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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 984 By: Jech
AS INTRODUCED
An Act relating to sales and use tax; amending 68
O.S. 2021, Sections 1355 and 1404, whi ch relate to
exemptions on the sale of a motor vehi cle; modifying
the basis upon which gross receipts are calculate d
for the purposes of sales tax and purchase price is
calculated for the purposes of use tax; updating
statutory references; updating statutory language;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
amended to read as follows:
Section 1355. There are hereby speci fically exempted from the
tax levied pursuant to th e provisions of Section 1350 et seq. of
this title:
1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
mixture of methanol an d gasoline containing at least eighty -five
percent (85%) methanol, co mpressed natural gas, liquefied natural
gas, or liquefied petroleum gas on which the Motor Fuel Tax,
Gasoline Excise Tax, Special Fuels Tax , or the fee in lieu of
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Special Fuels Tax levied in Section 500.1 et seq., Section 601 et
seq. or Section 701 et seq. of this title has bee n, or will be paid;
2. For the sale of motor vehicles or any optional equipment or
accessories attached to motor vehicles on which the Oklahoma Motor
Vehicle Excise Tax levied in Section 2101 et seq. of this title has
been, or will be paid, all but a port ion of the levy provided unde r
Section 1354 of this title, equal to one and twenty -five-hundredths
percent (1.25%) of the gross receipts of such sales. For the
purposes of this paragraph, if the sale of a motor vehicle includes
a trade-in, gross receipts shall be calculated based onl y on the
difference between the value of the trade -in vehicle and the actual
sales price of the vehicle being purchased. Provided, the sale of
motor vehicles shall not be subject to any sales and use taxe s
levied by cities, co unties, or other jurisdiction s of the state;
3. Sale of crude petroleum or natural or casinghead gas , and
other products subject to gross production tax pursuant to the
provisions of Section 1001 et seq. and Section 1101 et seq. of t his
title. This exemption shall not apply when suc h products are sold
to a consumer or user for consumption or use, except when used for
injection into the earth for the purpose of promot ing or
facilitating the production of oil or gas. This paragraph sh all not
operate to increase or repeal the gross pro duction tax levied by the
laws of this state;
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4. Sale of aircraft on which the tax levied pursuant to the
provisions of Sections 6001 th rough 6007 of this title has been, or
will be paid or which are spec ifically exempt from s uch tax pursuant
to the provisions of Section 6003 of this title;
5. Sales from coin-operated devices on which the fee imposed by
Sections 1501 through 1512 of this title has been paid;
6. Leases of twelve (12) months or more of mot or vehicles in
which the owners of the vehicles hav e paid the vehicle excise tax
levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is levied
pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
Title 3A of the Oklahoma Statut es, or which is sold to an
organization that is:
a. a veterans’ organization exempt from taxation pursuant
to the provisions of paragraph (4), (7), (8), (10) , or
(19) of subsection (c) of Section 501 of the United
States Internal Reve nue Code of 1986, as a mended, 26
U.S.C., Section 501(c) et seq.,
b. a group home for mentally disabled individuals exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 1986, as amended, 2 6
U.S.C., Section 501(c) et s eq., or
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c. a charitable health care organization which is exempt
from taxation pursuant to the provisions of paragraph
(3) of subsection (c) of Section 501 of the United
States Internal Revenue Code of 198 6, as amended, 26
U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
a. a federally recognized Indian tribe or nation which
has entered into a compact with the State of Oklahoma
pursuant to the provisions of subsection C of Sec tion
346 of this title or to a licensee of such a t ribe or
nation, upon which the payment in lieu of taxes
required by the compact has been paid, or
b. a federally recognized Indian tribe o r nation or to a
licensee of such a tribe or nation upon which the tax
levied pursuant to the provisions of Section 34 9.1 or
Section 426 of this title has been paid;
9. Leases of aircraft upon which the owners have paid the
aircraft excise tax levied by S ection 6001 et seq. of this title or
which are specifically exempt from such tax pursuant to the
provisions of Section 6003 of this title;
10. The sale of low -speed or medium-speed electrical vehicles
on which the Oklahoma Motor Vehicle Excise Tax levied in Section
2101 et seq. of this title has been or will be paid;
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11. Effective January 1, 2005, sales of cigarettes on which the
tax levied in Section 301 et seq. of this title or tobacco products
on which the tax levied in Section 401 et seq. of this tit le has
been paid; and
12. Sales of electricity at charging stations as defined by
Section 2 of this act Section 6502 of this title when the
electricity is sold by a charging station owner or operator for
purposes of charging an electric vehicle as defined by Section 2 of
this act Section 6502 of this t itle and the tax imposed pursuant to
Section 4 of this act Section 6504 of this title is collected and
remitted to the Oklahoma Tax Commission.
SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
amended to read as follows:
Section 1404. The provisions of Section 1401 et seq. of this
title shall not apply:
1. In respect to the use of any article of tangible personal
property brought into the State of Oklahoma by a nonresident
individual, visiting in this state, for his or her personal use or
enjoyment, while within the state;
2. In respect to the use of tangible personal property
purchased for resale before being used;
3. In respect to the use of any article of tangible personal
property on which a tax, equal to o r in excess of that levied by
Section 1401 et seq. of t his title, has been paid by th e person
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using such tangible personal property in this state, whether such
tax was levied under the laws of this state or some other state of
the United States. If any ar ticle of tangible personal propert y has
already been subjected to a tax, by this or a ny other state, in
respect to its sale or use, in an amount less than the tax imposed
by Section 1401 et seq. of this title, the provisions of Section
1401 et seq. of this title shall apply to it by a rate measured by
the difference only between the rate h erein provided and the rate by
which the previous tax upon the sale or use was computed. Provided,
that no credit shall be given for taxes paid in another state, if
that state does not grant like credit f or taxes paid in Oklahoma
this state;
4. In respect to the use of tangible personal property now
specifically exempted from taxation under Oklahoma Sales Tax Code.
Provided, for the sale of motor vehicles or any optional equipment
or accessories attached to motor vehicles on which the Oklahoma
Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
2108 of this title has been, or will be paid, the exceptions shall
apply to all but a portion of the levy provided under Secti on 1402
of this title, equal to one and twen ty-five-hundredths percent
(1.25%) of the purchase price. For the purposes of this paragraph,
if the sale of a motor vehicle includes a trade -in, the purchase
price shall be calculated based only on the difference between the
value of the trade-in vehicle and the actual purchase price of the
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vehicle being purchased. Provided further, the sale of motor
vehicles shall not be subject to any sales and use taxes levied by
cities, counties, or other jurisdictions of the sta te;
5. In respect to the use of any a rticle or tangible personal
property brought into the state by an individual with intent to
become a resident of this state where such personal property is for
such individual’s personal use or enjoyment;
6. In respect to the use of any article of tangibl e personal
property used or to be used by commercial airlines or railroads;
7. In respect to livestock purchased outside this state and
brought into this state for feeding or breeding purposes, and which
is later resold; and
8. Effective January 1, 1991, in respect to the use of rail
transportation cars to haul coal to coal -fired plants located in
this state which generate electric power.
SECTION 3. This act shall become effective November 1, 2023.
59-1-887 QD 1/19/2023 12:06:16 PM