1 STATE OF OKLAHOMA
2 2nd Session of the 59th Legislature (2024)
3 SENATE BILL 1259 By: Thompson (Roger)
4
5
6 AS INTRODUCED
7 An Act relating to sales tax; amending 68 O.S. 2021,
Section 1357.21, as amended by Section 2, Chapter 44,
8 1st Extraordinary Session, O.S.L. 2023 (68 O.S. Supp.
2023, Section 1357.21), which relates to rebates for
9 sales tax exemption on qualifying broadband
equipment; providing deadline for filing rebate
10 claims on certain purchases; eliminating deadline for
processing claims; and providing deadline for report
11 filing.
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357.21, as
15 amended by Section 2, Chapter 44, 1st Extraordinary Session, O.S.L.
16 2023 (68 O.S. Supp. 2023, Section 1357.21), is amended to read as
17 follows:
18 Section 1357.21. A. The exemption authorized by the provisions
19 of paragraph 43 of Section 1357 of this title shall be administered
20 as a rebate.
21 B. No claim for a rebate shall be approved unless the equipment
22 was purchased in order to establish or expand broadband services in
23 underserved or unserved areas. As used in this subsection and for
24 purposes of the exemption authorized by paragraph 43 of Section 1357
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1 of this title, “broadband”, “underserved” and “unserved” shall mean
2 those services and areas as defined in Section 139.102 of Title 17
3 of the Oklahoma Statutes.
4 C. No claim for rebate shall be approved unless the claimant
5 establishes that as a result of the equipment purchase there has
6 been net growth in the number of potential customers served in
7 underserved or unserved areas.
8 D. In order to qualify for rebate payments during the fiscal
9 year beginning July 1, 2022, equipment or other items qualifying for
10 the exemption authorized by paragraph 43 of Section 1357 of this
11 title must be purchased and placed in service between January 1,
12 2022, and December 31, 2023. Claims for rebates of sales tax or use
13 tax paid for such equipment purchased in calendar year 2022 shall be
14 filed with the Oklahoma Tax Commission not later than September 1,
15 2023, and claims for rebates for sales or use tax paid for such
16 equipment purchased in subsequent calendar year 2023 years shall be
17 filed with the Oklahoma Tax Commission not later than September 1,
18 2024 of the following year. All claims shall be processed by the
19 Tax Commission not later than March 1, 2025.
20 E. Qualifying purchases do not include supporting or ancillary
21 functions, such as office operations, field operations, marketing,
22 transportation, warehousing, data storage, or similar operations
23 that do not directly result in the distribution of broadband
24 Internet service. Property directly used or consumed in or during
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1 the provision, creation, or production of a data processing service
2 or information service, or property the provider grants, sells, or
3 leases to the customer for use within the home or establishment
4 receiving broadband is not eligible for a rebate under this section.
5 F. The total amount of rebates that may be paid shall not
6 exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one
7 Million Five Hundred Thousand Dollars ($31,500,000.00) of the total
8 reserved for eligible projects serving counties having a population
9 density of fewer than one hundred persons per square mile and Ten
10 Million Five Hundred Thousand Dollars ($10,500,000.00) of the total
11 reserved for eligible projects serving counties having a population
12 density of one hundred or more persons per square mile.
13 G. The amount of rebate paid to each claimant shall be computed
14 by dividing the applicable total rebate pool amount by the dollar
15 amount of claims timely received by the Tax Commission with respect
16 to each fiscal year, and paying in full the amount of the claims
17 submitted if the amount of claims are equal to, or less than, the
18 total rebate pool, or a pro rata share if the total amount of claims
19 submitted exceed the rebate pool.
20 H. For the fiscal year beginning July 1, 2023, and all
21 subsequent fiscal years, the total amount of rebate that may be paid
22 shall not exceed Forty-two Million Dollars ($42,000,000.00).
23 I. Claims for rebate shall be on such forms as the Oklahoma Tax
24 Commission may prescribe for such purpose and shall contain any
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1 required information or supporting documentation the Commission
2 requires to verify eligibility for the rebate payment.
3 J. The Oklahoma Department of Commerce and the Oklahoma
4 Broadband Office shall use information provided by the Oklahoma Tax
5 Commission to prepare a report to identify the qualifying rural
6 broadband projects completed with the equipment purchased together
7 with the location of the equipment and the geographic areas served
8 as a result of the equipment purchases, including the total number
9 of potential new customers receiving qualifying broadband services
10 resulting from the project. The report shall not identify any
11 entity by name that purchased equipment.
12 K. The report shall be filed not later than April 1, 2025, with
13 respect to rebates paid for equipment purchases made during calendar
14 years 2022 and 2023 and April 1 of the second succeeding year for
15 equipment purchases made in subsequent calendar years. The Oklahoma
16 Tax Commission shall make information available as required by
17 subsection J of this section as claims are completed to assist with
18 the timely preparation of the report.
19 L. The report shall be filed with the Governor, the Speaker of
20 the House of Representatives and the President Pro Tempore of the
21 Senate and posted on the Oklahoma Broadband Office website.
22
23 59-2-2732 QD 12/8/2023 11:15:15 AM
24
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Statutes affected:
Introduced: 68-1357.21
Floor (House): 68-1357.21
Floor (Senate): 68-1357.21
Engrossed: 68-1357.21
Enrolled (final version): 68-1357.21