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53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 59th Legislature (2024)
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57	57	SENATE BILL 2028 By: Kidd
58	58
59	59
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63	63	AS INTRODUCED
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65	65	An Act relating to sales tax; amending 68 O.S. 2021,
66	66	Section 1358, which relates to agricultural
67	67	exemptions; modifying definitions; defining terms;
68	68	updating statutory language; and providing an
69	69	effective date.
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75	75	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
76	76	SECTION 1. AMENDATORY 68 O.S. 2021, Secti on 1358, is
77	77	amended to read as follows:
78	78	Section 1358. Exemptions – Agriculture.
79	79	A. There are hereby specifically exempted from the tax levied
80	80	by Section 1350 et seq. of this title:
81	81	1. Sales of agricultural products produced in this state by the
82	82	producer thereof directly to the consumer or us er when such articles
83	83	are sold at or from a farm and not fr om some other place of
84	84	business, as follows:
85	85	a. farm, orchard, or garden products, and
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137	137	b. dairy products sold by a dairy producer or farmer who
138	138	owns all the cows from which the dairy products
139	139	offered for sale are produced;
140	140	provided, the provisions of this paragraph shall not be construed as
141	141	exempting sales by florists, nursery operators , or chicken
142	142	hatcheries, or sales of dairy products by any other business except
143	143	as set out herein;
144	144	2. Livestock, including cattle, horses, mules , or other
145	145	domestic or draft animals, sold by the producer by p rivate treaty or
146	146	at a special livestock sale;
147	147	3. Sale of baby chicks, turkey poults , and starter pullets used
148	148	in the commercial production of chickens, turkeys, and eggs,;
149	149	provided, that the purchaser certifies, in writing, on the copy of
150	150	the invoice or sales ticket to be retained by the vendor that the
151	151	pullets will be used primarily for egg production;
152	152	4. Sale of salt, grains, tank age, oyster shells, mineral
153	153	supplements, limestone, and other generally recognized animal feeds
154	154	for the following purposes an d subject to the following limitations:
155	155	a. feed which is fed to poultry and livestock , including
156	156	breeding stock and wool-bearing stock, for the purpose
157	157	of producing eggs, poultry, milk, or meat for human
158	158	consumption,
159	159	b. feed purchased in Oklahoma this state for the purpose
160	160	of being fed to and which is fed by the purchaser to
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212	212	horses, mules, or other domestic or draft animals us ed
213	213	directly in the producing and marketing of
214	214	agricultural products, and
215	215	c. any stock tonics, water purifying products, stock
216	216	sprays, disinfectants , or other such agricultural
217	217	supplies.
218	218	“Poultry” shall not be construed to include any fowl other than
219	219	domestic fowl kept and rai sed for the market or production of eggs.
220	220	“Livestock” shall not be construed to include a ny pet animals such
221	221	as dogs, cats, birds , or such other fur-bearing animals. This
222	222	exemption shall only be g ranted and extended where the purchase r of
223	223	feed that is to be used and in fact is used for a purpose that would
224	224	bring about an exemption hereunder e xecutes an invoice or sales
225	225	ticket in duplicate on a form to be prescribed by the Oklahoma Tax
226	226	Commission. The purchaser may demand and receive a copy of the
227	227	invoice or sales ticket and the vendor shall retain a copy;
228	228	5. Sales of items to be and in fact used in the production of
229	229	agricultural products. Sale of the following items shall be subject
230	230	to the following limitations:
231	231	a. sales of agricultural fertilizer to an y person
232	232	regularly engaged, for profit, in the business of
233	233	farming or ranching,
234	234	b. sales of agricultural fertilizer to any person engaged
235	235	in the business of applying such materials on a
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287	287	contract or custom basis to land owned or leased a nd
288	288	operated by persons regularly engaged, for profit, in
289	289	the business of farming or ranching. In addition to
290	290	providing the vendor proof of eligibility as provided
291	291	in Section 1358.1 of this title, the purchaser shall
292	292	provide the name or names of such owner or lessee and
293	293	operator and the location of the lands on which said
294	294	such materials are to be applied to each such l and,
295	295	c. sales of agricultural fertilizer, pharmaceuticals , and
296	296	biologicals to persons engaged in the business of
297	297	applying such materials on a contract or custom basis
298	298	shall not be considered to be sales to contractors
299	299	under this article, and said such sales shall not be
300	300	considered to be taxable sales within the meaning of
301	301	the Oklahoma Sales Tax Code. As used in this section,
302	302	“agricultural fertilizer ”, “pharmaceuticals”, and
303	303	“biologicals” mean any substance sold and used for
304	304	soil enrichment or soil corrective pu rposes or for
305	305	promoting the growth and productivity of plants or
306	306	animals,
307	307	d. sales of agricultural seed or plants to any person
308	308	regularly engaged, for profit, in the business of
309	309	farming or ranching. This section shall not be
310	310	construed as exemptin g from sales tax, seed which is
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362	362	packaged and sold for use in noncommercial flower and
363	363	vegetable gardens, and
364	364	e. sales of agricultural chemical pesticides t o any
365	365	person regularly engaged, for profit, in the business
366	366	of farming or ranching. For the purposes of this
367	367	subparagraph, “agricultural chemical pesticides ” shall
368	368	include any substance or mixture of substances
369	369	intended for preventing, destroying, repelli ng or
370	370	mitigating any insect, snail, slug, rodent, bird,
371	371	nematode, fungus, weed, or any other form of
372	372	terrestrial or aquatic plant or animal life or virus,
373	373	bacteria or other microorganism, except viruses,
374	374	bacteria or other microorganisms on or in living man ,
375	375	or any substance or mixture of substances intended for
376	376	use as a plant regulator, defoliant , or desiccant.
377	377	The exemption provided in this paragraph shall onl y be granted
378	378	and extended to the purchaser where the items are to be used and in
379	379	fact are used in the production of ag ricultural products;
380	380	6. Sale of farm machinery, repair parts thereto or fuel, oi l,
381	381	lubricants, and other substances used for operation and maintenance
382	382	of the farm machinery to be used directly on a farm or ranch in the
383	383	production, cultivation, planting, s owing, harvesting, processing,
384	384	spraying, preservation or irrigation of any livestock, poul try,
385	385	agricultural, or dairy products produced fr om such lands. The
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437	437	exemption specified in this paragraph shall apply to such farm
438	438	machinery, repair parts, or fuel, oil, lubricants, and other
439	439	substances used by persons engaged in the business of c ustom
440	440	production, cultivation, planting, sowing, harvesting, processing,
441	441	spraying, preservation, or irrigation of any livestock, poultry,
442	442	agricultural, or dairy products for f armers or ranchers. The
443	443	exemption provided for herein shall not apply to motor vehicles;
444	444	7. Sales of supplies, machinery, and equipment to persons
445	445	regularly engaged in the business of raising evergreen trees for
446	446	retail sale in which s uch trees are cut do wn on the premises by the
447	447	consumer purchasing such tree. This exemption shall on ly be granted
448	448	and extended when the items in fact are used in the raising of such
449	449	evergreen trees; and
450	450	8. Sales of materials, supplies , and equipment to an
451	451	agricultural permit holder or to any person with whom the permit
452	452	holder has contracted to construct faciliti es which are or which
453	453	will be used directly in t he production of any livestock , including,
454	454	but not limited to, facilities used in the production a nd storage of
455	455	feed for livestock owned by the permit holder. Any person making
456	456	purchases on behalf of the agr icultural permit holder shall certify,
457	457	in writing, on the copy of the invoice or sales ticket to be
458	458	retained by the vendor , that the purchases are made for and on
459	459	behalf of such permit holder and set out the name and permit number
460	460	of such holder. Any pers on who wrongfully or erroneously certifies
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512	512	that purchases are for an agricultural permit holder or who
513	513	otherwise violates this subsection shall be guilty of a misdemeanor
514	514	and upon conviction thereof shall be punishable by a fine of an
515	515	amount equal to doubl e the amount of sales tax involved or
516	516	imprisonment in the county jail for not more than sixty (60) days or
517	517	by both such fine and imprisonment.
518	518	B. As used in this section and Section 1358.1 of this title:
519	519	1. “Agricultural products ” shall include horses and game
520	520	animals; and
521	521	2. “Game animals” means animals bred to be hunted for sport or
522	522	food, but shall not include feral swine, as defined in Section 6 -603
523	523	of Title 2 of the Oklahoma Statut es; and
524	524	3. “Ranching” or “ranch” shall include the business, or
525	525	facilities for the business, of raising horses.
526	526	Provided, sales of items at race mee tings as defined in Section
527	527	200.1 of Title 3A of the Oklahoma Statutes shall not be exempt
528	528	pursuant to the provisions of this section and Section 1358.1 of
529	529	this title.
530	530	SECTION 2. This act shall become effective November 1, 2024.
531	531
532	532	59-2-2890 QD 1/18/2024 3:41:12 PM

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB2028 Compare Versions