1 STATE OF OKLAHOMA
2 2nd Session of the 59th Legislature (2024)
3 SENATE BILL 1215 By: Stanley
4
5
6 AS INTRODUCED
7 An Act relating to sales tax; amending 68 O.S. 2021,
Section 1357, as last amended by Section 1, Chapter
8 344, O.S.L. 2023 (68 O.S. Supp. 2023, Section 1357),
which relates to exemptions; eliminating deadline for
9 certain registration for certain disabled veterans;
updating statutory language; and declaring an
10 emergency.
11
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
15 last amended by Section 1, Chapter 344, O.S.L. 2023 (68 O.S. Supp.
16 2023, Section 1357), is amended to read as follows:
17 Section 1357. Exemptions – General.
18 There are hereby specifically exempted from the tax levied by
19 the Oklahoma Sales Tax Code:
20 1. Transportation of school pupils to and from elementary
21 schools or high schools in motor or other vehicles;
22 2. Transportation of persons where the fare of each person does
23 not exceed One Dollar ($1.00), or local transportation of persons
24 within the corporate limits of a municipality except by taxicabs;
Req. No. 2517 Page 1
1 3. Sales for resale to persons engaged in the business of
2 reselling the articles purchased, whether within or without the
3 state, provided that such sales to residents of this state are made
4 to persons to whom sales tax permits have been issued as provided in
5 the Oklahoma Sales Tax Code. This exemption shall not apply to the
6 sales of articles made to persons holding permits when such persons
7 purchase items for their use and which they are not regularly
8 engaged in the business of reselling; neither shall this exemption
9 apply to sales of tangible personal property to peddlers, solicitors
10 and other salespersons who do not have an established place of
11 business and a sales tax permit. The exemption provided by this
12 paragraph shall apply to sales of motor fuel or diesel fuel to a
13 Group Five vendor, but the use of such motor fuel or diesel fuel by
14 the Group Five vendor shall not be exempt from the tax levied by the
15 Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
16 is exempt from sales tax when the motor fuel is for shipment outside
17 this state and consumed by a common carrier by rail in the conduct
18 of its business. The sales tax shall apply to the purchase of motor
19 fuel or diesel fuel in Oklahoma by a common carrier by rail when
20 such motor fuel is purchased for fueling, within this state, of any
21 locomotive or other motorized flanged wheel equipment;
22 4. Sales of advertising space in newspapers and periodicals;
23 5. Sales of programs relating to sporting and entertainment
24 events, and sales of advertising on billboards (including signage,
Req. No. 2517 Page 2
1 posters, panels, marquees or on other similar surfaces, whether
2 indoors or outdoors) or in programs relating to sporting and
3 entertainment events, and sales of any advertising, to be displayed
4 at or in connection with a sporting event, via the Internet,
5 electronic display devices or through public address or broadcast
6 systems. The exemption authorized by this paragraph shall be
7 effective for all sales made on or after January 1, 2001;
8 6. Sales of any advertising, other than the advertising
9 described by paragraph 5 of this section, via the Internet,
10 electronic display devices or through the electronic media including
11 radio, public address or broadcast systems, television (whether
12 through closed circuit broadcasting systems or otherwise), and cable
13 and satellite television, and the servicing of any advertising
14 devices;
15 7. Eggs, feed, supplies, machinery, and equipment purchased by
16 persons regularly engaged in the business of raising worms, fish,
17 any insect, or any other form of terrestrial or aquatic animal life
18 and used for the purpose of raising same for marketing. This
19 exemption shall only be granted and extended to the purchaser when
20 the items are to be used and in fact are used in the raising of
21 animal life as set out above. Each purchaser shall certify, in
22 writing, on the invoice or sales ticket retained by the vendor that
23 the purchaser is regularly engaged in the business of raising such
24 animal life and that the items purchased will be used only in such
Req. No. 2517 Page 3
1 business. The vendor shall certify to the Oklahoma Tax Commission
2 that the price of the items has been reduced to grant the full
3 benefit of the exemption. Violation hereof by the purchaser or
4 vendor shall be a misdemeanor;
5 8. Sale of natural or artificial gas and electricity, and
6 associated delivery or transmission services, when sold exclusively
7 for residential use. Provided, this exemption shall not apply to
8 any sales tax levied by a city or town, or a county or any other
9 jurisdiction in this state;
10 9. In addition to the exemptions authorized by Section 1357.6
11 of this title, sales of drugs sold pursuant to a prescription
12 written for the treatment of human beings by a person licensed to
13 prescribe the drugs, and sales of insulin and medical oxygen.
14 Provided, this exemption shall not apply to over-the-counter drugs;
15 10. Transfers of title or possession of empty, partially
16 filled, or filled returnable oil and chemical drums to any person
17 who is not regularly engaged in the business of selling, reselling
18 or otherwise transferring empty, partially filled or filled
19 returnable oil drums;
20 11. Sales of one-way utensils, paper napkins, paper cups,
21 disposable hot containers, and other one-way carry out materials to
22 a vendor of meals or beverages;
23 12. Sales of food or food products for home consumption which
24 are purchased in whole or in part with coupons issued pursuant to
Req. No. 2517 Page 4
1 the federal food stamp program as authorized by Sections 2011
2 through 2029 of Title 7 of the United States Code, as to that
3 portion purchased with such coupons. The exemption provided for
4 such sales shall be inapplicable to such sales upon the effective
5 date of any federal law that removes the requirement of the
6 exemption as a condition for participation by the state in the
7 federal food stamp program;
8 13. Sales of food or food products, or any equipment or
9 supplies used in the preparation of the food or food products to or
10 by an organization which:
11 a. is exempt from taxation pursuant to the provisions of
12 Section 501(c)(3) of the Internal Revenue Code, 26
13 U.S.C., Section 501(c)(3), and which provides and
14 delivers prepared meals for home consumption to
15 elderly or homebound persons as part of a program
16 commonly known as “Meals on Wheels” or “Mobile Meals”,
17 or
18 b. is exempt from taxation pursuant to the provisions of
19 Section 501(c)(3) of the Internal Revenue Code, 26
20 U.S.C., Section 501(c)(3), and which receives federal
21 funding pursuant to the Older Americans Act of 1965,
22 as amended, for the purpose of providing nutrition
23 programs for the care and benefit of elderly persons;
24
Req. No. 2517 Page 5
1 14. a. Sales of tangible personal property or services to or
2 by organizations which are exempt from taxation
3 pursuant to the provisions of Section 501(c)(3) of the
4 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
5 and:
6 (1) are primarily involved in the collection and
7 distribution of food and other household products
8 to other organizations that facilitate the
9 distribution of such products to the needy and
10 such distributee organizations are exempt from
11 taxation pursuant to the provisions of Section
12 501(c)(3) of the Internal Revenue Code, 26
13 U.S.C., Section 501(c)(3), or
14 (2) facilitate the distribution of such products to
15 the needy.
16 b. Sales made in the course of business for profit or
17 savings, competing with other persons engaged in the
18 same or similar business shall not be exempt under
19 this paragraph;
20 15. Sales of tangible personal property or services to
21 children’s homes which are located on church-owned property and are
22 operated by organizations exempt from taxation pursuant to the
23 provisions of the Internal Revenue Code, 26 U.S.C., Section
24 501(c)(3);
Req. No. 2517 Page 6
1 16. Sales of computers, data processing equipment, related
2 peripherals, and telephone, telegraph or telecommunications service
3 and equipment for use in a qualified aircraft maintenance or
4 manufacturing facility. For purposes of this paragraph, “qualified
5 aircraft maintenance or manufacturing facility” means a new or
6 expanding facility primarily engaged in aircraft repair, building or
7 rebuilding whether or not on a factory basis, whose total cost of
8 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
9 and which employs at least two hundred fifty (250) new full-time-
10 equivalent employees, as certified by the Oklahoma Employment
11 Security Commission, upon completion of the facility. In order to
12 qualify for the exemption provided for by this paragraph, the cost
13 of the items purchased by the qualified aircraft maintenance or
14 manufacturing facility shall equal or exceed the sum of Two Million
15 Dollars ($2,000,000.00);
16 17. Sales of tangible personal property consumed or
17 incorporated in the construction or expansion of a qualified
18 aircraft maintenance or manufacturing facility as defined in
19 paragraph 16 of this section. For purposes of this paragraph, sales
20 made to a contractor or subcontractor that has previously entered
21 into a contractual relationship with a qualified aircraft
22 maintenance or manufacturing facility for construction or expansion
23 of such a facility shall be considered sales made to a qualified
24 aircraft maintenance or manufacturing facility;
Req. No. 2517 Page 7
1 18. Sales of the following telecommunications services:
2 a. Interstate and International “800 service”. “800
3 service” means a “telecommunications service”
4 telecommunications service that allows a caller to
5 dial a toll-free number without incurring a charge for
6 the call. The service is typically marketed under the
7 name “800”, “855”, “866”, “877” and “888” toll-free
8 calling, and any subsequent numbers designated by the
9 Federal Communications Commission,
10 b. Interstate and International “900 service”. “900
11 service” means an inbound toll “telecommunications
12 service” telecommunications service purchased by a
13 subscriber that allows the subscriber’s customers to
14 call in to the subscriber’s prerecorded announcement
15 or live service. “900 service” 900 service does not
16 include the charge for: collection services provided
17 by the seller of the “telecommunications services”
18 telecommunications services to the subscriber, or
19 service or product sold by the subscriber to the
20 subscriber’s customer. The service is typically
21 marketed under the name “900” service, and any
22 subsequent numbers designated by the Federal
23 Communications Commission,
24
Req. No. 2517 Page 8
1 c. Interstate and International “private communications
2 service”. “Private communications service” means a
3 “telecommunications service” telecommunications
4 service that entitles the customer to exclusive or
5 priority use of a communications channel or group of
6 channels between or among termination points,
7 regardless of the manner in which such channel or
8 channels are connected, and includes switching
9 capacity, extension lines, stations and any other
10 associated services that are provided in connection
11 with the use of such channel or channels,
12 d. “Value-added nonvoice data service”. “Value-added
13 nonvoice data service” means a service that otherwise
14 meets the definition of “telecommunications services”
15 telecommunications services in which computer
16 processing applications are used to act on the form,
17 content, code or protocol of the information or data
18 primarily for a purpose other than transmission,
19 conveyance, or routing,
20 e. Interstate and International telecommunications
21 service which is:
22 (1) rendered by a company for private use within its
23 organization, or
24
Req. No. 2517 Page 9
1 (2) used, allocated or distributed by a company to
2 its affiliated group,
3 f. Regulatory assessments and charges including charges
4 to fund the Oklahoma Universal Service Fund, the
5 Oklahoma Lifeline Fund and the Oklahoma High Cost
6 Fund, and
7 g. Telecommunications nonrecurring charges including but
8 not limited to the installation, connection, change,
9 or initiation of telecommunications services which are
10 not associated with a retail consumer sale;
11 19. Sales of railroad track spikes manufactured and sold for
12 use in this state in the construction or repair of railroad tracks,
13 switches, sidings, and turnouts;
14 20. Sales of aircraft and aircraft parts provided such sales
15 occur at a qualified aircraft maintenance facility. As used in this
16 paragraph, “qualified aircraft maintenance facility” means a
17 facility operated by an air common carrier including one or more
18 component overhaul support buildings or structures in an area owned,
19 leased, or controlled by the air common carrier, at which there were
20 employed at least two thousand (2,000) full-time-equivalent
21 employees in the preceding year as certified by the Oklahoma
22 Employment Security Commission and which is primarily related to the
23 fabrication, repair, alteration, modification, refurbishing,
24 maintenance, building, or rebuilding of commercial aircraft or
Req. No. 2517 Page 10
1 aircraft parts used in air common carriage. For purposes of this
2 paragraph, “air common carrier” shall also include members of an
3 affiliated group as defined by Section 1504 of the Internal Revenue
4 Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of
5 machinery, tools, supplies, equipment, and related tangible personal
6 property and services used or consumed in the repair, remodeling, or
7 maintenance of aircraft, aircraft engines or aircraft component
8 parts which occur at a qualified aircraft maintenance facility;
9 21. Sales of machinery and equipment purchased and used by
10 persons and establishments primarily engaged in computer services
11 and data processing:
12 a. as defined under Industrial Group Numbers 7372 and
13 7373 of the Standard Industrial Classification (SIC)
14 Manual, latest version, which derive at least fifty
15 percent (50%) of their annual gross revenues from the
16 sale of a product or service to an out-of-state buyer
17 or consumer, and
18 b. as defined under Industrial Group Number 7374 of the
19 SIC Manual, latest version, which derive at least
20 eighty percent (80%) of their annual gross revenues
21 from the sale of a product or service to an out-of-
22 state buyer or consumer.
23 Eligibility for the exemption set out in this paragraph shall be
24 established, subject to review by the Tax Commission, by annually
Req. No. 2517 Page 11
1 filing an affidavit with the Tax Commission stating that the
2 facility so qualifies