Oklahoma 2025 Regular Session

Oklahoma House Bill HB2742 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	HB2742 HFLR Page 1
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	3	+	Req. No. 12962 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	32		COMMITTEE SUBSTITUTE
36	33		FOR
37		-	HOUSE BILL NO. 2742 By: Caldwell (Trey) and Lawson
38		-	of the House
39		-
40		-	and
41		-
42		-	Paxton of the Senate
	34	+	HOUSE BILL NO. 2742 By: Caldwell (Trey)
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47	39
48	40		COMMITTEE SUBSTITUTE
49	41
50	42		[ cigarettes – taxes – definition – exemption –
51	43		stamps – reference – effective date -
52	44		emergency ]
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57	49		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
58	50		SECTION 1. AMENDATORY 68 O.S. 2021, Section 301, is
59	51		amended to read as follows:
60	52		Section 301. For purposes of Section 301 et seq. of this title:
61	53		1. The term "cigarette" is defined to mean and include all
62	54		rolled tobacco or any substitute therefor, wrapped in paper or any
63	55		substitute therefor, intended to be heated or burned, and weighing
64	56		not to exceed three (3) pounds per thousand cig arettes;
	57	+	2. The term "person" is defined to mean and include any
	58	+	individual, company, partnership, joint venture, joint agreement,
	59	+	association (mutual or otherwise), limited liability company,
	60	+	corporation, estate, trust, business trust receiver, or truste e
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66		-	HB2742 HFLR Page 2
67		-	BOLD FACE denotes Committee Amendments. 1
	62	+	Req. No. 12962 Page 2 1
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92		-	2. The term "person" is defined to mean and include any
93		-	individual, company, partnership, joint venture, joint agreement,
94		-	association (mutual or ot herwise), limited liability company,
95		-	corporation, estate, trust, business trust receiver, or truste e
96	87		appointed by any state or federal court, or otherwise, syndicate, or
97	88		any political subdivision of the state or combination acting as a
98	89		unit, in the plural or singular number;
99	90		3. The term "wholesaler", "distributor" and/or "jobber" is
100	91		defined to mean and include a person, firm or corporation organized
101	92		and existing, or doing business, primarily to sell cigarettes to,
102	93		and render service to retailers in the territory such person, firm
103	94		or corporation chooses to serve, and that:
104	95		a. purchases cigarettes directl y from the manufacturer,
105	96		b. at least seventy-five percent (75%) of whose gross
106	97		sales are made at wholesale,
107	98		c. handles goods in wholesale quantities and sells
108	99		through salespersons, advertising and/or sales
109	100		promotion devices,
110	101		d. carries at all times at its principal place of
111	102		business a representative stock of cigarettes for
112	103		sale, and
113	104		e. comes into the possession of cigarettes for the
114	105		purpose of selling them to retailers or to persons
	106	+	outside or within the state who might resell or retail
	107	+	such cigarettes to c onsumers.
	108	+	In addition to the foregoing, and irrespective of the percentage
	109	+	or type of sales, the term "wholesaler", "distributor" and/or
	110	+	"jobber" shall also include all purchasers of cigarettes making
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116		-	HB2742 HFLR Page 3
117		-	BOLD FACE denotes Committee Amendments. 1
	112	+	Req. No. 12962 Page 3 1
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142		-	outside or within the state who might resell or retail
143		-	such cigarettes to c onsumers.
144		-	In addition to the foregoing, and irrespective of the percentage
145		-	or type of sales, the term "wholesaler", "distributor" and/or
146		-	"jobber" shall also include all purchasers of cigarettes making
147	137		purchases directly from the manufacturer for distributi on at
148	138		wholesale or retail sale and this shall not affect the requirements
149	139		relating to retail licenses;
150	140		4. The term "retailer" is defined to be:
151	141		a. a person who comes into the possession of cigarettes
152	142		for the purpose of selling, or who sells them at
153	143		retail, or
154	144		b. a person, not coming within the classification of
155	145		wholesaler, distributor and/or jobber as herein
156	146		defined, having possession of more than one thousand
157	147		cigarettes;
158	148		5. The term "consumer" is defined to be a person who receives
159	149		or who in any way come s into possession of cigarettes for the
160	150		purpose of consuming them, giving them away, or disposing of them in
161	151		a way other than by sale, barter or exchange;
162	152		6. The term "Tax Commission" is defined to mean the Oklahoma
163	153		Tax Commission;
164	154		7. The term "sale" and/or "sales" is hereby defined to be and
165	155		declared to include sales, barters, exchanges and every other
	156	+	manner, method and form of transferring the ownership of personal
	157	+	property from one person to another, and is also declared to be the
	158	+	use or consumption i n this state in the first instance of cigarettes
	159	+	received from without the state or of any other cigarettes upon
	160	+	which the tax has not been paid. The term "first sale" shall mean
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167		-	HB2742 HFLR Page 4
168		-	BOLD FACE denotes Committee Amendments. 1
	162	+	Req. No. 12962 Page 4 1
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193		-	manner, method and form of transferring the ownership o f personal
194		-	property from one person to another, and is also declared to be the
195		-	use or consumption i n this state in the first instance of cigarettes
196		-	received from without the state or of any other cigarettes upon
197		-	which the tax has not been paid. The term "first sale" shall mean
198	187		and include the first sale or distribution of cigarettes in
199	188		intrastate commerce or the first use or consumption of cigarettes
200	189		within this state;
201	190		8. The term "stamp" as herein used shall mean the stamp or
202	191		stamps by use of which:
203	192		a. the tax levied pursuant to the provisions of Section
204	193		301 et seq. of this title is paid,
205	194		b. the tax levied pursuant to the provisions of Section
206	195		349 of this title is paid, or
207	196		c. the payment in lieu of taxes authorized pursuant to a
208	197		compact entered into by the State of Oklahoma and a
209	198		federally recognized Indian tribe or nation pursuant
210	199		to the provisions of subsection C of Section 346 of
211	200		this title is paid;
212	201		9. The term "drop shipment" shall mean and include any delivery
213	202		of cigarettes received by any person within this state when payment
214	203		for such cigarettes is made to the shipper or seller by or through a
215	204		person other than the consignee;
	205	+	10. The term "distributing agent" shall mean and include every
	206	+	person in this state who acts as an agent of any person outside the
	207	+	state by receiving cigarettes in interstate commerce and storing
	208	+	such cigarettes subject to d istribution or delivery upon order from
	209	+	the person outside the state to distributors, wholesale dealers and
	210	+	retail dealers, or to consumers. The term "distributing agent"
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217		-	HB2742 HFLR Page 5
218		-	BOLD FACE denotes Committee Amendments. 1
	212	+	Req. No. 12962 Page 5 1
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243		-	10. The term "distributing agent" shall mean and include every
244		-	person in this state who acts as an agent of any person outsid e the
245		-	state by receiving cigarettes in interstate commerce and storing
246		-	such cigarettes subject to d istribution or delivery upon order from
247		-	the person outside the state to distributors, wholesale dealers and
248		-	retail dealers, or to consumers. The term "distributing agent"
249	237		shall also mean and include any person who solicits or takes orders
250	238		for cigarettes to be shipped in interstate commerce to a person in
251	239		this state by a person residing outside of Oklahoma, the tax not
252	240		having been paid on such cigarettes;
253	241		11. The term "vending machine" shall mean and include any coin
254	242		operating machine, contrivance, or devi ce, by means of which
255	243		cigarettes are sold or dispensed in their original container;
256	244		12. The term "use" means and includes the exercise of any right
257	245		or power over cigarettes incident to the ownership or possession
258	246		thereof, except that it shall not include the sale of cigarettes in
259	247		the regular course of business;
260	248		13. a. The term "delivery sale" means any sale of cigarettes
261	249		to a consumer in Oklahoma where either:
262	250		(1) the purchaser submits the order for such sale by
263	251		means of a telephonic or other method of vo ice
264	252		transmission, the mails or any other delivery
265	253		service, or the Internet or other online service,
266	254		or
	255	+	(2) the cigarettes are delivered by use of the mails
	256	+	or other delivery service.
	257	+	b. A sale of cigarettes which satisfies the criteria in
	258	+	subparagraph a of this paragraph shall be a delivery
	259	+	sale regardless of whether the seller is located
	260	+	within or outside of Oklahoma.
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268		-	HB2742 HFLR Page 6
269		-	BOLD FACE denotes Committee Amendments. 1
	262	+	Req. No. 12962 Page 6 1
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294		-	(2) the cigarettes are delivered by use of the mails
295		-	or other delivery service.
296		-	b. A sale of cigarettes which satisfies the criteria in
297		-	subparagraph a of this paragraph shall be a delivery
298		-	sale regardless of whether the seller is located
299		-	within or outside of Oklahoma.
300	287		c. A sale of cigarettes not for personal consumption to a
301	288		person who is a wholesale dealer or a retail dealer
302	289		shall not be a delivery sale.
303	290		d. For purposes of this paragraph, any sale of cigarettes
304	291		to an individual in Oklahoma shall be treated as a
305	292		sale to a consumer unless such individual is licensed
306	293		as a distributor or retailer of cigarettes by the Tax
307	294		Commission;
308	295		14. The term "delivery service" means any person, including but
309	296		not limited to the United States Postal Service, that is engaged in
310	297		the commercial delivery of letters, packages, or other containers;
311	298		15. The term "manufacturer" means any person who manufactures,
312	299		fabricates, assembles, processes, or labels a finished cigarette; or
313	300		imports, either directly or indirectly, a finished cigarette for
314	301		sale or distribution in this state;
315	302		16. The term "mails" or "mailing" means the shipment of
316	303		cigarettes through the United States Postal Serv ice;
	304	+	17. The term "shipping container" means a container in which
	305	+	cigarettes are shipped in connection with a delivery sale; and
	306	+	18. The term "shipping documents" means bills of lading,
	307	+	airbills, or any other documents used to evidence the undertaking by
	308	+	a delivery service to deliver letters, packages, or other
	309	+	containers.
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318		-	HB2742 HFLR Page 7
319		-	BOLD FACE denotes Committee Amendments. 1
	311	+	Req. No. 12962 Page 7 1
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344		-	17. The term "shipping container" means a container in which
345		-	cigarettes are shipped in connection with a delivery sale; and
346		-	18. The term "shipping documents" means bills of lading,
347		-	airbills, or any other documents used to evidence the undertaking by
348		-	a delivery service to deliver letters, packages, or other
349		-	containers.
350	336		SECTION 2. AMENDATORY 68 O.S. 2021, Section 321, is
351	337		amended to read as follows:
352	338		Section 321. A. The following sales are hereby exempted from
353	339		the stamp excise tax levied pursuant to the provisions of Section
354	340		301 et seq. of this title:
355	341		1. All cigarettes sold to veterans hospitals and state operated
356	342		domiciliary homes for veterans located in the State of Oklahoma, for
357	343		distribution or sale to disabled ex -servicemen or disabled ex-
358	344		servicewomen interned in, or inmates of, such hospitals, or
359	345		residents of such homes;
360	346		2. All sales to the United States;
361	347		3. All sales to a federally recognized Indian tribe or nation
362	348		which has entered into a compact with the State of Okla homa pursuant
363	349		to the provisions of subsection C of Section 1 of this act or to a
364	350		licensee of such a tribe or nation, upon which the payment in lieu
365	351		of taxes required by the compact has been paid; and
	352	+	4. All sales to a federally recognized Indian tribe or nation
	353	+	or to a licensee of such a tribe or nation upon which the tax levied
	354	+	pursuant to the provisions of Section 4 of this act has been paid.
	355	+	B. To the sale of cigarettes that are intended to be heated
	356	+	rather than burned shall be applied a tax exemption equal to fifty
	357	+	percent (50%) of the tax levied pursuant to the provisions of
	358	+	Section 301 et seq. of this title.
366	359
367		-	HB2742 HFLR Page 8
368		-	BOLD FACE denotes Committee Amendments. 1
	360	+	Req. No. 12962 Page 8 1
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393		-	4. All sales to a federally recognized Indian tribe or nation
394		-	or to a licensee of such a tribe or nation upon which the tax levied
395		-	pursuant to the provisions of Section 4 of this act has been paid.
396		-	B. To the sale of cigarettes that are intended to be heated
397		-	rather than burned shall be applied a tax exemption equal to fifty
398		-	percent (50%) of the tax levied pursuant to the provisions of
399		-	Section 301 et seq. of this title.
400	385		SECTION 3. AMENDATORY 68 O.S. 2021, Section 322, is
401	386		amended to read as follows:
402	387		Section 322. The Oklahoma Tax Commiss ion shall prescribe such
403	388		rules and make such regulations as to the sale or distribution of
404	389		cigarettes, and the exemption from the stamp excise tax thereof, as
405	390		shall be deemed necessary to comply with the provisions of the
406	391		preceding section Section 301 et seq of this title, including the
407	392		creation of distinct stamps to affix to packages of cigarettes that
408	393		are intended to be heated rather than burned, and provide that such
409	394		stamps be made available on or before the effective date of this
410	395		act.
411	396		SECTION 4. This act shall become effective November 1, 2025.
412	397
413		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
414		-	02/26/2025 - DO PASS, As Amended and Coauthored.
	398	+	60-1-12962 JM 02/26/25
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