OK
Oklahoma Senate Bill SB984

Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB984 Compare Versions

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28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 984 By: Jech of the Senate
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32+ and
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34+ Newton of the House
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4-An Act
5-ENROLLED SENATE
6-BILL NO. 984 By: Jech, Bergstrom, and Woods
7-of the Senate
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9- and
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11- Newton, Boles, Bashore, and
12-Wolfley of the House
38+[ sales and use tax - exemptions - gross receipts -
39+purchase price - effective date ]
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17-An Act relating to sales and use tax ; amending 68
18-O.S. 2021, Sections 1 355 and 1404, which relate to
19-exemptions on the sale of a motor vehicle; modifying
20-the basis upon which gross receipts are calculated
21-for the purposes of sales tax and purchase price is
22-calculated for the purposes of use tax ; updating
23-statutory references; updating statutory language;
24-and providing an effective date.
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46+AUTHORS: Add the following House Coauthor s: Boles and Bashore
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48+Add the following Senate Coauthors: Bergstrom and Woods
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52+AMENDMENT NO. 1. Page 1, Line 9, strike the enacting clause
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55+Passed the House of Representatives the 26th day of April, 2023.
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29-SUBJECT: Motor vehicle tax
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61+Presiding Officer of the House of
62+ Representatives
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65+Passed the Senate the ____ day of _______ ___, 2023.
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71+Presiding Officer of the Senate
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74+ENGR. S. B. NO. 984 Page 1 1
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99+ENGROSSED SENATE
100+BILL NO. 984 By: Jech of the Senate
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102+ and
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104+ Newton of the House
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109+[ sales and use tax - exemptions - gross receipts -
110+purchase price - effective date ]
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30114
31115 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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33116 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
34117 amended to read as follows:
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36118 Section 1355. There are hereby speci fically exempted from the
37119 tax levied pursuant to the provisions of Section 1350 et seq. of
38120 this title:
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40121 1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
41122 mixture of methanol an d gasoline containing at least eighty -five
42123 percent (85%) methanol, co mpressed natural gas, liquefied natural
43124 gas, or liquefied petroleum gas on which the Mo tor Fuel Tax,
44125 Gasoline Excise Tax, Special Fuels Tax, or the fee in lieu of
45126 Special Fuels Tax levied in Section 500.1 et seq., Section 601 et
46127 seq. or Section 701 et seq. of this title has bee n, or will be paid;
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48-ENR. S. B. NO. 984 Page 2
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50128 2. For the sale of motor vehicles or any opt ional equipment or
51129 accessories attached to motor vehicles on which the Oklahoma Motor
52130 Vehicle Excise Tax levied in Section 2101 et seq. of this title has
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53157 been, or will be paid, all but a port ion of the levy provided under
54158 Section 1354 of this title, equal to one and twenty-five-hundredths
55159 percent (1.25%) of the gross receipts of such sales. For the
56160 purposes of this paragraph, if the sale of a motor vehicle includes
57161 a trade-in, gross receipts shall be calculated based only on the
58162 difference between the valu e of the trade-in vehicle and the actual
59163 sales price of the vehicle being purchased. Provided, the sale of
60164 motor vehicles shall not be subject to any sales and use taxe s
61165 levied by cities, co unties, or other jurisdictions of the state;
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63166 3. Sale of crude pe troleum or natural or casinghead gas, and
64167 other products subject to gross production tax pursuant to the
65168 provisions of Section 1001 et seq. and Section 1101 et seq. of t his
66169 title. This exemption shall not apply when such products are sold
67170 to a consumer or user for consumption or use, ex cept when used for
68171 injection into the earth for the purpose of promot ing or
69172 facilitating the production of oil or gas. This paragraph sh all not
70173 operate to increase or repeal the gross production tax levied by the
71174 laws of this state;
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73175 4. Sale of aircraft o n which the tax levied pursuant to the
74176 provisions of Sections 6001 th rough 6007 of this title has been, or
75177 will be paid or which are spec ifically exempt from s uch tax pursuant
76178 to the provisions of Section 6003 of this title;
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78179 5. Sales from coin-operated devices on which the fee imposed by
79180 Sections 1501 through 1512 of this title has been paid;
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81207 6. Leases of twelve (12) months or more of mot or vehicles in
82208 which the owners of the vehicles have paid the vehicle excise tax
83209 levied by Section 2103 of this title;
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85210 7. Sales of charity game equipment on which a tax is levied
86211 pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
87212 Title 3A of the Oklahoma Statut es, or which is sold to an
88213 organization that is:
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91-ENR. S. B. NO. 984 Page 3
92214 a. a veterans’ organization exempt from taxation pursuant
93215 to the provisions of paragraph (4), (7), (8), (10) , or
94216 (19) of subsection (c) of Section 501 of the United
95217 States Internal Reve nue Code of 1986, as a mended, 26
96218 U.S.C., Section 501(c) et seq.,
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98219 b. a group home for mentally disabled individuals exem pt
99220 from taxation pursuant to the provisions of paragraph
100221 (3) of subsection (c) of Section 501 of the United
101222 States Internal Revenue Code of 1986, as amended, 2 6
102223 U.S.C., Section 501(c) et seq., or
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104224 c. a charitable health care organization which is exempt
105225 from taxation pursuant to the provisions of paragraph
106226 (3) of subsection (c) of Section 501 of the United
107227 States Internal Revenue Code of 198 6, as amended, 26
108228 U.S.C., Section 501(c) et seq.;
229+8. Sales of cigarettes or tobacco pr oducts to:
109230
110-8. Sales of cigarettes or tobacco pr oducts to:
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112256 a. a federally recognized Indian tribe or nation which
113257 has entered into a compact with the State of Oklahoma
114258 pursuant to the provisions of subsection C of Sec tion
115259 346 of this title or to a licensee of such a tribe or
116260 nation, upon which the payme nt in lieu of taxes
117261 required by the compact has been paid, or
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119262 b. a federally recognized Indian tribe o r nation or to a
120263 licensee of such a tribe or nation upon which the tax
121264 levied pursuant to the provisions of Section 349.1 or
122265 Section 426 of this title has been paid;
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124266 9. Leases of aircra ft upon which the owners have paid the
125267 aircraft excise tax levied by S ection 6001 et seq. of this title or
126268 which are specifically exempt from such tax pursuant to the
127269 provisions of Section 6003 of this title;
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129270 10. The sale of low-speed or medium-speed electrical vehicles
130271 on which the Oklahoma Motor Vehicle Excise Tax levied in Section
131272 2101 et seq. of this title has been or will be paid;
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134-ENR. S. B. NO. 984 Page 4
135273 11. Effective January 1, 2005, sales of cigarettes on which the
136274 tax levied in Section 301 et seq. of this title or tobacc o products
137275 on which the tax levied in Section 401 et seq. of this tit le has
138276 been paid; and
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140277 12. Sales of electricity at charging stations as defined by
141278 Section 2 of this act Section 6502 of this t itle when the
142279 electricity is sold by a charging station owne r or operator for
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143306 purposes of charging an electric vehicle as defined by Section 2 of
144307 this act Section 6502 of this t itle and the tax imposed pursuant to
145308 Section 4 of this act Section 6504 of this title is collected and
146309 remitted to the Oklahoma Tax Commiss ion.
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148310 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
149311 amended to read as follows:
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151312 Section 1404. The provisions of Section 1401 et seq. of this
152313 title shall not apply:
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154314 1. In respect to the use o f any article of tangible person al
155315 property brought into the State of Oklahoma by a nonresident
156316 individual, visiting in this state, for his or her personal use or
157317 enjoyment, while within the state;
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159318 2. In respect to the use of tangible personal property
160319 purchased for resale before being used;
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162320 3. In respect to the use of any article of tangible personal
163321 property on which a tax, equal to o r in excess of that levied by
164322 Section 1401 et seq. of t his title, has been paid by the person
165323 using such tangible persona l property in this state, whethe r such
166324 tax was levied under the laws of this state or some other state of
167325 the United States. If any ar ticle of tangible personal propert y has
168326 already been subjected to a tax, by this or any other state, in
169327 respect to its sale or use, in an amount less tha n the tax imposed
170328 by Section 1401 et seq. of this title, the provisions of Section
171329 1401 et seq. of this title shall apply to it by a rate measured by
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172356 the difference only between the rate herein provided and the rate by
173357 which the previous tax upon the sale or use was computed. Provided,
174358 that no credit shall be given for taxes paid in another state, if
175359 that state does not grant like credit f or taxes paid in Oklahoma
176360 this state;
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180361 4. In respect to the use of tangible personal pr operty now
181362 specifically exempted from taxation under Oklahoma Sales Tax Code.
182363 Provided, for the sale of motor vehicles or any optional equipment
183364 or accessories attached to motor vehicles on which the Oklahoma
184365 Motor Vehicle Excise Tax levied pursuant to Se ctions 2101 through
185366 2108 of this title has been, or will be paid, the exceptions shall
186367 apply to all but a portion of the levy provided under Secti on 1402
187368 of this title, equal to one and twen ty-five-hundredths percent
188369 (1.25%) of the purchase price. For the purposes of this paragraph,
189370 if the sale of a motor vehicle includes a trade -in, the purchase
190371 price shall be calculated based only on the difference between the
191372 value of the trade-in vehicle and the actual purchase price of the
192373 vehicle being purchased. Provided further, the sale of moto r
193374 vehicles shall not be subject to any sales and use taxes levied by
194375 cities, counties, or other jurisdictions of the sta te;
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196376 5. In respect to the use of any a rticle or tangible personal
197377 property brought into the state by an individual with intent to
198378 become a resident of this state where such personal property is for
199379 such individual’s personal use or enjoyment;
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201406 6. In respect to the use of any article of tangibl e personal
202407 property used or to be used by co mmercial airlines or r ailroads;
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204408 7. In respect to live stock purchased outside this state and
205409 brought into this state for feeding or breeding purposes, and which
206410 is later resold; and
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208411 8. Effective January 1, 1991, in respect to the use of rail
209412 transportation cars to haul coal to coal-fired plants located in
210413 this state which generate electric power.
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212414 SECTION 3. This act shall become effective November 1, 2023.
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215-ENR. S. B. NO. 984 Page 6
216-Passed the Senate the 25th day of May, 2023.
415+Passed the Senate the 23rd day of February, 2023.
217416
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220419 Presiding Officer of the Senate
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222421
223-Passed the House of Representatives the 26th day of May, 2023.
422+Passed the House of Representatives the ____ day of __________,
423+2023.
224424
225425
226426
227427 Presiding Officer of the House
228428 of Representatives
229429
230-OFFICE OF THE GOVERNOR
231-Received by the Office of the Governor this ____________________
232-day of _________________ __, 20_______, at _______ o'clock _______ M.
233-By: _______________________________ __
234-Approved by the Governor of the State of Oklahoma this _____ ____
235-day of _________________ __, 20_______, at _______ o'clock _______ M.
236430
237- _________________________________
238- Governor of the State of Oklahoma
239-
240-
241-OFFICE OF THE SECRETARY OF STATE
242-Received by the Office of the Secretary of State this _______ ___
243-day of __________________, 20 _______, at _______ o'clock ___ ____ M.
244-By: _______________________________ __