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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1482 By: West (Tammy)
AS INTRODUCED
An Act relating to revenue and taxation; amending 68
O.S. 2021, Section 1354, which relates to sales tax;
modifying items subject t o sales tax to include due s
and fees paid at certain car washes; providing
definition; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Sect ion 1354, is
amended to read as follows:
Section 1354. A. There is hereby le vied upon all sales, not
otherwise exempted in the Oklahoma Sales Tax Code, an excise tax of
four and one-half percent (4.5%) of the gross receipts or gross
proceeds of each sale of the following:
1. Tangible personal property, except newspapers and
periodicals;
2. Natural or artificial gas, electricity, ice, steam, or any
other utility or public service, except water, sewage and refuse.
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Provided, the rate of four and one -half percent (4.5%) shall not
apply to sales subject to the provisions of paragraph 6 of Section
1357 of this title;
3. Transportation for hire to persons by common carriers,
including railroads both steam and electric, motor transportation
companies, pullman car companies, airlines, and other means of
transportation for hire, excluding:
a. transportation services provided by a tourism service
broker which are incidental to the rendition of
tourism brokerage services by such broker to a
customer regardless of w hether or not such
transportation services are actually owned and
operated by the tourism service broker. For purposes
of this subsection, "tourism service broker " means any
person, firm, association or corporation or any
employee of such person, firm, as sociation or
corporation which, for a fee, commission or other
valuable consideration, arranges or offers to arrange
trips, tours or other vacation or recreational travel
plans for a customer, and
b. transportation services provided by a funeral
establishment to family members and other persons for
purposes of conducting a funeral i n this state;
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4. Intrastate, interstate and international telecommunications
services sourced to this state in accordance with Section 1354.30 of
this title and ancillary servic es. Provided:
a. the term "telecommunications services " shall mean the
electronic transmission, conveyance, or routing of
voice, data, audio, video, or any other information or
signals to a point, or between or among points. The
term "telecommunications services" includes such
transmission, conveyance, or routing in which computer
processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service i s referred to as voice -over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications services " do not include:
(1) data processing and information services that
allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser where such
purchaser's primary purpose for the underlying
transaction is the processed data or information,
(2) installation or maintenance of wi ring or
equipment on a customer 's premises,
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(3) tangible personal property,
(4) advertising, including but not limited to
directory advertising,
(5) billing and collection services provided to third
parties,
(6) Internet access services ,
(7) radio and television audio and video programming
services, regardless of the medium, includi ng the
furnishing of transmission, conveyance and
routing of such services by the programming
service provider. Radio and television audio and
video programming services shall i nclude, but not
be limited to, cable service as defined in 47
U.S.C. 522(6) and audio and video programming
services delivered by commercial mobile radio
service providers, as defined in 47 C.F.R. 20.3,
(8) ancillary services, or
(9) digital products deliv ered electronically,
including but not limited to, software, music,
video, reading materials or ring tones,
b. the term "interstate" means a "telecommunications
service" that originates in one United States state,
or a United States territory or possession , and
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terminates in a different United States state or a
United States territory or possession,
c. the term "intrastate" means a telecommunications
service that originates in one United States state or
a United States territory or possession, and
terminates in the same United States state or a United
States territory or possession,
d. the term "ancillary services" means services that are
associated with or incidental to the provision of
telecommunications services, including but not limited
to "detailed telecommunications billing ", "directory
assistance", "vertical service", and "voice mail
services",
e. in the case of a bundled transaction that includes
telecommunication service, ancillary service, Internet
access or audio or video programming service:
(1) if the price is attributable to products that are
taxable and products that ar e nontaxable, the
portion of the price attributable to the
nontaxable products may be subject to tax unless
the provider can identify by reasonable and
verifiable standards such portion for its books
and records kept in the regular course of
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business for other purposes, including, but not
limited to, nontax purposes, and
(2) the provisions of this paragraph shall apply
unless otherwise provided by federal law, and
f. a sale of prepaid calling service or prepaid wireless
calling service shall be taxable at t he time of sale
to the customer;
5. Telecommunications nonrecurring charges, which means an
amount billed for the installation, connection, change or initiation
of telecommunications services received by a customer;
6. Printing or printed matter of all types, kinds, or character
and, except for services of printing, copying or photocopying
performed by a privately owned scientific and educational library
sustained by monthly or annual dues paid by members sharing the use
of such services with students int erested in the study of geology,
petroleum engineering or related subjects, any service of printing
or overprinting, including the copying of information by mimeograph,
multigraph, or by otherwise duplicating written or printed matter in
any manner, or the production of microfiche containing information
from magnetic tapes or other media furnished by customers;
7. Service of furnishing rooms by hotel, apartment hotel,
public rooming house, motel, public lodging house, or tourist camp;
8. Service of furnis hing storage or parking privileges by auto
hotels or parking lots;
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9. Computer hardware, software, coding sheets, cards, magnetic
tapes or other media on which prewritten progra ms have been coded,
punched, or otherwise recorded, including the gross receipts from
the licensing of software programs;
10. Foods, confections, and all drinks sold or dispensed by
hotels, restaurants, or other dispensers, and sold for immediate
consumption upon the premises or delivered or carried away from the
premises for consumption elsewhere;
11. Advertising of all kinds, types, and characters, including
any and all devices used for advertising purposes except those
specifically exempt pursuant to t he provisions of Section 1357 of
this title;
12. Dues or fees to clubs including free or complimentary dues
or fees which have a value equivalent to the charge that would have
otherwise been made, including any fees paid for the use of
facilities or services rendered at a health spa or club or any
similar facility or business;
13. Dues or fees for car wash memberships, clubs, or any other
type of periodic payment plans for the use of automatic tunnel car
washes. The term "automatic tunnel car wash" means washing a
vehicle by mechanical means, where the only activities performed by
an employee include one or more of the following:
a. receiving payment for the transaction,
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b. guiding the vehicle into the entrance or exit of the
conveyor,
c. applying low-pressure spray of chemicals to the
vehicle prior to the cleaning of the vehicle, or
d. placing protective tape or covers on the vehicle prior
to cleaning.
The term "automatic tunnel car wash" does not include self -
service car washes without automatic car wash ing mechanical
components or any activity whereby an employee physically touches
the vehicle for the purpose of cleaning or restoring the vehicle,
enters or cleans any part of the interior of the vehicle, or
performs an activity on the vehicle other than t hose listed above;
14. Tickets for admission to or voluntary contributions ma de to
places of amusement, sports, entertainment, exhibition, display, or
other recreational events or activities, including free or
complimentary admissions which have a value e quivalent to the charge
that would have otherwise been made; provided, that the state tax
generated from the sale of tickets for admission by an aquarium
exempt from taxation pursuant to the provisions of the Internal
Revenue Code, 26 U.S.C., Section 501(c )(3), or owned or operated by
a public trust or political subdivision of this state, shall be
collected and disbursed to the nonprofit organization, public trust
or political subdivision responsible for the aquarium 's operations
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for use by that entity for promoting visitation primarily to out -of-
state residents;
14. 15. Charges made for the privilege of entering or engaging
in any kind of activity, such as tennis, racquetball, or handball,
when spectators are charged no admission fee;
15. 16. Charges made for the privilege of using items for
amusement, sports, entertainment, or rec reational activity, such as
trampolines or golf carts;
16. 17. The rental of equipment for amusement, sports,
entertainment, or other recreational activities, such as bowling
shoes, skates, golf carts, or other sports or athletic equipment;
17. 18. The gross receipts from sales from any vending machine
without any deduction for rental to locate the vending machine on
the premises of a person who is not the owner or any other
deductions therefrom;
18. 19. The gross receipts or gross proceeds from the rent al or
lease of tangible personal property, including rental or lease of
personal property when the rental or lease agreement requires the
vendor to launder, clean, repair, or oth erwise service the rented or
leased property on a regular basis, without any deduction for the
cost of the service rendered. If the rental or lease charge is
based on the retail value of the property at the time of making the
rental or lease agreement and the expected life of the property, and
the rental or lease charge is separate ly stated from the service
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cost in the statement, bill, or invoice delivered to the consumer,
the cost of services rendered shall be deducted from the gross
receipts or gross pro ceeds;
19. 20. Flowers, plants, shrubs, trees, and other floral items,
whether or not produced by the vendor, sold by persons engaged in
florist or nursery business in this state, including all orders
taken by an Oklahoma business for delivery in another state. All
orders taken outside this state for delivery within this state sha ll
not be subject to the taxes levied in this section;
20. 21. Tangible personal property sold to persons, peddlers,
solicitors, or other salesmen, for resale when there is like lihood
that this state will lose tax revenue due to the difficulty of
enforcing the provisions of the Oklahoma Sales Tax Code because of:
a. the operation of the business,
b. the nature of the business,
c. the turnover of independent contractors,
d. the lack of place of business in which to display a
permit or keep records,
e. lack of adequate records,
f. the fact that the persons are minors or transients,
g. the fact that the persons are engaged in service
businesses, or
h. any other reasonable reason;
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21. 22. Any taxable services and tangible personal property
including materials, supplies, and equipment sold to contractors for
the purpose of developing and improving real estate even though said
real estate is intended for resale as real property, hereby declared
to be sales to consumers or users, however, taxable materials,
supplies and equipment sold to contractors as provided by this
subsection which are purchased as a result of and subsequent to the
date of a contract entered into either prior to the e ffective date
of any law increasing the rate of sales tax imposed by this article,
or entered into prior to the effective date of an ordinance or other
measure increasing the sales tax levy of a political subdivision
shall be subject to the rate of sales t ax applicable, as of the date
such contract was entered into, to sales of such materials, supplies
and equipment if such purchases are required in order to complete
the contract. Such rate shall be applicable to purchases made
pursuant to the contract or any change order under the contract
until the contract or any change order has been completed, accepted
and the contractor has been discharged from any further obligation
under the contract or change order or until two (2) years from the
date on which the contract was entered into whichever occurs first.
The increased sales tax rat e shall be applicable to all such
purchases at the time of sale and the contractor shall file a claim
for refund before the expiration of three (3) years after the date
of contract completion or five (5) years after the contract was
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entered into, whichever occurs earlier. However, the Oklahoma Tax
Commission shall prescribe rules and regulations and shall provide
procedures for the refund to a contractor of sales taxes collected
on purchases eligible for the lower sales tax rate authorized by
this subsection;
22. 23. Any taxable services and tangible personal property
sold to persons who are primarily engaged in selling their services,
such as repairmen, hereby declared to be sal es to consumers or
users; and
23. 24. Canoes and paddleboats as defined in Section 4002 of
Title 63 of the Oklahoma Statutes.
B. All solicitations or advertisements in print or electronic
media by Group Three vendors, for the sale of tangible property to
be delivered within this state, shall contain a notice that the sale
is subject to Oklahoma sales tax, unless the sale is exempt from
such taxation.
SECTION 2. This act shall become effective November 1, 2025.
60-1-12148 AO 12/19/24