1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 984 By: Jech
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6 AS INTRODUCED
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7 An Act relating to sales and use tax; amending 68
7 O.S. 2021, Sections 1355 and 1404, which relate to
8 exemptions on the sale of a motor vehicle; modifying
8 the basis upon which gross receipts are calculated
9 for the purposes of sales tax and purchase price is
9 calculated for the purposes of use tax; updating
10 statutory references; updating statutory language;
10 and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1355, is
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15 amended to read as follows:
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16 Section 1355. There are hereby specifically exempted from the
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17 tax levied pursuant to the provisions of Section 1350 et seq. of
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18 this title:
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19 1. Sale of gasoline, motor fuel, methanol, “M-85” which is a
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20 mixture of methanol and gasoline containing at least eighty-five
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21 percent (85%) methanol, compressed natural gas, liquefied natural
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22 gas, or liquefied petroleum gas on which the Motor Fuel Tax,
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23 Gasoline Excise Tax, Special Fuels Tax, or the fee in lieu of
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 1 Special Fuels Tax levied in Section 500.1 et seq., Section 601 et
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2 seq. or Section 701 et seq. of this title has been, or will be paid;
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3 2. For the sale of motor vehicles or any optional equipment or
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4 accessories attached to motor vehicles on which the Oklahoma Motor
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5 Vehicle Excise Tax levied in Section 2101 et seq. of this title has
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6 been, or will be paid, all but a portion of the levy provided under
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7 Section 1354 of this title, equal to one and twenty-five-hundredths
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8 percent (1.25%) of the gross receipts of such sales. For the
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9 purposes of this paragraph, if the sale of a motor vehicle includes
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10 a trade-in, gross receipts shall be calculated based only on the
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11 difference between the value of the trade-in vehicle and the actual
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12 sales price of the vehicle being purchased. Provided, the sale of
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13 motor vehicles shall not be subject to any sales and use taxes
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14 levied by cities, counties, or other jurisdictions of the state;
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15 3. Sale of crude petroleum or natural or casinghead gas, and
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16 other products subject to gross production tax pursuant to the
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17 provisions of Section 1001 et seq. and Section 1101 et seq. of this
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18 title. This exemption shall not apply when such products are sold
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19 to a consumer or user for consumption or use, except when used for
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20 injection into the earth for the purpose of promoting or
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21 facilitating the production of oil or gas. This paragraph shall not
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22 operate to increase or repeal the gross production tax levied by the
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23 laws of this state;
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 1 4. Sale of aircraft on which the tax levied pursuant to the
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2 provisions of Sections 6001 through 6007 of this title has been, or
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3 will be paid or which are specifically exempt from such tax pursuant
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4 to the provisions of Section 6003 of this title;
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5 5. Sales from coin-operated devices on which the fee imposed by
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6 Sections 1501 through 1512 of this title has been paid;
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7 6. Leases of twelve (12) months or more of motor vehicles in
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8 which the owners of the vehicles have paid the vehicle excise tax
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9 levied by Section 2103 of this title;
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10 7. Sales of charity game equipment on which a tax is levied
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11 pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of
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12 Title 3A of the Oklahoma Statutes, or which is sold to an
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13 organization that is:
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14 a. a veterans’ organization exempt from taxation pursuant
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15 to the provisions of paragraph (4), (7), (8), (10), or
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16 (19) of subsection (c) of Section 501 of the United
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17 States Internal Revenue Code of 1986, as amended, 26
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18 U.S.C., Section 501(c) et seq.,
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19 b. a group home for mentally disabled individuals exempt
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20 from taxation pursuant to the provisions of paragraph
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21 (3) of subsection (c) of Section 501 of the United
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22 States Internal Revenue Code of 1986, as amended, 26
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23 U.S.C., Section 501(c) et seq., or
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 1 c. a charitable health care organization which is exempt
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2 from taxation pursuant to the provisions of paragraph
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3 (3) of subsection (c) of Section 501 of the United
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4 States Internal Revenue Code of 1986, as amended, 26
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5 U.S.C., Section 501(c) et seq.;
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6 8. Sales of cigarettes or tobacco products to:
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7 a. a federally recognized Indian tribe or nation which
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8 has entered into a compact with the State of Oklahoma
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9 pursuant to the provisions of subsection C of Section
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10 346 of this title or to a licensee of such a tribe or
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11 nation, upon which the payment in lieu of taxes
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12 required by the compact has been paid, or
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13 b. a federally recognized Indian tribe or nation or to a
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14 licensee of such a tribe or nation upon which the tax
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15 levied pursuant to the provisions of Section 349.1 or
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16 Section 426 of this title has been paid;
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17 9. Leases of aircraft upon which the owners have paid the
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18 aircraft excise tax levied by Section 6001 et seq. of this title or
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19 which are specifically exempt from such tax pursuant to the
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20 provisions of Section 6003 of this title;
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21 10. The sale of low-speed or medium-speed electrical vehicles
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22 on which the Oklahoma Motor Vehicle Excise Tax levied in Section
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23 2101 et seq. of this title has been or will be paid;
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 1 11. Effective January 1, 2005, sales of cigarettes on which the
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2 tax levied in Section 301 et seq. of this title or tobacco products
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3 on which the tax levied in Section 401 et seq. of this title has
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4 been paid; and
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5 12. Sales of electricity at charging stations as defined by
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6 Section 2 of this act Section 6502 of this title when the
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7 electricity is sold by a charging station owner or operator for
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8 purposes of charging an electric vehicle as defined by Section 2 of
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9 this act Section 6502 of this title and the tax imposed pursuant to
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10 Section 4 of this act Section 6504 of this title is collected and
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11 remitted to the Oklahoma Tax Commission.
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12 SECTION 2. AMENDATORY 68 O.S. 2021, Section 1404, is
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13 amended to read as follows:
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14 Section 1404. The provisions of Section 1401 et seq. of this
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15 title shall not apply:
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16 1. In respect to the use of any article of tangible personal
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17 property brought into the State of Oklahoma by a nonresident
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18 individual, visiting in this state, for his or her personal use or
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19 enjoyment, while within the state;
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20 2. In respect to the use of tangible personal property
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21 purchased for resale before being used;
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22 3. In respect to the use of any article of tangible personal
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23 property on which a tax, equal to or in excess of that levied by
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24 Section 1401 et seq. of this title, has been paid by the person
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 1 using such tangible personal property in this state, whether such
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2 tax was levied under the laws of this state or some other state of
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3 the United States. If any article of tangible personal property has
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4 already been subjected to a tax, by this or any other state, in
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5 respect to its sale or use, in an amount less than the tax imposed
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6 by Section 1401 et seq. of this title, the provisions of Section
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7 1401 et seq. of this title shall apply to it by a rate measured by
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8 the difference only between the rate herein provided and the rate by
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9 which the previous tax upon the sale or use was computed. Provided,
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10 that no credit shall be given for taxes paid in another state, if
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11 that state does not grant like credit for taxes paid in Oklahoma
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12 this state;
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13 4. In respect to the use of tangible personal property now
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14 specifically exempted from taxation under Oklahoma Sales Tax Code.
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15 Provided, for the sale of motor vehicles or any optional equipment
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16 or accessories attached to motor vehicles on which the Oklahoma
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17 Motor Vehicle Excise Tax levied pursuant to Sections 2101 through
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18 2108 of this title has been, or will be paid, the exceptions shall
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19 apply to all but a portion of the levy provided under Section 1402
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20 of this title, equal to one and twenty-five-hundredths percent
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21 (1.25%) of the purchase price. For the purposes of this paragraph,
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22 if the sale of a motor vehicle includes a trade-in, the purchase
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23 price shall be calculated based only on the difference between the
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24 value of the trade-in vehicle and the actual purchase price of the
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 1 vehicle being purchased. Provided further, the sale of motor
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2 vehicles shall not be subject to any sales and use taxes levied by
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3 cities, counties, or other jurisdictions of the state;
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4 5. In respect to the use of any article or tangible personal
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5 property brought into the state by an individual with intent to
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6 become a resident of this state where such personal property is for
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7 such individual’s personal use or enjoyment;
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8 6. In respect to the use of any article of tangible personal
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9 property used or to be used by commercial airlines or railroads;
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10 7. In respect to livestock purchased outside this state and
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11 brought into this state for feeding or breeding purposes, and which
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12 is later resold; and
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13 8. Effective January 1, 1991, in respect to the use of rail
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14 transportation cars to haul coal to coal-fired plants located in
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15 this state which generate electric power.
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16 SECTION 3. This act shall become effective November 1, 2023.
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18 59-1-887 QD 1/19/2023 12:06:16 PM
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