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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 3308 By: Fugate
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 2105, as amended by Section 1,
Chapter 71, O.S.L. 2023 (68 O.S. S upp. 2023, Section
2105), which relates to vehicle excise tax; modifyin g
language to include married or widowed spouse of the
veteran; providing effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 21 05, as
amended by Section 1, Chapter 71, O.S.L. 2023 (68 O.S. Supp. 2023,
Section 2105), is amended to read as follows:
Section 2105. An original or a transfer certificate of title
shall be issued without the payment of the excise tax le vied by
Section 2101 et seq. of this title for:
1. Any vehicle owned by a nonresident person who operates
principally in some other state but who is in Oklahoma only
occasionally;
2. Any vehicle brought into this state by a person formerly
living in another state, who has owned and registered the vehicle in
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such other state of residence at least sixty (60) days prior to the
time it is required to be registered in this state; p rovided,
however, this paragraph shall not apply to businesses engaged in
renting cars without a driver;
3. Any vehicle registered by this state, by any of the
political subdivisions thereof, or by a fire department organized
pursuant to Section 592 of Title 18 of the Oklahoma Stat utes to be
used for the purposes of the fire department, or a vehicle which is
the subject of a lease or lease-purchase agreement executed between
the person seeking an original or transfer certificate of t itle for
the vehicle and a municipality, county, s chool district, or fire
protection district. The person seeking an original or transfer
certificate of title shall provide adequate proof that th e vehicle
is subject to a lease or lease-purchase agreement with a
municipality, county, school district, or f ire protection district
at the time the exci se tax levied would otherwise be payable.
Service Oklahoma shall have the authority to de termine what
constitutes adequate proof as required by this section;
4. Any vehicle, the legal ownership of which is obta ined by the
applicant for a certi ficate of title by inheritance. For the
purposes of this section, "inheritance" means any transfer from a
deceased individual to the direct successor in interest of the
decedent without consideration, whether through proba te,
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administration, inter vivos t rust, transfer-on-death designation, or
joint ownership;
5. Any used motor vehicle, travel trailer, or commercial
trailer which is owned an d being offered for sale by a person
licensed as a dealer to sell the same, under t he provisions of the
Oklahoma Vehicle License and Registration Act:
a. if such vehicle, travel trailer, or commercial trailer
has been registered in Oklahoma and the excise tax
paid thereon, or
b. when such vehicle, travel trailer, or commercial
trailer has been registered in some other s tate but is
not the latest manufactured model.
Provided, the provisions of this paragraph shall not b e
construed as allowing an exemption to any person not licensed as a
dealer of used motor vehicles, travel trailers, or co mmercial
trailers, or as an autom otive dismantler and parts recycler in this
state;
6. Any vehicle which was purchased by a person li censed to sell
new or used motor vehic les in another state if:
a. such vehicle is not purchased for operation or resale
in this state, and
b. the state from which the dealer is licensed offers
reciprocal privileges to a dealer licensed in this
state, pursuant to a reciprocal agreement between the
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duly authorized agent of Service Oklahoma and the
licensing state;
7. Any vehicle, the ownership of which w as obtained by the
lienholder or mortgagee under or by foreclosure of a lien or
mortgage in the manner provided by law or to the insurer under
subrogated rights arising by reaso n of loss under an insurance
contract;
8. Any vehicle which is taxed on an ad valorem basis;
9. Any vehicle or motor vehicle, the legal ownership of which
is obtained by transfers:
a. from one corporation to another corporation pursuant
to a reorganization. As used in this subparagraph,
the term "reorganization" means:
(1) a statutory merger or consolidation, or
(2) the acquisition by a corporation of substantially
all of the properties of another corporation when
the consideration is solely all or a part o f the
voting stock of the acquiring corporation, or of
its parent or subsidiary corporation,
b. in connection with the winding up, dissolution, or
liquidation of a corporation only when there is a
distribution in kind to the shareholders of the
property of such corporation,
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c. to a corporation where the former owners of the
vehicle or motor vehicle transferred are, immediately
after the transfer, in control of the corporation, and
the stock or securities received by eac h is
substantially in proportion to th e interest in the
vehicle or motor vehicle prior to the transfer,
d. to a partnership if the former owners of the vehicle
or motor vehicle transferred are, immediately after
the transfer, members of such partnership an d the
interest in the partnership rece ived by each is
substantially in proportion to t he interest in the
vehicle or motor vehicle prior to the transfer,
e. from a partnership to the members thereof when made in
the dissolution of such partnership,
f. to a limited liability company if the forme r owners of
the vehicle or motor vehicle transfe rred are,
immediately after the transfer, members of the limited
liability company and the interest in the limited
liability company received by each is substantially in
proportion to the interest in the vehi cle or motor
vehicle prior to the transfer, or
g. from a limited liability company to the members
thereof when made in the dissolution of such
partnership;
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10. Any vehicle which is purchased by a person to be used by a
business engaged in renting motor ve hicles without a driver,
provided:
a. the vehicle shall not be rented to the same person for
a period exceeding ninety (90) days,
b. any such vehicle exempted from the excise tax by these
provisions shall not be placed under any type of lease
agreement,
c. on any such vehicle exempted from the excise ta x by
this paragraph that is reregistered in this state,
without a prior sale or transfer to the persons
specified in divisions (1) and (2) of this
subparagraph, at any time prior to the expiration of
twelve (12) months from the date of issuance of the
original title, the seller shall pay immediately the
amount of excise tax which would have been due had
this exemption not been granted plus a penalty of
twenty percent (20%). No such excise tax or penalty
shall become due and payable if the vehicle is sold o r
transferred in a condition either physical or
mechanical which would render it eligible for a
salvage title pursuant to law or if the vehicle is
sold and transferred in this state at any time prior
to the expiration of twelve (12) months:
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(1) to the manufacturer of the vehicle or its
controlled financing arm, or
(2) to a factory authorized franchised new motor
vehicle dealer which holds a franchise of the
same line-make of the vehicle being purchased, or
d. when this exemption is claimed, Service Oklahoma shall
issue a special title which shall restrict the
transfer of the title only within this state prior to
the expiration of twelve (12) months unless:
(1) payment of the excise tax plus penalty as
provided in this section is made,
(2) the sale is made to a person specified in
division (1) or (2) of subparag raph c of this
paragraph, or
(3) the vehicle is eligible for a salvage title.
For all other tax purposes vehicles her ein exempted shall be
treated as though the excise tax has been paid;
11. Any vehicle of the latest manufactured model, registered
from a title in the name of the original manufacturer or assigned to
the original manufacturer and issued by any state and t ransferred to
a licensed, franchis ed Oklahoma motor vehicle dealer, as defined by
Section 1102 of Title 47 of the Oklahoma Statutes, which holds a
franchise of the same line-make as the vehicle being registered;
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12. Any new motor vehicle, registered in th e name of a
manufacturer or dealer of new motor vehicles, for which a license
plate has been issued pursuant to Section 1116.1 of Title 47 of the
Oklahoma Statutes, if such vehicle is authorized by the manufacturer
or dealer for personal use by an individu al. The authorization for
such use shall not exceed four (4) months which shall not be renewed
or the exemption provided by this paragraph shall not be applicable.
The exemption provided by this paragraph shall not be applicable to
a transfer of owners hip or registration subsequent to the first
registration of the vehicle by a manufacturer or dealer;
13. Any vehicle, travel trailer, or commercial trailer of the
latest manufacturer model purchased by a franchised Oklahoma dealer
licensed to sell the sam e which holds a franchise of the s ame line-
make as the vehicle, travel trailer, or commercial trailer being
registered;
14. Any vehicle which is the subject of a lease or lease-
purchase agreement and which the ownership of such vehicle is being
obtained by the lessee, if the vehicle excis e tax was paid at the
time of the initial lease or lease-purchase agreement;
15. Any vehicle which:
a. is purchased by a private, nonprofit organization
which is exempt from taxation pursuant to the
provisions of Section 501(c)(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and which
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is primarily funded by a fraternal or civic service
organization with at least one hundred local chapters
or clubs, and
b. is designed and used to provide mobile health
screening services to the general public at no cost to
the recipient, and for which no reimbursement of any
kind is received from any health ins urance provider,
health maintenance organization, or governmental
program;
16. a. Any vehicle which is purchased by an in dividual who
has been honorably di scharged from active service in
any branch of the Armed Forces of the United States or
Oklahoma National Guard and who has been certified by
the United States Department of Veterans Affairs, its
successor, or the Armed For ces of the United States to
be a disabled veteran in receipt of compensation at
the one-hundred-percent rate for a permanent
disability sustained through military action or
accident resulting from disease contracted while in
such active service and registe red with the veterans
registry created by the Oklahoma Department of
Veterans Affairs; provided, that if the veteran has
previously received exemption pursuant to this
paragraph, no registration with the veterans registry
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shall be required. This exemption may not be claimed
by an individual, for more than one vehicle in a
consecutive three-year period, unless the vehicle is a
replacement for a vehicle which was destroyed and
declared by the insurer to be a total loss claim.
Service Oklahoma shall promulgate any rules necessary
to implement the provisions of this section.
b. In order to implement the provisions of subparagraph a
of this paragraph, if the individual is incapacitated
and is either mentally or physically unable to
transfer title where it could be held joi ntly and if
the Oklahoma Tax Commission will not accept power of
attorney, or if the individual's spouse does not have
power of attorney, then the spouse of the disabled
veteran can fill out a form containing a statement
under oath that the spouse will be using the vehicle
primarily for the benefit of the individual and if the
form is signed according to the requirements of this
section, the exemption shall be applicable to the
transaction; or
17. Any vehicle on which o wnership is transferred by a
repossessor directly back to the ow ner or owners from whom the
vehicle was repossessed; provided, ownership shall be assigned by
the repossessor within thirty (30) days of issuance of the
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repossession title and shall be identic al to that reflected in the
vehicle title record immediately pri or to the repossession.
SECTION 2. This act shall beco me effective July 1, 2024.
SECTION 3. It being immediately necessary for t he preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effec t and
be in full force from and after its passage and approval.
59-2-9613 AO 01/09/24