Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB392 Compare Versions

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Version 2 (New)

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3		-	ENGR. S. B. NO. 392 Page 1 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 392 By: Stanley of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 27, 2023
	31	+	AS AMENDED
	32	+
	33	+	SENATE BILL NO. 392 By: Stanley of the Senate
30	34
31	35		and
32	36
33	37		Boles of the House
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38		-	An Act relating to sales tax exemption; amending 68
39		-	O.S. 2021, Section 1357, as amend ed by Section 1,
40		-	Chapter 206, O.S.L. 2022 (68 O.S. Su pp. 2022, Section
41		-	1357), which relates to exemptions; authorizing
42		-	surviving spouse exemption for certain cir cumstance;
43		-	modifying limit on sales q ualifying for certain
44		-	exemption for surviving spou se; updating statutory
45		-	language; and providing an effective d ate.
	42	+
	43	+	[ sales tax exemption - limit on sales - effective
	44	+	date ]
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50	49		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
51	50		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
52	51		amended by Section 1, Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
53	52		Section 1357), is amended to read as foll ows:
54	53		Section 1357. Exemptions – General.
55	54		There are hereby specifically exempted from the tax levied by
56	55		the Oklahoma Sales Tax Code:
57	56		1. Transportation of school pupi ls to and from elementary
58	57		schools or high schools in motor or other vehicles;
59	58		2. Transportation of persons where the fare of each person does
60	59		not exceed One Dollar ($1.00), or local transportatio n of persons
61	60		within the corporate limits of a municipality e xcept by taxicabs;
	61	+	3. Sales for resale to persons engaged in the bu siness of
	62	+	reselling the articles purchased, whether within or without the
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88		-	3. Sales for resale to persons engaged in the bu siness of
89		-	reselling the articles purchased, whether within or without the
90	90		state, provided that such sales to residents of this s tate are made
91	91		to persons to whom sales tax permits have been issued as provided in
92	92		the Oklahoma Sales Tax Code. This exemption shall not apply to the
93	93		sales of articles made to persons holding permits when such persons
94	94		purchase items for their use and whic h they are not regularly
95	95		engaged in the business of resellin g; neither shall this exemption
96	96		apply to sales of tangible personal property to peddlers, solicitors
97	97		and other salespersons who do not have an established place of
98	98		business and a sales tax permit. The exemption provided by this
99	99		paragraph shall apply to sa les of motor fuel or diesel fuel to a
100	100		Group Five vendor, but the use of such motor fuel or diesel fuel by
101	101		the Group Five vendor shall not be exempt from the tax levied by the
102	102		Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
103	103		is exempt from sales tax when the motor fuel is for shipment outside
104	104		this state and consumed by a common carrier by rail in the conduct
105	105		of its business. The sales tax shall apply to the purchase of motor
106	106		fuel or diesel fuel in Oklahoma by a common carrier by rail when
107	107		such motor fuel is purchased for fueling, within this state, of any
108	108		locomotive or other motorized flanged wheel equipment;
109	109		4. Sales of advertising space in newspapers and periodicals;
110	110		5. Sales of programs relating to s porting and entertainment
111	111		events, and sales of advertising on billboards (including signage,
	112	+	posters, panels, marquees or on other similar surfaces, whether
	113	+	indoors or outdoors) or in programs relating to sporting and
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138		-	posters, panels, marquees or on other similar surfaces, whether
139		-	indoors or outdoors) or in programs relating to spo rting and
140	141		entertainment events, and sales of any advertising, to be displayed
141	142		at or in connection with a sporting event, via the Internet,
142	143		electronic display devices or through public address or broadcast
143	144		systems. The exemption authorized by this paragraph shall be
144	145		effective for all sales made on or af ter January 1, 2001;
145	146		6. Sales of any advertising, other than the advertising
146	147		described by paragraph 5 of this section, via the Internet,
147	148		electronic display devices or through the electronic media including
148	149		radio, public address o r broadcast systems, tel evision (whether
149	150		through closed circuit broadcasting systems or otherwise), and cable
150	151		and satellite television, and the servicing of any advertising
151	152		devices;
152	153		7. Eggs, feed, supplies, machinery, and equipment purchased by
153	154		persons regularly engaged in the business of raising worms, fish,
154	155		any insect, or any other form of terrestrial or aquatic animal life
155	156		and used for the purpose of raising same for marketing. This
156	157		exemption shall only be granted and extended to the purchaser when
157	158		the items are to be used a nd in fact are used in the raising of
158	159		animal life as set out above. Each purchaser shall certify, in
159	160		writing, on the invoice or sales ticket retained by the vendor that
160	161		the purchaser is regularly engaged in the business of raising s uch
161	162		animal life and that the items purchased will be used on ly in such
	163	+	business. The vendor shall certify to the Oklahoma Tax Co mmission
	164	+	that the price of the items has been reduced to grant the full
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188		-	business. The vendor shall certify to the Oklahoma Tax Co mmission
189		-	that the price of the items has been reduced to grant the full
190	192		benefit of the exemption. Violation hereof by the purc haser or
191	193		vendor shall be a misdemeanor;
192	194		8. Sale of natural or artificial gas and electricity, and
193	195		associated delivery or transmi ssion services, when sold exclusively
194	196		for residential use. Provided, this exemption shall not apply to
195	197		any sales tax levied by a city or town, or a county or any other
196	198		jurisdiction in this state;
197	199		9. In addition to the exemptions authorized by Section 135 7.6
198	200		of this title, sales of drugs sold pursuant to a prescription
199	201		written for the treatment of human beings by a person license d to
200	202		prescribe the drugs, and sales of insulin and medical oxygen.
201	203		Provided, this exemption shall not apply to over-the-counter drugs;
202	204		10. Transfers of title or possession of empty, partially
203	205		filled, or filled returnable oil and chemical drums to any per son
204	206		who is not regularly engaged in the business of sellin g, reselling
205	207		or otherwise transferring empty, partially filled or filled
206	208		returnable oil drums;
207	209		11. Sales of one-way utensils, paper napkins, paper cups,
208	210		disposable hot containers, and other one-way carry out materials to
209	211		a vendor of meals or beverages;
210	212		12. Sales of food or food products for home consumption which
211	213		are purchased in whole or in part with coupons issued pursuant to
	214	+	the federal food stamp program as authorized by Sections 2011
	215	+	through 2029 of Title 7 of the United States Code, as to that
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238		-	the federal food stamp program as authorized by Sections 2011
239		-	through 2029 of Title 7 of the United States Code, as to that
240	243		portion purchased with such coupons. The exemption provided for
241	244		such sales shall be inapplicable to such sales upon the effective
242	245		date of any federal law that removes the requirement of the
243	246		exemption as a condition for participation by the state in the
244	247		federal food stamp program;
245	248		13. Sales of food or food products, or any equ ipment or
246	249		supplies used in the preparation of the food or food products to or
247	250		by an organization which:
248	251		a. is exempt from taxation pursuant to the provisions of
249	252		Section 501(c)(3) of the Internal Revenue Code, 26
250	253		U.S.C., Section 501(c)(3), and which provid es and
251	254		delivers prepared meals for home consumption to
252	255		elderly or homebound persons as part of a program
253	256		commonly known as “Meals on Wheels” or “Mobile Meals”,
254	257		or
255	258		b. is exempt from taxation pursuant to the provisions of
256	259		Section 501(c)(3) of the Internal R evenue Code, 26
257	260		U.S.C., Section 501(c)(3), and which receives federal
258	261		funding pursuant to the Older Americans Act of 1965,
259	262		as amended, for the purpose of providing nutrition
260	263		programs for the care and benefit of elderly persons;
	264	+	14. a. Sales of tangible pe rsonal property or services to or
	265	+	by organizations which are exempt from taxation
	266	+	pursuant to the provisions of Section 501(c)(3) of the
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287		-	14. a. Sales of tangible pe rsonal property or services to or
288		-	by organizations which are exempt from taxation
289		-	pursuant to the provisions o f Section 501(c)(3) of the
290	294		Internal Revenue Code, 26 U.S.C ., Section 501(c)(3),
291	295		and:
292	296		(1) are primarily involved in the collection and
293	297		distribution of food and other household products
294	298		to other organizations that facilitate the
295	299		distribution of such products to the needy and
296	300		such distributee organizations are exemp t from
297	301		taxation pursuant to the provisions of Section
298	302		501(c)(3) of the Internal Revenue Code, 26
299	303		U.S.C., Section 501(c)(3), or
300	304		(2) facilitate the distribution of such products to
301	305		the needy.
302	306		b. Sales made in the course of business for profit or
303	307		savings, competing with other persons engaged in the
304	308		same or similar business shall not be exempt under
305	309		this paragraph;
306	310		15. Sales of tangible personal property or services to
307	311		children’s homes which are located on church-owned property and are
308	312		operated by organization s exempt from taxation pursuant to the
309	313		provisions of the Internal Revenue Code, 26 U.S.C., Section
310	314		501(c)(3);
	315	+	16. Sales of computers, data processing equipment, related
	316	+	peripherals, and telephone, telegraph or telecommun ications service
	317	+	and equipment for use in a qualified aircraft maintenance or
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337		-	16. Sales of computers, data processing equipment, related
338		-	peripherals, and telephone, telegraph or telecommun ications service
339		-	and equipment for use in a qualified aircraft maintenance or
340	345		manufacturing facility. For purposes of this paragraph, “qualified
341	346		aircraft maintenance or manufacturing facility” means a new or
342	347		expanding facility primarily engaged in aircraf t repair, building or
343	348		rebuilding whether or not on a factory basis, whose total cost of
344	349		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
345	350		and which employs at least two hundred fifty (250) new full-time-
346	351		equivalent employees, as certified by the Oklahoma Employment
347	352		Security Commission, upon completion of the facility. In order to
348	353		qualify for the exemption provided for by this paragraph, the cost
349	354		of the items purchased by the qualified aircraft maintenance or
350	355		manufacturing facility shall e qual or exceed the sum of Two Millio n
351	356		Dollars ($2,000,000.00);
352	357		17. Sales of tangible personal property consumed or
353	358		incorporated in the construction or expansion of a qualified
354	359		aircraft maintenance or manufacturing facility as defined in
355	360		paragraph 16 of this section. For purposes of this pa ragraph, sales
356	361		made to a contractor or subcontractor that has previously entered
357	362		into a contractual relationship with a qualified aircraft
358	363		maintenance or manufacturing facility for construction or expansion
359	364		of such a facility shall be considered sales made to a qualified
360	365		aircraft maintenance or manufacturing facility;
	366	+	18. Sales of the following telecommunications services:
	367	+	a. Interstate and International “800 service”. “800
	368	+	service” means a “telecommunications service ” that
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387		-	18. Sales of the following telecommunications services:
388		-	a. Interstate and International “800 service”. “800
389		-	service” means a “telecommunications service ” that
390	396		allows a caller to dial a toll-free number without
391	397		incurring a charge for the call. The service is
392	398		typically marketed under the name “800”, “855”, “866”,
393	399		“877” and “888” toll-free calling, and any subsequent
394	400		numbers designated by the Federal Communic ations
395	401		Commission,
396	402		b. Interstate and International “900 service”. “900
397	403		service” means an inbound toll “telecommunications
398	404		service” purchased by a subscriber that allows the
399	405		subscriber’s customers to call in to the subscriber’s
400	406		prerecorded announcement or live service. “900
401	407		service” does not include the charge for: collection
402	408		services provided by the seller of the
403	409		“telecommunications services” to the subscriber, or
404	410		service or product sold by the subscriber to the
405	411		subscriber’s customer. The service is t ypically
406	412		marketed under the na me “900” service, and any
407	413		subsequent numbers designated by the Federal
408	414		Communications Commission,
409	415		c. Interstate and International “private communications
410	416		service”. “Private communications service” means a
	417	+	“telecommunications service” that entitles the
	418	+	customer to exclusive or priority use of a
	419	+	communications channel or group of channels between or
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437		-	“telecommunications service” that entitles the
438		-	customer to exclusive or priority use of a
439		-	communications channel or group of channels between or
440	447		among termination points, regardless of the manner in
441	448		which such channel or channels are connected, and
442	449		includes switching capacity , extension lines, stations
443	450		and any other associated services that are provided in
444	451		connection with the use of such channel or channels,
445	452		d. “Value-added nonvoice data service”. “Value-added
446	453		nonvoice data service” means a service that otherwise
447	454		meets the definition of “telecommunications services”
448	455		in which computer processing applications are used to
449	456		act on the form, content, code or protocol of the
450	457		information or data primarily for a purpose othe r than
451	458		transmission, conveyance, or routing,
452	459		e. Interstate and International telecommunications
453	460		service which is:
454	461		(1) rendered by a company for private use within its
455	462		organization, or
456	463		(2) used, allocated or distributed by a company to
457	464		its affiliated group,
458	465		f. Regulatory assessments and charges including charges
459	466		to fund the Oklahoma Universal Service Fund, the
	467	+	Oklahoma Lifeline Fund and the Oklahoma High Cost
	468	+	Fund, and
	469	+	g. Telecommunications nonre curring charges including but
	470	+	not limited to the installation, connection, change,
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486		-	Oklahoma Lifeline Fund and the Oklahoma High Cost
487		-	Fund, and
488		-	g. Telecommunications nonre curring charges including but
489		-	not limited to the installation, connection, change,
490	498		or initiation of telecommunications se rvices which are
491	499		not associated with a retail consumer sale;
492	500		19. Sales of railroad track spikes manufactured and sold for
493	501		use in this state in the construction or repair of railroad tracks,
494	502		switches, sidings, and turnouts;
495	503		20. Sales of aircraft and aircraft parts provided such sales
496	504		occur at a qualified aircraft ma intenance facility. As used in this
497	505		paragraph, “qualified aircraft maint enance facility” means a
498	506		facility operated by an air common car rier including one or more
499	507		component overhaul support buildings or structures in an area owned,
500	508		leased, or controlled by the air common carrier, at which there were
501	509		employed at least two thousa nd (2,000) full-time-equivalent
502	510		employees in the preceding year as certified by the Oklahoma
503	511		Employment Security Commission and which is primarily related to the
504	512		fabrication, repair, alteration, modification, refurbishing,
505	513		maintenance, building, or rebuilding of commercial aircraft or
506	514		aircraft parts used in air common carriage. For purposes of this
507	515		paragraph, “air common carrier” shall also include members of an
508	516		affiliated group as d efined by Section 1504 of the Internal Revenue
509	517		Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
	518	+	machinery, tools, supplie s, equipment, and related tangible personal
	519	+	property and services used or consumed in the repair, remodeling, or
	520	+	maintenance of aircraft, aircraft engines or aircraft component
	521	+	parts which occur at a qualified aircraft maintenance facility;
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536		-	machinery, tools, supplies, equipment, and related tangible personal
537		-	property and services used or consumed in the repair, remodeling, or
538		-	maintenance of aircraft, aircraft engines or aircraft component
539		-	parts which occur at a qualified aircraft maintenance facility;
540	549		21. Sales of machinery and equipment purchased and used by
541	550		persons and establishments primarily engaged in computer services
542	551		and data processing:
543	552		a. as defined under Industrial Group Numbers 7372 and
544	553		7373 of the Standard Industrial Classification (SIC)
545	554		Manual, latest version, which derive at least fifty
546	555		percent (50%) of their annual gross revenues from the
547	556		sale of a product or service t o an out-of-state buyer
548	557		or consumer, and
549	558		b. as defined under Industrial Gr oup Number 7374 of the
550	559		SIC Manual, latest version, which derive at least
551	560		eighty percent (80%) of their annual gross revenues
552	561		from the sale of a product or service to an out-of-
553	562		state buyer or consumer.
554	563		Eligibility for the exemption set out in this paragraph shall be
555	564		established, subject to review by the Tax Commission, by annually
556	565		filing an affidavit with the Tax Commission stating that the
557	566		facility so qualifies and such information as required by the Tax
558	567		Commission. For purposes of determining whether annu al gross
559	568		revenues are derived from sales to out-of-state buyers or consumers,
	569	+	all sales to the federal government shall be considered to be to an
	570	+	out-of-state buyer or consumer;
	571	+	22. Sales of prosthetic devices to an individual for use by
	572	+	such individual. For purposes of this paragraph, “prosthetic
560	573
561		-	ENGR. S. B. NO. 392 Page 12 1
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563	577		3
564	578		4
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566	580		6
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568	582		8
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575	589		15
576	590		16
577	591		17
578	592		18
579	593		19
580	594		20
581	595		21
582	596		22
583	597		23
584	598		24
585	599
586		-	all sales to the federal government shall be considered to be to an
587		-	out-of-state buyer or consumer;
588		-	22. Sales of prosthetic devices to an individual for use by
589		-	such individual. For purposes of this paragraph, “prosthetic
590	600		device” shall have the same meaning as provided in Section 1357.6 of
591	601		this title, but shall not include corrective eye glasses, contact
592	602		lenses, or hearing aids;
593	603		23. Sales of tangible personal property or service s to a motion
594	604		picture or television production company to be used or consumed in
595	605		connection with an eligible production. For purposes of this
596	606		paragraph, “eligible production” means a documentary, special, music
597	607		video or a television commercial or televisi on program that will
598	608		serve as a pilot for or be a segment of an ongoing dramatic or
599	609		situation comedy series filmed or taped for network or national or
600	610		regional syndication or a featu re-length motion picture intended for
601	611		theatrical release or for network or national or regional
602	612		syndication or broadcast. The provisions of this paragraph shall
603	613		apply to sales occurring on or after July 1, 1996. In order to
604	614		qualify for the exemption, the motion picture or television
605	615		production company shall file any documentat ion and information
606	616		required to be submitted pursuant to rules promulgated by the Tax
607	617		Commission;
608	618		24. Sales of diesel fuel sold for consumption by commercial
609	619		vessels, barges and oth er commercial watercraft;
	620	+	25. Sales of tangible personal property or serv ices to tax-
	621	+	exempt independent nonprofit biomedical research foundations that
	622	+	provide educational programs for Oklahoma science students and
610	623
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	625	+	(Bold face denotes Committee Amendments) 1
612	626		2
613	627		3
614	628		4
615	629		5
616	630		6
617	631		7
618	632		8
619	633		9
620	634		10
621	635		11
622	636		12
623	637		13
624	638		14
625	639		15
626	640		16
627	641		17
628	642		18
629	643		19
630	644		20
631	645		21
632	646		22
633	647		23
634	648		24
635	649
636		-	25. Sales of tangible personal property or serv ices to tax-
637		-	exempt independent nonprofit biomedical research foundations that
638		-	provide educational programs for Oklahoma science students and
639	650		teachers and to tax-exempt independent no nprofit community blood
640	651		banks headquartered in this state;
641	652		26. Effective May 6, 1992, sales of wireless telecommunications
642	653		equipment to a vendor who subsequently transfers the equipment at no
643	654		charge or for a discounted charge to a consumer as part of a
644	655		promotional package or as an inducement to commence or continue a
645	656		contract for wireless telecommunications services;
646	657		27. Effective January 1, 1991, leases of rail transportation
647	658		cars to haul coal to coal-fired plants located in this state which
648	659		generate electric power;
649	660		28. Beginning July 1, 2005, sales of aircraft engine repairs ,
650	661		modification, and replacement parts, sales of aircraft frame repairs
651	662		and modification, aircraft interior modification, and paint, and
652	663		sales of services employed in the repair, modi fication, and
653	664		replacement of parts of aircraft engines, aircraft frame and
654	665		interior repair and modification, and paint;
655	666		29. Sales of materials and supplies to the owner or operator of
656	667		a ship, motor vessel, or barge that is used in interstate or
657	668		international commerce if the materials and supplies:
	669	+	a. are loaded on the ship, mot or vessel, or barge and
	670	+	used in the maintenance and operation of the ship,
	671	+	motor vessel, or barge, or
	672	+	b. enter into and become component parts of the ship,
	673	+	motor vessel, or barge;
658	674
659		-	ENGR. S. B. NO. 392 Page 14 1
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	676	+	(Bold face denotes Committee Amendments) 1
660	677		2
661	678		3
662	679		4
663	680		5
664	681		6
665	682		7
666	683		8
667	684		9
668	685		10
669	686		11
670	687		12
671	688		13
672	689		14
673	690		15
674	691		16
675	692		17
676	693		18
677	694		19
678	695		20
679	696		21
680	697		22
681	698		23
682	699		24
683	700
684		-	a. are loaded on the ship, mot or vessel, or barge and
685		-	used in the maintenance and operation of the ship,
686		-	motor vessel, or barge, or
687		-	b. enter into and become component parts of the ship,
688		-	motor vessel, or barge;
689	701		30. Sales of tangible personal property made at estate sales at
690	702		which such property is offered for sale on the premises of the
691	703		former residence of the decedent by a person who is not required to
692	704		be licensed pursuant to the Transient Merchant Licensing Act, or who
693	705		is not otherwise required to obtain a sales tax permit for the sale
694	706		of such property pursuant to the provisions of Section 1364 of this
695	707		title; provided:
696	708		a. such sale or event may not be held for a period
697	709		exceeding three (3) consecutive days,
698	710		b. the sale must be conducted within six (6) months of
699	711		the date of death of the d ecedent, and
700	712		c. the exemption allowed by this paragraph shall not be
701	713		allowed for property that was not part of the
702	714		decedent’s estate;
703	715		31. Beginning January 1, 2004, sales of electri city and
704	716		associated delivery and transmission services, when sold exclusiv ely
705	717		for use by an oil and gas operator for reservoir dewatering projects
706	718		and associated operations commencing on or after July 1, 2003, in
707	719		which the initial water-to-oil ratio is greater than or equal to
	720	+	five-to-one water-to-oil, and such oil and gas devel opment projects
	721	+	have been classified by the Corporation Commission as a reservoir
	722	+	dewatering unit;
	723	+	32. Sales of prewritten computer software that is delivered
	724	+	electronically. For p urposes of this paragraph, “delivered
708	725
709		-	ENGR. S. B. NO. 392 Page 15 1
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	727	+	(Bold face denotes Committee Amendments) 1
710	728		2
711	729		3
712	730		4
713	731		5
714	732		6
715	733		7
716	734		8
717	735		9
718	736		10
719	737		11
720	738		12
721	739		13
722	740		14
723	741		15
724	742		16
725	743		17
726	744		18
727	745		19
728	746		20
729	747		21
730	748		22
731	749		23
732	750		24
733	751
734		-	five-to-one water-to-oil, and such oil and gas devel opment projects
735		-	have been classified by the Corporation Commission as a reservoir
736		-	dewatering unit;
737		-	32. Sales of prewritten computer software that is delivered
738		-	electronically. For p urposes of this paragraph, “delivered
739	752		electronically” means delivered to t he purchaser by means other than
740	753		tangible storage media;
741	754		33. Sales of modular dwelling units when built at a production
742	755		facility and moved in whole or in parts, to be assembled on -site,
743	756		and permanently affixed to the real property and used for
744	757		residential or commercial purposes. The exemption provided by this
745	758		paragraph shall equal forty-five percent (45%) of the total sales
746	759		price of the modular dwelling unit. For purposes of this p aragraph,
747	760		“modular dwelling unit” means a structure that is not subject to the
748	761		motor vehicle excise tax imposed pursuant to Section 2103 of this
749	762		title;
750	763		34. Sales of tangible personal property or services to:
751	764		a. persons who are residents of Oklahoma and ha ve been
752	765		honorably discharged from active service in any branch
753	766		of the Armed Forces of the United States or Oklahoma
754	767		National Guard and who have been certified by the
755	768		United States Department of Ve terans Affairs or its
756	769		successor to be in receipt of awarded disability
757	770		compensation at the one-hundred-percent rate and the
	771	+	disability shall be permanent and have been sustained
	772	+	through military action or accident or resulting from
	773	+	disease contracted while in such active service and
	774	+	registered with the veterans registry cr eated by the
	775	+	Oklahoma Department of Veterans Affairs; provided,
758	776
759		-	ENGR. S. B. NO. 392 Page 16 1
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	778	+	(Bold face denotes Committee Amendments) 1
760	779		2
761	780		3
762	781		4
763	782		5
764	783		6
765	784		7
766	785		8
767	786		9
768	787		10
769	788		11
770	789		12
771	790		13
772	791		14
773	792		15
774	793		16
775	794		17
776	795		18
777	796		19
778	797		20
779	798		21
780	799		22
781	800		23
782	801		24
783	802
784		-	disability shall be permanent and have been sustained
785		-	through military action or accident or resulting from
786		-	disease contracted while in such active service and
787		-	registered with the veterans registry cr eated by the
788		-	Oklahoma Department of Veterans Affairs; provided,
789	803		that if the veteran received the sales tax exemption
790	804		prior to November 1, 2020, he or she shall be required
791	805		to register with the vet erans registry prior to July
792	806		1, 2023, in order to remain qua lified, or
793	807		b. the surviving spouse of the person in subparagraph a
794	808		of this paragraph if the person is deceased and the
795	809		spouse has not remarried and the surviving spouse of a
796	810		person who is determined by the United States
797	811		Department of Defense or any branch of the United
798	812		States military to have died while in the line of duty
799	813		if the spouse has not remarried. Sales for the
800	814		benefit of an eligible person to a spouse of the
801	815		eligible person or to a member of the household in
802	816		which the eligible person resid es and who is
803	817		authorized to make purchases on the person’s behalf,
804	818		when such eligible person is not present at the sale,
805	819		shall also be exempt for purposes of this paragraph.
806	820		The Oklahoma Tax Commission s hall issue a separate
807	821		exemption card to a spouse of an eligible person or to
	822	+	a member up to two (2) members of the household in
	823	+	which the eligible person re sides who is are
	824	+	authorized to make purchases on the person’s behalf,
	825	+	if requested by the eligible person. Nothing herein
	826	+	shall preclude the s urviving spouse of a deceased
808	827
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810	830		2
811	831		3
812	832		4
813	833		5
814	834		6
815	835		7
816	836		8
817	837		9
818	838		10
819	839		11
820	840		12
821	841		13
822	842		14
823	843		15
824	844		16
825	845		17
826	846		18
827	847		19
828	848		20
829	849		21
830	850		22
831	851		23
832	852		24
833	853
834		-	a member up to two (2) members of the household in
835		-	which the eligible person re sides who is are
836		-	authorized to make purchases on the person’s behalf,
837		-	if requested by the eligible person. Nothing herein
838		-	shall preclude the s urviving spouse of a deceased
839	854		veteran from eligibility for the sales tax e xemption
840	855		on the basis that the disability rating was awarded on
841	856		or after the veteran’s date of death. Sales
842	857		qualifying for the exemption authorized by this
843	858		paragraph shall not exceed Twenty-five Thousand
844	859		Dollars ($25,000.00) per year per individual while the
845	860		disabled veteran is living. Sales qualifying for the
846	861		exemption authorized by this paragraph shall not
847	862		exceed One Thousand Dollars ($1,000.00) Ten Thousand
848	863		Dollars ($10,000.00) per year for an unremarried
849	864		surviving spouse. Upon request of the Tax Commission,
850	865		a person asserting or claiming the exemption
851	866		authorized by this paragraph shall provide a
852	867		statement, executed under oat h, that the total sales
853	868		amounts for which the exemption is app licable have not
854	869		exceeded Twenty-five Thousand Dollars ($25,000.00) per
855	870		year per living disabled veteran or One Thousand
856	871		Dollars ($1,000.00) Ten Thousand Dollars ($10,000.00)
857	872		per year for an unremarried su rviving spouse. If the
	873	+	amount of such exempt sales exceeds such amount, the
	874	+	sales tax in excess of the authorized amount shall be
	875	+	treated as a direct sales tax liability and may be
	876	+	recovered by the Tax Commission in the same manner
	877	+	provided by law for oth er taxes including penalty and
858	878
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860	881		2
861	882		3
862	883		4
863	884		5
864	885		6
865	886		7
866	887		8
867	888		9
868	889		10
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870	891		12
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872	893		14
873	894		15
874	895		16
875	896		17
876	897		18
877	898		19
878	899		20
879	900		21
880	901		22
881	902		23
882	903		24
883	904
884		-	amount of such exempt sales exceeds such amount, the
885		-	sales tax in excess of the authorized amount shall be
886		-	treated as a direct sales tax liability and may be
887		-	recovered by the Tax Commission in the same manner
888		-	provided by law for oth er taxes including penalty and
889	905		interest. The Tax Commission shall promulgate any
890	906		rules necessary to implement the provisions of this
891	907		paragraph, which shall include rules providing for the
892	908		disclosure of information about persons eligible for
893	909		the exemption authorized in this par agraph to the
894	910		Oklahoma Department of Veteran’s Veterans Affairs, as
895	911		authorized in Section 205 of this title;
896	912		35. Sales of electricity to the operator, specifically
897	913		designated by the Corporation Commission, of a spacing unit or lease
898	914		from which oil is produced or attempted to be produced using
899	915		enhanced recovery methods including, but not limited to, increased
900	916		pressure in a producing formation through the use of water or
901	917		saltwater if the electrical usage is associated with and necessary
902	918		for the operation of equipme nt required to inject or circulate
903	919		fluids in a producing formation for the purpose of forcing oil or
904	920		petroleum into a wellbore for eventual recovery and production from
905	921		the wellhead. In order to be eligible for the sales tax exempti on
906	922		authorized by this p aragraph, the total content of oil recovered
907	923		after the use of enha nced recovery methods shall not exceed one
	924	+	percent (1%) by volume. The exemption authorized by this paragraph
	925	+	shall be applicable only to the state sales tax rate and shall not
	926	+	be applicable to any county or municipal sales tax rate;
	927	+	36. Sales of intrast ate charter and tour bus transportation.
	928	+	As used in this paragraph, “intrastate charter and tour bus
908	929
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	931	+	(Bold face denotes Committee Amendments) 1
910	932		2
911	933		3
912	934		4
913	935		5
914	936		6
915	937		7
916	938		8
917	939		9
918	940		10
919	941		11
920	942		12
921	943		13
922	944		14
923	945		15
924	946		16
925	947		17
926	948		18
927	949		19
928	950		20
929	951		21
930	952		22
931	953		23
932	954		24
933	955
934		-	percent (1%) by volume. The exemption authorized by this paragraph
935		-	shall be applicable only to the state sales tax rate and shall not
936		-	be applicable to any county or municipal sales tax rate;
937		-	36. Sales of intrast ate charter and tour bus transportation.
938		-	As used in this paragraph, “intrastate charter and tour bus
939	956		transportation” means the transportation of persons from one
940	957		location in this state to another location in this state in a motor
941	958		vehicle which has been co nstructed in such a manner that it may
942	959		lawfully carry more than eighteen persons, and which is ordinarily
943	960		used or rented to carry persons for compensation. Provid ed, this
944	961		exemption shall not apply to regularly scheduled bus transportation
945	962		for the general public;
946	963		37. Sales of vitamins, minerals, and dietary supplements by a
947	964		licensed chiropractor to a person who is the patient of such
948	965		chiropractor at the physical loc ation where the chiropra ctor
949	966		provides chiropractic care or services to such patient. The
950	967		provisions of this paragraph shall not be applicable to any drug,
951	968		medicine, or substance for which a prescription by a licensed
952	969		physician is required;
953	970		38. Sales of goods, wares, merchandis e, tangible personal
954	971		property, machinery, and equipment to a web sear ch portal located in
955	972		this state which derives at least eighty percent (80%) of its annual
956	973		gross revenue from the sale of a product or service to an out-of-
957	974		state buyer or consumer. For pu rposes of this paragraph, “web
	975	+	search portal” means an establishment classified under NAICS code
	976	+	519130 which operates websites that use a search engine to generate
	977	+	and maintain extensive databases of Internet addresses and content
	978	+	in an easily searchable format;
958	979
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	981	+	(Bold face denotes Committee Amendments) 1
960	982		2
961	983		3
962	984		4
963	985		5
964	986		6
965	987		7
966	988		8
967	989		9
968	990		10
969	991		11
970	992		12
971	993		13
972	994		14
973	995		15
974	996		16
975	997		17
976	998		18
977	999		19
978	1000		20
979	1001		21
980	1002		22
981	1003		23
982	1004		24
983	1005
984		-	search portal” means an establishment classified under NAICS code
985		-	519130 which operates websites that use a search engine to generate
986		-	and maintain extensive databases of Interne t addresses and content
987		-	in an easily searchable format;
988	1006		39. Sales of tangible personal property consumed or
989	1007		incorporated in the construction or expansion of a facility for a
990	1008		corporation organized under Section 437 et seq. of Title 18 of the
991	1009		Oklahoma Statutes as a rural electric coo perative. For purpo ses of
992	1010		this paragraph, sales made to a contractor or subcontractor tha t has
993	1011		previously entered into a contractual relationship with a rural
994	1012		electric cooperative for construction or expansion of a facility
995	1013		shall be considered sales made to a rural electric cooperative;
996	1014		40. Sales of tangible personal property or services to a
997	1015		business primarily engaged in the repair of consumer electronic
998	1016		goods including, but not limited to, cell phones, compact disc
999	1017		players, personal computers, MP3 pla yers, digital devices for the
1000	1018		storage and retrieval of information through hard -wired or wireless
1001	1019		computer or Internet connections, if the devices are sold to the
1002	1020		business by the original manufacturer of such devices and the
1003	1021		devices are repaired, refitted or refurbished for sa le by the entity
1004	1022		qualifying for the exemption authorized by this paragr aph directly
1005	1023		to retail consumers or if the devices are sold to another business
1006	1024		entity for sale to retail consumers;
	1025	+	41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
	1026	+	or leases of rolling stock when sold or leased by the manufacturer,
	1027	+	regardless of whether the purchaser is a public services corporation
	1028	+	engaged in business as a common carrier of property or passengers by
	1029	+	railway, for use or consumption by a common carrier directly in the
1007	1030
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	1032	+	(Bold face denotes Committee Amendments) 1
1009	1033		2
1010	1034		3
1011	1035		4
1012	1036		5
1013	1037		6
1014	1038		7
1015	1039		8
1016	1040		9
1017	1041		10
1018	1042		11
1019	1043		12
1020	1044		13
1021	1045		14
1022	1046		15
1023	1047		16
1024	1048		17
1025	1049		18
1026	1050		19
1027	1051		20
1028	1052		21
1029	1053		22
1030	1054		23
1031	1055		24
1032	1056
1033		-	41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
1034		-	or leases of rolling stock when sold or leased by the manufacturer,
1035		-	regardless of whether the purchaser is a public services corporation
1036		-	engaged in business as a common carrier of property or passengers by
1037		-	railway, for use or consumption by a common carrier directly in the
1038	1057		rendition of public service. For purposes of this paragr aph,
1039	1058		“rolling stock” means locomotives, autocars, and railroad cars and
1040	1059		“sales or leases” includes railroad car maintenance and retrofitting
1041	1060		of railroad cars for th eir further use only on the railways; and
1042	1061		42. Sales of gold, silver, platinum, palladium or other bullion
1043	1062		items such as coins and bars and legal tender of any nation, which
1044	1063		legal tender is sold according to its value as precious metal or as
1045	1064		an investment. As used in the paragraph, “bullion” means any
1046	1065		precious metal including, but not limited to, gold, silver,
1047	1066		platinum, and palladium, that is in such a state or condition that
1048	1067		its value depends upon its precious metal content and not its form.
1049	1068		The exemption authorized by this paragraph shall not apply to
1050	1069		fabricated metals that have been processed or manufactured for
1051	1070		artistic use or as jewelry.
1052	1071		SECTION 2. This act shall be come effective November 1, 2023.
1053		-
1054		-	ENGR. S. B. NO. 392 Page 22 1
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1077		-	24
1078		-
1079		-	Passed the Senate the 7th day of March, 2023.
1080		-
1081		-
1082		-
1083		-	Presiding Officer of the Senate
1084		-
1085		-
1086		-	Passed the House of Representatives the ____ day of __________,
1087		-	2023.
1088		-
1089		-
1090		-
1091		-	Presiding Officer of the House
1092		-	of Representatives
1093		-
	1072	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	1073	+	February 27, 2023 - DO PASS AS AMENDED