1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3031 By: Maynard
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6 AS INTRODUCED
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7 An Act relating to revenue and taxation; amending 68
7 O.S. 2021, Section 500.10; which relates to
8 exemptions from motor fuel tax; providing exemption
8 for Oklahoma ambulance districts; and providing an
9 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 500.10, is
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15 amended to read as follows:
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16 Section 500.10 Subject to the procedural requirements and
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17 conditions set out in this section and Sections 500.11 through
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18 500.17 of this title, the following are exempt from the taxes on
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19 motor fuel imposed by Section 500.4 of this title and Section 6
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20 500.4b of Enrolled House Bill No. 1010 of the 2nd Extraordinary
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21 Session of the 56th Oklahoma Legislature this title:
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22 1. Motor fuel for which proof of export is available in the
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23 form of a terminal-issued destination state shipping paper:
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 1 a. exported by a supplier who is licensed in the
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2 destination state, or
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3 b. sold by a supplier to a licensed exporter for
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4 immediate export;
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5 2. Motor fuel which was acquired by an unlicensed exporter and
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6 as to which the tax imposed by Section 500.4 of this title has
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7 previously been paid or accrued and was subsequently exported by
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8 transport truck by or on behalf of the licensed exporter in a
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9 diversion across state boundaries properly reported in conformity
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10 with Section 500.46 of this title;
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11 3. Motor fuel exported out of a bulk plant in this state in a
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12 tank wagon if the destination of that vehicle does not exceed
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13 twenty-five (25) miles from the border of this state and as to which
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14 the tax imposed by Section 500.4 of this title has previously been
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15 paid or accrued, subject to gallonage limits and other conditions
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16 established by the Oklahoma Tax Commission;
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17 4. K-1 kerosene sold at retail through dispensers which have
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18 been designed and constructed to prevent delivery directly from the
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19 dispenser into a vehicle fuel supply tank, and K-1 kerosene sold at
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20 retail through nonbarricaded dispensers in quantities of not more
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21 than twenty-one (21) gallons for use other than for highway
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22 purposes, under such rules as the Tax Commission shall reasonably
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23 require;
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 1 5. Motor fuel sold to the United States or any agency or
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2 instrumentality thereof;
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3 6. Motor fuel used solely and exclusively in district-owned
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4 public school vehicles or FFA and 4-H Club trucks for the purpose of
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5 legally transporting public school children, and motor fuel
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6 purchased by any school district for use exclusively in school buses
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7 leased or hired for the purpose of legally transporting public
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8 school children, or in the operation of vehicles used in driver
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9 training;
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10 7. Motor fuel used solely and exclusively as fuel to propel
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11 motor vehicles on the public roads and highways of this state, when
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12 leased or owned and being operated for the sole benefit of a county,
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13 city, town, a volunteer fire department with a state certification
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14 and rating, rural electric cooperatives, rural water and sewer
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15 districts, rural irrigation districts organized under the Oklahoma
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16 Irrigation District Act, conservancy districts and master
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17 conservancy districts organized under the Conservancy Act of
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18 Oklahoma, rural ambulance service districts, ambulance districts
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19 established under Section 9C of Article X of the Oklahoma
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20 Constitution, or federally recognized Indian tribes;
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21 8. Motor fuel used as fuel for farm tractors or stationary
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22 engines owned or leased and operated by any person and used
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23 exclusively for agricultural purposes, except as to two and eight
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 1 one-hundredths cents ($0.0208) per gallon of gasoline as provided in
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2 subsection C of Section 500.4 of this title;
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3 9. Gasoline, diesel fuel and kerosene sold for use as fuel to
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4 generate power in aircraft engines, whether in aircraft or for
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5 training, testing or research purposes of aircraft engines, except
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6 as to eight one-hundredths of one cent ($0.0008) per gallon as
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7 provided in subsection B of Section 500.4 of this title;
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8 10. Motor fuel sold within an Indian reservation or within
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9 Indian country by a federally recognized Indian tribe to a member of
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10 that tribe and used in motor vehicles owned by that member of the
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11 tribe. This exemption does not apply to sales within an Indian
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12 reservation or within Indian country by a federally recognized
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13 Indian tribe to non-Indian consumers or to Indian consumers who are
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14 not members of the tribe selling the motor fuel;
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15 11. Subject to determination by the Tax Commission, that
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16 portion of diesel fuel:
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17 a. used to operate equipment attached to a motor vehicle,
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18 if the diesel fuel was placed into the fuel supply
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19 tank of a motor vehicle that has a common fuel
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20 reservoir for travel on a highway and for the
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21 operation of equipment, or
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22 b. consumed by the vehicle while the vehicle is parked
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23 off the highways of this state;
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 1 12. Motor fuel acquired by a consumer out of state and carried
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2 into this state, retained within and consumed from the same vehicle
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3 fuel supply tank within which it was imported;
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4 13. Diesel fuel used as heating oil, or in railroad locomotives
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5 or any other motorized flanged-wheel rail equipment, or used for
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6 other nonhighway purposes other than as expressly exempted under
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7 another provision;
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8 14. Motor fuel which was lost or destroyed as a direct result
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9 of a sudden and unexpected casualty;
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10 15. Taxable diesel which had been accidentally contaminated by
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11 dye so as to be unsaleable as highway fuel as proved by proper
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12 documentation;
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13 16. Dyed diesel fuel;
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14 17. Motor fuel sold to the Oklahoma Space Industry Development
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15 Authority or any spaceport user as defined in the Oklahoma Space
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16 Industry Development Act; and
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17 18. Biofuels or biodiesel produced by an individual with crops
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18 grown on property owned by the same individual and used in a vehicle
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19 owned by the same individual on the public roads and highways of
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20 this state.
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21 SECTION 2. This act shall become effective November 1, 2024.
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23 59-2-8631 AO 12/04/23
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