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 STATE OF OKLAHOMA
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2 1st Session of the 60th Legislature (2025)
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3 SENATE BILL 680 By: Paxton
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6 AS INTRODUCED
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7 An Act relating to heated tobacco products; amending
7 68 O.S. 2021, Sections 301, 321, and 322, which
8 relate to the cigarette stamp tax; modifying
8 definition; providing exemption; requiring the
9 Oklahoma Tax Commission to prescribe certain rules
9 and regulations to comply with certain exemption;
10 updating statutory language; updating statutory
10 references; and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 68 O.S. 2021, Section 301, is
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15 amended to read as follows:
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16 Section 301. For purposes of Section 301 et seq. of this title:
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17 1. The term "cigarette" is defined to mean and include all
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18 rolled tobacco or any substitute therefor, wrapped in paper or any
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19 substitute therefor and weighing not to exceed three (3) pounds per
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20 thousand cigarettes. The term cigarette shall include products that
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21 are intended to be heated or burned;
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22 2. The term "person" is defined to mean and include any
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23 individual, company, partnership, joint venture, joint agreement,
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24 association (mutual or otherwise), limited liability company,
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1 corporation, estate, trust, business trust receiver, or trustee
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2 appointed by any state or federal court, or otherwise, syndicate, or
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3 any political subdivision of the state or combination acting as a
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4 unit, in the plural or singular number;
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5 3. The term "wholesaler", "distributor" and/or "jobber" is
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6 defined to mean and include a person, firm or corporation organized
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7 and existing, or doing business, primarily to sell cigarettes to,
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8 and render service to retailers in the territory such person, firm
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9 or corporation chooses to serve, and that:
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10 a. purchases cigarettes directly from the manufacturer,
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11 b. at least seventy-five percent (75%) of whose gross
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12 sales are made at wholesale,
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13 c. handles goods in wholesale quantities and sells
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14 through salespersons, advertising and/or sales
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15 promotion devices,
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16 d. carries at all times at its principal place of
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17 business a representative stock of cigarettes for
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18 sale, and
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19 e. comes into the possession of cigarettes for the
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20 purpose of selling them to retailers or to persons
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21 outside or within the state who might resell or retail
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22 such cigarettes to consumers.
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23 In addition to the foregoing, and irrespective of the percentage
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24 or type of sales, the term "wholesaler" wholesaler, "distributor"
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1 distributor and/or "jobber" jobber shall also include all purchasers
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2 of cigarettes making purchases directly from the manufacturer for
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3 distribution at wholesale or retail sale and this shall not affect
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4 the requirements relating to retail licenses;
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5 4. The term "retailer" is defined to be:
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6 a. a person who comes into the possession of cigarettes
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7 for the purpose of selling, or who sells them at
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8 retail, or
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9 b. a person, not coming within the classification of
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10 wholesaler, distributor and/or jobber as herein
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11 defined, having possession of more than one thousand
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12 cigarettes;
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13 5. The term "consumer" is defined to be a person who receives
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14 or who in any way comes into possession of cigarettes for the
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15 purpose of consuming them, giving them away, or disposing of them in
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16 a way other than by sale, barter or exchange;
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17 6. The term "Tax Commission" is defined to mean the Oklahoma
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18 Tax Commission;
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19 7. The term "sale" and/or "sales" is hereby defined to be and
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20 declared to include sales, barters, exchanges and every other
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21 manner, method and form of transferring the ownership of personal
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22 property from one person to another, and is also declared to be the
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23 use or consumption in this state in the first instance of cigarettes
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24 received from without the state or of any other cigarettes upon
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1 which the tax has not been paid. The term "first sale" shall mean
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2 and include the first sale or distribution of cigarettes in
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3 intrastate commerce or the first use or consumption of cigarettes
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4 within this state;
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5 8. The term "stamp" as herein used shall mean the stamp or
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6 stamps by use of which:
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7 a. the tax levied pursuant to the provisions of Section
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8 301 et seq. of this title is paid, or
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9 b. the tax levied pursuant to the provisions of Section
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10 349 of this title is paid, or
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11 c. the payment in lieu of taxes authorized pursuant to a
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12 compact entered into by the State of Oklahoma this
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13 state and a federally recognized Indian tribe or
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14 nation pursuant to the provisions of subsection C of
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15 Section 346 of this title is paid;
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16 9. The term "drop shipment" shall mean and include any delivery
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17 of cigarettes received by any person within this state when payment
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18 for such cigarettes is made to the shipper or seller by or through a
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19 person other than the consignee;
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20 10. The term "distributing agent" shall mean and include every
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21 person in this state who acts as an agent of any person outside the
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22 state by receiving cigarettes in interstate commerce and storing
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23 such cigarettes subject to distribution or delivery upon order from
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24 the person outside the state to distributors, wholesale dealers and
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1 retail dealers, or to consumers. The term "distributing agent"
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2 distributing agent shall also mean and include any person who
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3 solicits or takes orders for cigarettes to be shipped in interstate
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4 commerce to a person in this state by a person residing outside of
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5 Oklahoma, the tax not having been paid on such cigarettes;
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6 11. The term "vending machine" shall mean and include any coin
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7 operating machine, contrivance, or device, by means of which
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8 cigarettes are sold or dispensed in their original container;
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9 12. The term "use" means and includes the exercise of any right
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10 or power over cigarettes incident to the ownership or possession
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11 thereof, except that it shall not include the sale of cigarettes in
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12 the regular course of business;
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13 13. a. The term "delivery sale" means any sale of cigarettes
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14 to a consumer in Oklahoma where either:
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15 (1) the purchaser submits the order for such sale by
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16 means of a telephonic or other method of voice
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17 transmission, the mails or any other delivery
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18 service, or the Internet or other online service,
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19 or
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20 (2) the cigarettes are delivered by use of the mails
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21 or other delivery service.
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22 b. A sale of cigarettes which satisfies the criteria in
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23 subparagraph a of this paragraph shall be a delivery
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1 sale regardless of whether the seller is located
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2 within or outside of Oklahoma.
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3 c. A sale of cigarettes not for personal consumption to a
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4 person who is a wholesale dealer or a retail dealer
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5 shall not be a delivery sale.
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6 d. For purposes of this paragraph, any sale of cigarettes
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7 to an individual in Oklahoma shall be treated as a
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8 sale to a consumer unless such individual is licensed
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9 as a distributor or retailer of cigarettes by the Tax
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10 Commission;
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11 14. The term "delivery service" means any person, including,
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12 but not limited to, the United States Postal Service, that is
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13 engaged in the commercial delivery of letters, packages, or other
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14 containers;
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15 15. The term "manufacturer" means any person who manufactures,
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16 fabricates, assembles, processes, or labels a finished cigarette; or
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17 imports, either directly or indirectly, a finished cigarette for
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18 sale or distribution in this state;
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19 16. The term "mails" or "mailing" means the shipment of
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20 cigarettes through the United States Postal Service;
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21 17. The term "shipping container" means a container in which
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22 cigarettes are shipped in connection with a delivery sale; and
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23 18. The term "shipping documents" means bills of lading,
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24 airbills, or any other documents used to evidence the undertaking by
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1 a delivery service to deliver letters, packages, or other
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2 containers.
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3 SECTION 2. AMENDATORY 68 O.S. 2021, Section 321, is
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4 amended to read as follows:
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5 Section 321. A. The following sales are hereby exempted from
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6 the stamp excise tax levied pursuant to the provisions of Section
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7 301 et seq. of this title:
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8 1. All cigarettes sold to veterans hospitals and state operated
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9 domiciliary homes for veterans located in the State of Oklahoma this
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10 state, for distribution or sale to disabled ex-servicemen or
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11 disabled ex-servicewomen interned in, or inmates of, such hospitals,
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12 or residents of such homes;
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13 2. All sales to the United States; and
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14 3. All sales to a federally recognized Indian tribe or nation
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15 which has entered into a compact with the State of Oklahoma this
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16 state pursuant to the provisions of subsection C of Section 1 of
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17 this act 346 of this title or to a licensee of such a tribe or
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18 nation, upon which the payment in lieu of taxes required by the
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19 compact has been paid; and
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20 4. All sales to a federally recognized Indian tribe or nation
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21 or to a licensee of such a tribe or nation upon which the tax levied
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22 pursuant to the provisions of Section 4 of this act has been paid.
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23 B. An exemption is hereby provided for the sale of cigarettes
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24 that are intended to be heated rather than burned equal to fifty
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1 percent (50%) of the taxes levied pursuant to the provisions of
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2 Section 301 et seq. of this title.
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3 SECTION 3. AMENDATORY 68 O.S. 2021, Section 322, is
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4 amended to read as follows:
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5 Section 322. The Oklahoma Tax Commission shall prescribe such
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6 rules and make such regulations as to the sale or distribution of
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7 cigarettes, and the exemption from the stamp excise tax thereof, as
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8 shall be deemed necessary to comply with the provisions of the
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9 preceding section Section 301 et seq. of this title. Provided, the
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10 Tax Commission shall administer the provisions of this act so that
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11 stamps shall be available, on or before the effective date of this
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12 act, for affixing to packages of cigarettes that are intended to be
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13 heated rather than burned.
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14 SECTION 4. This act shall become effective November 1, 2025.
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16 60-1-1418 QD 1/19/2025 5:41:15 AM
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Req. No. 1418 Page 8Every fact on this page links to its source, starting with the official bill record.