and used for the purpose of raising same for marketing. This
95	200		exemption shall only be g ranted and extended to the purchaser when
96	201		the items are to be used a nd in fact are used in the raising of
97	202		animal life as set out above. Each purchaser shall certify, in
98	203		writing, on the invoice or sales ticket retained by the vendor that
99	204		the purchaser is regularly engaged in th e business of raising such
100	205		animal life and that the items purchased will be used on ly in such
101	206		business. The vendor shall certify to the Oklahoma Tax Co mmission
102	207		that the price of the items has been reduced to grant the full
103	208		benefit of the exemption. Viola tion hereof by the purchaser or
104	209		vendor shall be a misdemeanor;
105		-
106	210		8. Sale of natural or artificial gas and electricity, and
107	211		associated delivery or transmi ssion services, when sold exclusively
108	212		for residential use. Provided, this exempti on shall not apply to
109	213		any sales tax levied by a city or town, or a county or any other
110	214		jurisdiction in this state;
111		-
112	215		9. In addition to the exemptions authorized by Section 135 7.6
113	216		of this title, sales of drugs sold pursuant to a prescription
114	217		written for the treatment of human bei ngs by a person licensed to
115	218		prescribe the drugs, and sales of insulin and medical oxygen.
116	219		Provided, this exemption shall not apply to over-the-counter drugs;
117		-
118	220		10. Transfers of title or possession of empty, partially
119	221		filled, or filled returnable oil and ch emical drums to any person
120	222		who is not regularly engaged in the business of sellin g, reselling
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121	250		or otherwise transferring empty, partially filled or filled
122	251		returnable oil drums;
123		-
124	252		11. Sales of one-way utensils, paper napkins, paper cups,
125	253		disposable hot contai ners, and other one-way carry out materials to
126	254		a vendor of meals or beverages;
127		-
128	255		12. Sales of food or food products for home consumption which
129	256		are purchased in whole or in part with coupons issued pursuant to
130	257		the federal food stamp pro gram as authorized by Sections 2011
131	258		through 2029 of Title 7 of the United States Code, as to that
132	259		portion purchased with such coupons. The exemption provided for
133	260		such sales shall be inapplicable to such sales upon the effective
134	261		date of any federal law that removes the requirem ent of the
135		-
136		-	ENR. S. B. NO. 463 Page 4
137	262		exemption as a condition for participation by the state in the
138	263		federal food stamp program;
139		-
140	264		13. Sales of food or food products, or any equ ipment or
141	265		supplies used in the preparation of the food or food products to or
142	266		by an organization which:
143		-
144	267		a. is exempt from taxation pursuant to the provisions of
145	268		Section 501(c)(3) of the Internal Revenue Code, 26
146	269		U.S.C., Section 501(c)(3), and which provid es and
147	270		delivers prepared meals for home consumption to
148	271		elderly or homebound persons as part of a program
149	272		commonly known as “Meals on Wheels” or “Mobile Meals”,
150	273		or
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152	301		b. is exempt from taxation pursuant to the provisions of
153	302		Section 501(c)(3) of the Internal R evenue Code, 26
154	303		U.S.C., Section 501(c)(3), and which receives federal
155	304		funding pursuant to the Older Americans Act of 1965,
156	305		as amended, for the purpose of providing nutrition
157	306		programs for the care and benefit of elderly persons;
158		-
159	307		14. a. Sales of tangible pe rsonal property or services to or
160	308		by organizations which are exempt from taxation
161	309		pursuant to the provisions o f Section 501(c)(3) of the
162	310		Internal Revenue Code, 26 U.S.C ., Section 501(c)(3),
163	311		and:
164		-
165	312		(1) are primarily involved in the collection and
166	313		distribution of food and other household products
167	314		to other organizations that facilitate the
168	315		distribution of such products to the needy and
169	316		such distributee organizations are exemp t from
170	317		taxation pursuant to the provisions of Section
171	318		501(c)(3) of the Internal Revenue Code, 26
172	319		U.S.C., Section 501(c)(3), or
173		-
174	320		(2) facilitate the distribution of such products to
175	321		the needy.
176		-
177	322		b. Sales made in the course of business for profit or
178	323		savings, competing with other persons engaged in the
179	324
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181	351		same or similar business shall not be exempt under
182	352		this paragraph;
183		-
184	353		15. Sales of tangible personal property or services to
185	354		children’s homes which are located on church-owned property and are
186	355		operated by organization s exempt from taxation pursuant to the
187	356		provisions of the Internal Revenue Code, 26 U.S.C., Section
188	357		501(c)(3);
189		-
190	358		16. Sales of computers, data processing equipment, related
191	359		peripherals, and telephone, telegraph or telecommunications service
192	360		and equipment for use in a qualified aircraft maintenance or
193	361		manufacturing facility. For purposes of this paragraph, “qualified
194	362		aircraft maintenance or manufacturing facility” means a new or
195	363		expanding facility prima rily engaged in aircraft repair, building or
196	364		rebuilding whether or not on a factory basis, whose total cost of
197	365		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
198	366		and which employs at least two hundred fifty (250) new full-time-
199	367		equivalent employees, as certified by the Oklahoma Employment
200	368		Security Commission, upon completion of the facility. In order to
201	369		qualify for the exemption provided for by this paragraph, the cost
202	370		of the items purchased by the qualified aircraft maintenance or
203	371		manufacturing facility shall equal or exceed the sum of Two Millio n
204	372		Dollars ($2,000,000.00);
205		-
206	373		17. Sales of tangible personal property consumed or
207	374		incorporated in the construction or expansion of a qualified
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208	402		aircraft maintenance or manufactur ing facility as define d in
209	403		paragraph 16 of this section. For purposes of this pa ragraph, sales
210	404		made to a contractor or subcontractor that has previously entered
211	405		into a contractual relationship with a qualified aircraft
212	406		maintenance or manufacturing facilit y for construction or expansion
213	407		of such a facility shall be considered sales made to a qualified
214	408		aircraft maintenance or manufacturing facility;
215		-
216	409		18. Sales of the following telecommunications services:
217		-
218	410		a. Interstate and International “800 service”. “800
219	411		service” means a “telecommunications service” that
220	412		allows a caller to dial a toll-free number without
221	413		incurring a charge for the call. The service is
222	414		typically marketed under the name “800”, “855”, “866”,
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225	415		“877” and “888” toll-free calling, and any subseque nt
226	416		numbers designated by the Federal Communications
227	417		Commission,
228		-
229	418		b. Interstate and International “900 service”. “900
230	419		service” means an inbound toll “telecommunications
231	420		service” telecommunications service purchased by a
232	421		subscriber that allows the subscriber’s customers to
233	422		call in to the subscriber’s prerecorded announcement
234	423		or live service. “900 service” 900 service does not
235	424		include the charge for: collection services provided
236	425		by the seller of the “telecommunications services”
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237	453		telecommunications service s to the subscriber, or
238	454		service or product sold by the subscriber to th e
239	455		subscriber’s customer. The service is t ypically
240	456		marketed under the na me “900” service, and any
241	457		subsequent numbers designated by the Federal
242	458		Communications Commission,
243		-
244	459		c. Interstate and International “private communications
245	460		service”. “Private communications service” means a
246	461		“telecommunications service” telecommunications
247	462		service that entitles the cus tomer to exclusive or
248	463		priority use of a communications channel or group of
249	464		channels between or among termination points,
250	465		regardless of the manner in which such chan nel or
251	466		channels are connected, and includes switching
252	467		capacity, extension lines, stations and any other
253	468		associated services that are provided in connection
254	469		with the use of such channel or channels,
255		-
256	470		d. “Value-added nonvoice data service”. “Value-added
257	471		nonvoice data service” means a service that otherwise
258	472		meets the definition of “telecommunications services”
259	473		telecommunications services in which computer
260	474		processing applications are used to act on the form,
261	475		content, code or protocol of the information or data
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262	503		primarily for a purpose othe r than transmission,
263	504		conveyance, or routing,
264		-
265	505		e. Interstate and International telecommunications
266	506		service which is:
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269		-
270	507		(1) rendered by a company for private use within its
271	508		organization, or
272		-
273	509		(2) used, allocated or distributed by a company to
274	510		its affiliated group,
275		-
276	511		f. Regulatory assessments and charges including charges
277	512		to fund the Oklahoma Universal Service Fund, the
278	513		Oklahoma Lifeline Fund and the Oklahoma High Cost
279	514		Fund, and
280		-
281	515		g. Telecommunications nonrecurring charges including but
282	516		not limited to the installation, connection, change,
283	517		or initiation of telecommunications se rvices which are
284	518		not associated with a retail consumer sale;
285		-
286	519		19. Sales of railroad track spikes manufactured and sold for
287	520		use in this state in the construction or repair of railroad tracks,
288	521		switches, sidings, and turnouts;
289		-
290	522		20. Sales of aircraft and aircraft parts provided such sales
291	523		occur at a qualified aircraft maintenance facility. As used in this
292	524		paragraph, “qualified aircraft maintenance facility” means a
293	525		facility operated by an air common car rier including one or more
294	526		component overhaul support buildings or structures in an area owned,
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295	554		leased, or controlled by the air common carrier, at which there were
296	555		employed at least two thousand (2,000) full-time-equivalent
297	556		employees in the preceding year as certified by the Oklahoma
298	557		Employment Security Commission and which is primarily related to the
299	558		fabrication, repair, alteration, modification, refurbishing,
300	559		maintenance, building, or rebuilding of commercial aircraft or
301	560		aircraft parts used in air common carriage. For purposes of this
302	561		paragraph, “air common carrier” shall also include members of an
303	562		affiliated group as defined by Section 1504 of the Internal Revenue
304	563		Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
305	564		machinery, tools, supplie s, equipment, and related tangible personal
306	565		property and services used or consumed in the repair, remodeling, or
307	566		maintenance of aircraft, aircraft engines or aircraft component
308	567		parts which occur at a qualified aircraft maintenance facility;
309		-
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312	568		21. Sales of machinery and equipme nt purchased and used by
313	569		persons and establishments primarily engaged in computer services
314	570		and data processing:
315		-
316	571		a. as defined under Industrial Group Numbers 7372 and
317	572		7373 of the Standard Industrial Classification (SIC)
318	573		Manual, latest version, which derive at least fifty
319	574		percent (50%) of their annual gross revenues from the
320	575		sale of a product or service to an out-of-state buyer
321	576		or consumer, and
322	577
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323	604		b. as defined under Industrial Group Number 7374 of the
324	605		SIC Manual, latest version, which derive at least
325	606		eighty percent (80%) of their annual gross revenues
326	607		from the sale of a product or service to an out-of-
327	608		state buyer or consumer.
328		-
329	609		Eligibility for the exemption set out in this paragraph shall be
330	610		established, subject to review by the Tax Commission, by annually
331	611		filing an affidavit with the Tax Commission stating that the
332	612		facility so qualifies and such information as required by the Tax
333	613		Commission. For purposes of determining whether annual gross
334	614		revenues are derived from sales to out-of-state buyers or consumers,
335	615		all sales to the federal government shall be considered to be to an
336	616		out-of-state buyer or consumer;
337		-
338	617		22. Sales of prosthetic devices to an individual for use by
339	618		such individual. For purposes of this paragraph, “prosthetic
340	619		device” shall have the same meaning as provided in Section 1357.6 of
341	620		this title, but shall not include corrective eye glasses, contact
342	621		lenses, or hearing aids;
343		-
344	622		23. Sales of tangible personal property or services to a motion
345	623		picture or television production company to be used or consumed in
346	624		connection with an eligible production. For purposes of this
347	625		paragraph, “eligible production” means a documentary, special, music
348	626		video or a television commercial or television program that will
349	627		serve as a pilot for or be a segment of an ongoing dramatic or
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350	655		situation comedy series filmed or taped for network or national or
351	656		regional syndication or a feature-length motion picture intended for
352	657		theatrical release or for network or national or regional
353	658		syndication or broadcast. The provisions of this paragraph shall
354		-
355		-	ENR. S. B. NO. 463 Page 9
356	659		apply to sales occurring on or after July 1, 1996. In order to
357	660		qualify for the exemption, the motion picture or television
358	661		production company shall file any documentation and information
359	662		required to be submitted pursuant to rules promulgated by the Tax
360	663		Commission;
361		-
362	664		24. Sales of diesel fuel sold for consumption by commercial
363	665		vessels, barges and other commercial watercraft;
364		-
365	666		25. Sales of tangible personal property or services to tax-
366	667		exempt independent nonprofit biomedical research foundations that
367	668		provide educational programs for Oklahoma science students and
368	669		teachers and to tax-exempt independent nonprofit community blood
369	670		banks headquartered in this state;
370		-
371	671		26. Effective May 6, 1992, sales of wireless telecommunications
372	672		equipment to a vendor who subsequ ently transfers the equipment at no
373	673		charge or for a discounted charge to a consumer as p art of a
374	674		promotional package or as an inducement to commence or continue a
375	675		contract for wireless telecommunications services;
376		-
377	676		27. Effective January 1, 1991, leases of rail transportation
378	677		cars to haul coal to coal-fired plants located in this state which
379	678		generate electric power;
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380	705
381	706		28. Beginning July 1, 2005, sales of aircraft engine repairs,
382	707		modification, and replacement parts, sales of aircraft frame repairs
383	708		and modification, aircraft interior modification, and paint, and
384	709		sales of services employed in the r epair, modification, and
385	710		replacement of parts of aircraft engines, aircraft frame and
386	711		interior repair and modification, and paint;
387		-
388	712		29. Sales of materials and supplies to the owner or operator of
389	713		a ship, motor vessel, or barge that is used in interstate or
390	714		international commerce if the materials and supplies:
391		-
392	715		a. are loaded on the ship, motor vessel, or barge and
393	716		used in the maintenance and operation of the ship,
394	717		motor vessel, or barge, or
395		-
396	718		b. enter into and become component parts of the ship,
397	719		motor vessel, or barge;
398		-
399		-	ENR. S. B. NO. 463 Page 10
400		-
401	720		30. Sales of tangible personal property made at estate sales at
402	721		which such property is offered for sale on the premises of the
403	722		former residence of the deceden t by a person who is not required to
404	723		be licensed pursuant to the Transient Merchant Lice nsing Act, or who
405	724		is not otherwise required to obtain a sales tax permit for the sale
406	725		of such property pursuant to the provisions of Section 1364 of this
407	726		title; provided:
408		-
409	727		a. such sale or event may not be held for a period
410	728		exceeding three (3) consecutive da ys,
411	729
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412	756		b. the sale must be conducted within six (6) months of
413	757		the date of death of the decedent, and
414		-
415	758		c. the exemption allowed by this paragraph shall not be
416	759		allowed for property that was not part of the
417	760		decedent’s estate;
418		-
419	761		31. Beginning January 1, 2004, sales of electricity and
420	762		associated delivery and transmission services, when s old exclusively
421	763		for use by an oil and gas operator for reservoir dewatering projects
422	764		and associated operations commencing on or after July 1, 2003, in
423	765		which the initial water-to-oil ratio is greater than or equal to
424	766		five-to-one water-to-oil, and such oil and gas development projects
425	767		have been classified by the Corporation Commission as a reservoir
426	768		dewatering unit;
427		-
428	769		32. Sales of prewritten computer software that is delivered
429	770		electronically. For purposes of this paragraph, “delivered
430	771		electronically” means delivered to the purchaser by means other than
431	772		tangible storage media;
432		-
433	773		33. Sales of modular dwel ling units when built at a production
434	774		facility and moved in whole or in parts, to be ass embled on-site,
435	775		and permanently affixed to the real property and used for
436	776		residential or commercial purposes. The exemption provided by this
437	777		paragraph shall equal fort y-five percent (45%) of the total sales
438	778		price of the modular dwelling unit. For purpose s of this paragraph,
439	779		“modular dwelling unit” means a structure that is no t subject to the
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440	807		motor vehicle excise tax imposed pursuant to Section 2103 of this
441	808		title;
442		-
443		-	ENR. S. B. NO. 463 Page 11
444		-
445	809		34. Sales of tangible personal property or services to:
446		-
447	810		a. persons who are residents of Okla homa and have been
448	811		honorably discharged from active service in any branch
449	812		of the Armed Forces of the United States or Oklahoma
450	813		National Guard and who have been certifie d by the
451	814		United States Department of Ve terans Affairs or its
452	815		successor to be in receipt of disability compensation
453	816		at the one-hundred-percent rate and the disabi lity
454	817		shall be permanent and have been sustained through
455	818		military action or accident or resultin g from disease
456	819		contracted while in such active service and registered
457	820		with the veterans registry created by the Oklahoma
458	821		Department of Veterans Affairs; provided , that if the
459	822		veteran received the sales tax exemption prior to
460	823		November 1, 2020, he or she shall be required to
461	824		register with the vet erans registry prior to July 1,
462	825		2023, in order to remain qualified, or
463		-
464	826		b. the surviving spouse of the person in subparagraph a
465	827		of this paragraph if the person is deceased and the
466	828		spouse has not remarried and the surviving spouse of a
467	829		person who is determined by the United States
468	830		Department of Defense or any branch of the United
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469	858		States military to have died while in the line o f duty
470	859		if the spouse has not remarried. Sales for the
471	860		benefit of an eligible person to a spouse of the
472	861		eligible person or to a member of the household in
473	862		which the eligible person re sides and who is
474	863		authorized to make purchases on the person’s behalf,
475	864		when such eligible person is not present at the sale,
476	865		shall also be exempt for purposes of this paragraph.
477	866		The Oklahoma Tax Commission s hall issue a separate
478	867		exemption card to a spouse of an eligible person or to
479	868		a member of the household in which the eligible person
480	869		resides who is authorized to make purchases on the
481	870		person’s behalf, if requested by the eligible person.
482	871		Sales qualifying for the exemption authorized by this
483	872		paragraph shall not exceed Twenty-five Thousand
484	873		Dollars ($25,000.00) per year per individual while the
485	874		disabled veteran is living. Sales qualifying for the
486		-
487		-	ENR. S. B. NO. 463 Page 12
488	875		exemption authorized by this paragraph shall not
489	876		exceed One Thousand Dollars ($1,000.00) per year for
490	877		an unremarried surviving spouse. Upon request of the
491	878		Tax Commission, a person asserting or claiming the
492	879		exemption authorized by this paragraph shall provide a
493	880		statement, executed under oat h, that the total sales
494	881		amounts for which the exemption is applicable have no t
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495	909		exceeded Twenty-five Thousand Dollars ($25,000.00) per
496	910		year per living disabled veteran or One Thousand
497	911		Dollars ($1,000.00) per year for an unremarried
498	912		surviving spouse. If the amount of such exempt sales
499	913		exceeds such amount, the sales tax in excess of the
500	914		authorized amount shall be treated as a direct sales
501	915		tax liability and may be recovered by the Tax
502	916		Commission in the same manner provided by law for
503	917		other taxes including penalty and interest. The Tax
504	918		Commission shall promulga te any rules necessary to
505	919		implement the provisions of this paragraph, which
506	920		shall include rules providing for the disclosure of
507	921		information about persons eligible for the exemption
508	922		authorized in this par agraph to the Oklahoma
509	923		Department of Veteran’s Veterans Affairs, as
510	924		authorized in Section 205 of this title;
511		-
512	925		35. Sales of electricity to the operator, specifically
513	926		designated by the Corporation Commission, of a spacing unit or lease
514	927		from which oil is produced or attempted to be produced usin g
515	928		enhanced recovery methods including, but not limited to, increased
516	929		pressure in a producing formation through the use of water or
517	930		saltwater if the electrical usage is associated with and necessary
518	931		for the operation of equipme nt required to inject or circ ulate
519	932		fluids in a producing formation for the purpose of forcing oil or
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520	960		petroleum into a wellbore for eventual recovery and production from
521	961		the wellhead. In order to be eligible for the sales tax exempti on
522	962		authorized by this p aragraph, the total content of oil recovered
523	963		after the use of enhanced recovery methods shall not exceed one
524	964		percent (1%) by volume. The exemption authorized by this paragraph
525	965		shall be applicable only to the state sales tax rate and shall not
526	966		be applicable to any county or municipal sales tax rate;
527		-
528	967		36. Sales of intrastate c harter and tour bus transportation.
529	968		As used in this paragraph, “intrastate charter and tour bus
530		-
531		-	ENR. S. B. NO. 463 Page 13
532	969		transportation” means the transportation of persons from one
533	970		location in this state to another location in this state in a motor
534	971		vehicle which has been constru cted in such a manner that it may
535	972		lawfully carry more than eighteen persons, and which is ordinarily
536	973		used or rented to carry persons for compensation. Provid ed, this
537	974		exemption shall not apply to regularly schedule d bus transportation
538	975		for the general publi c;
539		-
540	976		37. Sales of vitamins, minerals, and dietary supplements by a
541	977		licensed chiropractor to a person who is the patient of such
542	978		chiropractor at the physical loc ation where the chiropra ctor
543	979		provides chiropractic care or services to such patient. The
544	980		provisions of this paragraph shall not be applicable to any drug,
545	981		medicine, or substance for which a prescription by a licensed
546	982		physician is required;
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547	1009
548	1010		38. Sales of goods, wares, merchandis e, tangible personal
549	1011		property, machinery, and equipment to a web search po rtal located in
550	1012		this state which derives at least eighty percent (80%) of its annual
551	1013		gross revenue from the sale of a product or service to an out-of-
552	1014		state buyer or consumer. For pu rposes of this paragraph, “web
553	1015		search portal” means an establishment class ified under NAICS code
554	1016		519130 which operates websites that use a search engine to generate
555	1017		and maintain extensive databases of Internet addresses and content
556	1018		in an easily searchable format;
557		-
558	1019		39. Sales of tangible personal property consumed or
559	1020		incorporated in the construction or expansion of a facility for a
560	1021		corporation organized under Section 437 et seq. of Title 18 of the
561	1022		Oklahoma Statutes as a rural electric coo perative. For purpo ses of
562	1023		this paragraph, sales made to a contractor or subcontractor that has
563	1024		previously entered into a contractual relationship with a rural
564	1025		electric cooperative for construction or expansion of a facility
565	1026		shall be considered sales made to a rural electric cooperative;
566		-
567	1027		40. Sales of tangib le personal property or services to a
568	1028		business primarily engaged in the repair of consumer electronic
569	1029		goods including, but not limited to, cell phones, compact disc
570	1030		players, personal computers, MP3 pla yers, digital devices for the
571	1031		storage and retrieval of information through hard-wired or wireless
572	1032		computer or Internet connections, if the devices are sold to the
573	1033		business by the original manufacturer of such devices and the
574	1034
575		-	ENR. S. B. NO. 463 Page 14
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576	1061		devices are repaired, refitted or refurbished for sa le by the entity
577	1062		qualifying for the exemption authorized by this paragraph d irectly
578	1063		to retail consumers or if the devices are sold to another business
579	1064		entity for sale to retail consumers;
580		-
581	1065		41. On or after July 1, 2019, and prior to July 1, 2024 July 1,
582	1066		2029, sales or leases of rolling stock when sold or leased by the
583	1067		manufacturer, regardless of whether the purchaser is a public
584	1068		services corporation engaged in business as a common carrier of
585	1069		property or passengers by railway, for use or consumption by a
586	1070		common carrier directly in the rendition of public service. For
587	1071		purposes of this paragraph, “rolling stock” means locomotives,
588	1072		autocars, and railroad cars and “sales or leases” includes railroad
589	1073		car maintenance and retrofitting of railroad cars for th eir further
590	1074		use only on the railways; and
591		-
592	1075		42. Sales of gold, silver, platinum, pall adium, or other
593	1076		bullion items such as coins and bars and legal tender of any nation,
594	1077		which legal tender is sold according to its value as precious metal
595	1078		or as an investment. As used in the paragraph, “bullion” means any
596	1079		precious metal including, but not limited to, gold, sil ver,
597	1080		platinum, and palladium, that is in such a state or condition that
598	1081		its value depends upon its precious metal content and not its form.
599	1082		The exemption authorized by this paragraph shall not apply to
600	1083		fabricated metals that have been processed or manufact ured for
601	1084		artistic use or as jewelry.
602	1085
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603	1112		SECTION 2. This act shall become effective Novem ber 1, 2023.
604	1113
605		-
606		-	ENR. S. B. NO. 463 Page 15
607		-	Passed the Senate the 6th day of March, 2023.
608		-
609		-
610		-
611		-	Presiding Officer of the Senate
612		-
613		-
614		-	Passed the House of Repr esentatives the 25th day of April, 2023.
615		-
616		-
617		-
618		-	Presiding Officer of the House
619		-	of Representatives
620		-
621		-	OFFICE OF THE GOVERNOR
622		-	Received by the Office of the Governor this _______ _____________
623		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
624		-	By: _________________________________
625		-	Approved by the Governor of the State of Oklahoma this _____ ____
626		-	day of _________________ __, 20_______, at _______ o'clock _______ M.
627		-
628		-	_________________________________
629		-	Governor of the State of Oklahoma
630		-
631		-
632		-	OFFICE OF THE SECRETARY OF STATE
633		-	Received by the Office of the Secretary of State this _______ ___
634		-	day of __________________, 20 _______, at _______ o'clock _______ M.
635		-	By: _______________________________ __
	1114	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	1115	+	04/05/2023 - DO PASS.