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 687 By: Hall
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6 AS INTRODUCED
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7 An Act relating to sales tax exemption; amending 68
7 O.S. 2021, Section 1357.21, as last amended by
8 Section 1, Chapter 273, O.S.L. 2024 (68 O.S. Supp.
8 2024, Section 1357.21), which relates to rebate
9 payments for the sales tax exemption on the
9 consumption of qualifying broadband equipment;
10 requiring rebate payments to be made from agency
10 special account; providing for electronic submission
11 of certain report; creating agency special account
11 for the Oklahoma Tax Commission; stating purpose;
12 making appropriation to the Tax Commission; directing
12 transfer of funds; providing an effective date; and
13 declaring an emergency.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. AMENDATORY 68 O.S. 2021, Section 1357.21, as
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17 last amended by Section 1, Chapter 273, O.S.L. 2024 (68 O.S. Supp.
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18 2024, Section 1357.21), is amended to read as follows:
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19 Section 1357.21. A. The exemption authorized by the provisions
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20 of paragraph 43 of Section 1357 of this title shall be administered
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21 as a rebate. Rebate payments shall be made from funds deposited in
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22 the agency special account created in subsection M of this section.
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23 B. No claim for a rebate shall be approved unless the equipment
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24 was purchased in order to establish or expand broadband services in
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1 underserved or unserved areas. As used in this subsection and for
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2 purposes of the exemption authorized by paragraph 43 of Section 1357
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3 of this title, "broadband", "underserved", and "unserved" shall mean
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4 those services and areas as defined in Section 139.102 of Title 17
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5 of the Oklahoma Statutes.
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6 C. No claim for rebate shall be approved unless the claimant
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7 establishes that as a result of the equipment purchase there has
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8 been net growth in the number of potential customers served in
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9 underserved or unserved areas.
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10 D. In order to qualify for rebate payments during the fiscal
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11 year beginning July 1, 2022, equipment or other items qualifying for
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12 the exemption authorized by paragraph 43 of Section 1357 of this
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13 title must be purchased and placed in service between January 1,
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14 2022, and December 31, 2023. Claims for rebates of sales tax or use
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15 tax paid for such equipment purchased in calendar year 2022 shall be
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16 filed with the Oklahoma Tax Commission not later than September 1,
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17 2023, and claims for rebates for sales or use tax paid for such
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18 equipment purchased in subsequent calendar years shall be filed with
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19 the Oklahoma Tax Commission not later than September 1 of the
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20 following year.
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21 E. Qualifying purchases do not include supporting or ancillary
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22 functions, such as office operations, field operations, marketing,
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23 transportation, warehousing, data storage, or similar operations
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24 that do not directly result in the distribution of broadband
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1 Internet service. Property directly used or consumed in or during
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2 the provision, creation, or production of a data processing service
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3 or information service, or property the provider grants, sells, or
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4 leases to the customer for use within the home or establishment
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5 receiving broadband is not eligible for a rebate under this section.
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6 F. The total amount of rebates that may be paid shall not
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7 exceed Forty-two Million Dollars ($42,000,000.00) with Thirty-one
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8 Million Five Hundred Thousand Dollars ($31,500,000.00) of the total
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9 reserved for eligible projects serving counties having a population
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10 density of fewer than one hundred (100) persons per square mile and
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11 Ten Million Five Hundred Thousand Dollars ($10,500,000.00) of the
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12 total reserved for eligible projects serving counties having a
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13 population density of one hundred (100) or more persons per square
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14 mile.
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15 G. The amount of rebate paid to each claimant shall be computed
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16 by dividing the applicable total rebate pool amount by the dollar
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17 amount of claims timely received by the Tax Commission with respect
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18 to each fiscal year, and paying in full the amount of the claims
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19 submitted if the amount of claims are equal to, or less than, the
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20 total rebate pool, or a pro rata share if the total amount of claims
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21 submitted exceed the rebate pool.
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22 H. For the fiscal year beginning July 1, 2023, and all
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23 subsequent fiscal years, the total amount of rebate that may be paid
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24 shall not exceed Forty-two Million Dollars ($42,000,000.00).
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1 I. Claims for rebate shall be on such forms as the Oklahoma Tax
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2 Commission may prescribe for such purpose and shall contain any
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3 required information or supporting documentation the Commission
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4 requires to verify eligibility for the rebate payment.
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5 J. The Oklahoma Department of Commerce shall use information
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6 provided by the Oklahoma Tax Commission and the Oklahoma Broadband
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7 Office to prepare a report to identify the qualifying rural
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8 broadband projects completed with the equipment purchased together
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9 with the location of the equipment and the geographic areas served
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10 as a result of the equipment purchases, including the total number
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11 of potential new customers receiving qualifying broadband services
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12 resulting from the project. The report shall not identify any
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13 entity by name that purchased equipment.
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14 K. The report shall be filed not later than April 1, 2025, with
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15 respect to rebates paid for equipment purchases made during calendar
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16 years 2022 and 2023 and April 1 of the second succeeding year for
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17 equipment purchases made in subsequent calendar years. The Oklahoma
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18 Tax Commission shall make information available as required by
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19 subsection J of this section as claims are completed to assist with
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20 the timely preparation of the report.
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21 L. The report shall be electronically filed with the Governor,
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22 the Speaker of the House of Representatives and the President Pro
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23 Tempore of the Senate and posted on the Oklahoma Broadband Office
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24 website.
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1 M. There is hereby created in the State Treasury an agency
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2 special account for the Oklahoma Tax Commission for the payment of
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3 rebates as provided by this section.
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4 SECTION 2. There is hereby appropriated to the Oklahoma Tax
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5 Commission from any monies not otherwise appropriated from the
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6 General Revenue Fund of the State Treasury for the fiscal year
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7 ending June 30, 2023, the sum of Forty-two Million Dollars
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8 ($42,000,000.00) to be transferred to the agency special account
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9 created pursuant to subsection M of Section 1357.21 of Title 68 of
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10 the Oklahoma Statutes for the purpose of making rebate payments
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11 pursuant to Section 1357.21 of Title 68 of the Oklahoma Statutes.
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12 SECTION 3. This act shall become effective July 1, 2025.
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13 SECTION 4. It being immediately necessary for the preservation
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14 of the public peace, health or safety, an emergency is hereby
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15 declared to exist, by reason whereof this act shall take effect and
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16 be in full force from and after its passage and approval.
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18 60-1-938 QD 1/19/2025 5:41:23 AM
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Req. No. 938 Page 5Every fact on this page links to its source, starting with the official bill record.