Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB133 Compare Versions

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Version 2 (New)

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3		-	SB133 HFLR Page 1
4		-	BOLD FACE denotes Committee Amendments. 1
	3	+	ENGR. S. B. NO. 133 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 59th Legislature (2023)
34		-
35		-	COMMITTEE SUBSTITUTE
36		-	FOR ENGROSSED
37		-	SENATE BILL NO. 133 By: Bullard, Burns, and Woods
38		-	of the Senate
	28	+	ENGROSSED SENATE
	29	+	BILL NO. 133 By: Bullard and Burns of the
	30	+	Senate
39	31
40	32		and
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42	34		Pfeiffer of the House
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46		-
47		-	COMMITTEE SUBSTITUTE
48		-
49		-	[ sales tax – medical marijuana grow – exemption –
50		-	effective date ]
	38	+	An Act relating to agriculture sales tax exemption;
	39	+	amending 68 O.S. 2021, Section 1358, which relates to
	40	+	agriculture exemption; modifying defini tion; updating
	41	+	statutory language; and providing an effective date .
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55	46		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
56		-	SECTION 1. NEW LAW A new section of law to be codified
57		-	in the Oklahoma Statut es as Section 1358.2 of Title 68, unless there
58		-	is created a duplication in numbering, reads as follows:
59		-	There are hereby specifically exempted from the tax levied by
60		-	Section 1350 et seq. of Title 68 of the Oklahoma Statutes sales of
61		-	tangible personal prope rty to be and in fact used in the growing of
62		-	marijuana for medical marij uana products such as but not limited to
63		-	soil, fertilizer, seed or plants to any person regularly engaged in
64		-	raising marijuana for medical marijuana production .
	47	+	SECTION 1. AMENDATORY 68 O. S. 2021, Section 1358, is
	48	+	amended to read as follows:
	49	+	Section 1358. Exemptions – Agriculture.
	50	+	A. There are hereby specifically exempted from the tax levied
	51	+	by Section 1350 et seq. of this title:
	52	+	1. Sales of agricultural products produced in this state b y the
	53	+	producer thereof directly to the consumer or user when s uch articles
	54	+	are sold at or from a farm and not fr om some other place of
	55	+	business, as follows:
	56	+	a. farm, orchard, or garden products, and
	57	+	b. dairy products sold by a dairy producer or farmer who
	58	+	owns all the cows from which the dairy products
	59	+	offered for sale are produced;
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66		-	SB133 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
	61	+	ENGR. S. B. NO. 133 Page 2 1
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	86	+	provided, the provisions of this paragraph shall not be construed as
	87	+	exempting sales by florists, nursery operators , or chicken
	88	+	hatcheries, or sales of dairy products by any oth er business except
	89	+	as set out herein;
	90	+	2. Livestock, including cattle, horses, mules, or other
	91	+	domestic or draft animals, sold by the producer by private treaty or
	92	+	at a special livestock sale;
	93	+	3. Sale of baby chicks, turkey poults , and starter pullets use d
	94	+	in the commercial production of chickens, turkeys, and eggs,;
	95	+	provided, that the purchaser certifies, in writi ng, on the copy of
	96	+	the invoice or sales ticket to be retained by the vendor that the
	97	+	pullets will be used primarily for egg production;
	98	+	4. Sale of salt, grains, tankage, oyster shells, mineral
	99	+	supplements, limestone, and other generally recognized animal feeds
	100	+	for the following purposes and subject to the following limitations:
	101	+	a. feed which is fed to poultry and livestock , including
	102	+	breeding stock and wool-bearing stock, for the purpose
	103	+	of producing eggs, poultry, milk, or meat for human
	104	+	consumption,
	105	+	b. feed purchased in Oklahoma for the purpose of being
	106	+	fed to and which is fed by the purchaser to horses,
	107	+	mules, or other domestic or draft animals used
	108	+	directly in the producing and marketing of
	109	+	agricultural products, and
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	136	+	c. any stock tonics, water purifying products, stock
	137	+	sprays, disinfectants , or other such agricultural
	138	+	supplies.
	139	+	“Poultry” shall not be construed to include any fowl other than
	140	+	domestic fowl kept and raised for the market or production of eggs .
	141	+	“Livestock” shall not be construed to include a ny pet animals such
	142	+	as dogs, cats, birds , or such other fur-bearing animals. This
	143	+	exemption shall only be granted and extended where the purcha ser of
	144	+	feed that is to be used and in fact is used for a purpose that would
	145	+	bring about an exemption hereunder e xecutes an invoice or sales
	146	+	ticket in duplicate on a form to be prescribed by the Oklahoma Tax
	147	+	Commission. The purchaser may demand and receive a copy of the
	148	+	invoice or sales ticket and the vendor shall retain a copy;
	149	+	5. Sales of items to be and in fact used in the production of
	150	+	agricultural products. Sale of the following items shall be subject
	151	+	to the following limitations:
	152	+	a. sales of agricultural fertilizer to any person
	153	+	regularly engaged, for profit, in the business of
	154	+	farming or ranching,
	155	+	b. sales of agricultural fertilizer to any person engaged
	156	+	in the business of applying such materials on a
	157	+	contract or custom basis to land owned or leased and
	158	+	operated by persons regularly engaged, for profit, in
	159	+	the business of farming or ranching. In addition to
	160	+
	161	+	ENGR. S. B. NO. 133 Page 4 1
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	186	+	providing the vendor proof of eligibility as provided
	187	+	in Section 1358.1 of this title, the purchaser shall
	188	+	provide the name or names of such own er or lessee and
	189	+	operator and the location of the lands on which said
	190	+	the materials are to be applied to each such l and,
	191	+	c. sales of agricultural fertilizer, pharmaceuticals , and
	192	+	biologicals to persons engaged in the business of
	193	+	applying such materials on a co ntract or custom basis
	194	+	shall not be considered to be sales to contractors
	195	+	under this article, and said such sales shall not be
	196	+	considered to be taxable sales within the meaning of
	197	+	the Oklahoma Sales Tax Code. As used in this section,
	198	+	“agricultural fertilizer ”, “pharmaceuticals”, and
	199	+	“biologicals” mean any substance sold and used for
	200	+	soil enrichment or soil corrective pu rposes or for
	201	+	promoting the growth and productivity of plants or
	202	+	animals,
	203	+	d. sales of agricultural seed or plants to any person
	204	+	regularly engaged, for profit, in the business of
	205	+	farming or ranching. This section shall not be
	206	+	construed as exempting from sa les tax, seed which is
	207	+	packaged and sold for use in noncommercial flower and
	208	+	vegetable gardens, and
	209	+
	210	+	ENGR. S. B. NO. 133 Page 5 1
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	235	+	e. sales of agricultural chemical pesticid es to any
	236	+	person regularly engaged, for profit, in the business
	237	+	of farming or ranching. For the purposes of this
	238	+	subparagraph, “agricultural chemical pesticides ” shall
	239	+	include any substance or mixture of substances
	240	+	intended for preventing, destroying, rep elling, or
	241	+	mitigating any insect, snail, slug, rodent, bird,
	242	+	nematode, fungus, weed, or any other form of
	243	+	terrestrial or aquatic plant or animal life or virus,
	244	+	bacteria, or other microorganism, except viruses,
	245	+	bacteria, or other microorganisms on or in liv ing man,
	246	+	or any substance or mixture of substances intended for
	247	+	use as a plant regulator, defoliant , or desiccant.
	248	+	The exemption provided in this paragraph shall only be granted
	249	+	and extended to the purchaser where the items are to be used and in
	250	+	fact are used in the production of ag ricultural products;
	251	+	6. Sale of farm machinery, repair parts thereto or fuel, oil,
	252	+	lubricants, and other substances used for operation and maintenance
	253	+	of the farm machinery to be used directly on a farm or ranch in the
	254	+	production, cultivation, planting, s owing, harvesting, processing,
	255	+	spraying, preservation, or irrigation of any livestock, poul try,
	256	+	agricultural, or dairy products produced from such lands. The
	257	+	exemption specified in this paragraph shall apply to such farm
	258	+	machinery, repair parts, or fuel, oil, lubricants, and other
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	285	+	substances used by persons engaged in the business of custom
	286	+	production, cultivation, planting, sowing, harvesting, processing,
	287	+	spraying, preservation, or irrigation of any livestock, poultry,
	288	+	agricultural, or dairy products for f armers or ranchers. The
	289	+	exemption provided for herein shall not apply to motor vehicles;
	290	+	7. Sales of supplies, machinery , and equipment to persons
	291	+	regularly engaged in the business of raising evergreen trees for
	292	+	retail sale in which such trees are cut do wn on the premises by the
	293	+	consumer purchasing such tree. This exemption shall only be gra nted
	294	+	and extended when the items in fact are used in the raising of such
	295	+	evergreen trees; and
	296	+	8. Sales of materials, supplies , and equipment to an
	297	+	agricultural permit holder or to any person with whom the permit
	298	+	holder has contracted to construct faciliti es which are or which
	299	+	will be used directly in the production of any livestock , including,
	300	+	but not limited to, facilities used in the prod uction and storage of
	301	+	feed for livestock owned by the permit holder. Any person making
	302	+	purchases on behalf of the agr icultural permit holder shall certify,
	303	+	in writing, on the copy of the invoice or sales ticket to be
	304	+	retained by the vendor , that the purchases are made for and on
	305	+	behalf of such permit holder and set out the name and permit number
	306	+	of such holder. Any pers on who wrongfully or erroneously certifies
	307	+	that purchases are for an agricultural permit holder or who
	308	+	otherwise violates this subsection shall be guilty of a misdeme anor
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	335	+	and upon conviction thereof shall be punishable by a fine of an
	336	+	amount equal to doubl e the amount of sales tax involved or
	337	+	imprisonment in the county jail for not more than sixty (60) days or
	338	+	by both such fine and imprisonm ent.
	339	+	B. As used in this sec tion and Section 1358.1 of this title:
	340	+	1. “Agricultural products” shall include horses and shall not
	341	+	include the growing, harvesting, and processing of marijuana as
	342	+	defined in paragraph 28 of Section 427.2 of Title 63 of the Ok lahoma
	343	+	Statutes; and
	344	+	2. “Ranching” or “ranch” shall include the business, or
	345	+	facilities for the business, of rais ing horses.
	346	+	Provided, sales of items at race meetings as defined in Section
	347	+	200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
	348	+	pursuant to the provisions of th is section and Section 1358.1 of
	349	+	this title.
92	350		SECTION 2. This act shall become effective November 1, 2023.
93	351
94		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
95		-	04/17/2023 - DO PASS, As Amended and Coauthored.
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	377	+	Passed the Senate the 21st day of March, 2023.
	378	+
	379	+
	380	+
	381	+	Presiding Officer of the Senate
	382	+
	383	+
	384	+	Passed the House of Representatives the ____ day of __________,
	385	+	2023.
	386	+
	387	+
	388	+
	389	+	Presiding Officer of the House
	390	+	of Representatives
	391	+