Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB680 Compare Versions

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Version 2 (New)

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3		-	SB680 HFLR Page 1
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	3	+	ENGR. S. B. NO. 680 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 680 By: Paxton of the Senate
37	30
38	31		and
39	32
40	33		Caldwell (Trey) of the
41	34		House
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45	38		An Act relating to heated tobacco products ; amending
46	39		68 O.S. 2021, Sections 301, 321, and 322, which
47	40		relate to the cigarette stamp tax; modifying
48	41		definition; providing exemption; requiring the
49	42		Oklahoma Tax Commission to prescribe certain rules
50	43		and regulations to comply with certain exemption;
51	44		updating statutory language; updating statutory
52	45		references; and providing an effective date .
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57	50		BE IT ENACTED BY THE PE OPLE OF THE STATE OF OKLAHOMA:
58	51		SECTION 1. AMENDATORY 68 O.S. 2021, Section 301, is
59	52		amended to read as follows:
60	53		Section 301. For purposes of Section 301 et seq. of this title:
61	54		1. The term “cigarette” is defined to mean and includ e all
62	55		rolled tobacco or any substitute therefor, wrapped in paper or any
63	56		substitute therefor and weighing not to exceed three (3) pounds per
64	57		thousand cigarettes. The term cigarette shall include products that
65	58		are intended to be heated or burned;
	59	+	2. The term “person” is defined to mean and include any
	60	+	individual, company, partnership, joint venture, joint agreement,
	61	+	association (mutual or otherwise), limited liability company,
	62	+	corporation, estate, trust, business trust receiver, or trustee
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67		-	SB680 HFLR Page 2
68		-	BOLD FACE denotes Committee Amendments. 1
	64	+	ENGR. S. B. NO. 680 Page 2 1
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93		-	2. The term “person” is defined to mean and include any
94		-	individual, company, partnership, joint venture, joint agreement,
95		-	association (mutual or otherwise), limited liability company,
96		-	corporation, estate, trust, business trust receiver, or trustee
97	89		appointed by any state or federal court, or otherwise, syndicate, or
98	90		any political subdivision of the state or combination acting as a
99	91		unit, in the plural or singular number;
100	92		3. The term “wholesaler”, “distributor” and/or “jobber” is
101	93		defined to mean and include a person, firm or corporation organized
102	94		and existing, or doing business, primarily to sell cigarettes to,
103	95		and render service to retailers in the territory such person, firm
104	96		or corporation chooses to serve, and that:
105	97		a. purchases cigarettes directly from the manufac turer,
106	98		b. at least seventy-five percent (75%) of whose gross
107	99		sales are made at wholesale,
108	100		c. handles goods in wholesale quantities and sells
109	101		through salespersons, advertising and/or sales
110	102		promotion devices,
111	103		d. carries at all times at its principal place of
112	104		business a representative stock of cigarettes for
113	105		sale, and
114	106		e. comes into the possession of cigarettes for the
115	107		purpose of selling them to retailers or to persons
	108	+	outside or within the state who might resell or retail
	109	+	such cigarettes to consumers.
	110	+	In addition to the foregoing, and irrespective of the percentage
	111	+	or type of sales, the term “wholesaler” wholesaler, “distributor”
	112	+	distributor and/or “jobber” jobber shall also include all purchasers
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117		-	SB680 HFLR Page 3
118		-	BOLD FACE denotes Committee Amendments. 1
	114	+	ENGR. S. B. NO. 680 Page 3 1
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143		-	outside or within the state who might resell or retail
144		-	such cigarettes to consumers.
145		-	In addition to the foregoing, and irrespective of the percentage
146		-	or type of sales, the term “wholesaler” wholesaler, “distributor”
147		-	distributor and/or “jobber” jobber shall also include all purchasers
148	139		of cigarettes making purchases direc tly from the manufacturer fo r
149	140		distribution at wholesale or retail sale and this shall not affect
150	141		the requirements relating to retail licenses;
151	142		4. The term “retailer” is defined to be:
152	143		a. a person who comes into the possession of cigarettes
153	144		for the purpose of selling, or who sells th em at
154	145		retail, or
155	146		b. a person, not coming within the classification of
156	147		wholesaler, distributor and/or jobber as herein
157	148		defined, having possession of more than one thousand
158	149		cigarettes;
159	150		5. The term “consumer” is defined to be a pe rson who receives
160	151		or who in any way comes into possession of cigarettes for the
161	152		purpose of consuming them, giving them away, or disposing of them in
162	153		a way other than by sale, barter or exchange;
163	154		6. The term “Tax Commission” is defined to mean the Oklahoma
164	155		Tax Commission;
165	156		7. The term “sale” and/or “sales” is hereby defined to be and
166	157		declared to include sales, barters, exchanges and every other
	158	+	manner, method and form of transferring the ownership of personal
	159	+	property from one person to another, and is also declared to be the
	160	+	use or consumption in this state in the first instance of cigarettes
	161	+	received from without the state or of any other cigarettes upon
	162	+	which the tax has not been paid. The term “first sale” shall mean
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168		-	SB680 HFLR Page 4
169		-	BOLD FACE denotes Committee Amendments. 1
	164	+	ENGR. S. B. NO. 680 Page 4 1
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194		-	manner, method and form of transferring the ownership of personal
195		-	property from one person to another, and is also declared to be the
196		-	use or consumption in this state in the first instance of cigarettes
197		-	received from without the state or of any other cigarettes upon
198		-	which the tax has not been paid. The term “first sale” shall mean
199	189		and include the first sale or distribution of cigarettes in
200	190		intrastate commerce or the first use or consumption of cigarettes
201	191		within this state;
202	192		8. The term “stamp” as herein used shall mean the stamp or
203	193		stamps by use of which:
204	194		a. the tax levied pursuant to the provisions of Section
205	195		301 et seq. of this title is paid, or
206	196		b. the tax levied pursuant to the provisions of Section
207	197		349 of this title is paid, or
208	198		c. the payment in lieu of taxes authorized pursuant to a
209	199		compact entered into by the State of Oklahoma this
210	200		state and a federally recognized Indian tribe or
211	201		nation pursuant to the provisions of subsection C of
212	202		Section 346 of this title is paid;
213	203		9. The term “drop shipment” shall mean and include any delivery
214	204		of cigarettes received by any person within this state when payment
215	205		for such cigarettes is made to the shipper or seller by or through a
216	206		person other than the consignee;
	207	+	10. The term “distributing agent” shall mean and include every
	208	+	person in this state who acts as an agent of any person outside the
	209	+	state by receiving cigarettes in interstate commerce and storing
	210	+	such cigarettes subject to distribution or delivery upon order from
	211	+	the person outside the state to distributors, wholesale dealers and
	212	+	retail dealers, or to consumers. The term “distributing agent”
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218		-	SB680 HFLR Page 5
219		-	BOLD FACE denotes Committee Amendments. 1
	214	+	ENGR. S. B. NO. 680 Page 5 1
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244		-	10. The term “distributing agent” shall mean and include every
245		-	person in this state who acts as an agent of any person outside the
246		-	state by receiving cigarettes in interstate commerce and storing
247		-	such cigarettes subject to distribution or delivery upon order from
248		-	the person outside the state to distributors, wholesale dealers and
249		-	retail dealers, or to consumers. The term “distributing agent”
250	239		distributing agent shall also mean and include any person who
251	240		solicits or takes orders for cigarettes to be shipped in interstate
252	241		commerce to a person in this state by a person residing outside of
253	242		Oklahoma, the tax not having been paid on such cigarettes;
254	243		11. The term “vending machine” shall mean and include any coin
255	244		operating machine, contrivance, or device, by means of which
256	245		cigarettes are sold or dispensed in their original container;
257	246		12. The term “use” means and includes the exercise of any right
258	247		or power over cigarettes incident to the ownership or possessi on
259	248		thereof, except that it shall not include the sale of cigarettes in
260	249		the regular course of business;
261	250		13. a. The term “delivery sale” means any sale of cigarettes
262	251		to a consumer in Oklahoma where either:
263	252		(1) the purchaser submits the order for such sale by
264	253		means of a telephonic or other method of voice
265	254		transmission, the mails or any other delivery
266	255		service, or the Internet or other online service,
267	256		or
	257	+	(2) the cigarettes are delivered by use of the mails
	258	+	or other delivery service.
	259	+	b. A sale of cigarettes which satisfies the criteria in
	260	+	subparagraph a of this paragraph shall be a delivery
	261	+	sale regardless of whether the seller is located
	262	+	within or outside of Oklahoma.
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269		-	SB680 HFLR Page 6
270		-	BOLD FACE denotes Committee Amendments. 1
	264	+	ENGR. S. B. NO. 680 Page 6 1
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295		-	(2) the cigarettes are delivered by use of the mails
296		-	or other delivery service.
297		-	b. A sale of cigarettes which satisfies the criteria in
298		-	subparagraph a of this paragraph shall be a delivery
299		-	sale regardless of whether the seller is located
300		-	within or outside of Oklahoma.
301	289		c. A sale of cigarettes not for personal consumption to a
302	290		person who is a wholesale dealer or a retail dealer
303	291		shall not be a delivery sale.
304	292		d. For purposes of this paragraph, any sale of cigarettes
305	293		to an individual in Oklahoma shall be treated as a
306	294		sale to a consumer unless such individual is licensed
307	295		as a distributor or r etailer of cigarettes by the Tax
308	296		Commission;
309	297		14. The term “delivery service” means any person, including ,
310	298		but not limited to, the United States Postal Service, that is
311	299		engaged in the commercial delivery of letters, packages, or other
312	300		containers;
313	301		15. The term “manufacturer” means any person who manufactures,
314	302		fabricates, assembles, processes, or labels a finished cigarette; or
315	303		imports, either directly or indirectly, a finished cigarette for
316	304		sale or distribution in this state;
317	305		16. The term “mails” or “mailing” means the shipment of
318	306		cigarettes through the United States Postal Service;
	307	+	17. The term “shipping container” means a container in which
	308	+	cigarettes are shipped in connection with a delivery sale; and
	309	+	18. The term “shipping documents” means bills of lading,
	310	+	airbills, or any other documents used to evidence the undertaking by
	311	+	a delivery service to deliver letters, packages, or other
	312	+	containers.
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320		-	SB680 HFLR Page 7
321		-	BOLD FACE denotes Committee Amendments. 1
	314	+	ENGR. S. B. NO. 680 Page 7 1
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346		-	17. The term “shipping container” means a container in which
347		-	cigarettes are shipped in connection with a delivery sale; and
348		-	18. The term “shipping documents” means bills of lading,
349		-	airbills, or any other documents used to evidence the undertaking by
350		-	a delivery service to deliver letters, packages, or other
351		-	containers.
352	339		SECTION 2. AMENDATORY 68 O.S. 2021, Section 321, is
353	340		amended to read as follows:
354	341		Section 321. A. The following sales are hereby exempted from
355	342		the stamp excise tax levied pursuant to the provisions of Section
356	343		301 et seq. of this title:
357	344		1. All cigarettes sold to veterans hospitals and state operated
358	345		domiciliary homes for veterans located in the State of Oklahoma this
359	346		state, for distribution or sale to disabled ex -servicemen or
360	347		disabled ex-servicewomen interned in, or inmates of, such hospitals,
361	348		or residents of such homes;
362	349		2. All sales to the United States; and
363	350		3. All sales to a federally recognized Indian tribe or n ation
364	351		which has entered into a compact with the State of Oklahoma this
365	352		state pursuant to the provisions of subsection C of Section 1 of
366	353		this act 346 of this title or to a licensee of such a tribe or
367	354		nation, upon which the payment in lieu of taxes required by the
368	355		compact has been paid ; and
	356	+	4. All sales to a federally recognized Indian tribe or nation
	357	+	or to a licensee of such a tribe or nation upon which the tax levied
	358	+	pursuant to the provisions of Section 4 of this act has been p aid.
	359	+	B. An exemption is her eby provided for the sale of cigarettes
	360	+	that are intended to be heated rather than burned equal to fifty
	361	+	percent (50%) of the taxes levied pursuant to the provisions of
	362	+	Section 301 et seq. of this title.
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370		-	SB680 HFLR Page 8
371		-	BOLD FACE denotes Committee Amendments. 1
	364	+	ENGR. S. B. NO. 680 Page 8 1
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396		-	4. All sales to a federally recognized Indian tribe or nation
397		-	or to a licensee of such a tribe or nation upon which the tax levied
398		-	pursuant to the provisions of Section 4 of this act has been paid .
399		-	B. An exemption is hereby provided for the sale of cigarettes
400		-	that are intended to be heated rather than burned equal to fifty
401		-	percent (50%) of the taxes levied pursuant to the provisions of
402		-	Section 301 et seq. of this title.
403	389		SECTION 3. AMENDATORY 68 O .S. 2021, Section 322, is
404	390		amended to read as follows:
405	391		Section 322. The Oklahoma Tax Commission shall prescribe such
406	392		rules and make such regulations as to the sale or distribution of
407	393		cigarettes, and the exemption from the stamp excise tax thereof, as
408	394		shall be deemed necessary to comply with the provisions of the
409	395		preceding section Section 301 et seq. of this title . Provided, the
410	396		Tax Commission shall administer the provisions of this act so that
411	397		stamps shall be available , on or before the effective date of t his
412	398		act, for affixing to packages of cigarettes that are intended to be
413	399		heated rather than burned .
414	400		SECTION 4. This act shall become effective November 1, 2025.
	401	+	Passed the Senate the 26th day of March, 2025.
415	402
416		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET , dated
417		-	04/17/2025 - DO PASS.
	403	+
	404	+
	405	+	Presiding Officer of the Se nate
	406	+
	407	+
	408	+	Passed the House of Representatives the ____ day of __________,
	409	+	2025.
	410	+
	411	+
	412	+
	413	+	Presiding Officer of the House
	414	+	of Representatives
	415	+