Req. No. 8631 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 3031 By: Maynard
AS INTRODUCED
An Act relating to revenue and taxation ; amending 68
O.S. 2021, Section 500.10 ; which relates to
exemptions from motor fuel tax; providing exemption
for Oklahoma ambulance districts; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 500.10, is
amended to read as follows:
Section 500.10 Subject to the procedura l requirements and
conditions set out in this section and Sections 500.11 through
500.17 of this title, the following are exempt from the taxes on
motor fuel imposed by Section 500.4 of this title and Section 6
500.4b of Enrolled House Bill No. 1010 of the 2nd Ex traordinary
Session of the 56th Oklahoma Legislature this title:
1. Motor fuel for which proof of export is available in the
form of a terminal-issued destination state shipping paper:
Req. No. 8631 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
a. exported by a supplier who is licensed in the
destination state, or
b. sold by a supplier to a licensed exporter for
immediate export;
2. Motor fuel which was acquired by an unlicensed exporter and
as to which the tax imposed by Section 500.4 of this title has
previously been paid or accrued and was subsequently exported by
transport truck by or on behalf of the licensed exporter in a
diversion across state boundaries properly reported in conformity
with Section 500.46 of this title;
3. Motor fuel exported out o f a bulk plant in this state in a
tank wagon if the destination of that vehicle does not exceed
twenty-five (25) miles from the border of this state and as to which
the tax imposed by Section 500.4 of this title has previously been
paid or accrued, subject to gallonage limits and other conditions
established by the Oklahoma T ax Commission;
4. K-1 kerosene sold at retail through dispensers which have
been designed and constructed to prevent delivery directly from the
dispenser into a vehicle fuel supply tan k, and K-1 kerosene sold at
retail through nonbarricaded dispensers in quantities of not more
than twenty-one (21) gallons for use other than for highway
purposes, under such rules as the Tax Commission shall reasonably
require;
Req. No. 8631 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
5. Motor fuel sold to the United States or any agency or
instrumentality thereof;
6. Motor fuel used solely and exclusively in district-owned
public school vehicles or FFA and 4 -H Club trucks for the purpose of
legally transporting public school children, and motor fuel
purchased by any school district for use exclusively in school buses
leased or hired for the purpose of legally transporting public
school children, or in the operation of vehicles used in driver
training;
7. Motor fuel used solely and exclusively as fuel to propel
motor vehicles on the public roads and highways of this state, when
leased or owned and being operated for the sole benefit of a county,
city, town, a volunteer fire department with a state certification
and rating, rural electric cooperatives, rural wate r and sewer
districts, rural irrigation districts organized under the O klahoma
Irrigation District Act, conservancy districts and master
conservancy districts organized under the Conservancy Act of
Oklahoma, rural ambulance service districts, ambulance districts
established under Section 9C of Article X of the Oklahoma
Constitution, or federally recognized Indian tribes;
8. Motor fuel used as fuel for farm tractors or stationary
engines owned or leased and operated by any person and used
exclusively for agricultural p urposes, except as to two and eight
Req. No. 8631 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
one-hundredths cents ($0.0208) per gallon of gasoline as provided in
subsection C of Section 500.4 of this title;
9. Gasoline, diesel fuel and kerosene sold for use as fuel to
generate power in aircraft engines, whether in aircraft or for
training, testing or research purposes of aircraft engines, except
as to eight one-hundredths of one cent ($0.0008) per gallon as
provided in subsection B of Section 500.4 of this title;
10. Motor fuel sold within an Indian reservation or within
Indian country by a federally recognized Indian tribe to a member of
that tribe and used in motor vehicles owned by that member of the
tribe. This exemption does not apply to sales within an Indian
reservation or within Indian country by a fede rally recognized
Indian tribe to non-Indian consumers or to Indian consumers who are
not members of the tribe selling the motor fuel;
11. Subject to determination by the Tax Commission, that
portion of diesel fuel:
a. used to operate equipment attached to a motor vehicle,
if the diesel fuel was placed into the fu el supply
tank of a motor vehicle that has a common fuel
reservoir for travel on a highway and for the
operation of equipment, or
b. consumed by the vehicle while the vehicle is parked
off the highways of this state;
Req. No. 8631 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
12. Motor fuel acquired by a consumer out of state and carried
into this state, retained within and consumed from the same vehicle
fuel supply tank within which it was imported;
13. Diesel fuel used as heating oil, or in railroad loco motives
or any other motorized flanged -wheel rail equipment , or used for
other nonhighway purposes other than as expressly exempted under
another provision;
14. Motor fuel which was lost or destroyed as a direct result
of a sudden and unexpected casualty;
15. Taxable diesel which had been accidentally contaminat ed by
dye so as to be unsaleable as highway fuel as proved by proper
documentation;
16. Dyed diesel fuel;
17. Motor fuel sold to the Oklahoma Space Industry Development
Authority or any spaceport user as defined in the Oklahoma Space
Industry Development Act; and
18. Biofuels or biodiesel produced by an individual with crops
grown on property owned by the same individual and used in a vehicle
owned by the same individual on the public roads and h ighways of
this state.
SECTION 2. This act shall become effective November 1, 2024.
59-2-8631 AO 12/04/23