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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1447 By: Provenzano
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 1356, as amended by Section 1,
Chapter 394, O.S.L. 2022 (68 O.S. Supp. 2022, Section
1356), which relates to sales tax exemptions;
providing sales tax exemption for sales to or by
certain entity engaged in support of STEM education;
providing an effective da te; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356, as
last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
2022, Section 1356), is amended to read as follows:
Section 1356. Exemptions - Governmental and nonprofit entities .
There are hereby specifically exempted from the tax levied by
Section 1350 et seq. of th is title:
1. Sale of tangible personal property or se rvices to the United
States government or to the Sta te of Oklahoma, any political
subdivision of this state or a ny agency of a political subdivision
of this state; provided, all sales to contractors in connection with
the performance of any contract with t he United States government,
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State of Oklahoma or an y of its political subdivisions shall not be
exempted from the tax levied by Section 1350 et seq. of this title,
except as hereinafter provided;
2. Sales of property to agents appointed by or under contr act
with agencies or instrumentalities of the United States government
if ownership and possession of such prope rty transfers immediately
to the United States government;
3. Sales of property to age nts appointed by or under contract
with a political subdi vision of this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the political subdivision or the state;
4. Sales made directly by county, district or state fair
authorities of this state, upon the premises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at any location in the state
authorized by county, district or state fair authorities; provided,
the exemption provided by this paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority. As used
in this paragraph, "fair event" shall be limited to an even t held on
the premises of the fair authority in conjunction with and during
the time period of a county, district or state fair;
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5. Sale of food in cafeterias or lunchrooms of elementary
schools, high schools, colleges or universities which are operated
primarily for teachers and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, char itable or
educational societies or organizations by regular members thereof,
provided, such societies or organiz ations operate under what is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inures
to the benefit of any individual member or members thereof to the
exclusion of other members and du es paid monthly or annually to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libr aries with students
interested in the study of geolo gy, petroleum engineering or related
subjects;
7. Sale of tangible personal property or services to or by
churches, except sales made in the c ourse of business for profit or
savings, competing with other persons engaged in the same or a
similar business or sale of tangible personal property or services
by an organization exempt from federal income tax pursuant to
Section 501(c)(3) of the Interna l Revenue Code of 1986, as amended,
made on behalf of or at t he request of a church or churches if the
sale of such property is conducted not more than once each calendar
year for a period not to exceed three (3) days by the organization
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and proceeds from the sale of such property are used by the church
or churches or by the organization for charitable purposes;
8. The amount of proceeds received from the sale of admission
tickets which is separately stated on the ticket of admission for
the repayment of money borrowed by any accredited state -supported
college or university or any public trust of which a county in th is
state is the beneficiary, for the purpose of constructing or
enlarging any facility to be used for the staging of an athletic
event, a theatrical production, or any other form of entertainment,
edification or cultural cultivation to which entry is gaine d with a
paid admission ticket. Such facilities include, bu t are not limited
to, athletic fields, athletic stadiums, field houses, amphitheat ers
and theaters. To be eligible for this sales tax exemption , the
amount separately stated on the admission tick et shall be a
surcharge which is imposed, collected and used for the sole purpose
of servicing or aiding in the servicing of debt incurred by the
college or university to effect the capital improvements
hereinbefore described;
9. Sales of tangible persona l property or services to the
council organizations or simil ar state supervisory organizations of
the Boy Scouts of America, Girl Scouts of U .S.A. and Camp Fire USA;
10. Sale of tangible personal propert y or services to any
county, municipality, rural wat er district, public school district,
city-county library system, the institutions of The Oklahoma State
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System of Higher Education, the Gran d River Dam Authority, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, C ity of Tulsa-Rogers County Port
Authority, Muskogee City -County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic Development
Authority, Ardmore Development Authority, D urant Industrial
Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
Master Conservancy District, Arb uckle Master Conservancy District,
Fort Cobb Master Conservancy District, Foss R eservoir Master
Conservancy District, Mountain Park Master Conse rvancy District,
Waurika Lake Master Conservancy Dis trict and the Office of
Management and Enterprise Services o nly when carrying out a public
construction contract on behalf of the Oklahoma D epartment of
Veterans Affairs, and effective July 1, 2022, the U niversity
Hospitals Trust, or to any person with who m any of the above-named
subdivisions or agencies of this st ate has duly entered into a
public contract pursuant to law, necessary for carry ing out such
public contract or to any subcontractor to such a p ublic contract.
Any person making purchases on beha lf of such subdivision or agency
of this state shall certify , in writing, on the copy of the invoice
or sales ticket to be retained by the v endor that the purchases are
made for and on behalf of such subd ivision or agency of this state
and set out the name of such public subdivision or agency. Any
person who wrongfully or erroneously certifies that purchases are
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for any of the above -named subdivisions or agencies of this state or
who otherwise violates th is section shall be guilty of a misdemeanor
and upon conviction thereof shall be fined an amount equal to double
the amount of sales tax involved or incarcerated for not more than
sixty (60) days or both;
11. Sales of tangible personal property or service s to private
institutions of higher education and pr ivate elementary and
secondary institutions of education acc redited by the State
Department of Education or registered by the State Board o f
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma State Regents for Higher
Education which are exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) i ncluding
materials, supplies and equipment used in the constructi on and
improvement of buildings and other structures owned by the
institutions and operated for educational purp oses.
Any person, firm, agency or entity making purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the copy of the invoice or sales ticket th e nature of
the purchases, and violation of this paragraph s hall be a
misdemeanor as set forth in paragraph 10 of this section;
12. Tuition and educational fees paid to private institutions
of higher education and private elementary and secondary
institutions of education accredited by the State Department of
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Education or registered by the State Board of Education for purposes
of participating in federal programs or accredited as defined by the
Oklahoma State Regents for Higher Education which are exempt f rom
taxation pursuant to the provisions of the Internal Reve nue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering i nstruction for grade
levels kindergarten through twe lfth grade,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student group or
organization,
(6) a parent-teacher association or organization
other than as specified in subparagraph b of this
paragraph, or
(7) public or private school personnel for purposes
of raising funds for the benefit of a public or
private school, public school district, public or
private school board or public or private school
student group or organization, or
b. Sales of tangible per sonal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
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Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
which solicit money or property in the name of any
public or private sc hool or public school district.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to those public or private
schools accredited by the State De partment of Education or
registered by the State Board of Ed ucation for purposes of
participating in federal programs. Sale of tangible personal
property in this paragraph shall include sale of adm ission tickets
and concessions at athletic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional or state 4-H councils,
c. county, regional or state 4 -H committees,
d. 4-H leader associations,
e. county, regional or state 4-H foundations, and
f. authorized 4-H camps and training centers.
The exemption provided by this paragraph sh all be limited to
sales for the purpose of raising funds for the benefit of such
organizations. Sale of tangible personal property e xempted by this
paragraph shall include sale of admission tickets;
15. The first Seventy-five Thousand Dollars ($75,000.0 0) each
year from sale of tickets and concessions at athletic events by each
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organization exempt from taxation pursuant to the provis ions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to a ny
person with whom the Oklahoma Tourism and Recreation Department has
entered into a public contract and which is necessary for carr ying
out such contract to assist the Department in the development a nd
production of advertising, promotion, publicity and public relations
programs;
17. Sales of tangible personal property or services to fire
departments organized pursuant to Section 59 2 of Title 18 of the
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person maki ng purchases on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales ticket to be retain ed by the vendor that the
purchases are made for and on behalf of suc h fire department and set
out the name of such fire de partment. Any person who wrongfully or
erroneously certifies that the purchases are for any such fire
department or who otherwise vi olates the provisions of this section
shall be deemed guilty of a mis demeanor and upon conviction thereof,
shall be fined an amount equal to double the amount of sales tax
involved or incarcerated for not more than sixty (60) days, or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, ent ertainment, exhibition, display or other
recreational events or activities which are issued through a box
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office or other entity which is operated by a state institution of
higher education with institutional employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of t he fire
department. Fire departments sell ing tangible personal property for
the purposes of raising funds shall be limited to no more than six
(6) days each year to raise such funds in order to receive t he
exemption granted by this paragraph;
20. Sales of tangible personal property or services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army and which is exempt from taxation
pursuant to the prov isions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible personal property or services to any
organization, which takes court -adjudicated juveniles for purposes
of rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U .S.C., Section
501(c)(3), provided that at least fifty percent (50%) of the
juveniles served by such organization are court adjudicated and the
organization receives state funds in an amount less than ten percent
(10%) of the annual budget of the organizat ion;
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22. Sales of tangible personal property or services to:
a. any health center as defined in Section 254b of Title
42 of the United States Code,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revolving Fund pursuant
to the provisions of Section 66 of Title 56 of the
Oklahoma Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statut es;
23. Dues or fees including free or complimentar y dues or fees
which have a value equivalent to the charge that could have
otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
centers for the use of facilities and programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property or services to or by a
cultural organization established to sponsor and promote
educational, charitable and cultural events for disadvantaged
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children, and which or ganization is exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible personal property or services to museums
or other entities which have been accredited by the American
Association of Museums. Any person making purchases on behal f of
any such museum or other entity shall certify, in writing, on the
copy of the invoice or sales ticket to be retained by the vendor
that the purchases are made for and on behalf of such museum or
other entity and set out the name of such museum or othe r entity.
Any person who wrongfully or erroneously certifies that the
purchases are for any such museum or other entity or who otherwise
violates the provisions of this paragraph shall be deemed guilty o f
a misdemeanor and, upon conviction thereof, shall be fined an amount
equal to double the amount of sales tax involved or incarcerated for
not more than sixty (60) days, or by both such fine and
incarceration;
26. Sales of tickets for admission by any mu seum accredited by
the American Association of Museu ms. In order to be eligible for
the exemption provided by this paragraph, an amount equivalent to
the amount of the tax which would otherwise be required to be
collected pursuant to the provisions of Sec tion 1350 et seq. of this
title shall be separately stated on the admission ticket and shall
be collected and used for the sole purpose of servicing or aiding in
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the servicing of debt incurred by the museum to effect the
construction, enlarging or renovati on of any facility to be used for
entertainment, edification or cultural cultivation to which entry is
gained with a paid admission ticket;
27. Sales of tangible personal property or services occurring
on or after June 1, 1995, to children 's homes which are supported or
sponsored by one or more churches, m embers of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans, Department of
Oklahoma, Inc., and subordina te chapters thereof;
29. Sales of tangible personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organization;
30. a. Until July 1, 2022, transfer of tangible perso nal
property made pursuant to Section 3226 of Title 63 of
the Oklahoma Statutes by the University Hospitals
Trust, and
b. Effective July 1, 2022, transfer of tangible personal
property or services to or by:
(1) the University Hospitals Trust created pursua nt
to Section 3224 of Title 63 of the Oklahoma
Statutes, or
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(2) nonprofit entities which are exempt from taxation
pursuant to the provisions of the Internal
Revenue Code of the United States, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the University
Hospitals Trust;
31. Sales of tangible personal property or services to a
municipality, county or school district pursuant to a lease or
lease-purchase agreement executed between the vendor and a
municipality, county or school district. A copy of the lease or
lease-purchase agreement shall be retained by the vendor;
32. Sales of tangible personal property or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storage, consumption or distribution in this
state, whether by the importer, exporter or another person, of any
satellite or any associated launch vehicle including components of,
and parts and motors for, any such satellite or launch vehicle,
imported or caused to be imported into this state for the pur pose of
export by means of launching into space. This exemption provided by
this paragraph shall not be affected by:
a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
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c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launch;
34. The sale, lease, use, storage, consumption or distribution
in this state of any space facilit y, space propulsion system or
space vehicle, satellite o r station of any kind possessing space
flight capacity includi ng components thereof;
35. The sale, lease, use, storage, consumption or distribution
in this state of tangible personal property, place d on or used
aboard any space facility, space propulsion system or space vehicle,
satellite, or station possessing spac e flight capacity, which is
launched into space, irrespective of whether such tangible property
is returned to this state for subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption or distribution
in this state of tangible personal property meeting the definition
of "section 38 property" as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, that is an integral
part of and used primarily in support of space flight; however,
section 38 property used in support of space flight shall not
include general office equipment, any boat, mobile home, motor
vehicle or other vehicle of a class or type required to be
registered, licensed, titled or documented in this state or by the
United States government, or any other property not specifically
suited to supporting space activity. The term "in support of space
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flight", for purposes of this paragraph, means the altering,
monitoring, controlling, regulating, adjusting, servicing or
repairing of any space facility, space propulsion systems or space
vehicle, satellite or station possessing space flight capacity
including the components thereof;
37. The purchase or lease of machinery and equipment for use at
a fixed location in this state, which is used exclusively in the
manufacturing, processing, compounding or producing of any space
facility, space propulsion system or space ve hicle, satellite or
station of any kind possessing space fl ight capacity. Provided, the
exemption provided for in this p aragraph shall not be allowed unless
the purchaser or lessee signs an affidavit stating that the item or
items to be exempted are for t he exclusive use designated herein.
Any person furnishing a false affidavit to the vendor for the
purpose of evading pay ment of any tax imposed by Section 1354 of
this title shall be subject to the penalties provided by law. As
used in this paragraph, "machinery and equipment" means "section 38
property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
Internal Revenue Code of 1986, which is used as an integral part of
the manufacturing, processing, compounding or producing of items of
tangible personal property. Such term includes parts and
accessories only to the extent that the exemption thereof is
consistent with the provisions of this paragraph;
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38. The amount of a surcharge or any other amount which is
separately stated on an admission ticket which is imposed, collected
and used for the sole purpose of constructing, remodeling or
enlarging facilities of a public trust having a municipality or
county as its sole beneficiary;
39. Sales of tangible personal property or services which are
directly used in or for the benefit of a state park in this state,
which are made to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primarily for the purpo se
of supporting one or more state parks located in this stat e;
40. The sale, lease or use of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State System of Higher Education,
private institutions of higher education accredited by the Oklahoma
State Regents for Higher Education or any public school or school
district when such projects are financed by or through the use of
nonprofit entities which are exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
42. Sales of tangible personal property or services by an
organization which is exempt from taxation pursuant to the
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provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), in the course of conducting a national championship
sports event, but on ly if all or a portion of the payment in
exchange therefor would quali fy as the receipt of a qualified
sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the pr ovisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. is affiliated with a comprehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teach er training and
conducting events relating to robotics;
44. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible pe rsonal property to or by youth athletic
teams which are part of an athletic organization exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(4), for the purposes of raising funds for the
benefit of the team;
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45. Sales of tickets for admission to a colle giate athletic
event that is held in a facility owned or opera ted by a municipality
or a public trust of which the municipality is the sole beneficiary
and that actually determines or is part of a tournamen t or
tournament process for determining a conferen ce tournament
championship, a conference championship, or a na tional championship;
46. Sales of tangible personal property or se rvices to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C ., Section
501(c)(3) and is operating the Oklahoma City Nation al Memorial and
Museum, an affiliate of the National Park System;
47. Sales of tangible personal property or services to
organizations which ar e exempt from federal taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the memberships of which are limited to
honorably discharged veterans, and which furnish financial support
to area veterans' organizations to be used for the purpose o f
constructing a memorial or museum;
48. Sales of tangible pe rsonal property or services on or after
January 1, 2003, to an or ganization which is exempt from taxation
pursuant to the provisions of the Inte rnal Revenue Code, 26 U.S.C.,
Section 501(c)(3) th at is expending monies received from a private
foundation grant in conjunction with expenditures of local sales tax
revenue to construct a local public library;
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49. Sales of tangible personal property or s ervices to a state
that borders this state or any political subdivision of that state,
but only to the extent th at the other state or political subdivision
exempts or does not impose a tax on similar sales of items to this
state or a political subdivision of this state;
50. Effective July 1, 2005, sales of tangible personal property
or services to the Career Techno logy Student Organizations under the
direction and supervision of the Oklahoma Department of Career and
Technology Education;
51. Sales of tangible personal property to a public trust
having either a single city, town or county or multiple cities,
towns or counties or combination thereof as beneficiary or
beneficiaries or a nonprofit organization which is exempt from
taxation pursuant to the prov isions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) for the purpose of constructing
improvements to or expanding a hospital or nursing home owned and
operated by any such public trust or nonprofit entity prior to July
1, 2008, in counties wit h a population of less than one hundred
thousand (100,000) persons, according to the most recent Federal
Decennial Census. As used in this paragraph, "constructing
improvements to or expanding" shall not mean any expense for routine
maintenance or general repairs and shall require a project cost of
at least One Hundred Thousand Dollars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subcontractor that
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enters into a contractual relationship with a public trust or
nonprofit entity as described by this paragraph shall be conside red
sales made to the public trust or nonprofit entity. The e xemption
authorized by this paragraph shall be administered in the form of a
refund from the sales tax revenues apportioned pursuant to Section
1353 of this title and the vendor shall be require d to collect the
sales tax otherwise applicable to the transac tion. The purchaser
may apply for a refund of the sales tax p aid in the manner
prescribed by this paragraph. Within thirty (30) days after the end
of each fiscal year, any purchaser that is en titled to make
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such preceding fiscal year. The Tax Co mmission
shall prescribe a form for purposes of ma king the application for
refund. The Tax Commission shall det ermine whether or not the total
amount of sales tax exemptions claimed by all purchasers is equal to
or less than Six Hundred Fifty Thousand Dol lars ($650,000.00). If
such claims are less than or equal to that amount, the Tax
Commission shall make refunds to the purchasers in the full amount
of the documented and ve rified sales tax amounts. If such claims by
all purchasers are in excess of Six H undred Fifty Thousand Dollars
($650,000.00), the T ax Commission shall determine the amount of each
purchaser's claim, the total amount of all claims by all purchasers,
and the percentage each purchaser 's claim amount bears to the total.
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The resulting percentage determined for each purchaser shall be
multiplied by Six Hundred Fifty Thousand Dollars ($650,000.00) to
determine the amount of refundable sales tax to be paid to eac h
purchaser. The pro rata refund amount shall be the only method to
recover sales taxes paid during the preceding fiscal year and n o
balance of any sales taxes paid on a pro rata basis shall be the
subject of any subsequent refund claim pursuant to this p aragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, trains, ed ucates, and
provides housing for physically and mentally handi capped persons and
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
receives at least eighty-five percent (85%) of its annual budget
from state or federal funds. In order to recei ve the benefit of the
exemption authorized by this paragraph, the taxpayer shall be
required to make payment of the applicable sales tax at the time of
sale to the vendor in the manner otherwise required by law.
Notwithstanding any other provision of the Oklahoma Uniform Tax
Procedure Code to the contrary, the taxpayer shall be authorized to
file a claim for refund of sales taxes paid that qualif y for the
exemption authorized by this paragraph f or a period of one (1) year
after the date of the sale transac tion. The taxpayer shall be
required to provide documentation as may be prescribed by the
Oklahoma Tax Commission in support of the refund clai m. The total
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amount of sales tax qualifying for e xempt treatment pursuant to this
paragraph shall not exceed On e Hundred Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
processed in the order in which such claims are received by the
Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
the total amount of refu nds payable for a fiscal year, such claim
shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each year of
sales of tangible person al property or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working directly with a law enforcement
agency with jurisdiction in the area in which the neighborhood watch
organization is located. As used in this paragraph, "qualified
neighborhood watch organization" means an organization that i s a
not-for-profit corporation under the laws of the State of Oklahoma
that was created to help prevent criminal activity in an area
through community involvement and interaction with local law
enforcement and which is one of the first two thousand organiz ations
which makes application to the Oklahoma Tax Commission for the
exemption after March 29, 2006;
54. Sales of tangible personal property t o a nonprofit
organization, exempt from taxation p ursuant to the provisions of the
Internal Revenue Code, 26 U.S .C., Section 501(c)(3), organized
primarily for the purpose of providing services to homeless persons
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during the day and located in a metropolit an area with a population
in excess of five hundre d thousand (500,000) persons according to
the latest Federal D ecennial Census. The exemption authorized by
this paragraph shall be applicable to sales of tangible personal
property to a qualified entity oc curring on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation of wetlands and habitat for wild ducks;
56. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Reven ue Code, 26 U.S.C., Section
501(c)(3) for events t he principal purpose of which is to provide
funding for the preservation and conservation of wild turkeys;
57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of community-based, autonomous
member organizations that meets the following
criteria:
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(1) serves people with workplace disadvantages and
disabilities by providing job training and
employment services, as well as job placement
opportunities and post-employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing and household goods to
sell in retail stores and provides contract labor
services to business and government, and
(4) provides documentation to the Oklahoma Tax
Commission that over seventy -five percent (75%)
of its revenues are channeled into employment,
job training and placement programs and other
critical community services;
58. Sales of tickets made on or after September 21 , 2005, and
complimentary or free tickets for admission issued on or after
September 21, 2005, which have a value equivalent to the charge that
would have otherwise been made, for admiss ion to a professional
athletic event in which a team in the National B asketball
Association is a participant, which is held in a facility owned or
operated by a municipality, a county or a public trust of which a
municipality or a county is the sole benefi ciary, and sales of
tickets made on or after July 1, 2007, and complim entary or free
tickets for admission issued on or after July 1, 2007, which have a
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value equivalent to the charge that would have otherwise been made,
for admission to a professional ath letic event in which a team in
the National Hockey League is a partici pant, which is held in a
facility owned or operated by a municipality, a county or a public
trust of which a municipality or a county is the sol e beneficiary;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been made to a professional sporting event
involving ice hockey, baseball, basketball, football or arena
football, or soccer. A s used in this paragraph, "professional
sporting event" means an organized athletic competition between
teams that are members of an organized league or association with
centralized management, other than a national league or national
association, that imp oses requirements for participation in the
league upon the teams, the i ndividual athletes or both, and which
uses a salary structure to compensate the athletes;
60. Sales of tickets for admission to an annual event sponsored
by an educational and charita ble organization of women which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
promoting volunteerism, developing the potential of women and
improving the community throu gh the effective action and leadership
of trained volunteers;
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61. Sales of tangible personal property or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership
organization is primarily engaged in advancing the purposes of its
member organizations through fundraising, public awareness or other
efforts for the benefit of its member organizations, and if the
member organization is primarily engaged either in providing
educational services and programs concerning health-related diseases
and conditions to individuals suffering from such health-related
diseases and conditions or their caregivers and family members or
support to such individuals, or in health -related research as to
such diseases and condit ions, or both. In order to qualify for the
exemption authorized by this paragraph, the member nonprofit
organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the membership organization;
62. Sales of tangible personal property or services to or by an
organization which is part of a national volunteer women 's service
organization dedicated to promoting patriotism, preserving American
history and securing better education for children and which has at
least 168,000 members in 3,000 chapters across the United States;
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63. Sales of tangible personal property or servi ces to or by a
YWCA or YMCA organization which is part of a national nonprofit
community service organization working to meet the health and soc ial
service needs of its members across the United States;
64. Sales of tangible personal property or services to or by a
veteran's organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(19) and which is known as the Veterans of Foreign Wars of the
United States, Oklahoma Chapters;
65. Sales of boxes of food by a church or by an organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S. C., Section 501(c)(3). To qualify
under the provisions of this paragraph, the organization must be
organized for the primary purpose of feeding needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes shall only contain edible staple food
items;
66. Sales of tangible personal property or services to any
person with whom a church has duly entered into a construction
contract, necessary for carrying out such contract or to any
subcontractor to suc h a construction contract;
67. Sales of tangible personal property or services used
exclusively for charitable or educational purposes, to or by an
organization which:
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a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of developmentally
disabled individuals, and
(3) promoting unity among developm entally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or servic es to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3); provided, until July 1, 2008, such exemption sha ll apply
only to eligible shelters for children from birth to age twelve (12)
and after July 1, 2008, such exemption shall apply to eligi ble
shelters for children from birth to age eighteen (18);
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69. Sales of tangible personal property or services to a c hild
care center which is licensed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Program or a national
accreditation, and
b. allows on-site universal prekindergarten education to
be provided to four-year-old children through a
contractual agreement with any public school or sch ool
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has entered previously into a
contractual relationship with a child care center for construction
and improvement of buildings and other structures owned by the child
care center and operated for educational purposes shall be
considered sales made to a child care cent er. Any such person,
firm, agency or entity making purchases on behalf of a child care
center shall certify, in writing, on the copy of the invoice or
sales ticket the nature of the purchase. Any such person, or person
acting on behalf of a firm, agency or entity making purchases on
behalf of a child care center in violation of this paragraph shall
be guilty of a misdemeanor and upon convicti on thereof shall be
fined an amount equal to double the amount of sales tax involved or
incarcerated for not more t han sixty (60) days or both;
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70. a. Sales of tangible personal property to a service
organization of mothers who have children who are
serving or who have served in the military, which
service organization is exempt from taxation pursuant
to the provisions of the Internal Revenue Code , 26
U.S.C., Section 501(c)(19) and which is known as the
Blue Star Mothers of America, Inc. The exemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actually sent
to United States military personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the organization.
Provided, this exemption shall not apply to any sales
tax levied by a city, town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph shall be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Section 1353 of
this title, and the vendor shall be required to
collect the sales tax otherwise applicable to the
transaction. The purchaser may apply for a refund of
the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60) days after the end
of each calendar quarter, any purchaser that is
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entitled to make application for a refund based upon
the exempt treatment authorized by this paragraph may
file an application for refund of the state sales
taxes paid during such preceding calendar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military personnel overseas in a combat zone.
Any purchaser that applies for a refund for the
purchase of items that are not authorized for
exemption under this paragraph shall be subject to a
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack items to or by an organization
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S .C., Section 501(c)(3), whose primary
and principal purpose is providing funding for scholarships in the
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizations which are exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing
end-of-life care and access to hospice services to low -income
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individuals who live in a facility owned by the organization. The
exemption provided by this paragraph applies to sales to the
organization as well as to sales to any person with who m the
organization has duly entered into a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any person making purchases on behalf
of such organization shall certify, in writing, on th e copy of the
invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf of such organization and set
out the name of such organization. Any person who wrongfully or
erroneously certifies that purchases are for any of the above-named
organizations or who otherwise violates this section shall be guilty
of a misdemeanor and upon conviction thereof shall be fi ned an
amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or both;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
organized for the purpose of supporting general hospitals lice nsed
by the State Department of Health;
74. Sales of tangible personal property or services:
a. to a foundation which is exempt from taxation p ursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and which raises tax -
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deductible contributions in support of a wide range of
firearms-related public interest activities of the
National Rifle Association of America and ot her
organizations that defend and foster Second Amendment
rights, and
b. to or by a grassroots fundraising progr am for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagraph a of this
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) which are related to a fundraising event
sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days and when the sales are no t in
the organization's or the entity's regular course of busi ness.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admittance to the fundraising event and items
which were donated to the organization or entity for sale at the
event;
76. Effective November 1, 2017, sales of t angible personal
property or services to an organization which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and operates as a col laborative model
which connects community agencies in one loca tion to serve
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individuals and families affected by violence and where victims have
access to services and advocacy at no cost to the victim;
77. Effective July 1, 2018, sales of tangible person al property
or services to or by an association which is exemp t from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the National Guard
Association of Oklahoma;
78. Effective July 1, 20 18, sales of tangible personal property
or services to or by a n association which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(4) and which is k nown as the Marine Corps League of
Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchase is made by the entity
chartered by the United States Congress or is an entity organized
under the laws of this or another state pursuant to the authority of
the national American Legion organization;
80. Sales of tangible pe rsonal property or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter, and
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c. able to provide documentation that its primary and
principal purpose is to provide c ommunity access to
advanced 21st century manufactu ring and digital
fabrication tools for science, technology,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustaining
businesses and producing personalized products;
81. Effective November 1, 2021, sales of tangible personal
property or services used solely for construction an d remodeling
projects to an organization which is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26 U.S.C., Secti on
501(c)(3), and which meets the following requir ements:
a. its primary purpose is to construct or remodel and
sell affordable housing and provide homeownership
education to residents of Oklahoma that have an income
that is below one hundred percent (100% ) of the Family
Median Income guidelines as define d by the U.S.
Department of Housing and Urban Development,
b. it conducts its activities in a manner that serves
public or charitable purposes, rather than commercial
purposes,
c. it receives funding and re venue and charges fees in a
manner that does not i ncentivize it or its employees
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to act other than in the best i nterests of its
clients, and
d. it compensates its employees in a manner that does not
incentivize employees to act other than in the best
interests of its clients;
82. Effective November 1, 20 21, sales of tangible personal
property or services to a nonpr ofit entity, organized pursuant to
Oklahoma law before January 1, 2022, exempt from federal income
taxation pursuant to Section 501(c) of the Internal Revenue Code of
1986, as amended, the princ ipal functions of which are to provide
assistance to natural p ersons following a disaster, with program
emphasis on repair or restoration to single -family residential
dwellings or the construction of a re placement single-family
residential dwelling. As us ed in this paragraph, "disaster" means
damage to property with or without accompanying injury to persons
from heavy rain, high winds, tornadic winds, drought, wildfire,
snow, ice, geologic disturbances, e xplosions, chemical accidents or
spills and other events causing damage to property on a large scale.
For purposes of this paragraph, an entity that expended at least
seventy-five percent (75%) of its funds on the restoration to
single-family housing following a disaster including related general
and administrative expenses, shall be eligible for the exemption
authorized by this paragraph;
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83. Effective November 1, 2021, through December 31, 2024,
sales of tangible personal property or services to a mus eum that:
a. operates as a part of an organization wh ich is exempt
from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) ,
b. is not accredited by the American Alliance of Museums,
and
c. operates on an annua l budget of less than One Million
Dollars ($1,000,000.00 );
84. Until July 1, 2022, sales of tangible personal property or
services for use in a clinical practice or medical facility operated
by an organization which is exempt from taxation pursuant t o the
provisions of the Internal Revenue Code of the Unit ed States, 26
U.S.C., Section 501(c)(3), and which has entered into a joint
operating agreement with the Unive rsity Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statut es. The
exemption provided by this paragraph shall be li mited to the
purchase of tangible personal property and services fo r use in
clinical practices or medical faci lities acquired or leased by the
organization from the University Hospitals Authority, Un iversity
Hospitals Trust, or the University of Oklahoma o n or after June 1,
2021; and
85. Sales of tangible personal proper ty or services to a
nonprofit entity, organized pursuant to Oklahoma law before January
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1, 2019, exempt from federal income taxation pursuant to Section
501(c) of the Internal Revenue Code of 1986, as amended, the
principal functions of which are to provid e assistance to natural
persons following a disaster, with program emphasis on repair or
restoration to single -family residential dw ellings or the
construction of a replacement single -family residential dwelling.
For purposes of this paragraph, an entity operated exclusively for
charitable and educational purposes through the coordination of
volunteers for the disaster recovery of hom es (as derived from Part
III, Statement of Program Servic es, of Internal Revenue Service Form
990) and offers its services f ree of charge to disaster survivors
statewide who are low income with no or limited means of recovery on
their own for the restorati on to single-family housing following a
disaster including related general and administrative expenses,
shall be eligible fo r the exemption authorized by this paragraph.
The exemption provided by this paragraph shall only be applicable to
sales made on or after the effective date of this act. As used in
this paragraph, "disaster" means damage to property with or without
accompanying injury to persons from heavy rain, high winds, tornadic
winds, drought, wildfire, snow, ice, geologic disturbances,
explosions, chemical accidents or spills and other events causing
damage to property on a large scale; and
86. Sales of tangible personal property or services to or by a
nonprofit organization, formed pursuant to the provisions of
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Oklahoma law, exempt fr om federal income taxation pursuant to the
provisions of Section 501(c)(3 ) of the Internal Revenue Code of
1986, as amended, having its pri ncipal purpose the support of
Science, Technology, Engineering and Mathem atics ("STEM") education
curriculum and related activities.
SECTION 2. This act shall become effective July 1, 2023.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage an d approval.
59-1-6098 MAH 01/15/23