Req. No. 2512 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
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1248 By: Paxton
AS INTRODUCED
An Act relating to sales and use tax; amending 68
O.S. 2021, Section 1355, as amended by Section 1,
Chapter 370, O.S.L. 2023 (68 O.S. Su pp. 2023, Section
1355), which relates to sales tax exemption;
modifying exemption for sale of motor vehicles;
amending 68 O.S. 2021, Section 1404, as amended by
Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp.
2023, Section 1404), which relates to use t ax
exemption; modifying exemption for sale of motor
vehicles; updating statutory language; and providing
an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Secti on 1355, as
amended by Section 1, Chapter 370, O.S.L. 2023 (68 O.S. S upp. 2023,
Section 1355), is amended to read as follows:
Section 1355. There are hereby specifically exempted from the
tax levied pursuant to the provisions of Section 1350 et seq. of
this title:
1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
mixture of methanol and gasoline containing at least eighty -five
percent (85%) methanol, compressed natural gas, liquefied natural
gas, or liquefied petroleum gas on which the Motor Fuel Tax motor
Req. No. 2512 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
fuel tax, Gasoline Excise Tax gasoline excise tax, Special Fuels Tax
special fuels tax, or the fee in lieu of Special Fuels Tax special
fuels tax levied in Section 500.1 et seq., Section 601 et seq. or
Section 701 et seq. of this title has bee n, or will be paid;
2. For the sale Sale of motor vehicles or any optional
equipment or accessories attached to motor vehicles on whi ch the
Oklahoma Motor Vehicle Excise Tax motor vehicle excise tax levied in
Section 2101 et seq. of this title has been, o r will be paid, all
but a portion of the levy provided under Section 1354 of this title,
equal to one and twenty -five-hundredths percent (1.25%) of the gross
receipts of such sales. For the purposes of this paragraph, if the
sale of a motor vehicle includ es a trade-in, gross receipts shall be
calculated based only on the difference between the value of the
trade-in vehicle and the actual sales price of the vehicle being
purchased. Provided, the sale of motor vehicles shall not be
subject to any sales and use taxes levied by cities, counties, or
other jurisdictions of the state ;
3. Sale of crude petroleum or natural or casinghead gas, and
other products subject to gross production tax pursuant to the
provisions of Section 1001 et seq. and Section 1101 et s eq. of this
title. This exemption shall not apply when such products are sold
to a consumer or user for consumption or use, except when used for
injection into the earth for the purpose of promoting or
facilitating the production of oil or gas. This para graph shall not
Req. No. 2512 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
operate to increase or repeal the gross production tax levi ed by the
laws of this state;
4. Sale of aircraft on which the tax levied pursuant to the
provisions of Sections 6001 through 6007 of this title has been , or
will be paid, or which are specifically exempt from such tax
pursuant to the provisions of Section 60 03 of this title;
5. Sales from coin-operated devices on which the fee imposed by
Sections 1501 through 1512 of this title has been paid;
6. Leases of twelve (12) months or mo re of motor vehicles in
which the owners of the vehicles have paid the vehicle excise tax
levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is le vied
pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
Title 3A of the Oklahoma Statutes, or which is sold to an
organization that is:
a. a veterans’ organization exempt from taxation pursuant
to the provisions of paragraph (4), (7), (8), (10), or
(19) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq.,
b. a group home for mentally disabled individuals exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
Req. No. 2512 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
States Internal Revenue Code of 1986, as amended, 26
U.S.C., Section 501(c) et seq., or
c. a charitable health care organization which is exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Co de of 1986, as amended, 26
U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
a. a federally recognized Indian tribe or nation which
has entered into a com pact with the State of Oklahoma
this state pursuant to the prov isions of subsection C
of Section 346 of this title or to a licensee of such
a tribe or nation, upon which the payment in lieu of
taxes required by the compact has been paid, or
b. a federally recognized Indian tribe or nation or to a
licensee of such a tribe or na tion upon which the tax
levied pursuant to the provisions of Section 349.1 or
Section 426 of this title has been paid;
9. Leases of aircraft upon which the owners have paid the
aircraft excise tax levied by Section 6001 et se q. of this title or
which are specifically exempt from such tax pursuant to the
provisions of Section 6003 of this title;
10. The sale of low -speed or medium-speed electrical vehicles
on which the Oklahoma Motor Vehicle Excise Tax motor vehicle excise
Req. No. 2512 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
tax levied in Section 2101 et seq . of this title has been or will be
paid;
11. Effective January 1, 2005, sales of cigarettes on which the
tax levied in Section 301 et seq. of this title or tobacco products
on which the tax levied in Section 401 et seq. of this title has
been paid; and
12. Sales of electricity at charging stations as defined by
Section 6502 of this title when the electricity is sold by a
charging station owner or operator for purposes of charging an
electric vehicle as defined by Section 6502 of this title and the
tax imposed pursuant to Section 6504 of this title is collected and
remitted to the Oklahoma Tax Commission.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, as
amended by Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2023,
Section 1404), is amended to read as follows:
Section 1404. The provisions of Sectio n 1401 et seq. of this
title shall not apply:
1. In respect to the use of any article of tangible personal
property brought into the State of Oklahoma this state by a
nonresident individual, visiting in this state, for his or her
personal use or enjoyment, while within the state;
2. In respect to the use of tangible personal property
purchased for resale before being used;
Req. No. 2512 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. In respect to the use of any article of tangible pe rsonal
property on which a tax, equal to or in excess of that levied by
Section 1401 et seq. of this title, has been paid by the person
using such tangible personal property in this state, whether such
tax was levied under the laws of this state or some other state of
the United States. If any article of tangible personal property has
already been subjected to a tax, by this or any other state, in
respect to its sale or use, in an amount less than the tax imposed
by Section 1401 et seq. of this title, the provisions of Section
1401 et seq. of this title shall apply to it by a rate me asured by
the difference only between the rate herein provided and the rate by
which the previous tax upon the sale or use was computed. Provided,
that no credit shall be given for taxes paid in another state, if
that state does not grant like credit for taxes paid in this state;
4. In respect to the use of tangible personal property now
specifically exempted from taxation under Oklahoma Sales Tax Code .
Provided, for the sale of motor vehicles or any optional equipment
or accessories attached to motor ve hicles on which the Oklahoma
Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
2108 of this title has been, or will be paid, the exc eptions shall
apply to all but a portion of the levy provided under Section 1402
of this title, equal to one and twenty -five-hundredths percent
(1.25%) of the purchase price. For the purposes of this paragraph,
if the sale of a motor vehicle includes a trade -in, the purchase
Req. No. 2512 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
price shall be calculated based only on the difference between the
value of the trade-in vehicle and the actual purchase price of the
vehicle being purchased. Provided further, the sale of motor
vehicles shall not be subject to any sa les and use taxes levied by
cities, counties, or other jurisdictions of the state ;
5. In respect to the use of any article or tangible personal
property brought into the state by an individual with intent to
become a resident of this state where such personal property is for
such individual’s personal use or enjoyment;
6. In respect to the use of any article o f tangible personal
property used or to be used by commercial airlines or railroads;
7. In respect to livestock purchased outside this state and
brought into this state for feeding or breeding purposes, and which
is later resold; and
8. Effective January 1, 1991, in respect to the use of rail
transportation cars to haul coal to coal -fired plants located in
this state which generate electric power.
SECTION 3. This act shall become effective November 1, 2024.
59-2-2512 QD 12/7/2023 3:33:39 PM