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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 576 By: Montgomery of the Senate
and
Boatman of the House
[ motor vehicles - tax exemptions - foreign export
title - certificates - form – fee - exception -
effective date -
emergency ]
AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
and insert:
"[ motor vehicles - tax exemptions - foreign export
title - certificates - form – fee - exception -
effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 2105, is
amended to read as f ollows:
Section 2105. An original or a transfer certificate of title or
a foreign export certificate of title, as provided for in Section
1105 of Title 47 of the Oklahoma Statutes, shall be issued without
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the payment of the excise t ax levied by Section 21 01 et seq. of this
title for:
1. Any vehicle owned by a nonresident person who operate s
principally in some ot her state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person formerly
living in another state, who has owned and registered the vehicle in
such other state of residence at least sixty (60) days prior to the
time it is required to be registered in this state; pro vided,
however, this paragraph s hall not apply to businesses engaged in
renting cars without a d river;
3. Any vehicle registered by the State of Oklahoma, by any of
the political subdivisions thereof, or by a fire department
organized pursuant to Section 592 of Title 18 of the Oklahoma
Statutes to be used for the purposes of t he fire department, or a
vehicle which is the subject of a lease or lease -purchase agreement
executed between the person seeking an or iginal or transfer
certificate of title for the v ehicle and a municipality, count y,
school district, or fire protection di strict. The person see king an
original or transfer certificate of title shall provide adequate
proof that the vehicle is subject to a lease or lease-purchase
agreement with a municip ality, county, school district, or fire
protection district at the time t he excise tax levied wo uld
otherwise be payable. The Oklahoma Tax Commission shall have the
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authority to determine what constitutes a dequate proof as required
by this section;
4. Any vehicle, the legal ownership o f which is obtained by the
applicant for a certificate of title by inheritance;
5. Any used motor vehicle, travel trailer, or commercial
trailer which is owned and being offe red for sale by a person
licensed as a dealer to sell the same, under the provisi ons of the
Oklahoma Vehicle License and R egistration Act:
a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax
paid thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been reg istered in some other state but is
not the latest manufactured m odel.
Provided, the provisions of this paragraph shall not be
construed as allowing an exemption to any person not licensed as a
dealer of used motor vehicles, travel trailers, or commercial
trailers, or as an automotive dismantler a nd parts recycler in th is
state;
6. Any vehicle which was purchased by a person licensed to sell
new or used motor vehicles in anothe r state:
a. if such vehicle is not purchased for operation or
resale in this state, and
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b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreeme nt between the
duly authorized agent of the Tax Commission and the
licensing state;
7. Any vehicle, the ownership of which was obtained by the
lienholder or mortgagee u nder or by foreclosure of a lien or
mortgage in the manner provided by law or to the in surer under
subrogated rights arising by reason of loss under an insuranc e
contract;
8. Any vehicle whic h is taxed on an ad valorem basis;
9. Any vehicle or motor vehi cle, the legal ownership of which
is obtained by transfers:
a. from one corporation to another corporation purs uant
to a reorganization. As used in this subsec tion the
term “reorganization” means:
(1) a statutory merger or consolida tion, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation wh en
the consideration is solely all or a part of the
voting stock of the a cquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the wind ing up, dissolution, or
liquidation of a corporation only when there is a
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distribution in kind to the sharehold ers of the
property of such corporation,
c. to a corporation where the former own ers of the
vehicle or motor vehicle trans ferred are, immediately
after the transfer, in control of the corporation, and
the stock or securities receive d by each is
substantially in proportion to the interest in the
vehicle or motor vehicle prior to the tra nsfer,
d. to a partnership if the former owners of the vehicle
or motor vehicle transferred are, immediately after
the transfer, members of such partne rship and the
interest in the partnership received by each is
substantially in proportion to the interest in the
vehicle or motor vehicle prior to the transfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liabilit y company if the former owners of
the vehicle or motor vehicle transferred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substanti ally in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer, or
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g. from a limited liability company to the members
thereof when made in the dissolution of such
partnership;
10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor vehicles without a driver,
provided:
a. the vehicle shall not be rented to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by these
provisions shall not b e placed under any type of lease
agreement,
c. on any such vehicle exempt ed from the excise tax by
this subsection that is reregistered in this st ate,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date o f issuance of the
original title, the seller shall pay immediately the
amount of excise tax whic h would have been due had
this exemption not been granted plus a penalty of
twenty percent (20%). No such exci se tax or penalty
shall become due and payable if the vehicle is sold or
transferred in a condition either physical or
mechanical which would ren der it eligible for a
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salvage title pursuant to law or if the vehicle is
sold and transferred in this state at any time prior
to the expiration of twelve (12) m onths:
(1) to the manufacturer o f the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the
same line-make of the vehicle being purchased, or
d. when this exemption is cla imed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as
provided in this section is made,
(2) the sale is made to a perso n specified in
division (1) or (2) of sub paragraph c of this
paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles herein exempted shall be
treated as though the excise tax has be en paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and transferred t o
a licensed, franchised Oklahoma motor vehicle d ealer, as defined by
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Section 1102 of Title 47 of the Oklahoma Statutes, w hich holds a
franchise of the same line-make as the vehicle being registered;
12. Any new motor vehicle, regi stered in the name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to Section 1116.1 of Titl e 47 of the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individual. The aut horization for
such use shall not exceed four (4) months which shall not be renew ed
or the exemption provided by this subs ection shall not be
applicable. The exemption provided by this subsection shall not be
applicable to a transf er of ownership or regis tration subsequent to
the first registration of t he vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial trailer of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the same which hold s a franchise of the same line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subject of a lease or lease-
purchase agreement and which the ownership of such vehicle is bein g
obtained by the lessee , if the vehicle excise tax was paid at the
time of the initial lease or lease -purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization
which is exempt from taxation pursuant to the
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provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 50 1(c)(3), and which
is primarily funded by a fraternal or civic service
organization with at leas t one hundred local chapters
or clubs, and
b. is designed and used to provide mobile he alth
screening services to the general public at no cost to
the recipient, and for which no reimbursement of any
kind is received from any health insurance provider,
health maintenance organization, or governmental
program;
16. Any vehicle which is purcha sed by an individual who has
been honorably discharged from active servic e in any branch of the
Armed Forces of the United States or Oklahoma Nati onal Guard and who
has been certified by the United States Department of Veterans
Affairs, its successor, or t he Armed Forces of the U nited States to
be a disabled veteran in receipt of compensation at the one -hundred-
percent rate for a permanent disabilit y sustained through mil itary
action or accident resulting from disease contracted while in such
active service and registered with the veterans registry created by
the Oklahoma Department of Veterans Affairs; provid ed, that if the
veteran has previously re ceived exemption pursua nt to this
paragraph, no registration with the veterans registry shall be
required. This exemption may not be claimed by an individual for
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more than one vehicl e in a consecutive three -year period, unless the
vehicle is a replacement for a vehicle which wa s destroyed and
declared by the insurer to be a total loss claim. The Tax
Commission shall promulgate any rule s necessary to implement the
provisions of this s ection; or
17. Any vehicle on w hich ownership is transferred by a
repossessor directly back to the owner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by
the repossessor within thirty (30) days of issuance of the
repossession title and shall be i dentical to that reflected in the
vehicle title record immediate ly prior to the repossession; or
18. Any vehicle approved by Service Oklahoma for the issuance
of a foreign export certificate of title, as provided in Section
1105 of Title 47 of the Oklahoma Statutes.
SECTION 2. AMENDATORY 47 O.S. 2021, Section 1105, as
last amended by Section 110, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2022, Section 1105), is amended to read as follows:
Section 1105. A. As used in the Oklahoma Vehicle License and
Registration Act:
1. “Salvage vehicle” means any vehicle which is within the last
ten (10) model years and which has been damaged by collision or
other occurrence to the extent that the cost of repairing the
vehicle for safe operation on the highway exceeds sixty percent
(60%) of its fair market value, as defined by Section 1111 of this
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title, immediately prior to the damage. For purposes of this
section, actual repair costs shall only include labor and parts for
actual damage to the suspension, motor, transmission, frame or
unibody and designated structural components;
2. “Rebuilt vehicle” means any salvage vehicle which has been
rebuilt and inspected for the purpose of registration and title;
3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle
which was damaged by flooding or a vehicle which was submerged at a
level to or above the dashboard of the vehicle and on which an
amount of loss was paid by the insurer;
4. “Unrecovered-theft vehicle” means a vehicle which has been
stolen and not yet recovered;
5. “Recovered-theft vehicle” means a vehicle, including a
salvage or rebuilt vehicle, which was recovered from a theft; and
6. “Junked vehicle” means any vehicle which is incapable of
operation or use on the highway, has no resale value except as a
source of parts or scrap and has an eighty percent (80%) loss in
fair market value; and
7. “Foreign export vehicle ” means any motor vehicle purchased
by an individual or entity doing business in this state if the
vehicle is contracted to be shipped to a destination outsid e of the
United States or its territories or its tribal lands, as defined in
25 U.S.C., Section 300 1(15), within one hundred twenty (120) days of
purchase.
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B. The owner of every vehicle in this state shall possess a
certificate of title as proof of ownership of such vehicle, except
those vehicles registered pursuant to Section 1120 of this title and
trailers registered pursuant to Section 1133 of this title,
previously titled by anyone in another state and engaged in
interstate commerce, and except as provided in subsection M of this
section. Except for owners that possess an agricultural exemption
permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
Statutes, the owner of an all-terrain vehicle or a motorcycle used
exclusively off roads or highways in this state which is purchased
or the ownership of which is transferred on or after July 1, 2005,
and the owner of a utility vehicle used exclusively off roads and
highways in this state which is purchased or the ownership of which
is transferred on or after July 1, 2008, shall possess a certificate
of title as proof of ownership. Any person possessing an
agricultural exemption permit and owning an all-terrain vehicle or a
motorcycle used exclusively off roads or highways in this state
which is purchased or the ownership of which is transferred on or
after July 1, 2008, shall possess a certificate of title as proof of
ownership. Upon receipt of proper application information by such
owner, Service Oklahoma shall issue an original or transfer
certificate of title. Until July 1, 2008, any security interest in
an all-terrain vehicle that attached and was perfected before July
1, 2005, and that has not otherwise terminated shall remain
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perfected, and shall take priority over any subsequently perfe cted
security interest in the same all-terrain vehicle, notwithstanding
that a certificate of title may have been issued with respect to the
same all-terrain vehicle on or after July 1, 2005, and that a lien
may have been recorded on said the certificate of title. There
shall be eight nine types of certificates of title:
1. Original title for any motor vehicle which is not a
remanufactured, salvage, unrecovered-theft, rebuilt, rebodied,
foreign export, or junked vehicle;
2. Salvage title for any motor vehicle which is a salvage
vehicle or is specified as a salvage vehicle or the equivalent
thereof on a certificate of title from another state;
3. Rebuilt title for any motor vehicle which is a rebuilt
vehicle;
4. Junked title for any motor vehicle which is a junked vehicle
or is specified as a junked vehicle or the equivalent thereof on a
certificate of title from another state;
5. Classic title for any motor vehicle, except a junked
vehicle, which is twenty-five (25) model years or older;
6. Remanufactured title for any vehicle which is a
remanufactured vehicle;
7. Unrecovered-theft title for any motor vehicle which has been
stolen and not recovered; and
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8. Rebodied title for any motor vehicle which is a rebodied
vehicle; and
9. Foreign export title for any foreign export vehicle.
Service Oklahoma shall prescribe a form to be completed and
submitted under oath together with the purchase contract for the
vehicle and proof of commitment to ship the vehicle by common
carrier vessel, air, rail, or any other commo n carrier for hire.
Upon approval by Service Oklahoma and payment of the required
certificate of title fee, Service Oklahoma shall issue a foreign
export certificate of title.
Application for a certificate of title, whether the initial
certificate of title or a duplicate, may be made to Service Oklahoma
or any licensed operator. When application is made with a licensed
operator, the application information shall be transmitted either
electronically or by mail to Service Oklahoma by the licensed
operator. If the application information is transmitted
electronically, the licensed operator shall forward the required
application along with evidence of ownership, where required, by
mail. Where the transmission of application information cannot be
performed electronically, Service Oklahoma is authorized to provide
postage paid envelopes to licensed operators for the purpose of
mailing the application along with evidence of ownership, where
required. Service Oklahoma shall upon receipt of proper application
information issue an Oklahoma certificate of title. The
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certificates may be mailed to the applicant. Upon issuance of a
certificate of title, Service Oklahoma shall provide the appropriate
licensed operator with confirmation of such issuance.
C. 1. The application for certificate of title shall be upon a
blank form furnished by Service Oklahoma, containing:
a. a full description of the vehicle,
b. the manufacturer’s serial or other identification
number,
c. the motor number and the date on which first sold by
the manufacturer or dealer to the owner,
d. any distinguishing marks,
e. a statement of the applicant’s source of title,
f. any security interest upon the vehicle, and
g. such other information as Service Oklahoma may
require.
2. The application for a certificate of title for a vehicle
which is within the last seven (7) model years shall require a
declaration as to whether the vehicle has been damaged by collision
or other occurrence and whether the vehicle has been recovered from
theft and the extent of the damage to the vehicle. The declaration
shall be made by the owner of a vehicle if:
a. the vehicle has been damaged or stolen,
b. the owner did or did not receive any payment for the
loss from an insurer, or
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c. the vehicle is titled or registered in a state that
does not classify the vehicle or brand the title
because of damage to or loss of the vehicle similar to
the classifications or brands utilized by this state.
The declaration shall be based upon the best information and
knowledge of the owner and shall be in addition to the requirements
specified in paragraph 1 of this subsection. Service Oklahoma shall
not issue a certificate of title for a vehicle which is subject to
the provisions of this paragraph without the required declaration,
completed and signed by the owner of the vehicle. Upon receipt of
an application without the properly completed declaration, Service
Oklahoma shall return the application to the applicant with notice
that the title may not be issued without the required declaration.
Nothing in this paragraph shall prohibit Service Oklahoma from
recognizing the type of or brand on a title or other ownership
document issued by another state or the inspection conducted in
another state and issuing the appropriate certificate of title for
the vehicle.
3. The certificate of title shall have the following security
features:
a. intaglio printing or security thread, with or without
watermark,
b. latent images,
c. fluorescent inks,
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d. micro print,
e. void background, and
f. color coding.
4. Each title issued pursuant to the provisions of the Oklahoma
Vehicle License and Registration Act shall be color coded as
determined by Service Oklahoma.
5. The certificate of title shall be of such size and design
and color as Service Oklahoma may direct pursuant to the provisions
of this section. The title shall be on colored paper or other
material as designated by Service Oklahoma and be of such intensity
or hue as will allow easy identification as to whether the title is
an original title, a salvage title, a rebuilt title, remanufactured
title, rebodied title, foreign export title, or a junked title. The
type of title shall be identified on the front of the certificate of
title. The original title, rebuilt title, remanufactured title, an
unrecovered-theft title, rebodied title, foreign export title, or
classic title shall be identified by the word “Original”, “Rebuilt”,
“Remanufactured”, “Unrecovered Theft”, “Rebodied”, “Foreign Export”,
or “Classic” printed in the upper right quadrant of the certificate
of title, in the space which is currently captioned “type of title”.
A rebodied title shall also identify on the front of the title the
year, make and model of the originally manufactured vehicle which
has been rebodied and display a notation that reads as follows:
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“This vehicle has been assembled with new major components licensed
by the original manufacturer.”
D. 1. To obtain an original certificate of title for a vehicle
that is being registered for the first time in this state which has
not been previously registered in any other state, the applicant
shall be required to deliver, as evidence of ownership, a
manufacturer’s certificate of origin properly assigned by the
manufacturer, distributor, or dealer licensed in this or any other
state shown thereon to be the last transferee to the applicant upon
a form to be prescribed and approved by Service Oklahoma. A
manufacturer’s certificate of origin shall contain:
a. the manufacturer’s serial or other identification
number,
b. date on which first sold by the manufacturer to the
dealer,
c. any distinguishing marks including model and the year
same was made,
d. a statement of any security interests upon the
vehicle, and
e. such other information as Service Oklahoma may
require.
2. The manufacturer’s certificate of origin shall have the
following security features:
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a. intaglio printing or security thread, with or without
watermark,
b. latent images,
c. fluorescent inks,
d. micro print, and
e. void background.
E. In the absence of a dealer’s or manufacturer’s number,
Service Oklahoma may assign such identifying number to the vehicle,
which shall be permanently stamped, burned, or pressed or attached
into the vehicle, and a certificate of title shall be delivered to
the applicant upon payment of all fees and taxes, and the remaining
copies shall be permanently filed and indexed by Service Oklahoma.
Service Oklahoma shall assign an identifying number to any rebuilt
vehicle if the vehicle identification number displayed on the
rebuilt vehicle does not accurately describe the vehicle as rebuilt.
The licensed operator, at the time of inspection of the rebuilt
vehicle pursuant to Section 1111 of this title, shall identify the
make, model, and year for the body to accurately describe the
rebuilt vehicle. At the time of the inspection, an appropriate
identifying number shall be permanently stamped, burned, pressed, or
attached on the rebuilt vehicle. The assigned identifying number
shall be recorded on the certificate of title for the rebuilt
vehicle. The dealer’s or manufacturer’s vehicle identification
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number on the rebuilt vehicle shall be preserved in the computer
files of Service Oklahoma for at least five (5) years.
F. When registering for the first time in this state a vehicle
which was not originally manufactured for sale in the United States,
to obtain a certificate of title, Service Oklahoma shall require the
applicant to deliver:
1. As evidence of ownership, if the vehicle has not previously
been titled in the United States, the documents constituting valid
proof of ownership in the country in which the vehicle was
originally purchased, together with a notarized translation of any
such documents; and
2. As evidence of compliance with federal law, copies of the
bond release letters for the vehicle issued by the United States
Environmental Protection Agency and the United States Department of
Transportation, together with a receipt issued by the Internal
Revenue Service indicating that the applicable federal gas guzzler
tax has been paid.
Service Oklahoma shall not issue a certificate of title for a
vehicle which is subject to the provisions of this paragraph without
the required documentation from agencies of the United States and
evidence of ownership. Upon receipt of an application without the
required documentation, Service Oklahoma shall return the
application to the applicant with notice that the certificate of
title may not be issued without the required documentation. Nothing
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in this paragraph shall prohibit Service Oklahoma from issuing
certificates of title for antique or classic vehicles not driven
upon the public streets, roads, or highways, for mini-trucks
registered pursuant to Section 1151.3 of this title, or for medium-
speed electric vehicles.
G. When registering in this state a vehicle which was titled in
another state and which title contains the name of a secured party
on the face of the other state certificate of title, or such state
certificate is being held by the secured party in that state or any
other state, Service Oklahoma or the licensed operator shall
complete a lien entry form as prescribed by Service Oklahoma. The
owner of such vehicle shall file an affidavit with Service Oklahoma
or the licensed operator stating that title to the vehicle is being
held by a secured party, has not been issued pursuant to the laws of
the state where titled, and that there is an existing lien or
encumbrance on the vehicle. The current name and address of the
secured party or lienholder shall also be stated in the affidavit.
The form of the affidavit shall be prescribed by Service Oklahoma
and contain any other information deemed necessary by Service
Oklahoma. A statement of the lien or encumbrance shall be included
on the Oklahoma certificate of title and the lien or encumbrance
shall be deemed continuously perfected as though it had been
perfected pursuant to Section 1110 of this title. For completing
the lien entry form and recording the security interest on the
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certificate of title, Service Oklahoma or the licensed operator
shall collect a fee of Three Dollars ($3.00) which shall be in
addition to other fees provided by the Oklahoma Vehicle License and
Registration Act. The fee, if collected by the licensed operator
pursuant to this subsection, shall be retained by the licensed
operator.
H. The charge for each certificate of title issued, except for
junked titles as defined in paragraph 4 of subsection B of this
section and foreign export titles, shall be Eleven Dollars ($11.0 0),
which charge shall be in addition to any other fees or taxes imposed
by law for such vehicle. One Dollar ($1.00) of each such charge
shall be deposited in the Oklahoma Tax Commission Reimbursement Fund
through December 31, 2022, and beginning January 1, 2023, it shall
be deposited in the Service Oklahoma Reimbursement Fund. However,
the charge shall not apply to any vehicle which is to be registered
in this state pursuant to the provisions of Section 1120 or 1133 of
this title and which was registered in another state at least sixty
(60) days prior to the time it is required to be registered in this
state. When an insurer requests a salvage or junk title in the name
of the insurer resulting from the settlement of a total loss claim
and upon presentation of appropriate proof of loss documentation as
required by Service Oklahoma, such transfer may be processed as one
title transaction, without first requiring issuance of a replacement
certificate of title in the name of the vehicle owner. The fee
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shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this
fee shall be deposited in the Oklahoma Tax Commission Reimbursement
Fund. The charge for a foreign export title shal l be One Hundred
Dollars ($100.00), which charge shall be in addition to any ot her
fees or taxes imposed by law for such vehicle. One Dol lar ($1.00)
of this fee shall be deposited in the Service Oklahoma Reimbursement
Fund.
I. The vehicle identification number of a junked vehicle shall
be preserved in the computer files of Service Oklahoma for a period
of not less than five (5) years. The charge of junked titles as
defined in paragraph 4 of subsection B of this section shall be Four
Dollars ($4.00). The fee remitted to the Tax Commission shall be
deposited in the Oklahoma Tax Commission Reimbursement Fund through
December 31, 2022, and beginning January 1, 2023, this fee shall be
deposited in the Service Oklahoma Reimbursement Fund.
J. If a vehicle is sold to a resident of another state
destroyed, dismantled, or ceases to be used as a vehicle, the owner
shall immediately notify Service Oklahoma. Absent evidence to the
contrary, failure to notify Service Oklahoma shall be prima facie
evidence that the vehicle has been in continuous operation in this
state.
K. If a vehicle is stolen, the owner shall immediately notify
the appropriate law enforcement agency. Immediately after receiving
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such notification, the law enforcement agency shall notify Service
Oklahoma.
L. Except for all-terrain vehicles, utility vehicles and
motorcycles used exclusively for off-road use, no title for an out-
of-state vehicle, except for foreign export titles or any commercial
truck or truck-tractor registered pursuant to Section 1120 of this
title which is engaged in interstate commerce or any trailer or
semitrailer registered pursuant to Section 1133 of this tit le which
is engaged in interstate commerce, shall be issued without an
inspection of such vehicle and payment of a fee of Four Dollars
($4.00) for such inspection; provided, Service Oklahoma may enter
into reciprocal agreements with other states for such inspections to
be performed at locations outside the boundaries of this state for
vehicles which:
1. Are offered for sale at auction;
2. Have been solely used as vehicles for rent under the
ownership of a licensed motor vehicle dealer or a person engaged in
the business of renting motor vehicles; or
3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall include a comparison of the vehicle
identification number on the vehicle with the number recorded on the
ownership records and the recording of the actual odometer reading
on the vehicle. The four-dollar fee shall be collected by the
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licensed operator or Service Oklahoma when the title is issued. The
licensed operator shall retain Two Dollars ($2.00). The remaining
Two Dollars ($2.00) shall be deposited in the Oklahoma Tax
Commission Reimbursement Fund through December 31, 2022, and
beginning January 1, 2023, this fee shall be deposited in the
Service Oklahoma Reimbursement Fund.
Service Oklahoma may allow the inspection to be performed at a
location out-of-state by another state’s department of motor
vehicles or state police.
M. No title for any out-of-state vehicle offered for sale at
salvage pools, salvage disposal sales, or an auction, or by a dealer
or a licensed automotive dismantler and parts recycler, shall be
issued without an inspection to compare the vehicle identification
number on the vehicle with the number recorded on the ownership
record and to record the actual odometer reading on the vehicle.
Upon request of the seller, person or entity conducting an auction,
dealer or licensed dismantler, the inspection shall be conducted at
the location or place of business of the sale, auction, dealer, or
the dismantler. The inspection shall be conducted by any licensed
operator or a duly authorized employee thereof; provided, if the
vehicle identification number on the vehicle offered for sale at
salvage pools, salvage disposal sales or a classic or antique
auction does not match the number recorded on the ownership record,
the inspection may be conducted at the location of or place of
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business of such sale or auction by any state, county or city law
enforcement officer. Service Oklahoma may enter into reciprocal
agreements with other states for such inspections to be performed at
locations outside the boundaries of this state for vehicles which:
1. Are offered for sale at auction;
2. Have been solely used as vehicles for rent under the
ownership of a licensed motor vehicle dealer or a person engaged in
the business of renting motor vehicles; or
3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall be certified upon forms prescribed by Service
Oklahoma. The name and other identification of the author ized
person conducting the inspection shall be legibly printed or typed
on the form. Prior to any inspection by any employee of a licensed
operator, the licensed operator shall notify Service Oklahoma of the
name and any other identification information requested by Service
Oklahoma of the authorized person. A signature specimen of the
authorized person shall be submitted to Service Oklahoma by the
employing licensed operator. If the authorization to inspect
vehicles is withdrawn or the employer-employee relationship is
terminated, the licensed operator, immediately, shall notify Service
Oklahoma and return any remaining inspection forms to Service
Oklahoma. The fee for the inspection shall be Four Dollars ($4.00).
The licensed operator shall retain Three Dollars ($3.00) of the fee.
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Fees received by a licensed operator or an authorized employee
thereof shall be handled and accounted for in the manner as
prescribed by law for any other fees paid to or received by a
licensed operator. Out-of-state vehicles brought into this state by
a person licensed in another state to sell new or used vehicles to
be sold within this state at a motor vehicle auction which is
limited to dealer-to-dealer transactions shall not be required to be
inspected, unless the vehicle is purchased by an Oklahoma dealer.
Any person licensed in another state to sell new or used motor
vehicles, who offers a motor vehicle for sale within this state at a
motor vehicle auction which is limited to dealer-to-dealer
transactions, shall not be within the definition of “owner” in
Section 1102 of this title, for purposes of Section 1101 et seq. of
this title.
N. A licensed motor vehicle dealer, upon payment of a fee of
Fifteen Dollars ($15.00), may reassign an out-of-state certificate
of title to a used motor vehicle provided such dealer obtains the
appropriate inspection form required by either subsection L or M of
this section and attaches the form to the out-of-state certificate
of title. Licensed operators shall be allowed to retain Two Doll ars
and twenty-five cents ($2.25) of the fee plus an additional Two
Dollars ($2.00) or Three Dollars ($3.00) as provided in subsections
L and M of this section for performance of the inspection. Two
Dollars ($2.00) of the fee shall be deposited in th e Service
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Oklahoma Reimbursement Fund. An out-of-state vehicle which has been
rebuilt shall be inspected pursuant to the provisions of Section
1111 of this title. Service Oklahoma shall train licensed operators
in interpreting vehicle identification numbers to assure that it
accurately describes the vehicle and to detect rollback or
alteration of the odometer. Failure of a licensed operator to
inspect the vehicle and make the required notations shall be a
misdemeanor punishable by a fine of not more than One Thousand
Dollars ($1,000.00) for the first offense and Five Thousand Dollars
($5,000.00) for the second offense or subsequent offense, or by
imprisonment in the county jail for not more than six (6) months, or
by both such fine and imprisonment.
O. The ownership of any unrecovered vehicle which has been
declared a total loss by an insurer because of theft shall be
transferred to the insurer by an unrecovered-theft vehicle title;
provided, the ownership of any such vehicle which has been declared
a total loss by an insurer licensed by the Insurance Department of
the State of Oklahoma this state and maintaining a multi-state motor
vehicle salvage processing center in this state shall be transferred
to the insurer by a salvage or an unrecovered-theft title without
the requirement of a visual inspection of the vehicle identification
number by the insurer. Upon recovery of the vehicle, the ownership
shall be transferred by an original title, salvage title, or junked
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title, as may be appropriate based upon an estimate of the amount of
loss submitted by the insurer.
P. When an insurance company makes a total loss settlement on a
total loss vehicle and the insurance company or a salvage pool
authorized by the insurance company is unable to obtain the properly
endorsed certificate of ownership or other evidence of ownership
acceptable to Service Oklahoma within thirty (30) days following
acceptance by the owner of an offer of an amount in settlement of a
total loss, that insurance company or salvage pool, on a form
provided by Service Oklahoma and signed under penalty of perjury,
may request Service Oklahoma to issue the applicable salvage title
for the vehicle. The request shall include information declaring
that the requester has made at least two written attempts to obtain
the certificate of ownership or other acceptable evidence of title.
Q. The owner of any vehicle which is incapable of operation or
use on the public roads and has no resale value, except as parts,
scrap, or junk, may deliver the certificate of title to the vehicle
to Service Oklahoma for cancellation. Upon verification that any
perfected lien against the vehicle has been released, the
certificate of title shall be canceled without any fee, charge, or
cost required from the owner. The vehicle identification numbers on
the certificates of title shall be preserved in the computer files
of Service Oklahoma for at least five (5) years from the date of
cancellation of the certificate of title. Service Oklahoma shall
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prescribe and provide an affidavit form to be completed by the owner
of any vehicle for which the certificate of title is canceled. No
title or registration shall subsequently be issued for a vehicle for
which the certificate of title has been surrendered pursuant to this
subsection. Service Oklahoma shall prescribe a form for the
transfer of ownership of a vehicle for which the certificate of
title has been canceled.
R. The owner of a vehicle which is not within the last ten (10)
model years, not roadworthy and not capable of repair for operation
or use on the roads and highways, or a vehicle which is being sold
to a scrap metal dealer pursuant to Section 11-92 of Title 2 of the
Oklahoma Statutes, shall transfer the vehicle only upon a
certificate of ownership prescribed by Service Oklahoma, if the
certificate of title to the vehicle is lost, has been canceled, or
otherwise not available. The prescribed owner ship form shall
include the names and addresses of the buyer and seller, the driver
license number or Social Security number of the seller, the make and
model of the vehicle, and the public vehicle identification number.
If there is no public vehicle iden tification number, the vehicle
shall be inspected by a law enforcement officer to verify the
absence of the number on the vehicle and the prescribed ownership
form shall include a signed statement, by such officer, verifying
the absence of the number.
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The certificate of ownership shall be completed in triplicate.
The buyer and seller shall each retain a copy. Within thirty (30)
days of the transaction, the seller shall submit one copy to Service
Oklahoma or a licensed operator accompanied with a fee of Four
Dollars ($4.00). One Dollar ($1.00) shall be retained by the
licensed operator and Three Dollars ($3.00) shall be deposited in
the Oklahoma Tax Commission Reimbursement Fund in the State Treasur y
through December 31, 2022, and beginning January 1, 2023, this fee
shall be deposited in the Service Oklahoma Reimbursement Fund.
Upon receipt of the certificate, Service Oklahoma shall verify
that any perfected lien upon the vehicle has been released. If the
lien is not released, Service Oklahoma shall mail notice of the
transfer to the lienholder at the lienholder’s last-known address.
If a certificate of title has been issued, it shall be canceled and
the vehicle identification number shall be preserved in the computer
of Service Oklahoma for at least five (5) years. The buyer of the
vehicle may not be sued and shall not be liable for monetary damages
to the lienholder,; however, the vehicle shall be subject to a valid
repossession by a lienholder.
S. Service Oklahoma shall notify the chief administrative
officer of the agency or department responsible for issuing motor
vehicle certificates of title in each state in the United States of
the types of motor vehicle certificate of title effective in
Oklahoma on and after January 1, 1989.
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T. When registering for the first time in this state a
remanufactured vehicle which has not been registered in any other
state since its remanufacture, before issuing a certificate of
title, Service Oklahoma shall require the applicant to deliver a
statement of origin from the remanufacturer.
U. If a vehicle is sold to a foreign buyer pursuant to the
provisions of the Automotive Dismantlers and Parts Recycler Act, the
licensed seller shall stamp the title with: “EXPORT ONLY.
NONTRANSFERABLE IN THE UNITED STATES.” The licensed seller shall
supply Service Oklahoma the title number, the vehicle identification
number and the foreign buyer’s bid identification number on a form
prescribed by Service Oklahoma. Service Oklahoma shall cancel the
title, and the vehicle identification number shall be preserved in
the computer files of Service Oklahoma for a period of not less than
five (5) years.
V. Service Oklahoma shall not be considered a necessary party
to any lawsuit which is instigated for the purpose of determining
ownership of a vehicle, wherein Service Oklahoma’s only involvement
would be to issue title, and the court shall issue an order
dismissing Service Oklahoma from the pending action. In the event
no other party or lienholder can be ident ified as to ownership or
claim, Service Oklahoma shall accept an affidavit of ownership from
the party claiming ownership and issue proper title thereon.
SECTION 3. This act shall become effective August 1, 2023.
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SECTION 4. It being immediately necessary f or the preservation
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval."
Passed the House of Representatives the 25th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of _______ ___, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 576 By: Montgomery of the Senate
and
Boatman of the House
[ motor vehicles - tax exemptions - foreign export
title - certificates - form – fee - exception -
effective date -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 5. AMENDATORY 68 O.S. 2021, Section 2105, is
amended to read as follows:
Section 2105. An original or a transfer certificate of title or
a foreign export certificate of title, as provided for in Section
1105 of Title 47 of the Oklahoma Statutes, shall be issued without
the payment of the excise tax levied by Section 2101 et seq. of this
title for:
1. Any vehicle owned by a nonresident person who operate s
principally in some ot her state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person formerly
living in another state, who h as owned and registered the vehicle in
such other state of residence at least sixty (60) days prior to the
time it is required to be registered in this state; pro vided,
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however, this paragraph s hall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by the State of Oklahoma, by any of
the political subdivisions thereof, or by a fire department
organized pursuant to Section 592 of Title 18 of the Oklahoma
Statutes to be used for the purposes of the fire department, o r a
vehicle which is the subject of a lease or lease -purchase agreement
executed between the person seeking an or iginal or transfer
certificate of title for the v ehicle and a municipality, count y,
school district, or fire protection district. The person s eeking an
original or transfer certificate of title shall provide adequate
proof that the vehicle is subject to a lease or lease-purchase
agreement with a municip ality, county, school district, or fire
protection district at the time the excise tax levied would
otherwise be payable. The Oklahoma Tax Commission shall have the
authority to determine what constitutes a dequate proof as required
by this section;
4. Any vehicle, the legal ownership o f which is obtained by the
applicant for a certificate of titl e by inheritance;
5. Any used motor vehicle, travel trailer, or commercial
trailer which is owned and being offe red for sale by a person
licensed as a dealer to sell the same, under the provisi ons of the
Oklahoma Vehicle License and Registration Act:
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a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax
paid thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been reg istered in some other state but is
not the latest manufactured model.
Provided, the provisions of this paragraph shall not be
construed as allowing an exemption to any person not licensed as a
dealer of used motor vehicles, travel trailers, or commercial
trailers, or as an automotive dismantler and parts recycler in this
state;
6. Any vehicle which was purchased by a person licensed to sell
new or used motor vehicles in anothe r state:
a. if such vehicle is not purchased for operation or
resale in this state, and
b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreeme nt between the
duly authorized agent of the Tax Commission and the
licensing state;
7. Any vehicle, the ownership of which was obtained by the
lienholder or mortgagee under or by foreclosure of a lien or
mortgage in the manner provided by law or to the in surer under
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subrogated rights arising by reason of loss under an insuranc e
contract;
8. Any vehicle whic h is taxed on an ad valorem basis;
9. Any vehicle or motor ve hicle, the legal ownership of which
is obtained by transfers:
a. from one corporation to another corporation purs uant
to a reorganization. As used in this subsec tion the
term “reorganization” means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation wh en
the consideration is solely all or a part of the
voting stock of the a cquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the wi nding up, dissolution, or
liquidation of a corporation only when there is a
distribution in kind to the sharehold ers of the
property of such corporation,
c. to a corporation where the former own ers of the
vehicle or motor vehicle transferred are, immediate ly
after the transfer, in control of the corporation, and
the stock or securities receive d by each is
substantially in proportion to the interest in the
vehicle or motor vehicle prior to the tra nsfer,
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d. to a partnership if the former owners of the vehicle
or motor vehicle transferred are, immediately after
the transfer, members of such partne rship and the
interest in the partnership received by each is
substantially in proportion to the interest in the
vehicle or motor vehicle prior to the transfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liabilit y company if the former owners of
the vehicle or motor vehicle transferred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substanti ally in
proportion to the interest in the vehicle or motor
vehicle prior to the transfer, or
g. from a limited liability company to the members
thereof when made in th e dissolution of such
partnership;
10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor vehicles without a driver,
provided:
a. the vehicle shall not be rented to the same person for
a period exceeding ninety (9 0) days,
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b. any such vehicle exempted from the excise tax by these
provisions shall not b e placed under any type of lease
agreement,
c. on any such vehicle exempt ed from the excise tax by
this subsection that is reregistered in this state,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date o f issuance of the
original title, the seller shall pay immediately the
amount of excise tax wh ich would have been due had
this exemption not been granted plus a penalty of
twenty percent (20%). No such exci se tax or penalty
shall become due and payable if the vehicle is sold or
transferred in a condition either physical or
mechanical which would r ender it eligible for a
salvage title pursuant to law or if the vehicle is
sold and transferred in this state at any time prior
to the expiration of twelve (12) m onths:
(1) to the manufacturer o f the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the
same line-make of the vehicle being purchased, or
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d. when this exemption is cla imed, the Tax Commission
shall issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as
provided in this section is made,
(2) the sale is made to a perso n specified in
division (1) or (2) of subparagraph c of this
paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles herein exempted shall be
treated as though the excise tax has be en paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the nam e of the original manufacturer or assigned to
the original manufacturer and issued by any state and transferred t o
a licensed, franchised Oklahoma motor vehicle d ealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
franchise of the same line-make as the vehicle being registered;
12. Any new motor vehicle, regi stered in the name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to Section 1116.1 of Title 47 of the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individual. The aut horization for
such use shall not exceed four (4) months which shall not be renew ed
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or the exemption provided by this subsection shall not be
applicable. The exemption provided by this subsection shall not be
applicable to a transf er of ownership or regis tration subsequent to
the first registration of t he vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial traile r of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the same which hold s a franchise of the same line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subje ct of a lease or lease-
purchase agreement and which the ownership of such vehicle is bein g
obtained by the lessee , if the vehicle excise tax was paid at the
time of the initial lease or lease -purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization
which is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 50 1(c)(3), and which
is primarily funded by a fraternal or civic service
organization with at le ast one hundred local chapters
or clubs, and
b. is designed and used to provide mobile he alth
screening services to the general public at no cost to
the recipient, and for which no reimbursement of any
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kind is received from any health insurance provider,
health maintenance organization, or governmental
program;
16. Any vehicle which is purcha sed by an individual who has
been honorably discharged from active servic e in any branch of the
Armed Forces of the United States or Oklahoma National Guard and who
has been certified by the United States Department of Veterans
Affairs, its successor, or t he Armed Forces of the U nited States to
be a disabled veteran in receipt of compensation at the one -hundred-
percent rate for a permanent disability sustained through m ilitary
action or accident resulting from disease contracted while in such
active service and registered with the veterans registry created by
the Oklahoma Department of Veterans Affairs; provid ed, that if the
veteran has previously received exemption purs uant to this
paragraph, no registration with the veterans registry shall be
required. This exemption may not be claimed by an individual for
more than one vehicl e in a consecutive three -year period, unless the
vehicle is a replacement for a vehicle which was destroyed and
declared by the insurer to be a total loss claim. The Tax
Commission shall promulgate any rule s necessary to implement the
provisions of this s ection; or
17. Any vehicle on w hich ownership is transferred by a
repossessor directly back t o the owner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by
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the repossessor within thirty (30) days of issuance of the
repossession title and shall be i dentical to that reflected in the
vehicle title record immedia tely prior to the repossession ; or
18. Any vehicle approved by the Oklahoma T ax Commission for the
issuance of a foreign export certificate of title, as provided in
Section 1105 of Title 47 of the Oklahoma Statutes.
SECTION 6. AMENDATORY 47 O.S. 2021, Section 1105, as
last amended by Section 110, Chapter 282, O.S.L. 2022 (47 O.S. Supp.
2022, Section 1105), is amended to read as follows:
Section 1105. A. As used in the Oklahoma Vehicle License and
Registration Act:
1. “Salvage vehicle” means any vehicle which is within the last
ten (10) model years and which has been damaged by collision or
other occurrence to the extent that the cost of repairing the
vehicle for safe operation on the highway exceeds sixty percent
(60%) of its fair market value, as defined by Sec tion 1111 of this
title, immediately prior to the damage. For purposes of this
section, actual repair costs shall only include labor and parts for
actual damage to the suspension, motor, transmission, frame or
unibody and designated structural components;
2. “Rebuilt vehicle” means any salvage vehicle which has been
rebuilt and inspected for the purpose of registration and title;
3. “Flood-damaged vehicle” means a salvage or rebuilt vehicle
which was damaged by flooding or a vehicle which was submerged a t a
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level to or above the dashboard of the vehicle and on which an
amount of loss was paid by the insurer;
4. “Unrecovered-theft vehicle” means a vehicle which has been
stolen and not yet recovered;
5. “Recovered-theft vehicle” means a vehicle, including a
salvage or rebuilt vehicle, which was recovered from a theft; and
6. “Junked vehicle” means any vehicle which is incapable of
operation or use on the highway, has no resale value except as a
source of parts or scrap and has an eighty percent (80%) loss in
fair market value; and
7. “Foreign export vehicle ” means any motor vehicle purchased
by an individual or entity doing business i n this state if the
vehicle is contracted to be shipped to a destination outside of the
United States or its territories or its tribal lands , as defined in
25 U.S.C., Section 300 1(15), within one hundred twenty (120) days of
purchase.
B. The owner of every vehicle in this state shall possess a
certificate of title as proof of ownership of such vehicle, except
those vehicles registered pursuant to Section 1120 of this title and
trailers registered pursuant to Section 1133 of this title,
previously titled by anyone in another state and engaged in
interstate commerce, and except as provided in subsection M of this
section. Except for owners that possess an agricultural exemption
permit pursuant to Section 1358.1 of Title 68 of the Oklahoma
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Statutes, the owner of an all-terrain vehicle or a motorcycle used
exclusively off roads or highways in this state which is purchased
or the ownership of which is transferred on or after July 1, 2005,
and the owner of a utility vehicle used exclusively off roads and
highways in this state which is purchased or the ownership of which
is transferred on or after July 1, 2008, shall possess a certificate
of title as proof of ownership. Any person possessing an
agricultural exemption permit and owning an all-terrain vehicle or a
motorcycle used exclusively off roads or highways in this state
which is purchased or the ownership of which is transferred on or
after July 1, 2008, shall possess a certificate of title as proof of
ownership. Upon receipt of proper application information by such
owner, Service Oklahoma shall issue an original or transfer
certificate of title. Until July 1, 2008, any security interest in
an all-terrain vehicle that attached and was perfected before July
1, 2005, and that has not otherwise terminated shall remain
perfected, and shall take priority over any subsequently perfe cted
security interest in the same all-terrain vehicle, notwithstanding
that a certificate of title may have been issued with respect to the
same all-terrain vehicle on or after July 1, 2005, and that a lien
may have been recorded on said the certificate of title. There
shall be eight nine types of certificates of title:
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1. Original title for any motor vehicle which is not a
remanufactured, salvage, unrecovered-theft, rebuilt, rebodied,
foreign export, or junked vehicle;
2. Salvage title for any motor vehicle which is a salvage
vehicle or is specified as a salvage vehicle or the equivalent
thereof on a certificate of title from another state;
3. Rebuilt title for any motor veh icle which is a rebuilt
vehicle;
4. Junked title for any motor vehicle which is a junked vehicle
or is specified as a junked vehicle or the equivalent thereof on a
certificate of title from another state;
5. Classic title for any motor vehicle, except a junked
vehicle, which is twenty-five (25) model years or older;
6. Remanufactured title for any vehicle which is a
remanufactured vehicle;
7. Unrecovered-theft title for any motor vehicle which has been
stolen and not recovered; and
8. Rebodied title for any motor vehicle which is a rebodied
vehicle; and
9. Foreign export title for any foreign export vehicle. The
Oklahoma Tax Commission shall prescribe a form to be completed and
submitted under oath together with the purchase contract for the
vehicle and proof of commitment to ship the vehicle by common
carrier vessel, air, rail, or any other comm on carrier for hire.
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Upon approval by the Commission and payment of the required
certificate of title fee, the Commission shall issue a foreign
export certificate of title.
Application for a certificate of title, whether the initial
certificate of title or a duplicate, may be made to Service Oklahoma
or any licensed operator. When application is made with a licensed
operator, the application information shall be transmitted either
electronically or by mail to Service Oklahoma by the licensed
operator. If the application informatio n is transmitted
electronically, the licensed operator shall forward the required
application along with evidence of ownership, where required, by
mail. Where the transmission of application information cannot be
performed electronically, Service Oklahoma is authorized to provide
postage paid envelopes to licensed operators for the purpose of
mailing the application along with evidence of ownership, where
required. Service Oklahoma shall upon receipt of proper application
information issue an Oklahoma certificate of title. The
certificates may be mailed to the applicant. Upon issuance of a
certificate of title, Service Oklahoma shall provide the appropriate
licensed operator with confirmation of such issuance.
C. 1. The application for certificate of title shall be upon a
blank form furnished by Service Oklahoma, containing:
a. a full description of the vehicle,
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b. the manufacturer’s serial or other identification
number,
c. the motor number and the date on which first sold by
the manufacturer or dealer to the owner,
d. any distinguishing marks,
e. a statement of the applicant’s source of title,
f. any security interest upon the vehicle, and
g. such other information as Service Oklahoma may
require.
2. The application for a certificate of title for a vehicle
which is within the last seven (7) model years shall require a
declaration as to whether the vehicle has been damaged by collision
or other occurrence and whether the vehicle has been recovered from
theft and the extent of the damage to the vehicle. The declaration
shall be made by the owner of a vehicle if:
a. the vehicle has been damaged or stolen,
b. the owner did or did not receive any payment for the
loss from an insurer, or
c. the vehicle is titled or registered in a state that
does not classify the vehicle or brand the title
because of damage to or loss of the vehicle similar to
the classifications or brands utilized by this state.
The declaration shall be based upon the best information and
knowledge of the owner and shall be in addition to the requirements
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specified in paragraph 1 of this subsection. Service Oklahoma shall
not issue a certificate of title for a vehicle which is subject to
the provisions of this paragraph without the required declaration,
completed and signed by the owner of the vehicle. Upon receipt of
an application without the properly completed declaration, Service
Oklahoma shall return the application to the applicant with notice
that the title may not be issued without the required declaration.
Nothing in this paragraph shall prohibit Service Oklahoma from
recognizing the type of or brand on a title or other ownership
document issued by another state or the inspection conducted in
another state and issuing the appropriate certificate of title for
the vehicle.
3. The certificate of title shall have the following security
features:
a. intaglio printing or security thread, with or without
watermark,
b. latent images,
c. fluorescent inks,
d. micro print,
e. void background, and
f. color coding.
4. Each title issued pursuant to the provisions of the Oklahoma
Vehicle License and Registration Act shall be color coded as
determined by Service Oklahoma.
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5. The certificate of title shall be of such size and design
and color as Service Oklahoma may direct pursuant to the provisions
of this section. The title shall be on colored paper or other
material as designated by Service Oklahoma and be of such intensity
or hue as will allow easy identification as to whether the title is
an original title, a salvage title, a rebuilt title, remanufactured
title, rebodied title, foreign export title, or a junked title. The
type of title shall be identified on the front of the certificate of
title. The original title, rebuilt title, remanufactured title, an
unrecovered-theft title, rebodied title, foreign export title, or
classic title shall be identified by the word “Original”, “Rebuilt”,
“Remanufactured”, “Unrecovered Theft”, “Rebodied”, “Foreign Export”,
or “Classic” printed in the upper right quadrant of the certificate
of title, in the space which is currently captioned “type of title”.
A rebodied title shall also identify on the front of the title the
year, make and model of the originally manufactured vehicle which
has been rebodied and display a notation that reads as follows:
“This vehicle has been assembled with new major components licensed
by the original manufacturer.”
D. 1. To obtain an original certificate of title for a vehicle
that is being registered for the first time in this state which has
not been previously registered in any other state, the applicant
shall be required to deliver, as evidence of ownership, a
manufacturer’s certificate of origin properly assigned by the
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manufacturer, distributor, or dealer licensed in this or any other
state shown thereon to be the last transferee to the applicant upon
a form to be prescribed and approved by Service Oklahoma. A
manufacturer’s certificate of origin shall contain:
a. the manufacturer’s serial or other identification
number,
b. date on which first sold by the manufacturer to the
dealer,
c. any distinguishing marks including model and the year
same was made,
d. a statement of any security interests upon the
vehicle, and
e. such other information as Service Oklahoma may
require.
2. The manufacturer’s certificate of origin shall have the
following security features:
a. intaglio printing or security thread, with or without
watermark,
b. latent images,
c. fluorescent inks,
d. micro print, and
e. void background.
E. In the absence of a dealer’s or manufacturer’s number,
Service Oklahoma may assign such identifying number to the vehicle,
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which shall be permanently stamped, burned, or pressed or attached
into the vehicle, and a certificate of title shall be delivered to
the applicant upon payment of all fees and taxes, and the remaining
copies shall be permanently filed and indexed by Service Oklahoma.
Service Oklahoma shall assign an identifying number to any rebuilt
vehicle if the vehicle identification number displayed on the
rebuilt vehicle does not accurately describe the vehicle as rebuilt.
The licensed operator, at the time of inspection of the rebuilt
vehicle pursuant to Section 1111 of this title, shall identify the
make, model, and year for the body to accurately describe the
rebuilt vehicle. At the time of the inspection, an appropriate
identifying number shall be permanently stamped, burned, pressed, or
attached on the rebuilt vehicle. The assigned identifying number
shall be recorded on the certificate of title for the rebuilt
vehicle. The dealer’s or manufacturer’s vehicle identification
number on the rebuilt vehicle shall be preserved in the computer
files of Service Oklahoma for at least five (5) years.
F. When registering for the first time in this state a vehicle
which was not originally manufactured for sale in the United States,
to obtain a certificate of title, Service Oklahoma shall require the
applicant to deliver:
1. As evidence of ownership, if the vehicle has not previously
been titled in the United States, the documents constituting valid
proof of ownership in the country in which the vehicle was
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originally purchased, together with a notarized translation of any
such documents; and
2. As evidence of compliance with federal law, copies of the
bond release letters for the vehicle issued by the United States
Environmental Protection Agency and the United States Department of
Transportation, together with a receipt issued by the Internal
Revenue Service indicating that the applicable federal gas guzzler
tax has been paid.
Service Oklahoma shall not issue a certificate of title for a
vehicle which is subject to the provisions of this paragraph without
the required documentation from agencies of t he United States and
evidence of ownership. Upon receipt of an application without the
required documentation, Service Oklahoma shall return the
application to the applicant with notice that the certificate of
title may not be issued without the required documentation. Nothing
in this paragraph shall prohibit Service Oklahoma from issuing
certificates of title for antique or classic vehicles not driven
upon the public streets, roads, or highways, for mini-trucks
registered pursuant to Section 1151.3 of this title, or for medium-
speed electric vehicles.
G. When registering in this state a vehicle which was titled in
another state and which title contains the name of a secured party
on the face of the other state certificate of title, or such state
certificate is being held by the secured party in that state or any
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other state, Service Oklahoma or the licensed operator shall
complete a lien entry form as prescribed by Service Oklahoma. The
owner of such vehicle shall file an affidavit with Service Oklahoma
or the licensed operator stating that title to the vehicle is being
held by a secured party, has not been issued pursuant to the laws of
the state where titled, and that there is an existing lien or
encumbrance on the vehicle. The current name and address of the
secured party or lienholder shall also be stated in the affidavit.
The form of the affidavit shall be prescribed by Service Oklahoma
and contain any other information deemed necessary by Service
Oklahoma. A statement of the lien or encumbrance shall be included
on the Oklahoma certificate of title and the lien or encumbrance
shall be deemed continuously perfected as though it had been
perfected pursuant to Section 1110 of this title. For completing
the lien entry form and recording the security interest on the
certificate of title, Service Oklahoma or the licensed operator
shall collect a fee of Three Dollars ($3.00) which shall be in
addition to other fees provided by the Oklahoma Vehicle License and
Registration Act. The fee, if collected by the licensed operator
pursuant to this subsection, shall be retained by the licensed
operator.
H. The charge for each certificate of title issued, except for
junked titles and foreign export titles as defined in paragraph 4 of
subsection B of this s ection, shall be Eleven Dollars ($11.0 0),
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which charge shall be in addition to any other fees or taxes imposed
by law for such vehicle. One Dollar ($1.00) of each such charge
shall be deposited in the Oklahoma Tax Commission Reimbursement Fund
through December 31, 2022, and beginning January 1, 2023, it shall
be deposited in the Service Oklahoma Reimbursement Fund. However,
the charge shall not apply to any vehicle which is to be registered
in this state pursuant to the provisions of Section 1120 or 1133 of
this title and which was registered in another state at least sixty
(60) days prior to the time it is required to be registered in this
state. When an insurer requests a salvage or junk title in the name
of the insurer resulting from the settlement of a total loss claim
and upon presentation of appropriate proof of loss documentation as
required by Service Oklahoma, such transfer may be processed as one
title transaction, without first requiring issuance of a replacement
certificate of title in the name of the vehicle owner. The fee
shall be Twenty-two Dollars ($22.00). Two Dollars ($2.00) of this
fee shall be deposited in the Oklahoma Tax Commission Reimbursement
Fund. The charge for a foreign export title shal l be One Hundred
Dollars ($100.00), which charge shall b e in addition to any ot her
fees or taxes imposed by law for such vehicle. One Dollar ($1.00)
of this fee shall be deposited in the Tax Commission Reimbursement
Fund.
I. The vehicle identification number of a junked vehicle shall
be preserved in the computer files of Service Oklahoma for a period
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of not less than five (5) years. The charge of junked titles as
defined in paragraph 4 of subsection B of this section shall be Four
Dollars ($4.00). The fee remitted to the Tax Commission shall be
deposited in the Oklahoma Tax Commission Reimbursement Fund through
December 31, 2022, and beginning January 1, 2023, this fee shall be
deposited in the Service Oklahoma Reimbursement Fund.
J. If a vehicle is sold to a resident of another state
destroyed, dismantled, or ceases to be used as a vehicle, the owner
shall immediately notify Service Oklahoma. Absent evidence to the
contrary, failure to notify Service Oklahoma shall be prima facie
evidence that the vehicle has been in continuous operation in this
state.
K. If a vehicle is stolen, the owner shall immediately notify
the appropriate law enforcement agency. Immediately after receiving
such notification, the law enforcement agency shall notify Service
Oklahoma.
L. Except for all-terrain vehicles, utility vehicles and
motorcycles used exclusively for off-road use, no title for an out-
of-state vehicle, except for foreign export titles or any commercial
truck or truck-tractor registered pursuant to Section 1120 of this
title which is engaged in interstate commerce or any trailer or
semitrailer registered pursuant to Section 1133 of this tit le which
is engaged in interstate commerce, shall be issued without an
inspection of such vehicle and payment of a fee of Four Dollars
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($4.00) for such inspection; provided, Service Oklahoma may enter
into reciprocal agreements with other states for such inspections to
be performed at locations outside the boundaries of this state for
vehicles which:
1. Are offered for sale at auction;
2. Have been solely used as vehicles for rent under the
ownership of a licensed motor vehicle dealer or a person engaged in
the business of renting motor vehicles; or
3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall include a comparison of the vehicle
identification number on the vehicle with the number recorded on the
ownership records and the recording of the actual odometer reading
on the vehicle. The four-dollar fee shall be collected by the
licensed operator or Service Oklahoma when the title is issued. The
licensed operator shall retain Two Dollars ($2.00). The remaining
Two Dollars ($2.00) shall be deposited in the Oklahoma Tax
Commission Reimbursement Fund through December 31, 2022, and
beginning January 1, 2023, this fee shall be deposited in the
Service Oklahoma Reimbursement Fund.
Service Oklahoma may allow the inspection to be performed at a
location out-of-state by another state’s department of motor
vehicles or state police.
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M. No title for any out-of-state vehicle offered for sale at
salvage pools, salvage disposal sales, or an auction, or by a dealer
or a licensed automotive dismantler and parts recycler, sh all be
issued without an inspection to compare the vehicle identification
number on the vehicle with the num ber recorded on the ownership
record and to record the actual odometer reading on the vehicle.
Upon request of the seller, person or entity conduct ing an auction,
dealer or licensed dismantler, the inspection shall be conducted at
the location or place of business of the sale, auction, dealer, or
the dismantler. The inspection shall be conducted by any licensed
operator or a duly authorized employee thereof; provided, if the
vehicle identification number on the vehicle offered for sale at
salvage pools, salvage disposal sales or a classic or antique
auction does not match the number recorded on the ownership record,
the inspection may be conducted at the location of or place of
business of such sale or auction by any state, county or city law
enforcement officer. Service Oklahoma may enter into reciprocal
agreements with other states for such inspections to be performed at
locations outside the boundaries of this state for vehicles which:
1. Are offered for sale at auction;
2. Have been solely used as vehicles for rent under the
ownership of a licensed motor vehicle dealer or a person engaged in
the business of renting motor vehicles; or
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3. Have not been registered in this or any other state for more
than one (1) year.
The inspection shall be certified upon forms prescribed by Service
Oklahoma. The name and other identification of the author ized
person conducting the inspection shall be legibly printed or typed
on the form. Prior to any inspection by any employee of a licensed
operator, the licensed operator shall notify Service Oklahoma of the
name and any other identification information requested by Service
Oklahoma of the authorized person. A signature specimen of the
authorized person shall be submitted to Service Oklahoma by the
employing licensed operator. If the authorization to inspect
vehicles is withdrawn or the employer-employee relationship is
terminated, the licensed operator, immediately, shall notify Service
Oklahoma and return any remaining inspection forms to Service
Oklahoma. The fee for the inspection shall be Four Dollars ($4.00).
The licensed operator shall retain Three Dollars ($3.00) of the fee.
Fees received by a licensed operator or an authorized employee
thereof shall be handled and accounted for in the manner as
prescribed by law for any other fees paid to or received by a
licensed operator. Out-of-state vehicles brought into this state by
a person licensed in another state to sell new or used vehicles to
be sold within this state at a motor vehicle auction which is
limited to dealer-to-dealer transactions shall not be required to be
inspected, unless the vehicle is purchased by an Oklahoma dealer.
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Any person licensed in another state to sell new or used motor
vehicles, who offers a motor vehicle for sale within this state at a
motor vehicle auction which is limited to dealer-to-dealer
transactions, shall not be within the definition of “owner” in
Section 1102 of this title, for purposes of Section 1101 et seq. of
this title.
N. A licensed motor vehicle dealer, upon payment of a fee of
Fifteen Dollars ($15.00), may reassign an out-of-state certificate
of title to a used motor vehicle provided such dealer obtains the
appropriate inspection form required by either subsection L or M of
this section and attaches the form to the out-of-state certificate
of title. Licensed operators shall be allowed to retain Two Doll ars
and twenty-five cents ($2.25) of the fee plus an additional Two
Dollars ($2.00) or Three Dollars ($3.00) as provided in subsections
L and M of this section for performance of the inspection. Two
Dollars ($2.00) of the fee shall be deposited in th e Service
Oklahoma Reimbursement Fund. An out-of-state vehicle which has been
rebuilt shall be inspected pursuant to the provisions of Section
1111 of this title. Service Oklahoma shall train licensed operators
in interpreting vehicle identification numbers to assure that it
accurately describes the vehicle and to detect rollback or
alteration of the odometer. Failure of a licensed operator to
inspect the vehicle and make the required notations shall be a
misdemeanor punishable by a fine of not more than One Thousand
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Dollars ($1,000.00) for the first offense and Five Thousand Dollars
($5,000.00) for the second offense or subsequent offense, or by
imprisonment in the county jail for not more than six (6) months, or
by both such fine and imprisonment.
O. The ownership of any unrecovered vehicle which has been
declared a total loss by an insurer because of theft shall be
transferred to the insurer by an unrecovered-theft vehicle title;
provided, the ownership of any such vehicle which has been declared
a total loss by an insurer licensed by the Insurance Department of
the State of Oklahoma this state and maintaining a multi-state motor
vehicle salvage processing center in this state shall be transferred
to the insurer by a salvage or an unrecovered-theft title without
the requirement of a visual inspection of the vehicle identification
number by the insurer. Upon recovery of the vehicle, the ownership
shall be transferred by an original title, salvage title, or junked
title, as may be appropriate based upon an estimate of the amount of
loss submitted by the insurer.
P. When an insurance company makes a total loss settlement on a
total loss vehicle and the insurance company or a salvage pool
authorized by the insurance company is unable to obtain the properly
endorsed certificate of ownership or other evidence of ownership
acceptable to Service Oklahoma within thirty (30) days following
acceptance by the owner of an offer of an amount in settlement of a
total loss, that insurance company or salvage pool, on a form
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provided by Service Oklahoma and signed under penalty of perjury,
may request Service Oklahoma to issue the applicable salvage title
for the vehicle. The request shall include information declaring
that the requester has made at least two written attempts to obtain
the certificate of ownership or other acceptable evidence of title.
Q. The owner of any vehicle which is incapable of operation or
use on the public roads and has no resale value, except as parts,
scrap, or junk, may deliver the certificate of title to the vehicle
to Service Oklahoma for cancellation. Upon verification that any
perfected lien against the vehicle has been released, the
certificate of title shall be canceled without any fee, charge, or
cost required from the owner. The vehicle identification numbers on
the certificates of title shall be preserved in the computer files
of Service Oklahoma for at least five (5) years from the date of
cancellation of the certifi cate of title. Service Oklahoma shall
prescribe and provide an affidavit form to be completed by the owner
of any vehicle for which the certificate of title is canceled. No
title or registration shall subsequently be issued for a vehicle for
which the certificate of title has been surrendered pursuant to this
subsection. Service Oklahoma shall prescribe a form for the
transfer of ownership of a vehicle for which the certificate of
title has been canceled.
R. The owner of a vehicle which is not within the last ten (10)
model years, not roadworthy and not capable of repair for operation
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or use on the roads an d highways, or a vehicle which is being sold
to a scrap metal dealer pursuant to Section 11-92 of Title 2 of the
Oklahoma Statutes, shall transfer the vehicle only upon a
certificate of ownership prescribed by Service Oklahoma, if the
certificate of title to the vehicle is lost, has been canceled, or
otherwise not available. The prescribed owner ship form shall
include the names and addresses of the buyer and seller, the driver
license number or Social Security number of the seller, t he make and
model of the vehicle, and the public vehicle identification number.
If there is no public vehicle iden tification number, the vehicle
shall be inspected by a law enforcement officer to verify the
absence of the number on the vehicle and the pre scribed ownership
form shall include a signed statement, by such officer, verifying
the absence of the number.
The certificate of ownership shall be completed in triplicate.
The buyer and seller shall each retain a copy. Within thirty (30)
days of the transaction, the seller shall submit one copy to Service
Oklahoma or a licensed operator accompanied with a fee of Four
Dollars ($4.00). One Dollar ($1.00) shall be retained by the
licensed operator and Three Dollars ($3.00) shall be deposited in
the Oklahoma Tax Commission Reimbursement Fund in the State Treasur y
through December 31, 2022, and beginning January 1, 2023, this fee
shall be deposited in the Service Oklahoma Reimbursement Fund.
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Upon receipt of the certificate, Service Oklahoma shall verify
that any perfected lien upon the vehicle h as been released. If the
lien is not released, Service Oklahoma shall mail notice of the
transfer to the lienholder at the l ienholder’s last-known address.
If a certificate of title has been issued, it shall be canceled and
the vehicle identification number shall be preserved in the computer
of Service Oklahoma for at least five (5) years. The buyer of the
vehicle may not be sued and shall not be liable for monetary damages
to the lienholder,; however, the vehicle sh all be subject to a valid
repossession by a lienholder.
S. Service Oklahoma shall notify the chief administrative
officer of the agency or department responsible for issuing motor
vehicle certificates of title in each state in the United States of
the types of motor vehicle certificate of title effective in
Oklahoma on and after January 1, 1989.
T. When registering for the first time in this state a
remanufactured vehicle which has not been registered in any other
state since its remanufacture, before issuing a certificate of
title, Service Oklahoma shall require the applicant to deliver a
statement of origin from the remanufacturer.
U. If a vehicle is sold to a foreign buyer pursuant to the
provisions of the Automotive Dismantlers and Parts Recycler Act, the
licensed seller shall stamp the title with: “EXPORT ONLY.
NONTRANSFERABLE IN THE UNITED STATES.” The licensed seller shall
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supply Service Oklahoma the title number, the vehicle identification
number and the foreign buyer’s bid identification number on a form
prescribed by Service Oklahoma. Service Oklahoma shall cancel the
title, and the vehicle identification number shall be preserved in
the computer files of Service Oklahoma for a period of not less than
five (5) years.
V. Service Oklahoma shall not be considered a necessary party
to any lawsuit which is instigated for the purpose of determining
ownership of a vehicle, wherein Service Oklahoma’s only involvement
would be to issue title, and the court shall issue an order
dismissing Service Oklahoma from the pending action. In the event
no other party or lienholder can be ident ified as to ownership or
claim, Service Oklahoma shall accept an affidavit of ownership from
the party claiming ownership and issue proper title thereon.
SECTION 7. This act shall become effective July 1, 2023.
SECTION 8. It being immediately necessary f or the preservation
of the public peace, health or safety, an emergency is here by
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the Senate the 8th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2023.
Presiding Officer of the House
of Representatives