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Oklahoma Legislature· HB 1482Referred to Appropriations and Budget Finance Subcommittee

An act relating to revenue and taxation, the official text

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1                   STATE OF OKLAHOMA

2                1st Session of the 60th Legislature (2025)

3 HOUSE BILL 1482               By: West (Tammy)

4

5

6                               AS INTRODUCED

7   An Act relating to revenue and taxation; amending 68

    O.S. 2021, Section 1354, which relates to sales tax;

8   modifying items subject to sales tax to include dues

    and fees paid at certain car washes; providing

9   definition; and providing an effective date.

10

11

12

13

14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

15  SECTION 1.      AMENDATORY  68 O.S. 2021, Section 1354, is

16 amended to read as follows:

17  Section 1354. A. There is hereby levied upon all sales, not

18 otherwise exempted in the Oklahoma Sales Tax Code, an excise tax of

19 four and one-half percent (4.5%) of the gross receipts or gross

20 proceeds of each sale of the following:

21  1. Tangible personal property, except newspapers and

22 periodicals;

23  2. Natural or artificial gas, electricity, ice, steam, or any

24 other utility or public service, except water, sewage and refuse.

    Req. No. 12148                                                  Page 1
1 Provided, the rate of four and one-half percent (4.5%) shall not

2 apply to sales subject to the provisions of paragraph 6 of Section

3 1357 of this title;

4   3. Transportation for hire to persons by common carriers,

5 including railroads both steam and electric, motor transportation

6 companies, pullman car companies, airlines, and other means of

7 transportation for hire, excluding:

8   a. transportation services provided by a tourism service

9   broker which are incidental to the rendition of

10  tourism brokerage services by such broker to a

11  customer regardless of whether or not such

12  transportation services are actually owned and

13  operated by the tourism service broker. For purposes

14  of this subsection, "tourism service broker" means any

15  person, firm, association or corporation or any

16  employee of such person, firm, association or

17  corporation which, for a fee, commission or other

18  valuable consideration, arranges or offers to arrange

19  trips, tours or other vacation or recreational travel

20  plans for a customer, and

21  b. transportation services provided by a funeral

22  establishment to family members and other persons for

23  purposes of conducting a funeral in this state;

24

    Req. No. 12148                                                Page 2
1   4. Intrastate, interstate and international telecommunications

2 services sourced to this state in accordance with Section 1354.30 of

3 this title and ancillary services. Provided:

4   a. the term "telecommunications services" shall mean the

5   electronic transmission, conveyance, or routing of

6   voice, data, audio, video, or any other information or

7   signals to a point, or between or among points. The

8   term "telecommunications services" includes such

9   transmission, conveyance, or routing in which computer

10  processing applications are used to act on the form,

11  code or protocol of the content for purposes of

12  transmission, conveyance or routing without regard to

13  whether such service is referred to as voice-over

14  Internet protocol services or is classified by the

15  Federal Communications Commission as enhanced or value

16  added. "Telecommunications services" do not include:

17  (1) data processing and information services that

18                  allow data to be generated, acquired, stored,

19                  processed, or retrieved and delivered by an

20                  electronic transmission to a purchaser where such

21                  purchaser's primary purpose for the underlying

22                  transaction is the processed data or information,

23  (2) installation or maintenance of wiring or

24                  equipment on a customer's premises,

    Req. No. 12148                                               Page 3
1   (3) tangible personal property,

2   (4) advertising, including but not limited to

3                   directory advertising,

4   (5) billing and collection services provided to third

5                   parties,

6   (6) Internet access services,

7   (7) radio and television audio and video programming

8                   services, regardless of the medium, including the

9                   furnishing of transmission, conveyance and

10                  routing of such services by the programming

11                  service provider. Radio and television audio and

12                  video programming services shall include, but not

13                  be limited to, cable service as defined in 47

14                  U.S.C. 522(6) and audio and video programming

15                  services delivered by commercial mobile radio

16                  service providers, as defined in 47 C.F.R. 20.3,

17  (8) ancillary services, or

18  (9) digital products delivered electronically,

19                  including but not limited to, software, music,

20                  video, reading materials or ring tones,

21  b. the term "interstate" means a "telecommunications

22  service" that originates in one United States state,

23  or a United States territory or possession, and

24

    Req. No. 12148                                               Page 4
1   terminates in a different United States state or a

2   United States territory or possession,

3   c. the term "intrastate" means a telecommunications

4   service that originates in one United States state or

5   a United States territory or possession, and

6   terminates in the same United States state or a United

7   States territory or possession,

8   d. the term "ancillary services" means services that are

9   associated with or incidental to the provision of

10  telecommunications services, including but not limited

11  to "detailed telecommunications billing", "directory

12  assistance", "vertical service", and "voice mail

13  services",

14  e. in the case of a bundled transaction that includes

15  telecommunication service, ancillary service, Internet

16  access or audio or video programming service:

17  (1) if the price is attributable to products that are

18                  taxable and products that are nontaxable, the

19                  portion of the price attributable to the

20                  nontaxable products may be subject to tax unless

21                  the provider can identify by reasonable and

22                  verifiable standards such portion for its books

23                  and records kept in the regular course of

24

    Req. No. 12148                                               Page 5
1                   business for other purposes, including, but not

2                   limited to, nontax purposes, and

3   (2) the provisions of this paragraph shall apply

4                   unless otherwise provided by federal law, and

5   f. a sale of prepaid calling service or prepaid wireless

6   calling service shall be taxable at the time of sale

7   to the customer;

8   5. Telecommunications nonrecurring charges, which means an

9 amount billed for the installation, connection, change or initiation

10 of telecommunications services received by a customer;

11  6. Printing or printed matter of all types, kinds, or character

12 and, except for services of printing, copying or photocopying

13 performed by a privately owned scientific and educational library

14 sustained by monthly or annual dues paid by members sharing the use

15 of such services with students interested in the study of geology,

16 petroleum engineering or related subjects, any service of printing

17 or overprinting, including the copying of information by mimeograph,

18 multigraph, or by otherwise duplicating written or printed matter in

19 any manner, or the production of microfiche containing information

20 from magnetic tapes or other media furnished by customers;

21  7. Service of furnishing rooms by hotel, apartment hotel,

22 public rooming house, motel, public lodging house, or tourist camp;

23  8. Service of furnishing storage or parking privileges by auto

24 hotels or parking lots;

    Req. No. 12148                                                Page 6
1   9. Computer hardware, software, coding sheets, cards, magnetic

2 tapes or other media on which prewritten programs have been coded,

3 punched, or otherwise recorded, including the gross receipts from

4 the licensing of software programs;

5   10. Foods, confections, and all drinks sold or dispensed by

6 hotels, restaurants, or other dispensers, and sold for immediate

7 consumption upon the premises or delivered or carried away from the

8 premises for consumption elsewhere;

9   11. Advertising of all kinds, types, and characters, including

10 any and all devices used for advertising purposes except those

11 specifically exempt pursuant to the provisions of Section 1357 of

12 this title;

13  12. Dues or fees to clubs including free or complimentary dues

14 or fees which have a value equivalent to the charge that would have

15 otherwise been made, including any fees paid for the use of

16 facilities or services rendered at a health spa or club or any

17 similar facility or business;

18  13. Dues or fees for car wash memberships, clubs, or any other

19 type of periodic payment plans for the use of automatic tunnel car

20 washes. The term "automatic tunnel car wash" means washing a

21 vehicle by mechanical means, where the only activities performed by

22 an employee include one or more of the following:

23  a. receiving payment for the transaction,

24

    Req. No. 12148                                                 Page 7
1   b. guiding the vehicle into the entrance or exit of the

2   conveyor,

3   c. applying low-pressure spray of chemicals to the

4   vehicle prior to the cleaning of the vehicle, or

5   d. placing protective tape or covers on the vehicle prior

6   to cleaning.

7   The term "automatic tunnel car wash" does not include self-

8 service car washes without automatic car washing mechanical

9 components or any activity whereby an employee physically touches

10 the vehicle for the purpose of cleaning or restoring the vehicle,

11 enters or cleans any part of the interior of the vehicle, or

12 performs an activity on the vehicle other than those listed above;

13  14. Tickets for admission to or voluntary contributions made to

14 places of amusement, sports, entertainment, exhibition, display, or

15 other recreational events or activities, including free or

16 complimentary admissions which have a value equivalent to the charge

17 that would have otherwise been made; provided, that the state tax

18 generated from the sale of tickets for admission by an aquarium

19 exempt from taxation pursuant to the provisions of the Internal

20 Revenue Code, 26 U.S.C., Section 501(c)(3), or owned or operated by

21 a public trust or political subdivision of this state, shall be

22 collected and disbursed to the nonprofit organization, public trust

23 or political subdivision responsible for the aquarium's operations

24

    Req. No. 12148                                                  Page 8
1 for use by that entity for promoting visitation primarily to out-of-

2 state residents;

3   14. 15. Charges made for the privilege of entering or engaging

4 in any kind of activity, such as tennis, racquetball, or handball,

5 when spectators are charged no admission fee;

6   15. 16. Charges made for the privilege of using items for

7 amusement, sports, entertainment, or recreational activity, such as

8 trampolines or golf carts;

9   16. 17. The rental of equipment for amusement, sports,

10 entertainment, or other recreational activities, such as bowling

11 shoes, skates, golf carts, or other sports or athletic equipment;

12  17. 18. The gross receipts from sales from any vending machine

13 without any deduction for rental to locate the vending machine on

14 the premises of a person who is not the owner or any other

15 deductions therefrom;

16  18. 19. The gross receipts or gross proceeds from the rental or

17 lease of tangible personal property, including rental or lease of

18 personal property when the rental or lease agreement requires the

19 vendor to launder, clean, repair, or otherwise service the rented or

20 leased property on a regular basis, without any deduction for the

21 cost of the service rendered. If the rental or lease charge is

22 based on the retail value of the property at the time of making the

23 rental or lease agreement and the expected life of the property, and

24 the rental or lease charge is separately stated from the service

    Req. No. 12148                                                 Page 9
1 cost in the statement, bill, or invoice delivered to the consumer,

2 the cost of services rendered shall be deducted from the gross

3 receipts or gross proceeds;

4   19. 20. Flowers, plants, shrubs, trees, and other floral items,

5 whether or not produced by the vendor, sold by persons engaged in

6 florist or nursery business in this state, including all orders

7 taken by an Oklahoma business for delivery in another state. All

8 orders taken outside this state for delivery within this state shall

9 not be subject to the taxes levied in this section;

10  20. 21. Tangible personal property sold to persons, peddlers,

11 solicitors, or other salesmen, for resale when there is likelihood

12 that this state will lose tax revenue due to the difficulty of

13 enforcing the provisions of the Oklahoma Sales Tax Code because of:

14  a. the operation of the business,

15  b. the nature of the business,

16  c. the turnover of independent contractors,

17  d. the lack of place of business in which to display a

18  permit or keep records,

19  e. lack of adequate records,

20  f. the fact that the persons are minors or transients,

21  g. the fact that the persons are engaged in service

22  businesses, or

23  h. any other reasonable reason;

24

    Req. No. 12148                                                 Page 10
1  21. 22. Any taxable services and tangible personal property

2 including materials, supplies, and equipment sold to contractors for

3 the purpose of developing and improving real estate even though said

4 real estate is intended for resale as real property, hereby declared

5 to be sales to consumers or users, however, taxable materials,

6 supplies and equipment sold to contractors as provided by this

7 subsection which are purchased as a result of and subsequent to the

8 date of a contract entered into either prior to the effective date

9 of any law increasing the rate of sales tax imposed by this article,

10 or entered into prior to the effective date of an ordinance or other

11 measure increasing the sales tax levy of a political subdivision

12 shall be subject to the rate of sales tax applicable, as of the date

13 such contract was entered into, to sales of such materials, supplies

14 and equipment if such purchases are required in order to complete

15 the contract. Such rate shall be applicable to purchases made

16 pursuant to the contract or any change order under the contract

17 until the contract or any change order has been completed, accepted

18 and the contractor has been discharged from any further obligation

19 under the contract or change order or until two (2) years from the

20 date on which the contract was entered into whichever occurs first.

21 The increased sales tax rate shall be applicable to all such

22 purchases at the time of sale and the contractor shall file a claim

23 for refund before the expiration of three (3) years after the date

24 of contract completion or five (5) years after the contract was

   Req. No. 12148                                                 Page 11
1 entered into, whichever occurs earlier. However, the Oklahoma Tax

2 Commission shall prescribe rules and regulations and shall provide

3 procedures for the refund to a contractor of sales taxes collected

4 on purchases eligible for the lower sales tax rate authorized by

5 this subsection;

6   22. 23. Any taxable services and tangible personal property

7 sold to persons who are primarily engaged in selling their services,

8 such as repairmen, hereby declared to be sales to consumers or

9 users; and

10  23. 24. Canoes and paddleboats as defined in Section 4002 of

11 Title 63 of the Oklahoma Statutes.

12  B. All solicitations or advertisements in print or electronic

13 media by Group Three vendors, for the sale of tangible property to

14 be delivered within this state, shall contain a notice that the sale

15 is subject to Oklahoma sales tax, unless the sale is exempt from

16 such taxation.

17  SECTION 2. This act shall become effective November 1, 2025.

18

19  60-1-12148      AO  12/19/24

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    Req. No. 12148                                                Page 12
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