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28	28	STATE OF OKLAHOMA
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30	30	2nd Session of the 59th Legislature (2024)
31	31
32	32	SENATE BILL 1248 By: Paxton
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38	38	AS INTRODUCED
39	39
40	40	An Act relating to sales and use tax; amending 68
41	41	O.S. 2021, Section 1355, as amended by Section 1,
42	42	Chapter 370, O.S.L. 2023 (68 O.S. Su pp. 2023, Section
43	43	1355), which relates to sales tax exemption;
44	44	modifying exemption for sale of motor vehicles;
45	45	amending 68 O.S. 2021, Section 1404, as amended by
46	46	Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp.
47	47	2023, Section 1404), which relates to use t ax
48	48	exemption; modifying exemption for sale of motor
49	49	vehicles; updating statutory language; and providing
50	50	an effective date.
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52	52
53	53
54	54	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	55	SECTION 1. AMENDATORY 68 O.S. 2021, Secti on 1355, as
56	56	amended by Section 1, Chapter 370, O.S.L. 2023 (68 O.S. S upp. 2023,
57	57	Section 1355), is amended to read as follows:
58	58	Section 1355. There are hereby specifically exempted from the
59	59	tax levied pursuant to the provisions of Section 1350 et seq. of
60	60	this title:
61	61	1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
62	62	mixture of methanol and gasoline containing at least eighty -five
63	63	percent (85%) methanol, compressed natural gas, liquefied natural
64	64	gas, or liquefied petroleum gas on which the Motor Fuel Tax motor
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91	91	fuel tax, Gasoline Excise Tax gasoline excise tax, Special Fuels Tax
92	92	special fuels tax, or the fee in lieu of Special Fuels Tax special
93	93	fuels tax levied in Section 500.1 et seq., Section 601 et seq. or
94	94	Section 701 et seq. of this title has bee n, or will be paid;
95	95	2. For the sale Sale of motor vehicles or any optional
96	96	equipment or accessories attached to motor vehicles on whi ch the
97	97	Oklahoma Motor Vehicle Excise Tax motor vehicle excise tax levied in
98	98	Section 2101 et seq. of this title has been, o r will be paid, all
99	99	but a portion of the levy provided under Section 1354 of this title,
100	100	equal to one and twenty -five-hundredths percent (1.25%) of the gross
101	101	receipts of such sales. For the purposes of this paragraph, if the
102	102	sale of a motor vehicle includ es a trade-in, gross receipts shall be
103	103	calculated based only on the difference between the value of the
104	104	trade-in vehicle and the actual sales price of the vehicle being
105	105	purchased. Provided, the sale of motor vehicles shall not be
106	106	subject to any sales and use taxes levied by cities, counties, or
107	107	other jurisdictions of the state ;
108	108	3. Sale of crude petroleum or natural or casinghead gas, and
109	109	other products subject to gross production tax pursuant to the
110	110	provisions of Section 1001 et seq. and Section 1101 et s eq. of this
111	111	title. This exemption shall not apply when such products are sold
112	112	to a consumer or user for consumption or use, except when used for
113	113	injection into the earth for the purpose of promoting or
114	114	facilitating the production of oil or gas. This para graph shall not
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141	141	operate to increase or repeal the gross production tax levi ed by the
142	142	laws of this state;
143	143	4. Sale of aircraft on which the tax levied pursuant to the
144	144	provisions of Sections 6001 through 6007 of this title has been , or
145	145	will be paid, or which are specifically exempt from such tax
146	146	pursuant to the provisions of Section 60 03 of this title;
147	147	5. Sales from coin-operated devices on which the fee imposed by
148	148	Sections 1501 through 1512 of this title has been paid;
149	149	6. Leases of twelve (12) months or mo re of motor vehicles in
150	150	which the owners of the vehicles have paid the vehicle excise tax
151	151	levied by Section 2103 of this title;
152	152	7. Sales of charity game equipment on which a tax is le vied
153	153	pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
154	154	Title 3A of the Oklahoma Statutes, or which is sold to an
155	155	organization that is:
156	156	a. a veterans’ organization exempt from taxation pursuant
157	157	to the provisions of paragraph (4), (7), (8), (10), or
158	158	(19) of subsection (c) of Section 501 of the United
159	159	States Internal Revenue Code of 1986, as amended, 26
160	160	U.S.C., Section 501(c) et seq.,
161	161	b. a group home for mentally disabled individuals exempt
162	162	from taxation pursuant to the provisions of paragraph
163	163	(3) of subsection (c) of Section 501 of the United
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190	190	States Internal Revenue Code of 1986, as amended, 26
191	191	U.S.C., Section 501(c) et seq., or
192	192	c. a charitable health care organization which is exempt
193	193	from taxation pursuant to the provisions of paragraph
194	194	(3) of subsection (c) of Section 501 of the United
195	195	States Internal Revenue Co de of 1986, as amended, 26
196	196	U.S.C., Section 501(c) et seq.;
197	197	8. Sales of cigarettes or tobacco products to:
198	198	a. a federally recognized Indian tribe or nation which
199	199	has entered into a com pact with the State of Oklahoma
200	200	this state pursuant to the prov isions of subsection C
201	201	of Section 346 of this title or to a licensee of such
202	202	a tribe or nation, upon which the payment in lieu of
203	203	taxes required by the compact has been paid, or
204	204	b. a federally recognized Indian tribe or nation or to a
205	205	licensee of such a tribe or na tion upon which the tax
206	206	levied pursuant to the provisions of Section 349.1 or
207	207	Section 426 of this title has been paid;
208	208	9. Leases of aircraft upon which the owners have paid the
209	209	aircraft excise tax levied by Section 6001 et se q. of this title or
210	210	which are specifically exempt from such tax pursuant to the
211	211	provisions of Section 6003 of this title;
212	212	10. The sale of low -speed or medium-speed electrical vehicles
213	213	on which the Oklahoma Motor Vehicle Excise Tax motor vehicle excise
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240	240	tax levied in Section 2101 et seq . of this title has been or will be
241	241	paid;
242	242	11. Effective January 1, 2005, sales of cigarettes on which the
243	243	tax levied in Section 301 et seq. of this title or tobacco products
244	244	on which the tax levied in Section 401 et seq. of this title has
245	245	been paid; and
246	246	12. Sales of electricity at charging stations as defined by
247	247	Section 6502 of this title when the electricity is sold by a
248	248	charging station owner or operator for purposes of charging an
249	249	electric vehicle as defined by Section 6502 of this title and the
250	250	tax imposed pursuant to Section 6504 of this title is collected and
251	251	remitted to the Oklahoma Tax Commission.
252	252	SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, as
253	253	amended by Section 2, Chapter 370, O.S.L. 2023 (68 O.S. Supp. 2023,
254	254	Section 1404), is amended to read as follows:
255	255	Section 1404. The provisions of Sectio n 1401 et seq. of this
256	256	title shall not apply:
257	257	1. In respect to the use of any article of tangible personal
258	258	property brought into the State of Oklahoma this state by a
259	259	nonresident individual, visiting in this state, for his or her
260	260	personal use or enjoyment, while within the state;
261	261	2. In respect to the use of tangible personal property
262	262	purchased for resale before being used;
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289	289	3. In respect to the use of any article of tangible pe rsonal
290	290	property on which a tax, equal to or in excess of that levied by
291	291	Section 1401 et seq. of this title, has been paid by the person
292	292	using such tangible personal property in this state, whether such
293	293	tax was levied under the laws of this state or some other state of
294	294	the United States. If any article of tangible personal property has
295	295	already been subjected to a tax, by this or any other state, in
296	296	respect to its sale or use, in an amount less than the tax imposed
297	297	by Section 1401 et seq. of this title, the provisions of Section
298	298	1401 et seq. of this title shall apply to it by a rate me asured by
299	299	the difference only between the rate herein provided and the rate by
300	300	which the previous tax upon the sale or use was computed. Provided,
301	301	that no credit shall be given for taxes paid in another state, if
302	302	that state does not grant like credit for taxes paid in this state;
303	303	4. In respect to the use of tangible personal property now
304	304	specifically exempted from taxation under Oklahoma Sales Tax Code .
305	305	Provided, for the sale of motor vehicles or any optional equipment
306	306	or accessories attached to motor ve hicles on which the Oklahoma
307	307	Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
308	308	2108 of this title has been, or will be paid, the exc eptions shall
309	309	apply to all but a portion of the levy provided under Section 1402
310	310	of this title, equal to one and twenty -five-hundredths percent
311	311	(1.25%) of the purchase price. For the purposes of this paragraph,
312	312	if the sale of a motor vehicle includes a trade -in, the purchase
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339	339	price shall be calculated based only on the difference between the
340	340	value of the trade-in vehicle and the actual purchase price of the
341	341	vehicle being purchased. Provided further, the sale of motor
342	342	vehicles shall not be subject to any sa les and use taxes levied by
343	343	cities, counties, or other jurisdictions of the state ;
344	344	5. In respect to the use of any article or tangible personal
345	345	property brought into the state by an individual with intent to
346	346	become a resident of this state where such personal property is for
347	347	such individual’s personal use or enjoyment;
348	348	6. In respect to the use of any article o f tangible personal
349	349	property used or to be used by commercial airlines or railroads;
350	350	7. In respect to livestock purchased outside this state and
351	351	brought into this state for feeding or breeding purposes, and which
352	352	is later resold; and
353	353	8. Effective January 1, 1991, in respect to the use of rail
354	354	transportation cars to haul coal to coal -fired plants located in
355	355	this state which generate electric power.
356	356	SECTION 3. This act shall become effective November 1, 2024.
357	357
358	358	59-2-2512 QD 12/7/2023 3:33:39 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1248 Compare Versions