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1 STATE OF OKLAHOMA
1
2 1st Session of the 60th Legislature (2025)
2
3 SENATE BILL 44 By: Rader
3
4
4
5
5
6 AS INTRODUCED
6
7 An Act relating to sales tax; amending 68 O.S. 2021,
7 Section 1356, as last amended by Section 148, Chapter
8 452, O.S.L. 2024 (68 O.S. Supp. 2024, Section 1356),
8 which relates to sales tax exemption; providing
9 exemption to entities in performance of a contract
9 with an exempt entity; updating statutory language;
10 and providing an effective date.
10
11
11
12
12
13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
13
14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1356, as
14
15 last amended by Section 148, Chapter 452, O.S.L. 2024 (68 O.S. Supp.
15
16 2024, Section 1356), is amended to read as follows:
16
17 Section 1356. Exemptions - Governmental and nonprofit entities.
17
18 There are hereby specifically exempted from the tax levied by
18
19 Section 1350 et seq. of this title:
19
20 A. The exemptions for sales of tangible personal property or
20
21 services to entities provided by subsection B of this section shall
21
22 apply to sales to the exempt entity as well as to sales to any
22
23 contractor with whom the exempt entity has entered into a contract
23
24 necessary for carrying out such contract and sales to any
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Req. No. 926 Page 1
1 subcontractor to the contract. Any contractor or subcontractor
1
2 making purchases necessary for carrying out the contract may present
2
3 a copy of the exemption letter or card issued to the exempt entity
3
4 by the Oklahoma Tax Commission and documentation indicating the
4
5 contractual relationship between the contractor and the entity to
5
6 the vendor and the vendor shall retain such documentation as
6
7 certification that the purchase is exempt as provided in this
7
8 section.
8
9 B. 1. Sale of tangible personal property or services to the
9
10 United States government or to this state, any political subdivision
10
11 of this state, or any agency of a political subdivision of this
11
12 state; provided, all sales to contractors in connection with the
12
13 performance of any contract with the United States government, this
13
14 state, or any of its political subdivisions shall not be exempted
14
15 from the tax levied by Section 1350 et seq. of this title, except as
15
16 hereinafter provided;
16
17 2. Sales of property to agents appointed by or under contract
17
18 with agencies or instrumentalities of the United States government
18
19 if ownership and possession of such property transfers immediately
19
20 to the United States government;
20
21 3. Sales of property to agents appointed by or under contract
21
22 with a political subdivision of this state if the sale of such
22
23 property is associated with the development of a qualified federal
23
24 facility, as provided in the Oklahoma Federal Facilities Development
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Req. No. 926 Page 2
1 Act, and if ownership and possession of such property transfers
1
2 immediately to the political subdivision or the state;
2
3 4. Sales made directly by county, district, or state fair
3
4 authorities of this state, upon the premises of the fair authority,
4
5 for the sole benefit of the fair authority or sales of admission
5
6 tickets to such fairs or fair events at any location in the state
6
7 authorized by county, district, or state fair authorities; provided,
7
8 the exemption provided by this paragraph for admission tickets to
8
9 fair events shall apply only to any portion of the admission price
9
10 that is retained by or distributed to the fair authority. As used
10
11 in this paragraph, "fair event" shall be limited to an event held on
11
12 the premises of the fair authority in conjunction with and during
12
13 the time period of a county, district, or state fair;
13
14 5. Sale of food in cafeterias or lunchrooms of elementary
14
15 schools, high schools, colleges, or universities which are operated
15
16 primarily for teachers and pupils and are not operated primarily for
16
17 the public or for profit;
17
18 6. Dues paid to fraternal, religious, civic, charitable, or
18
19 educational societies or organizations by regular members thereof,
19
20 provided, such societies or organizations operate under what is
20
21 commonly termed the lodge plan or system, and provided such
21
22 societies or organizations do not operate for a profit which inures
22
23 to the benefit of any individual member or members thereof to the
23
24 exclusion of other members and dues paid monthly or annually to
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Req. No. 926 Page 3
1 privately owned scientific and educational libraries by members
1
2 sharing the use of services rendered by such libraries with students
2
3 interested in the study of geology, petroleum engineering, or
3
4 related subjects;
4
5 7. Sale of tangible personal property or services to or by
5
6 churches, except sales made in the course of business for profit or
6
7 savings, competing with other persons engaged in the same, or a
7
8 similar business or sale of tangible personal property or services
8
9 by an organization exempt from federal income tax pursuant to
9
10 Section 501(c)(3) of the Internal Revenue Code of 1986, as amended,
10
11 made on behalf of or at the request of a church or churches if the
11
12 sale of such property is conducted not more than once each calendar
12
13 year for a period not to exceed three (3) days by the organization
13
14 and proceeds from the sale of such property are used by the church
14
15 or churches or by the organization for charitable purposes;
15
16 8. The amount of proceeds received from the sale of admission
16
17 tickets which is separately stated on the ticket of admission for
17
18 the repayment of money borrowed by any accredited state-supported
18
19 college or university or any public trust of which a county in this
19
20 state is the beneficiary, for the purpose of constructing or
20
21 enlarging any facility to be used for the staging of an athletic
21
22 event, a theatrical production, or any other form of entertainment,
22
23 edification or cultural cultivation to which entry is gained with a
23
24 paid admission ticket. Such facilities include, but are not limited
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Req. No. 926 Page 4
1 to, athletic fields, athletic stadiums, field houses, amphitheaters,
1
2 and theaters. To be eligible for this sales tax exemption, the
2
3 amount separately stated on the admission ticket shall be a
3
4 surcharge which is imposed, collected, and used for the sole purpose
4
5 of servicing or aiding in the servicing of debt incurred by the
5
6 college or university to effect the capital improvements
6
7 hereinbefore described;
7
8 9. Sales of tangible personal property or services to the
8
9 council organizations or similar state supervisory organizations of
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10 the Boy Scouts of America, Girl Scouts of the U.S.A., and Camp Fire
10
11 USA;
11
12 10. Sale of tangible personal property or services to any
12
13 county, municipality, rural water district, public school district,
13
14 city-county library system, the institutions of The Oklahoma State
14
15 System of Higher Education, the Grand River Dam Authority, the
15
16 Northeast Oklahoma Public Facilities Authority, the Oklahoma
16
17 Municipal Power Authority, City of Tulsa-Rogers County Port
17
18 Authority, Muskogee City-County Port Authority, the Oklahoma
18
19 Department of Veterans Affairs, the Broken Bow Economic Development
19
20 Authority, Ardmore Development Authority, Durant Industrial
20
21 Authority, Oklahoma Ordnance Works Authority, Central Oklahoma
21
22 Master Conservancy District, Arbuckle Master Conservancy District,
22
23 Fort Cobb Reservoir Master Conservancy District, Foss Reservoir
23
24 Master Conservancy District, Mountain Park Master Conservancy
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Req. No. 926 Page 5
1 District, Waurika Lake Master Conservancy District and the Office of
1
2 Management and Enterprise Services only when carrying out a public
2
3 construction contract on behalf of the Oklahoma Department of
3
4 Veterans Affairs, and effective July 1, 2022, the University
4
5 Hospitals Trust, or to any person with whom any of the above-named
5
6 subdivisions or agencies of this state has duly entered into a
6
7 public contract pursuant to law, necessary for carrying out such
7
8 public contract or to any subcontractor to such a public contract.
8
9 Any person making purchases on behalf of such subdivision or agency
9
10 of this state shall certify, in writing, on the copy of the invoice
10
11 or sales ticket to be retained by the vendor that the purchases are
11
12 made for and on behalf of such subdivision or agency of this state
12
13 and set out the name of such public subdivision or agency. Any
13
14 person who wrongfully or erroneously certifies that purchases are
14
15 for any of the above-named subdivisions or agencies of this state or
15
16 who otherwise violates this section shall be guilty of a misdemeanor
16
17 and upon conviction thereof shall be fined an amount equal to double
17
18 the amount of sales tax involved or incarcerated for not more than
18
19 sixty (60) days or both;
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20 11. Sales of tangible personal property or services to private
20
21 institutions of higher education and private elementary and
21
22 secondary institutions of education accredited by the State
22
23 Department of Education or registered by the State Board of
23
24 Education for purposes of participating in federal programs or
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Req. No. 926 Page 6
1 accredited as defined by the Oklahoma State Regents for Higher
1
2 Education which are exempt from taxation pursuant to the provisions
2
3 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
3
4 501(c)(3) including materials, supplies, and equipment used in the
4
5 construction and improvement of buildings and other structures owned
5
6 by the institutions and operated for educational purposes.
6
7 Any person, firm, agency, or entity making purchases on behalf
7
8 of any institution, agency or subdivision in this state, shall
8
9 certify in writing, on the copy of the invoice or sales ticket the
9
10 nature of the purchases, and violation of this paragraph shall be a
10
11 misdemeanor as set forth in paragraph 10 of this section;
11
12 12. Tuition and educational fees paid to private institutions
12
13 of higher education and private elementary and secondary
13
14 institutions of education accredited by the State Department of
14
15 Education or registered by the State Board of Education for purposes
15
16 of participating in federal programs or accredited as defined by the
16
17 Oklahoma State Regents for Higher Education which are exempt from
17
18 taxation pursuant to the provisions of the Internal Revenue Code of
18
19 1986, as amended, 26 U.S.C., Section 501(c)(3);
19
20 13. a. Sales of tangible personal property made by:
20
21 (1) a public school,
21
22 (2) a private school offering instruction for grade
22
23 levels kindergarten through twelfth grade,
23
24 (3) a public school district,
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Req. No. 926 Page 7
1 (4) a public or private school board,
1
2 (5) a public or private school student group or
2
3 organization,
3
4 (6) a parent-teacher association or organization
4
5 other than as specified in subparagraph b of this
5
6 paragraph, or
6
7 (7) public or private school personnel for purposes
7
8 of raising funds for the benefit of a public or
8
9 private school, public school district, public or
9
10 private school board, or public or private school
10
11 student group or organization, or
11
12 b. Sales of tangible personal property made by or to
12
13 nonprofit parent-teacher associations or organizations
13
14 exempt from taxation pursuant to the provisions of the
14
15 Internal Revenue Code of 1986, as amended, 26 U.S.C.,
15
16 Section 501(c)(3), nonprofit local public or private
16
17 school foundations which solicit money or property in
17
18 the name of any public or private school or public
18
19 school district.
19
20 The exemption provided by this paragraph for sales made by a
20
21 public or private school shall be limited to those public or private
21
22 schools accredited by the State Department of Education or
22
23 registered by the State Board of Education for purposes of
23
24 participating in federal programs. Sale of tangible personal
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Req. No. 926 Page 8
1 property in this paragraph shall include sale of admission tickets
1
2 and concessions at athletic events;
2
3 14. Sales of tangible personal property by:
3
4 a. local 4-H clubs,
4
5 b. county, regional or state 4-H councils,
5
6 c. county, regional or state 4-H committees,
6
7 d. 4-H leader associations,
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8 e. county, regional or state 4-H foundations, and
8
9 f. authorized 4-H camps and training centers.
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10 The exemption provided by this paragraph shall be limited to
10
11 sales for the purpose of raising funds for the benefit of such
11
12 organizations. Sale of tangible personal property exempted by this
12
13 paragraph shall include sale of admission tickets;
13
14 15. The first Seventy-five Thousand Dollars ($75,000.00) each
14
15 year from sale of tickets and concessions at athletic events by each
15
16 organization exempt from taxation pursuant to the provisions of the
16
17 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
17
18 501(c)(4);
18
19 16. Sales of tangible personal property or services to any
19
20 person with whom the Oklahoma Tourism and Recreation Department has
20
21 entered into a public contract and which is necessary for carrying
21
22 out such contract to assist the Department in the development and
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23 production of advertising, promotion, publicity, and public
23
24 relations programs;
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Req. No. 926 Page 9
1 17. Sales of tangible personal property or services to fire
1
2 departments organized pursuant to Section 592 of Title 18 of the
2
3 Oklahoma Statutes, which items are to be used for the purposes of
3
4 the fire department. Any person making purchases on behalf of any
4
5 such fire department shall certify, in writing, on the copy of the
5
6 invoice or sales ticket to be retained by the vendor that the
6
7 purchases are made for and on behalf of such fire department and set
7
8 out the name of such fire department. Any person who wrongfully or
8
9 erroneously certifies that the purchases are for any such fire
9
10 department or who otherwise violates the provisions of this section
10
11 shall be deemed guilty of a misdemeanor and upon conviction thereof,
11
12 shall be fined an amount equal to double the amount of sales tax
12
13 involved or incarcerated for not more than sixty (60) days, or both;
13
14 18. Complimentary or free tickets for admission to places of
14
15 amusement, sports, entertainment, exhibition, display, or other
15
16 recreational events or activities which are issued through a box
16
17 office or other entity which is operated by a state institution of
17
18 higher education with institutional employees or by a municipality
18
19 with municipal employees;
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20 19. The first Fifteen Thousand Dollars ($15,000.00) each year
20
21 from sales of tangible personal property by fire departments
21
22 organized pursuant to Title 11, 18, or 19 of the Oklahoma Statutes
22
23 for the purposes of raising funds for the benefit of the fire
23
24 department. Fire departments selling tangible personal property for
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Req. No. 926 Page 10
1 the purposes of raising funds shall be limited to no more than six
1
2 (6) days each year to raise such funds in order to receive the
2
3 exemption granted by this paragraph;
3
4 20. Sales of tangible personal property or services to any Boys
4
5 & Girls Clubs of America affiliate in this state which is not
5
6 affiliated with the Salvation Army and which is exempt from taxation
6
7 pursuant to the provisions of the Internal Revenue Code of 1986, as
7
8 amended, 26 U.S.C., Section 501(c)(3);
8
9 21. Sales of tangible personal property or services to any
9
10 organization, which takes court-adjudicated juveniles for purposes
10
11 of rehabilitation, and which is exempt from taxation pursuant to the
11
12 provisions of the Internal Revenue Code of 1986, as amended, 26
12
13 U.S.C., Section 501(c)(3), provided that at least fifty percent
13
14 (50%) of the juveniles served by such organization are court
14
15 adjudicated and the organization receives state funds in an amount
15
16 less than ten percent (10%) of the annual budget of the
16
17 organization;
17
18 22. Sales of tangible personal property or services to:
18
19 a. any health center as defined in Section 254b of Title
19
20 42 of the United States Code,
20
21 b. any clinic receiving disbursements of state monies
21
22 from the Indigent Health Care Revolving Fund pursuant
22
23 to the provisions of Section 66 of Title 56 of the
23
24 Oklahoma Statutes,
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Req. No. 926 Page 11
1 c. any community-based health center which meets all of
1
2 the following criteria:
2
3 (1) provides primary care services at no cost to the
3
4 recipient, and
4
5 (2) is exempt from taxation pursuant to the
5
6 provisions of Section 501(c)(3) of the Internal
6
7 Revenue Code of 1986, as amended, 26 U.S.C.,
7
8 Section 501(c)(3), and
8
9 d. any community mental health center as defined in
9
10 Section 3-302 of Title 43A of the Oklahoma Statutes;
10
11 23. Dues or fees including free or complimentary dues or fees
11
12 which have a value equivalent to the charge that could have
12
13 otherwise been made, to YMCAs, YWCAs, or municipally-owned
13
14 recreation centers for the use of facilities and programs;
14
15 24. The first Fifteen Thousand Dollars ($15,000.00) each year
15
16 from sales of tangible personal property or services to or by a
16
17 cultural organization established to sponsor and promote
17
18 educational, charitable, and cultural events for disadvantaged
18
19 children, and which organization is exempt from taxation pursuant to
19
20 the provisions of the Internal Revenue Code of 1986, as amended, 26
20
21 U.S.C., Section 501(c)(3);
21
22 25. Sales of tangible personal property or services to museums
22
23 or other entities which have been accredited by the American
23
24 Association Alliance of Museums. Any person making purchases on
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Req. No. 926 Page 12
1 behalf of any such museum or other entity shall certify, in writing,
1
2 on the copy of the invoice or sales ticket to be retained by the
2
3 vendor that the purchases are made for and on behalf of such museum
3
4 or other entity and set out the name of such museum or other entity.
4
5 Any person who wrongfully or erroneously certifies that the
5
6 purchases are for any such museum or other entity or who otherwise
6
7 violates the provisions of this paragraph shall be deemed guilty of
7
8 a misdemeanor and, upon conviction thereof, shall be fined an amount
8
9 equal to double the amount of sales tax involved or incarcerated for
9
10 not more than sixty (60) days, or by both such fine and
10
11 incarceration;
11
12 26. Sales of tickets for admission by any museum accredited by
12
13 the American Association Alliance of Museums. In order to be
13
14 eligible for the exemption provided by this paragraph, an amount
14
15 equivalent to the amount of the tax which would otherwise be
15
16 required to be collected pursuant to the provisions of Section 1350
16
17 et seq. of this title shall be separately stated on the admission
17
18 ticket and shall be collected and used for the sole purpose of
18
19 servicing or aiding in the servicing of debt incurred by the museum
19
20 to effect the construction, enlarging or renovation of any facility
20
21 to be used for entertainment, edification, or cultural cultivation
21
22 to which entry is gained with a paid admission ticket;
22
23 27. Sales of tangible personal property or services occurring
23
24 on or after June 1, 1995, to children's homes which are supported or
24
Req. No. 926 Page 13
1 sponsored by one or more churches, members of which serve as
1
2 trustees of the home;
2
3 28. Sales of tangible personal property or services to the
3
4 organization known as the Disabled American Veterans, Department of
4
5 Oklahoma, Inc., and subordinate chapters thereof;
5
6 29. Sales of tangible personal property or services to youth
6
7 camps which are supported or sponsored by one or more churches,
7
8 members of which serve as trustees of the organization;
8
9 30. a. Until July 1, 2022, transfer of tangible personal
9
10 property made pursuant to Section 3226 of Title 63 of
10
11 the Oklahoma Statutes by the University Hospitals
11
12 Trust, and
12
13 b. Effective July 1, 2022, transfer of tangible personal
13
14 property or services to or by:
14
15 (1) the University Hospitals Trust created pursuant
15
16 to Section 3224 of Title 63 of the Oklahoma
16
17 Statutes, or
17
18 (2) nonprofit entities which are exempt from taxation
18
19 pursuant to the provisions of the Internal
19
20 Revenue Code of 1986, as amended, of the United
20
21 States, 26 U.S.C., Section 501(c)(3), which have
21
22 entered into a joint operating agreement with the
22
23 University Hospitals Trust;
23
24
24
Req. No. 926 Page 14
1 31. Sales of tangible personal property or services to a
1
2 municipality, county, or school district pursuant to a lease or
2
3 lease-purchase agreement executed between the vendor and a
3
4 municipality, county, or school district. A copy of the lease or
4
5 lease-purchase agreement shall be retained by the vendor;
5
6 32. Sales of tangible personal property or services to any
6
7 spaceport user, as defined in the Oklahoma Space Industry
7
8 Development Act;
8
9 33. The sale, use, storage, consumption, or distribution in
9
10 this state, whether by the importer, exporter, or another person, of
10
11 any satellite or any associated launch vehicle including components
11
12 of, and parts and motors for, any such satellite or launch vehicle,
12
13 imported or caused to be imported into this state for the purpose of
13
14 export by means of launching into space. This exemption provided by
14
15 this paragraph shall not be affected by:
15
16 a. the destruction in whole or in part of the satellite
16
17 or launch vehicle,
17
18 b. the failure of a launch to occur or be successful, or
18
19 c. the absence of any transfer or title to, or possession
19
20 of, the satellite or launch vehicle after launch;
20
21 34. The sale, lease, use, storage, consumption, or distribution
21
22 in this state of any space facility, space propulsion system or
22
23 space vehicle, satellite, or station of any kind possessing space
23
24 flight capacity including components thereof;
24
Req. No. 926 Page 15
1 35. The sale, lease, use, storage, consumption, or distribution
1
2 in this state of tangible personal property, placed on or used
2
3 aboard any space facility, space propulsion system or space vehicle,
3
4 satellite, or station possessing space flight capacity, which is
4
5 launched into space, irrespective of whether such tangible property
5
6 is returned to this state for subsequent use, storage, or
6
7 consumption in any manner;
7
8 36. The sale, lease, use, storage, consumption, or distribution
8
9 in this state of tangible personal property meeting the definition
9
10 of "section 38 property" as defined in Sections 48(a)(1)(A) and
10
11 (B)(i) of the Internal Revenue Code of 1986, as amended, that is an
11
12 integral part of and used primarily in support of space flight;
12
13 however, section 38 property used in support of space flight shall
13
14 not include general office equipment, any boat, mobile home, motor
14
15 vehicle, or other vehicle of a class or type required to be
15
16 registered, licensed, titled or documented in this state or by the
16
17 United States government, or any other property not specifically
17
18 suited to supporting space activity. The term "in support of space
18
19 flight", for purposes of this paragraph, means the altering,
19
20 monitoring, controlling, regulating, adjusting, servicing, or
20
21 repairing of any space facility, space propulsion systems or space
21
22 vehicle, satellite, or station possessing space flight capacity
22
23 including the components thereof;
23
24
24
Req. No. 926 Page 16
1 37. The purchase or lease of machinery and equipment for use at
1
2 a fixed location in this state, which is used exclusively in the
2
3 manufacturing, processing, compounding, or producing of any space
3
4 facility, space propulsion system or space vehicle, satellite, or
4
5 station of any kind possessing space flight capacity. Provided, the
5
6 exemption provided for in this paragraph shall not be allowed unless
6
7 the purchaser or lessee signs an affidavit stating that the item or
7
8 items to be exempted are for the exclusive use designated herein.
8
9 Any person furnishing a false affidavit to the vendor for the
9
10 purpose of evading payment of any tax imposed by Section 1354 of
10
11 this title shall be subject to the penalties provided by law. As
11
12 used in this paragraph, "machinery and equipment" means "section 38
12
13 property" as defined in Sections 48(a)(1)(A) and (B)(i) of the
13
14 Internal Revenue Code of 1986, as amended, which is used as an
14
15 integral part of the manufacturing, processing, compounding, or
15
16 producing of items of tangible personal property. Such term
16
17 includes parts and accessories only to the extent that the exemption
17
18 thereof is consistent with the provisions of this paragraph;
18
19 38. The amount of a surcharge or any other amount which is
19
20 separately stated on an admission ticket which is imposed, collected
20
21 and used for the sole purpose of constructing, remodeling, or
21
22 enlarging facilities of a public trust having a municipality or
22
23 county as its sole beneficiary;
23
24
24
Req. No. 926 Page 17
1 39. Sales of tangible personal property or services which are
1
2 directly used in or for the benefit of a state park in this state,
2
3 which are made to an organization which is exempt from taxation
3
4 pursuant to the provisions of the Internal Revenue Code of 1986, as
4
5 amended, 26 U.S.C., Section 501(c)(3) and which is organized
5
6 primarily for the purpose of supporting one or more state parks
6
7 located in this state;
7
8 40. The sale, lease, or use of parking privileges by an
8
9 institution of The Oklahoma State System of Higher Education;
9
10 41. Sales of tangible personal property or services for use on
10
11 campus or school construction projects for the benefit of
11
12 institutions of The Oklahoma State System of Higher Education,
12
13 private institutions of higher education accredited by the Oklahoma
13
14 State Regents for Higher Education, or any public school or school
14
15 district when such projects are financed by or through the use of
15
16 nonprofit entities which are exempt from taxation pursuant to the
16
17 provisions of the Internal Revenue Code of 1986, as amended, 26
17
18 U.S.C., Section 501(c)(3);
18
19 42. Sales of tangible personal property or services by an
19
20 organization which is exempt from taxation pursuant to the
20
21 provisions of the Internal Revenue Code of 1986, as amended, 26
21
22 U.S.C., Section 501(c)(3), in the course of conducting a national
22
23 championship sports event, but only if all or a portion of the
23
24 payment in exchange therefor would qualify as the receipt of a
24
Req. No. 926 Page 18
1 qualified sponsorship payment described in Internal Revenue Code of
1
2 1986, as amended, 26 U.S.C., Section 513(i). Sales exempted
2
3 pursuant to this paragraph shall be exempt from all Oklahoma sales,
3
4 use, excise, and gross receipts taxes;
4
5 43. Sales of tangible personal property or services to or by an
5
6 organization which:
6
7 a. is exempt from taxation pursuant to the provisions of
7
8 the Internal Revenue Code of 1986, as amended, 26
8
9 U.S.C., Section 501(c)(3),
9
10 b. is affiliated with a comprehensive university within
10
11 The Oklahoma State System of Higher Education, and
11
12 c. has been organized primarily for the purpose of
12
13 providing education and teacher training and
13
14 conducting events relating to robotics;
14
15 44. The first Fifteen Thousand Dollars ($15,000.00) each year
15
16 from sales of tangible personal property to or by youth athletic
16
17 teams which are part of an athletic organization exempt from
17
18 taxation pursuant to the provisions of the Internal Revenue Code of
18
19 1986, as amended, 26 U.S.C., Section 501(c)(4), for the purposes of
19
20 raising funds for the benefit of the team;
20
21 45. Sales of tickets for admission to a collegiate athletic
21
22 event that is held in a facility owned or operated by a municipality
22
23 or a public trust of which the municipality is the sole beneficiary
23
24 and that actually determines or is part of a tournament or
24
Req. No. 926 Page 19
1 tournament process for determining a conference tournament
1
2 championship, a conference championship, or a national championship;
2
3 46. Sales of tangible personal property or services to or by an
3
4 organization which is exempt from taxation pursuant to the
4
5 provisions of the Internal Revenue Code of 1986, as amended, 26
5
6 U.S.C., Section 501(c)(3) and is operating the Oklahoma City
6
7 National Memorial and Museum, an affiliate of the National Park
7
8 System;
8
9 47. Sales of tangible personal property or services to
9
10 organizations which are exempt from federal taxation pursuant to the
10
11 provisions of Section 501(c)(3) of the Internal Revenue Code of
11
12 1986, as amended, 26 U.S.C., Section 501(c)(3), the memberships of
12
13 which are limited to honorably discharged veterans, and which
13
14 furnish financial support to area veterans' organizations to be used
14
15 for the purpose of constructing a memorial or museum;
15
16 48. Sales of tangible personal property or services on or after
16
17 January 1, 2003, to an organization which is exempt from taxation
17
18 pursuant to the provisions of the Internal Revenue Code of 1986, as
18
19 amended, 26 U.S.C., Section 501(c)(3) that is expending monies
19
20 received from a private foundation grant in conjunction with
20
21 expenditures of local sales tax revenue to construct a local public
21
22 library;
22
23 49. Sales of tangible personal property or services to a state
23
24 that borders this state or any political subdivision of that state,
24
Req. No. 926 Page 20
1 but only to the extent that the other state or political subdivision
1
2 exempts or does not impose a tax on similar sales of items to this
2
3 state or a political subdivision of this state;
3
4 50. Effective July 1, 2005, sales of tangible personal property
4
5 or services to the Career Technology Student Organizations career
5
6 technology student organizations under the direction and supervision
6
7 of the Oklahoma Department of Career and Technology Education;
7
8 51. Sales of tangible personal property to a public trust
8
9 having either a single city, town or county or multiple cities,
9
10 towns or counties, or combination thereof as beneficiary or
10
11 beneficiaries or a nonprofit organization which is exempt from
11
12 taxation pursuant to the provisions of the Internal Revenue Code of
12
13 1986, as amended, 26 U.S.C., Section 501(c)(3) for the purpose of
13
14 constructing improvements to or expanding a hospital or nursing home
14
15 owned and operated by any such public trust or nonprofit entity
15
16 prior to July 1, 2008, in counties with a population of less than
16
17 one hundred thousand (100,000) persons, according to the most recent
17
18 Federal Decennial Census. As used in this paragraph, "constructing
18
19 improvements to or expanding" shall not mean any expense for routine
19
20 maintenance or general repairs and shall require a project cost of
20
21 at least One Hundred Thousand Dollars ($100,000.00). For purposes
21
22 of this paragraph, sales made to a contractor or subcontractor that
22
23 enters into a contractual relationship with a public trust or
23
24 nonprofit entity as described by this paragraph shall be considered
24
Req. No. 926 Page 21
1 sales made to the public trust or nonprofit entity. The exemption
1
2 authorized by this paragraph shall be administered in the form of a
2
3 refund from the sales tax revenues apportioned pursuant to Section
3
4 1353 of this title and the vendor shall be required to collect the
4
5 sales tax otherwise applicable to the transaction. The purchaser
5
6 may apply for a refund of the sales tax paid in the manner
6
7 prescribed by this paragraph. Within thirty (30) days after the end
7
8 of each fiscal year, any purchaser that is entitled to make
8
9 application for a refund based upon the exempt treatment authorized
9
10 by this paragraph may file an application for refund of the sales
10
11 taxes paid during such preceding fiscal year. The Oklahoma Tax
11
12 Commission shall prescribe a form for purposes of making the
12
13 application for refund. The Tax Commission shall determine whether
13
14 or not the total amount of sales tax exemptions claimed by all
14
15 purchasers is equal to or less than Six Hundred Fifty Thousand
15
16 Dollars ($650,000.00). If such claims are less than or equal to
16
17 that amount, the Tax Commission shall make refunds to the purchasers
17
18 in the full amount of the documented and verified sales tax amounts.
18
19 If such claims by all purchasers are in excess of Six Hundred Fifty
19
20 Thousand Dollars ($650,000.00), the Tax Commission shall determine
20
21 the amount of each purchaser's claim, the total amount of all claims
21
22 by all purchasers, and the percentage each purchaser's claim amount
22
23 bears to the total. The resulting percentage determined for each
23
24 purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars
24
Req. No. 926 Page 22
1 ($650,000.00) to determine the amount of refundable sales tax to be
1
2 paid to each purchaser. The pro rata refund amount shall be the
2
3 only method to recover sales taxes paid during the preceding fiscal
3
4 year and no balance of any sales taxes paid on a pro rata basis
4
5 shall be the subject of any subsequent refund claim pursuant to this
5
6 paragraph;
6
7 52. Effective July 1, 2006, sales of tangible personal property
7
8 or services to any organization which assists, trains, educates, and
8
9 provides housing for physically and mentally handicapped disabled
9
10 persons and which is exempt from taxation pursuant to the provisions
10
11 of the Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
11
12 501(c)(3) and that receives at least eighty-five percent (85%) of
12
13 its annual budget from state or federal funds. In order to receive
13
14 the benefit of the exemption authorized by this paragraph, the
14
15 taxpayer shall be required to make payment of the applicable sales
15
16 tax at the time of sale to the vendor in the manner otherwise
16
17 required by law. Notwithstanding any other provision of the
17
18 Oklahoma Uniform Tax Procedure Code to the contrary, the taxpayer
18
19 shall be authorized to file a claim for refund of sales taxes paid
19
20 that qualify for the exemption authorized by this paragraph for a
20
21 period of one (1) year after the date of the sale transaction. The
21
22 taxpayer shall be required to provide documentation as may be
22
23 prescribed by the Oklahoma Tax Commission in support of the refund
23
24 claim. The total amount of sales tax qualifying for exempt
24
Req. No. 926 Page 23
1 treatment pursuant to this paragraph shall not exceed One Hundred
1
2 Seventy-five Thousand Dollars ($175,000.00) each fiscal year.
2
3 Claims for refund shall be processed in the order in which such
3
4 claims are received by the Oklahoma Tax Commission. If a claim
4
5 otherwise timely filed exceeds the total amount of refunds payable
5
6 for a fiscal year, such claim shall be barred;
6
7 53. The first Two Thousand Dollars ($2,000.00) each year of
7
8 sales of tangible personal property or services to, by, or for the
8
9 benefit of a qualified neighborhood watch organization that is
9
10 endorsed or supported by or working directly with a law enforcement
10
11 agency with jurisdiction in the area in which the neighborhood watch
11
12 organization is located. As used in this paragraph, "qualified
12
13 neighborhood watch organization" means an organization that is a
13
14 not-for-profit corporation under the laws of this state that was
14
15 created to help prevent criminal activity in an area through
15
16 community involvement and interaction with local law enforcement and
16
17 which is one of the first two thousand organizations which makes
17
18 application to the Oklahoma Tax Commission for the exemption after
18
19 March 29, 2006;
19
20 54. Sales of tangible personal property to a nonprofit
20
21 organization, exempt from taxation pursuant to the provisions of the
21
22 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
22
23 501(c)(3), organized primarily for the purpose of providing services
23
24 to homeless persons during the day and located in a metropolitan
24
Req. No. 926 Page 24
1 area with a population in excess of five hundred thousand (500,000)
1
2 persons according to the latest Federal Decennial Census. The
2
3 exemption authorized by this paragraph shall be applicable to sales
3
4 of tangible personal property to a qualified entity occurring on or
4
5 after January 1, 2005;
5
6 55. Sales of tangible personal property or services to or by an
6
7 organization which is exempt from taxation pursuant to the
7
8 provisions of the Internal Revenue Code of 1986, as amended, 26
8
9 U.S.C., Section 501(c)(3) for events the principal purpose of which
9
10 is to provide funding for the preservation of wetlands and habitat
10
11 for wild ducks;
11
12 56. Sales of tangible personal property or services to or by an
12
13 organization which is exempt from taxation pursuant to the
13
14 provisions of the Internal Revenue Code of 1986, as amended, 26
14
15 U.S.C., Section 501(c)(3) for events the principal purpose of which
15
16 is to provide funding for the preservation and conservation of wild
16
17 turkeys;
17
18 57. Sales of tangible personal property or services to an
18
19 organization which:
19
20 a. is exempt from taxation pursuant to the provisions of
20
21 the Internal Revenue Code of 1986, as amended, 26
21
22 U.S.C., Section 501(c)(3), and
22
23
23
24
24
Req. No. 926 Page 25
1 b. is part of a network of community-based, autonomous
1
2 member organizations that meets the following
2
3 criteria:
3
4 (1) serves people with workplace disadvantages and
4
5 disabilities by providing job training and
5
6 employment services, as well as job placement
6
7 opportunities and post-employment support,
7
8 (2) has locations in the United States and at least
8
9 twenty other countries,
9
10 (3) collects donated clothing and household goods to
10
11 sell in retail stores and provides contract labor
11
12 services to business and government, and
12
13 (4) provides documentation to the Oklahoma Tax
13
14 Commission that over seventy-five percent (75%)
14
15 of its revenues are channeled into employment,
15
16 job training and placement programs, and other
16
17 critical community services;
17
18 58. Sales of tickets made on or after September 21, 2005, and
18
19 complimentary or free tickets for admission issued on or after
19
20 September 21, 2005, which have a value equivalent to the charge that
20
21 would have otherwise been made, for admission to a professional
21
22 athletic event in which a team in the National Basketball
22
23 Association is a participant, which is held in a facility owned or
23
24 operated by a municipality, a county, or a public trust of which a
24
Req. No. 926 Page 26
1 municipality or a county is the sole beneficiary, and sales of
1
2 tickets made on or after July 1, 2007, and complimentary or free
2
3 tickets for admission issued on or after July 1, 2007, which have a
3
4 value equivalent to the charge that would have otherwise been made,
4
5 for admission to a professional athletic event in which a team in
5
6 the National Hockey League is a participant, which is held in a
6
7 facility owned or operated by a municipality, a county, or a public
7
8 trust of which a municipality or a county is the sole beneficiary;
8
9 59. Sales of tickets for admission and complimentary or free
9
10 tickets for admission which have a value equivalent to the charge
10
11 that would have otherwise been made to a professional sporting event
11
12 involving ice hockey, baseball, basketball, football or arena
12
13 football, or soccer. As used in this paragraph, "professional
13
14 sporting event" means an organized athletic competition between
14
15 teams that are members of an organized league or association with
15
16 centralized management, other than a national league or national
16
17 association, that imposes requirements for participation in the
17
18 league upon the teams, the individual athletes, or both, and which
18
19 uses a salary structure to compensate the athletes;
19
20 60. Sales of tickets for admission to an annual event sponsored
20
21 by an educational and charitable organization of women which is
21
22 exempt from taxation pursuant to the provisions of the Internal
22
23 Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and
23
24 has as its mission promoting volunteerism, developing the potential
24
Req. No. 926 Page 27
1 of women and improving the community through the effective action
1
2 and leadership of trained volunteers;
2
3 61. Sales of tangible personal property or services to an
3
4 organization, which is exempt from taxation pursuant to the
4
5 provisions of the Internal Revenue Code of 1986, as amended, 26
5
6 U.S.C., Section 501(c)(3), and which is itself a member of an
6
7 organization which is exempt from taxation pursuant to the
7
8 provisions of the Internal Revenue Code of 1986, as amended, 26
8
9 U.S.C., Section 501(c)(3), if the membership organization is
9
10 primarily engaged in advancing the purposes of its member
10
11 organizations through fundraising, public awareness, or other
11
12 efforts for the benefit of its member organizations, and if the
12
13 member organization is primarily engaged either in providing
13
14 educational services and programs concerning health-related diseases
14
15 and conditions to individuals suffering from such health-related
15
16 diseases and conditions or their caregivers and family members or
16
17 support to such individuals, or in health-related research as to
17
18 such diseases and conditions, or both. In order to qualify for the
18
19 exemption authorized by this paragraph, the member nonprofit
19
20 organization shall be required to provide proof to the Oklahoma Tax
20
21 Commission of its membership status in the membership organization;
21
22 62. Sales of tangible personal property or services to or by an
22
23 organization which is part of a national volunteer women's service
23
24 organization dedicated to promoting patriotism, preserving American
24
Req. No. 926 Page 28
1 history, and securing better education for children and which has at
1
2 least 168,000 one hundred sixty-eight thousand members in 3,000
2
3 three thousand chapters across the United States;
3
4 63. Sales of tangible personal property or services to or by a
4
5 YWCA or YMCA organization which is part of a national nonprofit
5
6 community service organization working to meet the health and social
6
7 service needs of its members across the United States;
7
8 64. Sales of tangible personal property or services to or by a
8
9 veteran's organization which is exempt from taxation pursuant to the
9
10 provisions of the Internal Revenue Code of 1986, as amended, 26
10
11 U.S.C., Section 501(c)(19) and which is known as the Veterans of
11
12 Foreign Wars of the United States, Oklahoma Chapters;
12
13 65. Sales of boxes of food by a church or by an organization,
13
14 which is exempt from taxation pursuant to the provisions of the
14
15 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
15
16 501(c)(3). To qualify under the provisions of this paragraph, the
16
17 organization must be organized for the primary purpose of feeding
17
18 needy individuals or to encourage volunteer service by requiring
18
19 such service in order to purchase food. These boxes shall only
19
20 contain edible staple food items;
20
21 66. Sales of tangible personal property or services to any
21
22 person with whom a church has duly entered into a construction
22
23 contract, necessary for carrying out such contract or to any
23
24 subcontractor to such a construction contract;
24
Req. No. 926 Page 29
1 67. Sales of tangible personal property or services used
1
2 exclusively for charitable or educational purposes, to or by an
2
3 organization which:
3
4 a. is exempt from taxation pursuant to the provisions of
4
5 the Internal Revenue Code of 1986, as amended, 26
5
6 U.S.C., Section 501(c)(3),
6
7 b. has filed a Not-for-Profit Certificate of
7
8 Incorporation in this state, and
8
9 c. is organized for the purpose of:
9
10 (1) providing training and education to
10
11 developmentally disabled individuals,
11
12 (2) educating the community about the rights,
12
13 abilities, and strengths of developmentally
13
14 disabled individuals, and
14
15 (3) promoting unity among developmentally disabled
15
16 individuals in their community and geographic
16
17 area;
17
18 68. Sales of tangible personal property or services to any
18
19 organization which is a shelter for abused, neglected, or abandoned
19
20 children and which is exempt from taxation pursuant to the
20
21 provisions of the Internal Revenue Code of 1986, as amended, 26
21
22 U.S.C., Section 501(c)(3); provided, until July 1, 2008, such
22
23 exemption shall apply only to eligible shelters for children from
23
24 birth to age twelve (12) and after July 1, 2008, such exemption
24
Req. No. 926 Page 30
1 shall apply to eligible shelters for children from birth to age
1
2 eighteen (18);
2
3 69. Sales of tangible personal property or services to a child
3
4 care center which is licensed pursuant to the Oklahoma Child Care
4
5 Facilities Licensing Act and which:
5
6 a. possesses a 3-star rating from the Department of Human
6
7 Services Reaching for the Stars Program or a national
7
8 accreditation, and
8
9 b. allows on-site universal prekindergarten education to
9
10 be provided to four-year-old children through a
10
11 contractual agreement with any public school or school
11
12 district.
12
13 For the purposes of this paragraph, sales made to any person,
13
14 firm, agency, or entity that has entered previously into a
14
15 contractual relationship with a child care center for construction
15
16 and improvement of buildings and other structures owned by the child
16
17 care center and operated for educational purposes shall be
17
18 considered sales made to a child care center. Any such person,
18
19 firm, agency, or entity making purchases on behalf of a child care
19
20 center shall certify, in writing, on the copy of the invoice or
20
21 sales ticket the nature of the purchase. Any such person, or person
21
22 acting on behalf of a firm, agency, or entity making purchases on
22
23 behalf of a child care center in violation of this paragraph shall
23
24 be guilty of a misdemeanor and upon conviction thereof shall be
24
Req. No. 926 Page 31
1 fined an amount equal to double the amount of sales tax involved or
1
2 incarcerated for not more than sixty (60) days or both;
2
3 70. a. Sales of tangible personal property to a service
3
4 organization of mothers who have children who are
4
5 serving or who have served in the military, which
5
6 service organization is exempt from taxation pursuant
6
7 to the provisions of the Internal Revenue Code of
7
8 1986, as amended, 26 U.S.C., Section 501(c)(19) and
8
9 which is known as the Blue Star Mothers of America,
9
10 Inc. The exemption provided by this paragraph shall
10
11 only apply to the purchase of tangible personal
11
12 property actually sent to United States military
12
13 personnel overseas who are serving in a combat zone
13
14 and not to any other tangible personal property
14
15 purchased by the organization. Provided, this
15
16 exemption shall not apply to any sales tax levied by a
16
17 city, town, county, or any other jurisdiction in this
17
18 state.
18
19 b. The exemption authorized by this paragraph shall be
19
20 administered in the form of a refund from the sales
20
21 tax revenues apportioned pursuant to Section 1353 of
21
22 this title, and the vendor shall be required to
22
23 collect the sales tax otherwise applicable to the
23
24 transaction. The purchaser may apply for a refund of
24
Req. No. 926 Page 32
1 the state sales tax paid in the manner prescribed by
1
2 this paragraph. Within sixty (60) days after the end
2
3 of each calendar quarter, any purchaser that is
3
4 entitled to make application for a refund based upon
4
5 the exempt treatment authorized by this paragraph may
5
6 file an application for refund of the state sales
6
7 taxes paid during such preceding calendar quarter.
7
8 The Tax Commission shall prescribe a form for purposes
8
9 of making the application for refund.
9
10 c. A purchaser who applies for a refund pursuant to this
10
11 paragraph shall certify that the items were actually
11
12 sent to military personnel overseas in a combat zone.
12
13 Any purchaser that applies for a refund for the
13
14 purchase of items that are not authorized for
14
15 exemption under this paragraph shall be subject to a
15
16 penalty in the amount of Five Hundred Dollars
16
17 ($500.00);
17
18 71. Sales of food and snack items to or by an organization
18
19 which is exempt from taxation pursuant to the provisions of the
19
20 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
20
21 501(c)(3), whose primary and principal purpose is providing funding
21
22 for scholarships in the medical field;
22
23 72. Sales of tangible personal property or services for use
23
24 solely on construction projects for organizations which are exempt
24
Req. No. 926 Page 33
1 from taxation pursuant to the provisions of the Internal Revenue
1
2 Code of 1986, as amended, 26 U.S.C., Section 501(c)(3) and whose
2
3 purpose is providing end-of-life care and access to hospice services
3
4 to low-income individuals who live in a facility owned by the
4
5 organization. The exemption provided by this paragraph applies to
5
6 sales to the organization as well as to sales to any person with
6
7 whom the organization has duly entered into a construction contract,
7
8 necessary for carrying out such contract or to any subcontractor to
8
9 such a construction contract. Any person making purchases on behalf
9
10 of such organization shall certify, in writing, on the copy of the
10
11 invoice or sales ticket to be retained by the vendor that the
11
12 purchases are made for and on behalf of such organization and set
12
13 out the name of such organization. Any person who wrongfully or
13
14 erroneously certifies that purchases are for any of the above-named
14
15 organizations or who otherwise violates this section shall be guilty
15
16 of a misdemeanor and upon conviction thereof shall be fined an
16
17 amount equal to double the amount of sales tax involved or
17
18 incarcerated for not more than sixty (60) days or both;
18
19 73. Sales of tickets for admission to events held by
19
20 organizations exempt from taxation pursuant to the provisions of the
20
21 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
21
22 501(c)(3) that are organized for the purpose of supporting general
22
23 hospitals licensed by the State Department of Health;
23
24 74. Sales of tangible personal property or services:
24
Req. No. 926 Page 34
1 a. to a foundation which is exempt from taxation pursuant
1
2 to the provisions of the Internal Revenue Code of
2
3 1986, as amended, 26 U.S.C., Section 501(c)(3) and
3
4 which raises tax-deductible contributions in support
4
5 of a wide range of firearms-related public interest
5
6 activities of the National Rifle Association of
6
7 America and other organizations that defend and foster
7
8 Second Amendment rights, and
8
9 b. to or by a grassroots fundraising program for sales
9
10 related to events to raise funds for a foundation
10
11 meeting the qualifications of subparagraph a of this
11
12 paragraph;
12
13 75. Sales by an organization or entity which is exempt from
13
14 taxation pursuant to the provisions of the Internal Revenue Code of
14
15 1986, as amended, 26 U.S.C., Section 501(c)(3) which are related to
15
16 a fundraising event sponsored by the organization or entity when the
16
17 event does not exceed any five (5) consecutive days and when the
17
18 sales are not in the organization's or the entity's regular course
18
19 of business. Provided, the exemption provided in this paragraph
19
20 shall be limited to tickets sold for admittance to the fundraising
20
21 event and items which were donated to the organization or entity for
21
22 sale at the event;
22
23 76. Effective November 1, 2017, sales of tangible personal
23
24 property or services to an organization which is exempt from
24
Req. No. 926 Page 35
1 taxation pursuant to the provisions of the Internal Revenue Code of
1
2 1986, as amended, 26 U.S.C., Section 501(c)(3) and operates as a
2
3 collaborative model which connects community agencies in one
3
4 location to serve individuals and families affected by violence and
4
5 where victims have access to services and advocacy at no cost to the
5
6 victim;
6
7 77. Effective July 1, 2018, sales of tangible personal property
7
8 or services to or by an association which is exempt from taxation
8
9 pursuant to the provisions of the Internal Revenue Code of 1986, as
9
10 amended, 26 U.S.C., Section 501(c)(19) and which is known as the
10
11 National Guard Association of Oklahoma;
11
12 78. Effective July 1, 2018, sales of tangible personal property
12
13 or services to or by an association which is exempt from taxation
13
14 pursuant to the provisions of the Internal Revenue Code of 1986, as
14
15 amended, 26 U.S.C., Section 501(c)(4) and which is known as the
15
16 Marine Corps League of Oklahoma;
16
17 79. Sales of tangible personal property or services to the
17
18 American Legion, whether the purchase is made by the entity
18
19 chartered by the United States Congress or is an entity organized
19
20 under the laws of this or another state pursuant to the authority of
20
21 the national American Legion organization;
21
22 80. Sales of tangible personal property or services to or by an
22
23 organization which is:
23
24
24
Req. No. 926 Page 36
1 a. exempt from taxation pursuant to the provisions of the
1
2 Internal Revenue Code of 1986, as amended, 26 U.S.C.,
2
3 Section 501(c)(3),
3
4 b. verified with a letter from the MIT Fab Foundation as
4
5 an official member of the Fab Lab Network in
5
6 compliance with the Fab Charter, and
6
7 c. able to provide documentation that its primary and
7
8 principal purpose is to provide community access to
8
9 advanced 21st century manufacturing and digital
9
10 fabrication tools for science, technology,
10
11 engineering, art and math (STEAM) learning skills,
11
12 developing inventions, creating and sustaining
12
13 businesses, and producing personalized products;
13
14 81. Effective November 1, 2021, sales of tangible personal
14
15 property or services used solely for construction and remodeling
15
16 projects to an organization which is exempt from taxation pursuant
16
17 to the provisions of the Internal Revenue Code of 1986, as amended,
17
18 26 U.S.C., Section 501(c)(3), and which meets the following
18
19 requirements:
19
20 a. its primary purpose is to construct or remodel and
20
21 sell affordable housing and provide homeownership
21
22 education to residents of Oklahoma that have an income
22
23 that is below one hundred percent (100%) of the Family
23
24
24
Req. No. 926 Page 37
1 Median Income guidelines as defined by the U.S.
1
2 Department of Housing and Urban Development,
2
3 b. it conducts its activities in a manner that serves
3
4 public or charitable purposes, rather than commercial
4
5 purposes,
5
6 c. it receives funding and revenue and charges fees in a
6
7 manner that does not incentivize it or its employees
7
8 to act other than in the best interests of its
8
9 clients, and
9
10 d. it compensates its employees in a manner that does not
10
11 incentivize employees to act other than in the best
11
12 interests of its clients;
12
13 82. Effective November 1, 2021, sales of tangible personal
13
14 property or services to a nonprofit entity, organized pursuant to
14
15 Oklahoma law before January 1, 2022, exempt from federal income
15
16 taxation pursuant to Section 501(c) of the Internal Revenue Code of
16
17 1986, as amended, the principal functions of which are to provide
17
18 assistance to natural persons following a disaster, with program
18
19 emphasis on repair or restoration to single-family residential
19
20 dwellings or the construction of a replacement single-family
20
21 residential dwelling. As used in this paragraph, "disaster" means
21
22 damage to property with or without accompanying injury to persons
22
23 from heavy rain, high winds, tornadic winds, drought, wildfire,
23
24 snow, ice, geologic disturbances, explosions, chemical accidents or
24
Req. No. 926 Page 38
1 spills, and other events causing damage to property on a large
1
2 scale. For purposes of this paragraph, an entity that expended at
2
3 least seventy-five percent (75%) of its funds on the restoration to
3
4 single-family housing following a disaster including related general
4
5 and administrative expenses, shall be eligible for the exemption
5
6 authorized by this paragraph;
6
7 83. Effective November 1, 2021, through December 31, 2024,
7
8 sales of tangible personal property or services to a museum that:
8
9 a. operates as a part of an organization which is exempt
9
10 from taxation pursuant to the provisions of the
10
11 Internal Revenue Code of 1986, as amended, 26 U.S.C.,
11
12 Section 501(c)(3),
12
13 b. is not accredited by the American Alliance of Museums,
13
14 and
14
15 c. operates on an annual budget of less than One Million
15
16 Dollars ($1,000,000.00);
16
17 84. Until July 1, 2022, sales of tangible personal property or
17
18 services for use in a clinical practice or medical facility operated
18
19 by an organization which is exempt from taxation pursuant to the
19
20 provisions of the Internal Revenue Code of 1986, as amended, of the
20
21 United States, 26 U.S.C., Section 501(c)(3), and which has entered
21
22 into a joint operating agreement with the University Hospitals Trust
22
23 created pursuant to Section 3224 of Title 63 of the Oklahoma
23
24 Statutes. The exemption provided by this paragraph shall be limited
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1 to the purchase of tangible personal property and services for use
1
2 in clinical practices or medical facilities acquired or leased by
2
3 the organization from the University Hospitals Authority, University
3
4 Hospitals Trust, or the University of Oklahoma on or after June 1,
4
5 2021;
5
6 85. Sales of tangible personal property or services to or by a
6
7 women's veterans organization, and its subchapters in this state,
7
8 that is exempt from taxation pursuant to the provisions of the
8
9 Internal Revenue Code of 1986, as amended, 26 U.S.C., Section
9
10 501(c)(19) and is known as the Oklahoma Women Veterans Organization;
10
11 86. Sales of tangible personal property or services to a
11
12 nonprofit entity, organized pursuant to Oklahoma law before January
12
13 1, 2019, exempt from federal income taxation pursuant to Section
13
14 501(c) of the Internal Revenue Code of 1986, as amended, the
14
15 principal functions of which are to provide assistance to natural
15
16 persons following a disaster, with program emphasis on repair or
16
17 restoration to single-family residential dwellings or the
17
18 construction of a replacement single-family residential dwelling.
18
19 For purposes of this paragraph, an entity operated exclusively for
19
20 charitable and educational purposes through the coordination of
20
21 volunteers for the disaster recovery of homes (as derived from Part
21
22 III, Statement of Program Services, of Internal Revenue Service Form
22
23 990) and which offers its services free of charge to disaster
23
24 survivors statewide who are low income with no or limited means of
24
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1 recovery on their own for the restoration to single-family housing
1
2 following a disaster including related general and administrative
2
3 expenses, shall be eligible for the exemption authorized by this
3
4 paragraph. The exemption provided by this paragraph shall only be
4
5 applicable to sales made on or after the effective date of this act
5
6 July 1, 2022. As used in this paragraph, "disaster" means damage to
6
7 property with or without accompanying injury to persons from heavy
7
8 rain, high winds, tornadic winds, drought, wildfire, snow, ice,
8
9 geologic disturbances, explosions, chemical accidents or spills and
9
10 other events causing damage to property on a large scale; and
10
11 87. Effective July 1, 2022, sales of tangible personal property
11
12 or services to an organization which is exempt from taxation
12
13 pursuant to the provisions of the Internal Revenue Code of 1986, as
13
14 amended, 26 U.S.C., Section 501(c)(3) and which provides support to
14
15 veterans, active duty members of the Armed Forces, reservists, and
15
16 members of the National Guard to assist with the transition to
16
17 civilian life and which provides documentation to the Oklahoma Tax
17
18 Commission that over seventy percent (70%) of its revenue is
18
19 expended on support for transition to civilian life.
19
20 SECTION 2. This act shall become effective November 1, 2025.
20
21
21
22 60-1-926 QD 12/18/2024 11:57:08 AM
22
23
23
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Req. No. 926 Page 41Every fact on this page links to its source, starting with the official bill record.