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Oklahoma House Bill HB1353

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Oklahoma 2024 Regular Session

Oklahoma House Bill HB1353 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	ENGR. H. B. NO. 1353 Page 1 1
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51		-	ENGROSSED HOUSE
52		-	BILL NO. 1353 By: Fetgatter of the House
53		-
54		-	and
55		-
56		-	Howard of the Senate
57		-
58		-
59		-
60		-
61		-
	2	+	HB1353 HFLR Page 1
	3	+	BOLD FACE denotes Committee Amendments. 1
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	52	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	53	+
	54	+	STATE OF OKLAHOMA
	55	+
	56	+	1st Session of the 59th Legislature (2023)
	57	+
	58	+	COMMITTEE SUBSTITUTE
	59	+	FOR
	60	+	HOUSE BILL NO. 1353 By: Fetgatter
	61	+
	62	+
	63	+
	64	+
	65	+
	66	+	COMMITTEE SUBSTITUTE
62	67
63	68		[ revenue and taxation - exemption for custom order
64	69		manufacturing - effective date ]
65	70
66	71
67	72
68	73
69	74		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
70	75		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1352, is
71	76		amended to read as follows:
72	77		Section 1352. As used in the Oklahoma Sales Tax Code:
73	78		1. "Bundled transaction" means the retail sale of two or more
74	79		products, except real property and services to real property, where
75	80		the products are otherwise distinct and identifiable, and the
76	81		products are sold for one nonitemized price. A "bundled
77	82		transaction" does not include the sale of any products in which the
78	83		sales price varies, or is negotiabl e, based on the selection by the
79	84		purchaser of the products included in the transaction. As used in
80	85		this paragraph:
	86	+	HB1353 HFLR Page 2
	87	+	BOLD FACE denotes Committee Amendments. 1
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81	136		a. "distinct and identifiable products " does not include:
82		-	ENGR. H. B. NO. 1353 Page 2 1
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130		-
131	137		(1) packaging such as containers, boxes, sa cks, bags,
132	138		and bottles, or other materi als such as wrapping,
133	139		labels, tags, and instruction guides, that
134	140		accompany the retail s ale of the products and are
135	141		incidental or immaterial to the retail sale
136	142		thereof, including but not limited to, grocery
137	143		sacks, shoeboxes, dry cleaning garment bags and
138	144		express delivery envelopes and boxes,
139	145		(2) a product provided free of charge with the
140	146		required purchase of another product. A product
141	147		is provided free of charge if the sales price of
142	148		the product purchased does not vary depending on
143	149		the inclusion of the produ ct provided free of
144	150		charge, or
145	151		(3) items included in the definition of gross
146	152		receipts or sales price, pursuant to this
147	153		section,
148	154		b. "one nonitemized price " does not include a price that
149	155		is separately identified by prod uct on binding sales
150	156		or other supporting sales-related documentatio n made
151	157		available to the customer in paper or electronic for m
152	158		including, but not limited to an invoice, bill of
153	159		sale, receipt, contract, service agreement, lease
154		-	ENGR. H. B. NO. 1353 Page 3 1
	160	+	HB1353 HFLR Page 3
	161	+	BOLD FACE denotes Committee Amendments. 1
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203	210		agreement, periodic notice o f rates and services, rate
204	211		card, or price list,
205	212		A transaction that otherwise meets the definition of a bundled
206	213		transaction shall not be considered a bundled transaction if it is:
207	214		(1) the retail sale of tangible personal property and
208	215		a service where the tan gible personal property is
209	216		essential to the use of the service, and is
210	217		provided exclusively in connection with the
211	218		service, and the true object of the transaction
212	219		is the service,
213	220		(2) the retail sale of services where one service is
214	221		provided that is essenti al to the use or receipt
215	222		of a second service and the first service is
216	223		provided exclusively in connection with the
217	224		second service and the true object of the
218	225		transaction is the second service,
219	226		(3) a transaction that includes taxable products and
220	227		nontaxable products and the purchase price or
221	228		sales price of the taxable produc ts is de
222	229		minimis. For purposes of this subdivision, "de
223	230		minimis" means the seller’s purchase price or
224	231		sales price of taxable prod ucts is ten percent
225	232		(10%) or less of the total purchase pri ce or
226	233		sales price of the bundled produc ts. Sellers
227		-	ENGR. H. B. NO. 1353 Page 4 1
	234	+	HB1353 HFLR Page 4
	235	+	BOLD FACE denotes Committee Amendments. 1
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276	284		shall use either the purchase price or the sales
277	285		price of the products to determine if the taxable
278	286		products are de minimis. Sellers may not use a
279	287		combination of the purchase price and sales price
280	288		of the products to determine if the taxable
281	289		products are de minimis. Sell ers shall use the
282	290		full term of a service contract to determ ine if
283	291		the taxable products are de minimis, or
284	292		(4) the retail sale of e xempt tangible personal
285	293		property and taxable tangible perso nal property
286	294		where:
287	295		(a) the transaction includes food and food
288	296		ingredients, drugs, durable medical
289	297		equipment, mobility enhanci ng equipment,
290	298		over-the-counter drugs, prosthetic devices
291	299		or medical supplies, and
292	300		(b) the seller’s purchase price or sales price
293	301		of the taxable tangible personal propert y is
294	302		fifty percent (50%) or less of the total
295	303		purchase price or sales price of the bund led
296	304		tangible personal property. Sellers may not
297	305		use a combination of t he purchase price and
298	306		sales price of the tangible personal
299		-	ENGR. H. B. NO. 1353 Page 5 1
	307	+	HB1353 HFLR Page 5
	308	+	BOLD FACE denotes Committee Amendments. 1
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348	357		property when making the fifty percent (50%)
349	358		determination for a tr ansaction;
350	359		2. "Business" means any activity engaged in or caused to be
351	360		engaged in by any person with the object of gain, benefit, or
352	361		advantage, either direct or indirect;
353	362		3. "Commission" or "Tax Commission" means the Oklahoma Tax
354	363		Commission;
355	364		4. "Computer" means an electronic device that accepts
356	365		information in digital or similar form and manipulates it for a
357	366		result based on a seque nce of instructions;
358	367		5. "Computer software" means a set of coded instructions
359	368		designed to cause a "computer" or automatic data processing
360	369		equipment to perform a task;
361	370		6. "Consumer" or "user" means a person to whom a taxable sale
362	371		of tangible personal prop erty is made or to whom a taxable service
363	372		is furnished. "Consumer" or "user" includes all contrac tors to whom
364	373		a taxable sale of materials, supplies, equipment, or other tangible
365	374		personal property is made or to whom a taxable service is furnished
366	375		to be used or consumed in the performance of any contract;
367	376		7. "Contractor" means any person who performs a ny improvement
368	377		upon real property and who, as a necessary and incidental part of
369	378		performing such improvement, incorporates tangible personal property
370	379		belonging to or purchased by the person into the real property bein g
371	380		improved;
372		-	ENGR. H. B. NO. 1353 Page 6 1
	381	+	HB1353 HFLR Page 6
	382	+	BOLD FACE denotes Committee Amendments. 1
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421	431		8. "Drug" means a compound, substance or preparation, and any
422	432		component of a compound, substance or preparation:
423	433		a. recognized in the official United States
424	434		Pharmacopoeia, official Hom eopathic Pharmacopoeia of
425	435		the United States, or official Na tional Formulary, and
426	436		supplement to any of them,
427	437		b. intended for use in the diagnosis, cure, mitigation,
428	438		treatment, or prevent ion of disease, or
429	439		c. intended to affect the structure or any function of
430	440		the body;
431	441		9. "Electronic" means relating to technology having electrical,
432	442		digital, magnetic, w ireless, optical, electromag netic, or similar
433	443		capabilities;
434	444		10. "Established place of business" means the location at which
435	445		any person regularly engages in, conducts, or operates a business in
436	446		a continuous manner for any length of time, that is open to th e
437	447		public during the hours cu stomary to such business, in which a stock
438	448		of merchandise for resale is maintained, and which is not exempted
439	449		by law from attachme nt, execution, or other species of forced sale
440	450		barring any satisfaction of any delinquent tax liab ility accrued
441	451		under the Oklahoma Sales Tax Code;
442	452		11. "Fair authority" means:
443		-	ENGR. H. B. NO. 1353 Page 7 1
	453	+	HB1353 HFLR Page 7
	454	+	BOLD FACE denotes Committee Amendments. 1
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491	502
492	503		a. any county, municipality, school district, public
493	504		trust or any other politica l subdivision of this
494	505		state, or
495	506		b. any not-for-profit corporation acting pursuant to an
496	507		agency, operating or management agreem ent which has
497	508		been approved or authorized by the governing body of
498	509		any of the entities specified in subparagraph a of
499	510		this paragraph which conduct, operate or produce a
500	511		fair commonly unders tood to be a county, district or
501	512		state fair;
502	513		12. a. "Gross receipts", "gross proceeds" or "sales price"
503	514		means the total amount of consideration, including
504	515		cash, credit, property and services, for w hich
505	516		personal property or services are sold, leased or
506	517		rented, valued in money, whether received i n money or
507	518		otherwise, without any deduction for the following:
508	519		(1) the seller’s cost of the property sold,
509	520		(2) the cost of materials used, labor or service
510	521		cost,
511	522		(3) interest, losses, all costs of transportation to
512	523		the seller, all taxes imposed on the sell er, and
513	524		any other expense of the seller,
514		-	ENGR. H. B. NO. 1353 Page 8 1
	525	+	HB1353 HFLR Page 8
	526	+	BOLD FACE denotes Committee Amendments. 1
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563	575		(4) charges by the seller for any services nec essary
564	576		to complete the sale, other than delivery and
565	577		installation charges,
566	578		(5) delivery charges and installation charges, unless
567	579		separately stated on the invoice, billin g or
568	580		similar document given to the purchaser, and
569	581		(6) credit for any trade -in.
570	582		b. Such term shall not include:
571	583		(1) discounts, including cash, term, or coupons that
572	584		are not reimbursed by a third party that are
573	585		allowed by a seller and taken by a purchaser on a
574	586		sale,
575	587		(2) interest, financing, and carrying charges from
576	588		credit extended on the sale of personal property
577	589		or services, if the amount is separately stated
578	590		on the invoice, bill of sale or similar document
579	591		given to the purchaser, and
580	592		(3) any taxes legally imposed directly on the
581	593		consumer that are separately stated on the
582	594		invoice, bill of sal e or similar document given
583	595		to the purchaser.
584	596		c. Such term shall includ e consideration received by the
585	597		seller from third parties i f:
586		-	ENGR. H. B. NO. 1353 Page 9 1
	598	+	HB1353 HFLR Page 9
	599	+	BOLD FACE denotes Committee Amendments. 1
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633	646		24
634	647
635	648		(1) the seller actually receives con sideration from a
636	649		party other than the purchaser and the
637	650		consideration is directly rela ted to a price
638	651		reduction or discount on the sale,
639	652		(2) the seller has an obligation to pass the price
640	653		reduction or discount through to the purchaser,
641	654		(3) the amount of the consideration attributable to
642	655		the sale is fixed and determinable by the seller
643	656		at the time of the sale of the item to the
644	657		purchaser, and
645	658		(4) one of the following criteria is met:
646	659		(a) the purchaser presents a coupon, certificate
647	660		or other documentation to the seller to
648	661		claim a price reduction or discount where
649	662		the coupon, certificate or docu mentation is
650	663		authorized, distributed or granted by a
651	664		third party with the understanding that the
652	665		third party will reimburse any se ller to
653	666		whom the coupon, certificate or
654	667		documentation is presented,
655	668		(b) the purchaser identifies himself or herself
656	669		to the seller as a member of a group or
657	670		organization entitled to a price reductio n
658	671		or discount; provided, a "preferred
659		-	ENGR. H. B. NO. 1353 Page 10 1
	672	+	HB1353 HFLR Page 10
	673	+	BOLD FACE denotes Committee Amendments. 1
660	674		2
661	675		3
662	676		4
663	677		5
664	678		6
665	679		7
666	680		8
667	681		9
668	682		10
669	683		11
670	684		12
671	685		13
672	686		14
673	687		15
674	688		16
675	689		17
676	690		18
677	691		19
678	692		20
679	693		21
680	694		22
681	695		23
682	696		24
683	697		1
684	698		2
685	699		3
686	700		4
687	701		5
688	702		6
689	703		7
690	704		8
691	705		9
692	706		10
693	707		11
694	708		12
695	709		13
696	710		14
697	711		15
698	712		16
699	713		17
700	714		18
701	715		19
702	716		20
703	717		21
704	718		22
705	719		23
706	720		24
707	721
708	722		customer" card that is available to any
709	723		patron does not cons titute membership in
710	724		such a group, or
711	725		(c) the price reduction or discount is
712	726		identified as a third-party price reduction
713	727		or discount on the invoice received b y the
714	728		purchaser or on a coupon, certificate or
715	729		other documentation presented by the
716	730		purchaser;
717	731		13. a. "Maintaining a place of business in this state" means
718	732		and shall be presumed to inc lude:
719	733		(1) (a) utilizing or maintaining in this state,
720	734		directly or by subsidiary, an office,
721	735		distribution house, sales house, wareh ouse,
722	736		or other physical place of busine ss, whether
723	737		owned or operated by the vendor or any other
724	738		person, other than a common ca rrier acting
725	739		in its capacity as such, or
726	740		(b) having agents operating in this state,
727	741		whether the place of business or agent
728	742		is within this state temporarily or
729	743		permanently or whether the person or
730	744		agent is authorized to do business
731	745		within this state, and
732		-	ENGR. H. B. NO. 1353 Page 11 1
	746	+	HB1353 HFLR Page 11
	747	+	BOLD FACE denotes Committee Amendments. 1
733	748		2
734	749		3
735	750		4
736	751		5
737	752		6
738	753		7
739	754		8
740	755		9
741	756		10
742	757		11
743	758		12
744	759		13
745	760		14
746	761		15
747	762		16
748	763		17
749	764		18
750	765		19
751	766		20
752	767		21
753	768		22
754	769		23
755	770		24
756	771		1
757	772		2
758	773		3
759	774		4
760	775		5
761	776		6
762	777		7
763	778		8
764	779		9
765	780		10
766	781		11
767	782		12
768	783		13
769	784		14
770	785		15
771	786		16
772	787		17
773	788		18
774	789		19
775	790		20
776	791		21
777	792		22
778	793		23
779	794		24
780	795
781	796		(2) the presence of any person, other than a common
782	797		carrier acting in its capacity as such, that has
783	798		substantial nexus in this state and that:
784	799		(a) sells a similar line of products as the
785	800		vendor and does so under the same or a
786	801		similar business name,
787	802		(b) uses trademarks, service marks or trade
788	803		names in this state that are the sam e
789	804		or substantially similar to those used
790	805		by the vendor,
791	806		(c) delivers, installs, assembles or
792	807		performs maintenance services for the
793	808		vendor,
794	809		(d) facilitates the vendor ’s delivery of
795	810		property to customers in the state by
796	811		allowing the vendor’s customers to pick
797	812		up property sold by the vendor at an
798	813		office, distribution facility,
799	814		warehouse, storage place or similar
800	815		place of business ma intained by the
801	816		person in this state, or
802	817		(e) conducts any other activities in this state
803	818		that are significantly associated with th e
804		-	ENGR. H. B. NO. 1353 Page 12 1
	819	+	HB1353 HFLR Page 12
	820	+	BOLD FACE denotes Committee Amendments. 1
805	821		2
806	822		3
807	823		4
808	824		5
809	825		6
810	826		7
811	827		8
812	828		9
813	829		10
814	830		11
815	831		12
816	832		13
817	833		14
818	834		15
819	835		16
820	836		17
821	837		18
822	838		19
823	839		20
824	840		21
825	841		22
826	842		23
827	843		24
828	844		1
829	845		2
830	846		3
831	847		4
832	848		5
833	849		6
834	850		7
835	851		8
836	852		9
837	853		10
838	854		11
839	855		12
840	856		13
841	857		14
842	858		15
843	859		16
844	860		17
845	861		18
846	862		19
847	863		20
848	864		21
849	865		22
850	866		23
851	867		24
852	868
853	869		vendor’s ability to establish and maintain a
854	870		market in this state for the vendor ’s sale.
855	871		b. The presumptions in divisions (1 ) and (2) of
856	872		subparagraph a of this paragraph may be rebutt ed by
857	873		demonstrating that the person ’s activities in this
858	874		state are not significantly associated with the
859	875		vendor’s ability to establish and maintain a market in
860	876		this state for the vendor’s sales.
861	877		c. Any ruling, agreement or contract, whether written or
862	878		oral, express or implied, between a person and
863	879		executive branch of this sta te, or any other state
864	880		agency or department, stating, agree ing or ruling that
865	881		the person is not "maintaining a place of busine ss in
866	882		this state" or is not required to collect sales and
867	883		use tax in this state despite the presence of a
868	884		warehouse, distribution center or fulfillment center
869	885		in this state that is owned or operated by the vendor
870	886		or an affiliated person of the vendor shall be null
871	887		and void unless it is specifically approved by a
872	888		majority vote of each house of the Oklahoma
873	889		Legislature;
874	890		14. "Manufacturing" means and includes the activity of
875	891		converting or conditioning tangible personal property by changing
876	892		the form, composition, or quality of character of some existing
877		-	ENGR. H. B. NO. 1353 Page 13 1
	893	+	HB1353 HFLR Page 13
	894	+	BOLD FACE denotes Committee Amendments. 1
878	895		2
879	896		3
880	897		4
881	898		5
882	899		6
883	900		7
884	901		8
885	902		9
886	903		10
887	904		11
888	905		12
889	906		13
890	907		14
891	908		15
892	909		16
893	910		17
894	911		18
895	912		19
896	913		20
897	914		21
898	915		22
899	916		23
900	917		24
901	918		1
902	919		2
903	920		3
904	921		4
905	922		5
906	923		6
907	924		7
908	925		8
909	926		9
910	927		10
911	928		11
912	929		12
913	930		13
914	931		14
915	932		15
916	933		16
917	934		17
918	935		18
919	936		19
920	937		20
921	938		21
922	939		22
923	940		23
924	941		24
925	942
926	943		material or materials, including natural resources, by procedures
927	944		commonly regarded by the average person as manufacturing,
928	945		compounding, process ing or assembling, into a material or m aterials
929		-	with a different form or use. Manufacturing shall also include ~~the~~
930		-	manufacturing, compounding, processing, or fabrication of ~~materials~~
931		-	into ~~articles~~ of tangible personal property according to ~~the special~~
932		-	order of a customer (custom order manufac turing) by ~~manufacturers~~
933		-	classified as operating in North American Industry ~~Classification~~
934		-	System (NAICS) Sectors 32 and 33, but does not ~~include such custom~~
935		-	order manufacturing by manufacturers classified ~~in other NA ICS code~~
936		-	sectors. "Manufacturing" does not include ~~extractive industrial~~
937		-	activities such as mining, quarrying, logging, ~~and d rilling for oil,~~
938		-	gas and water, nor oil and gas field ~~processes, such a s natural~~
939		-	pressure reduction, mechanical ~~separation, heatin g, cooling,~~
940		-	dehydration and compression ;
	946	+	with a different form or use. "Manufacturing" shall also include
	947	+	the manufacturing, compounding, processing or fabrication of
	948	+	materials into article s of tangible personal property according to
	949	+	the special order of a customer (custom order manufac turing) by
	950	+	manufacturers classified as operating in North American Industry
	951	+	Classification System (NAICS) Sectors 32 and 33, but does not
	952	+	include such custom order manufacturing by manufacturers classified
	953	+	in other NAICS code sectors. "Manufacturing" does not include
	954	+	extractive industrial activities such as mining, quarrying, logging,
	955	+	and drilling for oil, gas and water, nor oil and gas field
	956	+	processes, such as natural pressure reduction, mechanical
	957	+	separation, heating, cooling, dehydration and compression ;
941	958		15. "Manufacturing operat ion" means the designing,
942	959		manufacturing, compounding, proce ssing, assembling, warehousing, or
943	960		preparing of articles for sale as ta ngible personal property. A
944	961		manufacturing operation begins at the point where the materials
945	962		enter the manufacturing site and ends at the point where a finished
946	963		product leaves the manuf acturing site. "Manufacturing operation "
947	964		does not include administrati on, sales, distribution,
948	965		transportation, site construction, or site maintenance. Extractive
949	966		activities and field processes sh all not be deemed to be a part of a
950		-	ENGR. H. B. NO. 1353 Page 14 1
	967	+	HB1353 HFLR Page 14
	968	+	BOLD FACE denotes Committee Amendments. 1
951	969		2
952	970		3
953	971		4
954	972		5
955	973		6
956	974		7
957	975		8
958	976		9
959	977		10
960	978		11
961	979		12
962	980		13
963	981		14
964	982		15
965	983		16
966	984		17
967	985		18
968	986		19
969	987		20
970	988		21
971	989		22
972	990		23
973	991		24
974	992		1
975	993		2
976	994		3
977	995		4
978	996		5
979	997		6
980	998		7
981	999		8
982	1000		9
983	1001		10
984	1002		11
985	1003		12
986	1004		13
987	1005		14
988	1006		15
989	1007		16
990	1008		17
991	1009		18
992	1010		19
993	1011		20
994	1012		21
995	1013		22
996	1014		23
997	1015		24
998	1016
999	1017		manufacturing operation even when performed by a person otherwise
1000	1018		engaged in manufacturing;
1001	1019		16. "Manufacturing site" means a location where a manufactur ing
1002	1020		operation is conducted, including a location consisting of one or
1003	1021		more buildings or structures in an area owned, leased, o r controlled
1004	1022		by a manufacturer;
1005	1023		17. "Over-the-counter drug" means a drug that contains a label
1006	1024		that identifies the product as a d rug as required by 21 C.F.R.,
1007	1025		Section 201.66. The over-the-counter-drug label includes:
1008	1026		a. a "Drug Facts" panel, or
1009	1027		b. a statement of the "active ingredient(s) " with a list
1010	1028		of those ingredients co ntained in the compound,
1011	1029		substance or preparation;
1012	1030		18. "Person" means any individual, company, pa rtnership, joint
1013	1031		venture, joint agreement, association, mutual or otherwise, limited
1014	1032		liability company, corporation, estate, trust, business trust,
1015	1033		receiver or trustee appointed by any state or federal court or
1016	1034		otherwise, syndicate, this state, any county, city, municipality,
1017	1035		school district, any other political subdivision of the state, or
1018	1036		any group or combination acting as a unit, in the plural or singular
1019	1037		number;
1020	1038		19. "Prescription" means an order, formula or recipe issued in
1021	1039		any form of oral, written, e lectronic, or other means of
1022		-	ENGR. H. B. NO. 1353 Page 15 1
	1040	+	HB1353 HFLR Page 15
	1041	+	BOLD FACE denotes Committee Amendments. 1
1023	1042		2
1024	1043		3
1025	1044		4
1026	1045		5
1027	1046		6
1028	1047		7
1029	1048		8
1030	1049		9
1031	1050		10
1032	1051		11
1033	1052		12
1034	1053		13
1035	1054		14
1036	1055		15
1037	1056		16
1038	1057		17
1039	1058		18
1040	1059		19
1041	1060		20
1042	1061		21
1043	1062		22
1044	1063		23
1045	1064		24
1046	1065		1
1047	1066		2
1048	1067		3
1049	1068		4
1050	1069		5
1051	1070		6
1052	1071		7
1053	1072		8
1054	1073		9
1055	1074		10
1056	1075		11
1057	1076		12
1058	1077		13
1059	1078		14
1060	1079		15
1061	1080		16
1062	1081		17
1063	1082		18
1064	1083		19
1065	1084		20
1066	1085		21
1067	1086		22
1068	1087		23
1069	1088		24
1070	1089
1071	1090		transmission by a duly licensed "practitioner" as defined in Section
1072	1091		1357.6 of this title;
1073	1092		20. "Prewritten computer software " means "computer software",
1074	1093		including prewritten upgrades, whi ch is not designed and developed
1075	1094		by the author or other creator to the specifications of a specific
1076	1095		purchaser. The combining of two or more prewritten computer
1077	1096		software programs or prewritten port ions thereof does not cause the
1078	1097		combination to be other tha n prewritten computer software.
1079	1098		Prewritten software includes softw are designed and developed by the
1080	1099		author or other creator t o the specifications of a specific
1081	1100		purchaser when it is sold to a perso n other than the purchaser.
1082	1101		Where a person modifies or enh ances computer software of which the
1083	1102		person is not the author or cr eator, the person shall be deemed to
1084	1103		be the author or creat or only of such person ’s modifications or
1085	1104		enhancements. Prewritten sof tware or a prewritten portion thereof
1086	1105		that is modified or e nhanced to any degree, where such modif ication
1087	1106		or enhancement is de signed and developed to the specifications of a
1088	1107		specific purchaser, remains prewritten software; provided, however,
1089	1108		that where there is a reasonable, separately stated charge or an
1090	1109		invoice or other statement of the price given t o the purchaser for
1091	1110		such modification or enhancement, such modification or enhancement
1092	1111		shall not constitute prewritten computer software;
1093	1112		21. "Repairman" means any person who performs any repair
1094	1113		service upon tangible personal property of the consumer, whe ther or
1095		-	ENGR. H. B. NO. 1353 Page 16 1
	1114	+	HB1353 HFLR Page 16
	1115	+	BOLD FACE denotes Committee Amendments. 1
1096	1116		2
1097	1117		3
1098	1118		4
1099	1119		5
1100	1120		6
1101	1121		7
1102	1122		8
1103	1123		9
1104	1124		10
1105	1125		11
1106	1126		12
1107	1127		13
1108	1128		14
1109	1129		15
1110	1130		16
1111	1131		17
1112	1132		18
1113	1133		19
1114	1134		20
1115	1135		21
1116	1136		22
1117	1137		23
1118	1138		24
1119	1139		1
1120	1140		2
1121	1141		3
1122	1142		4
1123	1143		5
1124	1144		6
1125	1145		7
1126	1146		8
1127	1147		9
1128	1148		10
1129	1149		11
1130	1150		12
1131	1151		13
1132	1152		14
1133	1153		15
1134	1154		16
1135	1155		17
1136	1156		18
1137	1157		19
1138	1158		20
1139	1159		21
1140	1160		22
1141	1161		23
1142	1162		24
1143	1163
1144	1164		not the repairman, a s a necessary and incidental part of performing
1145	1165		the service, incorporates tangible personal property belonging to or
1146	1166		purchased by the repairman into the tangible personal property being
1147	1167		repaired;
1148	1168		22. "Sale" means the transfer o f either title or possession of
1149	1169		tangible personal property for a valuable consideration regardless
1150	1170		of the manner, method, instrumentality, or device by which the
1151	1171		transfer is accomplished in this state, or other transa ctions as
1152	1172		provided by this paragraph, i ncluding but not limited to:
1153	1173		a. the exchange, barter, lease, or rental of tangible
1154	1174		personal property resulting in the transfer of the
1155	1175		title to or possession o f the property,
1156	1176		b. the disposition for consumption or use i n any business
1157	1177		or by any person of all goods, wares, merchandise, o r
1158	1178		property which has been purchased for resale,
1159	1179		manufacturing, or further processing,
1160	1180		c. the sale, gift, exchange, or other dispos ition of
1161	1181		admission, dues, or fees to clubs, places of
1162	1182		amusement, or recreational or athletic event s or for
1163	1183		the privilege of having access to or the use of
1164	1184		amusement, recreational, athle tic or entertainment
1165	1185		facilities,
1166	1186		d. the furnishing or rendering of serv ices taxable under
1167	1187		the Oklahoma Sales Tax Code, and
1168		-	ENGR. H. B. NO. 1353 Page 17 1
	1188	+	HB1353 HFLR Page 17
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1169	1190		2
1170	1191		3
1171	1192		4
1172	1193		5
1173	1194		6
1174	1195		7
1175	1196		8
1176	1197		9
1177	1198		10
1178	1199		11
1179	1200		12
1180	1201		13
1181	1202		14
1182	1203		15
1183	1204		16
1184	1205		17
1185	1206		18
1186	1207		19
1187	1208		20
1188	1209		21
1189	1210		22
1190	1211		23
1191	1212		24
1192	1213		1
1193	1214		2
1194	1215		3
1195	1216		4
1196	1217		5
1197	1218		6
1198	1219		7
1199	1220		8
1200	1221		9
1201	1222		10
1202	1223		11
1203	1224		12
1204	1225		13
1205	1226		14
1206	1227		15
1207	1228		16
1208	1229		17
1209	1230		18
1210	1231		19
1211	1232		20
1212	1233		21
1213	1234		22
1214	1235		23
1215	1236		24
1216	1237
1217	1238		e. any use of motor fuel or diesel fuel by a s upplier, as
1218	1239		defined in Section 500.3 of this title, upon which
1219	1240		sales tax has not previo usly been paid, for purposes
1220	1241		other than to propel motor vehicles over t he public
1221	1242		highways of this state. Motor fuel or diesel fue l
1222	1243		purchased outside the state and used for purposes
1223	1244		other than to propel motor vehicles over the public
1224	1245		highways of this state shall not constitute a sale
1225	1246		within the meaning of this paragraph;
1226	1247		23. "Sale for resale" means:
1227	1248		a. a sale of tangible personal pr operty to any purchaser
1228	1249		who is purchasing tangible personal propert y for the
1229	1250		purpose of reselling it within the geographical l imits
1230	1251		of the United States of America or its territories or
1231	1252		possessions, in the normal course of business either
1232	1253		in the form or condition in which it is purchased or
1233	1254		as an attachment to or integral part of other tangible
1234	1255		personal property,
1235	1256		b. a sale of tangible personal property to a purchaser
1236	1257		for the sole purpose of the rent ing or leasing, within
1237	1258		the geographical limits of the Unite d States of
1238	1259		America or its territories or possessions, of the
1239	1260		tangible personal property to another person by the
1240		-	ENGR. H. B. NO. 1353 Page 18 1
	1261	+	HB1353 HFLR Page 18
	1262	+	BOLD FACE denotes Committee Amendments. 1
1241	1263		2
1242	1264		3
1243	1265		4
1244	1266		5
1245	1267		6
1246	1268		7
1247	1269		8
1248	1270		9
1249	1271		10
1250	1272		11
1251	1273		12
1252	1274		13
1253	1275		14
1254	1276		15
1255	1277		16
1256	1278		17
1257	1279		18
1258	1280		19
1259	1281		20
1260	1282		21
1261	1283		22
1262	1284		23
1263	1285		24
1264	1286		1
1265	1287		2
1266	1288		3
1267	1289		4
1268	1290		5
1269	1291		6
1270	1292		7
1271	1293		8
1272	1294		9
1273	1295		10
1274	1296		11
1275	1297		12
1276	1298		13
1277	1299		14
1278	1300		15
1279	1301		16
1280	1302		17
1281	1303		18
1282	1304		19
1283	1305		20
1284	1306		21
1285	1307		22
1286	1308		23
1287	1309		24
1288	1310
1289	1311		purchaser, but not if incidental to the renting or
1290	1312		leasing of real estate,
1291	1313		c. a sale of tangible goods and products within this
1292	1314		state if, simultaneously with the sale, the vendor
1293	1315		issues an export bill of ladin g, or other
1294	1316		documentation that the point of delivery of suc h goods
1295	1317		for use and consumption is in a foreign country and
1296	1318		not within the territorial confines of the United
1297	1319		States. If the vend or is not in the business of
1298	1320		shipping the tangible goods and produc ts that are
1299	1321		purchased from the vendor, the buyer or purchas er of
1300	1322		the tangible goods and products is responsible for
1301	1323		providing an export bill of lading or other
1302	1324		documentation to the vendor f rom whom the tangible
1303	1325		goods and products were purchased showing tha t the
1304	1326		point of delivery of such goods for use and
1305	1327		consumption is a foreign country and not within the
1306	1328		territorial confines of the United States, or
1307	1329		d. a sales of any carrier access services , right of
1308	1330		access services, telecommuni cations services to be
1309	1331		resold, or telecommunications used in the subsequent
1310	1332		provision of, use as a component part of, or
1311	1333		integrated into, end -to-end telecommunications
1312	1334		service;
1313		-	ENGR. H. B. NO. 1353 Page 19 1
	1335	+	HB1353 HFLR Page 19
	1336	+	BOLD FACE denotes Committee Amendments. 1
1314	1337		2
1315	1338		3
1316	1339		4
1317	1340		5
1318	1341		6
1319	1342		7
1320	1343		8
1321	1344		9
1322	1345		10
1323	1346		11
1324	1347		12
1325	1348		13
1326	1349		14
1327	1350		15
1328	1351		16
1329	1352		17
1330	1353		18
1331	1354		19
1332	1355		20
1333	1356		21
1334	1357		22
1335	1358		23
1336	1359		24
1337	1360		1
1338	1361		2
1339	1362		3
1340	1363		4
1341	1364		5
1342	1365		6
1343	1366		7
1344	1367		8
1345	1368		9
1346	1369		10
1347	1370		11
1348	1371		12
1349	1372		13
1350	1373		14
1351	1374		15
1352	1375		16
1353	1376		17
1354	1377		18
1355	1378		19
1356	1379		20
1357	1380		21
1358	1381		22
1359	1382		23
1360	1383		24
1361	1384
1362	1385		24. "Tangible personal property " means personal property that
1363	1386		can be seen, weighed, measured, felt, or tou ched or that is in any
1364	1387		other manner perceptible to the sens es. "Tangible personal
1365	1388		property" includes electricity, water, gas, ste am and prewritten
1366	1389		computer software. This definition shall be applicable only for
1367	1390		purposes of the Oklahoma Sales Tax Code;
1368	1391		25. "Taxpayer" means any person liable to pay a tax imposed by
1369	1392		the Oklahoma Sales Tax Code;
1370	1393		26. "Tax period" or "taxable period" means the calendar period
1371	1394		or the taxpayer’s fiscal period for which a taxpayer has obtained a
1372	1395		permit from the Tax Commission to use a fiscal period in lieu of a
1373	1396		calendar period;
1374	1397		27. "Tax remitter" means any person required to collect,
1375	1398		report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
1376	1399		tax remitter who fails, for any reason, to collect, report, or remit
1377	1400		the tax shall be considered a taxpayer for purposes of assessment,
1378	1401		collection, and enforcement of the tax imposed by the Oklahoma Sales
1379	1402		Tax Code; and
1380	1403		28. "Vendor" means:
1381	1404		a. any person making sales o f tangible personal property
1382	1405		or services in this state, the gross r eceipts or gross
1383	1406		proceeds from which are taxed by the Oklah oma Sales
1384	1407		Tax Code,
1385		-	ENGR. H. B. NO. 1353 Page 20 1
	1408	+	HB1353 HFLR Page 20
	1409	+	BOLD FACE denotes Committee Amendments. 1
1386	1410		2
1387	1411		3
1388	1412		4
1389	1413		5
1390	1414		6
1391	1415		7
1392	1416		8
1393	1417		9
1394	1418		10
1395	1419		11
1396	1420		12
1397	1421		13
1398	1422		14
1399	1423		15
1400	1424		16
1401	1425		17
1402	1426		18
1403	1427		19
1404	1428		20
1405	1429		21
1406	1430		22
1407	1431		23
1408	1432		24
1409	1433		1
1410	1434		2
1411	1435		3
1412	1436		4
1413	1437		5
1414	1438		6
1415	1439		7
1416	1440		8
1417	1441		9
1418	1442		10
1419	1443		11
1420	1444		12
1421	1445		13
1422	1446		14
1423	1447		15
1424	1448		16
1425	1449		17
1426	1450		18
1427	1451		19
1428	1452		20
1429	1453		21
1430	1454		22
1431	1455		23
1432	1456		24
1433	1457
1434	1458		b. any person maintaining a place of business in th is
1435	1459		state and making sales of tangible personal property
1436	1460		or services, whether at the place of busin ess or
1437	1461		elsewhere, to persons within this state, the gross
1438	1462		receipts or gross proceeds fr om which are taxed by the
1439	1463		Oklahoma Sales Tax Code,
1440	1464		c. any person who solicits business by employees,
1441	1465		independent contractors, agen ts, or other
1442	1466		representatives in this st ate, and thereby makes sales
1443	1467		to persons within this state of tangible personal
1444	1468		property or services, the gross receipts or gross
1445	1469		proceeds from which are taxed by the Oklahoma Sales
1446	1470		Tax Code, or
1447	1471		d. any person, pursuant to an agreement with the person
1448	1472		with an ownership interest in or t itle to tangible
1449	1473		personal property, who has been entrusted with the
1450	1474		possession of any such property and has the power to
1451	1475		designate who is to obtain title, to physically
1452	1476		transfer possession of, or otherwise make sales of the
1453	1477		property.
1454	1478		SECTION 2. AMENDATORY 68 O.S. 2021, Section 1359, is
1455	1479		amended to read as follows:
1456	1480		Section 1359. Exemptions - Manufacturing.
1457		-	ENGR. H. B. NO. 1353 Page 21 1
	1481	+	HB1353 HFLR Page 21
	1482	+	BOLD FACE denotes Committee Amendments. 1
1458	1483		2
1459	1484		3
1460	1485		4
1461	1486		5
1462	1487		6
1463	1488		7
1464	1489		8
1465	1490		9
1466	1491		10
1467	1492		11
1468	1493		12
1469	1494		13
1470	1495		14
1471	1496		15
1472	1497		16
1473	1498		17
1474	1499		18
1475	1500		19
1476	1501		20
1477	1502		21
1478	1503		22
1479	1504		23
1480	1505		24
1481	1506		1
1482	1507		2
1483	1508		3
1484	1509		4
1485	1510		5
1486	1511		6
1487	1512		7
1488	1513		8
1489	1514		9
1490	1515		10
1491	1516		11
1492	1517		12
1493	1518		13
1494	1519		14
1495	1520		15
1496	1521		16
1497	1522		17
1498	1523		18
1499	1524		19
1500	1525		20
1501	1526		21
1502	1527		22
1503	1528		23
1504	1529		24
1505	1530
1506	1531		There are hereby specifically exempted from the tax levied by
1507	1532		Section 1350 et seq. of this title:
1508	1533		1. Sales of goods, wares, me rchandise, tangible personal
1509	1534		property, machinery and equipm ent to a manufacturer for use in a
1510	1535		manufacturing operation. The sales for use in a manufacturing
1511	1536		operation shall be exempt for any manufacturer engaged in
1512	1537		manufacturing as defined in paragraph 14 of Section 1352 of this
1513	1538		title. Goods, wares, merchandise, property, machinery and equipment
1514	1539		used in a nonmanufacturing activity or process as set forth in
1515	1540		paragraph 14 of Section 1352 of th is title shall not be eligible for
1516	1541		the exemption provided for in t his subsection by virtue of the
1517	1542		activity or process being p erformed in conjunction with or
1518	1543		integrated into a manufacturing operatio n.
1519	1544		For the purposes of this paragraph, sales made to any pe rson,
1520	1545		firm or entity that has entered into a contractual relations hip for
1521	1546		the construction and improvement of manufacturing g oods, wares,
1522	1547		merchandise, property, machinery and equipment for use in a
1523	1548		manufacturing operation shall be considered sales made to a
1524	1549		manufacturer which is defined or cla ssified in the North America n
1525	1550		Industry Classification System (NAICS) Manual under Indus try Group
1526	1551		No. 324110. Such purchase shall be evidenced by a copy of the sales
1527	1552		ticket or invoice to be retained by the vendor indic ating that the
1528	1553		purchases are made for and on behalf of such manufa cturer and set
1529	1554		out the name of such manufacturer as well as include a copy of the
1530		-	ENGR. H. B. NO. 1353 Page 22 1
	1555	+	HB1353 HFLR Page 22
	1556	+	BOLD FACE denotes Committee Amendments. 1
1531	1557		2
1532	1558		3
1533	1559		4
1534	1560		5
1535	1561		6
1536	1562		7
1537	1563		8
1538	1564		9
1539	1565		10
1540	1566		11
1541	1567		12
1542	1568		13
1543	1569		14
1544	1570		15
1545	1571		16
1546	1572		17
1547	1573		18
1548	1574		19
1549	1575		20
1550	1576		21
1551	1577		22
1552	1578		23
1553	1579		24
1554	1580		1
1555	1581		2
1556	1582		3
1557	1583		4
1558	1584		5
1559	1585		6
1560	1586		7
1561	1587		8
1562	1588		9
1563	1589		10
1564	1590		11
1565	1591		12
1566	1592		13
1567	1593		14
1568	1594		15
1569	1595		16
1570	1596		17
1571	1597		18
1572	1598		19
1573	1599		20
1574	1600		21
1575	1601		22
1576	1602		23
1577	1603		24
1578	1604
1579	1605		Manufacturing Exemption Permit of the manufacture r. Any person who
1580	1606		wrongfully or erroneously certifies that purchases are being made on
1581	1607		behalf of such manufacturer or who ot herwise violates this paragraph
1582	1608		shall be guilty of a misdem eanor and upon conviction thereof shall
1583	1609		be fined an amount equal to doub le the amount of sales tax involved
1584	1610		or incarcerated for not more than sixty (60) days or both;
1585	1611		2. Ethyl alcohol when sold an d used for the purpose of blending
1586	1612		same with motor fuel on which motor fuel tax is levied by Section
1587	1613		500.4 of this title;
1588	1614		3. Sales of containers when sold to a person regularly engaged
1589	1615		in the business of reselling empty or fill ed containers or when
1590	1616		purchased for the purpose of packaging raw products of farm, gard en,
1591	1617		or orchard for resale to the consumer or processor. This exemption
1592	1618		shall not apply to the sale of any containers used more tha n once
1593	1619		and which are ordinarily known as returnable containers, ex cept
1594	1620		returnable soft drink bottles and the cartons, crates, pallets, and
1595	1621		containers used to transport returnable soft drink bottles . Each
1596	1622		and every transfer of title or possession of such r eturnable
1597	1623		containers in this state to any person who is not regula rly engaged
1598	1624		in the business of selling, reselling or otherw ise transferring
1599	1625		empty or filled containers shall be taxable under this Code.
1600	1626		Additionally, this exemption shall not apply to the sale of labels
1601	1627		or other materials deli vered along with items sold but which are not
1602		-	ENGR. H. B. NO. 1353 Page 23 1
	1628	+	HB1353 HFLR Page 23
	1629	+	BOLD FACE denotes Committee Amendments. 1
1603	1630		2
1604	1631		3
1605	1632		4
1606	1633		5
1607	1634		6
1608	1635		7
1609	1636		8
1610	1637		9
1611	1638		10
1612	1639		11
1613	1640		12
1614	1641		13
1615	1642		14
1616	1643		15
1617	1644		16
1618	1645		17
1619	1646		18
1620	1647		19
1621	1648		20
1622	1649		21
1623	1650		22
1624	1651		23
1625	1652		24
1626	1653		1
1627	1654		2
1628	1655		3
1629	1656		4
1630	1657		5
1631	1658		6
1632	1659		7
1633	1660		8
1634	1661		9
1635	1662		10
1636	1663		11
1637	1664		12
1638	1665		13
1639	1666		14
1640	1667		15
1641	1668		16
1642	1669		17
1643	1670		18
1644	1671		19
1645	1672		20
1646	1673		21
1647	1674		22
1648	1675		23
1649	1676		24
1650	1677
1651	1678		necessary or absolutely essential to the sale of the sold
1652	1679		merchandise;
1653	1680		4. Sales of or transfers of title to or p ossession of any
1654	1681		containers, after June 30, 1987, used or t o be used more than once
1655	1682		and which are ordinarily known as returna ble containers and which do
1656	1683		or will contain beverages defin ed by paragraphs 4 and 14 of Section
1657	1684		506 of Title 37 of the Oklahoma Sta tutes, or water for human
1658	1685		consumption and the cartons, crat es, pallets, and containers used to
1659	1686		transport such returnable cont ainers;
1660	1687		5. Sale of tangible personal property when sold by the
1661	1688		manufacturer to a person who transports it to a state other than
1662	1689		Oklahoma for immediate and exclusive use in a state other tha n
1663	1690		Oklahoma. Provided, no sales at a r etail outlet shall qualify f or
1664	1691		the exemption under this paragraph;
1665	1692		6. Machinery, equip ment, fuels and chemicals or other materials
1666	1693		incorporated into and direc tly used or consumed in the process of
1667	1694		treatment to substan tially reduce the volume or harmful pr operties
1668	1695		of hazardous waste at treatment facilities specifically permitted
1669	1696		pursuant to the Oklahoma Hazardous Waste Management Act and operated
1670	1697		at the place of waste generation, or facilities approved by the
1671	1698		Department of Environmental Quality for the clea nup of a site of
1672	1699		contamination. The term "hazardous" waste may include low -level
1673	1700		radioactive waste for the purpose of this paragraph;
1674		-	ENGR. H. B. NO. 1353 Page 24 1
	1701	+	HB1353 HFLR Page 24
	1702	+	BOLD FACE denotes Committee Amendments. 1
1675	1703		2
1676	1704		3
1677	1705		4
1678	1706		5
1679	1707		6
1680	1708		7
1681	1709		8
1682	1710		9
1683	1711		10
1684	1712		11
1685	1713		12
1686	1714		13
1687	1715		14
1688	1716		15
1689	1717		16
1690	1718		17
1691	1719		18
1692	1720		19
1693	1721		20
1694	1722		21
1695	1723		22
1696	1724		23
1697	1725		24
1698	1726		1
1699	1727		2
1700	1728		3
1701	1729		4
1702	1730		5
1703	1731		6
1704	1732		7
1705	1733		8
1706	1734		9
1707	1735		10
1708	1736		11
1709	1737		12
1710	1738		13
1711	1739		14
1712	1740		15
1713	1741		16
1714	1742		17
1715	1743		18
1716	1744		19
1717	1745		20
1718	1746		21
1719	1747		22
1720	1748		23
1721	1749		24
1722	1750
1723	1751		7. Except as otherwise provided by subsection I of Section 3658
1724	1752		of this title pursuant to which the exemption authorized by this
1725	1753		paragraph may not be claimed, sales of tangible personal property to
1726	1754		a qualified manufacturer or distributor to be consumed or
1727	1755		incorporated in a new m anufacturing or distribution facility or to
1728	1756		expand an existing manufacturing or distribution faci lity. For
1729	1757		purposes of this paragraph, sales made to a contractor or
1730	1758		subcontractor that has previously entered into a contractual
1731	1759		relationship with a qualified manufacturer or distributor for
1732	1760		construction or expansion of a manufacturing or distribution
1733	1761		facility shall be considered sa les made to a qualified manufacturer
1734	1762		or distributor. For t he purposes of this paragraph, "qualified
1735	1763		manufacturer or distributor " means:
1736	1764		a. any manufacturing enterprise whose total cost of
1737	1765		construction of a new or expanded facil ity exceeds the
1738	1766		sum of Five Million Dollars ($5,000,000.00) and in
1739	1767		which at least one h undred (100) new full -time-
1740	1768		equivalent employees, as certified by the Okl ahoma
1741	1769		Employment Security Commission, are added and
1742	1770		maintained for a period of at least thirty -six (36)
1743	1771		months as a direct re sult of the new or expanded
1744	1772		facility,
1745	1773		b. any manufacturing enterprise whose total cost of
1746	1774		construction of a new or expanded facilit y exceeds the
1747		-	ENGR. H. B. NO. 1353 Page 25 1
	1775	+	HB1353 HFLR Page 25
	1776	+	BOLD FACE denotes Committee Amendments. 1
1748	1777		2
1749	1778		3
1750	1779		4
1751	1780		5
1752	1781		6
1753	1782		7
1754	1783		8
1755	1784		9
1756	1785		10
1757	1786		11
1758	1787		12
1759	1788		13
1760	1789		14
1761	1790		15
1762	1791		16
1763	1792		17
1764	1793		18
1765	1794		19
1766	1795		20
1767	1796		21
1768	1797		22
1769	1798		23
1770	1799		24
1771	1800		1
1772	1801		2
1773	1802		3
1774	1803		4
1775	1804		5
1776	1805		6
1777	1806		7
1778	1807		8
1779	1808		9
1780	1809		10
1781	1810		11
1782	1811		12
1783	1812		13
1784	1813		14
1785	1814		15
1786	1815		16
1787	1816		17
1788	1817		18
1789	1818		19
1790	1819		20
1791	1820		21
1792	1821		22
1793	1822		23
1794	1823		24
1795	1824
1796	1825		sum of Ten Million Dollars ($10,000,000.00) a nd the
1797	1826		combined cost of construction m aterial, machinery,
1798	1827		equipment and other tangible personal property exempt
1799	1828		from sales tax under the provisions of this paragraph
1800	1829		exceeds the sum of Fifty Millio n Dollars
1801	1830		($50,000,000.00) and in which at least seventy -five
1802	1831		(75) new full-time-equivalent employees, as certified
1803	1832		by the Oklahoma Employment Security Commission, are
1804	1833		added and maintained for a period of at least thirty -
1805	1834		six (36) months as a direct result of the new or
1806	1835		expanded facility,
1807	1836		c. any manufacturing enter prise whose total cost of
1808	1837		construction of an expanded facility exc eeds the sum
1809	1838		of Three Hundred Million Dollars ($300,000,000 .00) and
1810	1839		in which the manufacturer has and maintains an average
1811	1840		employment level of at least one thousand seven
1812	1841		hundred fifty (1,750) full-time-equivalent employees,
1813	1842		as certified by the Employment Security Commission, or
1814	1843		d. any enterprise primarily engaged in the general
1815	1844		wholesale distribution of groceries defined or
1816	1845		classified in the North American Industry
1817	1846		Classification System (NAI CS) Manual under Industry
1818	1847		Groups No. 4244 and 4245 and which has a t least
1819	1848		seventy-five percent (75%) of its total sales to in -
1820		-	ENGR. H. B. NO. 1353 Page 26 1
	1849	+	HB1353 HFLR Page 26
	1850	+	BOLD FACE denotes Committee Amendments. 1
1821	1851		2
1822	1852		3
1823	1853		4
1824	1854		5
1825	1855		6
1826	1856		7
1827	1857		8
1828	1858		9
1829	1859		10
1830	1860		11
1831	1861		12
1832	1862		13
1833	1863		14
1834	1864		15
1835	1865		16
1836	1866		17
1837	1867		18
1838	1868		19
1839	1869		20
1840	1870		21
1841	1871		22
1842	1872		23
1843	1873		24
1844	1874		1
1845	1875		2
1846	1876		3
1847	1877		4
1848	1878		5
1849	1879		6
1850	1880		7
1851	1881		8
1852	1882		9
1853	1883		10
1854	1884		11
1855	1885		12
1856	1886		13
1857	1887		14
1858	1888		15
1859	1889		16
1860	1890		17
1861	1891		18
1862	1892		19
1863	1893		20
1864	1894		21
1865	1895		22
1866	1896		23
1867	1897		24
1868	1898
1869	1899		state customers or buyers and whose total cost of
1870	1900		construction of a new or expanded facility exceeds the
1871	1901		sum of Forty Million Doll ars ($40,000,000.00) with
1872	1902		such construction commencing on or after July 1, 2005,
1873	1903		and before December 31, 2005, and which at l east fifty
1874	1904		new full-time-equivalent employees, as certified by
1875	1905		the Oklahoma Employment Security Commission, are added
1876	1906		and maintained for a period of at least thirty -six
1877	1907		(36) months as a direct resu lt of the new or expanded
1878	1908		facility.
1879	1909		For purposes of this pa ragraph, the total cost of construction
1880	1910		shall include building and const ruction material and engineering and
1881	1911		architectural fees or charges directly associated with the
1882	1912		construction of a new or expa nded facility. The total cost of
1883	1913		construction shall not in clude attorney fees. For purposes of
1884	1914		subparagraph c of this paragraph, the total cost of construction
1885	1915		shall also include the cost of qualified depreciable property as
1886	1916		defined in Section 2357.4 of this title and labor services performed
1887	1917		in the construction of an expanded facility. For the purpose of
1888	1918		subparagraph d of this par agraph, the total cost of construction
1889	1919		shall also include t he cost of all parking, security and d ock
1890	1920		structures or facilities necessary to manage, process or secure
1891	1921		vehicles used to receive and/or distribute groceries through such a
1892	1922		facility. The employme nt requirement of this paragraph can be
1893		-	ENGR. H. B. NO. 1353 Page 27 1
	1923	+	HB1353 HFLR Page 27
	1924	+	BOLD FACE denotes Committee Amendments. 1
1894	1925		2
1895	1926		3
1896	1927		4
1897	1928		5
1898	1929		6
1899	1930		7
1900	1931		8
1901	1932		9
1902	1933		10
1903	1934		11
1904	1935		12
1905	1936		13
1906	1937		14
1907	1938		15
1908	1939		16
1909	1940		17
1910	1941		18
1911	1942		19
1912	1943		20
1913	1944		21
1914	1945		22
1915	1946		23
1916	1947		24
1917	1948		1
1918	1949		2
1919	1950		3
1920	1951		4
1921	1952		5
1922	1953		6
1923	1954		7
1924	1955		8
1925	1956		9
1926	1957		10
1927	1958		11
1928	1959		12
1929	1960		13
1930	1961		14
1931	1962		15
1932	1963		16
1933	1964		17
1934	1965		18
1935	1966		19
1936	1967		20
1937	1968		21
1938	1969		22
1939	1970		23
1940	1971		24
1941	1972
1942	1973		satisfied by the employment of a portion of the required number of
1943	1974		new full-time-equivalent employees at a manufacturing or
1944	1975		distribution facilit y that is related to or supported by the new or
1945	1976		expanded manufacturing o r distribution facility as long as both
1946	1977		facilities are owned by one person or business entity. F or purposes
1947	1978		of this section, "manufacturing facility" shall mean building and
1948	1979		land improvements used in manufacturing as defined in Section 1352
1949	1980		of this title and shall also mean building and land improvements
1950	1981		used for the purpose of packing, repackaging, labeling or assembling
1951	1982		for distribution to market, products at least seventy percent (7 0%)
1952	1983		of which are made in Oklahoma by the same company but at an off -
1953	1984		site, in-state manufacturing or distribution facility or facili ties.
1954	1985		It shall not include a retail o utlet unless the retail outl et is
1955	1986		operated in conjunction with and on the same site or premises as the
1956	1987		manufacturing facility. Up to ten percent (10%) of the square feet
1957	1988		of a manufacturing or distribution facility bui lding may be devoted
1958	1989		to office space used to provide clerical supp ort for the
1959	1990		manufacturing operation. Such ten percent (10% ) may be in a
1960	1991		separate building as long as it is part of the same contig uous tract
1961	1992		of property on which the manufacturing or distri bution facility is
1962	1993		located. Only sales of tangible personal prope rty made after June
1963	1994		1, 1988, shall be eligible for the exem ption provided by this
1964	1995		paragraph. The exemption authorized pursuant to subparagraph d of
1965	1996		this paragraph shall only become effectiv e when the governing body
1966		-	ENGR. H. B. NO. 1353 Page 28 1
	1997	+	HB1353 HFLR Page 28
	1998	+	BOLD FACE denotes Committee Amendments. 1
1967	1999		2
1968	2000		3
1969	2001		4
1970	2002		5
1971	2003		6
1972	2004		7
1973	2005		8
1974	2006		9
1975	2007		10
1976	2008		11
1977	2009		12
1978	2010		13
1979	2011		14
1980	2012		15
1981	2013		16
1982	2014		17
1983	2015		18
1984	2016		19
1985	2017		20
1986	2018		21
1987	2019		22
1988	2020		23
1989	2021		24
1990	2022		1
1991	2023		2
1992	2024		3
1993	2025		4
1994	2026		5
1995	2027		6
1996	2028		7
1997	2029		8
1998	2030		9
1999	2031		10
2000	2032		11
2001	2033		12
2002	2034		13
2003	2035		14
2004	2036		15
2005	2037		16
2006	2038		17
2007	2039		18
2008	2040		19
2009	2041		20
2010	2042		21
2011	2043		22
2012	2044		23
2013	2045		24
2014	2046
2015	2047		of the municipality in which the enterpr ise is located approves a
2016	2048		resolution expressing the municip ality’s support for the
2017	2049		construction for such new or expanded facility. Upon approval by
2018	2050		the municipality, the municipality shall forward a copy of such
2019	2051		resolution to the Oklahoma Tax Commission;
2020	2052		8. Sales of tangible personal property purchased and used by a
2021	2053		licensed radio or television station in broadcasting. This
2022	2054		exemption shall not apply unless such machinery and equipment is
2023	2055		used directly in the manufacturing proc ess, is necessary for the
2024	2056		proper production of a broadcast signal or is such that the f ailure
2025	2057		of the machinery or equipment to operate would cause broadcasting to
2026	2058		cease. This exemption begins with the equipment used i n producing
2027	2059		live programming or the el ectronic equipment directly behind the
2028	2060		satellite receiving dish or antenna, and ends wi th the transmission
2029	2061		of the broadcast signal from the broadcast antenna s ystem. For
2030	2062		purposes of this paragraph, "proper production" shall include, but
2031	2063		not be limited to, machinery or equipment requ ired by Federal
2032	2064		Communications Commission rules and regulat ions;
2033	2065		9. Sales of tangible personal property purchased or used by a
2034	2066		licensed cable television operator in cablecasting. This exem ption
2035	2067		shall not apply unless such mach inery and equipment is used directly
2036	2068		in the manufacturing process, is necessary for the proper production
2037	2069		of a cablecast signal or is such that the failure of the machinery
2038	2070		or equipment to operate would cause cablecast ing to cease. This
2039		-	ENGR. H. B. NO. 1353 Page 29 1
	2071	+	HB1353 HFLR Page 29
	2072	+	BOLD FACE denotes Committee Amendments. 1
2040	2073		2
2041	2074		3
2042	2075		4
2043	2076		5
2044	2077		6
2045	2078		7
2046	2079		8
2047	2080		9
2048	2081		10
2049	2082		11
2050	2083		12
2051	2084		13
2052	2085		14
2053	2086		15
2054	2087		16
2055	2088		17
2056	2089		18
2057	2090		19
2058	2091		20
2059	2092		21
2060	2093		22
2061	2094		23
2062	2095		24
2063	2096		1
2064	2097		2
2065	2098		3
2066	2099		4
2067	2100		5
2068	2101		6
2069	2102		7
2070	2103		8
2071	2104		9
2072	2105		10
2073	2106		11
2074	2107		12
2075	2108		13
2076	2109		14
2077	2110		15
2078	2111		16
2079	2112		17
2080	2113		18
2081	2114		19
2082	2115		20
2083	2116		21
2084	2117		22
2085	2118		23
2086	2119		24
2087	2120
2088	2121		exemption begins with the equipment used in pr oducing local
2089	2122		programming or the electronic equipment behin d the satellite
2090	2123		receiving dish, microwave tower or antenna, and ends wit h the
2091	2124		transmission of the signal from the cablecast head -end system. For
2092	2125		purposes of this paragr aph, "proper production" shall include, but
2093	2126		not be limited to, machinery or equipment r equired by Federal
2094	2127		Communications Commission rules and regulations;
2095	2128		10. Sales of packaging materials for use in packing, shipping
2096	2129		or delivering tangible personal proper ty for sale when sold to a
2097	2130		producer of agricultural products. This exemption shall not apply
2098	2131		to the sale of any packaging material which is ordinarily known a s a
2099	2132		returnable container;
2100	2133		11. Sales of any pattern used in the process of manufacturing
2101	2134		iron, steel or other metal castings. The exemption provided by this
2102	2135		paragraph shall be applica ble irrespective of ownership of the
2103	2136		pattern provided that such pattern is used in the commercial
2104	2137		production of metal castings;
2105	2138		12. Deposits or other charges made and w hich are subsequently
2106	2139		refunded for returnable cartons, crates, pallets, and containers
2107	2140		used to transport cement and cement products;
2108	2141		13. Beginning January 1, 1998, machinery, electricity, fuels,
2109	2142		explosives and materia ls, excluding chemicals, used in the m ining of
2110	2143		coal in this state;
2111		-	ENGR. H. B. NO. 1353 Page 30 1
	2144	+	HB1353 HFLR Page 30
	2145	+	BOLD FACE denotes Committee Amendments. 1
2112	2146		2
2113	2147		3
2114	2148		4
2115	2149		5
2116	2150		6
2117	2151		7
2118	2152		8
2119	2153		9
2120	2154		10
2121	2155		11
2122	2156		12
2123	2157		13
2124	2158		14
2125	2159		15
2126	2160		16
2127	2161		17
2128	2162		18
2129	2163		19
2130	2164		20
2131	2165		21
2132	2166		22
2133	2167		23
2134	2168		24
2135	2169		1
2136	2170		2
2137	2171		3
2138	2172		4
2139	2173		5
2140	2174		6
2141	2175		7
2142	2176		8
2143	2177		9
2144	2178		10
2145	2179		11
2146	2180		12
2147	2181		13
2148	2182		14
2149	2183		15
2150	2184		16
2151	2185		17
2152	2186		18
2153	2187		19
2154	2188		20
2155	2189		21
2156	2190		22
2157	2191		23
2158	2192		24
2159	2193
2160	2194		14. Deposits, rent or other charges made for returnable
2161	2195		cartons, crates, pallets, and containers used to transport mushrooms
2162	2196		or mushroom products from a farm for resal e to the consumer or
2163	2197		processor;
2164	2198		15. Sales of tangible pers onal property and services u sed or
2165	2199		consumed in all phases of the extraction and manufac turing of
2166	2200		crushed stone and sand, including but not limited to site
2167	2201		preparation, dredging, overburden removal, explosive placement and
2168	2202		detonation, onsite material haulin g and/or transfer, material
2169	2203		washing, screening and/or crushing, product weighing and si te
2170	2204		reclamation; and
2171	2205		16. Sale, use or consumption of paper stock and oth er raw
2172	2206		materials which are manufactured into commercial pri nted material in
2173	2207		this state primarily for use and delivery outside this state. For
2174	2208		the purposes of this section, "commercial printed material" shall
2175	2209		include magazines, catalogs, retail inserts and direct mail.
2176	2210		SECTION 3. This act shall be come effective November 1, 2023.
2177	2211
2178		-	ENGR. H. B. NO. 1353 Page 31 1
2179		-	2
2180		-	3
2181		-	4
2182		-	5
2183		-	6
2184		-	7
2185		-	8
2186		-	9
2187		-	10
2188		-	11
2189		-	12
2190		-	13
2191		-	14
2192		-	15
2193		-	16
2194		-	17
2195		-	18
2196		-	19
2197		-	20
2198		-	21
2199		-	22
2200		-	23
2201		-	24
2202		-	1
2203		-	2
2204		-	3
2205		-	4
2206		-	5
2207		-	6
2208		-	7
2209		-	8
2210		-	9
2211		-	10
2212		-	11
2213		-	12
2214		-	13
2215		-	14
2216		-	15
2217		-	16
2218		-	17
2219		-	18
2220		-	19
2221		-	20
2222		-	21
2223		-	22
2224		-	23
2225		-	24
2226		-
2227		-	Passed the House of Representatives the 14th day of March, 2023.
2228		-
2229		-
2230		-
2231		-
2232		-	Presiding Officer of the House
2233		-	of Representatives
2234		-
2235		-
2236		-	Passed the Senate the ___ day of __________, 2023.
2237		-
2238		-
2239		-
2240		-
2241		-	Presiding Officer of the Senate
2242		-
2243		-
	2212	+	COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 02/27/2023 - DO PASS,
	2213	+	As Amended.