Oklahoma 2024 Regular Session

Oklahoma House Bill HB1955 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 1955 By: McCall, O'Donnell, Waldron,
4		-	McDugle, Wolfley, Roberts,
5		-	Echols, Provenzano, Menz,
6		-	Deck, Hays, Pae, Baker,
7		-	Dobrinski, George, May,
8		-	Gann, Lowe (Dick),
9		-	Pfeiffer, Culver, Sta rk,
10		-	Marti, Grego, Osburn,
11		-	Cantrell, Maynard, Moore,
12		-	Duel, Stinson, Talley, West
13		-	(Rick), Manger, West
14		-	(Tammy), West (Josh),
15		-	Wallace, Smith, Lawson,
16		-	Davis, Hardin, Kane, Ford,
17		-	and Luttrell of the House
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	28	+	ENGROSSED HOUSE
	29	+	BILL NO. 1955 By: McCall, O'Donnell, and
	30	+	Waldron of the House
18	31
19	32		and
20	33
21		-	Treat, Bullard, Jett,
22		-	Stephens, Bergstrom,
23		-	Rogers, Hamilton, Kirt, and
24		-	Woods of the Senate
	34	+	Bullard of the Senate
25	35
26	36
27	37
28	38		An Act relating to revenue and taxation; amending 68
29	39		O.S. 2021, Section 1352 , which relates to sales tax;
30	40		defining terms; providing for zero rate of state
31	41		sales tax on certain food items; providing for effect
32	42		of sales tax levies by political subd ivisions;
33	43		prohibiting certain modifications with respect to
34		-	levy of sales tax; and specifying duration of
35		-	prohibited action.
	44	+	levy of sales tax; specifying duration of prohibited
	45	+	action; providing an effective date; and declaring an
	46	+	emergency.
36	47
37	48
38	49
39		-
40		-	SUBJECT: Revenue and taxation
41		-
42	50		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
43		-
44	51		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1352, is
45	52		amended to read as follows:
46		-	ENR. H. B. NO. 1955 Page 2
47	53		Section 1352. Definitions.
48		-
49	54		As used in the Oklahoma Sales Tax Code:
50		-
51	55		1. "Alcoholic beverages" means beverages that are suitable for
52	56		human consumption and contain one -half of one percent (0.5%) or more
53	57		of alcohol by volume;
54		-
55	58		2. "Bundled transaction" means the retail sal e of two or more
56	59		products, except real property and services to real property, where
57	60		the products are otherwise distinct and identifiable, and th e
58	61		products are sold for one nonitemized price. A "bundled
59	62		transaction" does not include the sale of any produc ts in which the
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60	89		sales price varies, or is negotiable, based on the selection by the
61	90		purchaser of the products included in the transaction. As us ed in
62	91		this paragraph:
63		-
64	92		a. "distinct and identifiable products " does not include:
65		-
66	93		(1) packaging such as container s, boxes, sacks, bags,
67	94		and bottles, or other materials such as wrapping,
68	95		labels, tags, and instruction guides, that
69	96		accompany the retail sale of the products and are
70	97		incidental or immaterial to the retail sale
71	98		thereof, including but n ot limited to, grocery
72	99		sacks, shoeboxes, dry cleanin g garment bags and
73	100		express delivery envelopes and boxes,
74		-
75	101		(2) a product provided free of charge with the
76	102		required purchase of another product. A product
77	103		is provided free of charge if the sales price of
78	104		the product purchased do es not vary depending on
79	105		the inclusion of the product provided free of
80	106		charge, or
81		-
82	107		(3) items included in the definition of gross
83	108		receipts or sales price, pursuant to this
84	109		section,
85		-
86	110		b. "one nonitemized price " does not include a price tha t
87	111		is separately identi fied by product on binding sal es
88	112		or other supporting sales-related documentation made
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89	139		available to the customer in paper or electronic form
90		-	including, but not limited to, an invoice, bill of
91		-	sale, receipt, contract, service agreement, lease ~~ENR. H. B. NO. 1955 Page 3~~
	140	+	including, but not limited to an invoice, bill of
	141	+	sale, receipt, contract, service agreement, lease
92	142		agreement, periodic notice of rates and servic es, rate
93	143		card, or price list,
94		-
95	144		A transaction that otherwise meets the definition of a bundled
96	145		transaction shall not be considered a bundled transaction if it is:
97		-
98	146		(1) the retail sale of tangible personal pr operty and
99	147		a service where the tangible personal pro perty is
100	148		essential to the use of the service, and is
101	149		provided exclusively in connection with the
102	150		service, and the true object of the transaction
103	151		is the service,
104		-
105	152		(2) the retail sale of services where one s ervice is
106	153		provided that is essential to the use or r eceipt
107	154		of a second service and the first service is
108	155		provided exclusively in connection with the
109	156		second service and the true object of the
110	157		transaction is the second service,
111		-
112	158		(3) a transaction that includes taxable products and
113	159		nontaxable products and the pu rchase price or
114	160		sales price of the taxable products is de
115	161		minimis. For purposes of this subdivision, "de
116	162		minimis" means the seller's purchase price or
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117	189		sales price of taxable products is ten percent
118	190		(10%) or less of the total purchase price or
119	191		sales price of the bundled products. Sellers
120	192		shall use either the purchase price or the sales
121	193		price of the products to determi ne if the taxable
122	194		products are de minimis. Sellers may not use a
123	195		combination of the purc hase price and sales p rice
124	196		of the products to determ ine if the taxable
125	197		products are de minimis. Sellers shall use the
126	198		full term of a service contract to determine if
127	199		the taxable products are de minimis, or
128		-
129	200		(4) the retail sale of exempt tangible personal
130	201		property and taxable ta ngible personal property
131	202		where:
132		-
133	203		(a) the transaction includes food and food
134	204		ingredients, drugs, durable medical
135		-	equipment, mobility enhancing equi pment, ~~ENR. H. B. NO. 1955 Page 4~~
	205	+	equipment, mobility enhancing equi pment,
136	206		over-the-counter drugs, prosthetic devices
137	207		or medical supplies, and
138		-
139	208		(b) the seller's purchase price or s ales price
140	209		of the taxable tangible personal property is
141	210		fifty percent (50%) or less of the total
142	211		purchase price or sales price of the bundled
143	212		tangible personal property. Sellers may not
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144	239		use a combination of the purchase price and
145	240		sales price of the tangib le personal
146	241		property when making the fifty percent (50%)
147	242		determination for a transaction;
148		-
149	243		2. 3. "Business" means any activity engaged in or caused to be
150	244		engaged in by any person with the object of gain, benefit, or
151	245		advantage, either direct or indirect;
152		-
153	246		3. 4. "Candy" means a preparation of sugar, honey, or other
154	247		natural or artificial sweeteners in combination with chocolate,
155	248		fruits, nuts, or other ingredients or flavorings in the form of
156	249		bars, drops, or pieces. Candy shall not includ e any preparation
157	250		containing flour or requiring refrigeration;
158		-
159	251		5. "Commission" or "Tax Commission" means the Oklahoma Tax
160	252		Commission;
161		-
162	253		4. 6. "Computer" means an electronic device that ac cepts
163	254		information in digital or similar form and manipulate s it for a
164	255		result based on a sequence of instructions;
165		-
166	256		5. 7. "Computer software" means a set of coded instructions
167	257		designed to cause a "computer" or automatic data processing
168	258		equipment to perform a task;
169		-
170	259		6. 8. "Consumer" or "user" means a person to whom a taxa ble
171	260		sale of tangible personal property is made or to who m a taxable
172	261		service is furnished. "Consumer" or "user" includes all contractors
173	262		to whom a taxable sale of materials, supplies, equipme nt, or other
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174	289		tangible personal prop erty is made or to whom a taxa ble service is
175	290		furnished to be used or consumed in the p erformance of any contract;
176		-
177	291		7. 9. "Contractor" means any person who performs any
178	292		improvement upon real property and who, as a necessar y and
179		-	incidental part of performing su ch improvement, incorporates ~~ENR. H. B. NO. 1955 Page 5~~
	293	+	incidental part of performing su ch improvement, incorporates
180	294		tangible personal property belonging to or purchased b y the person
181	295		into the real property being improved;
182		-
183	296		8. 10. "Dietary supplements" means any product, other than
184	297		tobacco, intended to su pplement the diet that:
185		-
186	298		a. contains one or more of the following diet ary
187	299		ingredients:
188		-
189	300		(1) a vitamin,
190		-
191	301		(2) a mineral,
192		-
193	302		(3) an herb or other botanical,
194		-
195	303		(4) an amino acid,
196		-
197	304		(5) a dietary substance to supplement the diet by
198	305		increasing the total dietary intake, or
199		-
200	306		(6) a concentrate, metabolite, constituent, extract,
201	307		or combination of any ingredient described in
202	308		divisions (1) through (5) of this subparagraph,
203		-
204	309		b. is intended for ingestion in tablet, capsule, powder,
205	310		softgel, gelcap, or liquid form, or, if not intende d
206	311		for ingestion in such form, is not represented as
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207	338		conventional food and is not represented for use as a
208	339		sole item of a meal or of the diet, and
209		-
210	340		c. is required to be labeled as a dietary supplement,
211	341		identifiable by the label and as required pursuant to
212	342		Section 101.36 of Title 21 of the Code of Federal
213	343		Regulations;
214		-
215	344		11. "Drug" means a compound, substance o r preparation, and any
216	345		component of a compound, substance or preparation:
217		-
218	346		a. recognized in the official United States
219	347		Pharmacopoeia, official Homeopathic Pharmacopoeia of
220	348		the United States, or official National Formulary, a nd
221	349		supplement to any of them,
222		-
223	350		b. intended for use in the diagnosis, cure, mitigation,
224		-	treatment, or prevention of disease, or ENR. H. B. NO. 1955 Page 6
225		-
	351	+	treatment, or prevention of disease, or
226	352		c. intended to affect the structure or any function of
227	353		the body;
228		-
229	354		9. 12. "Electronic" means relating to technology having
230	355		electrical, digital, magnetic, wireless, opti cal, electromagnetic,
231	356		or similar capabilities;
232		-
233	357		10. 13. "Established place of business" means the location at
234	358		which any person regularly engages in, c onducts, or operates a
235	359		business in a continuou s manner for any length of time, that is open
236	360		to the public during the hours customary to such business, in which
237	361		a stock of merchandise for resale is maintained, and which is not
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238	388		exempted by law from attachmen t, execution, or other species of
239	389		forced sale barring any satisfactio n of any delinquent tax liability
240	390		accrued under the Oklahoma Sales Tax Code;
241		-
242	391		11. 14. "Fair authority" means:
243		-
244	392		a. any county, municipality, school district, public
245	393		trust or any other polit ical subdivision of this
246	394		state, or
247		-
248	395		b. any not-for-profit corporation acting pursuant to an
249	396		agency, operating or ma nagement agreement which has
250	397		been approved or authorized by the governing body of
251	398		any of the entities specified in subparagraph a of
252	399		this paragraph which conduct, operate or produce a
253	400		fair commonly understood to be a county, district or
254	401		state fair;
255		-
256	402		15. "Food and food ingredients" means substances, whether in
257	403		liquid, concentrated, solid, frozen, dried , or dehydrated form, that
258	404		are sold for ingestion or chewing by humans and are consumed for
259	405		their taste or nutriti onal value. Food and food ingredients shall
260	406		include bottled water, candy, and soft drinks. Food and food
261	407		ingredients shall not include:
262		-
263	408		a. alcoholic beverages,
264		-
265	409		b. dietary supplements,
266		-
267	410		c. marijuana, usable marijuana , or marijuana-infused
268	411		products,
269		-	ENR. H. B. NO. 1955 Page 7
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270	438		d. prepared food, or
271		-
272	439		e. tobacco;
273		-
274	440		12.
275		-
276	441		16. a. "Gross receipts", "gross proceeds" or "sales price"
277	442		means the total amount of consideration, including
278	443		cash, credit, property and services, for which
279	444		personal property or services are sold, le ased or
280	445		rented, valued in money, whether received in money or
281	446		otherwise, without any deduction for the following:
282		-
283	447		(1) the seller's cost of the property sold,
284		-
285	448		(2) the cost of materials used, labor or service
286	449		cost,
287		-
288	450		(3) interest, losses, all costs of transpor tation to
289	451		the seller, all taxes imposed on the seller, and
290	452		any other expense of the seller,
291		-
292	453		(4) charges by the seller for any services necessary
293	454		to complete the sale, other th an delivery and
294	455		installation charges,
295		-
296	456		(5) delivery charges and installation charg es, unless
297	457		separately stated on the invoice, billing or
298	458		similar document given to the purchaser, and
	459	+	(6) credit for any trade-in.
	460	+	b. Such term shall not include:
299	461
300		-	(6) credit for any trade-in.
301		-
302		-	b. Such term shall not include:
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303	486
304	487		(1) discounts, including cash, term, or coupons that
305	488		are not reimbursed by a third party that are
306	489		allowed by a seller and taken by a purchaser on a
307	490		sale,
308		-
309	491		(2) interest, financing, and carrying charges from
310	492		credit extended on the sale of personal property
311	493		or services, if the amount is separately stated
312	494		on the invoice, bill of sale or similar document
313	495		given to the purchaser, an d
314		-	ENR. H. B. NO. 1955 Page 8
315	496		(3) any taxes legally imposed direc tly on the
316	497		consumer that are separately stated on the
317	498		invoice, bill of sale or similar document given
318	499		to the purchaser.
319		-
320	500		c. Such term shall include con sideration received by the
321	501		seller from third parties if:
322		-
323	502		(1) the seller actually receives consideration fr om a
324	503		party other than the purchaser and the
325	504		consideration is directly related to a price
326	505		reduction or discount on the sale,
327		-
328	506		(2) the seller has an obli gation to pass the price
329	507		reduction or discount through to the purchas er,
330		-
331	508		(3) the amount of the considerati on attributable to
332	509		the sale is fixed and determinable by the seller
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333	536		at the time of the sale of the item to the
334	537		purchaser, and
335		-
336	538		(4) one of the following criteria is met:
337		-
338	539		(a) the purchaser presen ts a coupon, certificate
339	540		or other documentation to the seller to
340	541		claim a price reduction or discount where
341	542		the coupon, certificate or documentation is
342	543		authorized, distributed or granted by a
343	544		third party with the un derstanding that the
344	545		third party will reim burse any seller to
345	546		whom the coupon, certificate or
346	547		documentation is presented,
347		-
348	548		(b) the purchaser identifies himself or herself
349	549		to the seller as a member of a group or
350	550		organization entitled to a price reduction
351	551		or discount; provided, a "preferred
352	552		customer" card that is available to any
353	553		patron does not constitute member ship in
354	554		such a group, or
355		-
356	555		(c) the price reduction or discount is
357	556		identified as a third-party price reduction
358	557		or discount on the invoice received by the
359		-	purchaser or on a coupon, certificate or ENR. H. B. NO. 1955 Page 9
	558	+	purchaser or on a coupon, certificate or
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360	585		other documentation present ed by the
361	586		purchaser;
362		-
363	587		13.
364		-
365	588		17. a. "Maintaining a place of business in this state" means
366	589		and shall be presumed to include:
367		-
368	590		(1) (a) utilizing or maintainin g in this state,
369	591		directly or by subsidiary, an office,
370	592		distribution house, sales house, warehouse,
371	593		or other physical place of business, whether
372	594		owned or operated by the vendor or any other
373	595		person, other than a common carrier acting
374	596		in its capacity as such, or
375		-
376	597		(b) having agents operating in this state,
377	598		whether the place of business or a gent
378	599		is within this state temporarily or
379	600		permanently or whether the person or
380	601		agent is authorized to do business
381	602		within this state, and
382		-
383	603		(2) the presence of any person, other t han a common
384	604		carrier acting in its capacity as such, that has
385	605		substantial nexus in this state and that:
386		-
387	606		(a) sells a similar line of products as t he
388	607		vendor and does so under the same or a
389	608		similar business name,
	609	+
	610	+	ENGR. H. B. NO. 1955 Page 13 1
	611	+	2
	612	+	3
	613	+	4
	614	+	5
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	616	+	7
	617	+	8
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	621	+	12
	622	+	13
	623	+	14
	624	+	15
	625	+	16
	626	+	17
	627	+	18
	628	+	19
	629	+	20
	630	+	21
	631	+	22
	632	+	23
	633	+	24
390	634
391	635		(b) uses trademarks, service marks or trade
392	636		names in this state that are the same
393	637		or substantially similar to those used
394	638		by the vendor,
395		-
396	639		(c) delivers, installs, assembles or
397	640		performs maintenance services for the
398	641		vendor,
399		-
400	642		(d) facilitates the vendor's delivery of
401	643		property to customers in the state by
402	644		allowing the vendor's customers to pick
403	645		up property sold by the vendor at an
404		-	office, distribution facility, ~~ENR. H. B. NO. 1955 Page 10~~
	646	+	office, distribution facility,
405	647		warehouse, storage place or similar
406	648		place of business maintained by the
407	649		person in this state, or
408		-
409	650		(e) conducts any other activities in this state
410	651		that are significantly associated with the
411	652		vendor's ability to establish and maintain a
412	653		market in this state fo r the vendor's sale.
413		-
414	654		b. The presumptions in divisions (1) and (2) of
415	655		subparagraph a of this paragraph may be rebutted by
416	656		demonstrating that the person 's activities in this
417	657		state are not significantly associated with the
	658	+
	659	+	ENGR. H. B. NO. 1955 Page 14 1
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	661	+	3
	662	+	4
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	671	+	13
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	673	+	15
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	677	+	19
	678	+	20
	679	+	21
	680	+	22
	681	+	23
	682	+	24
	683	+
418	684		vendor's ability to establish and ma intain a market in
419	685		this state for the ven dor's sales.
420		-
421	686		c. Any ruling, agreement or contract, whether written or
422	687		oral, express or implied, between a perso n and
423	688		executive branch of this stat e, or any other state
424	689		agency or department, st ating, agreeing or ruli ng that
425	690		the person is not "maintaining a place of business in
426	691		this state" or is not required to collect sales and
427	692		use tax in this state despite the pres ence of a
428	693		warehouse, distribution c enter or fulfillment center
429	694		in this state that is owned or operated b y the vendor
430	695		or an affiliated person of t he vendor shall be null
431	696		and void unless it is specifically approved by a
432	697		majority vote of each house of the Okl ahoma
433	698		Legislature;
434		-
435	699		14. 18. "Manufacturing" means and includes the activity of
436	700		converting or conditioning tangible personal property by changing
437	701		the form, composition, or quality of character of some existing
438	702		material or materials , including natural resources, by procedures
439	703		commonly regarded by the average person as manufacturing,
440	704		compounding, processing or assembling, into a material or materials
441	705		with a different form or use. "Manufacturing" does not include
442	706		extractive industrial activities such as mining, qu arrying, logging,
443	707		and drilling for oil, gas and water, nor oil and gas field
	708	+
	709	+	ENGR. H. B. NO. 1955 Page 15 1
	710	+	2
	711	+	3
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	727	+	19
	728	+	20
	729	+	21
	730	+	22
	731	+	23
	732	+	24
	733	+
444	734		processes, such as natural pressure reduction, mechanical
445	735		separation, heating, cooling, dehydration and compression;
446		-
447	736		15. 19. "Manufacturing operation " means the designing,
448	737		manufacturing, compounding, processin g, assembling, warehousing, or
449		-	preparing of articles f or sale as tangible personal property. A ~~ENR. H. B. NO. 1955 Page 11~~
	738	+	preparing of articles f or sale as tangible personal property. A
450	739		manufacturing operatio n begins at the point where the materials
451	740		enter the manufacturing site and ends a t the point where a finished
452	741		product leaves the manufactu ring site. "Manufacturing operation "
453	742		does not include administration, sales, distribution,
454	743		transportation, site const ruction, or site maintenance. Extractive
455	744		activities and field processes shall no t be deemed to be a part of a
456	745		manufacturing operation eve n when performed by a person otherwise
457	746		engaged in manufacturing;
458		-
459	747		16. 20. "Manufacturing site" means a location where a
460	748		manufacturing operation is conducted, including a location
461	749		consisting of one or mor e buildings or structures in a n area owned,
462	750		leased, or controlled by a manufacturer;
463		-
464	751		17. 21. "Over-the-counter drug" means a drug that contains a
465	752		label that identifies the p roduct as a drug as required by 21
466	753		C.F.R., Section 201.66. The over-the-counter-drug label includes:
467		-
468	754		a. a "Drug Facts" panel, or
469		-
470	755		b. a statement of the "active ingredient(s) " with a list
471	756		of those ingredients contained in the compound,
472	757		substance or preparat ion;
	758	+
	759	+	ENGR. H. B. NO. 1955 Page 16 1
	760	+	2
	761	+	3
	762	+	4
	763	+	5
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	766	+	8
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	773	+	15
	774	+	16
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	776	+	18
	777	+	19
	778	+	20
	779	+	21
	780	+	22
	781	+	23
	782	+	24
473	783
474	784		18. 22. "Person" means any individual, company, partnership,
475	785		joint venture, joint ag reement, association, mutual o r otherwise,
476	786		limited liability company, corporation, estate, trust, business
477	787		trust, receiver or trustee appointed by any state or federa l court
478	788		or otherwise, syndicate, this state, any county, city, municipality,
479	789		school district, any other political subdiv ision of the state, or
480	790		any group or combination acting as a unit, in the plural o r singular
481	791		number;
482		-
483	792		23. "Prepared food" means:
484		-
485	793		a. food sold in a heated state or that is heated by the
486	794		seller,
487		-
488	795		b. two or more food ingredients mixed or com bined by the
489	796		seller for sale as a single item, or
490		-
491	797		c. food sold with eating utensils provided by the sell er,
492	798		including plates, knives, forks, spoons, glasses,
493	799		cups, napkins, or straws;
494		-	ENR. H. B. NO. 1955 Page 12
495	800		19. 24. "Prescription" means an order, formula o r recipe issued
496	801		in any form of oral, written, electronic, or other means of
497	802		transmission by a duly licensed "practitioner" as defined in Section
498	803		1357.6 of this title;
499		-
500	804		20. 25. "Prewritten computer software" means "computer
501	805		software", including prewritten upgra des, which is not designed and
502	806		developed by the author or other creator to the sp ecifications of a
503	807		specific purchaser. The combining of two or more prewritten
	808	+
	809	+	ENGR. H. B. NO. 1955 Page 17 1
	810	+	2
	811	+	3
	812	+	4
	813	+	5
	814	+	6
	815	+	7
	816	+	8
	817	+	9
	818	+	10
	819	+	11
	820	+	12
	821	+	13
	822	+	14
	823	+	15
	824	+	16
	825	+	17
	826	+	18
	827	+	19
	828	+	20
	829	+	21
	830	+	22
	831	+	23
	832	+	24
	833	+
504	834		computer software programs or prewritten portions thereof does not
505	835		cause the combination to be o ther than prewritten computer software.
506	836		Prewritten software includes software de signed and developed by the
507	837		author or other creator to the specifications of a specific
508	838		purchaser when it is sold to a person other than the purchaser.
509	839		Where a person modifie s or enhances computer software of which the
510	840		person is not the author or creator, the person shall be deemed to
511	841		be the author or creator only of such person 's modifications or
512	842		enhancements. Prewritten software or a prewritten portion thereof
513	843		that is modified or enhanced to any degree, where such modification
514	844		or enhancement is designed and developed to the specific ations of a
515	845		specific purchaser, remains prewritten software; pro vided, however,
516	846		that where there is a reasonable, separately stated charge or an
517	847		invoice or other statement of the price given to the p urchaser for
518	848		such modification or enhancement, such modif ication or enhancement
519	849		shall not constitute prewritten computer software;
520		-
521	850		21. 26. "Repairman" means any person who performs any repair
522	851		service upon tangible personal property of the consumer, whethe r or
523	852		not the repairman, as a ne cessary and incidental part of performing
524	853		the service, incorporates tangible personal prop erty belonging to or
525	854		purchased by the repairman into the tangible personal property b eing
526	855		repaired;
527		-
528	856		22. 27. "Sale" means the transfer of either title or possession
529	857		of tangible personal property for a valuable consideration
	858	+
	859	+	ENGR. H. B. NO. 1955 Page 18 1
	860	+	2
	861	+	3
	862	+	4
	863	+	5
	864	+	6
	865	+	7
	866	+	8
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	868	+	10
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	871	+	13
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	875	+	17
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	877	+	19
	878	+	20
	879	+	21
	880	+	22
	881	+	23
	882	+	24
	883	+
530	884		regardless of the manner, method , instrumentality, or device by
531	885		which the transfer is accomplished in this state, or othe r
532	886		transactions as provided by this paragraph, including but not
533	887		limited to:
534		-
535	888		a. the exchange, barter, lease, or rental of tangible
536	889		personal property resulting in the tr ansfer of the
537	890		title to or possession of the property,
538		-	ENR. H. B. NO. 1955 Page 13
539	891		b. the disposition for consumption or use in any business
540	892		or by any person of all goods, wares, merchandise, or
541	893		property which has been purchased for resale,
542	894		manufacturing, or further processing,
543		-
544	895		c. the sale, gift, exchange, or other disposition of
545	896		admission, dues, or fees to clubs, places of
546	897		amusement, or recreational or athletic even ts or for
547	898		the privilege of having a ccess to or the use of
548	899		amusement, recreational, athletic or entertainment
549	900		facilities,
550		-
551	901		d. the furnishing or rendering of services taxable under
552	902		the Oklahoma Sales Tax Code, and
553		-
554	903		e. any use of motor fuel or diesel fuel by a supplier, as
555	904		defined in Section 500 .3 of this title, upon which
556	905		sales tax has not previously been paid, for purposes
557	906		other than to propel motor vehicles over the public
558	907		highways of this state. Motor fuel or di esel fuel
	908	+
	909	+	ENGR. H. B. NO. 1955 Page 19 1
	910	+	2
	911	+	3
	912	+	4
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	932	+	24
	933	+
559	934		purchased outside the state and used for purposes
560	935		other than to propel motor vehicles over the public
561	936		highways of this state shall not constitute a sale
562	937		within the meaning of this paragraph;
563		-
564	938		23. 28. "Sale for resale" means:
565		-
566	939		a. a sale of tangible per sonal property to any purchaser
567	940		who is purchasing tangible personal property for the
568	941		purpose of reselling it wi thin the geographical limits
569	942		of the United States of America or its territories or
570	943		possessions, in the normal course of business either
571	944		in the form or condition in which it is purchased o r
572	945		as an attachment to or integral part of other tangible
573	946		personal property,
574		-
575	947		b. a sale of tangible personal property to a purchaser
576	948		for the sole purpose of the renting or leasing, within
577	949		the geographical limits of t he United States of
578	950		America or its territo ries or possessions, of the
579	951		tangible personal property to another per son by the
580	952		purchaser, but not if incidental to the r enting or
581	953		leasing of real estate,
582		-	ENR. H. B. NO. 1955 Page 14
583	954		c. a sale of tangible goods and products within this
584	955		state if, simultaneously with the sale, the vend or
585	956		issues an export bill of lading, or other
586	957		documentation that the p oint of delivery of such goods
	958	+
	959	+	ENGR. H. B. NO. 1955 Page 20 1
	960	+	2
	961	+	3
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	963	+	5
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	983	+
587	984		for use and consumpti on is in a foreign country and
588	985		not within the territorial confines of the United
589	986		States. If the vendor is not in the business of
590	987		shipping the tangible goods and products tha t are
591	988		purchased from the vendo r, the buyer or purchaser of
592	989		the tangible goods and products is responsible for
593	990		providing an export bill of lading or other
594	991		documentation to the vendor from whom the tangible
595	992		goods and products were purchased showing that the
596	993		point of delivery of such good s for use and
597	994		consumption is a foreign country and n ot within the
598	995		territorial confines of the United States, or
599		-
600	996		d. a sales of any carrier access services, right of
601	997		access services, teleco mmunications services to be
602	998		resold, or telecommunications used in the subsequent
603	999		provision of, use as a component part of , or
604	1000		integrated into, end-to-end telecommunications
605	1001		service;
606		-
607	1002		29. "Soft drinks" means any nonalcoholic beverages that co ntain
608	1003		natural or artificial sweeteners. Soft drinks shall not include
609	1004		beverages that contain:
	1005	+	a. milk or milk products,
	1006	+	b. soy, rice, oat, or similar milk substitutes, or
610	1007
611		-	a. milk or milk products,
612		-
613		-	b. soy, rice, oat, or similar milk substitutes, or
	1008	+	ENGR. H. B. NO. 1955 Page 21 1
	1009	+	2
	1010	+	3
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	1031	+	24
614	1032
615	1033		c. greater than fifty percent (50%) of vegetable or fruit
616	1034		juice by volume;
617		-
618	1035		24. 30. "Tangible personal property" means personal property
619	1036		that can be seen, weighed, meas ured, felt, or touched o r that is in
620	1037		any other manner perceptible to the senses. "Tangible personal
621	1038		property" includes electricity, wa ter, gas, steam and prewritten
622	1039		computer software. T his definition shall be applicable only for
623	1040		purposes of the Oklahoma Sales Tax Code;
624		-
625	1041		25. 31. "Taxpayer" means any person liable to pay a tax imposed
626	1042		by the Oklahoma Sales Tax Code;
627		-	ENR. H. B. NO. 1955 Page 15
628	1043		26. 32. "Tax period" or "taxable period" means the calendar
629	1044		period or the taxpayer's fiscal period for which a taxpayer has
630	1045		obtained a permit from the Tax Commission to use a fiscal period in
631	1046		lieu of a calendar period;
632		-
633	1047		27. 33. "Tax remitter" means any person required to collect,
634	1048		report, or remit the tax imposed by the Oklahoma Sales Tax Code. A
635	1049		tax remitter who fails, for any reason, to collec t, report, or remit
636	1050		the tax shall be considered a taxpayer for purposes of assessment,
637	1051		collection, and enforcement of the tax imposed by the Oklaho ma Sales
638	1052		Tax Code; and
639		-
640	1053		28. 34. "Vendor" means:
641		-
642	1054		a. any person making sales of tangible personal property
643	1055		or services in this state, the gross receipt s or gross
	1056	+
	1057	+	ENGR. H. B. NO. 1955 Page 22 1
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	1078	+	22
	1079	+	23
	1080	+	24
	1081	+
644	1082		proceeds from which are taxed by the Oklahoma Sales
645	1083		Tax Code,
646		-
647	1084		b. any person maintaining a place of b usiness in this
648	1085		state and making sal es of tangible personal prop erty
649	1086		or services, whether at the place of business or
650	1087		elsewhere, to persons withi n this state, the gross
651	1088		receipts or gross proceeds from which are taxed by the
652	1089		Oklahoma Sales Tax Code,
653		-
654	1090		c. any person who solicits business by empl oyees,
655	1091		independent contracto rs, agents, or other
656	1092		representatives in t his state, and thereby makes sales
657	1093		to persons within this state of tangible personal
658	1094		property or services, the gross receipts or gross
659	1095		proceeds from which are taxed by the Oklahoma Sales
660	1096		Tax Code, or
661		-
662	1097		d. any person, pursuant to an agreement with the person
663	1098		with an ownership interest in or title t o tangible
664	1099		personal property, who has been entrusted with the
665	1100		possession of any such property and has the power to
666	1101		designate who is to obtain title , to physically
667	1102		transfer possession of, or otherwise make sales of th e
668	1103		property.
669	1104
	1105	+	ENGR. H. B. NO. 1955 Page 23 1
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	1128	+	24
	1129	+
670	1130		SECTION 2. NEW LAW A new section of law to be codified
671	1131		in the Oklahoma Statutes as Section 1357.11 of Title 68, unless
672		-	there is created a dupli cation in numbering, reads as follow s: ENR. H. B. NO. 1955 Page 16
673		-
	1132	+	there is created a dupli cation in numbering, reads as follow s:
674	1133		A. 1. On or after the effective date of this act, an excise
675	1134		tax of zero percent (0%) is hereby imposed upon all retail sales of
676	1135		food and food ingredients sold for human consumption off the
677	1136		premises where sold.
678		-
679	1137		2. Any sales tax or excise tax levied by a city, town, county,
680	1138		or any other jurisdiction in this state upon sales of food and food
681	1139		ingredients shall be in effect regardless of ordinance or
682	1140		contractual provisions referring to previously imposed state sales
683	1141		tax on the items.
684		-
685	1142		3. On or after the effective date of this act, until June 30,
686	1143		2025, a county or a municipality that submits the question of a
687	1144		sales tax or excise tax to its voters shall provide that the
688	1145		increased rate does not apply to "food and food ingredients" as that
689	1146		term is defined in Section 1352 of Title 68 of the Oklahoma
690	1147		Statutes.
691		-
692	1148		B. The Oklahoma Tax Commission shall promulgate any necessary
693	1149		rules to implement the provisions of this section in accordance with
694	1150		the Streamlined Sales and Use Tax Agreement.
695		-	ENR. H. B. NO. 1955 Page 17
	1151	+	SECTION 3. This act shall become effective July 1, 2023.
	1152	+	SECTION 4. It being immediately necessary for the preservation
	1153	+	of the public peace, health or safety, an emergency is hereby
696	1154
	1155	+	ENGR. H. B. NO. 1955 Page 24 1
	1156	+	2
	1157	+	3
	1158	+	4
	1159	+	5
	1160	+	6
	1161	+	7
	1162	+	8
	1163	+	9
	1164	+	10
	1165	+	11
	1166	+	12
	1167	+	13
	1168	+	14
	1169	+	15
	1170	+	16
	1171	+	17
	1172	+	18
	1173	+	19
	1174	+	20
	1175	+	21
	1176	+	22
	1177	+	23
	1178	+	24
	1179	+
	1180	+	declared to exist, by reason whereof thi s act shall take effect and
	1181	+	be in full force from and after its passage and approval.
697	1182		Passed the House of Representatives the 21st day of March, 2023.
698	1183
699	1184
700	1185
701	1186
702	1187		Presiding Officer of the House
703	1188		of Representatives
704	1189
705	1190
706		-	Passed the Senate the ~~22nd~~ day of ~~February~~, ~~2024~~.
	1191	+	Passed the Senate the ___ day of __________, 2023.
707	1192
708	1193
709	1194
710	1195
711	1196		Presiding Officer of the Senate
712	1197
713	1198
714		-	OFFICE OF THE GOVERNOR
715		-	Received by the Office of the Gove rnor this ____________________
716		-	day of ___________________, 20_______, at _______ o'clock _______ M.
717		-	By: _________________________________
718		-	Approved by the Governor of the State of Oklahoma this _____ ____
719		-	day of ___________________, 20_______, at _______ o'c lock _______ M.
720		-
721		-
722		-	_________________________________
723		-	Governor of the State of Oklahoma
724		-
725		-	OFFICE OF THE SECRETARY OF STATE
726		-	Received by the Office of the Secretary of State this __________
727		-	day of ___________________, 20_______, at _______ o'clock _______ M.
728		-	By: _________________________________