1 STATE OF OKLAHOMA
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2 1st Session of the 58th Legislature (2021)
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3 SENATE BILL 593 By: Thompson
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5 AS INTRODUCED
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6 An Act relating to excise tax; amending 68 O.S. 2011,
6 Section 2103, as amended by Section 4, Chapter 316,
7 O.S.L. 2012 (68 O.S. Supp. 2020, Section 2103), which
7 relates to taxation on the sale of motor vehicles;
8 adding types of vehicles for which excise tax payment
8 is in lieu of all sales and use taxes; and providing
9 an effective date.
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10
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11 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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12 SECTION 1. AMENDATORY 68 O.S. 2011, Section 2103, as
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13 amended by Section 4, Chapter 316, O.S.L. 2012 (68 O.S. Supp. 2020,
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14 Section 2103), is amended to read as follows:
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15 Section 2103. A. 1. Except as otherwise provided in Sections
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16 2101 through 2108 of this title, there shall be levied an excise tax
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17 upon the transfer of legal ownership of any vehicle registered in
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18 this state and upon the use of any vehicle registered in this state
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19 and upon the use of any vehicle registered for the first time in
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20 this state. Except for persons that possess an agricultural
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21 exemption pursuant to Section 1358.1 of this title, the excise tax
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22 shall be levied upon transfers of legal ownership of all-terrain
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23 vehicles and motorcycles used exclusively off roads and highways
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24 which occur on or after July 1, 2005, and upon transfers of legal
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Req. No. 97 Page 1
1 ownership of utility vehicles used exclusively off roads and
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2 highways which occur on or after July 1, 2008. The excise tax for
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3 new and used all-terrain vehicles, utility vehicles and motorcycles
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4 used exclusively off roads and highways shall be levied at four and
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5 one-half percent (4 1/2%) of the actual sales price of each new and
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6 used all-terrain vehicle and motorcycle used exclusively off roads
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7 and highways before any discounts or credits are given for a trade-
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8 in. Provided, the minimum excise tax assessment for such all-
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9 terrain vehicles, utility vehicles and motorcycles used exclusively
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10 off roads and highways shall be Five Dollars ($5.00). The excise
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11 tax for new vehicles shall be levied at three and one-fourth percent
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12 (3 1/4%) of the value of each new vehicle. The excise tax for used
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13 vehicles shall be as follows:
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14 a. from October 1, 2000, until June 30, 2001, Twenty
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15 Dollars ($20.00) on the first One Thousand Dollars
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16 ($1,000.00) or less of value of such vehicle, and
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17 three and one-fourth percent (3 1/4%) of the remaining
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18 value of such vehicle,
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19 b. for the year beginning July 1, 2001, and ending June
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20 30, 2002, Twenty Dollars ($20.00) on the first One
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21 Thousand Two Hundred Fifty Dollars ($1,250.00) or less
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22 of value of such vehicle, and three and one-fourth
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23 percent (3 1/4%) of the remaining value of such
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24 vehicle, and
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1 c. for the year beginning July 1, 2002, and all
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2 subsequent years, Twenty Dollars ($20.00) on the first
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3 One Thousand Five Hundred Dollars ($1,500.00) or less
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4 of value of such vehicle, and three and one-fourth
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5 percent (3 1/4%) of the remaining value of such
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6 vehicle.
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7 2. There shall be levied an excise tax of Ten Dollars ($10.00)
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8 for any:
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9 a. truck or truck-tractor registered under the provisions
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10 of subsection A of Section 1133 of Title 47 of the
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11 Oklahoma Statutes, for a laden weight or combined
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12 laden weight of fifty-five thousand (55,000) pounds or
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13 more,
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14 b. trailer or semitrailer registered under subsection C
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15 of Section 1133 of Title 47 of the Oklahoma Statutes,
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16 which is primarily designed to transport cargo over
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17 the highways of this state and generally recognized as
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18 such, and
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19 c. frac tank, as defined by Section 54 of Title 17 of the
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20 Oklahoma Statutes, and registered under subsection C
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21 of Section 1133 of Title 47 of the Oklahoma Statutes.
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22 Except for frac tanks, the excise tax levied pursuant to this
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23 paragraph shall not apply to special mobilized machinery, trailers,
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24 or semitrailers manufactured, modified or remanufactured for the
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1 purpose of providing services other than transporting cargo over the
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2 highways of this state. The excise tax levied pursuant to this
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3 paragraph shall also not apply to pickup trucks, vans, or sport
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4 utility vehicles.
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5 3. The tax levied pursuant to this section shall be due at the
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6 time of the transfer of legal ownership or first registration in
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7 this state of such vehicle; provided, the tax shall not be due at
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8 the time of the issuance of a certificate of title for an all-
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9 terrain vehicle, utility vehicle or motorcycle used exclusively off
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10 roads and highways which is not required to be registered but which
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11 the owner chooses to register pursuant to the provisions of
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12 subsection B of Section 1115.3 of Title 47 of the Oklahoma Statutes,
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13 and shall be collected by the Oklahoma Tax Commission or Corporation
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14 Commission, as applicable, or an appointed motor license agent, at
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15 the time of the issuance of a certificate of title for any such
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16 vehicle. In the event an excise tax is collected on the transfer of
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17 legal ownership or use of the vehicle during any calendar year, then
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18 an additional excise tax must be collected upon all subsequent
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19 transfers of legal ownership. In computing the motor vehicle excise
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20 tax, the amount collected shall be rounded to the nearest dollar.
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21 The excise tax levied by this section shall be delinquent from and
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22 after the thirtieth day after the legal ownership or possession of
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23 any vehicle is obtained. Any person failing or refusing to pay the
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24 tax as herein provided on or before date of delinquency shall pay in
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1 addition to the tax a penalty of One Dollar ($1.00) per day for each
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2 day of delinquency, but such penalty shall in no event exceed the
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3 amount of the tax. Of each dollar penalty collected pursuant to
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4 this subsection:
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5 a. twenty-five cents ($0.25) shall be apportioned as
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6 provided in Section 1104 of this title;
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7 b. twenty-five cents ($0.25) shall be retained by the
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8 motor license agent; and
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9 c. fifty cents ($0.50) shall be deposited in the General
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10 Revenue Fund for the fiscal year beginning on July 1,
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11 2011, and for all subsequent fiscal years, shall be
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12 deposited in the State Highway Construction and
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13 Maintenance Fund.
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14 B. The excise tax levied in subsection A of this section and
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15 assessed on all commercial vehicles registered pursuant to Section
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16 1120 of Title 47 of the Oklahoma Statutes and trailers and
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17 semitrailers registered under subsection C of Section 1133 of Title
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18 47 of the Oklahoma Statutes to transport cargo over the highways of
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19 this state shall be in lieu of all sales and use taxes levied
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20 pursuant to the Sales Tax Code or the Use Tax Code. The transfer of
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21 legal ownership of any motor vehicle as used in this section and the
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22 Sales Tax Code and the Use Tax Code shall include the lease, lease
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23 purchase or lease finance agreement involving any truck in excess of
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24 eight thousand (8,000) pounds combined laden weight or any truck-
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1 tractor provided the vehicle is registered in Oklahoma pursuant to
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2 Section 1120 of Title 47 of the Oklahoma Statutes or any frac tank,
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3 trailer, semitrailer or open commercial vehicle registered pursuant
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4 to Section 1133 of Title 47 of the Oklahoma Statutes. The excise
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5 tax levied pursuant to this section shall not be subsequently
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6 collected at the end of the lease period if the lessee acquires
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7 complete legal title of the vehicle.
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8 C. The provisions of this section shall not apply to transfers
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9 made without consideration between:
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10 1. Husband and wife;
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11 2. Parent and child; or
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12 3. An individual and an express trust which that individual or
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13 the spouse, child or parent of that individual has a right to
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14 revoke.
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15 D. 1. There shall be a credit allowed with respect to the
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16 excise tax paid for a new vehicle which is a replacement for:
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17 a. a new original vehicle which is stolen from the
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18 purchaser/registrant within ninety (90) days of the
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19 date of purchase of the original vehicle as certified
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20 by a police report or other documentation as required
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21 by the Tax Commission, or
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22 b. a defective new original vehicle returned by the
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23 purchaser/registrant to the seller within six (6)
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1 months of the date of purchase of the defective new
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2 original vehicle as certified by the manufacturer.
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3 2. The credit allowed pursuant to paragraph 1 of this
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4 subsection shall be in the amount of the excise tax which was paid
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5 for the new original vehicle and shall be applied to the excise tax
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6 due on the replacement vehicle. In no event shall the credit be
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7 refunded.
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8 E. Despite any other definitions of the terms “new vehicle” and
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9 “used vehicle”, to the contrary, contained in any other law, the
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10 term “new vehicle” as used in this section shall also include any
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11 vehicle of the latest manufactured model which is owned or acquired
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12 by a licensed used motor vehicle dealer which has not previously
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13 been registered in this state and upon which the motor vehicle
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14 excise tax as set forth in this section has not been paid. However,
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15 upon the sale or transfer by a licensed used motor vehicle dealer
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16 located in this state of any such vehicle which is the latest
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17 manufactured model, the vehicle shall be considered a used vehicle
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18 for purposes of determining excise tax.
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19 F. The provisions of this section shall not apply to state
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20 government entities.
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21 SECTION 2. This act shall become effective November 1, 2021.
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23 58-1-97 JCR 1/20/2021 9:14:37 PM
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Statutes affected: Introduced: 68-2103
Floor (Senate): 68-2103
Engrossed: 68-1355, 68-1361, 68-1402, 68-1404, 68-2106
Amended And Engrossed: 68-1355, 68-1361, 68-1402, 68-1404, 68-2106