Oklahoma 2025 Regular Session

Oklahoma House Bill HB1864 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB1864 HFLR Page 1
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	3	+	Req. No. 11693 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31	28		STATE OF OKLAHOMA
32	29
33	30		1st Session of the 60th Legislature (2025)
34	31
35		-	HOUSE BILL 1864 By: Roberts of the House
36		-
37		-	and
38		-
39		-	Hines of the Senate
	32	+	HOUSE BILL 1864 By: Roberts
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45	38		AS INTRODUCED
46	39
47		-	[ revenue and taxation - sales tax exemptions -
48		-	tangible personal property – veterans - nonvehicle
49		-	and vehicle purchases - effective date ]
	40	+	An Act relating to revenue and taxation; amending 68
	41	+	O.S. 2021, Section 1357, as last amended by Section
	42	+	4, Chapter 363, O.S.L. 2024 (68 O.S. Supp. 2024,
	43	+	Section 1357), which relates to sales tax exemptions;
	44	+	modifying sales tax exemption on sales of tangible
	45	+	personal property for veterans for nonvehicle and
	46	+	vehicle purchases; and providing an effective date .
	47	+
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54	52		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
55	53		SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
56	54		last amended by Section 4, Chapter 363, O.S.L. 2024 (68 O.S. Supp.
57	55		2024, Section 1357), is amended to read as follows:
58	56		Section 1357. Exemptio ns – General.
59	57		There are hereby specifically exempted from the tax levied by
60	58		the Oklahoma Sales Tax Code:
61	59		1. Transportation of school pupils to and from elementary
62	60		schools or high schools in motor or other vehicles;
	61	+	2. Transportation of persons where the fare of each person does
	62	+	not exceed One Dollar ($1.00), or local transportatio n of persons
	63	+	within the corporate limits of a municipality except by taxicabs;
63	64
64		-	HB1864 HFLR Page 2
65		-	BOLD FACE denotes Committee Amendments. 1
	65	+	Req. No. 11693 Page 2 1
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90		-	2. Transportation of persons where the fare of each person does
91		-	not exceed One Dollar ($1.00), or local transportatio n of persons
92		-	within the corporate limits of a municipality except by taxi cabs;
93	90		3. Sales for resale to persons engaged in the business of
94	91		reselling the articles purchased, whethe r within or without the
95	92		state, provided that such sales to residents of this state are made
96	93		to persons to whom sales tax permits have been issued as provided in
97	94		the Oklahoma Sales Tax Code. This exemption shall not apply to the
98	95		sales of articles made to p ersons holding permits when such persons
99	96		purchase items for their use and whic h they are not regularly
100	97		engaged in the business of reselling; neither shall this exemption
101	98		apply to sales of tangible personal property to peddlers, solicitors
102	99		and other salespersons who do not have an established place of
103	100		business and a sales tax permit. The exemption provided by this
104	101		paragraph shall apply to sales of motor fuel or diesel fuel to a
105	102		Group Five vendor, but the use of such motor fuel or diesel fuel by
106	103		the Group Five vendor shall not be exempt from the tax levied by the
107	104		Oklahoma Sales Tax Co de. The purchase of motor fuel or diesel fuel
108	105		is exempt from sales tax when the motor fuel is for shipment outside
109	106		this state and consumed by a common carrier by rail in the con duct
110	107		of its business. The sales tax shall apply to the purchase of motor
111	108		fuel or diesel fuel in Oklahoma by a common carrier by rail when
112	109		such motor fuel is purchased for fueling, within this state, of any
113	110		locomotive or other motorized flanged wheel equip ment;
	111	+	4. Sales of advertising space in newspapers and periodicals;
	112	+	5. Sales of programs relating to sporting and entertainment
	113	+	events, and sales of advertising on billboards (including signage,
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115		-	HB1864 HFLR Page 3
116		-	BOLD FACE denotes Committee Amendments. 1
	115	+	Req. No. 11693 Page 3 1
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141		-	4. Sales of advertising space in newspapers and periodicals;
142		-	5. Sales of programs relating to sporting and entertainment
143		-	events, and sales of a dvertising on billboards (including signage,
144	140		posters, panels, marquees or on other similar surfaces, whet her
145	141		indoors or outdoors) or in programs relating to sporting and
146	142		entertainment events, and sales of any advertising, to be displayed
147	143		at or in connection with a sporting event, via the Internet,
148	144		electronic display devices or through public address or broadc ast
149	145		systems. The exemption authorized by this paragraph shall be
150	146		effective for all sales made on or after January 1, 2001;
151	147		6. Sales of any advertising, other than the advertising
152	148		described by paragraph 5 of this section, via the Internet,
153	149		electronic display devices or through the electronic media including
154	150		radio, public address or broadcast systems, television (whether
155	151		through closed circuit broadcasting systems or otherwise), and cable
156	152		and satellite television, and the servicing of any advertising
157	153		devices;
158	154		7. Eggs, feed, supplies, machinery, and equipment purchased by
159	155		persons regularly engaged in the business of raising worms, fish,
160	156		any insect, or any other form of terrestrial or aquatic animal life
161	157		and used for the purpose of raising same for marketing. This
162	158		exemption shall only be granted and extended to the purchaser when
163	159		the items are to be used and in fact are used in the raising of
164	160		animal life as set out above. Each purchaser shall certify, in
	161	+	writing, on the invoice or sales ticket retained by th e vendor that
	162	+	the purchaser is regularly engaged in the business of raising su ch
	163	+	animal life and that the items purchased will be used only in such
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166		-	HB1864 HFLR Page 4
167		-	BOLD FACE denotes Committee Amendments. 1
	165	+	Req. No. 11693 Page 4 1
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192		-	writing, on the invoice or sales ticket retained by th e vendor that
193		-	the purchaser is regularly engaged in the business of raising su ch
194		-	animal life and that the items purchased will be used only in such
195	190		business. The vendor shall certify to the Oklahoma Tax Commission
196	191		that the price of the items has been redu ced to grant the full
197	192		benefit of the exemption. Violation hereof by the purchaser or
198	193		vendor shall be a misdemeanor;
199	194		8. Sale of natural or artificial gas and electricity, and
200	195		associated delivery or transmission services, when sold exclusively
201	196		for residential use. Provided, this exemption shall not apply to
202	197		any sales tax levied by a city or town, or a county or any other
203	198		jurisdiction in this state;
204	199		9. In addition to the exemptions authorized by Section 1357.6
205	200		of this title, sales of drugs sold pursuant to a prescription
206	201		written for the treatment of human beings by a person licensed to
207	202		prescribe the drugs, and sales of insulin and medical oxygen.
208	203		Provided, this exemption shall not apply to over -the-counter drugs;
209	204		10. Transfers of title or possession of em pty, partially
210	205		filled, or filled returnable oil and chemical drums to any pers on
211	206		who is not regularly engaged in the business of selling, reselling
212	207		or otherwise transferring empty, partially filled or filled
213	208		returnable oil drums;
	209	+	11. Sales of one-way utensils, paper napkins, paper cups,
	210	+	disposable hot containers, and other one -way carry out materials to
	211	+	a vendor of meals or beverages;
	212	+	12. Sales of food or food products for home consumption which
	213	+	are purchased in whole or in part with coupons issued pursua nt to
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215		-	HB1864 HFLR Page 5
216		-	BOLD FACE denotes Committee Amendments. 1
	215	+	Req. No. 11693 Page 5 1
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241		-	11. Sales of one-way utensils, paper napkins, paper cups,
242		-	disposable hot containers, and other one -way carry out materials to
243		-	a vendor of meals or beverages;
244		-	12. Sales of food or food products for home consumption which
245		-	are purchased in whole or in part with coupons issued pursua nt to
246	240		the federal food stamp program as authorized by Sections 2011
247	241		through 2029 of Title 7 of the United States Code, as to that
248	242		portion purchased with such coupons. The exemption provided for
249	243		such sales shall be inapplicable to such sales upon the effec tive
250	244		date of any federal law that removes the requirement of the
251	245		exemption as a condition for participation by the state in the
252	246		federal food stamp program;
253	247		13. Sales of food or food products, or any equipment or
254	248		supplies used in the preparation of the foo d or food products to or
255	249		by an organization which:
256	250		a. is exempt from taxation pursuant to the provisions of
257	251		Section 501(c)(3) of the Internal Revenue Code, 26
258	252		U.S.C., Section 501(c)(3), and which provides and
259	253		delivers prepared meals for home consumption to
260	254		elderly or homebound persons as part of a program
261	255		commonly known as "Meals on Wheels" or "Mobile Meals",
262	256		or
263	257		b. is exempt from taxation pursuant to the provisions of
264	258		Section 501(c)(3) of the Internal Revenue Code, 26
	259	+	U.S.C., Section 501(c)(3), and which re ceives federal
	260	+	funding pursuant to the Older Americans Act of 1965,
	261	+	as amended, for the purpose of providing nutrition
	262	+	programs for the care and benefit of elderly persons;
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266		-	HB1864 HFLR Page 6
267		-	BOLD FACE denotes Committee Amendments. 1
	264	+	Req. No. 11693 Page 6 1
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292		-	U.S.C., Section 501(c)(3), and which re ceives federal
293		-	funding pursuant to the Older Americans Act of 1965,
294		-	as amended, for the purpose of providing nutrition
295		-	programs for the care and benefi t of elderly persons;
296	289		14. a. Sales of tangible personal property or services to or
297	290		by organizations which are exempt from taxation
298	291		pursuant to the provisions of Section 501(c)(3) of the
299	292		Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
300	293		and:
301	294		(1) are primarily involved in the collection and
302	295		distribution of food and other household products
303	296		to other organizations that facilitate the
304	297		distribution of such products to the needy and
305	298		such distributee organizations are exempt from
306	299		taxation pursuant to the provisions of Section
307	300		501(c)(3) of the Internal Revenue Code, 26
308	301		U.S.C., Section 501(c)(3), or
309	302		(2) facilitate the distribution of such products to
310	303		the needy.
311	304		b. Sales made in the course of business for profit or
312	305		savings, competing with other persons engaged in the
313	306		same or similar business shall not be exempt under
314	307		this paragraph;
	308	+	15. Sales of tangible personal prop erty or services to
	309	+	children's homes which are located on church -owned property and are
	310	+	operated by organizations exempt from taxation pursuant to the
	311	+	provisions of the Internal Revenue Code, 26 U.S.C., Section
	312	+	501(c)(3);
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316		-	HB1864 HFLR Page 7
317		-	BOLD FACE denotes Committee Amendments. 1
	314	+	Req. No. 11693 Page 7 1
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342		-	15. Sales of tangible personal prop erty or services to
343		-	children's homes which are located on church -owned property and are
344		-	operated by organizations exempt from taxation pursuant to the
345		-	provisions of the Internal Revenue Code, 26 U.S.C., Section
346		-	501(c)(3);
347	339		16. Sales of computers, data proc essing equipment, related
348	340		peripherals, and telephone, telegraph or telecommunications service
349	341		and equipment for use in a qualified aircraft maintenance or
350	342		manufacturing facility. For purposes of this paragraph, "qualified
351	343		aircraft maintenance or manufactu ring facility" means a new or
352	344		expanding facility primarily engaged in aircraft repair, building or
353	345		rebuilding whether or not on a factory basis, whose total cost of
354	346		construction exceeds the sum of Five Million Dollars ($5,000,000.00)
355	347		and which employs at l east two hundred fifty (250) new full -time-
356	348		equivalent employees, as certified by the Oklahoma Employment
357	349		Security Commission, upon completion of the facility. In order to
358	350		qualify for the exemption provided for by this paragraph, the cost
359	351		of the items purchased by the qualified aircraft maintenance or
360	352		manufacturing facility shall eq ual or exceed the sum of Two Million
361	353		Dollars ($2,000,000.00);
362	354		17. Sales of tangible personal property consumed or
363	355		incorporated in the construction or expansion of a qualified
364	356		aircraft maintenance or manufacturing facility as defined in
365	357		paragraph 16 of this section. For purposes of this paragraph, sales
	358	+	made to a contractor or subcontractor that has previously entered
	359	+	into a contractual relationship with a qualified aircraft
	360	+	maintenance or manufacturing facility for construction or expansion
	361	+	of such a facility shall be considered sales made to a qualified
	362	+	aircraft maintenance or manufacturing facility;
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367		-	HB1864 HFLR Page 8
368		-	BOLD FACE denotes Committee Amendments. 1
	364	+	Req. No. 11693 Page 8 1
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393		-	made to a contractor or subcontractor that has previously entered
394		-	into a contractual relationship with a qualified aircraft
395		-	maintenance or manufacturing facility for construction or expansion
396		-	of such a facility shall be considered sales made to a qualified
397		-	aircraft maintenance o r manufacturing facility;
398	389		18. Sales of the following telecommunications services:
399	390		a. Interstate and International "800 service". "800
400	391		service" means a telecommunications service that
401	392		allows a caller to dial a toll -free number without
402	393		incurring a charge for the call. The service is
403	394		typically marketed under the name "800", "855", "866",
404	395		"877" and "888" toll-free calling, and any subsequent
405	396		numbers designated by the Federal Communicati ons
406	397		Commission,
407	398		b. Interstate and International "900 service". "900
408	399		service" means an inbound toll telecommunications
409	400		service purchased by a subscriber that allows the
410	401		subscriber's customers to call in to the subscriber 's
411	402		prerecorded announcement or live service. 900 service
412	403		does not include the charge for: collection services
413	404		provided by the seller of the telecommunications
414	405		services to the subscriber, or service or product sol d
415	406		by the subscriber to the subscriber 's customer. The
416	407		service is typically ma rketed under the name "900"
	408	+	service, and any subsequent numbers designated by the
	409	+	Federal Communications Commission,
	410	+	c. Interstate and International "private communications
	411	+	service". "Private communications service " means a
	412	+	telecommunications service that entitles the customer
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418		-	HB1864 HFLR Page 9
419		-	BOLD FACE denotes Committee Amendments. 1
	414	+	Req. No. 11693 Page 9 1
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444		-	service, and any subsequent numbers designate d by the
445		-	Federal Communications Commission,
446		-	c. Interstate and International "private communications
447		-	service". "Private communications service " means a
448		-	telecommunications service that entitles the customer
449	439		to exclusive or priority use of a communications
450	440		channel or group of channels between or among
451	441		termination points, regardless of the manner in which
452	442		such channel or channels are connected, and includes
453	443		switching capacity, extension l ines, stations and any
454	444		other associated services that are provided in
455	445		connection with the use of such channel or channels,
456	446		d. "Value-added nonvoice data service ". "Value-added
457	447		nonvoice data service " means a service that otherwise
458	448		meets the definition of telecommunications services in
459	449		which computer processing applications are used to act
460	450		on the form, content, code or protocol of the
461	451		information or data primarily for a purpose oth er than
462	452		transmission, conveyance, or routing,
463	453		e. Interstate and International telecommunications
464	454		service which is:
465	455		(1) rendered by a company for private use within its
466	456		organization, or
	457	+	(2) used, allocated or distributed by a company to
	458	+	its affiliated group ,
	459	+	f. Regulatory assessments and charges including charges
	460	+	to fund the Oklahoma Universal Service Fund, the
	461	+	Oklahoma Lifeline Fund and the Oklahoma High Cost
	462	+	Fund, and
467	463
468		-	HB1864 HFLR Page 10
469		-	BOLD FACE denotes Committee Amendments. 1
	464	+	Req. No. 11693 Page 10 1
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494		-	(2) used, allocated or distributed by a company to
495		-	its affiliated group ,
496		-	f. Regulatory assessments and charges including charges
497		-	to fund the Oklahoma Universal Service Fund, the
498		-	Oklahoma Lifeline Fund and the Oklahoma High Cost
499		-	Fund, and
500	489		g. Telecommunications nonrecurring charges including but
501	490		not limited to the installation, connection, change,
502	491		or initiation of telecommunications services which are
503	492		not associated with a retail consumer sale;
504	493		19. Sales of railroad track spikes manufactured and sold for
505	494		use in this state in the construction or repair of railroad tracks,
506	495		switches, sidings, and turnouts;
507	496		20. Sales of aircraft and aircraft parts provided such sales
508	497		occur at a qualified aircraft maintenance facility. As used in this
509	498		paragraph, "qualified aircraft maintenance facility " means a
510	499		facility operated by an air common ca rrier including one or more
511	500		component overhaul support buildings or structures in an area owned,
512	501		leased, or controlled by the air common carrier, at which there were
513	502		employed at least two thousand (2,000) full -time-equivalent
514	503		employees in the preceding yea r as certified by the Oklahoma
515	504		Employment Security Commission and which is primarily related to the
516	505		fabrication, repair, alteration, modification, refurbishing,
517	506		maintenance, building, or rebuilding of commercial aircraft or
	507	+	aircraft parts used in air commo n carriage. For purposes of this
	508	+	paragraph, "air common carrier" shall also include members of an
	509	+	affiliated group as defined by Section 1504 of the Internal Revenue
	510	+	Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
	511	+	machinery, tools, suppli es, equipment, and related tangible personal
	512	+	property and services used or consumed in the repair, remodeling, or
518	513
519		-	HB1864 HFLR Page 11
520		-	BOLD FACE denotes Committee Amendments. 1
	514	+	Req. No. 11693 Page 11 1
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545		-	aircraft parts used in air commo n carriage. For purposes of this
546		-	paragraph, "air common carrier" shall also include members of an
547		-	affiliated group as defined by Section 1504 of the I nternal Revenue
548		-	Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
549		-	machinery, tools, suppli es, equipment, and related tangible personal
550		-	property and services used or consumed in the repair, remodeling, or
551	539		maintenance of aircraft, aircraft engines or aircraft component
552	540		parts which occur at a qualified aircraft maintenance facility;
553	541		21. Sales of machinery and equipment purchased and used by
554	542		persons and establishments prima rily engaged in computer services
555	543		and data processing:
556	544		a. as defined under Industry Group Numbers 7372 and 7373
557	545		of the Standard Industrial Classification (SIC)
558	546		Manual, latest version, which derive at least fifty
559	547		percent (50%) of their annual gross revenues from the
560	548		sale of a product or service to an out -of-state buyer
561	549		or consumer, and
562	550		b. as defined under Industry Group Number 7374 of the SIC
563	551		Manual, latest version, which derive at least eighty
564	552		percent (80%) of their annual gross revenues from the
565	553		sale of a product or service to an out -of-state buyer
566	554		or consumer.
567	555		Eligibility for the exemption set out in this paragraph shall be
568	556		established, subject to review by the Tax Commission, by annually
	557	+	filing an affidavit with the Tax Commission stating that the
	558	+	facility so qualifies and such information as required by the Tax
	559	+	Commission. For purposes of determining whether annual gross
	560	+	revenues are derived from sales to out -of-state buyers or consumers,
	561	+	all sales to the federal government shall be considered to be to a n
	562	+	out-of-state buyer or consumer;
569	563
570		-	HB1864 HFLR Page 12
571		-	BOLD FACE denotes Committee Amendments. 1
	564	+	Req. No. 11693 Page 12 1
572	565		2
573	566		3
574	567		4
575	568		5
576	569		6
577	570		7
578	571		8
579	572		9
580	573		10
581	574		11
582	575		12
583	576		13
584	577		14
585	578		15
586	579		16
587	580		17
588	581		18
589	582		19
590	583		20
591	584		21
592	585		22
593	586		23
594	587		24
595	588
596		-	filing an affidavit with the Tax Commission stating that the
597		-	facility so qualifies and such information as required by the Tax
598		-	Commission. For purposes of determining whether annual gross
599		-	revenues are derived from sales to out -of-state buyers or consumers,
600		-	all sales to the federal government shall be considered to be to a n
601		-	out-of-state buyer or consumer;
602	589		22. Sales of prosthetic devices to an individual for use by
603	590		such individual. For purposes of this paragraph, "prosthetic
604	591		device" shall have the same meaning as provided in Section 1357.6 of
605	592		this title, but shall not include corrective eye glasses, contact
606	593		lenses, or hearing aids;
607	594		23. Sales of tangible personal property or services to a motion
608	595		picture or television production company to be used or consumed in
609	596		connection with an eligible production. For purposes of this
610	597		paragraph, "eligible production" means a documentary, special, music
611	598		video or a television commercial or television program that will
612	599		serve as a pilot for or be a segment of an on going dramatic or
613	600		situation comedy series filmed or taped for network or national or
614	601		regional syndication or a feature -length motion picture intended for
615	602		theatrical release or for network or national or regional
616	603		syndication or broadcast. The provisions of this paragraph shall
617	604		apply to sales occurring on or after July 1, 1996. In o rder to
618	605		qualify for the exemption, the motion picture or television
619	606		production company shall file any documentation and information
	607	+	required to be submitted pursuant to rules pro mulgated by the Tax
	608	+	Commission;
	609	+	24. Sales of diesel fuel sold for consumption by commercial
	610	+	vessels, barges and other commercial watercraft;
	611	+	25. Sales of tangible personal property or services to tax -
	612	+	exempt independent nonprofit biomedical research found ations that
620	613
621		-	HB1864 HFLR Page 13
622		-	BOLD FACE denotes Committee Amendments. 1
	614	+	Req. No. 11693 Page 13 1
623	615		2
624	616		3
625	617		4
626	618		5
627	619		6
628	620		7
629	621		8
630	622		9
631	623		10
632	624		11
633	625		12
634	626		13
635	627		14
636	628		15
637	629		16
638	630		17
639	631		18
640	632		19
641	633		20
642	634		21
643	635		22
644	636		23
645	637		24
646	638
647		-	required to be submitted pursuant to rules pro mulgated by the Tax
648		-	Commission;
649		-	24. Sales of diesel fuel sold for consumption by commercial
650		-	vessels, barges and other commercial watercraft;
651		-	25. Sales of tangible personal property or services to tax -
652		-	exempt independent nonprofit biomedical research found ations that
653	639		provide educational programs for Oklahoma science students and
654	640		teachers and to tax-exempt independent nonprofit community blood
655	641		banks headquartered in this state;
656	642		26. Effective May 6, 1992, sales of wireless telecommunications
657	643		equipment to a vendor who subsequently transfers the equipment at no
658	644		charge or for a discounted charge to a consumer as part of a
659	645		promotional package or as an inducement to commence or continue a
660	646		contract for wireless telecommunications services;
661	647		27. Effective January 1, 1991, leases of rail transportation
662	648		cars to haul coal to coal -fired plants located in this state which
663	649		generate electric power;
664	650		28. Beginning July 1, 2005, sales of aircraft engine repairs,
665	651		modification, and replacement parts, sales of aircraft frame rep airs
666	652		and modification, aircraft interior modification, and paint, and
667	653		sales of services employed in the repair, modification, and
668	654		replacement of parts of aircraft engines, aircraft frame and
669	655		interior repair and modification, and paint;
	656	+	29. Sales of materi als and supplies to the owner or operator of
	657	+	a ship, motor vessel, or barge th at is used in interstate or
	658	+	international commerce if the materials and supplies:
	659	+	a. are loaded on the ship, motor vessel, or barge and
	660	+	used in the maintenance and operation of t he ship,
	661	+	motor vessel, or barge, or
670	662
671		-	HB1864 HFLR Page 14
672		-	BOLD FACE denotes Committee Amendments. 1
	663	+	Req. No. 11693 Page 14 1
673	664		2
674	665		3
675	666		4
676	667		5
677	668		6
678	669		7
679	670		8
680	671		9
681	672		10
682	673		11
683	674		12
684	675		13
685	676		14
686	677		15
687	678		16
688	679		17
689	680		18
690	681		19
691	682		20
692	683		21
693	684		22
694	685		23
695	686		24
696	687
697		-	29. Sales of materi als and supplies to the owner or operator of
698		-	a ship, motor vessel, or barge th at is used in interstate or
699		-	international commerce if the materials and s upplies:
700		-	a. are loaded on the ship, motor vessel, or barge and
701		-	used in the maintenance and operation of t he ship,
702		-	motor vessel, or barge, or
703	688		b. enter into and become component parts of the ship,
704	689		motor vessel, or barge;
705	690		30. Sales of tangible personal property made at estate sales at
706	691		which such property is offered for sale on the premises of the
707	692		former residence of the decedent by a person who is not required to
708	693		be licensed pursuant to the Transient Merchant Licensing Act, or who
709	694		is not otherwise required to obtain a sales tax permit for the sale
710	695		of such property pursuant to the provisions of Section 1364 of th is
711	696		title; provided:
712	697		a. such sale or event may not be held for a period
713	698		exceeding three (3) consecutive days,
714	699		b. the sale must be conducted within six (6) months of
715	700		the date of death of the decedent, and
716	701		c. the exemption allowed by this paragraph shall not be
717	702		allowed for property that was not part of the
718	703		decedent's estate;
719	704		31. Beginning January 1, 2004, sales of electricity and
720	705		associated delivery and transmission services, when sold exclusively
	706	+	for use by an oil and gas operator for reservoir dewatering pr ojects
	707	+	and associated operations commencing on or after July 1, 2003, in
	708	+	which the initial water -to-oil ratio is greater than or equal to
	709	+	five-to-one water-to-oil, and such oil and gas development projects
	710	+	have been classified by the Corporation Commission as a reservoir
	711	+	dewatering unit;
721	712
722		-	HB1864 HFLR Page 15
723		-	BOLD FACE denotes Committee Amendments. 1
	713	+	Req. No. 11693 Page 15 1
724	714		2
725	715		3
726	716		4
727	717		5
728	718		6
729	719		7
730	720		8
731	721		9
732	722		10
733	723		11
734	724		12
735	725		13
736	726		14
737	727		15
738	728		16
739	729		17
740	730		18
741	731		19
742	732		20
743	733		21
744	734		22
745	735		23
746	736		24
747	737
748		-	for use by an oil and gas operator for reservoir dewatering pr ojects
749		-	and associated operations commencing on or after July 1, 2003, in
750		-	which the initial water -to-oil ratio is greater than or equal to
751		-	five-to-one water-to-oil, and such oil and gas development projects
752		-	have been classified by the Corporation Commission as a reservoir
753		-	dewatering unit;
754	738		32. Sales of prewritten computer software th at is delivered
755	739		electronically. For purposes of this paragraph, "delivered
756	740		electronically" means delivered to the purchaser by means other than
757	741		tangible storage media;
758	742		33. Sales of modular dwelling units when built at a production
759	743		facility and moved in whole or in parts, to be assembled on -site,
760	744		and permanently affixed to the real property and used for
761	745		residential or commercial purposes. The exemption provided by this
762	746		paragraph shall equal forty-five percent (45%) of the total sales
763	747		price of the modular dwelling unit. For purposes of this paragraph,
764	748		"modular dwelling unit " means a structure that is not subject to the
765	749		motor vehicle excise tax imposed pursuant to Section 2103 of this
766	750		title;
767	751		34. Sales of tangible personal property or services to:
768	752		a. persons who are residents of Oklahoma and have been
769	753		honorably discharged from active service in any branch
770	754		of the Armed Forces of the United States or Oklahoma
771	755		National Guard and who h ave been certified by the
	756	+	United States Department of Veterans Affairs or its
	757	+	successor to be in receipt of disability compensation
	758	+	at the one-hundred-percent rate and the disability
	759	+	shall be permanent and have been sustained through
	760	+	military action or acc ident or resulting from disease
	761	+	contracted while in such active service and registered
772	762
773		-	HB1864 HFLR Page 16
774		-	BOLD FACE denotes Committee Amendments. 1
	763	+	Req. No. 11693 Page 16 1
775	764		2
776	765		3
777	766		4
778	767		5
779	768		6
780	769		7
781	770		8
782	771		9
783	772		10
784	773		11
785	774		12
786	775		13
787	776		14
788	777		15
789	778		16
790	779		17
791	780		18
792	781		19
793	782		20
794	783		21
795	784		22
796	785		23
797	786		24
798	787
799		-	United States Department of Veterans Affairs or its
800		-	successor to be in receipt of disability compensation
801		-	at the one-hundred-percent rate and the disability
802		-	shall be permanent and have been sustained through
803		-	military action or acc ident or resulting from disease
804		-	contracted while in such active service and registered
805	788		with the veterans registry created by the Oklahoma
806	789		Department of Veterans Affairs, or
807	790		b. the surviving spouse of the person in subparagraph a
808	791		of this paragraph if the pe rson is deceased and the
809	792		spouse has not remarried and the surviving spouse of a
810	793		person who is determined by the United States
811	794		Department of Defense or any branch of the United
812	795		States military to have died while in the line of duty
813	796		if the spouse has not rem arried. Sales for the
814	797		benefit of an eligible person to a spouse of the
815	798		eligible person or to a member of the household in
816	799		which the eligible person resides and who is
817	800		authorized to make purchases on the person 's behalf,
818	801		when such eligible person is not pr esent at the sale,
819	802		shall also be exempt for purposes of this paragraph.
820	803		The Oklahoma Tax Commission shall issue a separate
821	804		exemption card to a spouse of an eligible person or to
822	805		a member of the household in which the eligible person
	806	+	resides who is authori zed to make purchases on the
	807	+	person's behalf, if requested by the eligible person.
	808	+	Sales qualifying for the exemption authorized by this
	809	+	paragraph shall not exceed Twenty -five Thousand
	810	+	Dollars ($25,000.00) for nonvehicle purchases per year
	811	+	per individual while the disabled veteran is living.
823	812
824		-	HB1864 HFLR Page 17
825		-	BOLD FACE denotes Committee Amendments. 1
	813	+	Req. No. 11693 Page 17 1
826	814		2
827	815		3
828	816		4
829	817		5
830	818		6
831	819		7
832	820		8
833	821		9
834	822		10
835	823		11
836	824		12
837	825		13
838	826		14
839	827		15
840	828		16
841	829		17
842	830		18
843	831		19
844	832		20
845	833		21
846	834		22
847	835		23
848	836		24
849	837
850		-	resides who is authori zed to make purchases on the
851		-	person's behalf, if requested by the eligible person.
852		-	Sales qualifying for the exemption authorized by this
853		-	paragraph shall not exceed Twenty -five Thousand
854		-	Dollars ($25,000.00) for nonvehicle purchases per year
855		-	per individual while the disabled veteran is living.
856	838		Sales qualifying for the exemption auth orized by this
857	839		paragraph shall not exceed Twenty Thousand Dollars
858	840		($20,000.00) for a vehicle purchase per individual
859	841		while the disabled veteran is living, as long as the
860	842		exemption has not been used for a vehicle in the
861	843		preceding five (5) years. Sales qualifying for the
862	844		exemption authorized by this paragraph shall not
863	845		exceed One Thousand Dollars ($1,000.00) per year for
864	846		an unremarried surviving spouse. Upon request of the
865	847		Tax Commission, a person asserting or claiming the
866	848		exemption authorized by this parag raph shall provide a
867	849		statement, executed under oath, that the total sales
868	850		amounts for which the exemption is applicable have not
869	851		exceeded Twenty-five Thousand Dollars ($25,000.00 ) per
870	852		year per living disabled veteran or One Thousand
871	853		Dollars ($1,000.00) per year for an unremarried
872	854		surviving spouse. If the amount of such exempt sales
873	855		exceeds such amount, the sales tax in excess of the
	856	+	authorized amount shall be treated as a direct sales
	857	+	tax liability and may be recovered by the Tax
	858	+	Commission in the same man ner provided by law for
	859	+	other taxes including penalty and interest. The Tax
	860	+	Commission shall promulgate any rules necessary to
	861	+	implement the provisions of this paragraph, which
874	862
875		-	HB1864 HFLR Page 18
876		-	BOLD FACE denotes Committee Amendments. 1
	863	+	Req. No. 11693 Page 18 1
877	864		2
878	865		3
879	866		4
880	867		5
881	868		6
882	869		7
883	870		8
884	871		9
885	872		10
886	873		11
887	874		12
888	875		13
889	876		14
890	877		15
891	878		16
892	879		17
893	880		18
894	881		19
895	882		20
896	883		21
897	884		22
898	885		23
899	886		24
900	887
901		-	authorized amount shall be treated as a direct sales
902		-	tax liability and may be recovered by the Tax
903		-	Commission in the same man ner provided by law for
904		-	other taxes including penalty and interest. The Tax
905		-	Commission shall promulgate any rules necessary to
906		-	implement the provisions of this paragraph, which
907	888		shall include rules providing for the disclosure of
908	889		information about persons eligible for the exemption
909	890		authorized in this paragraph to the Oklahoma
910	891		Department of Veterans Affairs, as authorized in
911	892		Section 205 of this title. For purposes of the
912	893		exemption authorized by this subparagraph, if the
913	894		disability determination that would h ave been made
914	895		while the disabled veteran was still living is not
915	896		made final until after the death of the disabled
916	897		veteran, the exemption authorized by this subparagraph
917	898		may still be claimed by the surviving spouse;
918	899		35. Sales of electricity to the operator, specifically
919	900		designated by the Corporation Commission, of a spacing unit or lease
920	901		from which oil is produced or attempted to be produced using
921	902		enhanced recovery methods includi ng, but not limited to, increased
922	903		pressure in a producing formation through th e use of water or
923	904		saltwater if the electrical usage is associated with and necessary
924	905		for the operation of equipment required to inject or circulate
	906	+	fluids in a producing formatio n for the purpose of forcing oil or
	907	+	petroleum into a wellbore for eventual recovery and production from
	908	+	the wellhead. In order to be eligible for the sales tax exemption
	909	+	authorized by this paragraph, the total content of oil recovered
	910	+	after the use of enh anced recovery methods shall not exceed one
	911	+	percent (1%) by volume. The exemp tion authorized by this paragraph
925	912
926		-	HB1864 HFLR Page 19
927		-	BOLD FACE denotes Committee Amendments. 1
	913	+	Req. No. 11693 Page 19 1
928	914		2
929	915		3
930	916		4
931	917		5
932	918		6
933	919		7
934	920		8
935	921		9
936	922		10
937	923		11
938	924		12
939	925		13
940	926		14
941	927		15
942	928		16
943	929		17
944	930		18
945	931		19
946	932		20
947	933		21
948	934		22
949	935		23
950	936		24
951	937
952		-	fluids in a producing formatio n for the purpose of forcing oil or
953		-	petroleum into a wellbore for eventual recovery and production from
954		-	the wellhead. In order to be eligible for the sales tax exemption
955		-	authorized by this paragraph, the total content of oil recovered
956		-	after the use of enh anced recovery methods shall not exceed one
957		-	percent (1%) by volume. The exemp tion authorized by this paragraph
958	938		shall be applicable only to the state sales tax rate and shall not
959	939		be applicable to any county or municipal sales tax rate;
960	940		36. Sales of intras tate charter and tour bus transportation.
961	941		As used in this paragraph, "intrastate charter and tour bus
962	942		transportation" means the transportation of persons from one
963	943		location in this state to another location in this state in a motor
964	944		vehicle which has been c onstructed in such a manner that it may
965	945		lawfully carry more than eighteen pers ons, and which is ordinarily
966	946		used or rented to carry persons for compensation. Provided, this
967	947		exemption shall not apply to regularly scheduled bus transportation
968	948		for the general public;
969	949		37. Sales of vitamins, minerals, and dietary supplements by a
970	950		licensed chiropractor to a person who is the patient of such
971	951		chiropractor at the physical location where the chiropractor
972	952		provides chiropractic care or services to such patient. The
973	953		provisions of this paragraph shall not be applicable to any drug,
974	954		medicine, or substance for which a prescription by a licensed
975	955		physician is required;
	956	+	38. Sales of goods, wares, merchandise, tangible personal
	957	+	property, machinery, and equipment to a web sea rch portal located in
	958	+	this state which derives at least eighty percent (80%) of its annual
	959	+	gross revenue from the sale of a product or service to an out -of-
	960	+	state buyer or consumer. For purposes of this paragraph, "web
	961	+	search portal" means an establishment classified under NAICS code
976	962
977		-	HB1864 HFLR Page 20
978		-	BOLD FACE denotes Committee Amendments. 1
	963	+	Req. No. 11693 Page 20 1
979	964		2
980	965		3
981	966		4
982	967		5
983	968		6
984	969		7
985	970		8
986	971		9
987	972		10
988	973		11
989	974		12
990	975		13
991	976		14
992	977		15
993	978		16
994	979		17
995	980		18
996	981		19
997	982		20
998	983		21
999	984		22
1000	985		23
1001	986		24
1002	987
1003		-	38. Sales of goods, wares, merchandise, tangible personal
1004		-	property, machinery, and equipment to a web sea rch portal located in
1005		-	this state which derives at least eighty percent (80%) of its annual
1006		-	gross revenue from the sale of a product or service to an ou t-of-
1007		-	state buyer or consumer. For purposes of this paragraph, "web
1008		-	search portal" means an establishment classified under NAICS code
1009	988		519130 which operates websites that use a search engine to generate
1010	989		and maintain extensive databases of Internet addresses and content
1011	990		in an easily searchable format;
1012	991		39. Sales of tangible personal property consumed or
1013	992		incorporated in the construction or expansion of a facility for a
1014	993		corporation organized under Section 437 et seq. of Title 18 of the
1015	994		Oklahoma Statutes as a rural electric cooperative. For purposes of
1016	995		this paragraph, sales made to a contractor or subcontractor th at has
1017	996		previously entered into a contractual relationship with a rural
1018	997		electric cooperative for construction or expansion of a facility
1019	998		shall be considered sales made to a rural electric cooperative;
1020	999		40. Sales of tangible personal property or services to a
1021	1000		business primarily engaged in the repair of consumer electronic
1022	1001		goods including, but not limited to, cell phones, compact disc
1023	1002		players, personal computers, MP3 players, digital devices for the
1024	1003		storage and retrieval of information through hard -wired or wireless
1025	1004		computer or Internet connections, if the devices are sold to the
1026	1005		business by the original manufacturer of such devices and the
	1006	+	devices are repaired, refitted or refurbished for sale by the entity
	1007	+	qualifying for the exemption authorized by this parag raph directly
	1008	+	to retail consumers or if the devices are sold to another business
	1009	+	entity for sale to retail consumers;
	1010	+	41. On or after July 1, 2019, and prior to July 1, 2024, sales
	1011	+	or leases of rolling stock when sold or leased by the manufacturer,
1027	1012
1028		-	HB1864 HFLR Page 21
1029		-	BOLD FACE denotes Committee Amendments. 1
	1013	+	Req. No. 11693 Page 21 1
1030	1014		2
1031	1015		3
1032	1016		4
1033	1017		5
1034	1018		6
1035	1019		7
1036	1020		8
1037	1021		9
1038	1022		10
1039	1023		11
1040	1024		12
1041	1025		13
1042	1026		14
1043	1027		15
1044	1028		16
1045	1029		17
1046	1030		18
1047	1031		19
1048	1032		20
1049	1033		21
1050	1034		22
1051	1035		23
1052	1036		24
1053	1037
1054		-	devices are repaired, refitted or refurbished for sale by the entity
1055		-	qualifying for the exemption authorized by this parag raph directly
1056		-	to retail consumers or if the devices are sold to another business
1057		-	entity for sale to retail consumers;
1058		-	41. On or after July 1, 2019, an d prior to July 1, 2024, sales
1059		-	or leases of rolling stock when sold or leased by the manufacturer,
1060	1038		regardless of whether the purchaser is a public services corporation
1061	1039		engaged in business as a common carrier of property or passengers by
1062	1040		railway, for use or consumption by a common carrier directly in the
1063	1041		rendition of public service. For purposes of this parag raph,
1064	1042		"rolling stock" means locomotives, autocars, and railroad cars and
1065	1043		"sales or leases" includes railroad car maintenance and retrofitting
1066	1044		of railroad cars for their further use only on the railways;
1067	1045		42. Sales of gold, silver, platinum, palladium or ot her bullion
1068	1046		items such as coins and bars and legal tender of any nation, which
1069	1047		legal tender is sold according to its value as precious metal or as
1070	1048		an investment. As used in the paragraph, "bullion" means any
1071	1049		precious metal including, but not limited to, g old, silver,
1072	1050		platinum, and palladium, that is in such a state or condition that
1073	1051		its value depends upon its precious metal content and not its form.
1074	1052		The exemption authorized by this paragraph shall not apply to
1075	1053		fabricated metals that have been processed or manufactured for
1076	1054		artistic use or as jewelry; and
1077		-
1078		-	HB1864 HFLR Page 22
1079		-	BOLD FACE denotes Committee Amendments. 1
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1103		-
1104	1055		43. Recovery fees on the re ntal charge from any item of heavy
1105	1056		equipment property rental as provided for in Section 2 of this act.
1106	1057		SECTION 2. This act shall become effective November 1, 202 5.
1107	1058
1108		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
1109		-	03/05/2025 - DO PASS, As Amended and Coauthored.
	1059	+	60-1-11693 AO 12/27/24