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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 983 By: Jech
AS INTRODUCED
An Act relating to sales and use tax; amending 68
O.S. 2021, Sections 1355 and 1404, which relate to
exemptions; modifying exemption for pu rchase of motor
vehicle; updating statutory references; providing an
effective date; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
amended to read as follows:
Section 1355. There are hereby specifically exempted from the
tax levied pursuant to the provisions of Section 1350 et seq. of
this title:
1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
mixture of methanol an d gasoline containing at least eighty -five
percent (85%) methanol, compressed natural gas, liquefied natural
gas, or liquefied petroleum gas on which the Motor Fuel Tax,
Gasoline Excise Tax, Special F uels Tax or the fee in lieu of Special
Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or
Section 701 et seq. of this title has been, or will be paid;
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2. For the sale of motor vehicles or any optional equipment or
accessories attached to mo tor vehicles on which the Oklahoma Motor
Vehicle Excise Tax levied in Section 2101 et seq. of this title has
been, or will be paid , all but a portion of the levy provided under
Section 1354 of this title, equal to one and twenty -five-hundredths
percent (1.25%) of the gross receipts of such sales. Provided, the
sale of motor vehicles shall not be subject to any sales and use
taxes levied by cities, counties or other jurisdictions of the
state;
3. Sale of crude petroleum or natural or casinghead gas and
other products subject to gross production tax pursuant to the
provisions of Section 1001 et seq. and Section 1101 et seq. of this
title. This exemption shall not apply when such products are sold
to a consumer or user for consumption or use, except when use d for
injection into the earth for the purpose of promot ing or
facilitating the production of oil or gas. This paragraph shall not
operate to increase or repeal the gross production tax levied by the
laws of this state;
4. Sale of aircraft on which the t ax levied pursuant to the
provisions of Sections 6001 th rough 6007 of this title has been, or
will be paid or which are specifically exempt from such tax pursuant
to the provisions of Section 6003 of this title;
5. Sales from coin-operated devices on whic h the fee imposed by
Sections 1501 through 1512 of this title has been paid;
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6. Leases of twelve (12) months or more of motor vehicles in
which the owners of the vehicles have paid the vehicle excise tax
levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is levied
pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
Title 3A of the Oklahoma Statutes, or which is sold to an
organization that is:
a. a veterans’ organization exempt from taxation pursuant
to the provisions of paragraph (4), (7), (8), (10) or
(19) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.,
b. a group home for mentally disabled individuals exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq., or
c. a charitable health care organization which is exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
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a. a federally recognized Indian tr ibe or nation which
has entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Section
346 of this title or to a licensee of such a tribe or
nation, upon which the payment in lieu of taxes
required by the compact ha s been paid, or
b. a federally recognized Indian tribe o r nation or to a
licensee of such a tribe or nation upon which the tax
levied pursuant to the provisions of Section 349.1 or
Section 426 of this title has been paid;
9. Leases of aircraft upon which the owners have paid the
aircraft excise tax levied by S ection 6001 et seq. of this title or
which are specifically exempt from such tax pursuant to the
provisions of Section 6003 of this title;
10. The sale of low -speed or medium-speed electrical vehicle s
on which the Oklahoma Motor Vehicle Excise Tax levied in Section
2101 et seq. of this title has been or will be paid;
11. Effective January 1, 2005, sales of cigarettes on which the
tax levied in Section 301 et seq. of this title or tobacco products
on which the tax levied in Section 401 et seq. of this tit le has
been paid; and
12. Sales of electricity at charging stations as defined by
Section 2 of this act Section 6502 of this title when the
electricity is sold by a charging station owner or operator for
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purposes of charging an electric vehicle as defined b y Section 2 of
this act Section 6502 of this title and the tax imposed pursuant to
Section 4 of this act Section 6504 of this ti tle is collected and
remitted to the Oklahoma Tax Commission.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
amended to read as follows:
Section 1404. The provisions of Section 1401 et seq. of this
title shall not apply:
1. In respect to the use of any article of tangible personal
property brought into the State of Oklahoma by a nonresident
individual, visiting in this state, for his or her personal use or
enjoyment, while within the state;
2. In respect to the use of tangible personal property
purchased for resale before being used;
3. In respect to the use of any article of tangible personal
property on which a tax, equal to o r in excess of that levied by
Section 1401 et seq. of this title, has been paid by the person
using such tangible personal property in this state, whether such
tax was levied under the laws of this state or some other state of
the United States. If any ar ticle of tangible personal property has
already been subjected to a tax, by this or any other state, in
respect to its sale or use, in an amount less than the tax imp osed
by Section 1401 et seq. of this title, the provisions of Section
1401 et seq. of this title shall apply to it by a rate measured by
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the difference only between the rate herein provided and the rate by
which the previous tax upon the sale or use was co mputed. Provided,
that no credit shall be given for taxes paid in another state, if
that state does not grant like credit for taxes paid in Oklahoma;
4. In respect to the use of tangible personal property now
specifically exempted from taxation under Okl ahoma Sales Tax Code.
Provided, for the sale of motor veh icles or any optional equipment
or accessories attached to motor vehicles on which the Oklahoma
Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
2108 of this title has been, or will be paid, the exceptions shall
apply to all but a portion of the levy provided under Secti on 1402
of this title, equal to one and twenty -five-hundredths percent
(1.25%) of the purchase price. Provided further, the sale of motor
vehicles shall not be subje ct to any sales and use taxes levied by
cities, counties or other jurisdictions of the sta te;
5. In respect to the use of any article or tangible personal
property brought into the state by an individual with intent to
become a resident of this state wher e such personal property is for
such individual’s personal use or enjoyment;
6. In respect to the use of any article of tangible personal
property used or to be used by co mmercial airlines or railroads;
7. In respect to livestock purchased outside this s tate and
brought into this state for feeding or breeding p urposes, and which
is later resold; and
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8. Effective January 1, 1991, in respect to the use of rail
transportation cars to haul coal to coal -fired plants located in
this state which generate electr ic power.
SECTION 3. This act shall becom e effective July 1, 2023.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason w hereof this act shall take effect and
be in full force fro m and after its passage and approval.
59-1-327 QD 1/19/2023 12:05:12 PM