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1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 2144 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to taxation; amending 68 O.S. 2021,
7 Sections 5401, 5402, and 5403, as amended by Section
8 75, Chapter 171, O.S.L. 2025 (68 O.S. Supp. 2025,
8 Section 5403), which relate to farm equipment tax;
9 requiring certain entities to pay tax in lieu of ad
9 valorem; modifying definition; defining term;
10 prescribing date that tax is imposed for certain
10 entities; requiring tax stamp to be based on fair
11 cash value for certain entities; requiring stamps to
11 be retained in log; updating statutory language;
12 updating statutory reference; and providing an
12 effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 68 O.S. 2021, Section 5401, is
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17 amended to read as follows:
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18 Section 5401. A. A tax is hereby imposed, in lieu of the ad
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19 valorem tax on certain items of the whole goods inventories
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20 agricultural equipment and whole goods attachments, both new and
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21 used items, owned and/or or possessed for sale or lease by retailers
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22 of farm tractors and other equipment as defined by subsection C of
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23 this section and by entities and individuals that operate whole
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24 goods equipment.
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1 B. Items to be taxed in lieu of ad valorem pursuant to the
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2 provisions of this section are those items of inventory of whole
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3 goods agricultural equipment and whole goods attachments thereto
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4 received from suppliers of agricultural equipment, if said such
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5 items have a retail list price of Five Hundred Dollars ($500.00) or
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6 higher but not including repair or replacement parts and those items
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7 of whole goods agricultural equipment and whole goods attachments
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8 owned by entities and individuals that operate whole goods
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9 equipment. The tax shall be paid by the dealer, entity, or
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10 individual on such items in lieu of the annual ad valorem tax
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11 assessment of dealer's average inventory or property owned by the
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12 dealer, entity, or individual but shall not relieve any other
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13 property of the dealer, entity, or individual from ad valorem
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14 taxation. Each dealer shall maintain a sales log for applicable
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15 items pursuant to this section with a serial number where
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16 applicable. The log shall be subject to inspection by county
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17 assessors. Equipment sold by consignment or by auctions where the
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18 selling agent does not take title to the equipment shall continue to
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19 be subject to ad valorem taxation. Sales of covered whole goods
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20 items between dealers shall be considered wholesale transactions and
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21 shall not be subject to the tax imposed by this section until sold
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22 at retail.
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23 C. For purposes of this act Sections 2805 and 5401 through 5404
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24 of this title, a retailer of farm tractors and other equipment is
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1 any person having a franchise or dealer agreement for selling and
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2 retailing farm tractors and farm implements. On and after January
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3 1, 1993, those business entities which do not have a franchise or
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4 dealer agreement for retailing farm equipment, but which from time
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5 to time publicly buy and sell such farm equipment, shall also be
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6 subject to the provisions of this section, and the tax imposed by
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7 this section shall apply to the same items and under the same
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8 conditions as apply to franchised dealers.
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9 D. "Whole goods agricultural equipment" shall be defined as any
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10 machine, including, but not limited to, a farm tractor, combine,
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11 plow, irrigation unit, or baler, capable of performing agricultural
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12 operations either with power from its own engine, or when drawn or
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13 otherwise moved by another whole goods unit. "Whole goods
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14 attachments" shall be defined as those complete attachments which,
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15 when fitted to, drawn, or otherwise moved by other equipment,
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16 perform specialized agricultural operations. Such attachments
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17 include, but shall not be limited to, combine headers, mowers,
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18 swathers, shredders, and cultivation and haying equipment.
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19 E. As used Sections 5401 through 5404 of this title:
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20 1. "Agricultural operation" means a farm, including, but not
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21 limited to, the term as defined in Section 1352.1 of this title, a
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22 poultry operation, orchard, ranch, including the business of raising
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23 horses, and dairy operation, as defined in Section 2357.25 of this
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24 title, operated by an individual or entity; and
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1 2. "Entities and individuals that operate whole goods
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2 equipment" means an agricultural operation, or any individual or
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3 entity that operates whole goods agricultural equipment or whole
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4 goods attachments in the service of an agricultural operation.
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5 SECTION 2. AMENDATORY 68 O.S. 2021, Section 5402, is
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6 amended to read as follows:
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7 Section 5402. A. The in-lieu tax imposed in Section 5401 of
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8 this title shall apply on the date of sale or lease by a dealer and
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9 shall apply for entities and individuals that operate whole goods
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10 equipment on the date one-half (1/2) or more of the taxes are
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11 required to be paid pursuant to paragraph 1 of subsection A of
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12 Section 2913 of this title and shall be evidenced by a tax stamp.
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13 The tax stamp shall be based on the following actual sales price
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14 without reduction for any trade-in for a dealer and the following
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15 fair cash value for entities and individuals that operate whole
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16 goods equipment:
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17 1. Beginning with sales or fair cash value of Five Hundred
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18 Dollars ($500.00) to One Thousand Nine Hundred Ninety-nine Dollars
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19 ($1,999.00): $6.00;
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20 2. Two Thousand Dollars ($2,000.00) to Nine Thousand Nine
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21 Hundred Ninety-nine Dollars ($9,999.00): $12.00;
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22 3. Ten Thousand Dollars ($10,000.00) to Nineteen Thousand Nine
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23 Hundred Ninety-nine Dollars ($19,999.00): $18.00;
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1 4. Twenty Thousand Dollars ($20,000.00) to Twenty-nine Thousand
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2 Nine Hundred Ninety-nine Dollars ($29,999.00): $24.00;
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3 5. Thirty Thousand Dollars ($30,000.00) to Thirty-nine Thousand
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4 Nine Hundred Ninety-nine Dollars ($39,999.00): $36.00;
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5 6. Forty Thousand Dollars ($40,000.00) to Forty-nine Thousand
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6 Nine Hundred Ninety-nine Dollars ($49,999.00): $48.00;
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7 7. Fifty Thousand Dollars ($50,000.00) to Fifty-nine Thousand
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8 Nine Hundred Ninety-nine Dollars ($59,999.00): $60.00;
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9 8. Sixty Thousand Dollars ($60,000.00) to Sixty-nine Thousand
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10 Nine Hundred Ninety-nine Dollars ($69,999.00): $72.00;
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11 9. Seventy Thousand Dollars ($70,000.00) to Seventy-nine
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12 Thousand Nine Hundred Ninety-nine Dollars ($79,999.00): $84.00;
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13 10. Eighty Thousand Dollars ($80,000.00) to Eighty-nine
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14 Thousand Nine Hundred Ninety-nine Dollars ($89,999.00): $96.00; and
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15 11. Ninety Thousand Dollars ($90,000.00) and above: $108.00.
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16 B. The appropriate tax stamp or stamps shall be affixed by the
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17 dealer to the dealer's copy of the sales invoice covering new or
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18 used whole goods agricultural equipment and whole goods attachments
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19 thereto sold before transferring ownership to any new or used farm
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20 implement, and the appropriate tax stamp or stamps shall be retained
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21 in a log kept by the entities and individuals that operate whole
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22 goods equipment.
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1 SECTION 3. AMENDATORY 68 O.S. 2021, Section 5403, as
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2 amended by Section 75, Chapter 171, O.S.L. 2025 (68 O.S. Supp. 2025,
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3 Section 5403), is amended to read as follows:
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4 Section 5403. A. The tax stamp or stamps required by Section
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5 5402 of this title to be retained in a log kept by the entities and
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6 individuals that operate whole goods equipment or affixed upon the
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7 dealer's copy of the sales invoice covering each new or used whole
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8 goods agricultural equipment or whole goods attachment thereto sold
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9 shall be manufactured or purchased by Service Oklahoma in the
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10 required amounts. The tax stamps shall be of such design, color
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11 combination, and material and value in multiples of Six Dollars
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12 ($6.00) as Service Oklahoma shall deem necessary for the
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13 administration of this tax and to afford the best security to the
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14 tax revenue involved. The stamps shall be purchased by dealers,
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15 entities, or individuals in the county where the business or
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16 operation is located.
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17 B. Service Oklahoma may require any manufacturer of such tax
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18 stamps to furnish a bond in such amount as it deems necessary to
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19 protect the state and local taxing entities against loss.
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20 C. Service Oklahoma shall distribute such tax stamps to the
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21 county treasurer of each county, taking such receipt therefor as may
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22 be necessary. The county treasurer shall have the responsibility of
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23 the custody and the sale of the stamps to the person required by
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24 Section 5402 of this title to obtain such stamps. In addition, the
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1 county treasurer shall have the duty of accounting for such stamps
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2 to their his or her respective counties, and to Service Oklahoma as
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3 it may require.
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4 SECTION 4. This act shall become effective January 1, 2027.
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6 60-2-2913 QD 1/15/2026 1:36:16 PM
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Req. No. 2913 Page 7Every fact on this page links to its source, starting with the official bill record.