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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1336 By: Humphrey
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 1358.1, which relates to proof of
eligibility for agricultural sales tax exemptions;
modifying list of eligible form of proof of
eligibility; providing certain form shall not be
required for proof of eligibility; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1358.1, is
amended to read as follows:
Section 1358.1. Exemptions - Agriculture - Proof of
eligibility.
A. In order to qualify for any exemption authorized by Section
1358 of this title, at t he time of sale, the person to whom the sale
is made shall be required to furnish the vendor proof of eligibility
for the exemption as required by this section.
B. All vendors shall honor the proof of eligibility for sales
tax exemption as authorized by t his section and sales to a person
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providing such proof shall be exempt from th e tax levied by this
article, Section 1350 et seq. of this title.
C. The agricultural exemption permit, the size and design of
which shall be prescribed by the Oklahoma Tax Comm ission, shall
constitute proof of eligibility for sales tax exemptions authorized
by Section 1358 of this title. The permit shall be obtained by
listing personal property used in farming or ranching by the person
with the county assessor each year as prov ided by law. If the
assessor determines that the personal property is correct ly listed
and assessed for ad valorem taxation and the county treasurer
certifies whether the person has delinquent accounts appearing on
the personal property tax lien docket in the county treasurer 's
office, the assessor shall certify the assessment upon a form
prescribed by the Oklahoma Tax Commission. One copy shall be
retained by the assessor, one copy shall be forwarded to the
Oklahoma Tax Commission and one copy shall be g iven to the person
listing the personal property. Upon verification that the applicant
qualifies for the exemptions authorized by Section 1358 of this
title and that the applicant has no delinquent accounts appearing on
the personal property tax lien dock et in the office of the county
treasurer, a permit shall be issued as prescribed by this section.
The permit shall be renewable every three (3) years in the manner
provided by this section.
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D. A person who does not otherwise qualify for a permit
pursuant to subsection C of this section, except as provided in
subsection E of this s ection, shall file with the Oklahoma Tax
Commission an application for an agricultural exemption permit
constituting proof of eligibility for the sales tax exemptions
authorized by Section 1358 of this title, setting forth such
information as the Tax Commission may require. The application
shall be certified by the applicant that the applicant is engaged in
custom farming operations or in the business of farming or ranching.
If the applicant is a corporation, the application shall be
certified by a legall y constituted officer thereof.
The Oklahoma Tax Commission shall accept any of the following as
proof of eligibility for the exemptions authorized by this section
or pursuant to Section 1358 of this title.
1. A copy of IRS Schedule F, a copy of IRS form 1065, or a copy
of IRS form 4835, or any equivalent form prescribed by the Internal
Revenue Service, with respect to a federal income tax return;
2. A one-page business descripti on form provided by the
Oklahoma Tax Commission;
3. Farm Service Agency form 156EZ; or
4. Other documents at the discretion of the Oklahoma Tax
Commission that verify active agriculture production.
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No taxpayer shall be required to produce a copy of IRS S chedule
F as proof of eligibility for the exemptions authorized by this
section.
E. Except as provided in this subsection, for a person who is a
resident of another state and who is engaged in custom farming
operations in this state, the person shall prov ide the vendor proof
of residency, the name, address and telephone number of t he person
engaging the custom farmer and certification on the face of the
invoice, under the penalty of perjury, that the property purchased
shall be used in agricultural product ion as proof of eligibility for
the sales tax exemption authorized by Section 1358 of this title.
Any person who is a resident of another state and who is engaged in
custom farming operations in this state and who owns property in
this state, shall obtain proof of eligibility as provided in
subsection C or D of this section.
F. If an agricultural exemption permit holder purchases
tangible personal property from a vendor on a regular basis, the
permit holder may furnish the vendor proof of eligibility as
provided for in subsections C and D of this section and the vendor
may subsequently make sales of tangible personal property to the
permit holder without requiring proof of eligibility for each
subsequent sale. Provided, the permit holder shall notify the
vendor of all purchases which are not exempt from sales tax under
the provisions of Section 1358 of this title and remit the
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applicable amount of tax thereon. If the permit holder fails to
notify the vendor of purchases not exempt from sales tax, then
sufficient grounds shall exist for the Oklahoma Tax Commission to
cancel the agricultural exemption permit of the permit holder who so
failed to notify the vendor.
G. If an out-of-state agricultural exemption permit holder
purchases tangible personal propert y from a vendor within this state
who is not in the business of shipping the t angible personal
property purchased, then the out -of-state agricultural exemption
permit holder is responsible for providing an export bill of lading
or other documentation to th e vendor from whom the tangible personal
property was purchased showing that the point of delivery of such
goods for use and consumption is outside this state.
H. A purchaser who uses an agricultural exemption permit or
provides proof of eligibility pursu ant to subsection E of this
section to purchase, exempt from sales tax, items not authorized for
exemption under Section 1358 of this title shall be subject to a
penalty in the amount of Five Hundred Dollars ($500.00).
SECTION 2. This act shall become effective November 1, 2025.
60-1-10104 AO 01/07/25