SENATE FLOOR VERSION - SB1110 SFLR Page 1
(Bold face denotes Committee Amendments) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
SENATE FLOOR VERSION
February 24, 2025
SENATE BILL NO. 1110 By: Murdock
An Act relating to sales tax; amending 68 O.S. 2021,
Section 1358.1, which relates to the proof of
eligibility for the agriculture sales tax exemption;
expanding the period betw een permit renewals; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 68 O.S. 2021, Section 1358.1, is
amended to read as follows:
Section 1358.1. A. In order to q ualify for any exemption
authorized by Section 1358 of this title, at the time of sale, the
person to whom the sale is made shall be required to furnish the
vendor proof of eligibility for the exemption as required by this
section.
B. All vendors shall ho nor the proof of eligibility for sales
tax exemption as authorized by this section and sales to a person
providing such proof shall be exempt from the tax levied by this
article, Section 1350 et seq. of this title.
C. The agricultural exemption permit, th e size and design of
which shall be prescribed by the Oklahoma Tax Commission, shall
SENATE FLOOR VERSION - SB1110 SFLR Page 2
(Bold face denotes Committee Amendments) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
constitute proof of eligibility for sales tax exemptions authorized
by Section 1358 of this title. The permit shall be obtained by
listing personal property used in farmi ng or ranching by the person
with the county assessor each year as provided by law. If the
assessor determines that the personal property is correctly listed
and assessed for ad valorem taxation and the county treasurer
certifies whether the person has de linquent accounts appearing on
the personal property tax lien docket in the county treasurer ’s
office, the assessor shall certify the assessment upon a form
prescribed by the Oklahoma Tax Commission. One copy shall be
retained by the assessor, one copy sh all be forwarded to the
Oklahoma Tax Commission and o ne copy shall be given to the person
listing the personal property. Upon verification that the applicant
qualifies for the exemptions authorized by Section 1358 of this
title and that the applicant has no delinquent accounts appearing on
the personal property tax lien docket in the office of the county
treasurer, a permit shall be issued as prescribed by this section.
The permit shall be renewable every three (3) years for permits
issued or renewed befo re the effective date of this act, and every
five (5) years for permits issued or renewed on or after the
effective date of this act, in the manner provided by this section.
D. A person who does not otherwise qualify for a permit
pursuant to subsection C of this section, except as provided in
subsection E of this section, shall file with the Oklahoma Tax
SENATE FLOOR VERSION - SB1110 SFLR Page 3
(Bold face denotes Committee Amendments) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Commission an application for an agricultural exemption permit
constituting proof of eligibility for the sales tax exemptions
authorized by Section 1358 o f this title, setting forth such
information as the T ax Commission may require. The application
shall be certified by the applicant that the applicant is engaged in
custom farming operations or in the business of farming or ranching.
If the applicant is a corporation, the application shall be
certified by a legally constituted officer thereof.
The Oklahoma Tax Commission shall accept any of the following as
proof of eligibility for the exemptions authorized by this section
or pursuant to Section 1358 of t his title.:
1. A copy of IRS Schedule F, a copy of I RS form 1065 or a copy
of IRS form 4835, or any equivalent form prescribed by the Internal
Revenue Service, with respect to a federal income tax return;
2. A one-page business description form provided by the
Oklahoma Tax Commission;
3. Farm Service Agency form 156EZ; or
4. Other documents at the discretion of the Oklahoma Tax
Commission that verify active agriculture production.
E. Except as provided in this subsection, for a person who is a
resident of another state and who is engaged in custom farmin g
operations in this state, the person shall provide the vendor proof
of residency, the name, address and telephone number of the person
engaging the custom farmer and certification on the face of the
SENATE FLOOR VERSION - SB1110 SFLR Page 4
(Bold face denotes Committee Amendments) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
invoice, under the penalty of perjury, that the property purchased
shall be used in agricultural production as proof of eligibility for
the sales tax exemption authorized by Section 1358 of this title.
Any person who is a resident of another state and who i s engaged in
custom farming operations in this state and who owns property in
this state, shall obtain proof of eligibility as provided in
subsection C or D of this section.
F. If an agricultural exemption permit holder purchases
tangible personal propert y from a vendor on a regular basis, the
permit holder may furnish the vendor proof of eligibility as
provided for in subsections C and D of this section and the vendor
may subsequently make sales of tangible personal property to the
permit holder without r equiring proof of eligibility for each
subsequent sale. Provided, the permit holder shall notify the
vendor of all purchases which are not exempt from sales tax under
the provisions of Section 1358 of this title and remit the
applicable amount of tax ther eon. If the permit holder fails to
notify the vendor of purchases not exempt from sales tax, then
sufficient grounds shall exist for the Oklahoma Tax Commission to
cancel the agricultural exemption permit of the permit holder who so
failed to notify the v endor.
G. If an out-of-state agricultural exemption permit holder
purchases tangible personal property from a vendor within this state
who is not in the business of shipping the tangible personal
SENATE FLOOR VERSION - SB1110 SFLR Page 5
(Bold face denotes Committee Amendments) 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
property purchased, then the out -of-state agricultural exem ption
permit holder is responsible for providing an export bill of lading
or other documentation to the vendor from whom the tangible personal
property was purchased showing that the point of delivery of such
goods for use and consumption is outside this s tate.
H. A purchaser who uses an agricultural exempt ion permit or
provides proof of eligibility pursuant to subsection E of this
section to purchase, exempt from sales tax, items not authorized for
exemption under Section 1358 of this title shall be subje ct to a
penalty in the amount of Five Hundred Dollars ($500.00).
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON REVENUE AND TAXATION
February 24, 2025 - DO PASS