Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1
1 STATE OF OKLAHOMA
2
2 1st Session of the 60th Legislature (2025)
3
3 SENATE BILL 232 By: Rader
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 4, Chapter
8 363, O.S.L. 2024 (68 O.S. Supp. 2024, Section 1357),
8 which relates to exemptions; modifying certain
9 exemption for certain media production; providing
9 exemption for construction of qualified media
10 production facility; defining terms; requiring the
10 Oklahoma Film and Music Office to accept certain
11 applications upon nomination; stipulating criteria
11 for approval; authorizing certain local governments
12 to nominate a qualified media production location;
12 requiring nomination of county under certain
13 circumstance; limiting exemption to certain period;
13 requiring notification of the Oklahoma Tax Commission
14 upon approval; limiting amount of qualified media
14 production facility designations; authorizing the
15 promulgation of rules; providing for codification;
15 and providing an effective date.
16
16
17
17
18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
18
19 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357, as
19
20 last amended by Section 4, Chapter 363, O.S.L. 2024 (68 O.S. Supp.
20
21 2024, Section 1357), is amended to read as follows:
21
22 Section 1357. Exemptions � General. There are hereby
22
23 specifically exempted from the tax levied by the Oklahoma Sales Tax
23
24 Code:
24
Req. No. 1281 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. 1281 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 signage,
5
6 posters, panels, marquees or on other similar surfaces, whether
6
7 indoors or outdoors) or in programs relating to sporting and
7
8 entertainment events, and sales of any advertising, to be displayed
8
9 at or in connection with a sporting event, via the Internet,
9
10 electronic display devices or through public address or broadcast
10
11 systems. The exemption authorized by this paragraph shall be
11
12 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 through closed circuit broadcasting systems or otherwise), and cable
17
18 and satellite television, and the servicing of any advertising
18
19 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. 1281 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 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. 1281 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 2029 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. 1281 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. 1281 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 (250) 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. 1281 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 interstate and International "800 service"
7
8 international 800 service. "800 service" means a
8
9 telecommunications service that allows a caller to
9
10 dial a toll-free number without incurring a charge for
10
11 the call. The service is typically marketed under the
11
12 name "800", "855", "866", "877" and "888" toll-free
12
13 calling, and any subsequent numbers designated by the
13
14 Federal Communications Commission,
14
15 b. Interstate interstate and International "900 service"
15
16 international 900 service. "900 service" means an
16
17 inbound toll telecommunications service purchased by a
17
18 subscriber that allows the subscriber's customers to
18
19 call in to the subscriber's prerecorded announcement
19
20 or live service. 900 service does not include the
20
21 charge for: collection services provided by the
21
22 seller of the telecommunications services to the
22
23 subscriber, or service or product sold by the
23
24 subscriber to the subscriber's customer. The service
24
Req. No. 1281 Page 8
1 is typically marketed under the name "900" service,
1
2 and any subsequent numbers designated by the Federal
2
3 Communications Commission,
3
4 c. Interstate interstate and International "private
4
5 communications service" international private
5
6 communications service. "Private communications
6
7 service" means a telecommunications service that
7
8 entitles the customer to exclusive or priority use of
8
9 a communications channel or group of channels between
9
10 or among termination points, regardless of the manner
10
11 in which such channel or channels are connected, and
11
12 includes switching capacity, extension lines, stations
12
13 and any other associated services that are provided in
13
14 connection with the use of such channel or channels,
14
15 d. "Value-added nonvoice data service" value-added
15
16 nonvoice data service. "Value-added nonvoice data
16
17 service" means a service that otherwise meets the
17
18 definition of telecommunications services in which
18
19 computer processing applications are used to act on
19
20 the form, content, code or protocol of the information
20
21 or data primarily for a purpose other than
21
22 transmission, conveyance, or routing,
22
23 e. Interstate interstate and International international
23
24 telecommunications service which is:
24
Req. No. 1281 Page 9
1 (1) rendered by a company for private use within its
1
2 organization, or
2
3 (2) used, allocated or distributed by a company to
3
4 its affiliated group,
4
5 f. Regulatory regulatory assessments and charges
5
6 including charges to fund the Oklahoma Universal
6
7 Service Fund, the Oklahoma Lifeline Fund and the
7
8 Oklahoma High Cost Fund, and
8
9 g. Telecommunications telecommunications nonrecurring
9
10 charges including but not limited to the installation,
10
11 connection, change, or initiation of
11
12 telecommunications services which are not associated
12
13 with a retail consumer sale;
13
14 19. Sales of railroad track spikes manufactured and sold for
14
15 use in this state in the construction or repair of railroad tracks,
15
16 switches, sidings, and turnouts;
16
17 20. Sales of aircraft and aircraft parts provided such sales
17
18 occur at a qualified aircraft maintenance facility. As used in this
18
19 paragraph, "qualified aircraft maintenance facility" means a
19
20 facility operated by an air common carrier including one or more
20
21 component overhaul support buildings or structures in an area owned,
21
22 leased, or controlled by the air common carrier, at which there were
22
23 employed at least two thousand (2,000) full-time-equivalent
23
24 employees in the preceding year as certified by the Oklahoma
24
Req. No. 1281 Page 10
1 Employment Security Commission and which is primarily related to the
1
2 fabrication, repair, alteration, modification, refurbishing,
2
3 maintenance, building, or rebuilding of commercial aircraft or
3
4 aircraft parts used in air common carriage. For purposes of this
4
5 paragraph, "air common carrier" shall also include members of an
5
6 affiliated group as defined by Section 1504 of the Internal Revenue
6
7 Code of 1986, as amended, 26 U.S.C., Section 1504. Beginning July
7
8 1, 2012, the exemption shall include sales of machinery, tools,
8
9 supplies, equipment, and related tangible personal property and
9
10 services used or consumed in the repair, remodeling, or maintenance
10
11 of aircraft, aircraft engines or aircraft component parts which
11
12 occur at a qualified aircraft maintenance facility;
12
13 21. Sales of machinery and equipment purchased and used by
13
14 persons and establishments primarily engaged in computer services
14
15 and data processing:
15
16 a. as defined under Industry Group Numbers 7372 and 7373
16
17 of the Standard Industrial Classification (SIC)
17
18 Manual, latest version, which derive at least fifty
18
19 percent (50%) of their annual gross revenues from the
19
20 sale of a product or service to an out-of-state buyer
20
21 or consumer, and
21
22 b. as defined under Industry Group Number 7374 of the SIC
22
23 Manual, latest version, which derive at least eighty
23
24 percent (80%) of their annual gross revenues from the
24
Req. No. 1281 Page 11
1 sale of a product or service to an out-of-state buyer
1
2 or consumer.
2
3 Eligibility for the exemption set out in this paragraph shall be
3
4 established, subject to review by the Tax Commission, by annually
4
5 filing an affidavit with the Tax Commission stating that the
5
6 facility so qualifies and such information as required by the Tax
6
7 Commission. For purposes of determining whether annual gross
7
8 revenues are derived from sales to out-of-state buyers or consumers,
8
9 all sales to the federal government shall be considered to be to an
9
10 out-of-state buyer or consumer;
10
11 22. Sales of prosthetic devices to an individual for use by
11
12 such individual. For purposes of this paragraph, "prosthetic
12
13 device" shall have the same meaning as provided in Section 1357.6 of
13
14 this title, but shall not include corrective eye glasses, contact
14
15 lenses, or hearing aids;
15
16 23. Sales of tangible personal property or services to a motion
16
17 picture or television production company qualified media production
17
18 facility, as approved pursuant to Section 2 of this act, to be used
18
19 or consumed in connection with an eligible production. For purposes
19
20 of this paragraph, "eligible production" means a documentary,
20
21 special, music video or a television commercial or television
21
22 program that will serve as a pilot for or be a segment of an ongoing
22
23 dramatic or situation comedy series filmed or taped for network or
23
24 national or regional syndication or a feature-length motion picture
24
Req. No. 1281 Page 12
1 intended for theatrical release or for network or national or
1
2 regional syndication or broadcast the construction, renovation,
2
3 improvement, or expansion of a media production facility within a
3
4 qualified media production location. The provisions of this
4
5 paragraph shall apply to sales occurring on or after July 1, 1996
5
6 the effective date of this act during the exemption period for the
6
7 qualified media production facility pursuant to Section 2 of this
7
8 act. In order to qualify for the exemption, the motion picture or
8
9 television production company shall file any documentation and
9
10 information required to be submitted pursuant to rules promulgated
10
11 by the Tax Commission;
11
12 24. Sales of diesel fuel sold for consumption by commercial
12
13 vessels, barges and other commercial watercraft;
13
14 25. Sales of tangible personal property or services to tax-
14
15 exempt independent nonprofit biomedical research foundations that
15
16 provide educational programs for Oklahoma science students and
16
17 teachers and to tax-exempt independent nonprofit community blood
17
18 banks headquartered in this state;
18
19 26. Effective May 6, 1992, sales of wireless telecommunications
19
20 equipment to a vendor who subsequently transfers the equipment at no
20
21 charge or for a discounted charge to a consumer as part of a
21
22 promotional package or as an inducement to commence or continue a
22
23 contract for wireless telecommunications services;
23
24
24
Req. No. 1281 Page 13
1 27. Effective January 1, 1991, leases of rail transportation
1
2 cars to haul coal to coal-fired plants located in this state which
2
3 generate electric power;
3
4 28. Beginning July 1, 2005, sales of aircraft engine repairs,
4
5 modification, and replacement parts, sales of aircraft frame repairs
5
6 and modification, aircraft interior modification, and paint, and
6
7 sales of services employed in the repair, modification, and
7
8 replacement of parts of aircraft engines, aircraft frame and
8
9 interior repair and modification, and paint;
9
10 29. Sales of materials and supplies to the owner or operator of
10
11 a ship, motor vessel, or barge that is used in interstate or
11
12 international commerce if the materials and supplies:
12
13 a. are loaded on the ship, motor vessel, or barge and
13
14 used in the maintenance and operation of the ship,
14
15 motor vessel, or barge, or
15
16 b. enter into and become component parts of the ship,
16
17 motor vessel, or barge;
17
18 30. Sales of tangible personal property made at estate sales at
18
19 which such property is offered for sale on the premises of the
19
20 former residence of the decedent by a person who is not required to
20
21 be licensed pursuant to the Transient Merchant Licensing Act, or who
21
22 is not otherwise required to obtain a sales tax permit for the sale
22
23 of such property pursuant to the provisions of Section 1364 of this
23
24 title; provided:
24
Req. No. 1281 Page 14
1 a. such sale or event may not be held for a period
1
2 exceeding three (3) consecutive days,
2
3 b. the sale must be conducted within six (6) months of
3
4 the date of death of the decedent, and
4
5 c. the exemption allowed by this paragraph shall not be
5
6 allowed for property that was not part of the
6
7 decedent's estate;
7
8 31. Beginning January 1, 2004, sales of electricity and
8
9 associated delivery and transmission services, when sold exclusively
9
10 for use by an oil and gas operator for reservoir dewatering projects
10
11 and associated operations commencing on or after July 1, 2003, in
11
12 which the initial water-to-oil ratio is greater than or equal to
12
13 five-to-one water-to-oil, and such oil and gas development projects
13
14 have been classified by the Corporation Commission as a reservoir
14
15 dewatering unit;
15
16 32. Sales of prewritten computer software that is delivered
16
17 electronically. For purposes of this paragraph, "delivered
17
18 electronically" means delivered to the purchaser by means other than
18
19 tangible storage media;
19
20 33. Sales of modular dwelling units when built at a production
20
21 facility and moved in whole or in parts, to be assembled on-site,
21
22 and permanently affixed to the real property and used for
22
23 residential or commercial purposes. The exemption provided by this
23
24 paragraph shall equal forty-five percent (45%) of the total sales
24
Req. No. 1281 Page 15
1 price of the modular dwelling unit. For purposes of this paragraph,
1
2 "modular dwelling unit" means a structure that is not subject to the
2
3 motor vehicle excise tax imposed pursuant to Section 2103 of this
3
4 title;
4
5 34. Sales of tangible personal property or services to:
5
6 a. persons who are residents of Oklahoma and have been
6
7 honorably discharged from active service in any branch
7
8 of the Armed Forces of the United States or Oklahoma
8
9 National Guard and who have been certified by the
9
10 United States Department of Veterans Affairs or its
10
11 successor to be in receipt of disability compensation
11
12 at the one-hundred-percent rate and the disability
12
13 shall be permanent and have been sustained through
13
14 military action or accident or resulting from disease
14
15 contracted while in such active service and registered
15
16 with the veterans registry created by the Oklahoma
16
17 Department of Veterans Affairs, or
17
18 b. the surviving spouse of the person in subparagraph a
18
19 of this paragraph if the person is deceased and the
19
20 spouse has not remarried and the surviving spouse of a
20
21 person who is determined by the United States
21
22 Department of Defense or any branch of the United
22
23 States military to have died while in the line of duty
23
24 if the spouse has not remarried. Sales for the
24
Req. No. 1281 Page 16
1 benefit of an eligible person to a spouse of the
1
2 eligible person or to a member of the household in
2
3 which the eligible person resides and who is
3
4 authorized to make purchases on the person's behalf,
4
5 when such eligible person is not present at the sale,
5
6 shall also be exempt for purposes of this paragraph.
6
7 The Oklahoma Tax Commission shall issue a separate
7
8 exemption card to a spouse of an eligible person or to
8
9 a member of the household in which the eligible person
9
10 resides who is authorized to make purchases on the
10
11 person's behalf, if requested by the eligible person.
11
12 Sales qualifying for the exemption authorized by this
12
13 paragraph shall not exceed Twenty-five Thousand
13
14 Dollars ($25,000.00) per year per individual while the
14
15 disabled veteran is living. Sales qualifying for the
15
16 exemption authorized by this paragraph shall not
16
17 exceed One Thousand Dollars ($1,000.00) per year for
17
18 an unremarried surviving spouse. Upon request of the
18
19 Tax Commission, a person asserting or claiming the
19
20 exemption authorized by this paragraph shall provide a
20
21 statement, executed under oath, that the total sales
21
22 amounts for which the exemption is applicable have not
22
23 exceeded Twenty-five Thousand Dollars ($25,000.00) per
23
24 year per living disabled veteran or One Thousand
24
Req. No. 1281 Page 17
1 Dollars ($1,000.00) per year for an unremarried
1
2 surviving spouse. If the amount of such exempt sales
2
3 exceeds such amount, the sales tax in excess of the
3
4 authorized amount shall be treated as a direct sales
4
5 tax liability and may be recovered by the Tax
5
6 Commission in the same manner provided by law for
6
7 other taxes including penalty and interest. The Tax
7
8 Commission shall promulgate any rules necessary to
8
9 implement the provisions of this paragraph, which
9
10 shall include rules providing for the disclosure of
10
11 information about persons eligible for the exemption
11
12 authorized in this paragraph to the Oklahoma
12
13 Department of Veterans Affairs, as authorized in
13
14 Section 205 of this title. For purposes of the
14
15 exemption authorized by this subparagraph, if the
15
16 disability determination that would have been made
16
17 while the disabled veteran was still living is not
17
18 made final until after the death of the disabled
18
19 veteran, the exemption authorized by this subparagraph
19
20 may still be claimed by the surviving spouse;
20
21 35. Sales of electricity to the operator, specifically
21
22 designated by the Corporation Commission, of a spacing unit or lease
22
23 from which oil is produced or attempted to be produced using
23
24 enhanced recovery methods including, but not limited to, increased
24
Req. No. 1281 Page 18
1 pressure in a producing formation through the use of water or
1
2 saltwater if the electrical usage is associated with and necessary
2
3 for the operation of equipment required to inject or circulate
3
4 fluids in a producing formation for the purpose of forcing oil or
4
5 petroleum into a wellbore for eventual recovery and production from
5
6 the wellhead. In order to be eligible for the sales tax exemption
6
7 authorized by this paragraph, the total content of oil recovered
7
8 after the use of enhanced recovery methods shall not exceed one
8
9 percent (1%) by volume. The exemption authorized by this paragraph
9
10 shall be applicable only to the state sales tax rate and shall not
10
11 be applicable to any county or municipal sales tax rate;
11
12 36. Sales of intrastate charter and tour bus transportation.
12
13 As used in this paragraph, "intrastate charter and tour bus
13
14 transportation" means the transportation of persons from one
14
15 location in this state to another location in this state in a motor
15
16 vehicle which has been constructed in such a manner that it may
16
17 lawfully carry more than eighteen persons, and which is ordinarily
17
18 used or rented to carry persons for compensation. Provided, this
18
19 exemption shall not apply to regularly scheduled bus transportation
19
20 for the general public;
20
21 37. Sales of vitamins, minerals, and dietary supplements by a
21
22 licensed chiropractor to a person who is the patient of such
22
23 chiropractor at the physical location where the chiropractor
23
24 provides chiropractic care or services to such patient. The
24
Req. No. 1281 Page 19
1 provisions of this paragraph shall not be applicable to any drug,
1
2 medicine, or substance for which a prescription by a licensed
2
3 physician is required;
3
4 38. Sales of goods, wares, merchandise, tangible personal
4
5 property, machinery, and equipment to a web search portal located in
5
6 this state which derives at least eighty percent (80%) of its annual
6
7 gross revenue from the sale of a product or service to an out-of-
7
8 state buyer or consumer. For purposes of this paragraph, "web
8
9 search portal" means an establishment classified under NAICS North
9
10 American Industry Classification System (NAICS) code 519130 which
10
11 operates websites that use a search engine to generate and maintain
11
12 extensive databases of Internet addresses and content in an easily
12
13 searchable format;
13
14 39. Sales of tangible personal property consumed or
14
15 incorporated in the construction or expansion of a facility for a
15
16 corporation organized under Section 437 et seq. of Title 18 of the
16
17 Oklahoma Statutes as a rural electric cooperative. For purposes of
17
18 this paragraph, sales made to a contractor or subcontractor that has
18
19 previously entered into a contractual relationship with a rural
19
20 electric cooperative for construction or expansion of a facility
20
21 shall be considered sales made to a rural electric cooperative;
21
22 40. Sales of tangible personal property or services to a
22
23 business primarily engaged in the repair of consumer electronic
23
24 goods including, but not limited to, cell phones, compact disc
24
Req. No. 1281 Page 20
1 players, personal computers, MP3 players, digital devices for the
1
2 storage and retrieval of information through hard-wired or wireless
2
3 computer or Internet connections, if the devices are sold to the
3
4 business by the original manufacturer of such devices and the
4
5 devices are repaired, refitted or refurbished for sale by the entity
5
6 qualifying for the exemption authorized by this paragraph directly
6
7 to retail consumers or if the devices are sold to another business
7
8 entity for sale to retail consumers;
8
9 41. On or after July 1, 2019, and prior to July 1, 2024, sales
9
10 or leases of rolling stock when sold or leased by the manufacturer,
10
11 regardless of whether the purchaser is a public services corporation
11
12 engaged in business as a common carrier of property or passengers by
12
13 railway, for use or consumption by a common carrier directly in the
13
14 rendition of public service. For purposes of this paragraph,
14
15 "rolling stock" means locomotives, autocars, and railroad cars and
15
16 "sales or leases" includes railroad car maintenance and retrofitting
16
17 of railroad cars for their further use only on the railways;
17
18 42. Sales of gold, silver, platinum, palladium, or other
18
19 bullion items such as coins and bars and legal tender of any nation,
19
20 which legal tender is sold according to its value as precious metal
20
21 or as an investment. As used in the paragraph, "bullion" means any
21
22 precious metal including, but not limited to, gold, silver,
22
23 platinum, and palladium, that is in such a state or condition that
23
24 its value depends upon its precious metal content and not its form.
24
Req. No. 1281 Page 21
1 The exemption authorized by this paragraph shall not apply to
1
2 fabricated metals that have been processed or manufactured for
2
3 artistic use or as jewelry; and
3
4 43. Recovery fees on the rental charge from any item of heavy
4
5 equipment property rental as provided for in Section 2 of this act
5
6 2807.11 of this title.
6
7 SECTION 2. NEW LAW A new section of law to be codified
7
8 in the Oklahoma Statutes as Section 1357.12 of Title 68, unless
8
9 there is created a duplication in numbering, reads as follows:
9
10 A. As used in this section:
10
11 1. "Media production facility" means a structure, building, and
11
12 portions of a structure or building exclusively used for the purpose
12
13 of creating production projects including, but not limited to:
13
14 a. a soundstage and scoring stage,
14
15 b. a production office,
15
16 c. a post-production facility, animation production
16
17 facility, and a video game production facility,
17
18 d. storage and construction space, and
18
19 e. a sound recording studio and motion picture studio;
19
20 and
20
21 2. "Production project" means a visual and sound production
21
22 including a film, television program, commercial, video game, or
22
23 digital interactive media production.
23
24
24
Req. No. 1281 Page 22
1 B. The Oklahoma Film and Music Office shall, upon the
1
2 nomination of a qualified media production location pursuant to
2
3 subsection D of this section, accept applications to be designated a
3
4 qualified media production facility.
4
5 C. Applications shall be approved by the Office according to
5
6 the following criteria:
6
7 1. The construction, renovation, improvement, or expansion of a
7
8 facility or a portion of a facility to be exclusively used as a
8
9 media production facility;
9
10 2. The location shall be in an area with an adequate workforce,
10
11 infrastructure, or resources to support production projects; and
11
12 3. The construction, renovation, improvement, or expansion of a
12
13 media production facility shall provide a positive net benefit to
13
14 the state, as determined by the Office and the Oklahoma Department
14
15 of Commerce.
15
16 D. Cities, towns, municipalities, and counties in this state
16
17 may, upon request by an entity planning to create a media production
17
18 facility, nominate, by resolution, a qualified media production
18
19 location. Entities applying for designation as a qualified media
19
20 production facility pursuant to this section shall receive a
20
21 nomination by the city, town, or municipality where the facility is
21
22 to be located and, if the facility is to be located within a county
22
23 that levies a sales tax pursuant to Section 1370 of Title 68 of the
23
24
24
Req. No. 1281 Page 23
1 Oklahoma Statutes, the nomination of the county where the facility
1
2 is to be located.
2
3 E. Designation as a qualified media production facility and
3
4 qualification for the exemption provided for in paragraph 23 of
4
5 Section 1357 of Title 68 of the Oklahoma Statutes shall be for a
5
6 period of two (2) years from the date requested by the applicant and
6
7 approved by the Office.
7
8 F. Upon approval of an application, the Office shall notify the
8
9 Oklahoma Tax Commission of the approval and the period of
9
10 designation as a qualified media production facility.
10
11 G. In no event shall there be in excess of five qualified media
11
12 production facility designations at any time.
12
13 H. The Oklahoma Department of Commerce and the Oklahoma Tax
13
14 Commission may promulgate rules to enforce the provisions of this
14
15 section.
15
16 SECTION 3. This act shall become effective November 1, 2025.
16
17
17
18 60-1-1281 QD 12/30/2024 5:10:28 PM
18
19
19
20
20
21
21
22
22
23
23
24
24
Req. No. 1281 Page 24Every fact on this page links to its source, starting with the official bill record.