1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1502 By: Rader
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6 AS INTRODUCED
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7 An Act relating to sales tax; amending 68 O.S. 2021,
7 Section 1356, as last amended by Section 1, Chapter
8 394, O.S.L. 2022 (68 O.S. Supp. 2023, Section 1356),
8 which relates to sales tax exemption; providing
9 exemption to entities in connection with the
9 performance of any contract with an exempt entity for
10 certain property and services; updating statutory
10 language; 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 1356, as
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15 last amended by Section 1, Chapter 394, O.S.L. 2022 (68 O.S. Supp.
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16 2023, Section 1356), is amended to read as follows:
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17 Section 1356. Exemptions - Governmental and nonprofit entities.
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18 There are hereby specifically exempted from the tax levied by
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19 Section 1350 et seq. of this title:
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20 A. All sales to contractors in connection with the performance
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21 of any contract with any entity exempted pursuant to subsection B of
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22 this section shall be exempted from the tax levied by Section 1350
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23 et seq. of this title in the same manner as the exempt entity;
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 1 B. 1. Sale Sales of tangible personal property or services to
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2 the United States government or to the State of Oklahoma, any
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3 political subdivision of this state or any agency of a political
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4 subdivision of this state; provided, all sales to contractors in
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5 connection with the performance of any contract with the United
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6 States government, State of Oklahoma or any of its political
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7 subdivisions shall not be exempted from the tax levied by Section
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8 1350 et seq. of this title, except as hereinafter provided;
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9 2. Sales of property to agents appointed by or under contract
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10 with agencies or instrumentalities of the United States government
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11 if ownership and possession of such property transfers immediately
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12 to the United States government;
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13 3. Sales of property to agents appointed by or under contract
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14 with a political subdivision of this state if the sale of such
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15 property is associated with the development of a qualified federal
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16 facility, as provided in the Oklahoma Federal Facilities Development
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17 Act, and if ownership and possession of such property transfers
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18 immediately to the political subdivision or the state;
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19 4. Sales made directly by county, district or state fair
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20 authorities of this state, upon the premises of the fair authority,
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21 for the sole benefit of the fair authority or sales of admission
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22 tickets to such fairs or fair events at any location in the state
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23 authorized by county, district or state fair authorities; provided,
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24 the exemption provided by this paragraph for admission tickets to
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 1 fair events shall apply only to any portion of the admission price
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2 that is retained by or distributed to the fair authority. As used
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3 in this paragraph, “fair event” shall be limited to an event held on
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4 the premises of the fair authority in conjunction with and during
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5 the time period of a county, district or state fair;
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6 5. Sale Sales of food in cafeterias or lunchrooms of elementary
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7 schools, high schools, colleges or universities which are operated
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8 primarily for teachers and pupils and are not operated primarily for
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9 the public or for profit;
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10 6. Dues paid to fraternal, religious, civic, charitable or
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11 educational societies or organizations by regular members thereof,
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12 provided, such societies or organizations operate under what is
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13 commonly termed the lodge plan or system, and provided such
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14 societies or organizations do not operate for a profit which inures
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15 to the benefit of any individual member or members thereof to the
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16 exclusion of other members and dues paid monthly or annually to
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17 privately owned scientific and educational libraries by members
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18 sharing the use of services rendered by such libraries with students
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19 interested in the study of geology, petroleum engineering or related
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20 subjects;
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21 7. Sale Sales of tangible personal property or services to or
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22 by churches, except sales made in the course of business for profit
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23 or savings, competing with other persons engaged in the same or a
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24 similar business or sale sales of tangible personal property or
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 1 services by an organization exempt from federal income tax pursuant
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2 to Section 501(c)(3) of the Internal Revenue Code of 1986, as
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3 amended, made on behalf of or at the request of a church or churches
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4 if the sale of such property is conducted not more than once each
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5 calendar year for a period not to exceed three (3) days by the
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6 organization and proceeds from the sale of such property are used by
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7 the church or churches or by the organization for charitable
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8 purposes;
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9 8. The amount of proceeds received from the sale sales of
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10 admission tickets which is separately stated on the ticket of
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11 admission for the repayment of money borrowed by any accredited
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12 state-supported college or university or any public trust of which a
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13 county in this state is the beneficiary, for the purpose of
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14 constructing or enlarging any facility to be used for the staging of
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15 an athletic event, a theatrical production, or any other form of
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16 entertainment, edification or cultural cultivation to which entry is
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17 gained with a paid admission ticket. Such facilities include, but
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18 are not limited to, athletic fields, athletic stadiums, field
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19 houses, amphitheaters and theaters. To be eligible for this sales
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20 tax exemption, the amount separately stated on the admission ticket
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21 shall be a surcharge which is imposed, collected and used for the
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22 sole purpose of servicing or aiding in the servicing of debt
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23 incurred by the college or university to effect the capital
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24 improvements hereinbefore described;
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 1 9. Sales of tangible personal property or services to the
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2 council organizations or similar state supervisory organizations of
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3 the Boy Scouts of America, Girl Scouts of the U.S.A. and Camp Fire
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4 USA;
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5 10. Sale Sales of tangible personal property or services to any
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6 county, municipality, rural water district, public school district,
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7 city-county library system, the institutions of The Oklahoma State
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8 System of Higher Education, the Grand River Dam Authority, the
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9 Northeast Oklahoma Public Facilities Authority, the Oklahoma
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10 Municipal Power Authority, City of Tulsa-Rogers County Port
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11 Authority, Muskogee City-County Port Authority, the Oklahoma
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12 Department of Veterans Affairs, the Broken Bow Economic Development
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13 Authority, Ardmore Development Authority, Durant Industrial
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14 Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
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15 Master Conservancy District, Arbuckle Master Conservancy District,
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16 Fort Cobb Reservoir Master Conservancy District, Foss Reservoir
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17 Master Conservancy District, Mountain Park Master Conservancy
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18 District, Waurika Lake Master Conservancy District and the Office of
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19 Management and Enterprise Services only when carrying out a public
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20 construction contract on behalf of the Oklahoma Department of
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21 Veterans Affairs, and effective July 1, 2022, the University
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22 Hospitals Trust, or to any person with whom any of the above-named
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23 subdivisions or agencies of this state has duly entered into a
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24 public contract pursuant to law, necessary for carrying out such
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 1 public contract or to any subcontractor to such a public contract.
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2 Any person making purchases on behalf of such subdivision or agency
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3 of this state shall certify, in writing, on the copy of the invoice
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4 or sales ticket to be retained by the vendor that the purchases are
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5 made for and on behalf of such subdivision or agency of this state
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6 and set out the name of such public subdivision or agency. Any
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7 person who wrongfully or erroneously certifies that purchases are
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8 for any of the above-named subdivisions or agencies of this state or
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9 who otherwise violates this section shall be guilty of a misdemeanor
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10 and upon conviction thereof shall be fined an amount equal to double
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11 the amount of sales tax involved or incarcerated for not more than
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12 sixty (60) days or both;
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13 11. Sales of tangible personal property or services to private
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14 institutions of higher education and private elementary and
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15 secondary institutions of education accredited by the State
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16 Department of Education or registered by the State Board of
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17 Education for purposes of participating in federal programs or
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18 accredited as defined by the Oklahoma State Regents for Higher
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19 Education which are exempt from taxation pursuant to the provisions
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20 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(3) including
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21 materials, supplies and equipment used in the construction and
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22 improvement of buildings and other structures owned by the
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23 institutions and operated for educational purposes.
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 1 Any person, firm, agency or entity making purchases on behalf of
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2 any institution, agency or subdivision in this state, shall certify
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3 in writing, on the copy of the invoice or sales ticket the nature of
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4 the purchases, and violation of this paragraph shall be a
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5 misdemeanor as set forth in paragraph 10 of this section;
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6 12. Tuition and educational fees paid to private institutions
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7 of higher education and private elementary and secondary
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8 institutions of education accredited by the State Department of
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9 Education or registered by the State Board of Education for purposes
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10 of participating in federal programs or accredited as defined by the
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11 Oklahoma State Regents for Higher Education which are exempt from
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12 taxation pursuant to the provisions of the Internal Revenue Code, 26
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13 U.S.C., Section 501(c)(3);
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14 13. a. Sales of tangible personal property made by:
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15 (1) a public school,
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16 (2) a private school offering instruction for grade
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17 levels kindergarten through twelfth grade,
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18 (3) a public school district,
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19 (4) a public or private school board,
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20 (5) a public or private school student group or
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21 organization,
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22 (6) a parent-teacher association or organization
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23 other than as specified in subparagraph b of this
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24 paragraph, or
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 1 (7) public or private school personnel for purposes
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2 of raising funds for the benefit of a public or
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3 private school, public school district, public or
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4 private school board or public or private school
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5 student group or organization, or
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6 b. Sales of tangible personal property made by or to
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7 nonprofit parent-teacher associations or organizations
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8 exempt from taxation pursuant to the provisions of the
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9 Internal Revenue Code, 26 U.S.C., Section 501(c)(3),
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10 nonprofit local public or private school foundations
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11 which solicit money or property in the name of any
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12 public or private school or public school district.
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13 The exemption provided by this paragraph for sales made by a
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14 public or private school shall be limited to those public or private
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15 schools accredited by the State Department of Education or
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16 registered by the State Board of Education for purposes of
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17 participating in federal programs. Sale Sales of tangible personal
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18 property in this paragraph shall include sale sales of admission
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19 tickets and concessions at athletic events;
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20 14. Sales of tangible personal property by:
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21 a. local 4-H clubs,
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22 b. county, regional or state 4-H councils,
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23 c. county, regional or state 4-H committees,
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24 d. 4-H leader associations,
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 1 e. county, regional or state 4-H foundations, and
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2 f. authorized 4-H camps and training centers.
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3 The exemption provided by this paragraph shall be limited to
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4 sales for the purpose of raising funds for the benefit of such
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5 organizations. Sale Sales of tangible personal property exempted by
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6 this paragraph shall include sale sales of admission tickets;
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7 15. The first Seventy-five Thousand Dollars ($75,000.00) each
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8 year from sale sales of tickets and concessions at athletic events
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9 by each organization exempt from taxation pursuant to the provisions
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10 of the Internal Revenue Code, 26 U.S.C., Section 501(c)(4);
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11 16. Sales of tangible personal property or services to any
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12 person with whom the Oklahoma Tourism and Recreation Department has
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13 entered into a public contract and which is necessary for carrying
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14 out such contract to assist the Department in the development and
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15 production of advertising, promotion, publicity and public relations
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16 programs;
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17 17. Sales of tangible personal property or services to fire
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18 departments organized pursuant to Section 592 of Title 18 of the
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19 Oklahoma Statutes which items are to be used for the purposes of the
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20 fire department. Any person making purchases on behalf of any such
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21 fire department shall certify, in writing, on the copy of the
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22 invoice or sales ticket to be retained by the vendor that the
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23 purchases are made for and on behalf of such fire department and set
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24 out the name of such fire department. Any person who wrongfully or
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 1 erroneously certifies that the purchases are for any such fire
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2 department or who otherwise violates the provisions of this section
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3 shall be deemed guilty of a misdemeanor and upon conviction thereof,
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4 shall be fined an amount equal to double the amount of sales tax
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5 involved or incarcerated for not more than sixty (60) days, or both;
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6 18. Complimentary or free tickets for admission to places of
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7 amusement, sports, entertainment, exhibition, display or other
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8 recreational events or activities which are issued through a box
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9 office or other entity which is operated by a state institution of
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10 higher education with institutional employees or by a municipality
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11 with municipal employees;
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12 19. The first Fifteen Thousand Dollars ($15,000.00) each year
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13 from sales of tangible personal property by fire departments
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14 organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes
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15 for the purposes of raising funds for the benefit of the fire
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16 department. Fire departments selling tangible personal property for
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17 the purposes of raising funds shall be limited to no more than six
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18 (6) days each year to raise such funds in order to receive the
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19 exemption granted by this paragraph;
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20 20. Sales of tangible personal property or services to any Boys
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21 & Girls Clubs of America affiliate in this state which is not