OK
Oklahoma House Bill HB1972

Oklahoma 2025 Regular Session

Oklahoma House Bill HB1972 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 60th Legislature (2025)
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3232 HOUSE BILL 1972 By: Williams
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3838 AS INTRODUCED
3939
4040 An Act relating to revenue and taxation; amending 68
4141 O.S. 2021, Section 1357, as last amended by Section
4242 4, Chapter 363, O.S.L. 2024 (6 8 O.S. Supp. 2024,
4343 Section 1357), which relates to sales tax exemptions;
4444 exempting sales of tangible personal property and
4545 services to all disabled veterans; amending 68 O.S.
4646 2021, Section 2359, which relates to organizations
4747 exempted from income taxation; modifying exempted
4848 organizations to include all disabled veterans; and
4949 providing an effective date .
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5656 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5757 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
5858 last amended by Section 4, Chapter 363, O.S.L. 2024 (68 O.S. Supp.
5959 2024, Section 1357), is amended to read as follows:
6060 Section 1357. Exemptions – General.
6161
6262 There are hereby specifically exempted from the tax levied by
6363 the Oklahoma Sales Tax Code:
6464 1. Transportation of school pupils to and from elementary
6565 schools or high schools in motor or other vehicles;
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9292 2. Transportation of persons where the fare of each person does
9393 not exceed One Dollar ($1.00), or local transportation of persons
9494 within the corporate limits of a municipality except by taxicabs;
9595 3. Sales for resale to persons engaged in the business of
9696 reselling the articles purchased, whether within or without the
9797 state, provided that such sales to residents of this state are made
9898 to persons to whom sales tax p ermits have been issued as provided in
9999 the Oklahoma Sales Tax Code. This exem ption shall not apply to the
100100 sales of articles made to persons holding permits when such persons
101101 purchase items for their use and which they are not regularly
102102 engaged in the business of reselling; neither shall this exemption
103103 apply to sales of tangible personal property to peddlers, solicitors
104104 and other salespersons who do not have an established place of
105105 business and a sales tax permit. The exemption provided by this
106106 paragraph shall apply to sales of motor fuel or diesel fuel to a
107107 Group Five vendor, but t he use of such motor fuel or diesel fuel by
108108 the Group Five vendor shall not be exempt from the tax levied by the
109109 Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fu el
110110 is exempt from sales tax when the motor fuel is for shipment outside
111111 this state and consumed by a common carrier by rail in the conduct
112112 of its business. The sales tax shall apply to the purchase of motor
113113 fuel or diesel fuel in Oklahoma by a common carr ier by rail when
114114 such motor fuel is purchased for fueling, within this state, of any
115115 locomotive or other motorized flanged wheel equipment;
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142142 4. Sales of advertising space in newspapers and periodicals;
143143 5. Sales of programs relating to sporting and enterta inment
144144 events, and sales of advertising on billboards (including signage,
145145 posters, panels, marquees or on other similar surfaces, whether
146146 indoors or outdoors) or in programs relating to sporting and
147147 entertainment events, and sales of any advertising, to be displayed
148148 at or in connection with a sporting event, via the Internet,
149149 electronic display devices or through public address or broadcast
150150 systems. The exemption authorized by this paragraph shall be
151151 effective for all sales made on or after January 1, 2001 ;
152152 6. Sales of any advertising, other than the advertising
153153 described by paragraph 5 of this section, via the Internet,
154154 electronic display devices or through the electronic media including
155155 radio, public address or broadcast systems, television (whether
156156 through closed circuit broadcasting systems or otherwise), and cable
157157 and satellite television, and the servicing of any advertising
158158 devices;
159159 7. Eggs, feed, supplies, machinery, and equipment purchased by
160160 persons regularly engaged in the business of raising wo rms, fish,
161161 any insect, or any other form of terrestrial or aquatic animal life
162162 and used for the purpose of raising same for marketing. This
163163 exemption shall only be granted and extended to the purchaser when
164164 the items are to be used and in fact are used in the raising of
165165 animal life as set out above. Each purchaser shall certify, i n
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192192 writing, on the invoice or sales ticket retained by the vendor that
193193 the purchaser is regularly engaged in the business of raising such
194194 animal life and that the items purchased will be used only in such
195195 business. The vendor shall certify to the Oklahoma Tax Commission
196196 that the price of the items has been reduced to grant the full
197197 benefit of the exemption. Violation hereof by the purchaser or
198198 vendor shall be a misdemeanor;
199199 8. Sale of natural or artificial gas and electricity, and
200200 associated delivery or t ransmission services, when sold exclusively
201201 for residential use. Provided, this exemption shall not apply to
202202 any sales tax levied by a city or town, or a county or any other
203203 jurisdiction in this state;
204204 9. In addition to the exemptions authorized by Section 1357.6
205205 of this title, sales of drugs sold pursuant to a prescription
206206 written for the treatment of human beings by a person licensed to
207207 prescribe the drugs, and sales of insuli n and medical oxygen.
208208 Provided, this exemption shall not apply to over -the-counter drugs;
209209 10. Transfers of title or possession of empty, partially
210210 filled, or filled returnable oil and chemical drums to any person
211211 who is not regularly engaged in the busin ess of selling, reselling
212212 or otherwise transferring empty, partially filled or filled
213213 returnable oil drums;
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240240 11. Sales of one-way utensils, paper napkins, paper cups,
241241 disposable hot containers, and other one -way carry out materials to
242242 a vendor of meals or beverages;
243243 12. Sales of food or food products for home consumption which
244244 are purchased in whole or in part with coupons issued pursuant to
245245 the federal food stamp program as authorized by Sections 2011
246246 through 2029 of Title 7 of the United States Code, as to that
247247 portion purchased with such coupons. The exemption provided for
248248 such sales shall be inapplicable to such sales upon the effective
249249 date of any federal law that removes the requirement of the
250250 exemption as a condition for participation by the state i n the
251251 federal food stamp program;
252252 13. Sales of food or food products, or any equipment or
253253 supplies used in the preparation of the food or food products to or
254254 by an organization which:
255255 a. is exempt from taxation pursuant to the provisions of
256256 Section 501(c)(3) of the Internal Revenue Code, 26
257257 U.S.C., Section 501(c)(3), and which provides and
258258 delivers prepared meals for home consumption to
259259 elderly or homebound persons as part of a program
260260 commonly known as "Meals on Wheels" or "Mobile Meals",
261261 or
262262 b. is exempt from taxation pursuant to the provisions of
263263 Section 501(c)(3) of the Internal Revenue Code, 26
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290290 U.S.C., Section 501(c)(3), and which receives federal
291291 funding pursuant to the Older Americans Act of 1965,
292292 as amended, for the purpose of providing nutrition
293293 programs for the care and benefit of elderly persons;
294294 14. a. Sales of tangible personal property or services to or
295295 by organizations which are exempt from taxation
296296 pursuant to the provisions of Section 501(c)(3) of the
297297 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
298298 and:
299299 (1) are primarily involved in the collection and
300300 distribution of food and other household products
301301 to other organizations that facilitate the
302302 distribution of such products to the needy and
303303 such distributee organizations are exempt from
304304 taxation pursuant to the provisions of Section
305305 501(c)(3) of the Internal Revenue Code, 26
306306 U.S.C., Section 501(c)(3), or
307307 (2) facilitate the distribution of such products to
308308 the needy.
309309 b. Sales made in the course of business for profit or
310310 savings, competing wit h other persons engaged in the
311311 same or similar business shall not be exempt un der
312312 this paragraph;
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339339 15. Sales of tangible personal property or services to
340340 children's homes which are located on church -owned property and are
341341 operated by organizations exempt f rom taxation pursuant to the
342342 provisions of the Internal Revenue Code, 26 U.S.C., Section
343343 501(c)(3);
344344 16. Sales of computers, data processing equipment, related
345345 peripherals, and telephone, telegraph or telecommunications service
346346 and equipment for use in a q ualified aircraft maintenance or
347347 manufacturing facility. For purposes of this paragraph, "qualified
348348 aircraft maintenance or manufacturing facility " means a new or
349349 expanding facility primarily engaged in aircraft repair, building or
350350 rebuilding whether or n ot on a factory basis, whose total cost of
351351 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
352352 and which employs at least two hundred fifty (250) new full -time-
353353 equivalent employees, as certified by the Oklahoma Employment
354354 Security Commission, upon completion of the facility. In order to
355355 qualify for the exemption pr ovided for by this paragraph, the cost
356356 of the items purchased by the qualified aircraft maintenance or
357357 manufacturing facility shall equal or exceed the sum of Two Million
358358 Dollars ($2,000,000.00);
359359 17. Sales of tangible personal property consumed or
360360 incorporated in the construction or expansion of a qualified
361361 aircraft maintenance or manufacturing facility as defined in
362362 paragraph 16 of this section. For purposes of this paragraph, sales
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389389 made to a contractor or subcontractor that has previously entered
390390 into a contractual relationship with a qualified aircraft
391391 maintenance or manufacturing facility for construction or expansion
392392 of such a facility shall be considered sales made to a qua lified
393393 aircraft maintenance or manufacturing facility;
394394 18. Sales of the following telecommunications services:
395395 a. Interstate and International "800 service". "800
396396 service" means a telecommunications service that
397397 allows a caller to dial a toll -free number without
398398 incurring a charge for the call. The service is
399399 typically marketed u nder the name "800", "855", "866",
400400 "877" and "888" toll-free calling, and any subsequent
401401 numbers designated by the Federal Communications
402402 Commission,
403403 b. Interstate and Internatio nal "900 service". "900
404404 service" means an inbound toll telecommunications
405405 service purchased by a subscriber that allows the
406406 subscriber's customers to call in to the subscriber 's
407407 prerecorded announcement or live service. 900 service
408408 does not include the c harge for: collection services
409409 provided by the seller of the telecommunicatio ns
410410 services to the subscriber, or service or product sold
411411 by the subscriber to the subscriber 's customer. The
412412 service is typically marketed under the name "900"
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439439 service, and any subsequent numbers designated by the
440440 Federal Communications Commission,
441441 c. Interstate and International "private communications
442442 service". "Private communications service " means a
443443 telecommunications service that entitles the customer
444444 to exclusive or prior ity use of a communications
445445 channel or group of channels between or among
446446 termination points, regardless of the manner in which
447447 such channel or channels are connected, and includes
448448 switching capacity, extension lines, stations and any
449449 other associated serv ices that are provided in
450450 connection with the use of such channel or channels,
451451 d. "Value-added nonvoice data service ". "Value-added
452452 nonvoice data service " means a service that otherwise
453453 meets the definition of telecommunications services in
454454 which computer processing applications are used to act
455455 on the form, content, code or protoco l of the
456456 information or data primarily for a purpose other than
457457 transmission, conveyance, or routing,
458458 e. Interstate and International telecommunications
459459 service which is:
460460 (1) rendered by a company for private use within its
461461 organization, or
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488488 (2) used, allocated or distributed by a company to
489489 its affiliated group,
490490 f. Regulatory assessments and charges including charges
491491 to fund the Oklahoma Universal Service Fund, the
492492 Oklahoma Lifeline Fund and the Oklahoma High Cost
493493 Fund, and
494494 g. Telecommunications nonrecurrin g charges including but
495495 not limited to the installation, connection, change,
496496 or initiation of telecommunications services which are
497497 not associated with a retail consumer sale;
498498 19. Sales of railroad track spikes manufactured and sold for
499499 use in this state in the construction or repair of railroad tracks,
500500 switches, sidings, and turnouts;
501501 20. Sales of aircraft and aircraft parts provided such sales
502502 occur at a qualified aircraft mai ntenance facility. As used in this
503503 paragraph, "qualified aircraft maintenance facility" means a
504504 facility operated by an air common carrier including one or more
505505 component overhaul support buildings or structures in an area owned,
506506 leased, or controlled by the air common carrier, at which there were
507507 employed at least two thousand (2,000) full -time-equivalent
508508 employees in the preceding year as certified by the Oklahoma
509509 Employment Security Commission and which is primarily related to the
510510 fabrication, repair, a lteration, modification, refurbishing,
511511 maintenance, building, or rebuilding of commercial aircraft or
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538538 aircraft parts used in air common carriage. For purposes of this
539539 paragraph, "air common carrier" shall also include members of an
540540 affiliated group as def ined by Section 1504 of the Internal Revenue
541541 Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
542542 machinery, tools, supplies, equipment, and related tangible personal
543543 property and services used or consumed in the repair, remodeling, or
544544 maintenance of aircraft, aircraft engines or aircraft component
545545 parts which occur at a qualified aircraft maintenance facility;
546546 21. Sales of machinery and equipment purchased and used by
547547 persons and establishments primarily engaged in computer services
548548 and data processing:
549549 a. as defined under Industry Group Numbers 7372 and 7373
550550 of the Standard Industrial Classification (SIC)
551551 Manual, latest version, which derive at least fifty
552552 percent (50%) of their annual gross revenues from the
553553 sale of a product or service to an out-of-state buyer
554554 or consumer, and
555555 b. as defined under Industry Group Number 7374 of the SIC
556556 Manual, latest version, which derive at least eighty
557557 percent (80%) of their annual gross revenues from the
558558 sale of a product or service to an out -of-state buyer
559559 or consumer.
560560 Eligibility for the exemption set out in this paragraph shall be
561561 established, subject to review by the Tax Commission, by annually
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588588 filing an affidavit with the Tax Commission stating that the
589589 facility so qualifies and such information as requi red by the Tax
590590 Commission. For purposes of determining whether annual gross
591591 revenues are derived from sales to out -of-state buyers or consumers,
592592 all sales to the federal government shall be considered to be to an
593593 out-of-state buyer or consumer;
594594 22. Sales of prosthetic devices to an individual for use by
595595 such individual. For purposes of this paragraph, "prosthetic
596596 device" shall have the same meaning as provided in Section 1357.6 of
597597 this title, but shall not include corrective eye glasses, contact
598598 lenses, or hearing aids;
599599 23. Sales of tangible personal property or services to a mot ion
600600 picture or television production company to be used or consumed in
601601 connection with an eligible production. For purposes of this
602602 paragraph, "eligible production" means a documentary, special, music
603603 video or a television commercial or television program that will
604604 serve as a pilot for or be a segment of an ongoing dramatic or
605605 situation comedy series filmed or taped for network or national or
606606 regional syndication or a feature -length motion picture intended for
607607 theatrical release or for network or national or regional
608608 syndication or broadcast. The provisions of this paragraph shall
609609 apply to sales occurring on or after July 1, 1996. In order to
610610 qualify for the exemption, the motio n picture or television
611611 production company shall file any documentation and information
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638638 required to be submitted pursuant to rules promulgated by the Tax
639639 Commission;
640640 24. Sales of diesel fuel sold for consumption by commercial
641641 vessels, barges and other com mercial watercraft;
642642 25. Sales of tangible personal property or services to ta x-
643643 exempt independent nonprofit biomedical research foundations that
644644 provide educational programs for Oklahoma science students and
645645 teachers and to tax-exempt independent nonprofi t community blood
646646 banks headquartered in this state;
647647 26. Effective May 6, 1992, sales of wireless telecommunications
648648 equipment to a vendor who subsequently transfers the equipment at no
649649 charge or for a discounted charge to a consumer as part of a
650650 promotional package or as an inducement to commence or continue a
651651 contract for wireles s telecommunications services;
652652 27. Effective January 1, 1991, leases of rail transportation
653653 cars to haul coal to coal -fired plants located in this state which
654654 generate electric power;
655655 28. Beginning July 1, 2005, sales of aircraft engine repairs,
656656 modification, and replacement parts, sales of aircraft frame repairs
657657 and modification, aircraft interior modification, and paint, and
658658 sales of services employed in the repair, modificati on, and
659659 replacement of parts of aircraft engines, aircraft frame and
660660 interior repair and modification, and paint;
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687687 29. Sales of materials and supplies to the owner or operator of
688688 a ship, motor vessel, or barge that is used in interstate or
689689 international commerce if the materials and supplies:
690690 a. are loaded on the ship, motor vessel, or barge and
691691 used in the maintenance and operation of the ship,
692692 motor vessel, or barge, or
693693 b. enter into and become component parts of the ship,
694694 motor vessel, or barge;
695695 30. Sales of tangible personal property made at estate sales at
696696 which such property i s offered for sale on the premises of the
697697 former residence of the decedent by a person who is not required to
698698 be licensed pursuant to the Transient Merchant Licensing Act, or who
699699 is not otherwise required to obtain a sales tax permit for the sale
700700 of such property pursuant to the provisions of Section 1364 of this
701701 title; provided:
702702 a. such sale or event may not be held for a period
703703 exceeding three (3) consecutive days,
704704 b. the sale must be conducted within six (6) months of
705705 the date of death of the decedent, a nd
706706 c. the exemption allowed by this paragraph shall not be
707707 allowed for property that was not part of the
708708 decedent's estate;
709709 31. Beginning January 1, 2004, sales of electricity a nd
710710 associated delivery and transmission services, when sold exclusively
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737737 for use by an oil and gas operator for reservoir dewatering projects
738738 and associated operations commencing on or after July 1, 2003, in
739739 which the initial water -to-oil ratio is greater t han or equal to
740740 five-to-one water-to-oil, and such oil and gas development pro jects
741741 have been classified by the Corporation Commission as a reservoir
742742 dewatering unit;
743743 32. Sales of prewritten computer software that is delivered
744744 electronically. For purpose s of this paragraph, "delivered
745745 electronically" means delivered to the purchaser by means other than
746746 tangible storage media;
747747 33. Sales of modular dwelling units when built at a production
748748 facility and moved in whole or in parts, to be assembled on -site,
749749 and permanently affixed to the real property and used for
750750 residential or commer cial purposes. The exemption provided by this
751751 paragraph shall equal forty -five percent (45%) of the total sales
752752 price of the modular dwelling unit. For purposes of this paragra ph,
753753 "modular dwelling unit " means a structure that is not subject to the
754754 motor vehicle excise tax imposed pursuant to Section 2103 of this
755755 title;
756756 34. Sales of tangible personal property or services to:
757757 a. persons who are residents of Oklahoma and have bee n
758758 honorably discharged from active service in any branch
759759 of the Armed Forces o f the United States or Oklahoma
760760 National Guard and who have been certified by the
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787787 United States Department of Veterans Affairs or its
788788 successor to be in receipt of disability com pensation
789789 at the one-hundred-percent rate and the disability
790790 shall be permanent and have been sustained through
791791 military action or accident or resulting from disease
792792 contracted while in such active service and registered
793793 with the veterans registry created by the Oklahoma
794794 Department of Veterans Affairs, or
795795 b. the surviving spouse of the person in subparagraph a
796796 of this paragraph if the person is deceased and the
797797 spouse has not remarried and the surviving spouse of a
798798 person who is determined by the United Sta tes
799799 Department of Defense or any branch of the United
800800 States military to have died while in the line of duty
801801 if the spouse has not remarried. Sales for the
802802 benefit of an eligible person to a spouse of the
803803 eligible person or to a member of the household in
804804 which the eligible person resides and who is
805805 authorized to make purchases on the person's behalf,
806806 when such eligible person is not present at the sale,
807807 shall also be exempt for purposes of this paragraph.
808808 The Oklahoma Tax Commission shall issue a separat e
809809 exemption card to a spouse of an eligible person or to
810810 a member of the household in which the eligible person
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837837 resides who is authorized to make purchases on the
838838 person's behalf, if requested by the eligible person.
839839 Sales qualifying for the exemption aut horized by this
840840 paragraph shall not exceed Twenty -five Thousand
841841 Dollars ($25,000.00) per year per individual while the
842842 disabled veteran is living. Sales qualifying for the
843843 exemption authorized by this paragraph shall not
844844 exceed One Thousand Dollars ($1,00 0.00) per year for
845845 an unremarried surviving spouse. Upon request of the
846846 Tax Commission, a person asserting or claiming the
847847 exemption authorized by this paragraph shall provide a
848848 statement, executed under oath, that the total sales
849849 amounts for which the ex emption is applicable have not
850850 exceeded Twenty-five Thousand Dollars ($25,000. 00) per
851851 year per living disabled veteran or One Thousand
852852 Dollars ($1,000.00) per year for an unremarried
853853 surviving spouse. If the amount of such exempt sales
854854 exceeds such amount, the sales tax in excess of the
855855 authorized amount shall be treated as a direct sales
856856 tax liability and may be recovered by the Tax
857857 Commission in the same manner provided by law for
858858 other taxes including penalty and interest. The Tax
859859 Commission shall prom ulgate any rules necessary to
860860 implement the provisions of this paragraph, whic h
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887887 shall include rules providing for the disclosure of
888888 information about persons eligible for the exemption
889889 authorized in this paragraph to the Oklahoma
890890 Department of Veterans Aff airs, as authorized in
891891 Section 205 of this title. For purposes of the
892892 exemption authorized by this subparagraph, if the
893893 disability determination that would have been made
894894 while the disabled veteran was still living is not
895895 made final until after the death of the disabled
896896 veteran, the exemption authorized by this subparagraph
897897 may still be claimed by the surviving spouse;
898898 35. Sales of electricity to the operator, specifically
899899 designated by the Corporation Commission, of a spacing unit or lease
900900 from which oil is produced or attempted to be produced using
901901 enhanced recovery methods including, but not limited to, increased
902902 pressure in a producing formation through the use of water or
903903 saltwater if the electrical usage is associated with and necessary
904904 for the operation of equipment required to inject or circulate
905905 fluids in a producing format ion for the purpose of forcing oil or
906906 petroleum into a wellbore for eventual recovery and production from
907907 the wellhead. In order to be eligible for the sales tax exemption
908908 authorized by this paragraph, the total content of oil recovered
909909 after the use of enhanced recovery methods shall not exceed one
910910 percent (1%) by volume. The exemption authorized by this paragraph
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937937 shall be applicable only to the state sales tax rate and shall n ot
938938 be applicable to any county or municipal sales tax rate;
939939 36. Sales of intrastate charter and tour bus transportation.
940940 As used in this paragraph, "intrastate charter and tour bus
941941 transportation" means the transportation of persons from one
942942 location in this state to another location in this state in a motor
943943 vehicle which has been constructed in such a manner that it may
944944 lawfully carry more than eighteen persons, and which is ordinarily
945945 used or rented to carry persons for compensation. Provided, this
946946 exemption shall not apply to regularly scheduled bus transportation
947947 for the general public;
948948 37. Sales of vitamins, minerals, and dietary supplements by a
949949 licensed chiropractor to a person who is the patient of such
950950 chiropractor at the physical location where the chiropractor
951951 provides chiropractic care or services to such patient. The
952952 provisions of this paragraph shall not be applicable to any drug,
953953 medicine, or substance for which a prescription by a licensed
954954 physician is required;
955955 38. Sales of goods, wares , merchandise, tangible personal
956956 property, machinery, and equipment to a web s earch portal located in
957957 this state which derives at least eighty percent (80%) of its annual
958958 gross revenue from the sale of a product or service to an out -of-
959959 state buyer or consu mer. For purposes of this paragraph, "web
960960 search portal" means an establishment classified under NAICS code
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987987 519130 which operates websites that use a search engine to generate
988988 and maintain extensive databases of Internet addresses and content
989989 in an easily searchable format;
990990 39. Sales of tangible personal property consumed or
991991 incorporated in the construction or expansion of a facility for a
992992 corporation organized under Section 437 et seq. of Title 18 of the
993993 Oklahoma Statutes as a rural electric cooperative. For purposes of
994994 this paragraph, sales made to a contractor or subcontractor that has
995995 previously entered into a contractual relationship with a rural
996996 electric cooperative for construction or expansion of a facility
997997 shall be considered sales made to a rura l electric cooperative;
998998 40. Sales of tangible personal property or services t o a
999999 business primarily engaged in the repair of consumer electronic
10001000 goods including, but not limited to, cell phones, compact disc
10011001 players, personal computers, MP3 players, digit al devices for the
10021002 storage and retrieval of information through hard -wired or wireless
10031003 computer or Internet connections, if the devices are sold to the
10041004 business by the original manufacturer of such devices and the
10051005 devices are repaired, refitted or refurbis hed for sale by the entity
10061006 qualifying for the exemption authorized by this par agraph directly
10071007 to retail consumers or if the devices are sold to another business
10081008 entity for sale to retail consumers;
10091009 41. On or after July 1, 2019, and prior to July 1, 2024, sales
10101010 or leases of rolling stock when sold or leased by the manufacturer,
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10371037 regardless of whether the purchaser is a public services corporation
10381038 engaged in business as a common carrier of property or passengers by
10391039 railway, for use or consumption by a common carrier directly in the
10401040 rendition of public service. For purposes of this par agraph,
10411041 "rolling stock" means locomotives, autocars, and railroad cars and
10421042 "sales or leases" includes railroad car maintenance and retrofitting
10431043 of railroad cars for their further use only on the railways;
10441044 42. Sales of gold, silver, platinum, palladium or other bullion
10451045 items such as coins and bars and legal tender of any nation, which
10461046 legal tender is sold according to its value as precious metal or as
10471047 an investment. As used in th e paragraph, "bullion" means any
10481048 precious metal including, but not limited to, gold, silver,
10491049 platinum, and palladium, that is in such a state or condition that
10501050 its value depends upon its precious metal content and not its form.
10511051 The exemption authorized by this paragraph shall not apply to
10521052 fabricated metals that have been processed or manufactured for
10531053 artistic use or as jewelry; and
10541054 43. Recovery fees on the rental charge from any item of heavy
10551055 equipment property rental as provided for in Section 2 of this act
10561056 Section 2807.11 of this title .
10571057 SECTION 2. AMENDATORY 68 O.S. 2021, Section 2359, is
10581058 amended to read as follows:
10591059 Section 2359. A. A person or organization exempt from federal
10601060 income taxation under the provisions of the Intern al Revenue Code
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10871087 shall also be exempt from the tax imposed by Section 2351 et seq. of
10881088 this title in each year in which such person or organization
10891089 satisfies the requirements of the Internal Revenue Code for
10901090 exemption from federal income taxation. If the ex emption applicable
10911091 to any person or organization under the provisions of the I nternal
10921092 Revenue Code is limited or qualified in any manner, the exemption
10931093 from taxes imposed by this article shall be limited or qualified in
10941094 a similar manner.
10951095 B. Notwithstanding the provisions of subsection A of this
10961096 section, the unrelated business taxable income or other income
10971097 subject to tax, as computed under the provisions of the Internal
10981098 Revenue Code, of any person or organization exempt from the tax
10991099 imposed by Section 2351 et seq. of this title and subject to the tax
11001100 imposed on such income by the In ternal Revenue Code shall be subject
11011101 to the tax which would have been imposed by this act but for the
11021102 provisions of subsection A of this section.
11031103 C. Insurance companies paying, during or for the taxable year,
11041104 a tax to this state on gross premium income shall be exempt from the
11051105 provisions of this article and the taxes levied thereby.
11061106 D. Royalty earned by an inventor from products developed and
11071107 manufactured in this state shall be exempt from the tax imposed by
11081108 Section 2355 of this title for a seven -year period, pursuant to the
11091109 provisions of Section 5064.7 of Title 74 of the Oklahoma Statutes.
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11361136 E. Tenants of small business incubators shall be exempt for the
11371137 tax imposed by Section 23 55 of this title, pursuant to the
11381138 provisions of Section 5078 of Title 74 of the Oklahoma Statutes.
11391139 F. All persons who are residents of Oklahoma and have been
11401140 honorably discharged from active service in any branch of the Armed
11411141 Forces of the United States o r Oklahoma National Guard and who have
11421142 been certified by the United States Dep artment of Veterans Affairs
11431143 or its successor to be in receipt of disability compensation and the
11441144 disability shall be permanent and have been sustained through
11451145 military action or accident or resulting from disease contracted
11461146 while in such active service and registered with the veterans
11471147 registry created by the Oklahoma Department of Veterans Affairs
11481148 shall be exempt from the tax imposed by Section 2355 of this title.
11491149 SECTION 3. This act shall become effective November 1, 2025.
11501150
11511151 60-1-10863 AO 01/14/25