Senate Bill No. 44 amends Section 1356 of the Oklahoma sales tax law to broaden the exemptions for sales tax applicable to governmental and nonprofit entities. The bill allows contractors and subcontractors working under contracts with exempt entities to also benefit from sales tax exemptions on tangible personal property or services. To certify their purchases as exempt, these contractors and subcontractors can present documentation, including a copy of the exemption letter from the Oklahoma Tax Commission. The bill also updates statutory language, replacing "Association" with "Alliance" in references to museums, and introduces specific exemptions for various organizations, including educational institutions, fire departments, and cultural organizations.

Furthermore, the bill modernizes tax exemptions by clarifying eligibility criteria for organizations exempt under the Internal Revenue Code of 1986, particularly those under sections 501(c)(3), 501(c)(19), and 501(c)(4). It includes new exemptions for youth athletic teams, neighborhood watch organizations, and nonprofits focused on community service and environmental conservation. The bill also removes outdated terminology, such as changing "handicapped" to "disabled," and establishes a future effective date of November 1, 2025, for the implementation of these changes. Overall, the bill aims to streamline the process for obtaining sales tax exemptions and support organizations that contribute to public welfare in Oklahoma.

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