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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR ENGROSSED
SENATE BILL NO. 1502 By: Rader and Rogers of the
Senate
and
Fetgatter, Schreiber, and
West (Kevin) of the House
COMMITTEE SUBSTITUTE
An Act relating to sales tax; amending 68 O.S. 2021,
Section 1356, as last amended by Section 1, Chapter
394, O.S.L. 2022 (68 O .S. Supp. 2023, Section 13 56),
which relates to sales tax exemption; providing
exemption to entitie s in connection with the
performance of a contr act with an exempt entity for
construction or expansion of a building or facility;
updating statutory language ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O .S. 2021, 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 f ollows:
Section 1356. Exemptions - Governmental and nonprofit entities .
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There are hereby specifically exempted from t he tax levied by
Section 1350 et seq. of this title:
A. Except as otherwise provided by paragraph 1 of subsection B
of this section, the exemptions for sales of tangible personal
property or services to entit ies provided by subsection B of this
section shall apply t o sales to the exempt entity as well as to
sales to any contractor with whom the exempt entity has entered into
a construction contract, necessary for carrying out such contract
and sales to any sub contractor to such a construction contract. Any
contractor or subcontractor making purchas es necessary for carrying
out such contract may present a copy of the exemption letter or card
issued to the exempt entity by the Oklahoma Tax Commission and
documentation indicating the contractual relationship between the
contractor and the entity to the vendor and the vendor shall reta in
such documentation as certific ation that the purchase is exempt as
provided in this section.
B. 1. Sale Sales of tangible personal property or services to
the United States government or to the State of Oklahoma, any
political subdivision of this sta te or any agency of a political
subdivision of this state ; provided, all sales to contractors in
connection with the performance of any contract with the United
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;
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2. Sales of property to agents appointe d by or under contract
with agencies or instrumentalities of the United States government
if ownership and possession of suc h property transfers immediately
to the United States government;
3. Sales of property to agents appointed by or under contract
with a political subdivision of this s tate if the sale of such
property is associated with the development of a qualified feder al
facility, as provided in the O klahoma Federal Facilities Development
Act, and if ownership and possession of such property transf ers
immediately to the political su bdivision or the state;
4. Sales made directly by county, district or state fair
authorities of this state, upon the prem ises of the fair authority,
for the sole benefit of the fair authority or sales of admission
tickets to such fairs or fair events at a ny location in the state
authorized by county, district or state fair authorities; provid ed,
the exemption provided by thi s paragraph for admission tickets to
fair events shall apply only to any portion of the admission p rice
that is retained by or distrib uted to the fair author ity. As used
in this paragraph, “fair event” shall be limited to an event held on
the premises of the fair authority in conjunction with and during
the time period of a county, district or state fa ir;
5. Sale Sales of food in cafeterias or lunchrooms of elementary
schools, high schools, colleges or universities which a re operated
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primarily for teacher s and pupils and are not operated primarily for
the public or for profit;
6. Dues paid to fraterna l, religious, civic, charitable or
educational societies o r organizations by regular members thereof,
provided, such societi es or organizations operate under what is
commonly termed the lodge plan or system, and provided such
societies or organizations do not operate for a profit which inur es
to the benefit of any individual member or members thereof to the
exclusion of other m embers and dues paid monthly or a nnually to
privately owned scientific and educational libraries by members
sharing the use of servi ces rendered by such libraries with students
interested in the study of geology, petroleum engineering or related
subjects;
7. Sale Sales of tangible personal property or services to or
by churches, except sales made in the course of business for profit
or savings, competing with other per sons engaged in the same or a
similar business or sale sales of tangible personal propert y or
services by an organization 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 request of a churc h or churches
if the sale of such property is conducted not more t han once each
calendar year for a period not to exceed three (3) days by the
organization and proceeds from the sale of such propert y are used by
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the church or churche s or by the organization for charitable
purposes;
8. The amount of proceeds received fro m the sale sales of
admission tickets which is separately stated on the ticket of
admission for the repayment of money borrowed by a ny 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 facility to be used for the staging of
an athletic event, a theatrical production, or any other form of
entertainment, edification or cultural cultivation to which entry is
gained with a paid admission ticke t. Such facilities include, but
are not limited to, athletic fields, athletic stadiums, field
houses, amphitheaters and theaters. To be eligible for this sales
tax exemption, the amount se parately stated on the admission ticket
shall be a surcharge which is imposed, collected and used f or the
sole purpose of servicing or aiding in the servicing of debt
incurred by the college or univ ersity to effect the capital
improvements hereinbefore described;
9. Sales of tangible personal property or services to the
council organizations or similar state supervisory organizations of
the Boy Scouts of America, Girl Scouts of the U.S.A. and Camp Fire
USA;
10. Sale Sales of tangible personal property or services to any
county, municipality, rural water district, public school district,
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city-county library system, the institutions of The Oklahoma State
System of Higher Education, the Grand River Dam Authority, the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Municipal Power Authority, City of Tulsa -Rogers County Port
Authority, Muskogee City-County Port Authority, the Oklahoma
Department of Veterans Affairs, the Broken Bow Economic De velopment
Authority, Ardmore Develo pment Authority, Durant Industrial
Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
Master Conservancy Distr ict, Arbuckle Master Conservancy District,
Fort Cobb Reservoir Master Conservancy District, Foss Re servoir
Master Conservancy District , Mountain Park Master Conservancy
District, Waurika Lake Master Conservancy District and the Office of
Management and Enterprise Services only when carrying out a public
construction contract on behalf of the Oklahoma De partment of
Veterans Affairs, and e ffective July 1, 2022, the University
Hospitals Trust, or to any person with whom any of the above-named
subdivisions or agencies of this state has duly entered into a
public contract pursuant to law, necessary for carryi ng out such
public contract or to a ny subcontractor to such a public contract.
Any person making purchases on behalf of suc h subdivision or agency
of this state shall certify, in writing, on the copy of the invoice
or sales ticket provide documentation to be retained by the vendor
that the purchases are made fo r and on behalf of such subdivision or
agency of this state and set out the name of such public subd ivision
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or agency. Any person who wrongfully or erroneously certifies that
purchases are for any o f 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 an 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 private
institutions of higher edu cation and 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 participa ting in federal programs or
accredited as defined by the Oklahoma S tate Regents for Higher
Education which are exempt from taxation pursuant to the provisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including
materials, supplies and equi pment used in the construction and
improvement of buildings and oth er structures owned by the
institutions and operated for educational purposes.
Any person, firm, agency or entity making purchases o n behalf of
any institution, agency or subdivision in thi s state, shall certify
in writing, on the copy of the invoice or sa les ticket provide
documentation as to the nature of the purchases, and violation of
this paragraph shall be a misdemeanor as set fo rth in paragraph 10
of this section;
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12. Tuition and educ ational fees paid to private institutions
of higher education and private elementary and secondary
institutions of education accredited by the State Department of
Education or registered by the Stat e Board of Education for purposes
of participating in fede ral programs or accredited as defined by the
Oklahoma State Regent s for Higher Education which are exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3);
13. a. Sales of tangible personal property made b y:
(1) a public school,
(2) a private school offering instruction for grade
levels kindergarten thr ough twelfth 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 personnel for purposes
of raising funds for the benefit of a pu blic or
private school, public school district, public or
private school board or public or private school
student group or organization, or
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b. Sales of tangible personal 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 or public school district.
The exemption provided by this paragraph for sales made b y a
public or private school shall be limited to those public or p rivate
schools accredited by the State Department 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 include sale sales of admission
tickets and concessions at athl etic 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.
The exemption provided by this paragraph shall be limited to
sales for the purpose of raising funds for the benefit of such
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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 ($75,000.00) each
year from sale sales of tickets and concessions at athletic e vents
by each organization exempt from taxation pursuant to the pr ovisions
of the Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
16. Sales of tangible personal property or services to any
person with whom the Oklahoma Tourism and Recreation Departme nt has
entered into a public contract and which is necessary for c arrying
out such contract to assi st the Department in the development and
production of advertising, promotion, publicity and public relations
programs;
17. Sales of tangible personal prope rty or services to fire
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 making purc hases on behalf of any such
fire department shall certify, in writing, on the copy of the
invoice or sales ticket provide documentation to be retained by the
vendor that the purchases are made for and on behalf of such fire
department and set out the name of such fire department. Any person
who wrongfully or err oneously certifies that the purchases are for
any such fire department or who otherwise violates th e provisions of
this section shall be deemed guilty of a misdemeanor and upon
conviction thereof, s hall be fined an amount equal to double the
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amount of sales tax involved or incarcerated for not more than sixty
(60) days, or both;
18. Complimentary or fr ee tickets for admission to places of
amusement, sports, entertainment, exhibition, display or othe r
recreational events or activities which are issued throu gh a box
office or other entity which is operated by a state institution of
higher education with i nstitutional employees or by a municipality
with municipal employees;
19. The first Fifteen Thousa nd Dollars ($15,000.00) each year
from sales of tangible p ersonal property by fire departments
organized pursuant to Titles 11, 18, or 19 of the Oklahoma Sta tutes
for the purposes of raising funds for the benefit of the fire
department. Fire departments s elling tangible personal property for
the purposes of rais ing funds shall be limited to no more than six
(6) days each year to raise such funds in order to r eceive the
exemption granted by this paragraph;
20. Sales of tangible personal property or service s to any Boys
& Girls Clubs of America affiliate in this s tate which is not
affiliated with the Salvation A rmy and which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3);
21. Sales of tangible p ersonal property or services to any
organization, which ta kes court-adjudicated juveniles for purposes
of rehabilitation, 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 that at least fifty percent (50%) of the
juveniles served by s uch organization are court adjudicated and the
organization receives state funds in an amount less than ten percent
(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 States Cod e,
b. any clinic receiving disbursements of state monies
from the Indigent Health Care Revolving Fund pursuant
to the provisions of Section 66 of Tit le 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 de fined in
Section 3-302 of Title 43A of the Oklahom a Statutes;
23. Dues or fees including free or complimentary dues or fees
which have a value equiv alent 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 or services to or by a
cultural organization established to sponsor and promote
educational, charitable an d cultural events for disadvantaged
children, and which organization is exempt from taxation pursuant to
the provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3);
25. Sales of tangible pers onal property or services to museums
or other entities which have been accredited by the American
Association Alliance of Museums. Any person making purchases on
behalf of any such museum or other entity shall certify, in writing,
on the copy of the invoi ce or sales ticket provide documentation to
be retained by the ven dor that the purchases are made f or and on
behalf of such museum or other entity and set out the name of such
museum or other 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 guilty of a misdemeanor and, upon conviction thereof, shall
be fined an amount equal to double the amount of sales tax involve d
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 b y this paragraph, an amount
equivalent to the amount of the tax wh ich would otherwise be
required to be collected pursuant to the provisions of Section 1350
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 any facility
to be used for entertainment, ed ification or cultural cultivation to
which entry is gained with a paid admission ticket;
27. Sales of tangible personal pro perty or services occurring
on or after June 1, 1995, to children ’s homes which are supported or
sponsored by one or more churches, members of which serve as
trustees of the home;
28. Sales of tangible personal property or services to the
organization known as the Disabled American Veter ans, Department of
Oklahoma, Inc., and subordinate chapters thereof;
29. Sales of tangible persona l property or services to youth
camps which are supported or sponsored by one or more churches,
members of which serve as tr ustees of the organization;
30. a. Until July 1, 2022, transfer of 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 taxa tion
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 t o a
municipality, county or school district pursuant to a lease or
lease-purchase agreement execute d between the vendor and a
municipality, county or school district. A copy of the lease or
lease-purchase agreement shall be retained 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, a ny such satellite or launch vehicle,
imported or caused to be imported into this state for the purp ose of
export by means of launching into space. This exem ption provided by
this paragraph shall not be affected by:
a. the destruction in whole or in part o f 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 distr ibution
in this state of any space facility, space propulsion system or
space vehicle, satellite or station of any kind possessing space
flight capacity incl uding components thereof;
35. The sale, lease, use, storage, cons umption or distribution
in this state of tangible personal property, placed on or used
aboard any space facility, space propulsion s ystem or space vehicle,
satellite, or station possessing s pace 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 boa t, mobile 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 t erm “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 s pace 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 space vehicle, satellite or
station of any kind possessing space fli ght capacity. Provided, the
exemption provided for in thi s paragraph shall not be allowed unless
the purchaser or lessee si gns an affidavit stating that the item 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 penalties 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 o r 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 ticket which is imposed, collected
and used for the sole purpose of constructing, remodeling or
enlarging facilities of a publ ic trust having a municipality or
county as its sole beneficiary;
39. Sales of tangible personal p roperty 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 taxat ion
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 this 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 prope rty 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 Education or an y public school or school
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district when such projects are financed by or through the use of
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 pers onal 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 only 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, exc ise 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 com prehensive university within
The Oklahoma State System of Higher Education, and
c. has been organized primarily for the purpose of
providing education and te acher 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 pur poses of raising funds for the
benefit of the team;
45. Sales of tickets for admission to a colleg iate athletic
event that is held in a facility owned or op erated 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 conferenc e tournament
championship, a conference championship, or a national championship;
46. Sales of tangible personal property o r 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) and is operating the Oklahoma City Nat ional Memorial and
Museum, an affiliate of the National Park Syste m;
47. Sales of tangible persona l property or services to
organizations which are exempt 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 support
to area veterans’ organizations to be used for the purpose of
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 taxation
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C.,
Section 501(c)(3) tha t 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 personal property or services to a state
that borders this state or any p olitical 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 items to this
state or a political subdivision of this state;
50. Effective July 1, 2005, sales o f tangible personal property
or services to the Career Tec hnology Student Organizations under the
direction and supervision of the Oklahoma Department of Car eer and
Technology Education;
51. Sales of tangible personal 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 wh ich 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 trust or nonprof it entity prior to July
1, 2008, in counties with a population 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 repairs and shall require a project cost of
at least One Hundred Thousand Dollars ($100,000.00). For purpos es
of this paragraph, sales made to a contractor or subcontractor that
enters into a contractual re lationship with a public trust or
nonprofit entity as described by this paragraph shall be consider ed
sales made to the public trust or nonprofit entity. Th e 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 collect the
sales tax otherwise applicable to the tran saction. The purchaser
may apply for a refund of the sales tax pa id in the manner
prescribed by this paragraph. Within thirty (30) days after the end
of each fiscal year, any purchaser that is ent itled to make
application for a refund based upon the exem pt 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 purpos es of making the
application for refund. The Tax Commissi on shall determine whether
or not the total amount of sales tax ex emptions claimed by all
purchasers is equal to or less than Six Hundred Fifty Thousand
Dollars ($650,000.00). If such claims are le ss 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 Tax Commission shall determine
the amount of each p urchaser’s claim, the total amount of all claims
by all purchasers, and the percentage each purchas er’s claim amount
bears to the total. The resulting percentage determined for each
purchaser shall be multiplied 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 rat a refund 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 ba sis
shall be the subject of any subsequent refund claim pursuant t o this
paragraph;
52. Effective July 1, 2006, sales of tangible personal property
or services to any organization which assists, tr ains, educates, and
provides housing for physically and me ntally 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 or der to receive the benefit of the
exemption authorized by this par agraph, the taxpayer shall be
required to make payment of the applicable sales tax at the time of
sale to the vendor in the manner o therwise required by law.
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Notwithstanding any other provi sion of the Oklahoma Uniform Tax
Procedure Code to the contrary, t he taxpayer shall be authorized t o
file a claim for refund of sales taxes paid that qualify for the
exemption authorized by this par agraph for a period of one (1) year
after the date of the sale transaction. The taxpayer shall be
required to provide docum entation as may be prescribed by the
Oklahoma Tax Commission in support of the refund claim. The total
amount of sales tax qualifyi ng for exempt treatment pursuant to this
paragraph shall not exceed One Hundred Seventy-five Thousand Dollars
($175,000.00) each fiscal year. Claims for ref und shall be
processed in the order in which such claims are received by the
Oklahoma Tax Commissio n. 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 property or services to, by, or for the
benefit of a qualified neighborhood watch organization th at is
endorsed or supported by or working directly with a law enfo rcement
agency with jurisdiction in the 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 criminal activity in an
area through community involvement and interact ion with local law
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enforcement and which is one of the fir st 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 nonprofit
organization, exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), organized
primarily for the purpose of providing ser vices to homeless persons
during the day and located in a metropolitan area with a population
in excess of five hundred thousand (500,000) persons according to
the latest Federal Decennial Census. The exemption authorized by
this paragraph shall be applic able to sales of tangible personal
property to a qualified entity occurring 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 t o the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to provide
funding for the preservation of wetlands and habitat for w ild ducks;
56. Sales of tangible personal property or services to or by an
organization which is e xempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(3) for events the principal purpose of which is to pro vide
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 provisio ns 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 following
criteria:
(1) serves people with workplace disadvantages and
disabilities by providing j ob training and
employment services, as well as job placem ent
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 gover nment, and
(4) provides documentation to the Oklahoma Tax
Commission that over seventy-five percent (75%)
of its revenues are channeled into employment,
job training and placement programs and other
critical community services;
58. Sales of tickets made o n or after September 21, 2005, and
complimentary or free tickets f or 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 admission 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 county or a public trust of which a
municipality or a county is the sole beneficiary, and sales of
tickets made on or after Ju ly 1, 2007, and complimentary or free
tickets for admission issued on or after July 1, 2007, which have a
value equivalent to the charge that would have otherwise been made,
for admission to a profe ssional athletic 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 cou nty or a public
trust of which a municipality or a county is the sole beneficiary;
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 made to a professional sporting event
involving ice hockey, baseball, basketball, football or arena
football, or soccer. As used in this paragraph, “professional
sporting event” means an organized athletic competition between
teams that are members of an organized leag ue or association with
centralized management, other than a national league or national
association, that imposes requirements for participation in the
league upon the teams, the individual athletes or both, and which
uses a salary structure to compensate the athletes;
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60. Sales of tickets for admission to an annual event sponsored
by an educational an d charitable 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 ha s as its mission
promoting volunteerism, developing the potential of women and
improving the commun ity through the effective action and leadership
of trained volunteers;
61. Sales of tangible personal property or services to an
organization, which is exem pt 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., Sectio n 501(c)(3), if the membership
organization is primarily engaged in advancing 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 providing
educational services and programs concerning health -related diseases
and conditions to individuals suffering from such hea lth-related
diseases and conditions or their caregivers and family members or
support to such indiv iduals, or in health-related research as to
such diseases and conditions, or both. In order to qua lify for the
exemption authorized by this paragraph, the m ember nonprofit
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organization shall be required to provide proof to the Oklahoma Tax
Commission of its membership status in the membership organization;
62. Sales of tangible personal property or se rvices to or by an
organization which is part of a nationa l volunteer women’s service
organization dedicated to promoting pa triotism, preserving American
history and securing better education for children and which has at
least 168,000 members in 3,000 cha pters across the United States;
63. Sales of tangible per sonal property or services to or by a
YWCA or YMCA organization wh ich is part of a national nonprof it
community service organization working to meet the health and social
service needs of its member s across the United States;
64. Sales of tangible persona l property or services to or by a
veteran’s organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code, 26 U.S.C., Section
501(c)(19) and which is known as th e 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 organization,
which is exempt from taxation pursuant to the provisions of the
Internal Revenue Code, 26 U.S.C., Sect ion 501(c)(3). To qualify
under the provisions of this pa ragraph, the organization must be
organized for the primary purpos e of feeding needy individuals or to
encourage volunteer service by requiring such service in order to
purchase food. These boxes s hall only contain edible staple food
items;
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66. Sales of tangible personal property or services to any
person with whom a c hurch has duly entered into a con struction
contract, necessary for carrying out such contract or to any
subcontractor to such a cons truction contract;
67. Sales of tangible personal propert y or services used
exclusively for charitable or educational purpo ses, 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. has filed a Not-for-Profit Certificate of
Incorporation in this state, and
c. is organized for the pur pose of:
(1) providing training a nd education to
developmentally disabled individuals,
(2) educating the community about the rights,
abilities and strengths of developmentally
disabled individuals, and
(3) promoting unity among developmentally disabled
individuals in their community and g eographic
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 pursuant to the
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provisions of the In ternal Revenue Code, 26 U.S.C., S ection
501(c)(3); provided, until July 1, 2008, such exemption shall apply
only to eligible shelter s for children from birth to age twelve (12)
and after July 1, 2008, such exemption shall apply to eligible
shelters for children from birth to age eighteen (18);
69. Sales of tangible personal property or services to a child
care center which is licensed 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 educatio n 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, sal es made to any person,
firm, agency or entity that has entered previously into a
contractual relationship with a child care center for construction
and improvement of buildings and other structures owned by the child
care center and operated for educationa l purposes shall be
considered sales made to a child care center. 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 provide documentatio n as to the nature of the purchase.
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Any such person, or person acting on behalf of a firm, agency or
entity making purchases on behalf of a child care center in
violation of this paragraph shall be guilty of a misdemeanor and
upon 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;
70. a. Sales of tangible personal prop erty to a service
organization of mothers who have children who ar e
serving or who have served in t he military, which
service organization is exempt from taxation pursuant
to the provisions of the I nternal Revenue Code, 26
U.S.C., Section 501(c)(19) and wh ich is known as the
Blue Star Mothers of America, Inc. The exempt ion
provided by this paragraph sh all only apply to the
purchase of tangible personal property actually sent
to United States militar y personnel overseas who are
serving in a combat zone and not to any other tangible
personal property purchased by the organ ization.
Provided, this exemptio n shall not apply to any sales
tax levied by a city, town, county, or any other
jurisdiction in this state.
b. The exemption authorized by this paragraph sha ll be
administered in the form of a refund from the sales
tax revenues apportioned pursuant to Sect ion 1353 of
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this title, and the vendor shall be required to
collect the sales tax otherwise applica ble to the
transaction. The purchaser may apply for a ref und 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 application for a r efund based upon
the exempt treatment authorized by this p aragraph may
file an application for refund of the state sales
taxes paid during such preceding cal endar quarter.
The Tax Commission shall prescribe a form for purposes
of making the application fo r refund.
c. A purchaser who applies for a refund pursuant to this
paragraph shall certify that the items were actually
sent to military personnel overseas i n a combat zone.
Any purchaser that applies for a refund for the
purchase of items that are not au thorized for
exemption under this paragraph shall be subje ct to a
penalty in the amount of Five Hundred Dollars
($500.00);
71. Sales of food and snack items 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), whose primary
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and principal purpose is providing funding for scholarships in the
medical field;
72. Sales of tangible personal property or services for use
solely on construction projects for organizations which are exempt
from taxation pursuant to the provisions of th e Internal Revenue
Code, 26 U.S.C., Section 501(c)(3) and whose pu rpose is providing
end-of-life care and access to hospice services to low -income
individuals who live in a facility owned by the org anization. The
exemption provided by this paragraph appli es 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 subcont ractor 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 provide documentation to be retained by the
vendor that the purchases are made for and on behalf of such
organization and set out the name of su ch organization. Any person
who wrongfully or erroneously certifi es that purchases are for any
of the above-named organizations or who otherwise violates this
section shall be guilty of a misdemean or and upon conviction thereof
shall be fined an amount eq ual to double the amount of sales tax
involved or incarcerated for not more than sixty (60) days or both;
73. Sales of tickets for admission to events held by
organizations exempt from taxation pur suant to the provisions of the
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Internal Revenue Code, 26 U .S.C., Section 501(c)(3) that are
organized for the purpose of sup porting general hospitals license d
by the State Department of Health;
74. Sales of tangible personal property or services:
a. to a foundation which is exempt from taxation pursuant
to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)( 3) and which raises tax-
deductible contributions in support of a wide range of
firearms-related public interest activities 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 program for sales
related to events to raise funds for a foundation
meeting the qualifications of subparagr aph a of this
paragraph;
75. Sales by an organization or entity which is exempt from
taxation pursuant to the provisions of the Internal Revenue Code, 26
U.S.C., Section 501(c)(3) which are related to a fundraising event
sponsored by the organization or e ntity when the event does not
exceed any five (5) consecut ive days and when the sales are not in
the organization’s or the entity’s regular course of busines s.
Provided, the exemption provided in this paragraph shall be limited
to tickets sold for admitta nce to the 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, 2017, sales of tang ible 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 collaborative model
which connects community agencies in one locatio n to serve
individuals and families affected by violence and where victims have
access to services and advocacy 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 f rom taxation
pursuant to the provisions 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, 2018, sales of tangible personal p roperty
or services to or by an a ssociation which is exempt from taxation
pursuant to the provisions of the Internal Revenue Code, 2 6 U.S.C.,
Section 501(c)(4) and which is known as the Mari ne Corps League
Department of Oklahoma;
79. Sales of tangible per sonal property or services to the
American Legion, whether the purchase is made by the entity
chartered by the United States Congres s or is an entity organized
under the laws of this or anot her state pursuant to the authority of
the national American Legio n organization;
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80. Sales of tangible personal property or services to or by an
organization which is:
a. exempt from taxation purs uant to the provisions 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 t hat its primary and
principal purpose is to provide commun ity access to
advanced 21st century manufacturing and digital
fabrication tools for science, techno logy,
engineering, art and math (STEAM) learning skills,
developing inventions, creating and sustai ning
businesses and producing personalized products;
81. Effective November 1, 2021, sales of tangible personal
property or services used solely for constru ction and remodeling
projects 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 meets the following requirements:
a. its primary purpose is to construct or remo del and
sell affordable housing and provide homeownership
education to residents of Oklahoma that h ave an income
that is below one hundred percent (100%) of the Family
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Median Income guidelines as defined by the U.S.
Department of Housing and Urban Developm ent,
b. it conducts its activities in a manner that serves
public or charitable purposes, rather th an commercial
purposes,
c. it receives funding and revenue and charges fees in a
manner that does not incentivize it or its employees
to act other than in th e best interests of its
clients, and
d. it compensates its employees in a manner that does not
incentivize employees to act other than in the best
interests of its clients;
82. Effective November 1, 2021, sales of tangible personal
property or services to a nonprofit entity, organized pursuant to
Oklahoma law before January 1, 2022, exempt from federal income
taxation pursuant to Section 501(c) of the Interna l Revenue Code of
1986, as amended, the principal functions of whi ch are to provide
assistance to natural persons following a disaster, with program
emphasis on repair or restoration to single -family residential
dwellings or the construction of a replaceme nt single-family
residential dwelling. As used in this paragraph, “disaster” means
damage to property with or without accompanying injury to persons
from heavy rain, high winds, tornadic winds, dro ught, wildfire,
snow, ice, geologic disturbances, explosio ns, chemical accidents or
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spills and other events causing damage t o property on a large scale.
For purposes of this paragraph, an entity that expended at least
seventy-five percent (75%) of its fun ds on the restoration to
single-family housing following a disaster including related general
and administrative expenses, s hall be eligible for the exemptio n
authorized by this paragraph;
83. Effective November 1, 2021, through December 31, 2024,
sales of tangible personal property or services to a museum that:
a. operates as a part of an organization which 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 Al liance of Museums,
and
c. operates on an annual 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 clinical practice or medical facility operated
by an organization which is exempt from taxation pursuant to the
provisions of the Internal Revenue Code of the United States, 26
U.S.C., Section 501(c)(3), and which has ente red into a joint
operating agreement with the University Hospitals Trust created
pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The
exemption provided by this paragraph shall be limited to the
purchase of tangible personal property and ser vices for use in
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clinical practices or medical facilities acquired or leased by the
organization from the University Hospitals Authority, University
Hospitals Trust, or the University of Oklahoma on or after June 1,
2021; and
85. Sales of tangible persona l property or services to a
nonprofit entity, organized pursuant to Oklahoma law before January
1, 2019, exempt from federal income taxation pursuant to Sect ion
501(c) of the Internal Revenue Code of 1986, as amended, the
principal functions of which are t o provide assistance to natural
persons following a disaster, with program emphasis on repair or
restoration to single-family residential dwellings 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 coordination of
volunteers for the disaster recovery of homes (as derived fr om Part
III, Statement of Program Services, of Internal Revenue Se rvice Form
990) and offers its se rvices free of charge to disaster survivors
statewide who are low income with no or limited means o f recovery on
their own for the restoration to single -family housing following a
disaster including related general and admi nistrative expenses,
shall be eligible for the exemption authorized by this paragraph.
The exemption provided by this paragraph sha ll only be applicable to
sales made on or after the effective date of this act. As used in
this paragraph, “disaster” means damage to property with or witho ut
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accompanying injury to persons from heavy rain, high winds, tornadic
winds, drought, wildfire, s now, ice, geologic disturbances,
explosions, chemical acci dents or spills and other events causing
damage to property on a l arge scale.
SECTION 2. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON APPROPR IATIONS AND BUDGET, dated
04/18/2024 - DO PASS, As Amended and Coauthored.