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SENATE FLOOR VERSION
February 26, 2024
AS AMENDED
SENATE BILL NO. 1502 By: Rader and Rogers of the
Senate
and
Fetgatter of the House
[ sales tax - exemption - property and services -
effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356, as
last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
2023, Section 1356), is amended to read as follows:
Section 1356. Exemptions - Governmental and nonprofit entities.
There are hereby specifica lly exempted from the tax levied by
Section 1350 et seq. of th is title:
A. All sales to contractors i n connection with the performance
of any contract with any entity exempted pursuant to subsection B of
this section shall be exempted from the tax levied by Section 1350
et seq. of this title in the same manner as the exempt en tity;
B. 1. Sale Sales of tangible personal property or services t o
the United States government or to the Sta te of Oklahoma, any
political subdivision of this state or any agency of a political
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subdivision of this state; provided, all sales to contractors in
connection with the per formance of any contract with the Unite d
States government, State of Oklahoma or any of its political
subdivisions shall not be exempted from the tax levied by Section
1350 et seq. of this title, except as hereinafter provided ;
2. Sales of property to agents appointed by or under contract
with agencies or instrumentalities of the United States government
if ownership and possession of such property transfers immediately
to the United States government;
3. Sales of property to age nts appointed by or under contract
with a political subdivision o f this state if the sale of such
property is associated with the development of a qualified federal
facility, as provided in the Oklahoma Federal Facilities Development
Act, and if ownership and possession of such property transfers
immediately to the poli tical subdivision or the state;
4. Sales made directly by county, d istrict or state fair
authorities of this state, upon the pr emises of the fair authority,
for the sole benefit of the fair authority or sales of admi ssion
tickets to such fairs or fair eve nts at any location in the state
authorized by county, district or state fair authorities; provided,
the exemption provided by t his paragraph for admission tickets to
fair events shall apply only to any portion of the admission price
that is retained by or distributed to the fair authority. As used
in this paragraph, “fair event” shall be limited to an event held on
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the premises of the fair authority in conjunction with and during
the time period of a county, district or state fair;
5. Sale Sales of food in cafeterias or lunchrooms of elementary
schools, high schools, colleges or universities which are operated
primarily for teachers a nd pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraternal, religious, civic, charitable o r
educational societies or organizations by regular members thereof,
provided, such societies or organizations operate under w hat is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a p rofit which inures
to the benefit of any individual member or members thereof to the
exclusion of other members and dues paid monthly or annually to
privately owned scientific and educational libraries by members
sharing the use of services rendered by such libraries wi th students
interested in the study of geolo gy, petroleum engineering or related
subjects;
7. Sale Sales of tangible personal prop erty or services to or
by churches, except sales made in the c ourse of business for profit
or savings, competing with other persons engaged in the same or a
similar business or sale sales of tangible personal property or
services by an organiz ation exempt from federal income tax pursuant
to Section 501(c)(3) of the Internal Revenue Code of 1986, as
amended, made on behalf of or at the reque st of a church or churches
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if the sale of such property is conducted not more than once each
calendar year for a period not t o exceed three (3) days by the
organization and proceeds from the sale of such property are used by
the church or churches or by th e organization for charitable
purposes;
8. The amount of proceeds received from the sale sales of
admission tickets which is separately stated on the ticket of
admission for the repayment of money borrowed by any accredited
state-supported college or university or any public trust of which a
county in this state is the beneficiary, for the purpose of
constructing or enlarging any fa cility to be used for the staging of
an athletic event, a thea trical production, or any other form of
entertainment, edificatio n or cultural cultivation to which entry is
gained with a paid admission ticket. Such facilit ies include, but
are not limited to, athletic fields, athletic stadiums, field
houses, amphitheaters and theaters. To be eligible for this sales
tax exemption, the am ount separately stated on the admission tick et
shall be a surcharge which is imposed, collected and used for the
sole purpose of servicing or aiding in the servicing of debt
incurred by the college or university to effect the capital
improvements hereinbefore described;
9. Sales of tangible persona l property or services to the
council organizations or similar state supervisory organizations of
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the Boy Scouts of America, Girl Scouts of the U.S.A. and Camp Fire
USA;
10. Sale Sales of tangible personal property or ser vices to any
county, municipality, rural water district, public school distr ict,
city-county library system, the instituti ons of The Oklahoma State
System of Higher Education, the Gra nd River Dam Authority, the
Northeast Oklahoma Public Faci lities Authority, the Oklahoma
Municipal Power Authority, City of Tulsa-Rogers County Port
Authority, Muskogee City -County Port Authority, the Oklahoma
Department of Veterans Affa irs, the Broken Bow Economic Development
Authority, Ardmore Development Authority, Durant In dustrial
Authority, Oklahoma Ordna nce Works Authority, Central Oklahoma
Master Conservancy District, Arbuckle Master Conse rvancy District,
Fort Cobb Reservoir Master Conservancy Distr ict, Foss Reservoir
Master Conservancy District, Mountain Park Master Conservancy
District, Waurika Lake Master Conservancy Dis trict and the Office of
Management and Enterprise Services onl y when carrying out a public
construction contract on behalf of the Oklahoma D epartment of
Veterans Affairs, and effective July 1, 2022, the Universit y
Hospitals Trust, or to any person with whom any of the above-named
subdivisions or agencies of this state has duly enter ed into a
public contract pursuant to law, necessary for carry ing out such
public contract or to any subcontracto r to such a public contract.
Any person making purchases on beha lf of such subdivision or agency
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of this state shall certify, in writing, on t he copy of the invoice
or sales ticket to be retained by the v endor that the purchases are
made for and on behalf of such subdivision or agency of this state
and set out the name of such public subdivision or agency. Any
person who wrongfully or erroneous ly certifies that purchases are
for any of the above -named subdivisions or agencies of this state or
who otherwise violates this section shall be guilty of a misdemeanor
and upon conviction thereof shall be fined a n amount equal to double
the amount of sales tax involved or incarcerated for not more than
sixty (60) days or both;
11. Sales of tangible personal property or services to pri vate
institutions of higher education and pr ivate elementary and
secondary institutions of education accredited by the St ate
Department of Education or registered by the State Board o f
Education for purposes of participating in federal programs or
accredited as defined by the Oklahoma State Regents for Higher
Education which are exemp t from taxation pursuant to the provision s
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) i ncluding
materials, supplies and equipment used in the construction and
improvement of buildings and other structures owned by the
institutions and operated for educational p urposes.
Any person, firm, agency or entity making purchases on behalf of
any institution, agency or subdivision in this state, shall certify
in writing, on the copy of the invoice or sales ticket th e nature of
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the purchases, and viola tion of this paragraph shall be a
misdemeanor as set forth in paragraph 10 of this section;
12. Tuition and educational f ees paid to private institutions
of higher education a nd private elementary and secondary
institutions of education accredited by the State Department of
Education or registered by the State Board of Education for purposes
of participating in federal programs or accredited as defined by t he
Oklahoma State Regents for Higher Education which are exempt f rom
taxation pursuant to the provisi ons of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made by:
(1) a public school,
(2) a private school offering instructi on for grade
levels kindergarten through twe lfth grade,
(3) a public school district,
(4) a public or private school board,
(5) a public or private school student group or
organization,
(6) a parent-teacher association or organization
other than as specified in subparagraph b of this
paragraph, or
(7) public or private school personne l for purposes
of raising funds for the benefit of a public or
private school, public school district, public or
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private school board or public or private school
student group or organization, or
b. Sales of tangible per sonal property made by or to
nonprofit parent-teacher associations or organizations
exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
nonprofit local public or private school foundations
which solicit money or property in the name of any
public or private school o r public school district.
The exemption provided by this paragraph for sales made by a
public or private school shall be limited to those public or private
schools accredited by the State De partment of Education or
registered by the State Board of Education for purposes of
participating in federal programs. Sale Sales of tangible personal
property in this paragraph shall includ e sale sales of admission
tickets and concessions at athletic events;
14. Sales of tangible personal property by:
a. local 4-H clubs,
b. county, regional or state 4-H councils,
c. county, regional or state 4 -H committees,
d. 4-H leader associations,
e. county, regional or state 4-H foundations, and
f. authorized 4-H camps and training centers.
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The exemption provided by this paragraph shall be limited to
sales for the purpose of raising funds for the benefit of such
organizations. Sale Sales of tangible personal property exempted by
this paragraph shall include sale sales of admission tickets;
15. The first Seventy-five Thousand Dollars ($75,000.0 0) each
year from sale sales of tickets and concessions at athletic events
by each organization exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible person al property or services to a ny
person with whom the Oklahoma Tourism and Recreation Department has
entered into a public contract and which is necessary for carr ying
out such contract to assist the Department in the development and
production of advertising, promotion, publicity and public relations
programs;
17. Sales of tangible personal property or services to fir e
departments organized pursuant to Section 592 of Title 18 of the
Oklahoma Statutes which items are to be used for the purposes of the
fire department. Any person maki ng purchases on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales ticket to be retain ed by the vendor that the
purchases are made for and on behalf of such fire department and set
out the name of such fire de partment. Any person who wrongfully or
erroneously certifies that the purchases are fo r any such fire
department or who otherwise violates the provisions of this section
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shall be deemed guilty of a mis demeanor and upon convictio n thereof,
shall be fined an amount equal to double the amount of sales tax
involved or incarcerated for not more than sixty (60) days , or both;
18. Complimentary or free tickets for admission to places of
amusement, sports, entertainment, exhibition, display or other
recreational events or activities which are issued through a box
office or other entity which is ope rated by a state institution of
higher education with institution al employees or by a municipality
with municipal employees;
19. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property by fire departments
organized pursuant to Title s 11, 18, or 19 of the Oklahoma Statutes
for the purposes of raising funds for the benefit of the fire
department. Fire departments sell ing tangible personal property for
the purposes of raising funds shall be limited to no more than s ix
(6) days each year to raise such funds in order to receive the
exemption granted by this paragraph;
20. Sales of tangible personal propert y or services to any Boys
& Girls Clubs of America affiliate in this state which is not
affiliated with the Salvation Army and which i s exempt from taxation
pursuant to the provis ions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible pe rsonal property or services to any
organization, which takes court -adjudicated juveniles for purposes
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of rehabilitation, and which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U .S.C., Section
501(c)(3), provided that at least fifty percent (50%) of the
juveniles served by such organization are court adjudicated and the
organization receives state funds in an amount less than ten p ercent
(10%) of the annual budget of the organization;
22. Sales of tangible personal pr operty or services to:
a. any health center as defined in Section 254b of Title
42 of the United State s Code,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revolving Fund pursuant
to the provisions of Secti on 66 of Title 56 of the
Oklahoma Statutes,
c. any community-based health center which meets all of
the following criteria:
(1) provides primary care services at no cost to the
recipient, and
(2) is exempt from taxation pursuant to the
provisions of Section 501(c )(3) of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3), and
d. any community mental health center as defined in
Section 3-302 of Title 43A of the Oklahoma Statutes ;
23. Dues or fees including free or complimentar y dues or fees
which have a value equivalent to the charge that could have
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otherwise been made, to YMCAs, YWCAs or municipally -owned recreation
centers for the use of facilities and programs;
24. The first Fifteen Thousand Dollars ($15,000.00) each year
from sales of tangible personal property o r services to or by a
cultural organization established to sponsor and promote
educational, charitab le and cultural events for disadvantaged
children, and which orga nization is exempt from taxation pursuant to
the provisions of the Internal R evenue Code, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible pe rsonal property or services to museums
or other entities which hav e been accredited by the American
Association Alliance of Museums. Any person making purchases on
behalf of any such museum or other entity sha ll certify, in writing,
on the copy of the invoice or sales ticket to be retained by the
vendor that the purchases are made for and on behalf of such museum
or other entity and set out the name of such museum or othe r entity.
Any person who wrongfully or erroneously certifies that the
purchases are for any such museum or other entity or who otherwise
violates the provisions of this paragraph shall be deemed g uilty of
a misdemeanor and, upon conviction thereof, shall be fined an amount
equal to double the a mount of sales tax involved or incarcerated for
not more than sixty (60) days, or by both su ch fine and
incarceration;
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26. Sales of tickets for admission by any museum accredited by
the American Association Alliance of Museums. In order to be
eligible for the exemption provided by this paragraph, an amount
equivalent to the amount of the tax which would otherwise be
required to be collected pursuant to the p rovisions of Section 135 0
et seq. of this title shall be separately stated on the admission
ticket and shall be collected and used for the sole purpose of
servicing or aiding in the servicing of debt incurred by the museum
to effect the construction, enlarging or renovation of an y facility
to be used for entertain ment, edification or cultural cultivation to
which entry is gained with a paid admissi on ticket;
27. Sales of tangible personal property or services oc curring
on or after June 1, 1995, to children ’s homes which are suppo rted or
sponsored by one or more churches, m embers of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veterans , Department of
Oklahoma, Inc., and subordinate chapt ers thereof;
29. Sales of tangible personal property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as trustees of the organi zation;
30. a. Until July 1, 2022, transfer o f tangible personal
property made pursuant to Section 3226 of Title 63 of
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the Oklahoma Statutes by the University Hospitals
Trust, and
b. Effective July 1, 2022, transfer of tangible personal
property or services to or by:
(1) the University Hospitals Trust created pursuant
to Section 3224 of Title 63 of the Oklahoma
Statutes, or
(2) nonprofit entities which are exempt from taxation
pursuant to the provisions of the Internal
Revenue Code of the United States, 26 U.S.C.,
Section 501(c)(3), which have entered into a
joint operating agreement with the University
Hospitals Trust;
31. Sales of tangible personal property or services to a
municipality, county or school district pursuant to a lease or
lease-purchase agreement executed be tween the vendor and a
municipality, county or sch ool district. A copy of the lease or
lease-purchase agreement shall be ret ained by the vendor;
32. Sales of tangible personal property or services to any
spaceport user, as defined in the Oklahoma Space Industry
Development Act;
33. The sale, use, storage, consumption or distribution in this
state, whether by the importer, exporter or another person, of any
satellite or any associated launch vehicle including component s of,
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and parts and motors for, any s uch satellite or launch vehicle,
imported or caused to be imported into this state for the pur pose of
export by means of launching into space. This exemption provided by
this paragraph shall not be affected by:
a. the destruction in whole or in part of the satellite
or launch vehicle,
b. the failure of a launch to occur or be successful, or
c. the absence of any transfer or title to, or possession
of, the satellite or launch vehicle after launch;
34. The sale, lease, u se, storage, consumption or distribut ion
in this state of any space facility, space propulsion system or
space vehicle, satellite o r station of any kind possessing space
flight capacity including components thereof;
35. The sale, lease, use, storage, consumption or distribut ion
in this state of tangible personal proper ty, placed on or used
aboard any space facility, space propulsion system or space vehicle,
satellite, or station possessing space flight capacity, which is
launched into space, irrespective o f whether such tangible property
is returned to this state for subsequent use, storage, or
consumption in any manner;
36. The sale, lease, use, storage, consumption or distribution
in this state of tangible personal property meeting the definition
of “section 38 property” as defined in Sections 48(a)(1)(A) and
(B)(i) of the Internal Revenue Code of 1986, that is an integral
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part of and used primarily in support of space flight; however,
section 38 property used in support of space flight shall not
include general office equipment, any boat, m obile home, motor
vehicle or other vehicle of a class or type required to be
registered, licensed, titled or documented in this state or by the
United States government, or any other property not specifically
suited to supporting space activity. The term “in support of space
flight”, for purposes of this paragraph, means the altering,
monitoring, controlling, regulating, adjusting, servicing or
repairing of any space facility, space propulsion systems or space
vehicle, satellite or station possessing space flight capacity
including the components thereof;
37. The purchase or lease of machinery and equipment for use at
a fixed location in this state, which is used exclusively in the
manufacturing, processing, compounding or producing of any space
facility, space propulsion system or s pace vehicle, satellite or
station of any kind possessing space fl ight capacity. Provided, the
exemption provided for in this paragraph shall not be allowed unless
the purchaser or lessee si gns an affidavit stating that the ite m or
items to be exempted are for the exclusive use designated herein.
Any person furnishing a false affidavit to the vendor for the
purpose of evading payment of any tax imposed by Section 1354 of
this title shall be subject to the penal ties provided by law. As
used in this paragraph, “machinery and equipment” means “section 38
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property” as defined in Sections 48(a)(1)(A) and (B)(i) of the
Internal Revenue Code of 1986, which is used as an integral part of
the manufacturing, processing, compounding or producing of items of
tangible personal property. Such term includes parts and
accessories only to the extent that the exemption thereof is
consistent with the provisions of this paragraph;
38. The amount of a surcharge or any other amount which is
separately stated on an admission t icket which is imposed, collected
and used for the sole pu rpose of constructing, remodeling or
enlarging facilities of a public trust having a municipality or
county as its sole beneficiary;
39. Sales of tangible personal prope rty or services which are
directly used in or for the benefit of a state park in this state,
which are made to an organization which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) and which is organized primarily for the purpose
of supporting one or more state parks located in t his state;
40. The sale, lease or use of parking privileges by an
institution of The Oklahoma State System of Higher Education;
41. Sales of tangible personal property or services for use on
campus or school construction projects for the benefit of
institutions of The Oklahoma State System of Higher Education,
private institutions of higher education accredited by the Oklahoma
State Regents for Higher Ed ucation or any public school or school
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district when such projects are financed by or through the use o f
nonprofit entities which are exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
42. Sales of tangible personal property or services by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), in the course of conducting a national championship
sports event, but on ly if all or a portion of the payment in
exchange therefor would qualify as the receipt of a qualified
sponsorship payment described in Internal Revenue Code, 26 U.S.C.,
Section 513(i). Sales exempted pursuant to this paragraph shall be
exempt from all Oklahoma sales, use, excise and gross receipts
taxes;
43. Sales of tangible personal property or services to or by an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3),
b. is affiliated with a comprehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and teacher training and
conducting events relating to robotics;
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44. The first Fifteen Thousand Dollars ($15 ,000.00) each year
from sales of tangible personal property to or by youth athletic
teams which are part of an athletic organization exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(4), for the purposes of raising funds for the
benefit of the team;
45. Sales of tickets for admission to a collegiate athletic
event that is held in a facility owned or operated by a municipality
or a public trust of which the municipali ty is the sole beneficiary
and that actually determines or is part of a tournament or
tournament process for determining a conferen ce tournament
championship, a conference championship, or a national championship;
46. Sales of tangible personal property or se rvices to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) and is operating the Oklahoma City National Memorial and
Museum, an affiliate of the National Park Syste m;
47. Sales of tangible personal pr operty or services to
organizations which are exem pt from federal taxation pursuant to the
provisions of Section 501(c)(3) of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3), the memberships of which are limited to
honorably discharged veterans, and which furnish financial su pport
to area veterans’ organizations to be used for the purpose o f
constructing a memorial or museum;
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48. Sales of tangible personal property or services on or after
January 1, 2003, to an organization which is exempt from tax ation
pursuant to the provisions of the Internal R evenue Code, 26 U.S.C.,
Section 501(c)(3) th at is expending monies received from a private
foundation grant in conjunction with expenditures of local sales tax
revenue to construct a local public library;
49. Sales of tangible person al property or service s to a state
that borders this state or any political subdivision of that state,
but only to the extent that the other state or political subdivision
exempts or does not impose a tax on similar sales of ite ms to this
state or a political subdivision of thi s state;
50. Effective July 1, 2005, sales of tangible personal property
or services to the Career Technology Student Organizations under the
direction and supervision of the Oklahoma Depa rtment of Career and
Technology Education;
51. Sales of tangible p ersonal property to a public trust
having either a single city, town or county or multiple cities,
towns or counties or combination thereof as beneficiary or
beneficiaries or a nonprofit organization which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) for the purpose of constructing
improvements to or expanding a hospital or nursing home owned and
operated by any such public tru st or nonprofit entity prior to July
1, 2008, in counties with a po pulation of less than one hundred
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thousand (100,000) persons, according to the most recent Federal
Decennial Census. As used in this paragraph, “constructing
improvements to or expanding” shall not mean any expense for routine
maintenance or general repai rs and shall require a project cost of
at least One Hundred Thousand Dollars ($100,000.00). For purposes
of this paragraph, sales made to a contractor or subcontractor that
enters into a contractual relationship with a public trust or
nonprofit entity as described by this paragraph shall be conside red
sales made to the public trust or nonprofit entity. The exemption
authorized by this paragraph shall be administered in the form of a
refund from the sales tax revenues apportioned pursuant to Section
1353 of this title and the vendor shall be require d to collect the
sales tax otherwise applicable to the transaction. The purchaser
may apply for a refund of the sales tax p aid in the manner
prescribed by this paragraph. Within thirty ( 30) days after the end
of each fiscal year, any purchaser that is en titled to make
application for a refund based upon the exempt treatment authorized
by this paragraph may file an application for refund of the sales
taxes paid during such preceding fiscal year. The Oklahoma Tax
Commission shall prescribe a form for purposes of ma king the
application for refund. The Tax Commission shall determine whether
or not the total amount of sales tax exemptions claimed by all
purchasers is equal to or less than Six H undred Fifty Thousand
Dollars ($650,000.00). If such claims are less than or equal to
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that amount, the Tax Commission shall make refunds to the purchasers
in the full amount of the documente d and verified sales tax amounts.
If such claims by all purchasers are in excess of Six Hundred Fifty
Thousand Dollars ($650,000.00), the T ax Commission shall determine
the amount of each purchaser ’s claim, the total amount of all claims
by all purchasers, and th e percentage each purchaser’s claim amount
bears to the total. The resulting percentage determined for each
purchaser shall be mult iplied by Six Hundred Fifty Thousand Dollars
($650,000.00) to determine the amount of refundable sales tax to be
paid to each purchaser. The pro rata re fund amount shall be the
only method to recover sales taxes paid during the preceding fiscal
year and no balance of any sales taxes paid on a pro rata basis
shall be the subject of any subsequent refund claim pursuant to this
paragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, trains, ed ucates, and
provides housing for physically and mentally handicapped persons and
which is exempt from taxation pursu ant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that
receives at least eighty-five percent (85%) of its annual budget
from state or federal funds. In order to receive the benefit of the
exemption authorized by this paragraph, the taxpay er shall be
required to make payment of the app licable sales tax at the time o f
sale to the vendor in the manner otherwise required by law.
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Notwithstanding any other provision of the Oklahoma Uniform Tax
Procedure Code to the contrary, t he taxpayer shall be authorized to
file a claim for refund of sales taxes paid that qualify for the
exemption authorized by this paragraph f or a period of one (1) year
after the date of the sale transaction. The taxpayer shall be
required to provide documentation as may be p rescribed by the
Oklahoma Tax Commission in s upport of the refund claim. Th e total
amount of sales tax qualifying for e xempt treatment pursuant to this
paragraph shall not exceed One Hundre d Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for refund shall be
processed in the order in which such claims are re ceived by the
Oklahoma Tax Commission. If a claim otherwise timely filed exceeds
the total amount of refunds payable for a fiscal year, such claim
shall be barred;
53. The first Two Thousand Dollars ($2,000.00) each year of
sales of tangible personal pro perty or services to, by, or for the
benefit of a qualified neighborhood watch organization that is
endorsed or supported by or working directly with a law enfo rcement
agency with jurisdiction in t he area in which the neighborhood watch
organization is located. As used in this paragraph, “qualified
neighborhood watch organization” means an organization that is a
not-for-profit corporation under the laws of the State of Oklahoma
this state that was created to help prevent crim inal activity in an
area through community involvement and interaction with local law
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enforcement and which is one of the first two thousand organizations
which makes application to the Oklah oma Tax Commission for the
exemption after March 29, 2006;
54. Sales of tangible personal property to a no nprofit
organization, exempt from t axation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
primarily for the purpose of providing services to homeless persons
during the day and located in a metropolitan are a with a population
in excess of five hundre d thousand (500,000) persons according to
the latest Federal Decennial Census. The exemption authorized by
this paragraph shall be applicable to sales of tangible personal
property to a qualified entity occurrin g on or after January 1,
2005;
55. Sales of tangible personal property or services to or by an
organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpos e of which is to provide
funding for the preservation of wetlands and habitat for wild ducks;
56. Sales of tangible personal property or services to or by an
organization which is exemp t from taxation pursuant to the
provisions of the Internal Revenue Cod e, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation and conservation of wild turkeys;
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57. Sales of tangible personal property or services to an
organization which:
a. is exempt from taxation pursuant to the provisions of
the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and
b. is part of a network of community -based, autonomous
member organizations that meets the fol lowing
criteria:
(1) serves people with workplace disadvantages and
disabilities by providing job trainin g and
employment services, as well as job placement
opportunities and post -employment support,
(2) has locations in the United States and at least
twenty other countries,
(3) collects donated clothing and household goods to
sell in retail stores and provides contract labor
services to business and government, and
(4) provides documentation to the Oklahoma Tax
Commission that over seventy -five percent (75%)
of its revenues are chann eled into employment,
job training and pla cement programs and other
critical community services;
58. Sales of tickets made on or after September 21, 2005, and
complimentary or free tickets for admission issued on or after
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September 21, 2005, which have a value equivalent to the charge that
would have otherwise been made, for admiss ion to a professional
athletic event in which a team in the National Basketball
Association is a participant, whi ch is held in a facility owned or
operated by a municipality, a c ounty or a public trust of which a
municipality or a county is the sole benef iciary, and sales of
tickets made on or after July 1, 2007, and complimentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the c harge that would have otherwise been made,
for admission to a professional ath letic event in which a team in
the National Hockey League is a participant, which is held in a
facility owned or operated by a municipality, a county or a public
trust of which a municipality or a county is the sole bene ficiary;
59. Sales of tickets for admission and complimentary or free
tickets for admission which have a value equivalent to the charge
that would have otherwise been m ade to a professional sporting event
involving ice hockey, baseball, basketball, footba ll or arena
football, or soccer. A s used in this paragraph, “professional
sporting event” means an organized athletic competition between
teams that are members of an organized league o r association with
centralized management, other than a national leagu e or national
association, that imp oses requirements for participation in the
league upon the teams, the individual athletes or both, and which
uses a salary structure t o compensate the athletes;
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60. Sales of tickets for admission to an annual event spons ored
by an educational and charita ble organization of women which is
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission
promoting volunteerism, developing the potential of women and
improving the community throu gh the effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which is itself a member of an organization which is
exempt from taxation pursuant to the provisions of the Interna l
Revenue Code, 26 U.S.C., Section 50 1(c)(3), if the membership
organization is primarily engaged in advanc ing the purposes of its
member organizations through fundraising, public awareness or other
efforts for the benefit of its member organizations, and if the
member organization is primarily engaged either in providi ng
educational services and programs conce rning health-related diseases
and conditions to individuals suffering from such health -related
diseases and conditions or their caregivers and family members or
support to such individua ls, or in health-related research as to
such diseases and conditions, or both. In order to qualify for the
exemption authorized by this paragraph, the member nonprof it
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organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the memb ership organization;
62. Sales of tangibl e personal property or services to or by an
organization which is part of a national volun teer women’s service
organization dedicated to promoting pa triotism, preserving American
history and securing better educati on for children and which has at
least 168,000 members in 3,000 chapters across the United States;
63. Sales of tangible personal property or services to or by a
YWCA or YMCA organization which is part of a nat ional nonprofit
community service organizatio n working to meet the health and social
service needs of its members across the United States;
64. Sales of tangible personal property or serv ices to or by a
veteran’s organization which is exempt from taxation pursuant to the
provisions of the Internal R evenue Code, 26 U.S.C., Section
501(c)(19) and which is known as the Veterans of Foreign Wars of the
United States, Oklahoma Chapters Department of Oklahoma ;
65. Sales of boxes of food by a church or by an orga nization,
which is exempt from taxation pursu ant to the provisions of the
Internal Revenue Code, 26 U.S.C., Se ction 501(c)(3). To qualify
under the provisions of this paragraph, the organization must be
organized for the primary purpo se of feeding needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes shall only contain edible staple food
items;
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66. Sales of tangible personal property or s ervices to any
person with whom a church has duly enter ed into a construction
contract, necessary fo r carrying out such contract or to any
subcontractor to such a co nstruction contract;
67. Sales of tangible personal property or services used
exclusively for charita ble or educational purp oses, to or by an
organization which:
a. is exempt from taxation p ursuant to the provisions of
the Internal Revenue Code, 26 U.S.C. , Section
501(c)(3),
b. has filed a Not-for-Profit Certificate of
Incorporation in this sta te, and
c. is organized for the purpose of:
(1) providing training and education to
developmentally disabled individuals,
(2) educating the community about the right s,
abilities and strengths of developmentally
disabled individuals, and
(3) promoting unity among deve lopmentally disabled
individuals in their community and geographic
area;
68. Sales of tangible personal property or services to any
organization which is a shelter for abused, neglected, or abandoned
children and which is exempt from taxation p ursuant to the
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provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3); provided, unti l July 1, 2008, such exemption sha ll apply
only to eligible shelt ers for children from birth to age twelve (12)
and after July 1, 2008, such exemption shall apply to e ligible
shelters for children from birth to age eighteen (18);
69. Sales of tangible per sonal property or service s to a child
care center which is licens ed pursuant to the Oklahoma Child Care
Facilities Licensing Act and which:
a. possesses a 3-star rating from the Department of Human
Services Reaching for the Stars Program or a national
accreditation, and
b. allows on-site universal prekindergarten educat ion to
be provided to four-year-old children through a
contractual agreement with any public school or school
district.
For the purposes of this paragraph, sales made to any person,
firm, agency or entity that has en tered previously into a
contractual relationship with a child care center for construction
and improvement of buildings and other s tructures owned by the child
care center and operated f or educational purposes shall be
considered sales made to a child care cent er. Any such person,
firm, agency or entity making purchases on behalf of a child care
center shall certify, in writing, on the copy of the invoice or
sales ticket the nature of the purchase. Any such person, or person
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acting on behalf of a firm, ag ency or entity making purchases on
behalf of a child care center in violation of this paragraph shall
be guilty of a misdemeanor an d upon conviction thereof shall be
fined an amount equa l to double the amount of sales tax involved or
incarcerated for not more t han sixty (60) days or both;
70. a. Sales of tangible personal property to a service
organization of mothers who have children who are
serving or who have serve d in the military, which
service organization is exempt from taxat ion pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(19) and which is known as the
Blue Star Mothers of America, Inc. The exemption
provided by this paragraph shall only apply to the
purchase of tangible personal property actually sent
to United States military personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the organizat ion.
Provided, this exemption shall not apply to any sales
tax levied by a city, town, c ounty, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph shall be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Section 1353 of
this title, and the vendor shall be required to
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collect the sales tax otherwise applicable to the
transaction. The purchaser may apply for a refund of
the state sales tax paid in the manner prescribed by
this paragraph. Within sixty (60 ) days after the end
of each calendar quarter, any purchaser that is
entitled to make appli cation for a refund bas ed upon
the exempt treatment authorized by this paragraph may
file an application for refund of the state sales
taxes paid during such preceding calendar quarter.
The Tax Commission shall prescribe a form fo r purposes
of making the application for refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military personnel over seas in a combat zone.
Any purchaser that applies for a refund fo r the
purchase of items that are not authorized for
exemption under this paragraph shall be subject to a
penalty in the amount of Five Hund red Dollars
($500.00);
71. Sales of food and snack items to or by an or ganization
which is exempt from taxation purs uant to the provisions of the
Internal Revenue Code, 26 U.S.C., S ection 501(c)(3), whose primary
and principal purpose is providing funding for scholarships in the
medical field;
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72. Sales of tangible personal property or services for use
solely on construction projects for organ izations which are exempt
from taxation pursuant to the provisions of the Internal Revenue
Code, 26 U.S.C., Sect ion 501(c)(3) and whose purpose is providing
end-of-life care and access t o hospice services to low -income
individuals who live in a facility owned by the organization. The
exemption provided by this paragraph applies to sales to the
organization as well as to sales to any person with whom the
organization has duly entered into a construction contract,
necessary for carrying out such contract or to any subcontractor to
such a construction contract. Any person making purchases on behalf
of such organization shall certify, in writing, on the copy of the
invoice or sales ticket to be retained by the vendor that the
purchases are made for and on behalf of such organization and set
out the name of such organization. Any person who wrongfully or
erroneously certifies that purchases are for any of the above-named
organizations or who otherwise violates this section shall be guil ty
of a misdemeanor and u pon conviction thereof shall be fined an
amount equal to double the amount of sales tax involved or
incarcerated for not more than sixty (60) days or both;
73. Sales of tickets for admi ssion to events held by
organizations exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) that are
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organized for the purpose of supporting general hospitals licensed
by the State Department of Health;
74. Sales of tangible personal property or s ervices:
a. to a foundation which is exempt from taxation pursuan t
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and which ra ises tax-
deductible contributions in support of a wide range of
firearms-related public interest act ivities of the
National Rifle Association of America and other
organizations that defend and foster Second Amendment
rights, and
b. to or by a grassroots fundraising p rogram for sales
related to events to raise funds for a foundation
meeting the qualificat ions of subparagraph a of this
paragraph;
75. Sales by an organi zation or entity which is exempt from
taxation pursuant to the provisions of the Internal R evenue Code, 26
U.S.C., Section 501(c)(3) which are rel ated to a fundraising event
sponsored by the organization or entity when the event does not
exceed any five (5) consecutive days and when the sales are no t in
the organization’s or the entity’s regular course of business.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admittance to t he fundraising event and items
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which were donated to the organization or entity for sale at the
event;
76. Effective November 1, 2 017, sales of tangible personal
property or services to an organization which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) and operates as a col laborative model
which connects community agencies in one location to serve
individuals and families affected by violence and where victims have
access to services and advo cacy at no cost to the victim;
77. Effective July 1, 2018, sales of tangible personal property
or services to or by an association which is exempt from taxation
pursuant to the provisio ns of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(19) and which is known as the National Guard
Association of Oklahoma;
78. Effective July 1, 20 18, sales of tangible personal propert y
or services to or by an association which is exempt from taxation
pursuant to the provisions of the Interna l Revenue Code, 26 U.S.C. ,
Section 501(c)(4) and which is known a s the Marine Corps League
Department of Oklahoma;
79. Sales of tangible personal property or services to the
American Legion, whether the purchas e is made by the entity
chartered by the Unit ed States Congress or is an entity organized
under the laws of this or anoth er state pursuant to the authority of
the national American Legion organization;
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80. Sales of tangible personal pr operty or services to or by an
organization which is:
a. exempt from taxation pursuant to the provisi ons of the
Internal Revenue Code, 26 U.S .C., Section 501(c)(3),
b. verified with a letter from the MIT Fab Foundation as
an official member of the Fab Lab Network in
compliance with the Fab Charter, and
c. able to provide documentation that its primary and
principal purpose is to provide commu nity access to
advanced 21st century manufactu ring and digital
fabrication tools for science, technology,
engineering, art and math (STEAM) learning skills,
developing inventions, cr eating and sustaining
businesses and producing personalized products;
81. Effective November 1, 2021, sales of tangible personal
property or services used solely for construction and remodeling
projects to an organization which is exempt from taxation pur suant
to the provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3), and which meets the following requir ements:
a. its primary purpose is to construct or remodel and
sell affordable housing and provide homeownership
education to residents o f Oklahoma that have an income
that is below one hundred percent (100%) of the Family
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Median Income guidelines as define d by the U.S.
Department of Housing and Urban Development,
b. it conducts its activities in a manner that serves
public or charitable pu rposes, rather than commercial
purposes,
c. it receives funding and re venue and charges fees in a
manner that does not i ncentivize it or its employees
to act other than in the best interests of its
clients, and
d. it compensates its employees in a manner t hat does not
incentivize employees t o act other than in the best
interests of its clients;
82. Effective November 1, 20 21, sales of tangible personal
property or services to a nonprofit entity, organized pursua nt to
Oklahoma law before January 1, 2022, ex empt from federal income
taxation pursuant to Section 501(c) of the Internal Revenue Code of
1986, as amended, the princ ipal functions of which are to provide
assistance to natural persons fo llowing a disaster, with program
emphasis on repair or restoratio n to single-family residential
dwellings or the construction of a re placement single-family
residential dwelling. As us ed in this paragraph, “disaster” means
damage to property with or without accompanying inju ry to persons
from heavy rain, high winds, to rnadic winds, drought, wildfire,
snow, ice, geologic disturbances, e xplosions, chemical accidents or
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spills and other events causing damage to property on a large scale.
For purposes of this paragraph, an entity that expended at least
seventy-five percent (75%) of its funds on the restorati on to
single-family housing following a disaster including related general
and administrative expenses, shall be eligible for the exemption
authorized by this paragraph;
83. Effective November 1, 2021, through December 31, 2024,
sales of tangible personal property or services to a mus eum that:
a. operates as a part of an organization wh ich is exempt
from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) ,
b. is not accredited by the American Alliance of Museums,
and
c. operates on an annua l budget of less than One Million
Dollars ($1,000,000.00 );
84. Until July 1, 2022, sales of tangible personal property or
services for use in a cli nical practice or medical facility operated
by an organization which is exempt from taxation pursuant t o the
provisions of the Internal Revenue Code of the Unit ed States, 26
U.S.C., Section 501(c)(3), and which has entered into a joint
operating agreement with the Unive rsity Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statut es. The
exemption provided by this paragraph shall be li mited to the
purchase of tangible personal property and services for use in
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clinical practices o r medical facilities acquired or leased by th e
organization from the University Hospitals Authority, Un iversity
Hospitals Trust, or the University of Oklahoma o n or after June 1,
2021; and
85. Sales of tangible personal property or ser vices to a
nonprofit entity, organized pursuant to Oklahoma law b efore January
1, 2019, exempt from f ederal income taxation pursuant to Section
501(c) of the Internal Revenue Code of 1986, as amended, the
principal functions of which are to provide assistance to natural
persons following a disaster, with program emphasi s on repair or
restoration to single -family residential dw ellings or the
construction of a replacement single -family residential dwelling.
For purposes of this paragraph, an entity operated exclusively for
charitable and educational purposes through the c oordination of
volunteers for the di saster recovery of hom es (as derived from Part
III, Statement of Program Servic es, of Internal Revenue Service Form
990) and offers its services free of charge to disaster sur vivors
statewide who are low income with no o r limited means of recovery on
their own for the restorati on to single-family housing following a
disaster including related general and administrative expenses,
shall be eligible for the exe mption authorized by this paragraph.
The exemption provided by t his paragraph shall only be applicab le to
sales made on or after the effective date of this act July 1, 2022.
As used in this paragraph, “disaster” means damage to property with
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or without accompanying injury t o persons from heavy rain, high
winds, tornadic winds, drought, wildfire, snow, ice, geologic
disturbances, explosio ns, chemical accidents or spills and other
events causing damage to property on a large scale.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON FINANCE
February 26, 2024 - DO PASS AS AMENDED