Oklahoma 2024 Regular Session

Oklahoma House Bill HB3912 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3912 Page 1 1
	3	+	HB3912 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3912 By: Caldwell (Chad), Menz,
30		-	Boles, and Burns of the
31		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	2nd Session of the 59th Legislature (2024)
	34	+
	35	+	HOUSE BILL 3912 By: Caldwell (Chad), Menz, and
	36	+	Boles of the House
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33	38		and
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35	40		Seifried of the Senate
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37	42
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	44	+
	45	+	AS INTRODUCED
39	46
40	47		[ revenue and taxation - sales tax exemption for the
41	48		sale of hearing aids - effective date -
42	49		emergency ]
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47	54		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
48	55		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
49	56		last amended by Section 1, Chapter 344, O.S .L. 2023 (68 O.S. Supp.
50	57		2023, Section 1357), is amended to read as follows:
51	58		Section 1357. Exemptions – General.
52	59
53	60		There are hereby specifically exempted fr om the tax levied by
54	61		the Oklahoma Sales Tax Code:
55	62		1. Transportation of school pupi ls to and from elementary
56	63		schools or high schools in motor or other vehicles;
57		-	2. Transportation of persons where the fare of each person does
58		-	not exceed One Dollar ($1.00), or local transportatio n of persons
59		-	within the corporate limits of a municipality e xcept by taxicabs;
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61		-	ENGR. H. B. NO. 3912 Page 2 1
	65	+	HB3912 HFLR Page 2
	66	+	BOLD FACE denotes Committee Amendments. 1
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	91	+	2. Transportation of persons where the fare of each person does
	92	+	not exceed One Dollar ($1.00), or local transportatio n of persons
	93	+	within the corporate limits of a municipality e xcept by taxicabs;
86	94		3. Sales for resale to persons engaged in the business of
87	95		reselling the articles purchased, whether within or without the
88	96		state, provided that such sales to residents of this s tate are made
89	97		to persons to whom sales tax permits have been issued as provided in
90	98		the Oklahoma Sales Tax Code. This exemption shall not apply to the
91	99		sales of articles made to persons holding permits when such persons
92	100		purchase items for their use and whic h they are not regularly
93	101		engaged in the business of resellin g; neither shall this exemption
94	102		apply to sales of tangible personal property to peddlers, solicitors
95	103		and other salespersons who do not have an established place of
96	104		business and a sales tax permit . The exemption provided by this
97	105		paragraph shall apply to sa les of motor fuel or diesel fuel to a
98	106		Group Five vendor, but the use of such motor fuel or diesel fuel by
99	107		the Group Five vendor shall not be exempt from the tax levied by th e
100	108		Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
101	109		is exempt from sales tax when the motor fuel is for shipment outside
102	110		this state and consumed by a common carrier by rail in the conduct
103	111		of its business. The sales tax shall apply to the purchase of motor
104	112		fuel or diesel fuel in Oklahoma by a common carrier by rail when
105	113		such motor fuel is purchased for fueling, within this state, of any
106	114		locomotive or other motorized flanged wheel equipment;
107		-	4. Sales of advertising space in newspapers and periodicals;
108		-	5. Sales of programs relating to sporting and entertainment
109		-	events, and sales of advertising on billboards (including signage,
110	115
111		-	ENGR. H. B. NO. 3912 Page 3 1
	116	+	HB3912 HFLR Page 3
	117	+	BOLD FACE denotes Committee Amendments. 1
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	142	+	4. Sales of advertising space in newspapers and periodicals;
	143	+	5. Sales of programs relating to sporting and entertainment
	144	+	events, and sales of advertising on billboards (including signage,
136	145		posters, panels, marquees or on other similar surfaces, whether
137	146		indoors or outdoors) or in programs relating to spo rting and
138	147		entertainment events, and sales of any advertising, to be displayed
139	148		at or in connection with a sporting event, via the Internet,
140	149		electronic display devices or through public address or broadcast
141	150		systems. The exemption authorized by this paragrap h shall be
142	151		effective for all sales made on or after January 1, 2001;
143	152		6. Sales of any advertising, other than the advertising
144	153		described by paragraph 5 of this section, via the Internet,
145	154		electronic display devices or through the electronic media including
146	155		radio, public address o r broadcast systems, television (whether
147	156		through closed circuit broadcasting systems or otherwise), and cable
148	157		and satellite television, and the servicing of any advertising
149	158		devices;
150	159		7. Eggs, feed, supplies, machinery , and equipment purchased by
151	160		persons regularly engaged in the business of raising worms, fish,
152	161		any insect, or any other form of terrestrial or aquatic animal life
153	162		and used for the purpose of raising same for marketing. This
154	163		exemption shall only be granted and extended to the purchaser when
155	164		the items are to be used and in fact are used in the raising of
156	165		animal life as set out above. Each purchaser shall certify, in
157		-	writing, on the invoice or sales ticket retained by the vendor that
158		-	the purchaser is regularly engaged in th e business of raising s uch
159		-	animal life and that the items purchased will be used on ly in such
160	166
161		-	ENGR. H. B. NO. 3912 Page 4 1
	167	+	HB3912 HFLR Page 4
	168	+	BOLD FACE denotes Committee Amendments. 1
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	193	+	writing, on the invoice or sales ticket retained by the vendor that
	194	+	the purchaser is regularly engaged in th e business of raising s uch
	195	+	animal life and that the items purchased will be used on ly in such
186	196		business. The vendor shall certify to the Oklahoma Tax Commission
187	197		that the price of the items has been reduced to grant the full
188	198		benefit of the exemption . Violation hereof by the purc haser or
189	199		vendor shall be a misdemeanor;
190	200		8. Sale of natural or artificial gas and electricity, and
191	201		associated delivery or transmission services, when sold exclusively
192	202		for residential use. Provided, this exemption shall not apply to
193	203		any sales tax levied by a city or town, or a county or any other
194	204		jurisdiction in this state;
195	205		9. In addition to the exemptions authorized by Section 1357.6
196	206		of this title, sales of drugs sold pursuant to a prescription
197	207		written for the treatment of human bei ngs by a person license d to
198	208		prescribe the drugs, and sales of insulin and medical oxygen.
199	209		Provided, this exemption shall not apply to over-the-counter drugs;
200	210		10. Transfers of title or possession of empty, partially
201	211		filled, or filled returnable oil and ch emical drums to any per son
202	212		who is not regularly engaged in the business of sellin g, reselling
203	213		or otherwise transferring empty, partially filled or filled
204	214		returnable oil drums;
205		-	11. Sales of one-way utensils, paper napkins, paper cups,
206		-	disposable hot contai ners, and other one-way carry out materials to
207		-	a vendor of meals or beverages;
208		-	12. Sales of food or food products for home consumption which
209		-	are purchased in whole or in part with coupons issued pursuant to
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211		-	ENGR. H. B. NO. 3912 Page 5 1
	216	+	HB3912 HFLR Page 5
	217	+	BOLD FACE denotes Committee Amendments. 1
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	242	+	11. Sales of one-way utensils, paper napkins, paper cups,
	243	+	disposable hot contai ners, and other one-way carry out materials to
	244	+	a vendor of meals or beverages;
	245	+	12. Sales of food or food products for home consumption which
	246	+	are purchased in whole or in part with coupons issued pursuant to
236	247		the federal food stamp program as authorized by Sections 2011
237	248		through 2029 of Title 7 of the United States Code, as to that
238	249		portion purchased with such coupons. The exemption provided for
239	250		such sales shall be inapplicable to such sales upon the effective
240	251		date of any federal law that removes the requirem ent of the
241	252		exemption as a condition for participation by the state in the
242	253		federal food stamp program;
243	254		13. Sales of food or food products, or any equipment or
244	255		supplies used in the preparation of the food or food products to or
245	256		by an organization which:
246	257		a. is exempt from taxation pursuant to the provisions of
247	258		Section 501(c)(3) of the Internal Revenue Code, 26
248	259		U.S.C., Section 501(c)(3), and which provides and
249	260		delivers prepared meals for home consumption to
250	261		elderly or homebound persons as part of a program
251	262		commonly known as "Meals on Wheels" or "Mobile Meals",
252	263		or
253	264		b. is exempt from taxation pursuant to the provisions of
254	265		Section 501(c)(3) of the Internal Revenue Code, 26
255		-	U.S.C., Section 501(c)(3), and which receives federal
256		-	funding pursuant to the Older Americans Act of 1965,
257		-	as amended, for the purpose of providing nutrition
258		-	programs for the care and benefit of elderly persons;
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260		-	ENGR. H. B. NO. 3912 Page 6 1
	267	+	HB3912 HFLR Page 6
	268	+	BOLD FACE denotes Committee Amendments. 1
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	293	+	U.S.C., Section 501(c)(3), and which receives federal
	294	+	funding pursuant to the Older Americans Act of 1965,
	295	+	as amended, for the purpose of providing nutrition
	296	+	programs for the care and benefit of elderly persons;
285	297		14. a. Sales of tangible personal property or services to or
286	298		by organizations which are exempt from taxation
287	299		pursuant to the provisions o f Section 501(c)(3) of the
288	300		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
289	301		and:
290	302		(1) are primarily involved in the collection and
291	303		distribution of food and other household products
292	304		to other organizations that facilitate the
293	305		distribution of such products to the needy and
294	306		such distributee organizations are exempt from
295	307		taxation pursuant to the provisions of Section
296	308		501(c)(3) of the Internal Revenue Code, 26
297	309		U.S.C., Section 501(c)(3), or
298	310		(2) facilitate the distribution of such products to
299	311		the needy.
300	312		b. Sales made in the course of business for profit or
301	313		savings, competing with other persons engaged in the
302	314		same or similar business shall not be exempt under
303	315		this paragraph;
304		-	15. Sales of tangible personal property or services to
305		-	children's homes which are located on church-owned property and are
306		-	operated by organizations exempt from taxation pursuant to the
307		-	provisions of the Internal Revenue Code, 26 U.S.C., Section
308		-	501(c)(3);
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310		-	ENGR. H. B. NO. 3912 Page 7 1
	317	+	HB3912 HFLR Page 7
	318	+	BOLD FACE denotes Committee Amendments. 1
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	343	+	15. Sales of tangible personal property or services to
	344	+	children's homes which are located on church-owned property and are
	345	+	operated by organizations exempt from taxation pursuant to the
	346	+	provisions of the Internal Revenue Code, 26 U.S.C., Section
	347	+	501(c)(3);
335	348		16. Sales of computers, data processing equipment, related
336	349		peripherals, and telephone, telegraph or telecommun ications service
337	350		and equipment for use in a qualified aircraft maintenance or
338	351		manufacturing facility. For purposes of this paragraph, "qualified
339	352		aircraft maintenance or manufacturing facility" means a new or
340	353		expanding facility prima rily engaged in aircraf t repair, building or
341	354		rebuilding whether or not on a factory basis, whose total cost of
342	355		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
343	356		and which employs at least two hundred fifty (250) new full -time-
344	357		equivalent employees, as certified by the Oklahoma Employment
345	358		Security Commission, upon completion of the facility. In order to
346	359		qualify for the exemption provided for by this paragraph, the cost
347	360		of the items purchased by the qualified aircraft maintenance or
348	361		manufacturing facility shall e qual or exceed the sum of Two Million
349	362		Dollars ($2,000,000.00);
350	363		17. Sales of tangible personal property consumed or
351	364		incorporated in the construction or expansion of a qualified
352	365		aircraft maintenance or manufacturing facility as define d in
353	366		paragraph 16 of this section. For purposes of this paragraph, sales
354		-	made to a contractor or subcontractor that has previously entered
355		-	into a contractual relationship with a qualified aircraft
356		-	maintenance or manufacturing facility for construction or expansion
357		-	of such a facility shall be considered sales made to a qualified
358		-	aircraft maintenance or manufacturing facility;
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360		-	ENGR. H. B. NO. 3912 Page 8 1
	368	+	HB3912 HFLR Page 8
	369	+	BOLD FACE denotes Committee Amendments. 1
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	394	+	made to a contractor or subcontractor that has previously entered
	395	+	into a contractual relationship with a qualified aircraft
	396	+	maintenance or manufacturing facility for construction or expansion
	397	+	of such a facility shall be considered sales made to a qualified
	398	+	aircraft maintenance or manufacturing facility;
385	399		18. Sales of the following telecommunications services:
386	400		a. Interstate and International "800 service". "800
387	401		service" means a "telecommunications service " that
388	402		allows a caller to dial a toll-free number without
389	403		incurring a charge for the call. The service is
390	404		typically marketed under the name "800", "855", "866",
391	405		"877" and "888" toll-free calling, and any subsequent
392	406		numbers designated by the Federal Communic ations
393	407		Commission,
394	408		b. Interstate and International "900 service". "900
395	409		service" means an inbound toll "telecommunications
396	410		service" purchased by a subscriber that allows the
397	411		subscriber's customers to call in to the subscriber 's
398	412		prerecorded announcement or live service. "900
399	413		service" does not include the charge for: collection
400	414		services provided by the seller of the
401	415		"telecommunications services" to the subscriber, or
402	416		service or product sold by the subscriber to the
403	417		subscriber's customer. The service is typically
404		-	marketed under the name "900" service, and any
405		-	subsequent numbers designated by the Federal
406		-	Communications Commission,
407		-	c. Interstate and International "private communications
408		-	service". "Private communications service " means a
409	418
410		-	ENGR. H. B. NO. 3912 Page 9 1
	419	+	HB3912 HFLR Page 9
	420	+	BOLD FACE denotes Committee Amendments. 1
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	445	+	marketed under the name "900" service, and any
	446	+	subsequent numbers designated by the Federal
	447	+	Communications Commission,
	448	+	c. Interstate and International "private communications
	449	+	service". "Private communications service " means a
435	450		"telecommunications service" that entitles the
436	451		customer to exclusive or priority use of a
437	452		communications channel or group of channels between or
438	453		among termination points, regardless of the manner in
439	454		which such channel or channels are connected, and
440	455		includes switching capacity , extension lines, stations
441	456		and any other associated services that are provided in
442	457		connection with the use of such channel or channels,
443	458		d. "Value-added nonvoice data service". "Value-added
444	459		nonvoice data service " means a service that otherwise
445	460		meets the definition of "telecommunications services"
446	461		in which computer processing applications are used to
447	462		act on the form, content, code or protocol of the
448	463		information or data primarily for a purpose other than
449	464		transmission, conveyance , or routing,
450	465		e. Interstate and International telecommunications
451	466		service which is:
452	467		(1) rendered by a company for private use within its
453	468		organization, or
454		-	(2) used, allocated or distributed by a company to
455		-	its affiliated group,
456		-	f. Regulatory assessments and charges including charges
457		-	to fund the Oklahoma Universal Service Fund, the
458	469
459		-	ENGR. H. B. NO. 3912 Page 10 1
	470	+	HB3912 HFLR Page 10
	471	+	BOLD FACE denotes Committee Amendments. 1
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	496	+	(2) used, allocated or distributed by a company to
	497	+	its affiliated group,
	498	+	f. Regulatory assessments and charges including charges
	499	+	to fund the Oklahoma Universal Service Fund, the
484	500		Oklahoma Lifeline Fund and the Oklahoma High Cost
485	501		Fund, and
486	502		g. Telecommunications nonrecurring charges including but
487	503		not limited to the installation, connection, change ,
488	504		or initiation of telecommunications se rvices which are
489	505		not associated with a retail consumer sale;
490	506		19. Sales of railroad track spikes manufactured and sold for
491	507		use in this state in the construction or repair of railroad tracks,
492	508		switches, sidings, and turnouts;
493	509		20. Sales of aircraft and aircraft parts provided such sales
494	510		occur at a qualified aircraft ma intenance facility. As used in this
495	511		paragraph, "qualified aircraft maintenance facility" means a
496	512		facility operated by an air common carrier including one or more
497	513		component overhaul support buildings or structures in an area owned,
498	514		leased, or controlled by the air common carrier, at which there were
499	515		employed at least two thousand (2,000) full-time-equivalent
500	516		employees in the preceding year as certified by the Oklahoma
501	517		Employment Security Commission and which is primarily related to the
502	518		fabrication, repair, alteration, modification, refurbishing,
503	519		maintenance, building, or rebuilding of commercial aircraft or
504		-	aircraft parts used in air common carriage . For purposes of this
505		-	paragraph, "air common carrier" shall also include members of an
506		-	affiliated group as d efined by Section 1504 of the Internal Revenue
507		-	Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
508	520
509		-	ENGR. H. B. NO. 3912 Page 11 1
	521	+	HB3912 HFLR Page 11
	522	+	BOLD FACE denotes Committee Amendments. 1
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	547	+	aircraft parts used in air common carriage . For purposes of this
	548	+	paragraph, "air common carrier" shall also include members of an
	549	+	affiliated group as d efined by Section 1504 of the Internal Revenue
	550	+	Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
534	551		machinery, tools, supplies, equipment , and related tangible p ersonal
535	552		property and services used or consumed in the repair, remodeling, or
536	553		maintenance of aircraft, aircraft engines or aircraft component
537	554		parts which occur at a qualified aircraft maintenance facility;
538	555		21. Sales of machinery and equipment purchased and used by
539	556		persons and establishments primarily engaged in computer services
540	557		and data processing:
541	558		a. as defined under Industrial Group Numbers 7372 and
542	559		7373 of the Standard Industrial Classification (SIC)
543	560		Manual, latest version, which derive at least fifty
544	561		percent (50%) of their annual gross revenues from the
545	562		sale of a product or service t o an out-of-state buyer
546	563		or consumer, and
547	564		b. as defined under Industrial Group Number 7374 of the
548	565		SIC Manual, latest version, which derive at least
549	566		eighty percent (80%) of th eir annual gross revenues
550	567		from the sale of a product or service to an out-of-
551	568		state buyer or consumer.
552	569		Eligibility for the exemption set out in this paragraph shall be
553	570		established, subject to review by the Tax Commission, by annually
554		-	filing an affidavit wit h the Tax Commission stating that the
555		-	facility so qualifies and such information as required by the Tax
556		-	Commission. For purposes of determining whether annual gross
557		-	revenues are derived from sales to out-of-state buyers or consumers,
558	571
559		-	ENGR. H. B. NO. 3912 Page 12 1
	572	+	HB3912 HFLR Page 12
	573	+	BOLD FACE denotes Committee Amendments. 1
560	574		2
561	575		3
562	576		4
563	577		5
564	578		6
565	579		7
566	580		8
567	581		9
568	582		10
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571	585		13
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573	587		15
574	588		16
575	589		17
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577	591		19
578	592		20
579	593		21
580	594		22
581	595		23
582	596		24
583	597
	598	+	filing an affidavit wit h the Tax Commission stating that the
	599	+	facility so qualifies and such information as required by the Tax
	600	+	Commission. For purposes of determining whether annual gross
	601	+	revenues are derived from sales to out-of-state buyers or consumers,
584	602		all sales to the fede ral government shall be considered to be to an
585	603		out-of-state buyer or consumer;
586	604		22. Sales of prosthetic devices to an individual for use by
587	605		such individual. For purposes of this paragraph, "prosthetic
588	606		device" shall have the same meaning as provided in Sec tion 1357.6 of
589	607		this title, but shall not include corrective eye glasses, contact
590	608		lenses, or hearing aids;
591	609		23. Sales of tangible personal property or services to a motion
592	610		picture or television production company to be used or consumed in
593	611		connection with an eligible production. For purposes of this
594	612		paragraph, "eligible production" means a documentary, special, music
595	613		video or a television commercial or television program that will
596	614		serve as a pilot for or be a segment of an ongoing dramatic or
597	615		situation comedy series filmed or taped for network or national or
598	616		regional syndication or a featu re-length motion picture intended for
599	617		theatrical release or for network or national or regional
600	618		syndication or broadcast. The provisions of this paragraph shall
601	619		apply to sales occurring on or after July 1, 1996. In order to
602	620		qualify for the exemption, the motion picture or television
603	621		production company shall file any documentation and information
604		-	required to be submitted pursuant to rules promulgated by the Tax
605		-	Commission;
606		-	24. Sales of diesel fuel sold for consumption by commercial
607		-	vessels, barges and oth er commercial watercraft;
608	622
609		-	ENGR. H. B. NO. 3912 Page 13 1
	623	+	HB3912 HFLR Page 13
	624	+	BOLD FACE denotes Committee Amendments. 1
610	625		2
611	626		3
612	627		4
613	628		5
614	629		6
615	630		7
616	631		8
617	632		9
618	633		10
619	634		11
620	635		12
621	636		13
622	637		14
623	638		15
624	639		16
625	640		17
626	641		18
627	642		19
628	643		20
629	644		21
630	645		22
631	646		23
632	647		24
633	648
	649	+	required to be submitted pursuant to rules promulgated by the Tax
	650	+	Commission;
	651	+	24. Sales of diesel fuel sold for consumption by commercial
	652	+	vessels, barges and oth er commercial watercraft;
634	653		25. Sales of tangible personal property or services to tax-
635	654		exempt independent nonprofit biomedical research foundations that
636	655		provide educational p rograms for Oklahoma science students and
637	656		teachers and to tax-exempt independent no nprofit community blood
638	657		banks headquartered in this state;
639	658		26. Effective May 6, 1992, sales of wireless telecommunications
640	659		equipment to a vendor who subsequently transfers the equipment at no
641	660		charge or for a discounted charge to a consumer as part of a
642	661		promotional package or as an inducement to commence or continue a
643	662		contract for wireless telecommunications services;
644	663		27. Effective January 1, 1991, leases of rail transportat ion
645	664		cars to haul coal to coal-fired plants located in this state which
646	665		generate electric power;
647	666		28. Beginning July 1, 2005, sales of aircraft engine repairs,
648	667		modification, and replacement parts, sales of aircraft frame repairs
649	668		and modification, aircraft i nterior modification, and paint, and
650	669		sales of services employed in the repair, modi fication, and
651	670		replacement of parts of aircraft engines, aircraft frame and
652	671		interior repair and modification, and paint;
653		-	29. Sales of materials and supplies to the owner or operator of
654		-	a ship, motor vessel, or barge that is used in interstate or
655		-	international commerce if the materials and supplies:
656	672
657		-	ENGR. H. B. NO. 3912 Page 14 1
	673	+	HB3912 HFLR Page 14
	674	+	BOLD FACE denotes Committee Amendments. 1
658	675		2
659	676		3
660	677		4
661	678		5
662	679		6
663	680		7
664	681		8
665	682		9
666	683		10
667	684		11
668	685		12
669	686		13
670	687		14
671	688		15
672	689		16
673	690		17
674	691		18
675	692		19
676	693		20
677	694		21
678	695		22
679	696		23
680	697		24
681	698
	699	+	29. Sales of materials and supplies to the owner or operator of
	700	+	a ship, motor vessel, or barge that is used in interstate or
	701	+	international commerce if the materials and supplies:
682	702		a. are loaded on the ship, motor vessel, or barge and
683	703		used in the maintenance and operation of the ship,
684	704		motor vessel, or barge, or
685	705		b. enter into and become component parts of the ship,
686	706		motor vessel, or barge;
687	707		30. Sales of tangible personal property made at estate sales at
688	708		which such property is offered for sale on the premises of the
689	709		former residence of the decedent by a person wh o is not required to
690	710		be licensed pursuant to the Transient Merchant Licensing A ct, or who
691	711		is not otherwise required to obtain a sales tax permit for the sale
692	712		of such property pursuant to the provisions of Section 1364 of this
693	713		title; provided:
694	714		a. such sale or event may not be held for a period
695	715		exceeding three (3) consecutive days,
696	716		b. the sale must be conducted within six (6) months of
697	717		the date of death of the decedent, and
698	718		c. the exemption allowed by this paragraph shall not be
699	719		allowed for property that was not part of the
700	720		decedent's estate;
701	721		31. Beginning January 1, 2004, sales of electricity and
702	722		associated delivery and transmission services, when sold exclusively
703		-	for use by an oil and gas operator for reservoir dewatering projects
704		-	and associated operations commencing on or after July 1, 2003, in
705		-	which the initial water-to-oil ratio is greater than or equal to
706	723
707		-	ENGR. H. B. NO. 3912 Page 15 1
	724	+	HB3912 HFLR Page 15
	725	+	BOLD FACE denotes Committee Amendments. 1
708	726		2
709	727		3
710	728		4
711	729		5
712	730		6
713	731		7
714	732		8
715	733		9
716	734		10
717	735		11
718	736		12
719	737		13
720	738		14
721	739		15
722	740		16
723	741		17
724	742		18
725	743		19
726	744		20
727	745		21
728	746		22
729	747		23
730	748		24
731	749
	750	+	for use by an oil and gas operator for reservoir dewatering projects
	751	+	and associated operations commencing on or after July 1, 2003, in
	752	+	which the initial water-to-oil ratio is greater than or equal to
732	753		five-to-one water-to-oil, and such oil and gas development projects
733	754		have been classified by the Corporation Commission as a reservoir
734	755		dewatering unit;
735	756		32. Sales of prewritten computer software that is delivered
736	757		electronically. For purposes of this paragraph, "delivered
737	758		electronically" means delivered to the purchaser by means other than
738	759		tangible storage media;
739	760		33. Sales of modular dwelling units whe n built at a production
740	761		facility and moved in whole or in parts, to be asse mbled on-site,
741	762		and permanently affixed to the real property and used for
742	763		residential or commercial purposes. The exemption provided by this
743	764		paragraph shall equal forty -five percent (45%) of the total sales
744	765		price of the modular dwelling unit. For purposes of this paragraph,
745	766		"modular dwelling unit" means a structure that is not subject to the
746	767		motor vehicle excise tax imposed pursuant to Section 2103 of this
747	768		title;
748	769		34. Sales of tangible personal property or services to:
749	770		a. persons who are residents of Okl ahoma and have been
750	771		honorably discharged from active service in any branch
751	772		of the Armed Forces of the United States or Oklahoma
752	773		National Guard and who have been certified by the
753		-	United States Department of Ve terans Affairs or its
754		-	successor to be in receipt of disability compensation
755		-	at the one-hundred-percent rate and the disability
756	774
757		-	ENGR. H. B. NO. 3912 Page 16 1
	775	+	HB3912 HFLR Page 16
	776	+	BOLD FACE denotes Committee Amendments. 1
758	777		2
759	778		3
760	779		4
761	780		5
762	781		6
763	782		7
764	783		8
765	784		9
766	785		10
767	786		11
768	787		12
769	788		13
770	789		14
771	790		15
772	791		16
773	792		17
774	793		18
775	794		19
776	795		20
777	796		21
778	797		22
779	798		23
780	799		24
781	800
	801	+	United States Department of Ve terans Affairs or its
	802	+	successor to be in receipt of disability compensation
	803	+	at the one-hundred-percent rate and the disability
782	804		shall be permanent and have been sustained through
783	805		military action or accident or resulting from disea se
784	806		contracted while in such active service and registered
785	807		with the veterans registry created by the Oklahoma
786	808		Department of Veterans Affairs; provided, that if the
787	809		veteran received the sales tax exemption prior to
788	810		November 1, 2020, he or she shall be requir ed to
789	811		register with the vet erans registry prior to July 1,
790	812		2023, in order to remain qualified, or
791	813		b. the surviving spouse of the person in subparagraph a
792	814		of this paragraph if the person is deceased and the
793	815		spouse has not remarried and the surviving spouse of a
794	816		person who is determined by the United States
795	817		Department of Defense o r any branch of the United
796	818		States military to have died while in the line of duty
797	819		if the spouse has not remarried. Sales for the
798	820		benefit of an eligible person to a spouse of the
799	821		eligible person or to a member of the household in
800	822		which the eligible person resides and who is
801	823		authorized to make purchases on the person's behalf,
802	824		when such eligible person is not present at the sale,
803		-	shall also be exempt for purpose s of this paragraph.
804		-	The Oklahoma Tax Commission s hall issue a separate
805		-	exemption card to a spous e of an eligible person or to
806	825
807		-	ENGR. H. B. NO. 3912 Page 17 1
	826	+	HB3912 HFLR Page 17
	827	+	BOLD FACE denotes Committee Amendments. 1
808	828		2
809	829		3
810	830		4
811	831		5
812	832		6
813	833		7
814	834		8
815	835		9
816	836		10
817	837		11
818	838		12
819	839		13
820	840		14
821	841		15
822	842		16
823	843		17
824	844		18
825	845		19
826	846		20
827	847		21
828	848		22
829	849		23
830	850		24
831	851
	852	+	shall also be exempt for purpose s of this paragraph.
	853	+	The Oklahoma Tax Commission s hall issue a separate
	854	+	exemption card to a spous e of an eligible person or to
832	855		a member of the household in which the eligible person
833	856		resides who is authorized to make purchases on the
834	857		person's behalf, if requested by the eligible person.
835	858		Sales qualifying for the exemption authorized by this
836	859		paragraph shall not exceed Twenty-five Thousand
837	860		Dollars ($25,000.00) per year per individual while the
838	861		disabled veteran is living. Sales qualifying for the
839	862		exemption authorized by this paragr aph shall not
840	863		exceed One Thousand Dollars ($1,000.00) per year for
841	864		an unremarried surviving spouse. Upon request of the
842	865		Tax Commission, a person asserting or claiming the
843	866		exemption authorized by this paragraph shall provide a
844	867		statement, executed under oat h, that the total sales
845	868		amounts for which the exemption is applicable have not
846	869		exceeded Twenty-five Thousand Dollars ($25,000.00) per
847	870		year per living disabled veteran or One Thousand
848	871		Dollars ($1,000.00) per year for an unremarried
849	872		surviving spouse. If the amount of such exempt sales
850	873		exceeds such amount, the sales tax in excess o f the
851	874		authorized amount shall be treated as a direct sales
852	875		tax liability and may be recovered by the Tax
853		-	Commission in the same manner provided by law for
854		-	other taxes including penalty and interest. The Tax
855		-	Commission shall promulgate any rules necessary to
856	876
857		-	ENGR. H. B. NO. 3912 Page 18 1
	877	+	HB3912 HFLR Page 18
	878	+	BOLD FACE denotes Committee Amendments. 1
858	879		2
859	880		3
860	881		4
861	882		5
862	883		6
863	884		7
864	885		8
865	886		9
866	887		10
867	888		11
868	889		12
869	890		13
870	891		14
871	892		15
872	893		16
873	894		17
874	895		18
875	896		19
876	897		20
877	898		21
878	899		22
879	900		23
880	901		24
881	902
	903	+	Commission in the same manner provided by law for
	904	+	other taxes including penalty and interest. The Tax
	905	+	Commission shall promulgate any rules necessary to
882	906		implement the provisions of this paragraph, which
883	907		shall include rules providing for the disclosure of
884	908		information about pers ons eligible for the exemption
885	909		authorized in this par agraph to the Oklahoma
886	910		Department of Veteran's Affairs, as authorized in
887	911		Section 205 of this title. For purposes of the
888	912		exemption authorized by this subparagraph, if the
889	913		disability determination that would have been made
890	914		while the disabled veteran was still living is not
891	915		made final until afte r the death of the disabled
892	916		veteran, the exemption authorized by this subparagraph
893	917		may still be claimed by t he surviving spouse;
894	918		35. Sales of electricity to the operator, specifically
895	919		designated by the Corporation Commission, of a spacing unit or lease
896	920		from which oil is produced or attempted to be produced using
897	921		enhanced recovery methods including, but not lim ited to, increased
898	922		pressure in a producing formation through the use of water or
899	923		saltwater if the electrical usage is associa ted with and necessary
900	924		for the operation of equipment required to inject or circulate
901	925		fluids in a producing formation for the purpo se of forcing oil or
902	926		petroleum into a wellbore for eventual recovery and production f rom
903		-	the wellhead. In order to be eligib le for the sales tax exe mption
904		-	authorized by this paragraph, the total content of oil recovered
905		-	after the use of enhanced recovery methods shall not exceed one
906	927
907		-	ENGR. H. B. NO. 3912 Page 19 1
	928	+	HB3912 HFLR Page 19
	929	+	BOLD FACE denotes Committee Amendments. 1
908	930		2
909	931		3
910	932		4
911	933		5
912	934		6
913	935		7
914	936		8
915	937		9
916	938		10
917	939		11
918	940		12
919	941		13
920	942		14
921	943		15
922	944		16
923	945		17
924	946		18
925	947		19
926	948		20
927	949		21
928	950		22
929	951		23
930	952		24
931	953
	954	+	the wellhead. In order to be eligib le for the sales tax exe mption
	955	+	authorized by this paragraph, the total content of oil recovered
	956	+	after the use of enhanced recovery methods shall not exceed one
932	957		percent (1%) by volume. The exemption authorized by thi s paragraph
933	958		shall be applicable only to the state sales tax rate and shall not
934	959		be applicable to any county or municipal sales tax rate;
935	960		36. Sales of intrastate charter a nd tour bus transportation.
936	961		As used in this paragraph, "intrastate charter and tour b us
937	962		transportation" means the transportat ion of persons from one
938	963		location in this state to another location in this state in a motor
939	964		vehicle which has been constructed in such a manner that it may
940	965		lawfully carry more than eighteen persons, and which is ordi narily
941	966		used or rented to carry persons f or compensation. Provided, this
942	967		exemption shall not apply to regularly schedule d bus transportation
943	968		for the general public;
944	969		37. Sales of vitamins, minerals, and dietary supplements by a
945	970		licensed chiropractor to a person who is the patient of such
946	971		chiropractor at the physical lo cation where the chiropractor
947	972		provides chiropractic care or services to such patient. The
948	973		provisions of this paragraph shall not be applicable to any drug,
949	974		medicine, or substance for which a prescription by a licensed
950	975		physician is required;
951	976		38. Sales of goods, wares, merchandise, tangible personal
952	977		property, machinery, and equipment to a web search portal loca ted in
953		-	this state which derives at least eighty percent (80%) of its annual
954		-	gross revenue from the sale of a product or servi ce to an out-of-
955		-	state buyer or consumer. For purposes of this paragraph, "web
956	978
957		-	ENGR. H. B. NO. 3912 Page 20 1
	979	+	HB3912 HFLR Page 20
	980	+	BOLD FACE denotes Committee Amendments. 1
958	981		2
959	982		3
960	983		4
961	984		5
962	985		6
963	986		7
964	987		8
965	988		9
966	989		10
967	990		11
968	991		12
969	992		13
970	993		14
971	994		15
972	995		16
973	996		17
974	997		18
975	998		19
976	999		20
977	1000		21
978	1001		22
979	1002		23
980	1003		24
981	1004
	1005	+	this state which derives at least eighty percent (80%) of its annual
	1006	+	gross revenue from the sale of a product or servi ce to an out-of-
	1007	+	state buyer or consumer. For purposes of this paragraph, "web
982	1008		search portal" means an establishment classified und er NAICS code
983	1009		519130 which operates websites that use a search engine to generate
984	1010		and maintain extensive databases of Interne t addresses and content
985	1011		in an easily searchable format;
986	1012		39. Sales of tangible personal property consumed or
987	1013		incorporated in the c onstruction or expansion of a facility for a
988	1014		corporation organized under Section 437 et seq. of Title 18 of the
989	1015		Oklahoma Statutes as a rural electric cooperative. For purposes of
990	1016		this paragraph, sales made to a contractor or subcontractor that has
991	1017		previously entered into a contractual relationship with a rural
992	1018		electric cooperative for cons truction or expansion of a facility
993	1019		shall be considered sales ma de to a rural electric cooperative;
994	1020		40. Sales of tangible personal property or services to a
995	1021		business primarily engaged in the repair of consumer electronic
996	1022		goods including, but not limited t o, cell phones, compact disc
997	1023		players, personal computers, MP3 pl ayers, digital devices for the
998	1024		storage and retrieval of information through hard-wired or wireless
999	1025		computer or Internet connections, if the devices are sold to the
1000	1026		business by the original manufacturer of such devices and the
1001	1027		devices are repaired, refitted or refurbished for sale by the entity
1002	1028		qualifying for the exemption authorized by this paragraph directly
1003		-	to retail consumers or if the devices are sold to another business
1004		-	entity for sale to retail consumers;
1005	1029
1006		-	ENGR. H. B. NO. 3912 Page 21 1
	1030	+	HB3912 HFLR Page 21
	1031	+	BOLD FACE denotes Committee Amendments. 1
1007	1032		2
1008	1033		3
1009	1034		4
1010	1035		5
1011	1036		6
1012	1037		7
1013	1038		8
1014	1039		9
1015	1040		10
1016	1041		11
1017	1042		12
1018	1043		13
1019	1044		14
1020	1045		15
1021	1046		16
1022	1047		17
1023	1048		18
1024	1049		19
1025	1050		20
1026	1051		21
1027	1052		22
1028	1053		23
1029	1054		24
1030	1055
	1056	+	to retail consumers or if the devices are sold to another business
	1057	+	entity for sale to retail consumers;
1031	1058		41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
1032	1059		or leases of rolling stock when sold o r leased by the manufacturer,
1033	1060		regardless of whether the purchaser is a public services corporation
1034	1061		engaged in business as a common carri er of property or passengers by
1035	1062		railway, for use or consumption by a common carrier directly in the
1036	1063		rendition of public service. For purposes of this paragraph,
1037	1064		"rolling stock" means locomotives, autocars, and railroad cars and
1038	1065		"sales or leases" includes railroad car maintenance and retrofittin g
1039	1066		of railroad cars for t heir further use only on the railways; and
1040	1067		42. Sales of gold, silver, platinum, palladium or other bull ion
1041	1068		items such as coins and bars and legal tender of any nation, which
1042	1069		legal tender is sold according to its value as precious m etal or as
1043	1070		an investment. As used in the paragraph, "bullion" means any
1044	1071		precious metal including, but not limited to, gold, sil ver,
1045	1072		platinum, and palladium, that is in such a state or condition that
1046	1073		its value depends upon its precious metal content and no t its form.
1047	1074		The exemption authorized by this paragraph shall not apply to
1048	1075		fabricated metals that have been processed or manufact ured for
1049	1076		artistic use or as jewelry.; and
1050	1077		43. Sales of hearing aid devices. For the purposes of this
1051	1078		paragraph, "hearing aid devices" means an electronic device designed
1052	1079		to amplify sound for individuals with hearing loss. As used in this
1053		-	paragraph, "hearing aid devices" includes, but is not limited to,
1054		-	behind-the-ear, in-the-ear, and completely-in-the-canal options.
1055	1080
1056		-	ENGR. H. B. NO. 3912 Page 22 1
	1081	+	HB3912 HFLR Page 22
	1082	+	BOLD FACE denotes Committee Amendments. 1
1057	1083		2
1058	1084		3
1059	1085		4
1060	1086		5
1061	1087		6
1062	1088		7
1063	1089		8
1064	1090		9
1065	1091		10
1066	1092		11
1067	1093		12
1068	1094		13
1069	1095		14
1070	1096		15
1071	1097		16
1072	1098		17
1073	1099		18
1074	1100		19
1075	1101		20
1076	1102		21
1077	1103		22
1078	1104		23
1079	1105		24
1080	1106
	1107	+	paragraph, "hearing aid devices" includes, but is not limited to,
	1108	+	behind-the-ear, in-the-ear, and completely-in-the-canal options.
1081	1109		SECTION 2. This act shall become effe ctive July 1, 2024.
1082	1110		SECTION 3. It being immediately necessary for the preservation
1083	1111		of the public peace, health or safety, an emergency is hereby
1084	1112		declared to exist, by reason whereof thi s act shall take effect and
1085	1113		be in full force from and after its passage and approval.
1086		-	Passed the House of Representatives the 12th day of March, 2024.
1087	1114
1088		-
1089		-
1090		-
1091		-	Presiding Officer of the House
1092		-	of Representatives
1093		-
1094		-
1095		-
1096		-	Passed the Senate the ___ day of __________, 2024.
1097		-
1098		-
1099		-
1100		-
1101		-	Presiding Officer of the Senate
	1115	+	COMMITTEE REPORT BY: COMM ITTEE ON APPROPRIATIONS AND BUDGET , dated
	1116	+	02/29/2024 - DO PASS, As Amended and Coauthored.