Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB387 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. S. B. NO. 387 Page 1 1
	3	+	SENATE FLOOR VERSION - SB387 SFLR Page 1
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28		-	~~ENGROSSED~~ SENATE
29		-	~~BILL NO.~~ ~~387 By: Rader of the Senate~~
	29	+	SENATE FLOOR VERSION
	30	+	February 15, 2023
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31		-	and
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33		-	~~Boatman of the House~~
	33	+	SENATE BILL NO. 387 By: Rader
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40		-	An Act relating to sales tax exemption; amending 68
41		-	O.S. 2021, Section 1357, as amended by Section 1,
42		-	Chapter 206, O.S.L. 2022 (68 O.S. Su pp. 2022, Section
43		-	1357), which relates to exemptions; providing
44		-	exemption on certain purchases of services or
45		-	tangible personal property for certain nonprofit
46		-	entity; providing for refund on certain taxes paid;
47		-	updating statutory language; and providing an
48		-	effective date.
	40	+
	41	+	[ sales tax exemption - refund - effective date ]
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54	51		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	52		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
56	53		amended by Section 1, Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
57	54		Section 1357), is amended to read as follows:
58	55		Section 1357. Exemptions – General.
59	56		There are hereby specifically exempted fr om the tax levied by
60	57		the Oklahoma Sales Tax Code:
61	58		1. Transportation of school pupils to and from elementary
62	59		schools or high schools in motor or other vehicles;
	60	+	2. Transportation of persons where the fare of each person does
	61	+	not exceed One Dollar ($1.00), or local transportatio n of persons
	62	+	within the corporate limits of a municipality except by taxicabs;
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89		-	2. Transportation of persons where the fare of each person does
90		-	not exceed One Dollar ($1.00), or local transportatio n of persons
91		-	within the corporate limits of a municipality except by taxicabs;
92	90		3. Sales for resale to persons engaged in the bu siness of
93	91		reselling the articles purchased, whether within or without the
94	92		state, provided that such sales to residents of this s tate are made
95	93		to persons to whom sales tax permits have been issued as provided in
96	94		the Oklahoma Sales Tax Code. This exemption shall not apply to the
97	95		sales of articles made to persons holding permits when such persons
98	96		purchase items for their use and whic h they are not regularly
99	97		engaged in the business of reselling; neither shall this exemption
100	98		apply to sales of tangible personal property to peddlers, solic itors
101	99		and other salespersons who do not have an established place of
102	100		business and a sales tax permit. The exemption provided by this
103	101		paragraph shall apply to sales of motor fuel or diesel fuel to a
104	102		Group Five vendor, but the use of such motor fuel or dies el fuel by
105	103		the Group Five vendor shall not be exempt from the tax levied by th e
106	104		Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
107	105		is exempt from sales tax when the motor fuel is for shipment outside
108	106		this state and consumed by a common car rier by rail in the conduct
109	107		of its business. The sales tax shall apply to the purchase of motor
110	108		fuel or diesel fuel in Oklahoma by a common carrier by rail when
111	109		such motor fuel is purchased for fueling, within this state, of any
112	110		locomotive or other motori zed flanged wheel equipment;
	111	+	4. Sales of advertising space in newspapers and periodicals;
	112	+	5. Sales of programs relating to sporting and entertainment
	113	+	events, and sales of advertising on billboards (including signage,
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139		-	4. Sales of advertising space in newspapers and periodicals;
140		-	5. Sales of programs relating to sporting and entertainment
141		-	events, and sales of advertising on billboards (including signage,
142	141		posters, panels, marquees, or on other similar surfaces, whether
143	142		indoors or outdoors) or in programs relating to spo rting and
144	143		entertainment events, and sales of any advertising, to be displayed
145	144		at or in connection with a sporting event, via the Internet,
146	145		electronic display devices or through public address or broadcast
147	146		systems. The exemption authorized by this paragrap h shall be
148	147		effective for all sales made on or after January 1, 2001;
149	148		6. Sales of any advertising, other than the advertising
150	149		described by paragraph 5 of this section, via the Internet,
151	150		electronic display devices or through the electronic media including
152	151		radio, public address o r broadcast systems, television (whether
153	152		through closed circuit broadcasting systems or otherwise), and cable
154	153		and satellite television, and the servicing of any advertising
155	154		devices;
156	155		7. Eggs, feed, supplies, machinery , and equipment purchased by
157	156		persons regularly engaged in the business of raising worms, fish,
158	157		any insect, or any other form of terrestrial or aquatic animal life
159	158		and used for the purpose of raising same for marketing. This
160	159		exemption shall only be granted and extended to the purchaser when
161	160		the items are to be used and in fact are used in the raising of
162	161		animal life as set out above. Each purchaser shall certify, in
	162	+	writing, on the invoice or sales ticket retained by the vendor that
	163	+	the purchaser is regularly engaged in th e business of raising s uch
	164	+	animal life and that the items purchased will be used only in such
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189		-	writing, on the invoice or sales ticket retained by the vendor that
190		-	the purchaser is regularly engaged in th e business of raising s uch
191		-	animal life and that the items purchased will be used only in such
192	192		business. The vendor shall certify to the Oklahoma Tax Co mmission
193	193		that the price of the items has been reduced to grant the full
194	194		benefit of the exemption. Viola tion hereof by the purc haser or
195	195		vendor shall be a misdemeanor;
196	196		8. Sale of natural or artificial gas and electricity, and
197	197		associated delivery or transmi ssion services, when sold exclusively
198	198		for residential use. Provided, this exemption shall not apply to
199	199		any sales tax levied by a city or town, or a county or any other
200	200		jurisdiction in this state;
201	201		9. In addition to the exemptions authorized by Section 135 7.6
202	202		of this title, sales of drugs sold pursuant to a prescription
203	203		written for the treatment of human bei ngs by a person license d to
204	204		prescribe the drugs, and sales of insulin and medical oxygen.
205	205		Provided, this exemption shall not apply to over-the-counter drugs;
206	206		10. Transfers of title or possession of empty, partially
207	207		filled, or filled returnable oil and ch emical drums to any per son
208	208		who is not regularly engaged in the business of selling, reselling
209	209		or otherwise transferring empty, partially filled or filled
210	210		returnable oil drums;
	211	+	11. Sales of one-way utensils, paper napkins, paper cups,
	212	+	disposable hot contai ners, and other one-way carry out materials to
	213	+	a vendor of meals or beverages;
	214	+	12. Sales of food or food products for home consumption which
	215	+	are purchased in whole or in part with coupons issued pursuant to
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237		-	11. Sales of one-way utensils, paper napkins, paper cups,
238		-	disposable hot contai ners, and other one-way carry out materials to
239		-	a vendor of meals or beverages;
240		-	12. Sales of food or food products for home consumption which
241		-	are purchased in whole or in part with coupons issued pursuant to
242	243		the federal food stamp program as authorized by Sections 2011
243	244		through 2029 of Title 7 of the United States Code, as to that
244	245		portion purchased with such coupons. The exemption provided for
245	246		such sales shall be inapplicable to such sales upon the effective
246	247		date of any federal law that removes the requirem ent of the
247	248		exemption as a condition for participation by the state in the
248	249		federal food stamp program;
249	250		13. Sales of food or food products, or any equ ipment or
250	251		supplies used in the preparation of the food or food products to or
251	252		by an organization which:
252	253		a. is exempt from taxation pursuant to the provisions of
253	254		Section 501(c)(3) of the Internal Revenue Code, 26
254	255		U.S.C., Section 501(c)(3), and which provid es and
255	256		delivers prepared meals for home consumption to
256	257		elderly or homebound persons as part of a program
257	258		commonly known as “Meals on Wheels” or “Mobile Meals”,
258	259		or
259	260		b. is exempt from taxation pursuant to the provisions of
260	261		Section 501(c)(3) of the Internal R evenue Code, 26
	262	+	U.S.C., Section 501(c)(3), and which receives federal
	263	+	funding pursuant to the Older Americans Act of 1965,
	264	+	as amended, for the purpose of providing nutrition
	265	+	programs for the care and benefit of elderly persons;
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287		-	U.S.C., Section 501(c)(3), and which receives federal
288		-	funding pursuant to the Older Americans Act of 1965,
289		-	as amended, for the purpose of providing nutrition
290		-	programs for the care and benefit of elderly persons;
291	293		14. a. Sales of tangible pe rsonal property or services to or
292	294		by organizations which are exempt from taxation
293	295		pursuant to the provisions o f Section 501(c)(3) of the
294	296		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
295	297		and:
296	298		(1) are primarily involved in the collection and
297	299		distribution of food and other household products
298	300		to other organizations that facilitate the
299	301		distribution of such products to the needy and
300	302		such distributee organizations are exempt from
301	303		taxation pursuant to the provisions of Section
302	304		501(c)(3) of the Internal Revenue Code, 26
303	305		U.S.C., Section 501(c)(3), or
304	306		(2) facilitate the distribution of such products to
305	307		the needy.
306	308		b. Sales made in the course of business for profit or
307	309		savings, competing with other persons engaged in the
308	310		same or similar business shall not be exempt under
309	311		this paragraph.
	312	+	c. The exemption provided by this paragraph shall include
	313	+	sales of tangible personal property or taxable
	314	+	services consumed or incorporated in the construction
	315	+	of a facility placed in service durin g calendar year
	316	+	2023. The exemption shall include sales and taxable
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336		-	c. The exemption provided by this paragraph shall include
337		-	sales of tangible personal property or taxable
338		-	services consumed or incorporated in the construction
339		-	of a facility placed in service durin g calendar year
340		-	2023. The exemption shall include sales and taxable
341	344		services to the organization and to any person,
342	345		entity, contractor, or subcontractor with whom the
343	346		organization has duly entered into a construction
344	347		contract necessary for carrying out th e contract. For
345	348		sales tax paid on purchases that would otherwise be
346	349		exempt pursuant to this subparagraph but occurred
347	350		before the effective date of this act , the Tax
348	351		Commission shall make refunds to the purchasers in the
349	352		full amount of the sales tax paid, as documented by
350	353		the purchaser and veri fied by the Tax Commission;
351	354		15. Sales of tangible personal property or services to
352	355		children’s homes which are located on church-owned property and are
353	356		operated by organizations exempt from taxation pursuant to the
354	357		provisions of the Internal Revenue Code, 26 U.S.C., Section
355	358		501(c)(3);
356	359		16. Sales of computers, data processing equipment, related
357	360		peripherals, and telephone, telegraph or telecommun ications service
358	361		and equipment for use in a qualified aircraft maintenance or
359	362		manufacturing facility. For purposes of this paragraph, “qualified
	363	+	aircraft maintenance or manufacturing facility” means a new or
	364	+	expanding facility prima rily engaged in aircraf t repair, building,
	365	+	or rebuilding whether or not on a factory basis, whose total cost of
	366	+	construction exceeds the sum of Five Million Dollars ($5,000,000.00)
	367	+	and which employs at least two hundred fifty (250) new full -time-
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386		-	aircraft maintenance or manufacturing facility” means a new or
387		-	expanding facility prima rily engaged in aircraf t repair, building,
388		-	or rebuilding whether or not on a factory basis, whose total cost of
389		-	construction exceeds the sum of Five Million Dollars ($5,000,000.00)
390		-	and which employs at least two hundred fifty (250) new full -time-
391	395		equivalent employees, as certified by the Oklahoma Employment
392	396		Security Commission, upon completion of the facility. In order to
393	397		qualify for the exemption provided for by this paragraph, the cost
394	398		of the items purchased by the qualified aircraft maintenance or
395	399		manufacturing facility shall e qual or exceed the sum of Two Million
396	400		Dollars ($2,000,000.00);
397	401		17. Sales of tangible personal property consumed or
398	402		incorporated in the construction or expansion of a qualified
399	403		aircraft maintenance or manufacturing facility as define d in
400	404		paragraph 16 of this section. For purposes of this paragraph, sales
401	405		made to a contractor or subcontractor that has previously entered
402	406		into a contractual relationship with a qualified aircraft
403	407		maintenance or manufacturing facility for construction or expansion
404	408		of such a facility shall be considered sales made to a qualified
405	409		aircraft maintenance or manufacturing facility;
406	410		18. Sales of the following telecommunications services:
407	411		a. Interstate and International “800 service”. “800
408	412		service” means a “telecommunications service ” that
409	413		allows a caller to dial a toll-free number without
	414	+	incurring a charge for the call. The service is
	415	+	typically marketed under the name “800”, “855”, “866”,
	416	+	“877” and “888” toll-free calling, and any subsequent
	417	+	numbers designated by the Federal Communic ations
	418	+	Commission,
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436		-	incurring a charge for the call. The service is
437		-	typically marketed under the name “800”, “855”, “866”,
438		-	“877” and “888” toll-free calling, and any subsequent
439		-	numbers designated by the Federal Communic ations
440		-	Commission,
441	446		b. Interstate and International “900 service”. “900
442	447		service” means an inbound toll “telecommunications
443	448		service” purchased by a subscriber that allows the
444	449		subscriber’s customers to call in to the subscriber ’s
445	450		prerecorded announcement or live service. “900
446	451		service” does not include the charge for: collection
447	452		services provided by the seller of the
448	453		“telecommunications services” to the subscriber, or
449	454		service or product sold by the subscriber to the
450	455		subscriber’s customer. The service is t ypically
451	456		marketed under the name “900” service, and any
452	457		subsequent numbers designated by the Federal
453	458		Communications Commission,
454	459		c. Interstate and International “private communications
455	460		service”. “Private communications service ” means a
456	461		“telecommunications service” that entitles the
457	462		customer to exclusive or priority use of a
458	463		communications channel or group of channels between or
459	464		among termination points, regardless of the manner in
	465	+	which such channel or channels are connected, and
	466	+	includes switching capacity , extension lines, stations
	467	+	and any other associated services that are provided in
	468	+	connection with the use of such channel or channels,
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486		-	which such channel or channels are connected, and
487		-	includes switching capacity , extension lines, stations
488		-	and any other associated services that are provided in
489		-	connection with the use of such channel or channels,
490	496		d. “Value-added nonvoice data service”. “Value-added
491	497		nonvoice data service ” means a service that otherwise
492	498		meets the definition of “telecommunications services”
493	499		in which computer processing applications are used to
494	500		act on the form, content, code or protocol of the
495	501		information or data primarily for a purpose other than
496	502		transmission, conveyance , or routing,
497	503		e. Interstate and International telecommunications
498	504		service which is:
499	505		(1) rendered by a company for private use within its
500	506		organization, or
501	507		(2) used, allocated or distributed by a company to
502	508		its affiliated group,
503	509		f. Regulatory assessments and charges including charges
504	510		to fund the Oklahoma Universal Service Fund, the
505	511		Oklahoma Lifeline Fund and the Oklahoma High Cost
506	512		Fund, and
507	513		g. Telecommunications nonre curring charges including but
508	514		not limited to the installation, connection, change ,
	515	+	or initiation of telecommunications se rvices which are
	516	+	not associated with a retail consumer sale;
	517	+	19. Sales of railroad track spikes manufactured and sold for
	518	+	use in this state in the construction or repair of railroad tracks,
	519	+	switches, sidings, and turnouts;
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535		-	or initiation of telecommunications se rvices which are
536		-	not associated with a retail consumer sale;
537		-	19. Sales of railroad track spikes manufactured and sold for
538		-	use in this state in the construction or repair of railroad tracks,
539		-	switches, sidings, and turnouts;
540	547		20. Sales of aircraft and aircraft parts provided such sales
541	548		occur at a qualified aircraft maintenance facility. As used in this
542	549		paragraph, “qualified aircraft maint enance facility” means a
543	550		facility operated by an air common carrier including one or more
544	551		component overhaul support buildings or structures in an area owned,
545	552		leased, or controlled by the air common carrier, at which there were
546	553		employed at least two thousa nd (2,000) full-time-equivalent
547	554		employees in the preceding year as certified by the Oklahoma
548	555		Employment Security Commission and which is primarily related to the
549	556		fabrication, repair, alteration, modification, refurbishing,
550	557		maintenance, building, or rebuilding of commercial aircraft or
551	558		aircraft parts used in air common carriage. For purposes of this
552	559		paragraph, “air common carrier” shall also include members of an
553	560		affiliated group as defined by Section 1504 of the Internal Revenue
554	561		Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
555	562		machinery, tools, supplies, equipment , and related tangible p ersonal
556	563		property and services used or consumed in the repair, remodeling, or
557	564		maintenance of aircraft, aircraft engines or aircraft component
558	565		parts which occur at a qualified aircraft maintenance facility;
	566	+	21. Sales of machinery and equipment purchased and used by
	567	+	persons and establishments primarily engaged in computer services
	568	+	and data processing:
	569	+	a. as defined under Industrial Group Numbers 7372 and
	570	+	7373 of the Standard Industrial Classification (SIC)
559	571
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579	592		20
580	593		21
581	594		22
582	595		23
583	596		24
584	597
585		-	21. Sales of machinery and equipment purchased and used by
586		-	persons and establishments primarily engaged in computer services
587		-	and data processing:
588		-	a. as defined under Industrial Group Numbers 7372 and
589		-	7373 of the Standard Industrial Classification (SIC)
590	598		Manual, latest version, which derive at least fifty
591	599		percent (50%) of their annual gross revenues from the
592	600		sale of a product or service to an out-of-state buyer
593	601		or consumer, and
594	602		b. as defined under Industrial Gr oup Number 7374 of the
595	603		SIC Manual, latest version, which derive at least
596	604		eighty percent (80%) of th eir annual gross revenues
597	605		from the sale of a product or service to an out-of-
598	606		state buyer or consumer.
599	607		Eligibility for the exemption set out in this paragraph shall be
600	608		established, subject to review by the Tax Commission, by annually
601	609		filing an affidavit wit h the Tax Commission stating that the
602	610		facility so qualifies and such information as required by the Tax
603	611		Commission. For purposes of determining whether annu al gross
604	612		revenues are derived from sales to out-of-state buyers or consumers,
605	613		all sales to the fede ral government shall be considered to be to an
606	614		out-of-state buyer or consumer;
607	615		22. Sales of prosthetic devices to an individual for use by
608	616		such individual. For purposes of this paragraph, “prosthetic
	617	+	device” shall have the same meaning as provided in Sec tion 1357.6 of
	618	+	this title, but shall not include corrective eye glasses, contact
	619	+	lenses, or hearing aids;
	620	+	23. Sales of tangible personal property or service s to a motion
	621	+	picture or television production company to be used or consumed in
609	622
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617	631		8
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619	633		10
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621	635		12
622	636		13
623	637		14
624	638		15
625	639		16
626	640		17
627	641		18
628	642		19
629	643		20
630	644		21
631	645		22
632	646		23
633	647		24
634	648
635		-	device” shall have the same meaning as provided in Sec tion 1357.6 of
636		-	this title, but shall not include corrective eye glasses, contact
637		-	lenses, or hearing aids;
638		-	23. Sales of tangible personal property or service s to a motion
639		-	picture or television production company to be used or consumed in
640	649		connection with an eligible production. For purposes of this
641	650		paragraph, “eligible production” means a documentary, special, music
642	651		video or a television commercial or televisi on program that will
643	652		serve as a pilot for or be a segment of an ongoing dramatic or
644	653		situation comedy series filmed or taped for network or national or
645	654		regional syndication or a feature-length motion picture intended for
646	655		theatrical release or for network or national or regional
647	656		syndication or broadcast. The provisions of this paragraph shall
648	657		apply to sales occurring on or after July 1, 1996. In order to
649	658		qualify for the exemption, the motion picture or television
650	659		production company shall file any documentat ion and information
651	660		required to be submitted pursuant to rules promulgated by the Tax
652	661		Commission;
653	662		24. Sales of diesel fuel sold for consumption by commercial
654	663		vessels, barges and other commercial watercraft;
655	664		25. Sales of tangible personal property or serv ices to tax-
656	665		exempt independent nonprofit biomedical research foundations that
657	666		provide educational p rograms for Oklahoma science students and
	667	+	teachers and to tax-exempt independent nonprofit community blood
	668	+	banks headquartered in this state;
	669	+	26. Effective May 6, 1992, sales of wireless telecommunications
	670	+	equipment to a vendor who subsequently transfers the equipment at no
	671	+	charge or for a discounted charge to a consumer as part of a
658	672
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661	676		3
662	677		4
663	678		5
664	679		6
665	680		7
666	681		8
667	682		9
668	683		10
669	684		11
670	685		12
671	686		13
672	687		14
673	688		15
674	689		16
675	690		17
676	691		18
677	692		19
678	693		20
679	694		21
680	695		22
681	696		23
682	697		24
683	698
684		-	teachers and to tax-exempt independent nonprofit community blood
685		-	banks headquartered in this state;
686		-	26. Effective May 6, 1992, sales of wireless telecommunications
687		-	equipment to a vendor who subsequently transfers the equipment at no
688		-	charge or for a discounted charge to a consumer as part of a
689	699		promotional package or as an inducement to commence or continue a
690	700		contract for wireless telecommunications services;
691	701		27. Effective January 1, 1991, leases of rail transportat ion
692	702		cars to haul coal to coal-fired plants located in this state which
693	703		generate electric power;
694	704		28. Beginning July 1, 2005, sales of aircraft engine repairs ,
695	705		modification, and replacement parts, sales of aircraft frame repairs
696	706		and modification, aircraft i nterior modification, and paint, and
697	707		sales of services employed in the repair, modification, and
698	708		replacement of parts of aircraft engines, aircraft frame and
699	709		interior repair and modification, and paint;
700	710		29. Sales of materials and supplies to the owner or operator of
701	711		a ship, motor vessel, or barge that is used in interstate or
702	712		international commerce if the materials and supplies:
703	713		a. are loaded on the ship, mot or vessel, or barge and
704	714		used in the maintenance and operation of the ship,
705	715		motor vessel, or barge, or
706	716		b. enter into and become component parts of the ship,
707	717		motor vessel, or barge;
	718	+	30. Sales of tangible personal property made at estate sales at
	719	+	which such property is offered for sale on the premises of the
	720	+	former residence of the decedent by a person wh o is not required to
	721	+	be licensed pursuant to the Transient Merchant Licensing Act, or who
	722	+	is not otherwise required to obtain a sales tax permit for the sale
708	723
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	725	+	(Bold face denotes Committee Amendments) 1
710	726		2
711	727		3
712	728		4
713	729		5
714	730		6
715	731		7
716	732		8
717	733		9
718	734		10
719	735		11
720	736		12
721	737		13
722	738		14
723	739		15
724	740		16
725	741		17
726	742		18
727	743		19
728	744		20
729	745		21
730	746		22
731	747		23
732	748		24
733	749
734		-	30. Sales of tangible personal property made at estate sales at
735		-	which such property is offered for sale on the premises of the
736		-	former residence of the decedent by a person wh o is not required to
737		-	be licensed pursuant to the Transient Merchant Licensing Act, or who
738		-	is not otherwise required to obtain a sales tax permit for the sale
739	750		of such property pursuant to the provisions of Section 1364 of this
740	751		title; provided:
741	752		a. such sale or event may not be held for a period
742	753		exceeding three (3) consecutive days,
743	754		b. the sale must be conducted within six (6) months of
744	755		the date of death of the d ecedent, and
745	756		c. the exemption allowed by this paragraph shall not be
746	757		allowed for property that was not part of the
747	758		decedent’s estate;
748	759		31. Beginning January 1, 2004, sales of electricity and
749	760		associated delivery and transmission services, when sold exclusiv ely
750	761		for use by an oil and gas operator for reservoir dewatering projects
751	762		and associated operations commencing on or after July 1, 2003, in
752	763		which the initial water-to-oil ratio is greater than or equal to
753	764		five-to-one water-to-oil, and such oil and gas devel opment projects
754	765		have been classified by the Corporation Commission as a reservoir
755	766		dewatering unit;
756	767		32. Sales of prewritten computer software that is delivered
757	768		electronically. For purposes of this paragraph, “delivered
	769	+	electronically” means delivered to t he purchaser by means other than
	770	+	tangible storage media;
	771	+	33. Sales of modular dwelling units whe n built at a production
	772	+	facility and moved in whole or in parts, to be assembled on-site,
	773	+	and permanently affixed to the real property and used for
758	774
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761	778		3
762	779		4
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764	781		6
765	782		7
766	783		8
767	784		9
768	785		10
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774	791		16
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777	794		19
778	795		20
779	796		21
780	797		22
781	798		23
782	799		24
783	800
784		-	electronically” means delivered to t he purchaser by means other than
785		-	tangible storage media;
786		-	33. Sales of modular dwelling units whe n built at a production
787		-	facility and moved in whole or in parts, to be assembled on-site,
788		-	and permanently affixed to the real property and used for
789	801		residential or commercial purposes. The exemption provided by this
790	802		paragraph shall equal forty -five percent (45%) of the total sales
791	803		price of the modular dwelling unit. For purposes of this paragraph,
792	804		“modular dwelling unit” means a structure that is not subject to the
793	805		motor vehicle excise tax imposed pursuant to Section 2103 of this
794	806		title;
795	807		34. Sales of tangible personal property or services to:
796	808		a. persons who are residents of Oklahoma and have been
797	809		honorably discharged from active service in any branch
798	810		of the Armed Forces of the United States or Oklahoma
799	811		National Guard and who have been certified by the
800	812		United States Department of Ve terans Affairs or its
801	813		successor to be in receipt of disability compensation
802	814		at the one-hundred-percent rate and the disability
803	815		shall be permanent and have been sustained through
804	816		military action or accident or resulting from disea se
805	817		contracted while in such active service and registered
806	818		with the veterans registry created by the Oklahoma
807	819		Department of Veterans Affairs; provided, that if th e
	820	+	veteran received the sales tax exemption prior to
	821	+	November 1, 2020, he or she shall be requir ed to
	822	+	register with the vet erans registry prior to July 1,
	823	+	2023, in order to remain qualified, or
808	824
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811	828		3
812	829		4
813	830		5
814	831		6
815	832		7
816	833		8
817	834		9
818	835		10
819	836		11
820	837		12
821	838		13
822	839		14
823	840		15
824	841		16
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828	845		20
829	846		21
830	847		22
831	848		23
832	849		24
833	850
834		-	veteran received the sales tax exemption prior to
835		-	November 1, 2020, he or she shall be requir ed to
836		-	register with the vet erans registry prior to July 1,
837		-	2023, in order to remain qualified, or
838	851		b. the surviving spouse of the person in subparagraph a
839	852		of this paragraph if the person is deceased and the
840	853		spouse has not remarried and the surviving spouse of a
841	854		person who is determined by the United States
842	855		Department of Defense or any branch of the United
843	856		States military to have died while in the line of duty
844	857		if the spouse has not remarried . Sales for the
845	858		benefit of an eligible person to a spouse of the
846	859		eligible person or to a member of the household in
847	860		which the eligible person resides and who is
848	861		authorized to make purchases on the person’s behalf,
849	862		when such eligible person is not present at the sale,
850	863		shall also be exempt for purpose s of this paragraph.
851	864		The Oklahoma Tax Commission s hall issue a separate
852	865		exemption card to a spouse of an eligible person or to
853	866		a member of the household in which the eligible person
854	867		resides who is authorized to make purchase s on the
855	868		person’s behalf, if requested by the eligible person.
856	869		Sales qualifying for the exemption authorized by this
857	870		paragraph shall not exceed Twenty-five Thousand
	871	+	Dollars ($25,000.00) per year per individual while the
	872	+	disabled veteran is living. Sales qualifying for the
	873	+	exemption authorized by this paragr aph shall not
	874	+	exceed One Thousand Dollars ($1,000.00) per year for
858	875
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866	884		8
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881	899		23
882	900		24
883	901
884		-	Dollars ($25,000.00) per year per individual while the
885		-	disabled veteran is living. Sales qualifying for the
886		-	exemption authorized by this paragr aph shall not
887		-	exceed One Thousand Dollars ($1,000.00) per year for
888	902		an unremarried surviving spouse. Upon request of the
889	903		Tax Commission, a person asserting or cla iming the
890	904		exemption authorized by this p aragraph shall provide a
891	905		statement, executed under oat h, that the total sales
892	906		amounts for which the exemption is applicable have not
893	907		exceeded Twenty-five Thousand Dollars ($25,000.00) per
894	908		year per living disabled vet eran or One Thousand
895	909		Dollars ($1,000.00) per year for an unremarried
896	910		surviving spouse. If the amount of such exempt sales
897	911		exceeds such amount, the sales tax in excess of the
898	912		authorized amount shall be treated as a direct sales
899	913		tax liability and may be rec overed by the Tax
900	914		Commission in the same manner provided by law for
901	915		other taxes including penalty and interest. The Tax
902	916		Commission shall promulgate any rules necessary to
903	917		implement the provisions of this paragraph, which
904	918		shall include rules providing for the disclosure of
905	919		information about pers ons eligible for the exemption
906	920		authorized in this par agraph to the Oklahoma
	921	+	Department of Veteran’s Veterans Affairs, as
	922	+	authorized in Section 205 of this title;
	923	+	35. Sales of electricity to the operator, specifically
	924	+	designated by the Corporation Commission, of a spacing unit or lease
	925	+	from which oil is produced or attempted to be produced usin g
907	926
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909	929		2
910	930		3
911	931		4
912	932		5
913	933		6
914	934		7
915	935		8
916	936		9
917	937		10
918	938		11
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920	940		13
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929	949		22
930	950		23
931	951		24
932	952
933		-	Department of Veteran’s Veterans Affairs, as
934		-	authorized in Section 205 of this title;
935		-	35. Sales of electricity to the operator, specifically
936		-	designated by the Corporation Commission, of a spacing unit or lease
937		-	from which oil is produced or attempted to be produced usin g
938	953		enhanced recovery methods including, but not limited to, increased
939	954		pressure in a producing formation through the use of water or
940	955		saltwater if the electrical usage is associa ted with and necessary
941	956		for the operation of equipme nt required to inject or circ ulate
942	957		fluids in a producing formation for the purpose of forcing oil or
943	958		petroleum into a wellbore for eventual recovery and production f rom
944	959		the wellhead. In order to be eligib le for the sales tax exempti on
945	960		authorized by this p aragraph, the total content o f oil recovered
946	961		after the use of enhanced recovery methods shall not exceed one
947	962		percent (1%) by volume. The exemption authorized by thi s paragraph
948	963		shall be applicable only to the state sales tax rate and shall not
949	964		be applicable to any county or municipal sales tax rate;
950	965		36. Sales of intrastate charter and tour bus transportation.
951	966		As used in this paragraph, “intrastate charter and tour b us
952	967		transportation” means the transportat ion of persons from one
953	968		location in this state to another location in this state in a motor
954	969		vehicle which has been constructed in such a manner that it may
955	970		lawfully carry more than eighteen persons, and which is ordi narily
956	971		used or rented to carry persons f or compensation. Provid ed, this
	972	+	exemption shall not apply to regularly schedule d bus transportation
	973	+	for the general public;
	974	+	37. Sales of vitamins, minerals, and dietary supplements by a
	975	+	licensed chiropractor to a p erson who is the patient of such
	976	+	chiropractor at the physical loc ation where the chiropra ctor
957	977
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959	980		2
960	981		3
961	982		4
962	983		5
963	984		6
964	985		7
965	986		8
966	987		9
967	988		10
968	989		11
969	990		12
970	991		13
971	992		14
972	993		15
973	994		16
974	995		17
975	996		18
976	997		19
977	998		20
978	999		21
979	1000		22
980	1001		23
981	1002		24
982	1003
983		-	exemption shall not apply to regularly schedule d bus transportation
984		-	for the general public;
985		-	37. Sales of vitamins, minerals, and dietary supplements by a
986		-	licensed chiropractor to a p erson who is the patient of such
987		-	chiropractor at the physical loc ation where the chiropra ctor
988	1004		provides chiropractic care or services to such patient. The
989	1005		provisions of this paragraph shall not be applicable to any drug,
990	1006		medicine, or substance for which a prescription by a licensed
991	1007		physician is required;
992	1008		38. Sales of goods, wares, merchandis e, tangible personal
993	1009		property, machinery, and equipment to a web search portal located in
994	1010		this state which derives at least eighty percent (80%) of its annual
995	1011		gross revenue from the sale of a product or servi ce to an out-of-
996	1012		state buyer or consumer. For pu rposes of this paragraph, “web
997	1013		search portal” means an establishment classified under NAICS code
998	1014		519130 which operates websites that use a search engine to generate
999	1015		and maintain extensive databases of Interne t addresses and content
1000	1016		in an easily searchable format;
1001	1017		39. Sales of tangible p ersonal property consumed or
1002	1018		incorporated in the construction or expansion of a facility for a
1003	1019		corporation organized under Section 437 et seq. of Title 18 of the
1004	1020		Oklahoma Statutes as a rural electric coo perative. For purpo ses of
1005	1021		this paragraph, sales made to a contractor or subcontractor that has
1006	1022		previously entered into a contractual relationship with a rural
	1023	+	electric cooperative for cons truction or expansion of a facility
	1024	+	shall be considered sales made to a rural electric cooperative;
	1025	+	40. Sales of tangib le personal property or services to a
	1026	+	business primarily engaged in the repair of consumer electronic
	1027	+	goods including, but not limited t o, cell phones, compact disc
1007	1028
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1009	1031		2
1010	1032		3
1011	1033		4
1012	1034		5
1013	1035		6
1014	1036		7
1015	1037		8
1016	1038		9
1017	1039		10
1018	1040		11
1019	1041		12
1020	1042		13
1021	1043		14
1022	1044		15
1023	1045		16
1024	1046		17
1025	1047		18
1026	1048		19
1027	1049		20
1028	1050		21
1029	1051		22
1030	1052		23
1031	1053		24
1032	1054
1033		-	electric cooperative for cons truction or expansion of a facility
1034		-	shall be considered sales made to a rural electric cooperative;
1035		-	40. Sales of tangib le personal property or services to a
1036		-	business primarily engaged in the repair of consumer electronic
1037		-	goods including, but not limited t o, cell phones, compact disc
1038	1055		players, personal computers, MP3 pla yers, digital devices for the
1039	1056		storage and retrieval of information through hard-wired or wireless
1040	1057		computer or Internet connections, if the devices are sold to the
1041	1058		business by the original man ufacturer of such devices and the
1042	1059		devices are repaired, refitted or refurbished for sa le by the entity
1043	1060		qualifying for the exemption authorized by this paragraph directly
1044	1061		to retail consumers or if the devices are sold to another business
1045	1062		entity for sale to retail consumers;
1046	1063		41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
1047	1064		or leases of rolling stock when sold o r leased by the manufacturer,
1048	1065		regardless of whether the purchaser is a public services corporation
1049	1066		engaged in business as a common carri er of property or passengers by
1050	1067		railway, for use or consumption by a common carrier directly in the
1051	1068		rendition of public service. For purposes of this paragraph,
1052	1069		“rolling stock” means locomotives, autocars, and railroad cars and
1053	1070		“sales or leases” includes railroad car maintenance and retrofittin g
1054	1071		of railroad cars for th eir further use only on the railways; and
1055	1072		42. Sales of gold, silver, platinum, palladium, or other
1056	1073		bullion items such as coins and bars and legal tender of any nation,
	1074	+	which legal tender is s old according to its value as precious m etal
	1075	+	or as an investment. As used in the paragraph, “bullion” means any
	1076	+	precious metal including, but not limited to, gold, silver,
	1077	+	platinum, and palladium, that is in such a state or condition that
	1078	+	its value depends upon its precious metal content and no t its form.
1057	1079
1058		-	ENGR. S. B. NO. 387 Page 22 1
	1080	+	SENATE FLOOR VERSION - SB387 SFLR Page 22
	1081	+	(Bold face denotes Committee Amendments) 1
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1083		-	which legal tender is s old according to its value as precious metal
1084		-	or as an investment. As used in the paragraph, “bullion” means any
1085		-	precious metal including, but not limited to, gold, silver,
1086		-	platinum, and palladium, that is in such a state or condition that
1087		-	its value depends upon its precious metal content and not its form.
1088	1106		The exemption authorized by this paragraph shall not apply to
1089	1107		fabricated metals that have been processed or manufactured for
1090	1108		artistic use or as jewelry.
1091	1109		SECTION 2. This act shall become effective November 1, 2023.
1092		-	Passed the Senate the 23rd day of March, 2023.
1093		-
1094		-
1095		-
1096		-	Presiding Officer of the Senate
1097		-
1098		-
1099		-	Passed the House of Representatives the ____ day of __________,
1100		-	2023.
1101		-
1102		-
1103		-
1104		-	Presiding Officer of the House
1105		-	of Representatives
1106		-
	1110	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
	1111	+	February 15, 2023 - DO PASS