Senate Bill No. 44 amends Section 1356 of the Oklahoma sales tax law to broaden the sales tax exemptions for governmental and nonprofit entities. The bill allows contractors and subcontractors working with exempt entities to also benefit from these exemptions, provided they present appropriate documentation, such as an exemption letter from the Oklahoma Tax Commission. It updates statutory language and introduces specific exemptions for various organizations, including educational institutions and fire departments, while changing references from "Association" to "Alliance" for accredited museums. The bill aims to clarify the exemption process for contractors and subcontractors while preserving the integrity of the sales tax exemption framework.

Additionally, the bill introduces new provisions that exempt sales related to space-related activities, including sales of machinery and equipment for manufacturing space-related items, provided the purchaser signs an affidavit for exclusive use. It emphasizes compliance with the Internal Revenue Code, particularly for nonprofit organizations, and establishes a cap on the total amount of sales tax exemptions claimed, along with a refund process for eligible claims. The bill also specifies eligibility criteria for tax exemptions based on organizations' purposes, ensuring that they are exempt under the Internal Revenue Code of 1986, and outlines a timeline for the implementation of these changes, with some provisions effective as early as November 1, 2021. Overall, the bill seeks to enhance support for the space industry and nonprofit organizations engaged in community service and charitable activities.

Statutes affected:
Introduced: 68-1356
Floor (Senate): 68-1356