This bill amends Section 1358.1 of Title 68 of the Oklahoma Statutes, which pertains to the proof of eligibility for sales tax exemptions on agricultural purchases. The key change is the requirement for vendors in Oklahoma to honor agricultural exemption permits from certain states, specifically Texas, Arkansas, Kansas, New Mexico, and Missouri. The bill defines an "out-of-state agricultural exemption permit or equivalent authorization" and mandates that vendors treat these permits as valid proof of eligibility for sales tax exemptions, similar to Oklahoma-issued permits. Additionally, the Oklahoma Tax Commission is directed to create rules for administering these provisions, including verification procedures for out-of-state permits.

Furthermore, the bill establishes penalties for misuse of agricultural exemption permits, specifically imposing a $500 fine for purchasers who use these permits to buy items not authorized for exemption. The effective date for this legislation is set for November 1, 2026. Overall, the bill aims to streamline the process for agricultural tax exemptions and ensure that out-of-state farmers can benefit from similar tax relief when operating in Oklahoma.