Oklahoma 2024 Regular Session

Oklahoma House Bill HB2317 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 2317 Page 1 1
	3	+	HB2317 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2317 By: Hilbert of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	HOUSE BILL 2317 By: Hilbert of the House
30	36
31	37		and
32	38
33	39		Thompson (Roger) of the
34	40		Senate
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	45	+	AS INTRODUCED
39	46
40		-	[ revenue and taxation - sales tax exemptions -
41		-	rolling stock - effective date ]
	47	+	An Act relating to revenue and taxation; amending 68
	48	+	O.S. 2021, Section 1357, as amended by Section 1,
	49	+	Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022, Section
	50	+	1357), which relates to sales tax exemptions;
	51	+	modifying date related to sales or lease of certain
	52	+	rolling stock; and providing an effec tive date.
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46	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
47	58		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
48	59		amended by Section 1, Chapter 206, O.S .L. 2022 (68 O.S. Supp. 2022,
49	60		Section 1357), is amended to read as follows:
50	61		Section 1357. Exemptions – General.
51	62		There are hereby specifically exempted fr om the tax levied by
52	63		the Oklahoma Sales Tax Code:
53	64		1. Transportation of school pupils to and from elementary
54	65		schools or high schools in motor or other vehicles;
55		-	2. Transportation of persons where the fare of each person does
56		-	not exceed One Dollar ($1.00) , or local transportation of persons
57		-	within the corporate limits of a municipality except by taxicabs;
58		-	3. Sales for resale to persons engaged in the bu siness of
59		-	reselling the articles purchased, whether within or without the
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61		-	ENGR. H. B. NO. 2317 Page 2 1
	67	+	HB2317 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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	93	+	2. Transportation of persons where the fare of each person does
	94	+	not exceed One Dollar ($1.00), or local transportation of persons
	95	+	within the corporate limits of a municipality except by taxicabs;
	96	+	3. Sales for resale to persons engaged in the bu siness of
	97	+	reselling the articles purchased, whether within or without the
86	98		state, provided that such sales to residents of this state are made
87	99		to persons to whom sales tax permits have been issued as provided in
88	100		the Oklahoma Sales Tax Code. This exemption shall not apply to the
89	101		sales of articles made to persons holding permits when such persons
90	102		purchase items for their use and which they are not regularly
91	103		engaged in the business of reselling; neither shall this exemption
92	104		apply to sales of tangible personal property to peddlers, solicitors
93	105		and other salespersons who do not have an established place of
94	106		business and a sales tax permit. The exemption provided by this
95	107		paragraph shall apply to sales of motor fuel or diesel fuel to a
96	108		Group Five vendor, but the use of such motor fuel or diesel fuel by
97	109		the Group Five vendor shall not be exempt from the tax levied by th e
98	110		Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
99	111		is exempt from sales tax when the motor fuel is for shipment outside
100	112		this state and consumed by a common carrier by rail in the conduct
101	113		of its business. The sales tax shall apply to the purchase of motor
102	114		fuel or diesel fuel in Oklahoma by a common carrier by rail when
103	115		such motor fuel is purchased for fueling, within this state, of any
104	116		locomotive or other motorized flanged wheel equipment;
105		-	4. Sales of advertising space in newspapers and periodicals;
106		-	5. Sales of programs relating to s porting and entertainment
107		-	events, and sales of advertising on billboards (including signage,
108		-	posters, panels, marquees or on other similar surfaces, whether
109		-	indoors or outdoors) or in programs relating to sp orting and
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111		-	ENGR. H. B. NO. 2317 Page 3 1
	118	+	HB2317 HFLR Page 3
	119	+	BOLD FACE denotes Committee Amendments. 1
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	144	+	4. Sales of advertising space in newspapers and periodicals;
	145	+	5. Sales of programs relating to s porting and entertainment
	146	+	events, and sales of advertising on billboards (including signage,
	147	+	posters, panels, marquees or on other similar surfaces, whether
	148	+	indoors or outdoors) or in programs relating to spo rting and
136	149		entertainment events, and sales of any advertising, to be displayed
137	150		at or in connection with a sporting event, via the Internet,
138	151		electronic display devices or through public address or broadcast
139	152		systems. The exemption authorized by this paragrap h shall be
140	153		effective for all sales made on or af ter January 1, 2001;
141	154		6. Sales of any advertising, other than the advertising
142	155		described by paragraph 5 of this section, via the Internet,
143	156		electronic display devices or through the electronic media including
144	157		radio, public address or broadcast systems, tel evision (whether
145	158		through closed circuit broadcasting systems or otherwise), and cable
146	159		and satellite television, and the servicing of any advertising
147	160		devices;
148	161		7. Eggs, feed, supplies, machinery , and equipment purchased by
149	162		persons regularly engaged in the business of raising worms, fish,
150	163		any insect, or any other form of terrestrial or aquatic animal life
151	164		and used for the purpose of raising same for marketing. This
152	165		exemption shall only be granted and extended to the purchaser when
153	166		the items are to be used a nd in fact are used in the raising of
154	167		animal life as set out above. Each purchaser shall certify, in
155		-	writing, on the invoice or sales ticket retained by the vendor that
156		-	the purchaser is regularly engaged in th e business of raising such
157		-	animal life and that the items purchased will be used only in such
158		-	business. The vendor shall certify to the Oklahoma Tax Co mmission
159		-	that the price of the items has been reduced to grant the full
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161		-	ENGR. H. B. NO. 2317 Page 4 1
	169	+	HB2317 HFLR Page 4
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	195	+	writing, on the invoice or sales ticket retained by the vendor that
	196	+	the purchaser is regularly engaged in th e business of raising such
	197	+	animal life and that the items purchased will be used only in such
	198	+	business. The vendor shall certify to the Oklahoma Tax Co mmission
	199	+	that the price of the items has been reduced to grant the full
186	200		benefit of the exemption. Viola tion hereof by the purchaser or
187	201		vendor shall be a misdemeanor;
188	202		8. Sale of natural or artificial gas and electricity, and
189	203		associated delivery or transmi ssion services, when sold exclusively
190	204		for residential use. Provided, this exemption shall not apply to
191	205		any sales tax levied by a city or town, or a county or any other
192	206		jurisdiction in this state;
193	207		9. In addition to the exemptions authorized by Section 135 7.6
194	208		of this title, sales of drugs sold pursuant to a prescription
195	209		written for the treatment of human bei ngs by a person licensed to
196	210		prescribe the drugs, and sales of insulin and medical oxygen.
197	211		Provided, this exemption shall not apply to over-the-counter drugs;
198	212		10. Transfers of title or possession of empty, partially
199	213		filled, or filled returnable oil and ch emical drums to any person
200	214		who is not regularly engaged in the business of selling, reselling
201	215		or otherwise transferring empty, partially filled or filled
202	216		returnable oil drums;
203		-	11. Sales of one-way utensils, paper napkins, paper cups,
204		-	disposable hot contai ners, and other one-way carry out materials to
205		-	a vendor of meals or beverages;
206		-	12. Sales of food or food products for home consumption which
207		-	are purchased in whole or in part with coupons issued pursuant to
208		-	the federal food stamp program as authorized by Sections 2011
209		-	through 2029 of Title 7 of the United States Code, as to that
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211		-	ENGR. H. B. NO. 2317 Page 5 1
	218	+	HB2317 HFLR Page 5
	219	+	BOLD FACE denotes Committee Amendments. 1
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	244	+	11. Sales of one-way utensils, paper napkins, paper cups,
	245	+	disposable hot contai ners, and other one-way carry out materials to
	246	+	a vendor of meals or beverages;
	247	+	12. Sales of food or food products for home consumption which
	248	+	are purchased in whole or in part with coupons issued pursuant to
	249	+	the federal food stamp program as authorized by Sections 2011
	250	+	through 2029 of Title 7 of the United States Code, as to that
236	251		portion purchased with such coupons. The exemption provided for
237	252		such sales shall be inapplicable to such sales upon the effective
238	253		date of any federal law that removes the requirem ent of the
239	254		exemption as a condition for participation by the state in the
240	255		federal food stamp program;
241	256		13. Sales of food or food products, or any equ ipment or
242	257		supplies used in the preparation of the food or food products to or
243	258		by an organization which:
244	259		a. is exempt from taxation pursuant to the provisions of
245	260		Section 501(c)(3) of the Internal Revenue Code, 26
246	261		U.S.C., Section 501(c)(3), and which provid es and
247	262		delivers prepared meals for home consumption to
248	263		elderly or homebound persons as part of a program
249	264		commonly known as "Meals on Wheels" or "Mobile Meals",
250	265		or
251	266		b. is exempt from taxation pursuant to the provisions of
252	267		Section 501(c)(3) of the Internal R evenue Code, 26
253		-	U.S.C., Section 501(c)(3), and which receives federal
254		-	funding pursuant to the Older Americans Act of 1965,
255		-	as amended, for the purpose of providing nutrition
256		-	programs for the care and benefit of elderly persons;
257		-	14. a. Sales of tangible pe rsonal property or services to or
258		-	by organizations which are exempt from taxation
259		-	pursuant to the provisions o f Section 501(c)(3) of the
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	269	+	HB2317 HFLR Page 6
	270	+	BOLD FACE denotes Committee Amendments. 1
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	295	+	U.S.C., Section 501(c)(3), and which receives federal
	296	+	funding pursuant to the Older Americans Act of 1965,
	297	+	as amended, for the purpose of providing nutrition
	298	+	programs for the care and benefit of elderly persons;
	299	+	14. a. Sales of tangible pe rsonal property or services to or
	300	+	by organizations which are exempt from taxation
	301	+	pursuant to the provisions o f Section 501(c)(3) of the
286	302		Internal Revenue Code, 26 U.S.C ., Section 501(c)(3),
287	303		and:
288	304		(1) are primarily involved in the collection and
289	305		distribution of food and other household products
290	306		to other organizations that facilitate the
291	307		distribution of such products to the needy and
292	308		such distributee organizations are exemp t from
293	309		taxation pursuant to the provisions of Section
294	310		501(c)(3) of the Internal Revenue Code, 26
295	311		U.S.C., Section 501(c)(3), or
296	312		(2) facilitate the distribution of such products to
297	313		the needy.
298	314		b. Sales made in the course of business for profit or
299	315		savings, competing with other persons engaged in the
300	316		same or similar business shall not be exempt under
301	317		this paragraph;
302		-	15. Sales of tangible personal property or services to
303		-	children's homes which are located on church-owned property and are
304		-	operated by organization s exempt from taxation pursuant to the
305		-	provisions of the Internal Revenue Code, 26 U.S.C., Section
306		-	501(c)(3);
307		-	16. Sales of computers, data processing equipment, related
308		-	peripherals, and telephone, telegraph or telecommunications service
309		-	and equipment for use in a qualified aircraft maintenance or
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	320	+	BOLD FACE denotes Committee Amendments. 1
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	345	+	15. Sales of tangible personal property or services to
	346	+	children's homes which are located on church-owned property and are
	347	+	operated by organization s exempt from taxation pursuant to the
	348	+	provisions of the Internal Revenue Code, 26 U.S.C., Section
	349	+	501(c)(3);
	350	+	16. Sales of computers, data processing equipment, related
	351	+	peripherals, and telephone, telegraph or telecommunications service
	352	+	and equipment for use in a qualified aircraft maintenance or
336	353		manufacturing facility. For purposes of this paragraph, "qualified
337	354		aircraft maintenance or manufacturing facility" means a new or
338	355		expanding facility prima rily engaged in aircraft repair, building or
339	356		rebuilding whether or not on a factory basis, whose total cost of
340	357		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
341	358		and which employs at least two hundred fifty (250) new full -time-
342	359		equivalent employees, as certified by the Oklahoma Employment
343	360		Security Commission, upon completion of the facility. In order to
344	361		qualify for the exemption provided for by this paragraph, the cost
345	362		of the items purchased by the qualified aircraft maintenance or
346	363		manufacturing facility shall equal or exceed the sum of Two Millio n
347	364		Dollars ($2,000,000.00);
348	365		17. Sales of tangible personal property consumed or
349	366		incorporated in the construction or expansion of a qualified
350	367		aircraft maintenance or manufacturing facility as define d in
351	368		paragraph 16 of this section. For purposes of this pa ragraph, sales
352		-	made to a contractor or subcontractor that has previously entered
353		-	into a contractual relationship with a qualified aircraft
354		-	maintenance or manufacturing facility for construction or expansion
355		-	of such a facility shall be considered sales made to a qualified
356		-	aircraft maintenance or manufacturing facility;
357		-	18. Sales of the following telecommunications services:
358		-	a. Interstate and International "800 service". "800
359		-	service" means a "telecommunications service" that
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361		-	ENGR. H. B. NO. 2317 Page 8 1
	370	+	HB2317 HFLR Page 8
	371	+	BOLD FACE denotes Committee Amendments. 1
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	396	+	made to a contractor or subcontractor that has previously entered
	397	+	into a contractual relationship with a qualified aircraft
	398	+	maintenance or manufacturing facility for construction or expansion
	399	+	of such a facility shall be considered sales made to a qualified
	400	+	aircraft maintenance or manufacturing facility;
	401	+	18. Sales of the following telecommunications services:
	402	+	a. Interstate and International "800 service". "800
	403	+	service" means a "telecommunications service" that
386	404		allows a caller to dial a toll-free number without
387	405		incurring a charge for the call. The service is
388	406		typically marketed under the name "800", "855", "866",
389	407		"877" and "888" toll-free calling, and any subsequent
390	408		numbers designated by the Federal Communications
391	409		Commission,
392	410		b. Interstate and International "900 service". "900
393	411		service" means an inbound toll "telecommunications
394	412		service" purchased by a subscriber that allows the
395	413		subscriber's customers to call in to the subscriber 's
396	414		prerecorded announcement or live service. "900
397	415		service" does not include the charge for: collection
398	416		services provided by the seller of the
399	417		"telecommunications services" to the subscriber, or
400	418		service or product sold by the subscriber to the
401	419		subscriber's customer. The service is typically
402		-	marketed under the na me "900" service, and any
403		-	subsequent numbers designated by the Federal
404		-	Communications Commission,
405		-	c. Interstate and International "private communications
406		-	service". "Private communications service " means a
407		-	"telecommunications service" that entitles the
408		-	customer to exclusive or priority use of a
409		-	communications channel or group of channels between or
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	421	+	HB2317 HFLR Page 9
	422	+	BOLD FACE denotes Committee Amendments. 1
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	447	+	marketed under the na me "900" service, and any
	448	+	subsequent numbers designated by the Federal
	449	+	Communications Commission,
	450	+	c. Interstate and International "private communications
	451	+	service". "Private communications service " means a
	452	+	"telecommunications service" that entitles the
	453	+	customer to exclusive or priority use of a
	454	+	communications channel or group of channels between or
436	455		among termination points, regardless of the manner in
437	456		which such channel or channels are connected, and
438	457		includes switching capacity, extension lines, stations
439	458		and any other associated services that are provided in
440	459		connection with the use of such channel or channels,
441	460		d. "Value-added nonvoice data service". "Value-added
442	461		nonvoice data service " means a service that otherwise
443	462		meets the definition of "telecommunications services"
444	463		in which computer processing applications are used to
445	464		act on the form, content, code or protocol of the
446	465		information or data primarily for a purpose other than
447	466		transmission, conveyance , or routing,
448	467		e. Interstate and International telecommunications
449	468		service which is:
450	469		(1) rendered by a company for private use within its
451	470		organization, or
452		-	(2) used, allocated or distributed by a company to
453		-	its affiliated group,
454		-	f. Regulatory assessments and charges including charges
455		-	to fund the Oklahoma Universal Service Fund, the
456		-	Oklahoma Lifeline Fund and the Oklahoma High Cost
457		-	Fund, and
458		-	g. Telecommunications nonre curring charges including but
459		-	not limited to the installation, connection, change ,
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	472	+	HB2317 HFLR Page 10
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	498	+	(2) used, allocated or distributed by a company to
	499	+	its affiliated group,
	500	+	f. Regulatory assessments and charges including charges
	501	+	to fund the Oklahoma Universal Service Fund, the
	502	+	Oklahoma Lifeline Fund and the Oklahoma High Cost
	503	+	Fund, and
	504	+	g. Telecommunications nonre curring charges including but
	505	+	not limited to the installation, connection, change ,
486	506		or initiation of telecommunications services which are
487	507		not associated with a retail consumer sale;
488	508		19. Sales of railroad track spikes manufactured and sold for
489	509		use in this state in the construction or repair of railroad tracks,
490	510		switches, sidings, and turnouts;
491	511		20. Sales of aircraft and aircraft parts provided such sales
492	512		occur at a qualified aircraft maintenance facility. As used in this
493	513		paragraph, "qualified aircraft maint enance facility" means a
494	514		facility operated by an air common carrier including one or more
495	515		component overhaul support buildings or structures in an area owned,
496	516		leased, or controlled by the air common carrier, at which there were
497	517		employed at least two thousa nd (2,000) full-time-equivalent
498	518		employees in the preceding year as certified by the Oklahoma
499	519		Employment Security Commission and which is primarily related to the
500	520		fabrication, repair, alteration, modification, refurbishing,
501	521		maintenance, building, or rebuilding of commercial aircraft or
502		-	aircraft parts used in air common carriage. For purposes of this
503		-	paragraph, "air common carrier" shall also include members of an
504		-	affiliated group as defined by Section 1504 of the Internal Revenue
505		-	Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
506		-	machinery, tools, supplies, equipment , and related tangible p ersonal
507		-	property and services used or consumed in the repair, remodeling, or
508		-	maintenance of aircraft, aircraft engines or aircraft component
509		-	parts which occur at a qualified aircraft maintenance facility;
510	522
511		-	ENGR. H. B. NO. 2317 Page 11 1
	523	+	HB2317 HFLR Page 11
	524	+	BOLD FACE denotes Committee Amendments. 1
512	525		2
513	526		3
514	527		4
515	528		5
516	529		6
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518	531		8
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527	540		17
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529	542		19
530	543		20
531	544		21
532	545		22
533	546		23
534	547		24
535	548
	549	+	aircraft parts used in air common carriage. For purposes of this
	550	+	paragraph, "air common carrier" shall also include members of an
	551	+	affiliated group as defined by Section 1504 of the Internal Revenue
	552	+	Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
	553	+	machinery, tools, supplies, equipment , and related tangible p ersonal
	554	+	property and services used or consumed in the repair, remodeling, or
	555	+	maintenance of aircraft, aircraft engines or aircraft component
	556	+	parts which occur at a qualified aircraft maintenance facility;
536	557		21. Sales of machinery and equipment purchased and used by
537	558		persons and establishments primarily engaged in computer services
538	559		and data processing:
539	560		a. as defined under Industrial Group Numbers 7372 and
540	561		7373 of the Standard Industrial Classification (SIC)
541	562		Manual, latest version, which derive at least fifty
542	563		percent (50%) of their annual gross revenues from the
543	564		sale of a product or service to an out-of-state buyer
544	565		or consumer, and
545	566		b. as defined under Industrial Gr oup Number 7374 of the
546	567		SIC Manual, latest version, which derive at least
547	568		eighty percent (80%) of th eir annual gross revenues
548	569		from the sale of a product or service to an out-of-
549	570		state buyer or consumer.
550	571		Eligibility for the exemption set out in this paragraph shall be
551	572		established, subject to review by the Tax Commission, by annually
552		-	filing an affidavit wit h the Tax Commission stating that the
553		-	facility so qualifies and such information as required by the Tax
554		-	Commission. For purposes of determining whether annu al gross
555		-	revenues are derived from sales to out-of-state buyers or consumers,
556		-	all sales to the fede ral government shall be considered to be to an
557		-	out-of-state buyer or consumer;
558		-	22. Sales of prosthetic devices to an individual for use by
559		-	such individual. For purposes of this paragraph, "prosthetic
560	573
561		-	ENGR. H. B. NO. 2317 Page 12 1
	574	+	HB2317 HFLR Page 12
	575	+	BOLD FACE denotes Committee Amendments. 1
562	576		2
563	577		3
564	578		4
565	579		5
566	580		6
567	581		7
568	582		8
569	583		9
570	584		10
571	585		11
572	586		12
573	587		13
574	588		14
575	589		15
576	590		16
577	591		17
578	592		18
579	593		19
580	594		20
581	595		21
582	596		22
583	597		23
584	598		24
585	599
	600	+	filing an affidavit wit h the Tax Commission stating that the
	601	+	facility so qualifies and such information as required by the Tax
	602	+	Commission. For purposes of determining whether annu al gross
	603	+	revenues are derived from sales to out-of-state buyers or consumers,
	604	+	all sales to the fede ral government shall be considered to be to an
	605	+	out-of-state buyer or consumer;
	606	+	22. Sales of prosthetic devices to an individual for use by
	607	+	such individual. For purposes of this paragraph, "prosthetic
586	608		device" shall have the same meaning as provided in Sec tion 1357.6 of
587	609		this title, but shall not include corrective eye glasses, contact
588	610		lenses, or hearing aids;
589	611		23. Sales of tangible personal property or service s to a motion
590	612		picture or television production company to be used or consumed in
591	613		connection with an eligible production. For purposes of this
592	614		paragraph, "eligible production" means a documentary, special, music
593	615		video or a television commercial or televisi on program that will
594	616		serve as a pilot for or be a segment of an ongoing dramatic or
595	617		situation comedy series filmed or taped for network or national or
596	618		regional syndication or a feature-length motion picture intended for
597	619		theatrical release or for network or national or regional
598	620		syndication or broadcast. The provisions of this paragraph shall
599	621		apply to sales occurring on or after July 1, 1996. In order to
600	622		qualify for the exemption, the motion picture or television
601	623		production company shall file any documentat ion and information
602		-	required to be submitted pursuant to rules promulgated by the Tax
603		-	Commission;
604		-	24. Sales of diesel fuel sold for consumption by commercial
605		-	vessels, barges and other commercial watercraft;
606		-	25. Sales of tangible personal property or serv ices to tax-
607		-	exempt independent nonprofit biomedical research foundations that
608		-	provide educational p rograms for Oklahoma science students and
609	624
610		-	ENGR. H. B. NO. 2317 Page 13 1
	625	+	HB2317 HFLR Page 13
	626	+	BOLD FACE denotes Committee Amendments. 1
611	627		2
612	628		3
613	629		4
614	630		5
615	631		6
616	632		7
617	633		8
618	634		9
619	635		10
620	636		11
621	637		12
622	638		13
623	639		14
624	640		15
625	641		16
626	642		17
627	643		18
628	644		19
629	645		20
630	646		21
631	647		22
632	648		23
633	649		24
634	650
	651	+	required to be submitted pursuant to rules promulgated by the Tax
	652	+	Commission;
	653	+	24. Sales of diesel fuel sold for consumption by commercial
	654	+	vessels, barges and other commercial watercraft;
	655	+	25. Sales of tangible personal property or serv ices to tax-
	656	+	exempt independent nonprofit biomedical research foundations that
	657	+	provide educational p rograms for Oklahoma science students and
635	658		teachers and to tax-exempt independent nonprofit community blood
636	659		banks headquartered in this state;
637	660		26. Effective May 6, 1992, sales of wireless telecommunications
638	661		equipment to a vendor who subsequently transfers the equipment at no
639	662		charge or for a discounted charge to a consumer as part of a
640	663		promotional package or as an inducement to commence or continue a
641	664		contract for wireless telecommunications services;
642	665		27. Effective January 1, 1991, leases of rail transportat ion
643	666		cars to haul coal to coal-fired plants located in this state which
644	667		generate electric power;
645	668		28. Beginning July 1, 2005, sales of aircraft engine repairs ,
646	669		modification, and replacement parts, sales of aircraft frame repairs
647	670		and modification, aircraft i nterior modification, and paint, and
648	671		sales of services employed in the repair, modification, and
649	672		replacement of parts of aircraft engines, aircraft frame and
650	673		interior repair and modification, and paint;
651		-	29. Sales of materials and supplies to the owner or operator of
652		-	a ship, motor vessel, or barge that is used in interstate o r
653		-	international commerce if the materials and supplies:
654		-	a. are loaded on the ship, mot or vessel, or barge and
655		-	used in the maintenance and operation of the ship,
656		-	motor vessel, or barge, or
657		-	b. enter into and become component parts of the ship,
658		-	motor vessel, or barge;
659	674
660		-	ENGR. H. B. NO. 2317 Page 14 1
	675	+	HB2317 HFLR Page 14
	676	+	BOLD FACE denotes Committee Amendments. 1
661	677		2
662	678		3
663	679		4
664	680		5
665	681		6
666	682		7
667	683		8
668	684		9
669	685		10
670	686		11
671	687		12
672	688		13
673	689		14
674	690		15
675	691		16
676	692		17
677	693		18
678	694		19
679	695		20
680	696		21
681	697		22
682	698		23
683	699		24
684	700
	701	+	29. Sales of materials and supplies to the owner or operator of
	702	+	a ship, motor vessel, or barge that is used in interstate o r
	703	+	international commerce if the materials and supplies:
	704	+	a. are loaded on the ship, mot or vessel, or barge and
	705	+	used in the maintenance and operation of the ship,
	706	+	motor vessel, or barge, or
	707	+	b. enter into and become component parts of the ship,
	708	+	motor vessel, or barge;
685	709		30. Sales of tangible personal property made at estate sales at
686	710		which such property is offered for sale on the premises of the
687	711		former residence of the decedent by a person wh o is not required to
688	712		be licensed pursuant to the Transient Merchant Lic ensing Act, or who
689	713		is not otherwise required to obtain a sales tax permit for the sale
690	714		of such property pursuant to the provisions of Section 1364 of this
691	715		title; provided:
692	716		a. such sale or event may not be held for a period
693	717		exceeding three (3) consecutive d ays,
694	718		b. the sale must be conducted within six (6) months of
695	719		the date of death of the d ecedent, and
696	720		c. the exemption allowed by this paragraph shall not be
697	721		allowed for property that was not part of the
698	722		decedent's estate;
699	723		31. Beginning January 1, 2004, sale s of electricity and
700	724		associated delivery and transmission services, when sold exclusiv ely
701		-	for use by an oil and gas operator for reservoir dewatering projects
702		-	and associated operations commencing on or after July 1, 2003, in
703		-	which the initial water-to-oil ratio is greater than or equal to
704		-	five-to-one water-to-oil, and such oil and gas devel opment projects
705		-	have been classified by the Corporation Commission as a reservoir
706		-	dewatering unit;
707		-	32. Sales of prewritten computer software that is delivered
708		-	electronically. For purposes of this paragraph, "delivered
709	725
710		-	ENGR. H. B. NO. 2317 Page 15 1
	726	+	HB2317 HFLR Page 15
	727	+	BOLD FACE denotes Committee Amendments. 1
711	728		2
712	729		3
713	730		4
714	731		5
715	732		6
716	733		7
717	734		8
718	735		9
719	736		10
720	737		11
721	738		12
722	739		13
723	740		14
724	741		15
725	742		16
726	743		17
727	744		18
728	745		19
729	746		20
730	747		21
731	748		22
732	749		23
733	750		24
734	751
	752	+	for use by an oil and gas operator for reservoir dewatering projects
	753	+	and associated operations commencing on or after July 1, 2003, in
	754	+	which the initial water-to-oil ratio is greater than or equal to
	755	+	five-to-one water-to-oil, and such oil and gas devel opment projects
	756	+	have been classified by the Corporation Commission as a reservoir
	757	+	dewatering unit;
	758	+	32. Sales of prewritten computer software that is delivered
	759	+	electronically. For purposes of this paragraph, "delivered
735	760		electronically" means delivered to t he purchaser by means other than
736	761		tangible storage media;
737	762		33. Sales of modular dwelling units whe n built at a production
738	763		facility and moved in whole or in parts, to be as sembled on-site,
739	764		and permanently affixed to the real property and used for
740	765		residential or commercial purposes. The exemption provided by this
741	766		paragraph shall equal forty -five percent (45%) of the total sales
742	767		price of the modular dwelling unit. For purpos es of this paragraph,
743	768		"modular dwelling unit" means a structure that is not subject to the
744	769		motor vehicle excise tax imposed pursuant to Section 2103 of this
745	770		title;
746	771		34. Sales of tangible personal property or services to:
747	772		a. persons who are residents of Okl ahoma and have been
748	773		honorably discharged from active service in any branch
749	774		of the Armed Forces of the United States or Oklahoma
750	775		National Guard and who have been certified by the
751		-	United States Department of Veterans Affairs or its
752		-	successor to be in receipt of disability compensation
753		-	at the one-hundred-percent rate and the disability
754		-	shall be permanent and have been sustained through
755		-	military action or accident or resulting from disea se
756		-	contracted while in such active service and registered
757		-	with the veterans registry created by the Oklahoma
758		-	Department of Veterans Affairs; provided, that if th e
759	776
760		-	ENGR. H. B. NO. 2317 Page 16 1
	777	+	HB2317 HFLR Page 16
	778	+	BOLD FACE denotes Committee Amendments. 1
761	779		2
762	780		3
763	781		4
764	782		5
765	783		6
766	784		7
767	785		8
768	786		9
769	787		10
770	788		11
771	789		12
772	790		13
773	791		14
774	792		15
775	793		16
776	794		17
777	795		18
778	796		19
779	797		20
780	798		21
781	799		22
782	800		23
783	801		24
784	802
	803	+	United States Department of Veterans Affairs or its
	804	+	successor to be in receipt of disability compensation
	805	+	at the one-hundred-percent rate and the disability
	806	+	shall be permanent and have been sustained through
	807	+	military action or accident or resulting from disea se
	808	+	contracted while in such active service and registered
	809	+	with the veterans registry created by the Oklahoma
	810	+	Department of Veterans Affairs; provided, that if th e
785	811		veteran received the sales tax exemption prior to
786	812		November 1, 2020, he or she shall be requir ed to
787	813		register with the veterans registry prior to July 1,
788	814		2023, in order to remain qualified, or
789	815		b. the surviving spouse of the person in subparagraph a
790	816		of this paragraph if the person is deceased and the
791	817		spouse has not remarried and the surviving spouse of a
792	818		person who is determined by the United States
793	819		Department of Defense or any branch of the United
794	820		States military to have died while in the line of duty
795	821		if the spouse has not remarried. Sales for the
796	822		benefit of an eligible person to a spouse of the
797	823		eligible person or to a member of the household in
798	824		which the eligible person r esides and who is
799	825		authorized to make purchases on the person's behalf,
800	826		when such eligible person is not present at the sale,
801		-	shall also be exempt for purpose s of this paragraph.
802		-	The Oklahoma Tax Commission shall issue a separate
803		-	exemption card to a spouse of an eligible person or to
804		-	a member of the household in which the eligible person
805		-	resides who is authorized to make purchases on the
806		-	person's behalf, if requested by the eligible person.
807		-	Sales qualifying for the exemption authorized by this
808		-	paragraph shall not exceed Twenty-five Thousand
809	827
810		-	ENGR. H. B. NO. 2317 Page 17 1
	828	+	HB2317 HFLR Page 17
	829	+	BOLD FACE denotes Committee Amendments. 1
811	830		2
812	831		3
813	832		4
814	833		5
815	834		6
816	835		7
817	836		8
818	837		9
819	838		10
820	839		11
821	840		12
822	841		13
823	842		14
824	843		15
825	844		16
826	845		17
827	846		18
828	847		19
829	848		20
830	849		21
831	850		22
832	851		23
833	852		24
834	853
	854	+	shall also be exempt for purpose s of this paragraph.
	855	+	The Oklahoma Tax Commission shall issue a separate
	856	+	exemption card to a spouse of an eligible person or to
	857	+	a member of the household in which the eligible person
	858	+	resides who is authorized to make purchases on the
	859	+	person's behalf, if requested by the eligible person.
	860	+	Sales qualifying for the exemption authorized by this
	861	+	paragraph shall not exceed Twenty-five Thousand
835	862		Dollars ($25,000.00) per year per individual while the
836	863		disabled veteran is living. Sales qualifying for the
837	864		exemption authorized by this paragr aph shall not
838	865		exceed One Thousand Dollars ($1,000.00) per year for
839	866		an unremarried surviving spouse. Upon request of the
840	867		Tax Commission, a person asserting or cla iming the
841	868		exemption authorized by this paragraph shall provide a
842	869		statement, executed under oat h, that the total sales
843	870		amounts for which the exemption is applicable have n ot
844	871		exceeded Twenty-five Thousand Dollars ($25,000.00) per
845	872		year per living disabled vet eran or One Thousand
846	873		Dollars ($1,000.00) per year for an unremarried
847	874		surviving spouse. If the amount of such exempt sales
848	875		exceeds such amount, the sales tax in excess of the
849	876		authorized amount shall be treated as a direct sales
850	877		tax liability and may be rec overed by the Tax
851		-	Commission in the same manner provided by law for
852		-	other taxes including penalty and interest. The Tax
853		-	Commission shall promulgate any rules necessary t o
854		-	implement the provisions of this paragraph, which
855		-	shall include rules providing for the disclosure of
856		-	information about persons eligible for the exemption
857		-	authorized in this par agraph to the Oklahoma
858	878
859		-	ENGR. H. B. NO. 2317 Page 18 1
	879	+	HB2317 HFLR Page 18
	880	+	BOLD FACE denotes Committee Amendments. 1
860	881		2
861	882		3
862	883		4
863	884		5
864	885		6
865	886		7
866	887		8
867	888		9
868	889		10
869	890		11
870	891		12
871	892		13
872	893		14
873	894		15
874	895		16
875	896		17
876	897		18
877	898		19
878	899		20
879	900		21
880	901		22
881	902		23
882	903		24
883	904
	905	+	Commission in the same manner provided by law for
	906	+	other taxes including penalty and interest. The Tax
	907	+	Commission shall promulgate any rules necessary t o
	908	+	implement the provisions of this paragraph, which
	909	+	shall include rules providing for the disclosure of
	910	+	information about persons eligible for the exemption
	911	+	authorized in this par agraph to the Oklahoma
884	912		Department of Veteran's Affairs, as authorized in
885	913		Section 205 of this title;
886	914		35. Sales of electricity to the operator, specifically
887	915		designated by the Corporation Commission, of a spacing unit or lease
888	916		from which oil is produced or attempted to be produced using
889	917		enhanced recovery methods including, but not li mited to, increased
890	918		pressure in a producing formation through the use of water or
891	919		saltwater if the electrical usage is associated with and necessary
892	920		for the operation of equipme nt required to inject or circulate
893	921		fluids in a producing formation for the purp ose of forcing oil or
894	922		petroleum into a wellbore for eventual recovery and production f rom
895	923		the wellhead. In order to be eligible for the sales tax exempti on
896	924		authorized by this p aragraph, the total content of oil recovered
897	925		after the use of enhanced recovery methods shall not exceed one
898	926		percent (1%) by volume. The exemption authorized by thi s paragraph
899	927		shall be applicable only to the state sales tax rate and shall not
900	928		be applicable to any county or municipal sales tax rate;
901		-	36. Sales of intrastate charter a nd tour bus transportation.
902		-	As used in this paragraph, "intrastate charter and tour b us
903		-	transportation" means the transportation of persons from one
904		-	location in this state to another location in this state in a motor
905		-	vehicle which has been constructed in such a manner that it may
906		-	lawfully carry more than eighteen persons, and which is ordi narily
907		-	used or rented to carry persons for compensation. Provid ed, this
908	929
909		-	ENGR. H. B. NO. 2317 Page 19 1
	930	+	HB2317 HFLR Page 19
	931	+	BOLD FACE denotes Committee Amendments. 1
910	932		2
911	933		3
912	934		4
913	935		5
914	936		6
915	937		7
916	938		8
917	939		9
918	940		10
919	941		11
920	942		12
921	943		13
922	944		14
923	945		15
924	946		16
925	947		17
926	948		18
927	949		19
928	950		20
929	951		21
930	952		22
931	953		23
932	954		24
933	955
	956	+	36. Sales of intrastate charter a nd tour bus transportation.
	957	+	As used in this paragraph, "intrastate charter and tour b us
	958	+	transportation" means the transportation of persons from one
	959	+	location in this state to another location in this state in a motor
	960	+	vehicle which has been constructed in such a manner that it may
	961	+	lawfully carry more than eighteen persons, and which is ordi narily
	962	+	used or rented to carry persons for compensation. Provid ed, this
934	963		exemption shall not apply to regularly scheduled bus transportation
935	964		for the general public;
936	965		37. Sales of vitamins, minerals, and dietary supplements by a
937	966		licensed chiropractor to a p erson who is the patient of such
938	967		chiropractor at the physical loc ation where the chiropra ctor
939	968		provides chiropractic care or services to such patient. The
940	969		provisions of this paragraph shall not be applicable to any drug,
941	970		medicine, or substance for which a prescription by a licensed
942	971		physician is required;
943	972		38. Sales of goods, wares, merchandis e, tangible personal
944	973		property, machinery, and equipment to a web search portal loc ated in
945	974		this state which derives at least eighty percent (80%) of its annual
946	975		gross revenue from the sale of a product or service to an out -of-
947	976		state buyer or consumer. For pu rposes of this paragraph, "web
948	977		search portal" means an establishment classified un der NAICS code
949	978		519130 which operates websites that use a search engine to generate
950		-	and maintain extensive databases of Internet addresses and content
951		-	in an easily searchable format;
952		-	39. Sales of tangible personal property consumed or
953		-	incorporated in the c onstruction or expansion of a facility for a
954		-	corporation organized under Section 437 et seq. of Title 18 of the
955		-	Oklahoma Statutes as a rural electric coo perative. For purpo ses of
956		-	this paragraph, sales made to a contractor or subcontractor that has
957		-	previously entered into a contractual relationship with a rural
958	979
959		-	ENGR. H. B. NO. 2317 Page 20 1
	980	+	HB2317 HFLR Page 20
	981	+	BOLD FACE denotes Committee Amendments. 1
960	982		2
961	983		3
962	984		4
963	985		5
964	986		6
965	987		7
966	988		8
967	989		9
968	990		10
969	991		11
970	992		12
971	993		13
972	994		14
973	995		15
974	996		16
975	997		17
976	998		18
977	999		19
978	1000		20
979	1001		21
980	1002		22
981	1003		23
982	1004		24
983	1005
	1006	+	and maintain extensive databases of Internet addresses and content
	1007	+	in an easily searchable format;
	1008	+	39. Sales of tangible personal property consumed or
	1009	+	incorporated in the c onstruction or expansion of a facility for a
	1010	+	corporation organized under Section 437 et seq. of Title 18 of the
	1011	+	Oklahoma Statutes as a rural electric coo perative. For purpo ses of
	1012	+	this paragraph, sales made to a contractor or subcontractor that has
	1013	+	previously entered into a contractual relationship with a rural
984	1014		electric cooperative for cons truction or expansion of a facility
985	1015		shall be considered sales made to a rural electric cooperative;
986	1016		40. Sales of tangible personal property or services to a
987	1017		business primarily engaged in the repair of consumer electronic
988	1018		goods including, but not limited t o, cell phones, compact disc
989	1019		players, personal computers, MP3 pla yers, digital devices for the
990	1020		storage and retrieval of information through hard -wired or wireless
991	1021		computer or Internet connections, if the devices are sold to the
992	1022		business by the original man ufacturer of such devices and the
993	1023		devices are repaired, refitted or refurbished for sa le by the entity
994	1024		qualifying for the exemption authorized by this paragraph directly
995	1025		to retail consumers or if the devices are sold to another business
996	1026		entity for sale to retail consumers;
997	1027		41. On or after July 1, 2019 2024, and prior to July 1, 2024
998	1028		2029, sales or leases of rolling stock when sold or leased by the
999	1029		manufacturer, regardless of whether the purchaser is a public
1000		-	services corporation engaged in business as a common carri er of
1001		-	property or passengers by railway, for use or consumption by a
1002		-	common carrier directly in the rendition of public service. For
1003		-	purposes of this paragraph , "rolling stock" means locomotives,
1004		-	autocars, and railroad cars and "sales or leases" includes railroad
1005		-	car maintenance and retrofitting of railroad cars for th eir further
1006		-	use only on the railways; and
1007	1030
1008		-	ENGR. H. B. NO. 2317 Page 21 1
	1031	+	HB2317 HFLR Page 21
	1032	+	BOLD FACE denotes Committee Amendments. 1
1009	1033		2
1010	1034		3
1011	1035		4
1012	1036		5
1013	1037		6
1014	1038		7
1015	1039		8
1016	1040		9
1017	1041		10
1018	1042		11
1019	1043		12
1020	1044		13
1021	1045		14
1022	1046		15
1023	1047		16
1024	1048		17
1025	1049		18
1026	1050		19
1027	1051		20
1028	1052		21
1029	1053		22
1030	1054		23
1031	1055		24
1032	1056
	1057	+	services corporation engaged in business as a common carri er of
	1058	+	property or passengers by railway, for use or consumption by a
	1059	+	common carrier directly in the rendition of public service. For
	1060	+	purposes of this paragraph , "rolling stock" means locomotives,
	1061	+	autocars, and railroad cars and "sales or leases" includes railroad
	1062	+	car maintenance and retrofitting of railroad cars for th eir further
	1063	+	use only on the railways; and
1033	1064		42. Sales of gold, silver, platinum, palladium or ot her bullion
1034	1065		items such as coins and bars and legal tender of any nation, which
1035	1066		legal tender is sold according to its value as precious metal or as
1036	1067		an investment. As used in the paragraph, "bullion" means any
1037	1068		precious metal including, but not limited to, g old, silver,
1038	1069		platinum, and palladium, that is in such a state or condition that
1039	1070		its value depends upon its precious metal content and not its form.
1040	1071		The exemption authorized by this paragraph shall not apply to
1041	1072		fabricated metals that have been processed or manufactured for
1042	1073		artistic use or as jewelry.
1043	1074		SECTION 2. This act shall become effectiv e November 1, 2023.
1044		-	Passed the House of Representatives the 8th day of March, 2023.
1045	1075
1046		-
1047		-
1048		-
1049		-	Presiding Officer of the House
1050		-	of Representatives
1051		-
1052		-
1053		-
1054		-	Passed the Senate the ___ day of __________, 2023.
1055		-
1056		-
1057		-
1058		-
1059		-	Presiding Officer of the Senate
1060		-
1061		-
	1076	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	1077	+	02/23/2023 - DO PASS, As Coauthored.