Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB393 Compare Versions

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3		-	ENGR. S. B. NO. 393 Page 1 1
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28		-	ENGROSSED SENATE
29		-	BILL NO. 393 By: Stanley of the Senate
	29	+	SENATE FLOOR VERSION
	30	+	February 27, 2023
	31	+	AS AMENDED
	32	+
	33	+	SENATE BILL NO. 393 By: Stanley of the Senate
30	34
31	35		and
32	36
33	37		West (Josh) and Talley of
34	38		the House
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38		-	An Act relating to sales tax; amending 68 O.S. 2021,
39		-	Section 1357, as amended by Sect ion 1, Chapter 206,
40		-	O.S.L. 2022 (68 O.S. Supp. 2022 , Section 1357), which
41		-	relates to exemptions; providing exception to limit
42		-	on sales to disabled veterans qualifying for
43		-	exemption; limiting exception ; and providing an
44		-	effective date.
	42	+
	43	+	[ sales tax - exemptions - disabled veterans -
	44	+	effective date ]
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48	49		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
49	50		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
50	51		amended by Section 1, Chapter 206, O.S.L. 2022 (68 O.S. Supp. 2022,
51	52		Section 1357), is amended to read as follows:
52	53		Section 1357. Exemptions – General.
53	54		There are hereby specifically exempted fr om the tax levied by
54	55		the Oklahoma Sales Tax Code:
55	56		1. Transportation of school pupi ls to and from elementary
56	57		schools or high schools in motor or other vehicles;
57	58		2. Transportation of persons where the fare of each person does
58	59		not exceed One Dollar ($1.00), or local transportatio n of persons
59	60		within the corporate limits of a municipality e xcept by taxicabs;
60	61		3. Sales for resale to persons engaged in the bu siness of
61	62		reselling the articles purchased, whether within or without the
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88	90		state, provided that such sales to residents of this s tate are made
89	91		to persons to whom sales tax permits have been issued as provided in
90	92		the Oklahoma Sales Tax Code. This exemption shall not apply to the
91	93		sales of articles made to persons holding permits when such persons
92	94		purchase items for their use and whic h they are not regularly
93	95		engaged in the business of resellin g; neither shall this exemption
94	96		apply to sales of tangible personal property to peddlers, solic itors
95	97		and other salespersons who do not have an established place of
96	98		business and a sales tax permit. The exemption provided by this
97	99		paragraph shall apply to sa les of motor fuel or diesel fuel to a
98	100		Group Five vendor, but the use of such motor fuel or dies el fuel by
99	101		the Group Five vendor shall not be exempt from the tax levied by th e
100	102		Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
101	103		is exempt from sales tax when the motor fuel is for shipment outside
102	104		this state and consumed by a common car rier by rail in the conduct
103	105		of its business. The sales tax shall apply to the purchase of motor
104	106		fuel or diesel fuel in Oklahoma by a common carrier by rail when
105	107		such motor fuel is purchased for fueling, within this state, of any
106	108		locomotive or other motori zed flanged wheel equipment;
107	109		4. Sales of advertising space in newspapers and periodicals;
108	110		5. Sales of programs relating to s porting and entertainment
109	111		events, and sales of advertising on billboards (including signage,
110	112		posters, panels, marquees or on other similar surfaces, whether
111	113		indoors or outdoors) or in programs relating to spo rting and
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138	141		entertainment events, and sales of any advertising, to be displayed
139	142		at or in connection with a sporting event, via the Internet,
140	143		electronic display devices or through public address or broadcast
141	144		systems. The exemption authorized by this paragrap h shall be
142	145		effective for all sales made on or af ter January 1, 2001;
143	146		6. Sales of any advertising, other than the advertising
144	147		described by paragraph 5 of this section, via the Internet,
145	148		electronic display devices or through the electronic media including
146	149		radio, public address o r broadcast systems, tel evision (whether
147	150		through closed circuit broadcasting systems or otherwise), and cable
148	151		and satellite television, and the servicing of any advertising
149	152		devices;
150	153		7. Eggs, feed, supplies, machinery, and equipment purchased by
151	154		persons regularly engaged in the business of raising worms, fish,
152	155		any insect, or any other form of terrestrial or aquatic animal life
153	156		and used for the purpose of raising same for marketing. This
154	157		exemption shall only be granted and extended to the purchaser when
155	158		the items are to be used a nd in fact are used in the raising of
156	159		animal life as set out above. Each purchaser shall certify, in
157	160		writing, on the invoice or sales ticket retained by the vendor that
158	161		the purchaser is regularly engaged in th e business of raising s uch
159	162		animal life and that the items purchased will be used on ly in such
160	163		business. The vendor shall certify to the Oklahoma Tax Co mmission
161	164		that the price of the items has been reduced to grant the full
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188	192		benefit of the exemption. Viola tion hereof by the purc haser or
189	193		vendor shall be a misdemeanor;
190	194		8. Sale of natural or artificial gas and electricity, and
191	195		associated delivery or transmi ssion services, when sold exclusively
192	196		for residential use. Provided, this exemption shall not apply to
193	197		any sales tax levied by a city or town, or a county or any other
194	198		jurisdiction in this state;
195	199		9. In addition to the exemptions authorized by Section 135 7.6
196	200		of this title, sales of drugs sold pursuant to a prescription
197	201		written for the treatment of human bei ngs by a person license d to
198	202		prescribe the drugs, and sales of insulin and medical oxygen.
199	203		Provided, this exemption shall not apply to over-the-counter drugs;
200	204		10. Transfers of title or possession of empty, partially
201	205		filled, or filled returnable oil and ch emical drums to any per son
202	206		who is not regularly engaged in the business of sellin g, reselling
203	207		or otherwise transferring empty, partially filled or filled
204	208		returnable oil drums;
205	209		11. Sales of one-way utensils, paper napkins, paper cups,
206	210		disposable hot contai ners, and other one-way carry out materials to
207	211		a vendor of meals or beverages;
208	212		12. Sales of food or food products for home consumption which
209	213		are purchased in whole or in part with coupons issued pursuant to
210	214		the federal food stamp program as authorized by Sections 2011
211	215		through 2029 of Title 7 of the United States Code, as to that
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238	243		portion purchased with such coupons. The exemption provided for
239	244		such sales shall be inapplicable to such sales upon the effective
240	245		date of any federal law that removes the requirem ent of the
241	246		exemption as a condition for participation by the state in the
242	247		federal food stamp program;
243	248		13. Sales of food or food products, or any equ ipment or
244	249		supplies used in the preparation of the food or food products to or
245	250		by an organization which:
246	251		a. is exempt from taxation pursuant to the provisions of
247	252		Section 501(c)(3) of the Internal Revenue Code, 26
248	253		U.S.C., Section 501(c)(3), and which provid es and
249	254		delivers prepared meals for home consumption to
250	255		elderly or homebound persons as part of a program
251	256		commonly known as “Meals on Wheels” or “Mobile Meals”,
252	257		or
253	258		b. is exempt from taxation pursuant to the provisions of
254	259		Section 501(c)(3) of the Internal R evenue Code, 26
255	260		U.S.C., Section 501(c)(3), and which receives federal
256	261		funding pursuant to the Older Americans Act of 1965,
257	262		as amended, for the purpose of providing nutrition
258	263		programs for the care and benefit of elderly persons;
259	264		14. a. Sales of tangible pe rsonal property or services to or
260	265		by organizations which are exempt from taxation
261	266		pursuant to the provisions o f Section 501(c)(3) of the
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288	294		Internal Revenue Code, 26 U.S.C ., Section 501(c)(3),
289	295		and:
290	296		(1) are primarily involved in the collection and
291	297		distribution of food and other household products
292	298		to other organizations that facilitate the
293	299		distribution of such products to the needy and
294	300		such distributee organizations are exemp t from
295	301		taxation pursuant to the provisions of Section
296	302		501(c)(3) of the Internal Revenue Code, 26
297	303		U.S.C., Section 501(c)(3), or
298	304		(2) facilitate the distribution of such products to
299	305		the needy.
300	306		b. Sales made in the course of business for profit or
301	307		savings, competing with other persons engaged in the
302	308		same or similar business shall not be exempt under
303	309		this paragraph;
304	310		15. Sales of tangible personal property or services to
305	311		children’s homes which are located on church-owned property and are
306	312		operated by organization s exempt from taxation pursuant to the
307	313		provisions of the Internal Revenue Code, 26 U.S.C., Section
308	314		501(c)(3);
309	315		16. Sales of computers, data processing equipment, related
310	316		peripherals, and telephone, telegraph or telecommun ications service
311	317		and equipment for use in a qualified aircraft maintenance or
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338	345		manufacturing facility. For purposes of this paragraph, “qualified
339	346		aircraft maintenance or manufacturing facility” means a new or
340	347		expanding facility prima rily engaged in aircraf t repair, building or
341	348		rebuilding whether or not on a factory basis, whose total cost of
342	349		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
343	350		and which employs at least two hundred fifty (250) new full-time-
344	351		equivalent employees, as certified by the Oklahoma Employment
345	352		Security Commission, upon completion of the facility. In order to
346	353		qualify for the exemption provided for by this paragraph, the cost
347	354		of the items purchased by the qualified aircraft maintenance or
348	355		manufacturing facility shall e qual or exceed the sum of Two Millio n
349	356		Dollars ($2,000,000.00);
350	357		17. Sales of tangible personal property consumed or
351	358		incorporated in the construction or expansion of a qualified
352	359		aircraft maintenance or manufacturing facility as define d in
353	360		paragraph 16 of this section. For purposes of this pa ragraph, sales
354	361		made to a contractor or subcontractor that has previously entered
355	362		into a contractual relationship with a qualified aircraft
356	363		maintenance or manufacturing facility for construction or expansion
357	364		of such a facility shall be considered sales made to a qualified
358	365		aircraft maintenance or manufacturing facility;
359	366		18. Sales of the following telecommunications services:
360	367		a. Interstate and International “800 service”. “800
361	368		service” means a “telecommunications service ” that
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388	396		allows a caller to dial a toll-free number without
389	397		incurring a charge for the call. The service is
390	398		typically marketed under the name “800”, “855”, “866”,
391	399		“877” and “888” toll-free calling, and any subsequent
392	400		numbers designated by the Federal Communic ations
393	401		Commission,
394	402		b. Interstate and International “900 service”. “900
395	403		service” means an inbound toll “telecommunications
396	404		service” purchased by a subscriber that allows the
397	405		subscriber’s customers to call in to the subscriber ’s
398	406		prerecorded announcement or live service. “900
399	407		service” does not include the charge for: collection
400	408		services provided by the seller of the
401	409		“telecommunications services” to the subscriber, or
402	410		service or product sold by the subscriber to the
403	411		subscriber’s customer. The service is t ypically
404	412		marketed under the na me “900” service, and any
405	413		subsequent numbers designated by the Federal
406	414		Communications Commission,
407	415		c. Interstate and International “private communications
408	416		service”. “Private communications service” means a
409	417		“telecommunications service” that entitles the
410	418		customer to exclusive or priority use of a
411	419		communications channel or group of channels between or
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438	447		among termination points, regardless of the manner in
439	448		which such channel or channels are connected, and
440	449		includes switching capacity , extension lines, stations
441	450		and any other associated services that are provided in
442	451		connection with the use of such channel or channels,
443	452		d. “Value-added nonvoice data service”. “Value-added
444	453		nonvoice data service” means a service that otherwise
445	454		meets the definition of “telecommunications services”
446	455		in which computer processing applications are used to
447	456		act on the form, content, code or protocol of the
448	457		information or data primarily for a purpose other than
449	458		transmission, conveyance, or routing,
450	459		e. Interstate and International telecommunications
451	460		service which is:
452	461		(1) rendered by a company for private use within its
453	462		organization, or
454	463		(2) used, allocated or distributed by a company to
455	464		its affiliated group,
456	465		f. Regulatory assessments and charges including charges
457	466		to fund the Oklahoma Universal Service Fund, the
458	467		Oklahoma Lifeline Fund and the Oklahoma High Cost
459	468		Fund, and
460	469		g. Telecommunications nonre curring charges including but
461	470		not limited to the installation, connection, change,
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488	498		or initiation of telecommunications se rvices which are
489	499		not associated with a retail consumer sale;
490	500		19. Sales of railroad track spikes manufactured and sold for
491	501		use in this state in the construction or repair of railroad tracks,
492	502		switches, sidings, and turnouts;
493	503		20. Sales of aircraft and aircraft parts provided such sales
494	504		occur at a qualified aircraft ma intenance facility. As used in this
495	505		paragraph, “qualified aircraft maint enance facility” means a
496	506		facility operated by an air common carrier including one or more
497	507		component overhaul support buildings or structures in an area owned,
498	508		leased, or controlled by the air common carrier, at which there were
499	509		employed at least two thousa nd (2,000) full-time-equivalent
500	510		employees in the preceding year as certified by the Oklahoma
501	511		Employment Security Commission and which is primarily related to the
502	512		fabrication, repair, alteration, modification, refurbishing,
503	513		maintenance, building, or rebuilding of commercial aircraft or
504	514		aircraft parts used in air common carriage. For purposes of this
505	515		paragraph, “air common carrier” shall also include members of an
506	516		affiliated group as d efined by Section 1504 of the Internal Revenue
507	517		Code, 26 U.S.C., Section 15 04. Beginning July 1, 2012, sales of
508	518		machinery, tools, supplies, equipment, and related tangible p ersonal
509	519		property and services used or consumed in the repair, remodeling, or
510	520		maintenance of aircraft, aircraft engines or aircraft component
511	521		parts which occur at a qualified aircraft maintenance facility;
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538	549		21. Sales of machinery and equipment purchased and used by
539	550		persons and establishments primarily engaged in computer services
540	551		and data processing:
541	552		a. as defined under Industrial Group Numbers 7372 and
542	553		7373 of the Standard Industrial Classification (SIC)
543	554		Manual, latest version, which derive at least fifty
544	555		percent (50%) of their annual gross revenues from the
545	556		sale of a product or service t o an out-of-state buyer
546	557		or consumer, and
547	558		b. as defined under Industrial Gr oup Number 7374 of the
548	559		SIC Manual, latest version, which derive at least
549	560		eighty percent (80%) of th eir annual gross revenues
550	561		from the sale of a product or service to an out-of-
551	562		state buyer or consumer.
552	563		Eligibility for the exemption set out in this paragraph shall be
553	564		established, subject to review by the Tax Commission, by annually
554	565		filing an affidavit wit h the Tax Commission stating that the
555	566		facility so qualifies and such information as required by the Tax
556	567		Commission. For purposes of determining whether annu al gross
557	568		revenues are derived from sales to out-of-state buyers or consumers,
558	569		all sales to the fede ral government shall be considered to be to an
559	570		out-of-state buyer or consumer;
560	571		22. Sales of prosthetic devices to an individual for use by
561	572		such individual. For purposes of this paragraph, “prosthetic
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588	600		device” shall have the same meaning as provided in Sec tion 1357.6 of
589	601		this title, but shall not include corrective eye glasses, contact
590	602		lenses, or hearing aids;
591	603		23. Sales of tangible personal property or service s to a motion
592	604		picture or television production company to be used or consumed in
593	605		connection with an eligible production. For purposes of this
594	606		paragraph, “eligible production” means a documentary, special, music
595	607		video or a television commercial or televisi on program that will
596	608		serve as a pilot for or be a segment of an ongoing dramatic or
597	609		situation comedy series filmed or taped for network or national or
598	610		regional syndication or a featu re-length motion picture intended for
599	611		theatrical release or for network or national or regional
600	612		syndication or broadcast. The provisions of this paragraph shall
601	613		apply to sales occurring on or after July 1, 1996. In order to
602	614		qualify for the exemption, the motion picture or television
603	615		production company shall file any documentat ion and information
604	616		required to be submitted pursuant to rules promulgated by the Tax
605	617		Commission;
606	618		24. Sales of diesel fuel sold for consumption by commercial
607	619		vessels, barges and oth er commercial watercraft;
608	620		25. Sales of tangible personal property or serv ices to tax-
609	621		exempt independent nonprofit biomedical research foundations that
610	622		provide educational p rograms for Oklahoma science students and
611	623
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613	626		2
614	627		3
615	628		4
616	629		5
617	630		6
618	631		7
619	632		8
620	633		9
621	634		10
622	635		11
623	636		12
624	637		13
625	638		14
626	639		15
627	640		16
628	641		17
629	642		18
630	643		19
631	644		20
632	645		21
633	646		22
634	647		23
635	648		24
636	649
637	650		teachers and to tax-exempt independent no nprofit community blood
638	651		banks headquartered in this state;
639	652		26. Effective May 6, 1992, sales of wireless telecommunications
640	653		equipment to a vendor who subsequently transfers the equipment at no
641	654		charge or for a discounted charge to a consumer as part of a
642	655		promotional package or as an inducement to commence or continue a
643	656		contract for wireless telecommunications services;
644	657		27. Effective January 1, 1991, leases of rail transportat ion
645	658		cars to haul coal to coal-fired plants located in this state which
646	659		generate electric power;
647	660		28. Beginning July 1, 2005, sales of aircraft engine repairs ,
648	661		modification, and replacement parts, sales of aircraft frame repairs
649	662		and modification, aircraft i nterior modification, and paint, and
650	663		sales of services employed in the repair, modi fication, and
651	664		replacement of parts of aircraft engines, aircraft frame and
652	665		interior repair and modification, and paint;
653	666		29. Sales of materials and supplies to the owner or operator of
654	667		a ship, motor vessel, or barge that is used in interstate or
655	668		international commerce if the materials and supplies:
656	669		a. are loaded on the ship, mot or vessel, or barge and
657	670		used in the maintenance and operation of the ship,
658	671		motor vessel, or barge, or
659	672		b. enter into and become component parts of the ship,
660	673		motor vessel, or barge;
661	674
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663	677		2
664	678		3
665	679		4
666	680		5
667	681		6
668	682		7
669	683		8
670	684		9
671	685		10
672	686		11
673	687		12
674	688		13
675	689		14
676	690		15
677	691		16
678	692		17
679	693		18
680	694		19
681	695		20
682	696		21
683	697		22
684	698		23
685	699		24
686	700
687	701		30. Sales of tangible personal property made at estate sales at
688	702		which such property is offered for sale on the premises of the
689	703		former residence of the decedent by a person wh o is not required to
690	704		be licensed pursuant to the Transient Merchant Licensing Act, or who
691	705		is not otherwise required to obtain a sales tax permit for the sale
692	706		of such property pursuant to the provisions of Section 1364 of this
693	707		title; provided:
694	708		a. such sale or event may not be held for a period
695	709		exceeding three (3) consecutive days,
696	710		b. the sale must be conducted within six (6) months of
697	711		the date of death of the d ecedent, and
698	712		c. the exemption allowed by this paragraph shall not be
699	713		allowed for property that was not part of the
700	714		decedent’s estate;
701	715		31. Beginning January 1, 2004, sales of electri city and
702	716		associated delivery and transmission services, when sold exclusiv ely
703	717		for use by an oil and gas operator for reservoir dewatering projects
704	718		and associated operations commencing on or after July 1, 2003, in
705	719		which the initial water-to-oil ratio is greater than or equal to
706	720		five-to-one water-to-oil, and such oil and gas devel opment projects
707	721		have been classified by the Corporation Commission as a reservoir
708	722		dewatering unit;
709	723		32. Sales of prewritten computer software that is delivered
710	724		electronically. For p urposes of this paragraph, “delivered
711	725
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713	728		2
714	729		3
715	730		4
716	731		5
717	732		6
718	733		7
719	734		8
720	735		9
721	736		10
722	737		11
723	738		12
724	739		13
725	740		14
726	741		15
727	742		16
728	743		17
729	744		18
730	745		19
731	746		20
732	747		21
733	748		22
734	749		23
735	750		24
736	751
737	752		electronically” means delivered to t he purchaser by means other than
738	753		tangible storage media;
739	754		33. Sales of modular dwelling units whe n built at a production
740	755		facility and moved in whole or in parts, to be assembled on -site,
741	756		and permanently affixed to the real property and used for
742	757		residential or commercial purposes. The exemption provided by this
743	758		paragraph shall equal forty-five percent (45%) of the total sales
744	759		price of the modular dwelling unit. For purposes of this p aragraph,
745	760		“modular dwelling unit” means a structure that is not subject to the
746	761		motor vehicle excise tax imposed pursuant to Section 2103 of this
747	762		title;
748	763		34. Sales of tangible personal property or services to:
749	764		a. persons who are residents of Oklahoma and ha ve been
750	765		honorably discharged from active service in any branch
751	766		of the Armed Forces of the United States or Oklahoma
752	767		National Guard and who have been certified by the
753	768		United States Department of Ve terans Affairs or its
754	769		successor to be in receipt of disabili ty compensation
755	770		at the one-hundred-percent rate and the disability
756	771		shall be permanent and have been sustained through
757	772		military action or accident or resulting from disease
758	773		contracted while in such active service and registered
759	774		with the veterans registry cr eated by the Oklahoma
760	775		Department of Veterans Affairs; provided, that if th e
761	776
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763	779		2
764	780		3
765	781		4
766	782		5
767	783		6
768	784		7
769	785		8
770	786		9
771	787		10
772	788		11
773	789		12
774	790		13
775	791		14
776	792		15
777	793		16
778	794		17
779	795		18
780	796		19
781	797		20
782	798		21
783	799		22
784	800		23
785	801		24
786	802
787	803		veteran received the sales tax exemption prior to
788	804		November 1, 2020, he or she shall be required to
789	805		register with the vet erans registry prior to July 1,
790	806		2023, in order to remain qua lified, or
791	807		b. the surviving spouse of the person in subparagraph a
792	808		of this paragraph if the person is deceased and the
793	809		spouse has not remarried and the surviving spouse of a
794	810		person who is determined by the United States
795	811		Department of Defense or any branch of the United
796	812		States military to have died while in the line of duty
797	813		if the spouse has not remarried. Sales for the
798	814		benefit of an eligible person to a spouse of the
799	815		eligible person or to a member of the household in
800	816		which the eligible person resid es and who is
801	817		authorized to make purchases on the person’s behalf,
802	818		when such eligible person is not present at the sale,
803	819		shall also be exempt for purposes of this paragraph.
804	820		The Oklahoma Tax Commission s hall issue a separate
805	821		exemption card to a spouse of an eligible person or to
806	822		a member of the household in which the eligible person
807	823		resides who is authorized to make purchase s on the
808	824		person’s behalf, if requested by the eligible person.
809	825		Sales qualifying for the exemption authorized by this
810	826		paragraph shall not exceed Twenty-five Thousand
811	827
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813	830		2
814	831		3
815	832		4
816	833		5
817	834		6
818	835		7
819	836		8
820	837		9
821	838		10
822	839		11
823	840		12
824	841		13
825	842		14
826	843		15
827	844		16
828	845		17
829	846		18
830	847		19
831	848		20
832	849		21
833	850		22
834	851		23
835	852		24
836	853
837	854		Dollars ($25,000.00) per year per individual while the
838	855		disabled veteran is living. Sales of motor vehicles
839	856		to the disabled veteran qualifying for the exemption
840	857		authorized by this paragraph shall not apply toward
841	858		the limitation on sales qualifying for the exemption
842	859		provided for in this subparagraph; however, this
843	860		exception may not be claimed by the qualifying
844	861		disabled veteran for more than one vehicl e in a
845	862		consecutive three-year period, unless the vehicle is a
846	863		replacement for a vehicle which was destroyed and
847	864		declared by the insurer to be a total loss claim .
848	865		Sales qualifying for the exemption au thorized by this
849	866		paragraph shall not exceed One Thousand Dollars
850	867		($1,000.00) per year for an unremarrie d surviving
851	868		spouse. Upon request of the Tax Commission, a person
852	869		asserting or claiming the exemption authorized by thi s
853	870		paragraph shall provide a statem ent, executed under
854	871		oath, that the total sales amounts for which the
855	872		exemption is applicable have not e xceeded Twenty-five
856	873		Thousand Dollars ($25,000.00) per year per living
857	874		disabled veteran or One Thousand Dollars ($1,000. 00)
858	875		per year for an unremarried su rviving spouse. If the
859	876		amount of such exempt sales exceeds such amount, the
860	877		sales tax in excess of the authorized amount shall be
861	878
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863	881		2
864	882		3
865	883		4
866	884		5
867	885		6
868	886		7
869	887		8
870	888		9
871	889		10
872	890		11
873	891		12
874	892		13
875	893		14
876	894		15
877	895		16
878	896		17
879	897		18
880	898		19
881	899		20
882	900		21
883	901		22
884	902		23
885	903		24
886	904
887	905		treated as a direct sales tax liability and may be
888	906		recovered by the Tax Commission in the s ame manner
889	907		provided by law for oth er taxes including penalty and
890	908		interest. The Tax Commission shall promulgate any
891	909		rules necessary to i mplement the provisions of this
892	910		paragraph, which shall include rules providing for the
893	911		disclosure of information about p ersons eligible for
894	912		the exemption authorized in this paragraph to the
895	913		Oklahoma Department of Veteran’s Veterans Affairs, as
896	914		authorized in Section 205 of this title;
897	915		35. Sales of electricity to the operator, specifically
898	916		designated by the Corporation Commission, of a spacing unit or lease
899	917		from which oil is produced or attempted to be produced usin g
900	918		enhanced recovery methods including, but not lim ited to, increased
901	919		pressure in a producing formation through the use of water or
902	920		saltwater if the electrical usage is asso ciated with and necessary
903	921		for the operation of equipment required to inject or circ ulate
904	922		fluids in a producing formation for the purpo se of forcing oil or
905	923		petroleum into a wellbore for eventual recovery and production f rom
906	924		the wellhead. In order to be eli gible for the sales tax exemp tion
907	925		authorized by this paragraph, the total content o f oil recovered
908	926		after the use of enhanced recovery methods shall not exceed one
909	927		percent (1%) by volume. The exemption authorized by thi s paragraph
910	928
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912	931		2
913	932		3
914	933		4
915	934		5
916	935		6
917	936		7
918	937		8
919	938		9
920	939		10
921	940		11
922	941		12
923	942		13
924	943		14
925	944		15
926	945		16
927	946		17
928	947		18
929	948		19
930	949		20
931	950		21
932	951		22
933	952		23
934	953		24
935	954
936	955		shall be applicable only to the state sales tax rate a nd shall not
937	956		be applicable to any county or municipal sales tax rate;
938	957		36. Sales of intrastate charter a nd tour bus transportation.
939	958		As used in this paragraph, “intrastate charter and tour b us
940	959		transportation” means the transportation of persons from one
941	960		location in this state to another location in this state in a motor
942	961		vehicle which has been constructed in such a manner that it may
943	962		lawfully carry more than eighteen persons, and which is ordi narily
944	963		used or rented to carry person s for compensation. Provid ed, this
945	964		exemption shall not apply to regularly schedule d bus transportation
946	965		for the general public;
947	966		37. Sales of vitamins, minerals, and dietary supplements by a
948	967		licensed chiropractor to a p erson who is the patient of such
949	968		chiropractor at the physical loc ation where the chiropractor
950	969		provides chiropractic care or services to such patient. The
951	970		provisions of this paragraph shall not be applicable to any drug,
952	971		medicine, or substance for which a prescription by a licensed
953	972		physician is required;
954	973		38. Sales of goods, wares, merchandise, tangible personal
955	974		property, machinery, and equipment to a web search portal loca ted in
956	975		this state which derives at least eighty percent (80%) of its annual
957	976		gross revenue from the sale of a product or se rvice to an out-of-
958	977		state buyer or consumer. For purposes of this paragraph, “web
959	978		search portal” means an establishment classified und er NAICS code
960	979
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962	982		2
963	983		3
964	984		4
965	985		5
966	986		6
967	987		7
968	988		8
969	989		9
970	990		10
971	991		11
972	992		12
973	993		13
974	994		14
975	995		15
976	996		16
977	997		17
978	998		18
979	999		19
980	1000		20
981	1001		21
982	1002		22
983	1003		23
984	1004		24
985	1005
986	1006		519130 which operates websites that use a search engine to generate
987	1007		and maintain extensive databases of Inte rnet addresses and content
988	1008		in an easily searchable format;
989	1009		39. Sales of tangible p ersonal property consumed or
990	1010		incorporated in the c onstruction or expansion of a facility for a
991	1011		corporation organized under Section 437 et seq. of Title 18 of the
992	1012		Oklahoma Statutes as a rural electric co operative. For purposes of
993	1013		this paragraph, sales made to a contractor or subcontractor that has
994	1014		previously entered into a contractual relationship with a rural
995	1015		electric cooperative for cons truction or expansion of a facility
996	1016		shall be considered sales made to a rural electric cooperative;
997	1017		40. Sales of tangib le personal property or services to a
998	1018		business primarily engaged in the repair of consumer electronic
999	1019		goods including, but not limited t o, cell phones, compact disc
1000	1020		players, personal computers, MP3 pla yers, digital devices for the
1001	1021		storage and retrieval of information through hard -wired or wireless
1002	1022		computer or Internet connections, if the devices are sold to the
1003	1023		business by the original man ufacturer of such devices and the
1004	1024		devices are repaired, refitted or refurbished for sale by the entity
1005	1025		qualifying for the exemption authorized by this paragraph directly
1006	1026		to retail consumers or if the devices are sold to another business
1007	1027		entity for sale to retail consumers;
1008	1028		41. On or after July 1, 2019, and prior to Ju ly 1, 2024, sales
1009	1029		or leases of rolling stock when sold o r leased by the manufacturer,
1010	1030
1011		-	ENGR. S. B. NO. 393 Page 21 1
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1012	1033		2
1013	1034		3
1014	1035		4
1015	1036		5
1016	1037		6
1017	1038		7
1018	1039		8
1019	1040		9
1020	1041		10
1021	1042		11
1022	1043		12
1023	1044		13
1024	1045		14
1025	1046		15
1026	1047		16
1027	1048		17
1028	1049		18
1029	1050		19
1030	1051		20
1031	1052		21
1032	1053		22
1033	1054		23
1034	1055		24
1035	1056
1036	1057		regardless of whether the purchaser is a public services corporation
1037	1058		engaged in business as a common carri er of property or passengers by
1038	1059		railway, for use or consumption by a common carrier directly in the
1039	1060		rendition of public service. For purposes of this paragraph,
1040	1061		“rolling stock” means locomotives, autocars, and railroad cars and
1041	1062		“sales or leases” includes railroad car maintenance and retrofit ting
1042	1063		of railroad cars for th eir further use only on the railways; and
1043	1064		42. Sales of gold, silver, platinum, palladium , or other
1044	1065		bullion items such as coins and bars and legal tender of any nation,
1045	1066		which legal tender is s old according to its value as precio us metal
1046	1067		or as an investment. As used in the paragraph, “bullion” means any
1047	1068		precious metal including, but not limited to, gold, sil ver,
1048	1069		platinum, and palladium, that is in such a state or condition that
1049	1070		its value depends upon its precious metal content an d not its form.
1050	1071		The exemption authorized by this paragraph shall not apply to
1051	1072		fabricated metals that have been processed or manufact ured for
1052	1073		artistic use or as jewelry.
1053	1074		SECTION 2. This act shall become effective November 1, 2023.
1054		-
1055		-	ENGR. S. B. NO. 393 Page 22 1
1056		-	2
1057		-	3
1058		-	4
1059		-	5
1060		-	6
1061		-	7
1062		-	8
1063		-	9
1064		-	10
1065		-	11
1066		-	12
1067		-	13
1068		-	14
1069		-	15
1070		-	16
1071		-	17
1072		-	18
1073		-	19
1074		-	20
1075		-	21
1076		-	22
1077		-	23
1078		-	24
1079		-
1080		-	Passed the Senate the 7th day of March, 2023.
1081		-
1082		-
1083		-
1084		-	Presiding Officer of the Senate
1085		-
1086		-
1087		-	Passed the House of Representatives the ____ day of __________,
1088		-	2023.
1089		-
1090		-
1091		-
1092		-	Presiding Officer of the House
1093		-	of Representatives
1094		-
	1075	+	COMMITTEE REPORT BY: COMMITTEE ON FINANCE
	1076	+	February 27, 2023 - DO PASS AS AMENDED