OK
Oklahoma Senate Bill SB1300

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1300 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11
22
33
44 Req. No. 2471 Page 1 1
55 2
66 3
77 4
88 5
99 6
1010 7
1111 8
1212 9
1313 10
1414 11
1515 12
1616 13
1717 14
1818 15
1919 16
2020 17
2121 18
2222 19
2323 20
2424 21
2525 22
2626 23
2727 24
2828 1
2929 2
3030 3
3131 4
3232 5
3333 6
3434 7
3535 8
3636 9
3737 10
3838 11
3939 12
4040 13
4141 14
4242 15
4343 16
4444 17
4545 18
4646 19
4747 20
4848 21
4949 22
5050 23
5151 24
5252
5353 STATE OF OKLAHOMA
5454
5555 2nd Session of the 59th Legislature (2024)
5656
5757 SENATE BILL 1300 By: Rader
5858
5959
6060
6161
6262
6363 AS INTRODUCED
6464
6565 An Act relating to sales tax; amending 68 O.S. 2021,
6666 Section 1359, which relates to exemptions; expanding
6767 exemption on tangible personal property consumed or
6868 incorporated in a new facility to include certain
6969 industries; modifying definition; updating statutory
7070 language; updating statutory reference; and providing
7171 an effective date.
7272
7373
7474
7575 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
7676 SECTION 1. AMENDATORY 68 O.S. 2021, Section 135 9, is
7777 amended to read as follows:
7878 Section 1359. Exemptions - Manufacturing.
7979 There are hereby specifically exempted from the tax levied by
8080 Section 1350 et seq. of this title:
8181 1. Sales of goods, wares, merchandise, tangible personal
8282 property, machinery, and equipment to a manufacturer for use in a
8383 manufacturing operation. Goods, wares, merchandise, property,
8484 machinery, and equipment used in a nonmanufacturin g activity or
8585 process as set forth in paragraph 14 of Section 1352 of this title
8686 shall not be eligible for the exemption provided for in this
8787 subsection paragraph by virtue of the activity or process being
8888
8989
9090 Req. No. 2471 Page 2 1
9191 2
9292 3
9393 4
9494 5
9595 6
9696 7
9797 8
9898 9
9999 10
100100 11
101101 12
102102 13
103103 14
104104 15
105105 16
106106 17
107107 18
108108 19
109109 20
110110 21
111111 22
112112 23
113113 24
114114 1
115115 2
116116 3
117117 4
118118 5
119119 6
120120 7
121121 8
122122 9
123123 10
124124 11
125125 12
126126 13
127127 14
128128 15
129129 16
130130 17
131131 18
132132 19
133133 20
134134 21
135135 22
136136 23
137137 24
138138
139139 performed in conjunction with or integrated into a manufacturing
140140 operation.
141141 For the purposes of this paragraph, sales made to any person,
142142 firm, or entity that has entered into a contractual relationship for
143143 the construction and improvement of manufacturing goods, wares,
144144 merchandise, property, machinery , and equipment for use in a
145145 manufacturing operation shall be considered sales made to a
146146 manufacturer which is defined or class ified in the North American
147147 Industry Classification System (NAICS) Manual under Industry Group
148148 No. 324110. Such purchase shall be evidenced by a copy of the sales
149149 ticket or invoice to be retained by the vendor indicating tha t the
150150 purchases are made for and on behalf of such manufacturer and set
151151 out the name of such manufacturer as well as include a copy of the
152152 Manufacturing Exemption Permit manufacturing exemption permit of the
153153 manufacturer. Any person who wrongfully or erroneously certifies
154154 that purchases are being made on behalf of s uch manufacturer or who
155155 otherwise violates this paragraph shall be guilty of a misdemeanor
156156 and upon conviction thereof sha ll be fined an amount equal to double
157157 the amount of sales tax involved o r incarcerated for not more than
158158 sixty (60) days or both;
159159 2. Ethyl alcohol when sold and used for the purpose of blending
160160 same with motor fuel on which motor fuel ta x is levied by Section
161161 500.4 of this title;
162162
163163
164164 Req. No. 2471 Page 3 1
165165 2
166166 3
167167 4
168168 5
169169 6
170170 7
171171 8
172172 9
173173 10
174174 11
175175 12
176176 13
177177 14
178178 15
179179 16
180180 17
181181 18
182182 19
183183 20
184184 21
185185 22
186186 23
187187 24
188188 1
189189 2
190190 3
191191 4
192192 5
193193 6
194194 7
195195 8
196196 9
197197 10
198198 11
199199 12
200200 13
201201 14
202202 15
203203 16
204204 17
205205 18
206206 19
207207 20
208208 21
209209 22
210210 23
211211 24
212212
213213 3. Sales of containers when sold to a person regular ly engaged
214214 in the business of reselling empty or filled containers or when
215215 purchased for the purpose of packaging raw prod ucts of farm, garden,
216216 or orchard for resale to the cons umer or processor. This exemption
217217 shall not apply to the sale of any co ntainers used more than once
218218 and which are ordinarily known as returnable containers, except
219219 returnable soft drink bottles and the cartons, crates, pallets, and
220220 containers used to transport returnable soft drink bottles. Each
221221 and every transfer of title or posse ssion of such returnable
222222 containers in this state to an y person who is not regularly engaged
223223 in the business of selling, r eselling or otherwise transferring
224224 empty or filled cont ainers shall be taxable under this the Oklahoma
225225 Sales Tax Code. Additionally, this exemption shall not apply to the
226226 sale of labels or other materials delivered along with items sold
227227 but which are not necessary or absolutely essential to the sale of
228228 the sold merchandise;
229229 4. Sales of or transfer s of title to or possession of any
230230 containers, after June 30, 1987, used or to be used more than once
231231 and which are ordinarily known as returnable containers and which do
232232 or will contain beverages defined by paragrap hs 4 and 14 of Section
233233 506 of Title 37 of the Oklahoma Sta tutes, or water for human
234234 consumption and the cartons, crates, pallets, and containers used to
235235 transport such returnable containers;
236236
237237
238238 Req. No. 2471 Page 4 1
239239 2
240240 3
241241 4
242242 5
243243 6
244244 7
245245 8
246246 9
247247 10
248248 11
249249 12
250250 13
251251 14
252252 15
253253 16
254254 17
255255 18
256256 19
257257 20
258258 21
259259 22
260260 23
261261 24
262262 1
263263 2
264264 3
265265 4
266266 5
267267 6
268268 7
269269 8
270270 9
271271 10
272272 11
273273 12
274274 13
275275 14
276276 15
277277 16
278278 17
279279 18
280280 19
281281 20
282282 21
283283 22
284284 23
285285 24
286286
287287 5. Sale of tangible personal property when sold by the
288288 manufacturer to a person who transports it to a s tate other than
289289 Oklahoma this state for immediate and exclusive use in a state other
290290 than Oklahoma this state. Provided, no sales at a ret ail outlet
291291 shall qualify for the exemption under this paragraph;
292292 6. Machinery, equipment, fuels and, chemicals, or other
293293 materials incorporate d into and directly used or consumed in the
294294 process of treatment to substantially reduce the volume or harmful
295295 properties of hazardous waste at treatment facilities specifically
296296 permitted pursuant to the Oklahoma Hazardous Waste Man agement Act
297297 and operated at the place of waste generation, or facilities
298298 approved by the Department of Enviro nmental Quality for the cleanu p
299299 of a site of contamination. The term “hazardous” waste may include
300300 low-level radioactive waste for the purp ose of this paragraph;
301301 7. Except as otherwise provided by subsection I of Section 3658
302302 of this title pursuant to which the exemption authorized by this
303303 paragraph may not be claimed, sales of tangible personal property to
304304 a qualified manufacturer, trade or service business, or distributor
305305 to be consumed or incorporated in a new manufacturing , trade or
306306 service business, or distribution facility or to expand an existing
307307 manufacturing, trade or service business, or distribution facility.
308308 For purposes of this paragraph, sales made to a contractor or
309309 subcontractor that has previously entered into a contractual
310310 relationship with a qualified manufacturer , trade or service
311311
312312
313313 Req. No. 2471 Page 5 1
314314 2
315315 3
316316 4
317317 5
318318 6
319319 7
320320 8
321321 9
322322 10
323323 11
324324 12
325325 13
326326 14
327327 15
328328 16
329329 17
330330 18
331331 19
332332 20
333333 21
334334 22
335335 23
336336 24
337337 1
338338 2
339339 3
340340 4
341341 5
342342 6
343343 7
344344 8
345345 9
346346 10
347347 11
348348 12
349349 13
350350 14
351351 15
352352 16
353353 17
354354 18
355355 19
356356 20
357357 21
358358 22
359359 23
360360 24
361361
362362 business, or distributor for construction or expansion of a
363363 manufacturing, trade or service business, or distribution facility
364364 shall be considered sales made to a qualified manufacturer , trade or
365365 service business, or distributor. For the purposes of this
366366 paragraph, “qualified manufacturer or distributor” “qualified
367367 manufacturer, trade or service business, or distributor” means:
368368 a. any manufacturing or trade or service business
369369 enterprise whose total cost of construction of a new
370370 or expanded facility exceeds the sum of Five Million
371371 Dollars ($5,000,000.00) and in w hich at least one
372372 hundred (100) new full -time-equivalent employees, as
373373 certified by the Oklahoma Employment Security
374374 Commission, are added and maintained for a period of
375375 at least thirty-six (36) months as a direct result of
376376 the new or expanded facility,
377377 b. any manufacturing or trade or service business
378378 enterprise whose total cost of construction of a new
379379 or expanded facility exceeds the sum of Ten Million
380380 Dollars ($10,000,000.00) and the combined cost of
381381 construction material, machinery, equipment , and other
382382 tangible personal property exempt from sales tax under
383383 the provisions of this paragraph exceeds the sum of
384384 Fifty Million Dollars ($50,000,000.00) and in which at
385385 least seventy-five (75) new full-time-equivalent
386386
387387
388388 Req. No. 2471 Page 6 1
389389 2
390390 3
391391 4
392392 5
393393 6
394394 7
395395 8
396396 9
397397 10
398398 11
399399 12
400400 13
401401 14
402402 15
403403 16
404404 17
405405 18
406406 19
407407 20
408408 21
409409 22
410410 23
411411 24
412412 1
413413 2
414414 3
415415 4
416416 5
417417 6
418418 7
419419 8
420420 9
421421 10
422422 11
423423 12
424424 13
425425 14
426426 15
427427 16
428428 17
429429 18
430430 19
431431 20
432432 21
433433 22
434434 23
435435 24
436436
437437 employees, as certified by the Oklahoma Emp loyment
438438 Security Commission, are added and maintained for a
439439 period of at least thirty -six (36) months as a direct
440440 result of the new or expanded facility,
441441 c. any manufacturing or trade or service business
442442 enterprise whose total cost of construction o f an
443443 expanded facility exceeds the sum of Three Hundre d
444444 Million Dollars ($300,000,000. 00) and in which the
445445 manufacturer has and maintains an average employment
446446 level of at least one thousand seven hundred fifty
447447 (1,750) full-time-equivalent employees, as certified
448448 by the Oklahoma Employment Security Commission, or
449449 d. any enterprise primarily engaged in the general
450450 wholesale distribution of groceries defined or
451451 classified in the North American Industry
452452 Classification Syste m (NAICS) Manual under Industry
453453 Groups No. 4244 and 4245 and which has at least
454454 seventy-five percent (75%) of its total sal es to in-
455455 state customers or buyers and whose total cost of
456456 construction of a new or expanded facility exceeds the
457457 sum of Forty Million Dollars ($40,000,000.00) with
458458 such construction commencing on or after July 1, 2005,
459459 and before December 31, 2005, and which at least fifty
460460 new full-time-equivalent employees, as certified by
461461
462462
463463 Req. No. 2471 Page 7 1
464464 2
465465 3
466466 4
467467 5
468468 6
469469 7
470470 8
471471 9
472472 10
473473 11
474474 12
475475 13
476476 14
477477 15
478478 16
479479 17
480480 18
481481 19
482482 20
483483 21
484484 22
485485 23
486486 24
487487 1
488488 2
489489 3
490490 4
491491 5
492492 6
493493 7
494494 8
495495 9
496496 10
497497 11
498498 12
499499 13
500500 14
501501 15
502502 16
503503 17
504504 18
505505 19
506506 20
507507 21
508508 22
509509 23
510510 24
511511
512512 the Oklahoma Employment Security Commission, are added
513513 and maintained for a period of at least thirty -six
514514 (36) months as a direct result of the new or expanded
515515 facility.
516516 For purposes of this paragraph, the total cost of construction
517517 shall include building and construction material and engineering and
518518 architectural fees or charges directly associated with the
519519 construction of a new or expanded facility. The total cost o f
520520 construction shall not include attorney fees. For purposes of
521521 subparagraph c of this paragraph, the total cost of construction
522522 shall also include the cost of qualified depreciable property as
523523 defined in Section 2357.4 of this title and labor service s performed
524524 in the construction of an expanded facility. For the purpose of
525525 subparagraph d of this paragraph, the total cost of construction
526526 shall also include the cost of all parking, security , and dock
527527 structures or facilities necessary to manage, process , or secure
528528 vehicles used to receive and/or distribute groceries through such a
529529 facility. The employment requirement of this paragraph can be
530530 satisfied by the employment of a portion of the require d number of
531531 new full-time-equivalent employees at a manu facturing, trade or
532532 service business, or distribution facility that is related to or
533533 supported by the new or expanded manufacturing , trade or service
534534 business, or distribution facility as long as both facilities are
535535 owned by one person or business entity. For purposes of this
536536
537537
538538 Req. No. 2471 Page 8 1
539539 2
540540 3
541541 4
542542 5
543543 6
544544 7
545545 8
546546 9
547547 10
548548 11
549549 12
550550 13
551551 14
552552 15
553553 16
554554 17
555555 18
556556 19
557557 20
558558 21
559559 22
560560 23
561561 24
562562 1
563563 2
564564 3
565565 4
566566 5
567567 6
568568 7
569569 8
570570 9
571571 10
572572 11
573573 12
574574 13
575575 14
576576 15
577577 16
578578 17
579579 18
580580 19
581581 20
582582 21
583583 22
584584 23
585585 24
586586
587587 section, “manufacturing facility ” and “trade or service business
588588 facility” shall mean building and land improvements used in
589589 manufacturing as defined in Section 1352 of this titl e defined or
590590 classified in the NAICS Manual under Sector Nos. 31 through 33, 42,
591591 48-49, 54, and 56 and shall also mean building and land improvements
592592 used for the purpose of packing, repackaging, la beling, or
593593 assembling for distribution to market, products at least seventy
594594 percent (70%) of which are made in Oklahoma in this state by the
595595 same company but at an off -site, in-state manufacturing, trade or
596596 service business, or distribution facility or facilit ies. It shall
597597 not include a retail outlet unless the retail outlet is operated in
598598 conjunction with and on the same site or premises as the
599599 manufacturing or trade or service business facility. Up to ten
600600 percent (10%) of the square feet of a manufacturing or distribution
601601 facility building may be devoted to of fice space used to provide
602602 clerical support for the manufacturing operation. Such ten percent
603603 (10%) may be in a separate building as long as it is par t of the
604604 same contiguous tract of property on whic h the manufacturing or
605605 distribution facility is located . Only sales of tangible personal
606606 property made after June 1, 1988, shall be e ligible for the
607607 exemption provided by this paragraph. The exemption authorized
608608 pursuant to subparagraph d of this paragraph shall only become
609609 effective when the governing body of the municipality in which the
610610 enterprise is located approves a resolution expressing the
611611
612612
613613 Req. No. 2471 Page 9 1
614614 2
615615 3
616616 4
617617 5
618618 6
619619 7
620620 8
621621 9
622622 10
623623 11
624624 12
625625 13
626626 14
627627 15
628628 16
629629 17
630630 18
631631 19
632632 20
633633 21
634634 22
635635 23
636636 24
637637 1
638638 2
639639 3
640640 4
641641 5
642642 6
643643 7
644644 8
645645 9
646646 10
647647 11
648648 12
649649 13
650650 14
651651 15
652652 16
653653 17
654654 18
655655 19
656656 20
657657 21
658658 22
659659 23
660660 24
661661
662662 municipality’s support for the construction for such new or expanded
663663 facility. Upon approval by the municipa lity, the municipality shall
664664 forward a copy of such res olution to the Oklahoma Tax Commission;
665665 8. Sales of tangible personal property purchased and used by a
666666 licensed radio or television station in broadcasting. This
667667 exemption shall not apply unless such machinery and equipment is
668668 used directly in the manufa cturing process, is necessary for the
669669 proper production of a broadcast signal , or is such that the failure
670670 of the machinery or equipment to operate would cause broadcasting to
671671 cease. This exemption beg ins with the equipment used in producing
672672 live programming or the electronic equipment directly behind the
673673 satellite receiving dish or antenna, and ends with the transmission
674674 of the broadcast signal from the broadcast antenna system. For
675675 purposes of this paragraph, “proper production” shall include, but
676676 not be limited to, machinery or equipment required by Federal
677677 Communications Commis sion rules and regulations;
678678 9. Sales of tangible personal property purchased or used by a
679679 licensed cable television operato r in cablecasting. This exemption
680680 shall not apply unless such machinery and equipment is used directly
681681 in the manufacturing process, is necessary for the proper production
682682 of a cablecast signal , or is such that the failure of the machinery
683683 or equipment to operate would cause cablecast ing to cease. This
684684 exemption begins with the equipment used in producing local
685685 programming or the electronic equipment behind the satellite
686686
687687
688688 Req. No. 2471 Page 10 1
689689 2
690690 3
691691 4
692692 5
693693 6
694694 7
695695 8
696696 9
697697 10
698698 11
699699 12
700700 13
701701 14
702702 15
703703 16
704704 17
705705 18
706706 19
707707 20
708708 21
709709 22
710710 23
711711 24
712712 1
713713 2
714714 3
715715 4
716716 5
717717 6
718718 7
719719 8
720720 9
721721 10
722722 11
723723 12
724724 13
725725 14
726726 15
727727 16
728728 17
729729 18
730730 19
731731 20
732732 21
733733 22
734734 23
735735 24
736736
737737 receiving dish, microwave tower , or antenna, and ends with the
738738 transmission of the sign al from the cablecast head -end system. For
739739 purposes of this paragraph, “proper production” shall include, but
740740 not be limited to, m achinery or equipment required by Federal
741741 Communications Commission rules and regulations;
742742 10. Sales of packaging materials for use in packing, shipping ,
743743 or delivering tangible personal property for sale when sold to a
744744 producer of agricultural products. This exemption shall not apply
745745 to the sale of any packaging material w hich is ordinarily known as a
746746 returnable container;
747747 11. Sales of any pattern used in the process of manufa cturing
748748 iron, steel, or other metal castings. The exemption provided by
749749 this paragraph shall be applicable irrespective of ownership of the
750750 pattern provided that such pattern is used in the commercial
751751 production of metal castings;
752752 12. Deposits or other c harges made and which are subsequently
753753 refunded for returnable cartons, crates, pallets, and containers
754754 used to transport cement and cement products;
755755 13. Beginning January 1, 1998, machinery, electricity , fuels,
756756 explosives, and materials, excluding chemic als, used in the mining
757757 of coal in this state;
758758 14. Deposits, rent, or other charges made for returnable
759759 cartons, crates, pallets, and containers used to transport mushrooms
760760
761761
762762 Req. No. 2471 Page 11 1
763763 2
764764 3
765765 4
766766 5
767767 6
768768 7
769769 8
770770 9
771771 10
772772 11
773773 12
774774 13
775775 14
776776 15
777777 16
778778 17
779779 18
780780 19
781781 20
782782 21
783783 22
784784 23
785785 24
786786 1
787787 2
788788 3
789789 4
790790 5
791791 6
792792 7
793793 8
794794 9
795795 10
796796 11
797797 12
798798 13
799799 14
800800 15
801801 16
802802 17
803803 18
804804 19
805805 20
806806 21
807807 22
808808 23
809809 24
810810
811811 or mushroom products from a farm for resal e to the consumer or
812812 processor;
813813 15. Sales of tangible person al property and services used or
814814 consumed in all phases of the extraction and manufacturing of
815815 crushed stone and sand, including but not limited to site
816816 preparation, dredging, overbur den removal, explosive placement and
817817 detonation, onsite material hauling and/or transfer, m aterial
818818 washing, screening and/or crushing, product weighing , and site
819819 reclamation; and
820820 16. Sale, use, or consumption of paper stock and other raw
821821 materials which are manufactured into commercial printed material in
822822 this state primarily fo r use and delivery outside this state. For
823823 the purposes of this section, “commercial printed material ” shall
824824 include magazines, catalogs, retail inserts , and direct mail.
825825 SECTION 2. This act shall become effective N ovember 1, 2024.
826826
827827 59-2-2471 QD 12/12/2023 5:52:09 PM