OK
Oklahoma House Bill HB2665

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2665 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33 Req. No. 6154 Page 1 1
44 2
55 3
66 4
77 5
88 6
99 7
1010 8
1111 9
1212 10
1313 11
1414 12
1515 13
1616 14
1717 15
1818 16
1919 17
2020 18
2121 19
2222 20
2323 21
2424 22
2525 23
2626 24
2727
2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 59th Legislature (2023)
3131
3232 HOUSE BILL 2665 By: Steagall
3333
3434
3535
3636
3737
3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; amending 68
4141 O.S. 2021, Section 1357, as amended by Section 1,
4242 Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022, Section
4343 1357), which relates to sales tax exemptions;
4444 modifying provisions related to administration of
4545 sales tax exemptions for dis abled veterans;
4646 authorizing exemption ba sed on certain date of
4747 disability determination; modifying maximum amount of
4848 sales for purposes of exempt treatment; providing an
4949 effective date; and dec laring an emergency.
5050
5151
5252
5353
5454
5555
5656
5757
5858
5959
6060 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6161 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
6262 amended by Section 1, Chapter 206, O.S.L. 2022 (68 O.S. S upp. 2022,
6363 Section 1357), is amended to read as follows:
6464 Section 1357. Exemptions – General.
6565 There are hereby specifically exempted fr om the tax levied by
6666 the Oklahoma Sales Tax Code :
6767
6868 Req. No. 6154 Page 2 1
6969 2
7070 3
7171 4
7272 5
7373 6
7474 7
7575 8
7676 9
7777 10
7878 11
7979 12
8080 13
8181 14
8282 15
8383 16
8484 17
8585 18
8686 19
8787 20
8888 21
8989 22
9090 23
9191 24
9292
9393 1. Transportation of school pupils to and from elementary
9494 schools or high schools in motor or other vehicles;
9595 2. Transportation of persons where the fare of each person does
9696 not exceed One Dollar ($1.00), or local transportatio n of persons
9797 within the corporate limits of a municipality except by taxicabs;
9898 3. Sales for resale to persons engaged in the bu siness of
9999 reselling the articles purchased, whether within or without the
100100 state, provided that such sales to residents of this s tate are made
101101 to persons to whom sales tax permits have been issued as provided in
102102 the Oklahoma Sales Tax Code. This exemption shall not apply to the
103103 sales of articles made to persons holding permits when such persons
104104 purchase items for their use and whic h they are not regularly
105105 engaged in the business of reselling; neither shall this exemption
106106 apply to sales of tangible personal property to peddlers, solic itors
107107 and other salespersons who do not have an established place of
108108 business and a sales tax permit. The exemption provided by this
109109 paragraph shall apply to sales of motor fuel or diesel fuel to a
110110 Group Five vendor, but the use of such motor fuel or dies el fuel by
111111 the Group Five vendor shall not be exempt from the tax levied by th e
112112 Oklahoma Sales Tax Co de. The purchase of moto r fuel or diesel fuel
113113 is exempt from sales tax when the motor fuel is for shipment outside
114114 this state and consumed by a common car rier by rail in the conduct
115115 of its business. The sales tax shall apply to the purchase of motor
116116 fuel or diesel fuel in Oklaho ma by a common carrier by rail when
117117
118118 Req. No. 6154 Page 3 1
119119 2
120120 3
121121 4
122122 5
123123 6
124124 7
125125 8
126126 9
127127 10
128128 11
129129 12
130130 13
131131 14
132132 15
133133 16
134134 17
135135 18
136136 19
137137 20
138138 21
139139 22
140140 23
141141 24
142142
143143 such motor fuel is purchased for fueling, within this state, of any
144144 locomotive or other motori zed flanged wheel equipment;
145145 4. Sales of advertising space in newspapers and periodicals;
146146 5. Sales of programs relating to s porting and entertainment
147147 events, and sales of advertising on billboards (including signage,
148148 posters, panels, marquees or on other similar surfaces, whether
149149 indoors or outdoors) or in programs relating to spo rting and
150150 entertainment events, and sales of any advertising, to be displayed
151151 at or in connection with a sporting event, via the Internet,
152152 electronic display devices or through public address or broadcast
153153 systems. The exemption authorized by this paragrap h shall be
154154 effective for all sales made on or af ter January 1, 2001;
155155 6. Sales of any advertising, other than the advertising
156156 described by paragraph 5 of this section, via the Internet,
157157 electronic display devices or through the electronic media including
158158 radio, public address o r broadcast systems, tel evision (whether
159159 through closed circuit broadcasting systems or otherwise), and cable
160160 and satellite television, and the servicing of any advertising
161161 devices;
162162 7. Eggs, feed, supplies, machinery , and equipment purchased by
163163 persons regularly engaged in the business of raising worms, fish,
164164 any insect, or any other form of terrestrial or aquatic animal life
165165 and used for the purpose of raising same for marketing. This
166166 exemption shall only be granted and extended to the purchaser when
167167
168168 Req. No. 6154 Page 4 1
169169 2
170170 3
171171 4
172172 5
173173 6
174174 7
175175 8
176176 9
177177 10
178178 11
179179 12
180180 13
181181 14
182182 15
183183 16
184184 17
185185 18
186186 19
187187 20
188188 21
189189 22
190190 23
191191 24
192192
193193 the items are to be used a nd in fact are used in the raising of
194194 animal life as set out above. Each purchaser shall certify, in
195195 writing, on the invoice or sales ticket retained by the vendor that
196196 the purchaser is regularly engaged in th e business of raising s uch
197197 animal life and that the items purchased will be used only in such
198198 business. The vendor shall certify to the Oklahoma Tax Co mmission
199199 that the price of the items has been reduced to grant the full
200200 benefit of the exemption. Viola tion hereof by the purc haser or
201201 vendor shall be a misdemeanor;
202202 8. Sale of natural or artificial gas and electricity, and
203203 associated delivery or transmi ssion services, when sold exclusively
204204 for residential use. Provided, this exemption shall not apply to
205205 any sales tax levied by a city or town, or a county or any other
206206 jurisdiction in this state;
207207 9. In addition to the exemptions authorized by Section 135 7.6
208208 of this title, sales of drugs sold pursuant to a prescription
209209 written for the treatment of human bei ngs by a person license d to
210210 prescribe the drugs, and sales of insulin and medical oxygen.
211211 Provided, this exemption shall not apply to over-the-counter drugs;
212212 10. Transfers of title or possession of empty, partially
213213 filled, or filled returnable oil and ch emical drums to any per son
214214 who is not regularly engaged in the business of selling, reselling
215215 or otherwise transferring empty, partially filled or filled
216216 returnable oil drums;
217217
218218 Req. No. 6154 Page 5 1
219219 2
220220 3
221221 4
222222 5
223223 6
224224 7
225225 8
226226 9
227227 10
228228 11
229229 12
230230 13
231231 14
232232 15
233233 16
234234 17
235235 18
236236 19
237237 20
238238 21
239239 22
240240 23
241241 24
242242
243243 11. Sales of one-way utensils, paper napkins, paper cups,
244244 disposable hot contai ners, and other one-way carry out materials to
245245 a vendor of meals or beverages;
246246 12. Sales of food or food products for home consumption which
247247 are purchased in whole or in part with coupons issued pursuant to
248248 the federal food stamp program as authorized by Sections 2011
249249 through 2029 of Title 7 of the United States Code, as to that
250250 portion purchased with such coupons. The exemption provided for
251251 such sales shall be inapplicable to such sales upon the effective
252252 date of any federal law that removes the requirem ent of the
253253 exemption as a condition for participation by the state in the
254254 federal food stamp program;
255255 13. Sales of food or food products, or any equ ipment or
256256 supplies used in the preparation of the food or food products to or
257257 by an organization which:
258258 a. is exempt from taxation pursuant to the provisions of
259259 Section 501(c)(3) of the Internal Revenue Code, 26
260260 U.S.C., Section 501(c)(3), and which provid es and
261261 delivers prepared meals for home consumption to
262262 elderly or homebound persons as part of a program
263263 commonly known as "Meals on Wheels" or "Mobile Meals",
264264 or
265265 b. is exempt from taxation pursuant to the provisions of
266266 Section 501(c)(3) of the Internal R evenue Code, 26
267267
268268 Req. No. 6154 Page 6 1
269269 2
270270 3
271271 4
272272 5
273273 6
274274 7
275275 8
276276 9
277277 10
278278 11
279279 12
280280 13
281281 14
282282 15
283283 16
284284 17
285285 18
286286 19
287287 20
288288 21
289289 22
290290 23
291291 24
292292
293293 U.S.C., Section 501(c)(3), and which receives federal
294294 funding pursuant to the Older Americans Act of 1965,
295295 as amended, for the purpose of providing nutrition
296296 programs for the care and benefit of elderly persons;
297297 14. a. Sales of tangible pe rsonal property or services to or
298298 by organizations which are exempt from taxation
299299 pursuant to the provisions o f Section 501(c)(3) of the
300300 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
301301 and:
302302 (1) are primarily involved in the collection and
303303 distribution of food and other household products
304304 to other organizations that facilitate the
305305 distribution of such products to the needy and
306306 such distributee organizations are exempt from
307307 taxation pursuant to the provisions of Section
308308 501(c)(3) of the Internal Revenue Code, 26
309309 U.S.C., Section 501(c)(3), or
310310 (2) facilitate the distribution of such products to
311311 the needy.
312312 b. Sales made in the course of business for profit or
313313 savings, competing with other persons engaged in the
314314 same or similar business shall not be exempt under
315315 this paragraph;
316316
317317 Req. No. 6154 Page 7 1
318318 2
319319 3
320320 4
321321 5
322322 6
323323 7
324324 8
325325 9
326326 10
327327 11
328328 12
329329 13
330330 14
331331 15
332332 16
333333 17
334334 18
335335 19
336336 20
337337 21
338338 22
339339 23
340340 24
341341
342342 15. Sales of tangible personal property or services to
343343 children's homes which are located on church-owned property and are
344344 operated by organizations exempt from taxation pursuant to the
345345 provisions of the Internal Revenue Code, 26 U.S.C., Section
346346 501(c)(3);
347347 16. Sales of computers, data processing equipment, related
348348 peripherals, and telephone, telegraph or telecommun ications service
349349 and equipment for use in a qualified aircraft maintenance or
350350 manufacturing facility. For purposes of this paragraph, "qualified
351351 aircraft maintenance or manufacturing facility" means a new or
352352 expanding facility prima rily engaged in aircraf t repair, building or
353353 rebuilding whether or not on a factory basis, whose total cost of
354354 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
355355 and which employs at least two hundred fifty (250) new full -time-
356356 equivalent employees, as certified by the Oklahoma Employment
357357 Security Commission, upon completion of the facility. In order to
358358 qualify for the exemption provided for by this paragraph, the cost
359359 of the items purchased by the qualified aircraft maintenance or
360360 manufacturing facility shall e qual or exceed the sum of Two Million
361361 Dollars ($2,000,000.00);
362362 17. Sales of tangible personal property consumed or
363363 incorporated in the construction or expansion of a qualified
364364 aircraft maintenance or manufacturing facility as define d in
365365 paragraph 16 of this section. For purposes of this paragraph, sales
366366
367367 Req. No. 6154 Page 8 1
368368 2
369369 3
370370 4
371371 5
372372 6
373373 7
374374 8
375375 9
376376 10
377377 11
378378 12
379379 13
380380 14
381381 15
382382 16
383383 17
384384 18
385385 19
386386 20
387387 21
388388 22
389389 23
390390 24
391391
392392 made to a contractor or subcontractor that has previously entered
393393 into a contractual relationship with a qualified aircraft
394394 maintenance or manufacturing facility for construction or expansion
395395 of such a facility shall be considered sales made to a qualified
396396 aircraft maintenance or manufacturing facility;
397397 18. Sales of the following telecommunications services:
398398 a. Interstate and International "800 service". "800
399399 service" means a "telecommunications service " that
400400 allows a caller to dial a toll-free number without
401401 incurring a charge for the call. The service is
402402 typically marketed under the name "800", "855", "866",
403403 "877" and "888" toll-free calling, and any subsequent
404404 numbers designated by the Federal Communic ations
405405 Commission,
406406 b. Interstate and International "900 service". "900
407407 service" means an inbound toll "telecommunications
408408 service" purchased by a subscriber that allows the
409409 subscriber's customers to call in to the subscriber 's
410410 prerecorded announcement or live service. "900
411411 service" does not include the charge for: collection
412412 services provided by the seller of the
413413 "telecommunications services" to the subscriber, or
414414 service or product sold by the subscriber to the
415415 subscriber's customer. The service is t ypically
416416
417417 Req. No. 6154 Page 9 1
418418 2
419419 3
420420 4
421421 5
422422 6
423423 7
424424 8
425425 9
426426 10
427427 11
428428 12
429429 13
430430 14
431431 15
432432 16
433433 17
434434 18
435435 19
436436 20
437437 21
438438 22
439439 23
440440 24
441441
442442 marketed under the name "900" service, and any
443443 subsequent numbers designated by the Federal
444444 Communications Commission,
445445 c. Interstate and International "private communications
446446 service". "Private communications service " means a
447447 "telecommunications service" that entitles the
448448 customer to exclusive or priority use of a
449449 communications channel or group of channels between or
450450 among termination points, regardless of the manner in
451451 which such channel or channels are connected, and
452452 includes switching capacity , extension lines, stations
453453 and any other associated services that are provided in
454454 connection with the use of such channel or channels,
455455 d. "Value-added nonvoice data service". "Value-added
456456 nonvoice data service " means a service that otherwise
457457 meets the definition of "telecommunications services"
458458 in which computer processing applications are used to
459459 act on the form, content, code or protocol of the
460460 information or data primarily for a purpose other than
461461 transmission, conveyance , or routing,
462462 e. Interstate and International telecommunications
463463 service which is:
464464 (1) rendered by a company for private use within its
465465 organization, or
466466
467467 Req. No. 6154 Page 10 1
468468 2
469469 3
470470 4
471471 5
472472 6
473473 7
474474 8
475475 9
476476 10
477477 11
478478 12
479479 13
480480 14
481481 15
482482 16
483483 17
484484 18
485485 19
486486 20
487487 21
488488 22
489489 23
490490 24
491491
492492 (2) used, allocated or distributed by a company to
493493 its affiliated group,
494494 f. Regulatory assessments and charges including charges
495495 to fund the Oklahoma Universal Service Fund, the
496496 Oklahoma Lifeline Fund and the Oklahoma High Cost
497497 Fund, and
498498 g. Telecommunications nonre curring charges including but
499499 not limited to the installation, connection, change ,
500500 or initiation of telecommunications se rvices which are
501501 not associated with a retail consumer sale;
502502 19. Sales of railroad track spikes manufactured and sold for
503503 use in this state in the construction or repair of railroad tracks,
504504 switches, sidings, and turnouts;
505505 20. Sales of aircraft and aircraft parts provided such sales
506506 occur at a qualified aircraft maintenance facility. As used in this
507507 paragraph, "qualified aircraft maint enance facility" means a
508508 facility operated by an air common carrier including one or more
509509 component overhaul support buildings or structures in an area owned,
510510 leased, or controlled by the air common carrier, at which there were
511511 employed at least two thousa nd (2,000) full-time-equivalent
512512 employees in the preceding year as certified by the Oklahoma
513513 Employment Security Commission and which is primarily related to the
514514 fabrication, repair, alteration, modification, refurbishing,
515515 maintenance, building, or rebuilding of commercial aircraft or
516516
517517 Req. No. 6154 Page 11 1
518518 2
519519 3
520520 4
521521 5
522522 6
523523 7
524524 8
525525 9
526526 10
527527 11
528528 12
529529 13
530530 14
531531 15
532532 16
533533 17
534534 18
535535 19
536536 20
537537 21
538538 22
539539 23
540540 24
541541
542542 aircraft parts used in air common carriage. For purposes of this
543543 paragraph, "air common carrier" shall also include members of an
544544 affiliated group as defined by Section 1504 of the Internal Revenue
545545 Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
546546 machinery, tools, supplies, equipment , and related tangible p ersonal
547547 property and services used or consumed in the repair, remodeling, or
548548 maintenance of aircraft, aircraft engines or aircraft component
549549 parts which occur at a qualified aircraft maintenance facility;
550550 21. Sales of machinery and equipment purchased and used by
551551 persons and establishments primarily engaged in computer services
552552 and data processing:
553553 a. as defined under Industrial Group Numbers 7372 and
554554 7373 of the Standard Industrial Classification (SIC)
555555 Manual, latest version, which derive at least fifty
556556 percent (50%) of their annual gross revenues from the
557557 sale of a product or service to an out-of-state buyer
558558 or consumer, and
559559 b. as defined under Industrial Gr oup Number 7374 of the
560560 SIC Manual, latest version, which derive at least
561561 eighty percent (80%) of th eir annual gross revenues
562562 from the sale of a product or service to an out-of-
563563 state buyer or consumer.
564564 Eligibility for the exemption set out in this paragraph shall be
565565 established, subject to review by the Tax Commission, by annually
566566
567567 Req. No. 6154 Page 12 1
568568 2
569569 3
570570 4
571571 5
572572 6
573573 7
574574 8
575575 9
576576 10
577577 11
578578 12
579579 13
580580 14
581581 15
582582 16
583583 17
584584 18
585585 19
586586 20
587587 21
588588 22
589589 23
590590 24
591591
592592 filing an affidavit wit h the Tax Commission stating that the
593593 facility so qualifies and such information as required by the Tax
594594 Commission. For purposes of determining whether annu al gross
595595 revenues are derived from sales to out-of-state buyers or consumers,
596596 all sales to the fede ral government shall be considered to be to an
597597 out-of-state buyer or consumer;
598598 22. Sales of prosthetic devices to an individual for use by
599599 such individual. For purposes of this paragraph, "prosthetic
600600 device" shall have the same meaning as provided in Sec tion 1357.6 of
601601 this title, but shall not include corrective eye glasses, contact
602602 lenses, or hearing aids;
603603 23. Sales of tangible personal property or service s to a motion
604604 picture or television production company to be used or consumed in
605605 connection with an eligible production. For purposes of this
606606 paragraph, "eligible production" means a documentary, special, music
607607 video or a television commercial or televisi on program that will
608608 serve as a pilot for or be a segment of an ongoing dramatic or
609609 situation comedy series filmed or taped for network or national or
610610 regional syndication or a feature-length motion picture intended for
611611 theatrical release or for network or national or regional
612612 syndication or broadcast. The provisions of this paragraph shall
613613 apply to sales occurring on or after July 1, 1996. In order to
614614 qualify for the exemption, the motion picture or television
615615 production company shall file any documentat ion and information
616616
617617 Req. No. 6154 Page 13 1
618618 2
619619 3
620620 4
621621 5
622622 6
623623 7
624624 8
625625 9
626626 10
627627 11
628628 12
629629 13
630630 14
631631 15
632632 16
633633 17
634634 18
635635 19
636636 20
637637 21
638638 22
639639 23
640640 24
641641
642642 required to be submitted pursuant to rules promulgated by the Tax
643643 Commission;
644644 24. Sales of diesel fuel sold for consumption by commercial
645645 vessels, barges and other commercial watercraft;
646646 25. Sales of tangible personal property or serv ices to tax-
647647 exempt independent nonprofit biomedical research foundations that
648648 provide educational p rograms for Oklahoma science students and
649649 teachers and to tax-exempt independent nonprofit community blood
650650 banks headquartered in this state;
651651 26. Effective May 6, 1992, sales of wireless telecommunications
652652 equipment to a vendor who subsequently transfers the equipment at no
653653 charge or for a discounted charge to a consumer as part of a
654654 promotional package or as an inducement to commence or continue a
655655 contract for wireless telecommunications services;
656656 27. Effective January 1, 1991, leases of rail transportat ion
657657 cars to haul coal to coal-fired plants located in this state which
658658 generate electric power;
659659 28. Beginning July 1, 2005, sales of aircraft engine repairs ,
660660 modification, and replacement parts, sales of aircraft frame repairs
661661 and modification, aircraft i nterior modification, and paint, and
662662 sales of services employed in the repair, modification, and
663663 replacement of parts of aircraft engines, aircraft frame and
664664 interior repair and modification, and paint;
665665
666666 Req. No. 6154 Page 14 1
667667 2
668668 3
669669 4
670670 5
671671 6
672672 7
673673 8
674674 9
675675 10
676676 11
677677 12
678678 13
679679 14
680680 15
681681 16
682682 17
683683 18
684684 19
685685 20
686686 21
687687 22
688688 23
689689 24
690690
691691 29. Sales of materials and supplies to the owner or operator of
692692 a ship, motor vessel, or barge that is used in interstate or
693693 international commerce if the materials and supplies:
694694 a. are loaded on the ship, mot or vessel, or barge and
695695 used in the maintenance and operation of the ship,
696696 motor vessel, or barge, or
697697 b. enter into and become component parts of the ship,
698698 motor vessel, or barge;
699699 30. Sales of tangible personal property made at estate sales at
700700 which such property is offered for sale on the premises of the
701701 former residence of the decedent by a person wh o is not required to
702702 be licensed pursuant to the Transient Merchant Licensing Act, or who
703703 is not otherwise required to obtain a sales tax permit for the sale
704704 of such property pursuant to the provisions of Section 1364 of this
705705 title; provided:
706706 a. such sale or event may not be held for a period
707707 exceeding three (3) consecutive days,
708708 b. the sale must be conducted within six (6) months of
709709 the date of death of the d ecedent, and
710710 c. the exemption allowed by this paragraph shall not be
711711 allowed for property that was not part of the
712712 decedent's estate;
713713 31. Beginning January 1, 2004, sales of electricity and
714714 associated delivery and transmission services, when sold exclusiv ely
715715
716716 Req. No. 6154 Page 15 1
717717 2
718718 3
719719 4
720720 5
721721 6
722722 7
723723 8
724724 9
725725 10
726726 11
727727 12
728728 13
729729 14
730730 15
731731 16
732732 17
733733 18
734734 19
735735 20
736736 21
737737 22
738738 23
739739 24
740740
741741 for use by an oil and gas operator for reservoir dewatering projects
742742 and associated operations commencing on or after July 1, 2003, in
743743 which the initial water-to-oil ratio is greater than or equal to
744744 five-to-one water-to-oil, and such oil and gas devel opment projects
745745 have been classified by the Corporation Commission as a reservoir
746746 dewatering unit;
747747 32. Sales of prewritten computer software that is delivered
748748 electronically. For purposes of this paragraph, "delivered
749749 electronically" means delivered to t he purchaser by means other than
750750 tangible storage media;
751751 33. Sales of modular dwelling units whe n built at a production
752752 facility and moved in whole or in parts, to be assembled on-site,
753753 and permanently affixed to the real property and used for
754754 residential or commercial purposes. The exemption provided by this
755755 paragraph shall equal forty -five percent (45%) of the total sales
756756 price of the modular dwelling unit. For purposes of this paragraph,
757757 "modular dwelling unit" means a structure that is not subject to the
758758 motor vehicle excise tax imposed pursuant to Section 2103 of this
759759 title;
760760 34. Sales of tangible personal property or services to:
761761 a. persons who are residents of Oklahoma and have been
762762 honorably discharged from active service in any branch
763763 of the Armed Forces of the United States or Oklahoma
764764 National Guard and who have been certified by the
765765
766766 Req. No. 6154 Page 16 1
767767 2
768768 3
769769 4
770770 5
771771 6
772772 7
773773 8
774774 9
775775 10
776776 11
777777 12
778778 13
779779 14
780780 15
781781 16
782782 17
783783 18
784784 19
785785 20
786786 21
787787 22
788788 23
789789 24
790790
791791 United States Department of Ve terans Affairs or its
792792 successor to be in receipt of awarded disability
793793 compensation at the one-hundred-percent rate and the
794794 disability shall be permanent and have been sustained
795795 through military action or accident or resulting from
796796 disease contracted while in such active service and
797797 registered with the veterans registry created by the
798798 Oklahoma Department of Veterans Affairs; provided,
799799 that if the veteran received the sales tax exemption
800800 prior to November 1, 2020, he or she shall be requir ed
801801 to register with the vet erans registry prior to July
802802 1, 2023, in order to remain qualified, or
803803 b. the surviving spouse of the person in subparagraph a
804804 of this paragraph if the person is deceased and the
805805 spouse has not remarried and the surviving spouse of a
806806 person who is determined by the United States
807807 Department of Defense or any branch of the United
808808 States military to have died while in the line of duty
809809 if the spouse has not remarried . Sales for the
810810 benefit of an eligible person to a spouse of the
811811 eligible person or to a member of the household in
812812 which the eligible person resides and who is
813813 authorized to make purchases on the person's behalf,
814814 when such eligible person is not present at the sale,
815815
816816 Req. No. 6154 Page 17 1
817817 2
818818 3
819819 4
820820 5
821821 6
822822 7
823823 8
824824 9
825825 10
826826 11
827827 12
828828 13
829829 14
830830 15
831831 16
832832 17
833833 18
834834 19
835835 20
836836 21
837837 22
838838 23
839839 24
840840
841841 shall also be exempt for purpose s of this paragraph.
842842 The Oklahoma Tax Commission s hall issue a separate
843843 exemption card to a spouse of an eligible person or to
844844 a member up to two (2) members of the household in
845845 which the eligible person re sides who is are
846846 authorized to make purchase s on the person's behalf,
847847 if requested by the eligible person. Nothing herein
848848 shall preclude the surviving spouse of a deceased
849849 veteran from eligibility for the sales tax exemption
850850 on the basis that the disability rating was approved
851851 or awarded on or after the veteran 's date of death.
852852 Sales qualifying for the exemption authorized b y this
853853 paragraph shall not exceed Twenty-five Thousand
854854 Dollars ($25,000.00) per year per individual while the
855855 disabled veteran is living. Sales qualifying for the
856856 exemption authorized by this paragr aph shall not
857857 exceed One Thousand Dollars ($1,000.00) Ten Thousand
858858 Dollars ($10,000.00) per year for an unremarried
859859 surviving spouse. Upon request of the Tax Commission,
860860 a person asserting or cla iming the exemption
861861 authorized by this p aragraph shall provide a
862862 statement, executed under oath, that the total sales
863863 amounts for which the exemption is appl icable have not
864864 exceeded Twenty-five Thousand Dollars ($25,000.00) per
865865
866866 Req. No. 6154 Page 18 1
867867 2
868868 3
869869 4
870870 5
871871 6
872872 7
873873 8
874874 9
875875 10
876876 11
877877 12
878878 13
879879 14
880880 15
881881 16
882882 17
883883 18
884884 19
885885 20
886886 21
887887 22
888888 23
889889 24
890890
891891 year per living disabled vet eran or One Ten Thousand
892892 Dollars ($1,000.00) ($10,000.00) per year for an
893893 unremarried surviving spouse. If the amount of such
894894 exempt sales exceeds such amount, the sales tax in
895895 excess of the authorized amount shall be treated as a
896896 direct sales tax liability and may be rec overed by the
897897 Tax Commission in the same manner provided by law for
898898 other taxes including penalty and interest. The Tax
899899 Commission shall promulgate any rule s necessary to
900900 implement the provisions of this paragraph, which
901901 shall include rules providing for the disclosure of
902902 information about pers ons eligible for the exemption
903903 authorized in this paragraph to the Oklahoma
904904 Department of Veteran's Veterans Affairs, as
905905 authorized in Section 205 of this title;
906906 35. Sales of electricity to the operator, specifically
907907 designated by the Corporation Commission, of a spacing unit or lease
908908 from which oil is produced or attempted to be produced using
909909 enhanced recovery methods including, but not limited to, increased
910910 pressure in a producing formation through the use of water or
911911 saltwater if the electrical usage is associa ted with and necessary
912912 for the operation of equipment required to inject or circulate
913913 fluids in a producing fo rmation for the purpose of forcing oil or
914914 petroleum into a wellbore for eventual recovery and production f rom
915915
916916 Req. No. 6154 Page 19 1
917917 2
918918 3
919919 4
920920 5
921921 6
922922 7
923923 8
924924 9
925925 10
926926 11
927927 12
928928 13
929929 14
930930 15
931931 16
932932 17
933933 18
934934 19
935935 20
936936 21
937937 22
938938 23
939939 24
940940
941941 the wellhead. In order to be eligib le for the sales tax exempti on
942942 authorized by this paragraph, the total content of oil recovered
943943 after the use of enhanced recovery methods shall not exceed one
944944 percent (1%) by volume. The exemption authorized by thi s paragraph
945945 shall be applicable only to the state sales tax rate and shall not
946946 be applicable to any county or municipal sales tax rate;
947947 36. Sales of intrastate charter and tour bus transportation.
948948 As used in this paragraph, "intrastate charter and tour b us
949949 transportation" means the transportat ion of persons from one
950950 location in this state to another location in this state in a motor
951951 vehicle which has been constructed in such a manner that it may
952952 lawfully carry more than eighteen persons, and which is ordi narily
953953 used or rented to carry persons f or compensation. Provid ed, this
954954 exemption shall not apply to regularly scheduled bus transportation
955955 for the general public;
956956 37. Sales of vitamins, minerals, and dietary supplements by a
957957 licensed chiropractor to a p erson who is the patient of such
958958 chiropractor at the physical loc ation where the chiropractor
959959 provides chiropractic care or services to such patient. The
960960 provisions of this paragraph shall not be applicable to any drug,
961961 medicine, or substance for which a prescription by a licensed
962962 physician is required;
963963 38. Sales of goods, wares, merchandise, tangible personal
964964 property, machinery, and equipment to a w eb search portal located in
965965
966966 Req. No. 6154 Page 20 1
967967 2
968968 3
969969 4
970970 5
971971 6
972972 7
973973 8
974974 9
975975 10
976976 11
977977 12
978978 13
979979 14
980980 15
981981 16
982982 17
983983 18
984984 19
985985 20
986986 21
987987 22
988988 23
989989 24
990990
991991 this state which derives at least eighty percent (80%) of its annual
992992 gross revenue from the sale of a product or servi ce to an out-of-
993993 state buyer or consumer. For purposes of this paragraph, "web
994994 search portal" means an establishment classified under NAICS code
995995 519130 which operates websites that use a search engine to generate
996996 and maintain extensive databases of Interne t addresses and content
997997 in an easily searchable format;
998998 39. Sales of tangible personal property consumed or
999999 incorporated in the construction or expansion of a facility for a
10001000 corporation organized under Section 437 et seq. of Title 18 of the
10011001 Oklahoma Statutes as a rural electric coo perative. For purposes of
10021002 this paragraph, sales made to a contractor or subcontrac tor that has
10031003 previously entered into a contractual relationship with a rural
10041004 electric cooperative for cons truction or expansion of a facility
10051005 shall be considered sales made to a rural electric cooperative;
10061006 40. Sales of tangible personal property or servic es to a
10071007 business primarily engaged in the repair of consumer electronic
10081008 goods including, but not limited t o, cell phones, compact disc
10091009 players, personal computers, MP3 pla yers, digital devices for the
10101010 storage and retrieval of information through hard-wired or wireless
10111011 computer or Internet connections, if the devices are sold to the
10121012 business by the original man ufacturer of such devices and the
10131013 devices are repaired, refitted or refurbished for sale by the entity
10141014 qualifying for the exemption authorized by this paragraph directly
10151015
10161016 Req. No. 6154 Page 21 1
10171017 2
10181018 3
10191019 4
10201020 5
10211021 6
10221022 7
10231023 8
10241024 9
10251025 10
10261026 11
10271027 12
10281028 13
10291029 14
10301030 15
10311031 16
10321032 17
10331033 18
10341034 19
10351035 20
10361036 21
10371037 22
10381038 23
10391039 24
10401040
10411041 to retail consumers or if the devices are sold to another business
10421042 entity for sale to retail consumers;
10431043 41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
10441044 or leases of rolling stock when sold or leased by the manufacturer,
10451045 regardless of whether the purchaser is a public services corporation
10461046 engaged in business as a common carri er of property or passengers by
10471047 railway, for use or consumption by a common carrier directly in the
10481048 rendition of public service. For purposes of this paragraph,
10491049 "rolling stock" means locomotives, autocars, and railroad cars and
10501050 "sales or leases" includes railroad car maintenance and retrofittin g
10511051 of railroad cars for th eir further use only on the railways; and
10521052 42. Sales of gold, silver, platinum, palla dium or other bullion
10531053 items such as coins and bars and legal tender of any nation, which
10541054 legal tender is sold according to its value as precious m etal or as
10551055 an investment. As used in the paragraph, "bullion" means any
10561056 precious metal including, but not limited to, gold, silver,
10571057 platinum, and palladium, that is in such a state or condition that
10581058 its value depends upon its precious metal content and no t its form.
10591059 The exemption authorized by this paragraph shall not apply to
10601060 fabricated metals that have been pr ocessed or manufactured for
10611061 artistic use or as jewelry.
10621062 SECTION 2. This act shall become effective July 1, 2023.
10631063 SECTION 3. It being immediately necessary for the preservation
10641064 of the public peace, health or safety, an emergency is hereby
10651065
10661066 Req. No. 6154 Page 22 1
10671067 2
10681068 3
10691069 4
10701070 5
10711071 6
10721072 7
10731073 8
10741074 9
10751075 10
10761076 11
10771077 12
10781078 13
10791079 14
10801080 15
10811081 16
10821082 17
10831083 18
10841084 19
10851085 20
10861086 21
10871087 22
10881088 23
10891089 24
10901090
10911091 declared to exist, by reason whe reof this act shall take effect and
10921092 be in full force from and after its passage and approval.
10931093
10941094 59-1-6154 MAH 01/18/23