Oklahoma Senate Bill SB1502 Engrossed / Bill

                     
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 1  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
ENGROSSED HOUSE AMENDME NT 
 TO 
ENGROSSED SENATE BILL NO . 1502 By: Rader and Rogers of the 
Senate 
 
  and 
 
  Fetgatter of the House 
 
 
 
 
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 ex emption; providing 
exemption to entities in connection with the 
performance of a contract with an exempt entity for 
construction or expansion of a building or facility; 
updating statutory la nguage; and providing an 
effective date. 
 
 
 
 
 
 
 
AUTHOR:  Add the following House Coauthors: Schreiber, West (Kevin), 
and Fugate 
 
 
AMENDMENT NO. 1.  Strike the title, enacting clause, and entire bill 
and insert: 
 
 
"An Act relating to sales tax; amending 68 O.S. 2021, 
Section 1356, as las t 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. 
 
   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 2  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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, Chapt er 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 . 
There are hereby specifically exempted from t he tax levied by 
Section 1350 et seq. of this title: 
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 state or any agency of a political s ubdivision 
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 sha ll not be 
exempted from the tax levied by Section 1 350 et seq. of this title, 
except as hereinafter provided. 
Except as otherwise provided by this paragraph, the exemptions 
for sales of tangible personal property or services to entit ies 
provided by 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 3  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
Tax Commission and documen tation indicating the contractual 
relationship between the contractor and the entity to the vendor and 
the vendor shall retain such documentation as certific ation that the 
purchase is exempt as provided in this section ; 
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 such 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 federal 
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 a uthorities; provided, 
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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 4  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 un iversities which are operated 
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 societies 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 members 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 property 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 5  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
if the sale of such property is co nducted not more than 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 
the church or churche s or by the organization for charitable 
purposes; 
8.  The amount of pro ceeds received from 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 ticket.  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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 6  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 wate r district, public school district, 
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, Ci ty 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 A uthority, 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 Conser vancy 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 purchase s on behalf of such subdivision or agency   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 7  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 g uilty 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 education 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 State 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 other 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 sales ticket provide   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 8  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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; 
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 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); 
13. a. Sales of tangible personal property made b y: 
(1) a public school, 
(2) a private school off ering 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 9  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
private school, public school district, public or 
private school board or public or private school 
student group or organization, or 
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 private 
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.   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 10  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 ($75,000.00) each 
year from sale sales of tickets and concessions at athletic e vents 
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 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 carrying 
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 pu rsuant 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 11  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
this section shall be deemed guilty of a misdemeanor and , upon 
conviction thereof, s hall 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 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 operate d 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 Army and which is exempt from taxation 
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., 
Section 501(c)(3);   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 12  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 Co de, 
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 d efined in 
Section 3-302 of Title 43A of the Oklahom a Statutes;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 13  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
23.  Dues or fees, including free or complimentary dues or fees 
which have a value equiv alent to the charge that could have 
otherwise been made, to YMCAs, YWCAs or municipally-owned 
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 a nd 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 vendor 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 14  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
or incarcerated for not more than sixty (60) d ays, or by both such 
fine and incarceration; 
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 am ount of the tax which 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 property 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 th e 
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 trustees of the organization;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 15  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
30. a. Until July 1, 2022, transfer of tangible personal 
property made pursuant to Section 3226 of Title 63 of 
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 purs uant 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;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 16  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 i ncluding components of, 
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 af fected 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, use, 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, consumption 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 of whether such tangible property 
is returned to this state for subsequent use, storage, or 
consumption in any manner;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 17  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 speci fically 
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, proce ssing, 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 signs an affidavit stating that the item or 
items to be exempted are for the exclusive use designated herein.    
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 18  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 p art 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 R evenue 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 High er Education;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 19  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 th e Oklahoma 
State Regents for Higher Education or an y public school or school 
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 cham pionship 
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 paragrap h 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),   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 20  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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; 
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 Reve nue 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 wh ich the municipality 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 p ersonal 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) and is operating the Oklahoma City Nat ional Memorial and 
Museum, an affiliate of the N ational Park System; 
47.  Sales of tangible persona l property or services to 
organizations which are exempt from federal taxation pursuant to the   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 21  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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; 
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 s ales 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 benefici ary or 
beneficiaries or a nonprofit organization wh ich is exempt from   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 22  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 own ed 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 
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 b e 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 o f the sales tax paid 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 fi le an application for refund of the sales 
taxes paid during such preceding fiscal year.  The Oklahoma Tax   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 23  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 amou nt of sales tax exemptions 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 
that amount, the Tax Commission shall make refunds to the purchasers 
in the full amount of the documented 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 s ales 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 refun d claim pursuant to 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 pursuant to the provisions of the 
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 24  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 paragraph, 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.  
Notwithstanding any other provi sion of the Oklahoma Uniform Tax 
Procedure Code to the contrary, the 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 documentation 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 direct ly with a law enforcement 
agency with jurisdiction in the area in which the neighborhood watch   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 25  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
enforcement and which is one of the fir st two thousand organizations 
which makes application to the Oklahoma 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), o rganized 
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 exe mption 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 t axation 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 provide 
funding for the preservation of wetlands and habitat for w ild ducks;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 26  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
56.  Sales of tangible personal prope rty 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 conservati on of wild turkeys; 
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 Okl ahoma Tax 
Commission that over seventy-five percent (75%)   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 27  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 for admission issued on or after 
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, 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 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 c harge 
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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 28  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 bot h, and which 
uses a salary structure to compensate the athletes; 
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 Interna l 
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 pro perty 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 provisi ons of the Internal 
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 o rganizations, 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 29  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
diseases and conditions or their car egivers 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 
organization shall be required t o 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 dedicat ed to promoting patriotism, 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 which 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 30  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
organized for the primary purpose 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; 
66.  Sales of tangible personal property or services to any 
person with whom a church 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 purposes, 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 purpose 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 31  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
(3) promoting unity among developmen tally 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 
provisions of the Internal 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 eligibl e 
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 schoo l 
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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 32  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
and improvement of buildings and other structures owned b y 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 in voice or 
sales ticket provide documentatio n as to the nature of the purchase.  
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 mis demeanor 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 ha ve children who are 
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 exemption 
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 purc hased by the organization.    
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 33  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 pr escribed 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 t he 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 34  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
penalty in the amount of Five Hundred Do llars 
($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 
and principal purpose is providing funding for s cholarships 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 purpose 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 sa les 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 certifies that purchases are for any 
of the above-named organizations or who otherwise violates this   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 35  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
Internal Revenue Code, 26 U .S.C., Section 501(c)(3) that are 
organized for the purpose of supporting 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 36  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 mod el 
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 t angible personal property 
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;   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 37  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
79.  Sales of tangible personal 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 Legion organization; 
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 lett er 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 manufacturin g 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 pe rsonal 
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 requireme nts:   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 38  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
Median Income guidelines as defined b y 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 ince ntivize 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 principa l functions of which 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   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 39  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
spills and other event s 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 fun ds on the restoration to 
single-family housing following a disaster including related general 
and administrative expenses, shall 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 State s, 26 
U.S.C., Section 501(c)(3), and which has ente red into a joint   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 40  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 aft er 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 I nternal Revenue Service 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 administrative expenses,   
 
ENGR. H. A. to ENGR. S. B. NO. 1502 	Page 41  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 large scale. 
SECTION 2.  This act shall become effective November 1, 2024. " 
Passed the House of Representatives the 25th day of April, 2024. 
 
 
 
 
  
Presiding Officer of the House of 
 	Representatives 
 
 
Passed the Senate the ____ day of __________, 2024. 
 
 
 
 
  
Presiding Officer of the Senate 
   
 
ENGR. S. B. NO. 1502 	Page 1  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
ENGROSSED SENATE 
BILL NO. 1502 	By: Rader and Rogers of the 
Senate 
 
  and 
 
  Fetgatter of the House 
 
 
 
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 entities in connection with the 
performance of a contract with an exempt entity for 
construction or expansion of a buildin g or facility; 
updating statutory language; and providing an 
effective date. 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 3.     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. 
There are hereby specifically exempted from the tax levied by 
Section 1350 et seq. of this title: 
A.  Sales made to a contractor or subcontractor that has entered 
into a contractual r elationship with an entity exempted pursuant to 
subsection B of this section for construction or expansion of a 
building or facility shall be considered sales made to the exempt 
entity;   
 
ENGR. S. B. NO. 1502 	Page 2  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 state 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; 
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 agents a ppointed 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 federal 
facility, as provided in the Oklahoma Federal Facilities Development 
Act, and if ownership and p ossession of such property transfers 
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 premises of the fair authority, 
for the sole benefit of the fair autho rity 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; provided, 
the exemption provided by this paragraph for admission tickets to   
 
ENGR. S. B. NO. 1502 	Page 3  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
fair events shall apply only to any portion of the admission price 
that is retained by or distrib uted to the fair authority.  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 fair; 
5.  Sale Sales of food in cafeterias or lunchrooms of elementary 
schools, high schools, colleges or universities which are operated 
primarily for teachers and pupils and are not operated primarily for 
the public or for profit; 
6.  Dues paid to fraternal, religious, civic, charitable or 
educational societies or organizations by regular members thereof, 
provided, such societies or organizations operate under what is 
commonly termed the lodge plan or system, and provided su ch 
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 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 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 th e 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 property or   
 
ENGR. S. B. NO. 1502 	Page 4  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
services by an organization exempt from federal income tax pursuant 
to Section 501(c)(3) of th e Internal Revenue Code of 1986, as 
amended, made on behalf of or at the request of a church or churches 
if the sale of such property is conducted not more than once each 
calendar year for a period not to exceed three (3) days by the 
organization and proce eds from the sale of such property are used by 
the church or churche s or by the 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 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 ticket.  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 separately stated on the admission ticket 
shall be a surcharge which is imposed, collected and used for the 
sole purpose of servicing or aiding in the servicing of deb t 
incurred by the college or university to effect the capital 
improvements hereinbefore described;   
 
ENGR. S. B. NO. 1502 	Page 5  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
9.  Sales of tangible personal property or services to the 
council organizations or similar state supervisory organizations of 
the Boy Scouts of America, Gir l 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, 
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 Af fairs, the Broken Bow Economic Development 
Authority, Ardmore Develo pment Authority, Durant Industrial 
Authority, Oklahoma Ordnance Works Authority, Central Oklahoma 
Master Conservancy District, Arbuckle Master Conservancy District, 
Fort Cobb Reservoir Master Conservancy District, Foss Reservoir 
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 Department 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 purs uant to law, necessary for carrying out such   
 
ENGR. S. B. NO. 1502 	Page 6  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
public contract or to a ny subcontractor to such a public contract.  
Any person making purchases on behalf of such subdivision or agency 
of this state 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 subdivision or agency of this state 
and set out the name of such public subdivision or agency.  Any 
person who wrongfully or erroneously certifies that purchases ar e 
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 an amount equal to double 
the amount of sales tax involved or incarcerate d for not more than 
sixty (60) days or both; 
11.  Sales of tangible personal property or services 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 State Board of 
Education for purposes of participa ting in federal programs or 
accredited as defined by the Oklahoma State 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 other structures owned by the 
institutions and operated for educational purposes.   
 
ENGR. S. B. NO. 1502 	Page 7  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
Any person, firm, agency or entity making purchases on behalf of 
any institution, agency or subdivision in thi s state, shall certify 
in writing, on the copy of the invoice or sales ticket the nature of 
the purchases, and violation of this paragraph shall be a 
misdemeanor as set forth in paragraph 10 of this section; 
12.  Tuition and educational fees paid to privat e institutions 
of higher education and private elementary and secondary 
institutions of education accredited by the State Department of 
Education or registered by the State Board of Educat ion for purposes 
of participating in federal programs or accredited as defined by the 
Oklahoma State 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); 
13. a. Sales of tangible personal property made by: 
(1) a public school, 
(2) a private school offering instruction for grade 
levels kindergarten through twelfth grade, 
(3) a public school district, 
(4) a public or private school board, 
(5) a public or private scho ol student group or 
organization, 
(6) a parent-teacher association o r organization 
other than as specified in subparagraph b of this 
paragraph, or   
 
ENGR. S. B. NO. 1502 	Page 8  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
(7) public or private school personnel for purposes 
of raising funds for the benefit of a public or 
private school, public school district, public or 
private school board or pub lic or private school 
student group or organization, or 
b. Sales of tangible personal property made by or to 
nonprofit parent-teacher associations or organizations 
exempt from taxation pur suant to the provisions of the 
Internal Revenue Code, 26 U.S.C., Sec tion 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 by a 
public or private schoo l shall be limited to those public or private 
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 paragra ph shall include 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,   
 
ENGR. S. B. NO. 1502 	Page 9  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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 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 personal property or services to any 
person with whom the Oklahoma Tourism and Recreation Department has 
entered into a publi c contract and which is necessary for carrying 
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 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 purchases on behalf o f any such 
fire department 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 fire department and set 
out the name of such fire department.  Any person wh o wrongfully or   
 
ENGR. S. B. NO. 1502 	Page 10  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
erroneously certifies that the purchases are for any such fire 
department or who otherwise violates the provisions of this section 
shall be deemed 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; 
18.  Complimentary or free tickets for admission to places of 
amusement, sports, entertainment, exhibition, display or other 
recreational events or activities whi ch are issued through a box 
office or other entity which is operated by a state institution of 
higher education with institutional 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 Titles 11, 18, or 19 of the Oklahoma Statutes 
for the purposes of raising funds for the benefit of the fire 
department.  Fire departments selling tangible personal property for 
the purposes of raising funds shall be limited to no more than six 
(6) days each year to raise such funds in order to receive the 
exemption granted by this paragraph; 
20.  Sales of tangible personal property or services to any Boys 
& Girls Clubs of America affiliate in this state 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);   
 
ENGR. S. B. NO. 1502 	Page 11  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
21.  Sales of tangible personal property or services to any 
organization, which takes court -adjudicated juveniles for purposes 
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 percent 
(10%) of the annual budget of the organization; 
22.  Sales of tangible personal property 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 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 de fined in 
Section 3-302 of Title 43A of the Oklahoma Statutes;   
 
ENGR. S. B. NO. 1502 	Page 12  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
23.  Dues or fees including free or complimentary dues or fees 
which have a value equivalent to the charge that could have 
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 personal 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 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 other entity.  
Any person who wrongfully or erroneously certifies that th e 
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 involved o r incarcerated for   
 
ENGR. S. B. NO. 1502 	Page 13  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
not more than sixty (60) days, or by both such fi ne and 
incarceration; 
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 t his paragraph, an amount 
equivalent to the amount of the tax which w ould 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 us ed for the sole purpose of 
servicing or aiding in the servicing of d ebt incurred by the museum 
to effect the construction, enlarging or renovation of any facility 
to be used for entertainment, edification or cultural cultivation to 
which entry is gained wi th a paid admission ticket; 
27.  Sales of tangible personal property 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 Veterans , Department of 
Oklahoma, Inc., and subordinate chapters 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 trustee s of the organization;   
 
ENGR. S. B. NO. 1502 	Page 14  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
30. a. Until July 1, 2022, transfer of tangible personal 
property made pursuant to Section 3226 of Title 63 of 
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 taxatio n 
pursuant to the provisions of the Internal 
Revenue Code of the Uni ted 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 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;   
 
ENGR. S. B. NO. 1502 	Page 15  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 components of, 
and parts and motors for, any such satellite or launch vehicle, 
imported or caused to be imported into this state for the purpose of 
export by means of launching into space.  This exempti on 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, use, s torage, consumption or distribution 
in this state of any space facility, space propulsion system or 
space vehicle, satellite or station of any kind possessing space 
flight capacity includi ng components thereof; 
35.  The sale, lease, use, storage, consumpti on or distribution 
in this state of tangible personal property, placed on or used 
aboard any space facility, space propulsion system or space vehicle, 
satellite, or station possessing spac e flight capacity, which is 
launched into space, irrespective of whe ther such tangible property 
is returned to this state for subsequent use, storage, or 
consumption in any manner;   
 
ENGR. S. B. NO. 1502 	Page 16  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 
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, 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 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 p roducing of any space 
facility, space propulsion system or space vehicle, satellite or 
station of any kind possessing space flight capacity.  Provided, the 
exemption provided for in this p aragraph shall not be allowed unless 
the purchaser or lessee signs a n affidavit stating that the item or 
items to be exempted are for the exclusive use designated herein.    
 
ENGR. S. B. NO. 1502 	Page 17  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
Any person furnishing a false affidavit to the vendor for the 
purpose of evading pay ment of any tax imposed by Section 1354 of 
this title shall be subje ct to the penalties provided by law.  As 
used in this paragraph, “machinery and equipment ” means “section 38 
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 a ny 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 public trust having a municipality or 
county as its sole beneficiary; 
39.  Sales of tangible personal property 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 this state; 
40.  The sale, lease or use of parking privileges by an 
institution of The Oklahoma State System of Higher Education;   
 
ENGR. S. B. NO. 1502 	Page 18  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 Education or any public school or school 
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 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 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, 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 pr ovisions of 
the Internal Revenue Code, 26 U.S.C., Section 
501(c)(3),   
 
ENGR. S. B. NO. 1502 	Page 19  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 teach er training and 
conducting events relating to robotics; 
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 opera ted by a municipality 
or a public trust of which the municipality is the sole beneficiary 
and that actually determines or is part of a tournament or 
tournament process for determining a conference tournament 
championship, a conference championship, or a na tional championship; 
46.  Sales of tangible personal property or ser vices 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 Nation al Memorial and 
Museum, an affiliate of the National Park System; 
47.  Sales of tangible personal property or services to 
organizations which are exempt from federal taxation pursuant to the   
 
ENGR. S. B. NO. 1502 	Page 20  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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; 
48.  Sales of tangible pe rsonal property or services on or after 
January 1, 2003, to an organ ization which is exempt from taxation 
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., 
Section 501(c)(3) that 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 political subdivision of that state, 
but only to the extent th at the other state or political subdivision 
exempts or does not impo se a tax on similar sales of items to this 
state or a political subdivision of this state; 
50.  Effective July 1, 2005, sales of tangible personal property 
or services to the Career Techno logy Student Organizations under the 
direction and supervision of th e Oklahoma Department of Career 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 which is exempt from   
 
ENGR. S. B. NO. 1502 	Page 21  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 nonprofit entity prior to July 
1, 2008, in counties with a population of less than one hundred 
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 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 considered 
sales made to the public trust or nonprofit entity.  The e xemption 
authorized by this paragraph shall be administered in the f orm 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 transac tion.  The purchaser 
may apply for a refund of the sales tax paid in the manner 
prescribed by this paragraph.  Within thirty (30) days after the end 
of each fiscal year, any purchaser that is entitled to make 
application for a refund based upon the exempt treatment authorized 
by this paragraph may file an application for r efund of the sales 
taxes paid during such preceding fiscal year.  The Oklahoma Tax   
 
ENGR. S. B. NO. 1502 	Page 22  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
Commission shall prescribe a form for purposes of making the 
application for refund.  The Tax Commission shall determine whether 
or not the total amount of sales tax exempti ons claimed by all 
purchasers is equal to or less than Six Hundred Fifty Thousand 
Dollars ($650,000.00).  If such claims are less than or equal to 
that amount, the Tax Commission shall mak e refunds to the purchasers 
in the full amount of the documented 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 purc haser’s claim, the total amount of all claims 
by all purchasers, and the percentage each purchaser ’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 rata 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 basis 
shall be the subject of any subsequent refund claim pursuant to thi s 
paragraph; 
52.  Effective July 1, 2006, sales of tangible personal property 
or services to any organization which assists, trains, educates, and 
provides housing for physically and menta lly handicapped persons and 
which is exempt from taxation pursuant t o the provisions of the 
Internal Revenue Code, 26 U.S.C., Section 501(c)(3) and that   
 
ENGR. S. B. NO. 1502 	Page 23  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 paragrap h, the taxpayer shall be 
required to make payment of the applicable sales tax at the time of 
sale to the vendor in the manner otherwise required by law.  
Notwithstanding any other provisio n of the Oklahoma Uniform Tax 
Procedure Code to the contrary, the ta xpayer shall be authorized to 
file a claim for refund of sales taxes paid that qualify for the 
exemption authorized by this paragraph for a period of one (1) year 
after the date of the sal e transaction.  The taxpayer shall be 
required to provide documentat ion as may be prescribed by the 
Oklahoma Tax Commission in support of the refund claim.  The total 
amount of sales tax qualifying for exempt treatment pursuant to this 
paragraph shall not exceed One Hundred Seventy -five Thousand Dollars 
($175,000.00) each fiscal year.  Claims for refund shall be 
processed in the order in which such claims are received 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 property 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 enforceme nt 
agency with jurisdiction in the area in which the neighborhood watch   
 
ENGR. S. B. NO. 1502 	Page 24  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 interaction with local law 
enforcement and which is one of the first two thousand organizations 
which makes application to the Oklahoma T ax 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 services 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 applicable 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 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 provide 
funding for the preservation of wetlands and habitat for wild ducks;   
 
ENGR. S. B. NO. 1502 	Page 25  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
56.  Sales of tangible personal property or services to or b y 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 purpose of which is to provid e 
funding for the preservation and conservation of wild turkeys; 
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 following 
criteria: 
(1) serves people with workplace disadvantages and 
disabilities by providing job training 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 governme nt, and 
(4) provides documentation to the Oklahoma Tax 
Commission that over seventy-five percent (75%)   
 
ENGR. S. B. NO. 1502 	Page 26  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
of its revenues are channeled into employment, 
job training and placement programs and other 
critical community services; 
58.  Sales of tickets made on o r after September 21, 2005, and 
complimentary or free tickets for ad mission issued on or after 
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 te am in the National Basketball 
Association 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 beneficiary, and sales of 
tickets made on or after July 1, 2007, and complimentary or free 
tickets for admission issued on o r after July 1, 2007, 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 Hockey League is a participant, which is held in a 
facility owned or opera ted by a municipality, a county 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   
 
ENGR. S. B. NO. 1502 	Page 27  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
teams that are members of an organized league 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; 
60.  Sales of tickets for admission to an annual event sponsored 
by an educational and 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 has as its mission 
promoting volunteerism, developing the potential of women and 
improving the community through 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 Internal 
Revenue Code, 26 U.S.C., Section 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 th e 
member organization is primarily engaged either in providing 
educational services and programs concerning health -related diseases 
and conditions to individuals suffering from such health -related   
 
ENGR. S. B. NO. 1502 	Page 28  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
diseases and conditions or their caregivers and family memb ers or 
support to such individuals, 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 memb er nonprofit 
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 services to or by an 
organization which is part of a national v olunteer women’s service 
organization dedicated to promoting patriot ism, preserving American 
history and securing better education for children and which has at 
least 168,000 members in 3,000 chapters across the United States; 
63.  Sales of tangible person al property or services to or by a 
YWCA or YMCA organization which i s part of a national nonprofit 
community service organization working to meet the health and social 
service needs of its members across the United States; 
64.  Sales of tangible personal p roperty or services to or by a 
veteran’s organization which is exemp t from taxation pursuant to the 
provisions of the Internal Revenue Code, 26 U.S.C., Section 
501(c)(19) and which is known as the Veterans of Foreign Wars of the 
United States, Oklahoma Cha pters Department of Oklahoma ; 
65.  Sales of boxes of food by a churc h 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).  To qualify 
under the provisions of this parag raph, the organization must be   
 
ENGR. S. B. NO. 1502 	Page 29  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
organized for the primary purpose 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; 
66.  Sales of tangible personal property or services to any 
person with whom a church has duly entered into a construction 
contract, necessary for carrying out such contract or to any 
subcontractor to such a construction contract; 
67.  Sales of tangible personal property o r services used 
exclusively for charitable or educational purposes, 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 purpose of: 
(1) providing training and education to 
developmentally disabled individuals, 
(2) educating the community about the rights, 
abilities and strengths of developmentally 
disabled individuals, and   
 
ENGR. S. B. NO. 1502 	Page 30  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
(3) promoting unity among developmentally 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 pursuant to the 
provisions of the Interna l Revenue Code, 26 U.S.C., Section 
501(c)(3); provided, until July 1, 2008, such exemption shall apply 
only to eligible shelters 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 Huma n 
Services Reaching for the Stars Program or a national 
accreditation, and 
b. allows on-site universal prekindergarten education 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 entered previously into a 
contractual relationship with a child care center for construction   
 
ENGR. S. B. NO. 1502 	Page 31  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
and improvement of buildings and other structures owned by the child 
care center and operated for educational 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 the nature of the purchase.  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 property to a service 
organization of mothers who have children who are 
serving or who have served in t he military, which 
service organization 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 the 
Blue Star Mothers of America, Inc.  The exemption 
provided by this paragraph sh all 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 organization.  
Provided, this exemptio n shall not apply to any sales   
 
ENGR. S. B. NO. 1502 	Page 32  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
tax levied by a city, town, county, 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 Sect ion 1353 of 
this title, and the vendor shall be required to 
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 application for a refund based upon 
the exempt treatment authorized by this paragraph 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 for refund. 
c. A purchaser who applies for a refund pursuant to this 
paragraph shall certif y 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 authorized for 
exemption under this paragraph shall be subject to a   
 
ENGR. S. B. NO. 1502 	Page 33  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
penalty in the amount o f 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 
and principal purpose is provid ing 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 the Internal Revenue 
Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing 
end-of-life care and access to 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 guilty   
 
ENGR. S. B. NO. 1502 	Page 34  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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; 
73.  Sales of tickets for admission 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 
organized for the purpose of supporting general hospitals licensed 
by the State Departm ent 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 sup port 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 subparagraph 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   
 
ENGR. S. B. NO. 1502 	Page 35  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
sponsored by the organization or entity when the event does not 
exceed any five (5) consecutive days and when the sales are not 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 the fundraising event and items 
which were donated to the organization or entity for sale at the 
event; 
76.  Effective November 1, 2017, 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 collaborative model 
which connects community agencies in one location 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 from 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 tangib le personal property 
or services to or by an association which is ex empt from taxation 
pursuant to the provisions of the Internal Revenue Code, 26 U.S.C., 
Section 501(c)(4) and which is known as the Marine Corps League 
Department of Oklahoma;   
 
ENGR. S. B. NO. 1502 	Page 36  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
79.  Sales of tangible personal property or services to the 
American Legion, whet her the purchase is made by the entity 
chartered by the United States Congress or is an entity organized 
under the laws of this or another state pursuant to the authority of 
the national American Legion organization; 
80.  Sales of tangible personal propert y or services to or by an 
organization which is: 
a. exempt from taxation pursuant to the provisions of the 
Internal Revenue Code, 26 U.S.C., Section 501(c)(3), 
b. verified with a letter fr om the MIT Fab Foundation as 
an official member of the Fab Lab Netwo rk in 
compliance with the Fab Charter, and 
c. able to provide documentation that its primary and 
principal purpose is to provide community access to 
advanced 21st century manufacturing and digital 
fabrication tools for science, technology, 
engineering, art and math (STEAM) learning skills, 
developing inventions, creating and sustaining 
businesses and producing personalized products; 
81.  Effective November 1, 2021, sales of tangible persona l 
property or services used solely for construction 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:   
 
ENGR. S. B. NO. 1502 	Page 37  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
a. its primary purpose is to construct or remodel and 
sell affordable housing and provide homeownership 
education to residents of Oklahoma that have an income 
that is below one hundred percent (100%) of the Family 
Median Income guidelines as defined by the U.S. 
Department of Housing and Urban Development, 
b. it conducts its activities in a manner that serves 
public or charitable purposes, rather than commercial 
purposes, 
c. it receives funding and revenue and charges fees in a 
manner that does not incentivi ze it or its employees 
to act other than in the best interests of it s 
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, sale s of tangible personal 
property or services to a nonprofit entity, o rganized pursuant to 
Oklahoma law before January 1, 2022, exempt from federal income 
taxation pursuant to Section 501(c) of the Internal Revenue Code of 
1986, as amended, the principal fun ctions of which are to provide 
assistance to natural persons followi ng a disaster, with program 
emphasis on repair or restoration to single -family residential 
dwellings or the construction of a replacement single -family   
 
ENGR. S. B. NO. 1502 	Page 38  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
residential dwelling.  As used in th is paragraph, “disaster” means 
damage to property with or without ac companying injury to persons 
from heavy rain, high winds, tornadic winds, drought, wildfire, 
snow, ice, geologic disturbances, explosions, chemical accidents or 
spills and other events cau sing damage to property on a large scale.  
For purposes of this para graph, an entity that expended at least 
seventy-five percent (75%) of its funds on the restoration to 
single-family housing following a disaster including related general 
and administrative expenses, shall be eligible for the exemption 
authorized by this p aragraph; 
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 ex empt 
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 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 entered into a joint   
 
ENGR. S. B. NO. 1502 	Page 39  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
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 services for use in 
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 Ju ne 1, 
2021; and 
85.  Sales of tangible personal property or services to a 
nonprofit entity, organized pursuant to Oklahoma law before January 
1, 2019, exempt from federal income taxation pursuant to Section 
501(c) of the Internal Revenue Code of 1986, as a mended, the 
principal functions of which are to provide assistance t o 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 exclu sively for 
charitable and educational purposes through the coordination of 
volunteers for the disaster recovery of homes (as derived from Part 
III, Statement of Program Services, of Intern al Revenue Service Form 
990) and offers its services free of charge to disaster survivors 
statewide who are low income with no or limited means of recovery on 
their own for the restoration to single -family housing following a 
disaster including related gen eral and administrative expenses,   
 
ENGR. S. B. NO. 1502 	Page 40  1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
  
shall be eligible for the exemptio n authorized by this paragraph.  
The exemption provided by this paragraph shall only be applicable 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 
or without accompanying injury to persons from heavy rain, high 
winds, tornadic winds, drought, wildfire, snow, ice, geologic 
disturbances, explosions, chemical accidents or spills and other 
events causing damage to property on a large scale. 
SECTION 4.  This act shall become effective November 1, 2024. 
Passed the Senate the 1 4th day of March, 2024. 
 
 
  
 	Presiding Officer of the Senate 
 
 
Passed the House of Representatives the ____ day of __ ________, 
2024. 
 
 
  
 	Presiding Officer of the House 
 	of Representatives