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1 STATE OF OKLAHOMA
1
2 2nd Session of the 60th Legislature (2026)
2
3 SENATE BILL 1576 By: Hamilton
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to sales tax; amending 68 O.S. 2021,
7 Section 1357, as last amended by Section 1, Chapter
8 391, O.S.L. 2025 (68 O.S. Supp. 2025, Section 1357),
8 which relates to exemptions; providing sales tax
9 exemption for certain individuals retired from law
9 enforcement duty; requiring submission of application
10 and verification to be eligible for exemption;
10 requiring the Oklahoma Tax Commission to prescribe
11 form and verify applicants; requiring the Commission
11 to issue exemption card upon verification;
12 authorizing the individual to resubmit application
12 prior to expiration of exemption; prescribing
13 reissuance of exemption card; authorizing the
13 Commission to promulgate rules; updating statutory
14 reference; updating statutory language; and providing
14 an effective date.
15
15
16
16
17 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
17
18 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
18
19 last amended by Section 1, Chapter 391, O.S.L. 2025 (68 O.S. Supp.
19
20 2025, Section 1357), is amended to read as follows:
20
21 Section 1357. Exemptions � General.
21
22 There are hereby specifically exempted from the tax levied by
22
23 the Oklahoma Sales Tax Code:
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24
24
Req. No. 2861 Page 1
1 1. Transportation of school pupils to and from elementary
1
2 schools or high schools in motor or other vehicles;
2
3 2. Transportation of persons where the fare of each person does
3
4 not exceed One Dollar ($1.00), or local transportation of persons
4
5 within the corporate limits of a municipality except by taxicabs;
5
6 3. Sales for resale to persons engaged in the business of
6
7 reselling the articles purchased, whether within or without the
7
8 state, provided that such sales to residents of this state are made
8
9 to persons to whom sales tax permits have been issued as provided in
9
10 the Oklahoma Sales Tax Code. This exemption shall not apply to the
10
11 sales of articles made to persons holding permits when such persons
11
12 purchase items for their use and which they are not regularly
12
13 engaged in the business of reselling; neither shall this exemption
13
14 apply to sales of tangible personal property to peddlers, solicitors
14
15 and other salespersons who do not have an established place of
15
16 business and a sales tax permit. The exemption provided by this
16
17 paragraph shall apply to sales of motor fuel or diesel fuel to a
17
18 Group Five vendor, but the use of such motor fuel or diesel fuel by
18
19 the Group Five vendor shall not be exempt from the tax levied by the
19
20 Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel
20
21 is exempt from sales tax when the motor fuel is for shipment outside
21
22 this state and consumed by a common carrier by rail in the conduct
22
23 of its business. The sales tax shall apply to the purchase of motor
23
24 fuel or diesel fuel in Oklahoma by a common carrier by rail when
24
Req. No. 2861 Page 2
1 such motor fuel is purchased for fueling, within this state, of any
1
2 locomotive or other motorized flanged wheel equipment;
2
3 4. Sales of advertising space in newspapers and periodicals;
3
4 5. Sales of programs relating to sporting and entertainment
4
5 events, and sales of advertising on billboards (including, including
5
6 signage, posters, panels, marquees or on other similar surfaces,
6
7 whether indoors or outdoors) outdoors, or in programs relating to
7
8 sporting and entertainment events, and sales of any advertising, to
8
9 be displayed at or in connection with a sporting event, via the
9
10 Internet, electronic display devices or through public address or
10
11 broadcast systems. The exemption authorized by this paragraph shall
11
12 be effective for all sales made on or after January 1, 2001;
12
13 6. Sales of any advertising, other than the advertising
13
14 described by paragraph 5 of this section, via the Internet,
14
15 electronic display devices or through the electronic media including
15
16 radio, public address or broadcast systems, television (whether,
16
17 whether through closed circuit broadcasting systems or otherwise)
17
18 otherwise, and cable and satellite television, and the servicing of
18
19 any advertising devices;
19
20 7. Eggs, feed, supplies, machinery, and equipment purchased by
20
21 persons regularly engaged in the business of raising worms, fish,
21
22 any insect, or any other form of terrestrial or aquatic animal life
22
23 and used for the purpose of raising same for marketing. This
23
24 exemption shall only be granted and extended to the purchaser when
24
Req. No. 2861 Page 3
1 the items are to be used and in fact are used in the raising of
1
2 animal life as set out above. Each purchaser shall certify, in
2
3 writing, on the invoice or sales ticket retained by the vendor that
3
4 the purchaser is regularly engaged in the business of raising such
4
5 animal life and that the items purchased will be used only in such
5
6 business. The vendor shall certify to the Oklahoma Tax Commission
6
7 that the price of the items has been reduced to grant the full
7
8 benefit of the exemption. Violation hereof by the purchaser or
8
9 vendor shall be a misdemeanor;
9
10 8. Sale Sales of natural or artificial gas and electricity, and
10
11 associated delivery or transmission services, when sold exclusively
11
12 for residential use. Provided, this exemption shall not apply to
12
13 any sales tax levied by a city or town, or a county or any other
13
14 jurisdiction in this state;
14
15 9. In addition to the exemptions authorized by Section 1357.6
15
16 of this title, sales of drugs sold pursuant to a prescription
16
17 written for the treatment of human beings by a person licensed to
17
18 prescribe the drugs, and sales of insulin and medical oxygen.
18
19 Provided, this exemption shall not apply to over-the-counter drugs;
19
20 10. Transfers of title or possession of empty, partially
20
21 filled, or filled returnable oil and chemical drums to any person
21
22 who is not regularly engaged in the business of selling, reselling
22
23 or otherwise transferring empty, partially filled or filled
23
24 returnable oil drums;
24
Req. No. 2861 Page 4
1 11. Sales of one-way utensils, paper napkins, paper cups,
1
2 disposable hot containers, and other one-way carry out materials to
2
3 a vendor of meals or beverages;
3
4 12. Sales of food or food products for home consumption which
4
5 are purchased in whole or in part with coupons issued pursuant to
5
6 the federal food stamp program as authorized by Sections 2011
6
7 through 2036d of Title 7 of the United States Code, as to that
7
8 portion purchased with such coupons. The exemption provided for
8
9 such sales shall be inapplicable to such sales upon the effective
9
10 date of any federal law that removes the requirement of the
10
11 exemption as a condition for participation by the state in the
11
12 federal food stamp program;
12
13 13. Sales of food or food products, or any equipment or
13
14 supplies used in the preparation of the food or food products to or
14
15 by an organization which:
15
16 a. is exempt from taxation pursuant to the provisions of
16
17 Section 501(c)(3) of the Internal Revenue Code of
17
18 1986, as amended, 26 U.S.C., Section 501(c)(3), and
18
19 which provides and delivers prepared meals for home
19
20 consumption to elderly or homebound persons as part of
20
21 a program commonly known as "Meals on Wheels" or
21
22 "Mobile Meals", or
22
23 b. is exempt from taxation pursuant to the provisions of
23
24 Section 501(c)(3) of the Internal Revenue Code of
24
Req. No. 2861 Page 5
1 1986, as amended, 26 U.S.C., Section 501(c)(3), and
1
2 which receives federal funding pursuant to the Older
2
3 Americans Act of 1965, as amended, for the purpose of
3
4 providing nutrition programs for the care and benefit
4
5 of elderly persons;
5
6 14. a. Sales of tangible personal property or services to or
6
7 by organizations which are exempt from taxation
7
8 pursuant to the provisions of Section 501(c)(3) of the
8
9 Internal Revenue Code of 1986, as amended, 26 U.S.C.,
9
10 Section 501(c)(3), and:
10
11 (1) are primarily involved in the collection and
11
12 distribution of food and other household products
12
13 to other organizations that facilitate the
13
14 distribution of such products to the needy and
14
15 such distributee organizations are exempt from
15
16 taxation pursuant to the provisions of Section
16
17 501(c)(3) of the Internal Revenue Code of 1986,
17
18 as amended, 26 U.S.C., Section 501(c)(3), or
18
19 (2) facilitate the distribution of such products to
19
20 the needy.
20
21 b. Sales made in the course of business for profit or
21
22 savings, competing with other persons engaged in the
22
23 same or similar business shall not be exempt under
23
24 this paragraph;
24
Req. No. 2861 Page 6
1 15. Sales of tangible personal property or services to
1
2 children's homes which are located on church-owned property and are
2
3 operated by organizations exempt from taxation pursuant to the
3
4 provisions of the Internal Revenue Code of 1986, as amended, 26
4
5 U.S.C., Section 501(c)(3);
5
6 16. Sales of computers, data processing equipment, related
6
7 peripherals, and telephone, telegraph or telecommunications service,
7
8 and equipment for use in a qualified aircraft maintenance or
8
9 manufacturing facility. For purposes of this paragraph, "qualified
9
10 aircraft maintenance or manufacturing facility" means a new or
10
11 expanding facility primarily engaged in aircraft repair, building or
11
12 rebuilding, whether or not on a factory basis, whose total cost of
12
13 construction exceeds the sum of Five Million Dollars ($5,000,000.00)
13
14 and which employs at least two hundred fifty new full-time-
14
15 equivalent employees, as certified by the Oklahoma Employment
15
16 Security Commission, upon completion of the facility. In order to
16
17 qualify for the exemption provided for by this paragraph, the cost
17
18 of the items purchased by the qualified aircraft maintenance or
18
19 manufacturing facility shall equal or exceed the sum of Two Million
19
20 Dollars ($2,000,000.00);
20
21 17. Sales of tangible personal property consumed or
21
22 incorporated in the construction or expansion of a qualified
22
23 aircraft maintenance or manufacturing facility as defined in
23
24 paragraph 16 of this section. For purposes of this paragraph, sales
24
Req. No. 2861 Page 7
1 made to a contractor or subcontractor that has previously entered
1
2 into a contractual relationship with a qualified aircraft
2
3 maintenance or manufacturing facility for construction or expansion
3
4 of such a facility shall be considered sales made to a qualified
4
5 aircraft maintenance or manufacturing facility;
5
6 18. Sales of the following telecommunications services:
6
7 a. interstate and international 800 service. "800
7
8 service" means a telecommunications service that
8
9 allows a caller to dial a toll-free number without
9
10 incurring a charge for the call. The service is
10
11 typically marketed under the name "800", "855", "866",
11
12 "877" and "888" toll-free calling, and any subsequent
12
13 numbers designated by the Federal Communications
13
14 Commission,
14
15 b. interstate and international 900 service. "900
15
16 service" means an inbound toll telecommunications
16
17 service purchased by a subscriber that allows the
17
18 subscriber's customers to call in to the subscriber's
18
19 prerecorded announcement or live service. 900 service
19
20 does not include the charge for: collection services
20
21 provided by the seller of the telecommunications
21
22 services to the subscriber, or service or product sold
22
23 by the subscriber to the subscriber's customer. The
23
24 service is typically marketed under the name "900"
24
Req. No. 2861 Page 8
1 service, and any subsequent numbers designated by the
1
2 Federal Communications Commission,
2
3 c. interstate and international private communications
3
4 service. "Private communications service" means a
4
5 telecommunications service that entitles the customer
5
6 to exclusive or priority use of a communications
6
7 channel or group of channels between or among
7
8 termination points, regardless of the manner in which
8
9 such channel or channels are connected, and includes
9
10 switching capacity, extension lines, stations and any
10
11 other associated services that are provided in
11
12 connection with the use of such channel or channels,
12
13 d. value-added nonvoice data service. "Value-added
13
14 nonvoice data service" means a service that otherwise
14
15 meets the definition of telecommunications services in
15
16 which computer processing applications are used to act
16
17 on the form, content, code or protocol of the
17
18 information or data primarily for a purpose other than
18
19 transmission, conveyance, or routing,
19
20 e. interstate and international telecommunications
20
21 service which is:
21
22 (1) rendered by a company for private use within its
22
23 organization, or
23
24
24
Req. No. 2861 Page 9
1 (2) used, allocated or distributed by a company to
1
2 its affiliated group,
2
3 f. regulatory assessments and charges including charges
3
4 to fund the Oklahoma Universal Service Fund, the
4
5 Oklahoma Lifeline Fund and the Oklahoma High Cost
5
6 Fund, and
6
7 g. telecommunications nonrecurring charges including, but
7
8 not limited to, the installation, connection, change,
8
9 or initiation of telecommunications services which are
9
10 not associated with a retail consumer sale;
10
11 19. Sales of railroad track spikes manufactured and sold for
11
12 use in this state in the construction or repair of railroad tracks,
12
13 switches, sidings, and turnouts;
13
14 20. Sales of aircraft and aircraft parts provided such sales
14
15 occur at a qualified aircraft maintenance facility. As used in this
15
16 paragraph, "qualified aircraft maintenance facility" means a
16
17 facility operated by an air common carrier including one or more
17
18 component overhaul support buildings or structures in an area owned,
18
19 leased, or controlled by the air common carrier, at which there were
19
20 employed at least two thousand full-time-equivalent employees in the
20
21 preceding year as certified by the Oklahoma Employment Security
21
22 Commission and which is primarily related to the fabrication,
22
23 repair, alteration, modification, refurbishing, maintenance,
23
24 building, or rebuilding of commercial aircraft or aircraft parts
24
Req. No. 2861 Page 10
1 used in air common carriage. For purposes of this paragraph, "air
1
2 common carrier" shall also include members of an affiliated group as
2
3 defined by Section 1504 of the Internal Revenue Code of 1986, as
3
4 amended, 26 U.S.C., Section 1504. Beginning July 1, 2012, the
4
5 exemption shall include sales of machinery, tools, supplies,
5
6 equipment, and related tangible personal property and services used
6
7 or consumed in the repair, remodeling, or maintenance of aircraft,
7
8 aircraft engines or aircraft component parts which occur at a
8
9 qualified aircraft maintenance facility;
9
10 21. Sales of machinery and equipment purchased and used by
10
11 persons and establishments primarily engaged in computer services
11
12 and data processing:
12
13 a. as defined under Industry Group Numbers 7372 and 7373
13
14 of the Standard Industrial Classification (SIC)
14
15 Manual, latest version, which derive at least fifty
15
16 percent (50%) of their annual gross revenues from the
16
17 sale of a product or service to an out-of-state buyer
17
18 or consumer, and
18
19 b. as defined under Industry Group Number 7374 of the SIC
19
20 Manual, latest version, which derive at least eighty
20
21 percent (80%) of their annual gross revenues from the
21
22 sale of a product or service to an out-of-state buyer
22
23 or consumer.
23
24
24
Req. No. 2861 Page 11
1 Eligibility for the exemption set out in this paragraph shall be
1
2 established, subject to review by the Tax Commission, by annually
2
3 filing an affidavit with the Tax Commission stating that the
3
4 facility so qualifies and such information as required by the Tax
4
5 Commission. For purposes of determining whether annual gross
5
6 revenues are derived from sales to out-of-state buyers or consumers,
6
7 all sales to the federal government shall be considered to be to an
7
8 out-of-state buyer or consumer;
8
9 22. Sales of prosthetic devices to an individual for use by
9
10 such individual. For purposes of this paragraph, "prosthetic
10
11 device" shall have the same meaning as provided in Section 1357.6 of
11
12 this title, but shall not include corrective eye glasses, contact
12
13 lenses, or hearing aids;
13
14 23. Sales of tangible personal property or services to a motion
14
15 picture or television production company to be used or consumed in
15
16 connection with an eligible production. For purposes of this
16
17 paragraph, "eligible production" means a documentary, special, music
17
18 video or a television commercial or television program that will
18
19 serve as a pilot for or be a segment of an ongoing dramatic or
19
20 situation comedy series filmed or taped for network or national or
20
21 regional syndication or a feature-length motion picture intended for
21
22 theatrical release or for network or national or regional
22
23 syndication or broadcast. The provisions of this paragraph shall
23
24 apply to sales occurring on or after July 1, 1996. In order to
24
Req. No. 2861 Page 12
1 qualify for the exemption, the motion picture or television
1
2 production company shall file any documentation and information
2
3 required to be submitted pursuant to rules promulgated by the Tax
3
4 Commission;
4
5 24. Sales of diesel fuel sold for consumption by commercial
5
6 vessels, barges and other commercial watercraft;
6
7 25. Sales of tangible personal property or services to tax-
7
8 exempt independent nonprofit biomedical research foundations that
8
9 provide educational programs for Oklahoma science students and
9
10 teachers and to tax-exempt independent nonprofit community blood
10
11 banks headquartered in this state;
11
12 26. Effective May 6, 1992, sales of wireless telecommunications
12
13 equipment to a vendor who subsequently transfers the equipment at no
13
14 charge or for a discounted charge to a consumer as part of a
14
15 promotional package or as an inducement to commence or continue a
15
16 contract for wireless telecommunications services;
16
17 27. Effective January 1, 1991, leases of rail transportation
17
18 cars to haul coal to coal-fired plants located in this state which
18
19 generate electric power;
19
20 28. Beginning July 1, 2005, sales of aircraft engine repairs,
20
21 modification, and replacement parts, sales of aircraft frame repairs
21
22 and modification, aircraft interior modification, and paint, and
22
23 sales of services employed in the repair, modification, and
23
24
24
Req. No. 2861 Page 13
1 replacement of parts of aircraft engines, aircraft frame and
1
2 interior repair and modification, and paint;
2
3 29. Sales of materials and supplies to the owner or operator of
3
4 a ship, motor vessel, or barge that is used in interstate or
4
5 international commerce if the materials and supplies:
5
6 a. are loaded on the ship, motor vessel, or barge and
6
7 used in the maintenance and operation of the ship,
7
8 motor vessel, or barge, or
8
9 b. enter into and become component parts of the ship,
9
10 motor vessel, or barge;
10
11 30. Sales of tangible personal property made at estate sales at
11
12 which such property is offered for sale on the premises of the
12
13 former residence of the decedent by a person who is not required to
13
14 be licensed pursuant to the Transient Merchant Licensing Act, or who
14
15 is not otherwise required to obtain a sales tax permit for the sale
15
16 of such property pursuant to the provisions of Section 1364 of this
16
17 title; provided:
17
18 a. such sale or event may not be held for a period
18
19 exceeding three (3) consecutive days,
19
20 b. the sale must be conducted within six (6) months of
20
21 the date of death of the decedent, and
21
22 c. the exemption allowed by this paragraph shall not be
22
23 allowed for property that was not part of the
23
24 decedent's estate;
24
Req. No. 2861 Page 14
1 31. Beginning January 1, 2004, sales of electricity and
1
2 associated delivery and transmission services, when sold exclusively
2
3 for use by an oil and gas operator for reservoir dewatering projects
3
4 and associated operations commencing on or after July 1, 2003, in
4
5 which the initial water-to-oil ratio is greater than or equal to
5
6 five-to-one water-to-oil, and such oil and gas development projects
6
7 have been classified by the Corporation Commission as a reservoir
7
8 dewatering unit;
8
9 32. Sales of prewritten computer software that is delivered
9
10 electronically. For purposes of this paragraph, "delivered
10
11 electronically" means delivered to the purchaser by means other than
11
12 tangible storage media;
12
13 33. Sales of modular dwelling units when built at a production
13
14 facility and moved in whole or in parts, to be assembled on-site,
14
15 and permanently affixed to the real property and used for
15
16 residential or commercial purposes. The exemption provided by this
16
17 paragraph shall equal forty-five percent (45%) of the total sales
17
18 price of the modular dwelling unit. For purposes of this paragraph,
18
19 "modular dwelling unit" means a structure that is not subject to the
19
20 motor vehicle excise tax imposed pursuant to Section 2103 of this
20
21 title;
21
22 34. Sales of tangible personal property or services to:
22
23 a. persons who are residents of Oklahoma and have been
23
24 honorably discharged from active service in any branch
24
Req. No. 2861 Page 15
1 of the Armed Forces of the United States or Oklahoma
1
2 National Guard and who have been certified by the
2
3 United States Department of Veterans Affairs or its
3
4 successor to be in receipt of disability compensation
4
5 at the one-hundred-percent rate and the disability
5
6 shall be permanent and have been sustained through
6
7 military action or accident or resulting from disease
7
8 contracted while in such active service and registered
8
9 with the veterans registry created by the Oklahoma
9
10 Department of Veterans Affairs, or
10
11 b. the surviving spouse of the person in subparagraph a
11
12 of this paragraph if the person is deceased and the
12
13 spouse has not remarried and the surviving spouse of a
13
14 person who is determined by the United States
14
15 Department of Defense or any branch of the United
15
16 States military to have died while in the line of duty
16
17 if the spouse has not remarried. Sales for the
17
18 benefit of an eligible person to a spouse of the
18
19 eligible person or to a member of the household in
19
20 which the eligible person resides and who is
20
21 authorized to make purchases on the person's behalf,
21
22 when such eligible person is not present at the sale,
22
23 shall also be exempt for purposes of this paragraph.
23
24 The Oklahoma Tax Commission shall issue a separate
24
Req. No. 2861 Page 16
1 exemption card to a spouse of an eligible person or to
1
2 a member of the household in which the eligible person
2
3 resides who is authorized to make purchases on the
3
4 person's behalf, if requested by the eligible person.
4
5 Sales qualifying for the exemption authorized by this
5
6 paragraph shall not exceed Twenty-five Thousand
6
7 Dollars ($25,000.00) per year per individual while the
7
8 disabled veteran is living. Sales qualifying for the
8
9 exemption authorized by this paragraph shall not
9
10 exceed One Thousand Dollars ($1,000.00) per year for
10
11 an unremarried surviving spouse. Upon request of the
11
12 Tax Commission, a person asserting or claiming the
12
13 exemption authorized by this paragraph shall provide a
13
14 statement, executed under oath, that the total sales
14
15 amounts for which the exemption is applicable have not
15
16 exceeded Twenty-five Thousand Dollars ($25,000.00) per
16
17 year per living disabled veteran or One Thousand
17
18 Dollars ($1,000.00) per year for an unremarried
18
19 surviving spouse. If the amount of such exempt sales
19
20 exceeds such amount, the sales tax in excess of the
20
21 authorized amount shall be treated as a direct sales
21
22 tax liability and may be recovered by the Tax
22
23 Commission in the same manner provided by law for
23
24 other taxes including penalty and interest. The Tax
24
Req. No. 2861 Page 17
1 Commission shall promulgate any rules necessary to
1
2 implement the provisions of this paragraph, which
2
3 shall include rules providing for the disclosure of
3
4 information about persons eligible for the exemption
4
5 authorized in this paragraph to the Oklahoma
5
6 Department of Veterans Affairs, as authorized in
6
7 Section 205 of this title. For purposes of the
7
8 exemption authorized by this subparagraph, if the
8
9 disability determination that would have been made
9
10 while the disabled veteran was still living is not
10
11 made final until after the death of the disabled
11
12 veteran, the exemption authorized by this subparagraph
12
13 may still be claimed by the surviving spouse;
13
14 35. Sales of electricity to the operator, specifically
14
15 designated by the Corporation Commission, of a spacing unit or lease
15
16 from which oil is produced or attempted to be produced using
16
17 enhanced recovery methods including, but not limited to, increased
17
18 pressure in a producing formation through the use of water or
18
19 saltwater if the electrical usage is associated with and necessary
19
20 for the operation of equipment required to inject or circulate
20
21 fluids in a producing formation for the purpose of forcing oil or
21
22 petroleum into a wellbore for eventual recovery and production from
22
23 the wellhead. In order to be eligible for the sales tax exemption
23
24 authorized by this paragraph, the total content of oil recovered
24
Req. No. 2861 Page 18
1 after the use of enhanced recovery methods shall not exceed one
1
2 percent (1%) by volume. The exemption authorized by this paragraph
2
3 shall be applicable only to the state sales tax rate and shall not
3
4 be applicable to any county or municipal sales tax rate;
4
5 36. Sales of intrastate charter and tour bus transportation.
5
6 As used in this paragraph, "intrastate charter and tour bus
6
7 transportation" means the transportation of persons from one
7
8 location in this state to another location in this state in a motor
8
9 vehicle which has been constructed in such a manner that it may
9
10 lawfully carry more than eighteen persons, and which is ordinarily
10
11 used or rented to carry persons for compensation. Provided, this
11
12 exemption shall not apply to regularly scheduled bus transportation
12
13 for the general public;
13
14 37. Sales of vitamins, minerals, and dietary supplements by a
14
15 licensed chiropractor to a person who is the patient of such
15
16 chiropractor at the physical location where the chiropractor
16
17 provides chiropractic care or services to such patient. The
17
18 provisions of this paragraph shall not be applicable to any drug,
18
19 medicine, or substance for which a prescription by a licensed
19
20 physician is required;
20
21 38. Sales of goods, wares, merchandise, tangible personal
21
22 property, machinery, and equipment to a web search portal located in
22
23 this state which derives at least eighty percent (80%) of its annual
23
24 gross revenue from the sale of a product or service to an out-of-
24
Req. No. 2861 Page 19
1 state buyer or consumer. For purposes of this paragraph, "web
1
2 search portal" means an establishment classified under North
2
3 American Industry Classification System (NAICS) code 519130 which
3
4 operates websites that use a search engine to generate and maintain
4
5 extensive databases of Internet addresses and content in an easily
5
6 searchable format;
6
7 39. Sales of tangible personal property consumed or
7
8 incorporated in the construction or expansion of a facility for a
8
9 corporation organized under Section 437 et seq. of Title 18 of the
9
10 Oklahoma Statutes as a rural electric cooperative. For purposes of
10
11 this paragraph, sales made to a contractor or subcontractor that has
11
12 previously entered into a contractual relationship with a rural
12
13 electric cooperative for construction or expansion of a facility
13
14 shall be considered sales made to a rural electric cooperative;
14
15 40. Sales of tangible personal property or services to a
15
16 business primarily engaged in the repair of consumer electronic
16
17 goods including, but not limited to, cell phones, compact disc
17
18 players, personal computers, MP3 players, digital devices for the
18
19 storage and retrieval of information through hard-wired or wireless
19
20 computer or Internet connections, if the devices are sold to the
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21 business by the original manufacturer of such devices and the
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22 devices are repaired, refitted or refurbished for sale by the entity
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23 qualifying for the exemption authorized by this paragraph directly
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1 to retail consumers or if the devices are sold to another business
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2 entity for sale to retail consumers;
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3 41. On or after July 1, 2019, and prior to July 1, 2024, sales
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4 or leases of rolling stock when sold or leased by the manufacturer,
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5 regardless of whether the purchaser is a public services corporation
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6 engaged in business as a common carrier of property or passengers by
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7 railway, for use or consumption by a common carrier directly in the
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8 rendition of public service. For purposes of this paragraph,
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9 "rolling stock" means locomotives, autocars, and railroad cars and
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10 "sales or leases" includes railroad car maintenance and retrofitting
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11 of railroad cars for their further use only on the railways;
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12 42. Sales of gold, silver, platinum, palladium or other bullion
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13 items such as coins and bars and legal tender of any nation, which
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14 legal tender is sold according to its value as precious metal or as
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15 an investment. As used in the paragraph, "bullion" means any
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16 precious metal including, but not limited to, gold, silver,
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17 platinum, and palladium, that is in such a state or condition that
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18 its value depends upon its precious metal content and not its form.
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19 The exemption authorized by this paragraph shall not apply to
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20 fabricated metals that have been processed or manufactured for
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21 artistic use or as jewelry;
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22 43. Recovery fees on the rental charge from any item of heavy
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23 equipment property rental as provided for in Section 2807.11 of this
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24 title; and
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1 44. Sales of firearm safety devices and gun safety devices. As
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2 used in this paragraph:
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3 a. "firearm safety device" means a gun safe, gun case,
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4 gun lock box, trigger lock, barrel lock, or other
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5 device that is designed to be used to store a firearm
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6 and that is designed to be unlocked only by means of a
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7 key, combination, or other similar means, and
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8 b. "gun safety device" means any integral device to be
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9 equipped or installed on a firearm that permits a user
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10 to program the firearm to operate only for specified
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11 persons designated by the user through computerized
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12 locking devices or other means integral to and
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13 permanently part of the firearm; and
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14 45. a. Sales of tangible personal property or services to
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15 individuals who are residents of Oklahoma and have
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16 retired from duty as a law enforcement officer for a
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17 municipal police force or a county sheriff.
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18 b. To be granted the exemption provided by this
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19 paragraph, an individual shall have remained on duty
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20 with the force until the time that the individual was
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21 eligible for full retirement benefits, and the
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22 individual shall submit an application prescribed by
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23 the Oklahoma Tax Commission. The Commission shall
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24 verify whether the individual qualifies, using
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Req. No. 2861 Page 22
1 retirement documents or verification provided by the
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2 applicable police force or office of the sheriff.
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3 Upon verification, the Commission shall issue an
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4 exemption card to the individual. The exemption card
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5 shall expire three (3) years from the date of
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6 issuance. Within two (2) months prior to the date of
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7 expiration of the exemption card, the individual may
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8 resubmit an application to the Commission, and the
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9 Commission shall issue a new exemption card on the
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10 date the preceding exemption card expires. The
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11 Commission may promulgate rules to effectuate the
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12 provisions of this section.
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13 SECTION 2. This act shall become effective November 1, 2026.
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15 60-2-2861 QD 1/12/2026 10:30:02 PM
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Req. No. 2861 Page 23Every fact on this page links to its source, starting with the official bill record.