Okla. Stat. tit. 68, § 68-1357v4 — OK Code / Title 68 / Section 68-1357v4
Exemptions – General
Status: in_force

Exemptions – General.

There are hereby specifically exempted from the tax levied by

the Oklahoma Sales Tax Code:

1. Transportation of school pupils to and from elementary

schools or high schools in motor or other vehicles;

2. Transportation of persons where the fare of each person does

not exceed One Dollar ($1.00), or local transportation of persons

within the corporate limits of a municipality except by taxicabs;

3. Sales for resale to persons engaged in the business of

reselling the articles purchased, whether within or without the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 560

state, provided that such sales to residents of this state are made

to persons to whom sales tax permits have been issued as provided in

the Oklahoma Sales Tax Code. This exemption shall not apply to the

sales of articles made to persons holding permits when such persons

purchase items for their use and which they are not regularly

engaged in the business of reselling; neither shall this exemption

apply to sales of tangible personal property to peddlers, solicitors

and other salespersons who do not have an established place of

business and a sales tax permit. The exemption provided by this

paragraph shall apply to sales of motor fuel or diesel fuel to a

Group Five vendor, but the use of such motor fuel or diesel fuel by

the Group Five vendor shall not be exempt from the tax levied by the

Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel

is exempt from sales tax when the motor fuel is for shipment outside

this state and consumed by a common carrier by rail in the conduct

of its business. The sales tax shall apply to the purchase of motor

fuel or diesel fuel in Oklahoma by a common carrier by rail when

such motor fuel is purchased for fueling, within this state, of any

locomotive or other motorized flanged wheel equipment;

4. Sales of advertising space in newspapers and periodicals;

5. Sales of programs relating to sporting and entertainment

events, and sales of advertising on billboards (including signage,

posters, panels, marquees, or on other similar surfaces, whether

indoors or outdoors) or in programs relating to sporting and

entertainment events, and sales of any advertising, to be displayed

at or in connection with a sporting event, via the Internet,

electronic display devices, or through public address or broadcast

systems. The exemption authorized by this paragraph shall be

effective for all sales made on or after January 1, 2001;

6. Sales of any advertising, other than the advertising

described by paragraph 5 of this section, via the Internet,

electronic display devices, or through the electronic media,

including radio, public address or broadcast systems, television

(whether through closed circuit broadcasting systems or otherwise),

and cable and satellite television, and the servicing of any

advertising devices;

7. Eggs, feed, supplies, machinery and equipment purchased by

persons regularly engaged in the business of raising worms, fish,

any insect or any other form of terrestrial or aquatic animal life

and used for the purpose of raising same for marketing. This

exemption shall only be granted and extended to the purchaser when

the items are to be used and in fact are used in the raising of

animal life as set out above. Each purchaser shall certify, in

writing, on the invoice or sales ticket retained by the vendor that

the purchaser is regularly engaged in the business of raising such

animal life and that the items purchased will be used only in such

business. The vendor shall certify to the Oklahoma Tax Commission

Oklahoma Statutes - Title 68. Revenue and Taxation Page 561

that the price of the items has been reduced to grant the full

benefit of the exemption. Violation hereof by the purchaser or

vendor shall be a misdemeanor;

8. Sale of natural or artificial gas and electricity, and

associated delivery or transmission services, when sold exclusively

for residential use. Provided, this exemption shall not apply to

any sales tax levied by a city or town, or a county, or any other

jurisdiction in this state;

9. In addition to the exemptions authorized by Section 1357.6

of this title, sales of drugs sold pursuant to a prescription

written for the treatment of human beings by a person licensed to

prescribe the drugs, and sales of insulin and medical oxygen.

Provided, this exemption shall not apply to over-the-counter drugs;

10. Transfers of title or possession of empty, partially

filled, or filled returnable oil and chemical drums to any person

who is not regularly engaged in the business of selling, reselling

or otherwise transferring empty, partially filled, or filled

returnable oil drums;

11. Sales of one-way utensils, paper napkins, paper cups,

disposable hot containers and other one-way carry out materials to a

vendor of meals or beverages;

12. Sales of food or food products for home consumption which

are purchased in whole or in part with coupons issued pursuant to

the federal food stamp program as authorized by Sections 2011

through 2029 of Title 7 of the United States Code, as to that

portion purchased with such coupons. The exemption provided for

such sales shall be inapplicable to such sales upon the effective

date of any federal law that removes the requirement of the

exemption as a condition for participation by the state in the

federal food stamp program;

13. Sales of food or food products, or any equipment or

supplies used in the preparation of the food or food products to or

by an organization which:

a. is exempt from taxation pursuant to the provisions of

Section 501(c)(3) of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3), and which provides and

delivers prepared meals for home consumption to

elderly or homebound persons as part of a program

commonly known as “Meals on Wheels” or “Mobile Meals”,

or

b. is exempt from taxation pursuant to the provisions of

Section 501(c)(3) of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3), and which receives federal

funding pursuant to the Older Americans Act of 1965,

as amended, for the purpose of providing nutrition

programs for the care and benefit of elderly persons;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 562

14. a. Sales of tangible personal property or services to or

by organizations which are exempt from taxation

pursuant to the provisions of Section 501(c)(3) of the

Internal Revenue Code, 26 U.S.C., Section 501(c)(3),

and:

(1) are primarily involved in the collection and

distribution of food and other household products

to other organizations that facilitate the

distribution of such products to the needy and

such distributee organizations are exempt from

taxation pursuant to the provisions of Section

501(c)(3) of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3), or

(2) facilitate the distribution of such products to

the needy.

b. Sales made in the course of business for profit or

savings, competing with other persons engaged in the

same or similar business shall not be exempt under

this paragraph;

15. Sales of tangible personal property or services to

children’s homes which are located on church-owned property and are

operated by organizations exempt from taxation pursuant to the

provisions of the Internal Revenue Code, 26 U.S.C., Section

501(c)(3);

16. Sales of computers, data processing equipment, related

peripherals and telephone, telegraph or telecommunications service

and equipment for use in a qualified aircraft maintenance or

manufacturing facility. For purposes of this paragraph, “qualified

aircraft maintenance or manufacturing facility” means a new or

expanding facility primarily engaged in aircraft repair, building or

rebuilding whether or not on a factory basis, whose total cost of

construction exceeds the sum of Five Million Dollars ($5,000,000.00)

and which employs at least two hundred fifty (250) new full-time-

equivalent employees, as certified by the Oklahoma Employment

Security Commission, upon completion of the facility. In order to

qualify for the exemption provided for by this paragraph, the cost

of the items purchased by the qualified aircraft maintenance or

manufacturing facility shall equal or exceed the sum of Two Million

Dollars ($2,000,000.00);

17. Sales of tangible personal property consumed or

incorporated in the construction or expansion of a qualified

aircraft maintenance or manufacturing facility as defined in

paragraph 16 of this section. For purposes of this paragraph, sales

made to a contractor or subcontractor that has previously entered

into a contractual relationship with a qualified aircraft

maintenance or manufacturing facility for construction or expansion

Oklahoma Statutes - Title 68. Revenue and Taxation Page 563

of such a facility shall be considered sales made to a qualified

aircraft maintenance or manufacturing facility;

18. Sales of the following telecommunications services:

a. Interstate and International “800 service”. “800

service” means a “telecommunications service” that

allows a caller to dial a toll-free number without

incurring a charge for the call. The service is

typically marketed under the name “800”, “855”, “866”,

“877”, and “888” toll-free calling, and any subsequent

numbers designated by the Federal Communications

Commission, or

b. Interstate and International “900 service”. “900

service” means an inbound toll “telecommunications

service” purchased by a subscriber that allows the

subscriber’s customers to call in to the subscriber’s

prerecorded announcement or live service. “900

service” does not include the charge for: collection

services provided by the seller of the

“telecommunications services” to the subscriber, or

service or product sold by the subscriber to the

subscriber’s customer. The service is typically

marketed under the name “900” service, and any

subsequent numbers designated by the Federal

Communications Commission,

c. Interstate and International “private communications

service”. “Private communications service” means a

“telecommunications service” that entitles the

customer to exclusive or priority use of a

communications channel or group of channels between or

among termination points, regardless of the manner in

which such channel or channels are connected, and

includes switching capacity, extension lines,

stations, and any other associated services that are

provided in connection with the use of such channel or

channels,

d. “Value-added nonvoice data service”. “Value-added

nonvoice data service” means a service that otherwise

meets the definition of “telecommunications services”

in which computer processing applications are used to

act on the form, content, code, or protocol of the

information or data primarily for a purpose other than

transmission, conveyance or routing,

e. Interstate and International telecommunications

service which is:

(1) rendered by a company for private use within its

organization, or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 564

(2) used, allocated, or distributed by a company to

its affiliated group,

f. Regulatory assessments and charges, including charges

to fund the Oklahoma Universal Service Fund, the

Oklahoma Lifeline Fund and the Oklahoma High Cost

Fund, and

g. Telecommunications nonrecurring charges, including but

not limited to the installation, connection, change or

initiation of telecommunications services which are

not associated with a retail consumer sale;

19. Sales of railroad track spikes manufactured and sold for

use in this state in the construction or repair of railroad tracks,

switches, sidings and turnouts;

20. Sales of aircraft and aircraft parts provided such sales

occur at a qualified aircraft maintenance facility. As used in this

paragraph, “qualified aircraft maintenance facility” means a

facility operated by an air common carrier, including one or more

component overhaul support buildings or structures in an area owned,

leased or controlled by the air common carrier, at which there were

employed at least two thousand (2,000) full-time-equivalent

employees in the preceding year as certified by the Oklahoma

Employment Security Commission and which is primarily related to the

fabrication, repair, alteration, modification, refurbishing,

maintenance, building or rebuilding of commercial aircraft or

aircraft parts used in air common carriage. For purposes of this

paragraph, “air common carrier” shall also include members of an

affiliated group as defined by Section 1504 of the Internal Revenue

Code, 26 U.S.C., Section 1504. Beginning July 1, 2012, sales of

machinery, tools, supplies, equipment and related tangible personal

property and services used or consumed in the repair, remodeling or

maintenance of aircraft, aircraft engines, or aircraft component

parts which occur at a qualified aircraft maintenance facility;

21. Sales of machinery and equipment purchased and used by

persons and establishments primarily engaged in computer services

and data processing:

a. as defined under Industrial Group Numbers 7372 and

7373 of the Standard Industrial Classification (SIC)

Manual, latest version, which derive at least fifty

percent (50%) of their annual gross revenues from the

sale of a product or service to an out-of-state buyer

or consumer, and

b. as defined under Industrial Group Number 7374 of the

SIC Manual, latest version, which derive at least

eighty percent (80%) of their annual gross revenues

from the sale of a product or service to an out-of-

state buyer or consumer.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 565

Eligibility for the exemption set out in this paragraph shall be

established, subject to review by the Tax Commission, by annually

filing an affidavit with the Tax Commission stating that the

facility so qualifies and such information as required by the Tax

Commission. For purposes of determining whether annual gross

revenues are derived from sales to out-of-state buyers or consumers,

all sales to the federal government shall be considered to be to an

out-of-state buyer or consumer;

22. Sales of prosthetic devices to an individual for use by

such individual. For purposes of this paragraph, “prosthetic

device” shall have the same meaning as provided in Section 1357.6 of

this title, but shall not include corrective eye glasses, contact

lenses or hearing aids;

23. Sales of tangible personal property or services to a motion

picture or television production company to be used or consumed in

connection with an eligible production. For purposes of this

paragraph, “eligible production” means a documentary, special, music

video, or a television commercial or television program that will

serve as a pilot for or be a segment of an ongoing dramatic or

situation comedy series filmed or taped for network or national or

regional syndication or a feature-length motion picture intended for

theatrical release or for network or national or regional

syndication or broadcast. The provisions of this paragraph shall

apply to sales occurring on or after July 1, 1996. In order to

qualify for the exemption, the motion picture or television

production company shall file any documentation and information

required to be submitted pursuant to rules promulgated by the Tax

Commission;

24. Sales of diesel fuel sold for consumption by commercial

vessels, barges and other commercial watercraft;

25. Sales of tangible personal property or services to tax-

exempt independent nonprofit biomedical research foundations that

provide educational programs for Oklahoma science students and

teachers and to tax-exempt independent nonprofit community blood

banks headquartered in this state;

26. Effective May 6, 1992, sales of wireless telecommunications

equipment to a vendor who subsequently transfers the equipment at no

charge or for a discounted charge to a consumer as part of a

promotional package or as an inducement to commence or continue a

contract for wireless telecommunications services;

27. Effective January 1, 1991, leases of rail transportation

cars to haul coal to coal-fired plants located in this state which

generate electric power;

28. Beginning July 1, 2005, sales of aircraft engine repairs,

modification, and replacement parts, sales of aircraft frame repairs

and modification, aircraft interior modification, and paint, and

sales of services employed in the repair, modification and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 566

replacement of parts of aircraft engines, aircraft frame and

interior repair and modification, and paint;

29. Sales of materials and supplies to the owner or operator of

a ship, motor vessel or barge that is used in interstate or

international commerce if the materials and supplies:

a. are loaded on the ship, motor vessel or barge and used

in the maintenance and operation of the ship, motor

vessel or barge, or

b. enter into and become component parts of the ship,

motor vessel or barge;

30. Sales of tangible personal property made at estate sales at

which such property is offered for sale on the premises of the

former residence of the decedent by a person who is not required to

be licensed pursuant to the Transient Merchant Licensing Act, or who

is not otherwise required to obtain a sales tax permit for the sale

of such property pursuant to the provisions of Section 1364 of this

title; provided:

a. such sale or event may not be held for a period

exceeding three (3) consecutive days,

b. the sale must be conducted within six (6) months of

the date of death of the decedent, and

c. the exemption allowed by this paragraph shall not be

allowed for property that was not part of the

decedent’s estate;

31. Beginning January 1, 2004, sales of electricity and

associated delivery and transmission services, when sold exclusively

for use by an oil and gas operator for reservoir dewatering projects

and associated operations commencing on or after July 1, 2003, in

which the initial water-to-oil ratio is greater than or equal to

five-to-one water-to-oil, and such oil and gas development projects

have been classified by the Corporation Commission as a reservoir

dewatering unit;

32. Sales of prewritten computer software that is delivered

electronically. For purposes of this paragraph, “delivered

electronically” means delivered to the purchaser by means other than

tangible storage media;

33. Sales of modular dwelling units when built at a production

facility and moved in whole or in parts, to be assembled on-site,

and permanently affixed to the real property and used for

residential or commercial purposes. The exemption provided by this

paragraph shall equal forty-five percent (45%) of the total sales

price of the modular dwelling unit. For purposes of this paragraph,

“modular dwelling unit” means a structure that is not subject to the

motor vehicle excise tax imposed pursuant to Section 2103 of this

title;

34. Sales of tangible personal property or services to persons

who are residents of Oklahoma and have been honorably discharged

Oklahoma Statutes - Title 68. Revenue and Taxation Page 567

from active service in any branch of the Armed Forces of the United

States or Oklahoma National Guard and who have been certified by the

United States Department of Veterans Affairs or its successor to be

in receipt of disability compensation at the one-hundred-percent

rate and the disability shall be permanent and have been sustained

through military action or accident or resulting from disease

contracted while in such active service or the surviving spouse of

such person if the person is deceased and the spouse has not

remarried; provided, sales for the benefit of the person to a spouse

of the eligible person or to a member of the household in which the

eligible person resides and who is authorized to make purchases on

the person’s behalf, when such eligible person is not present at the

sale, shall also be exempt for purposes of this paragraph. The

Oklahoma Tax Commission shall issue a separate exemption card to a

spouse of an eligible person or to a member of the household in

which the eligible person resides who is authorized to make

purchases on the person’s behalf, if requested by the eligible

person. Sales qualifying for the exemption authorized by this

paragraph shall not exceed Twenty-five Thousand Dollars ($25,000.00)

per year per individual while the disabled veteran is living. Sales

qualifying for the exemption authorized by this paragraph shall not

exceed One Thousand Dollars ($1,000.00) per year for an unremarried

surviving spouse. Upon request of the Tax Commission, a person

asserting or claiming the exemption authorized by this paragraph

shall provide a statement, executed under oath, that the total sales

amounts for which the exemption is applicable have not exceeded

Twenty-five Thousand Dollars ($25,000.00) per year per living

disabled veteran or One Thousand Dollars ($1,000.00) per year for an

unremarried surviving spouse. If the amount of such exempt sales

exceeds such amount, the sales tax in excess of the authorized

amount shall be treated as a direct sales tax liability and may be

recovered by the Tax Commission in the same manner provided by law

for other taxes, including penalty and interest;

35. Sales of electricity to the operator, specifically

designated by the Corporation Commission, of a spacing unit or lease

from which oil is produced or attempted to be produced using

enhanced recovery methods, including, but not limited to, increased

pressure in a producing formation through the use of water or

saltwater if the electrical usage is associated with and necessary

for the operation of equipment required to inject or circulate

fluids in a producing formation for the purpose of forcing oil or

petroleum into a wellbore for eventual recovery and production from

the wellhead. In order to be eligible for the sales tax exemption

authorized by this paragraph, the total content of oil recovered

after the use of enhanced recovery methods shall not exceed one

percent (1%) by volume. The exemption authorized by this paragraph

Oklahoma Statutes - Title 68. Revenue and Taxation Page 568

shall be applicable only to the state sales tax rate and shall not

be applicable to any county or municipal sales tax rate;

36. Sales of intrastate charter and tour bus transportation.

As used in this paragraph, “intrastate charter and tour bus

transportation” means the transportation of persons from one

location in this state to another location in this state in a motor

vehicle which has been constructed in such a manner that it may

lawfully carry more than eighteen persons, and which is ordinarily

used or rented to carry persons for compensation. Provided, this

exemption shall not apply to regularly scheduled bus transportation

for the general public;

37. Sales of vitamins, minerals and dietary supplements by a

licensed chiropractor to a person who is the patient of such

chiropractor at the physical location where the chiropractor

provides chiropractic care or services to such patient. The

provisions of this paragraph shall not be applicable to any drug,

medicine or substance for which a prescription by a licensed

physician is required;

38. Sales of goods, wares, merchandise, tangible personal

property, machinery and equipment to a web search portal located in

this state which derives at least eighty percent (80%) of its annual

gross revenue from the sale of a product or service to an out-of-

state buyer or consumer. For purposes of this paragraph, “web

search portal” means an establishment classified under NAICS code

519130 which operates websites that use a search engine to generate

and maintain extensive databases of Internet addresses and content

in an easily searchable format;

39. Sales of tangible personal property consumed or

incorporated in the construction or expansion of a facility for a

corporation organized under Section 437 et seq. of Title 18 of the

Oklahoma Statutes as a rural electric cooperative. For purposes of

this paragraph, sales made to a contractor or subcontractor that has

previously entered into a contractual relationship with a rural

electric cooperative for construction or expansion of a facility

shall be considered sales made to a rural electric cooperative;

40. Sales of tangible personal property or services to a

business primarily engaged in the repair of consumer electronic

goods, including, but not limited to, cell phones, compact disc

players, personal computers, MP3 players, digital devices for the

storage and retrieval of information through hard-wired or wireless

computer or Internet connections, if the devices are sold to the

business by the original manufacturer of such devices and the

devices are repaired, refitted or refurbished for sale by the entity

qualifying for the exemption authorized by this paragraph directly

to retail consumers or if the devices are sold to another business

entity for sale to retail consumers;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 569

41. On or after July 1, 2019, and prior to July 1, 2024, sales

or leases of rolling stock when sold or leased by the manufacturer,

regardless of whether the purchaser is a public services corporation

engaged in business as a common carrier of property or passengers by

railway, for use or consumption by a common carrier directly in the

rendition of public service. For purposes of this paragraph,

“rolling stock” means locomotives, autocars and railroad cars and

“sales or leases” includes railroad car maintenance and retrofitting

of railroad cars for their further use only on the railways;

42. Sales of gold, silver, platinum, palladium or other bullion

items such as coins and bars and legal tender of any nation, which

legal tender is sold according to its value as precious metal or as

an investment. As used in the paragraph, “bullion” means any

precious metal, including, but not limited to, gold, silver,

platinum and palladium, that is in such a state or condition that

its value depends upon its precious metal content and not its form.

The exemption authorized by this paragraph shall not apply to

fabricated metals that have been processed or manufactured for

artistic use or as jewelry; and

43. Subject to the other requirements of this paragraph and the

requirements of Section 1357.21 of this title, sale, lease, rental,

storage, use or other consumption of qualifying broadband equipment

by providers of Internet service or subsidiaries if the property is

directly used or consumed by the provider or subsidiary in or during

the distribution of broadband Internet service. The Legislature

finds that pursuant to the provisions of subsection H of Section

1357.21 of this title, the provisions of this paragraph were

originally made contingent upon the enactment of an incentive award

formula. Notwithstanding the failure to fulfill the condition as

prescribed by subsection H of Section 1357.21 of this title, as

originally enacted, the provisions of this paragraph shall be

operative on and after the effective date of this act.
Okla. Stat. tit. 68, § 68-2819 — OK Code / Title 68 / Section 68-2819
Determination of taxable value
Status: in_force

Taxable values of real and personal property shall be

established in accordance with the requirements of Sections 8, 8B

and 8C of Article X of the Oklahoma Constitution. The county

assessor shall determine the taxable value of all taxable property

that the assessor is required by law to assess and value and shall

determine such taxable value in accordance with the requirements of

Sections 8, 8B and 8C of Article X of the Oklahoma Constitution.
Okla. Stat. tit. 68, § 68-500.19 — OK Code / Title 68 / Section 68-500.19
Election regarding fuel removals from out-of-state
Status: in_force

terminals.

A. Any licensed supplier or licensed permissive supplier may

make a blanket election with the Commission to treat all removals

from all of its out-of-state terminals with a destination in this

state as shown on the terminal-issued shipping paper as if the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 282

removals were removed across the rack by the supplier from a

terminal in this state for all purposes.

B. The election provided by this section shall be made by

filing a "notice of election" with the Commission.

C. The Commission shall release a list of electing suppliers

under this section upon request by any person.

D. The absence of an election by a supplier under this section

shall in no way relieve the supplier of responsibility for remitting

the tax imposed by this act upon the removal from an out-of-state

terminal for import into this state by the supplier.

E. Any supplier which makes the election provided by this

section shall precollect the tax imposed by this act on all removals

from a qualified terminal on its account as a position holder, or as

a person receiving fuel from a position holder pursuant to a two-

party exchange agreement without regard to the license status of the

person acquiring the fuel from the supplier, except deliveries from

out-of-state terminals to licensed bonded importers, the point or

terms of sale, or the character of delivery.

F. Each supplier who elects to precollect tax under this act

agrees to waive any defense that the state lacks jurisdiction to

require collection on all out-of-state sales by such person as to

which the person had knowledge that the shipments were destined for

this state and that this state imposes the requirement pursuant to

this subsection under its general police powers to regulate the

movement of motor fuels.

G. Each supplier who elects to precollect tax pursuant to this

act shall not be subject to any civil penalties or interest imposed

pursuant to this act for any corrections resulting from a diversion

of the motor fuel from the original destination as represented by

the purchaser or the agent of the purchaser. However, the supplier

and exporter under this subsection may, by mutual agreement, permit

the supplier to assume the liability of the exporter and adjust the

taxes of the exporter payable to the supplier.
Okla. Stat. tit. 68, § 68-2397 — OK Code / Title 68 / Section 68-2397
Inducement claim forms - Sales tax credits
Status: in_force

A. Upon receiving notification from the Executive Director of

the Oklahoma Department of Commerce that an approved company has

entered into a tourism project agreement and is entitled to the

inducements provided by the Oklahoma Tourism Development Act, the

Oklahoma Tax Commission shall provide the approved company with

forms and instructions as necessary to claim or receive or pass-

through those inducements.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1102

B. An approved company whose agreement provides that it shall

expend approved costs of more than Five Hundred Thousand Dollars

($500,000.00) for a tourism attraction project but less than One

Million Dollars ($1,000,000.00) shall be entitled to a sales tax

credit if the company certifies to the Tax Commission that it has

expended at least the minimum amount in approved costs, and the

Executive Director certifies that the approved company is in

compliance with the Oklahoma Tourism Development Act. The Tax

Commission shall then issue a tax credit memorandum to the approved

company granting a sales tax credit in the amount of up to ten

percent (10%) of the approved costs, but limited to the percent of

the approved costs that will result in the project being revenue-

neutral to this state as determined by the Oklahoma Department of

Commerce. Subsequent requests for credit for additional certified

approved costs in excess of the minimum amount for each project as

listed in this subsection but less than One Million Dollars

($1,000,000.00) shall result in a sales tax credit in the amount of

up to ten percent (10%) of the approved costs, but limited to the

percent of the approved costs that will result in the project being

revenue-neutral to this state as determined by the Oklahoma

Department of Commerce. Sales tax credits allowed pursuant to the

provisions of the Oklahoma Tourism Development Act shall not be

transferable or assignable; provided that, with respect to a tourism

attraction project that is an Entertainment District, the approved

company can elect to pass-through all or a portion of the sales tax

credit to one or more Entertainment District Tenant Parties. The

approved company and the Entertainment District Tenant Party shall

jointly file a copy of the written credit pass-through agreement

with the Oklahoma Tax Commission within thirty (30) days of the

effective date of the agreement. Such filing of the agreement with

the Oklahoma Tax Commission shall perfect such agreement. The

written agreement shall contain the name, address and taxpayer

identification number of the parties to the agreement, the amount of

credit being passed-through, the month and year the credit was

originally allowed to the approved company, the month and tax year

or years for which the credit may be claimed, and a representation

by the approved company that the approved company has neither

claimed for its own behalf nor conveyed such credits to any other

Entertainment District Tenant Party. The Tax Commission shall

develop a standard form for use by an approved company and an

Entertainment District Tenant Party demonstrating eligibility for

the Entertainment District Tenant Party to utilize the sales tax

credit. The Tax Commission shall develop a system to record and

track the pass-through of the sales tax credit and certify the

ownership of the sales tax credit and may promulgate rules to permit

verification of the validity and timeliness of a sales tax credit

claimed upon a sales tax return pursuant to this subsection but

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1103

shall not promulgate any rules which unduly restrict or hinder the

pass-through of such sales tax credit to an Entertainment District

Tenant Party.

An approved company whose agreement provides that it shall

expend approved costs in excess of One Million Dollars

($1,000,000.00) shall be entitled to a sales tax credit if the

company certifies to the Tax Commission that it has expended at

least One Million Dollars ($1,000,000.00) in approved costs and the

Executive Director certifies that the approved company is in

compliance with the Oklahoma Tourism Development Act. The Tax

Commission shall then issue a tax credit memorandum to the approved

company granting a sales tax credit in the amount of up to twenty-

five percent (25%) of the approved costs, but limited to the percent

of the approved costs that will result in the project being revenue-

neutral to this state as determined by the Oklahoma Department of

Commerce. The credit on all subsequent additional certified

approved costs shall be in the amount of up to twenty-five percent

(25%) of the costs, but limited to the percent of the approved costs

that will result in the project being revenue-neutral to this state

as determined by the Oklahoma Department of Commerce. For a tourism

attraction project that is an Entertainment District, an approved

company may elect to receive an incentive payment based on sales tax

collections of Entertainment District Tenant Parties rather than a

sales tax credit. The incentive payment shall be in the amount of

up to twenty-five percent (25%) of the approved costs but limited to

the percent of the approved costs that will result in the project

being revenue-neutral to this state as determined by the Oklahoma

Department of Commerce; provided that, (A) in no event shall the

incentive payments exceed the increased state sales tax liability of

the approved company and the Entertainment District Tenant Parties

that is actually received by the Tax Commission, and (B) the

approved company shall be entitled to receive only ten percent (10%)

of the incentive payment amount during each calendar year. The Tax

Commission shall issue an incentive payment memorandum to the

approved company granting a right to receive an incentive payment

from the Tax Commission in the amount of up to twenty-five percent

(25%) of the approved costs but limited to the percent of the

approved costs that will result in the project being revenue-neutral

to this state as determined by the Oklahoma Department of Commerce.

As soon as practicable after the end of each calendar year during

the term of the agreement, the approved company shall file a claim

for the incentive payment with the Tax Commission, and the Tax

Commission shall be responsible for ensuring that the amount of the

incentive payment claimed does not exceed the increased state sales

tax liability of the approved company and the Entertainment District

Tenant Parties that has been actually received by the Tax

Commission, which may include accessing the Oklahoma sales tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1104

returns of the Entertainment District Tenant Parties as permitted by

this section.

The cumulative inducements provided pursuant to the Oklahoma

Tourism Development Act shall not exceed Thirty Million Dollars

($30,000,000.00) per year.

The Tax Commission shall require proof of expenditures prior to

issuing a tax credit memorandum or incentive payment memorandum to

the approved company which may be satisfied by a report from an

independent certified public accountant. Additional credit

memoranda or incentive memoranda may be issued as the approved

company certifies additional expenditures of approved costs.

No tax credit memorandum or incentive payment memorandum shall

be issued for any approved costs expended after the expiration of

three (3) years from the date the agreement was signed by the

Executive Director and the approved company. However, the Executive

Director, with the advice and consent of the Tax Commission, may

authorize inducements for approved costs expended up to five (5)

years from the date the agreement was signed if the Executive

Director determines that the failure to complete the tourism

attraction project within three (3) years resulted from:

1. Unanticipated and unavoidable delay in the construction of

the tourism attraction;

2. An original completion date for the tourism attraction, as

originally planned, which will be more than three (3) years from the

date construction began; or

3. A change in business ownership or business structure

resulting from a merger or acquisition.

C. A sales tax credit allowed pursuant to the provisions of

this section may be used to offset a portion of the reported state

sales tax liability of the approved company or an Entertainment

District Tenant Party, if applicable, for all sales tax reporting

periods following the issuance of the credit memorandum subject to

the following limitations:

1. Only increased state sales tax liability may be offset by

the issued credit;

2. An approved company whose agreement provides that it shall

expend approved costs in excess of One Million Dollars

($1,000,000.00) or an Entertainment District Party, if applicable,

shall be entitled to use only ten percent (10%) of the amount of

each issued credit to offset increased state sales tax liability

during each calendar year, plus the amount of any unused credit

carried forward from a prior calendar year, and an approved company

whose agreement provides that it shall expend approved costs of more

than the minimum amount for each project as listed in this

subsection but less than One Million Dollars ($1,000,000.00) shall

be entitled to use only twenty percent (20%) of the amount of each

issued credit to offset increased state sales tax liability during

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1105

each calendar year, plus the amount of any unused credit carried

forward from a prior calendar year; and

3. All issued credit memoranda or incentive payment memoranda

shall expire at the end of the month following the expiration of the

agreement as provided in Section 2396 of this title.

The approved company or an Entertainment District Tenant Party,

if applicable, shall have no obligation to refund or otherwise

return any amount of this inducement to the person from whom the

sales tax was collected.

D. The Tax Commission shall promulgate rules as are necessary

for the proper administration of the Oklahoma Tourism Development

Act. The Tax Commission may also develop forms and instructions as

necessary for an approved company or Entertainment District Tenant

Party, if applicable, to claim or receive or pass-through the

inducements provided by the Oklahoma Tourism Development Act.

E. The Tax Commission shall have the authority to obtain any

information necessary from or regarding the approved company or an

Entertainment District Tenant Party, if applicable, and the

Executive Director to verify that approved companies or an

Entertainment District Tenant Party, if applicable, have received

the proper amounts of inducements as authorized by the Oklahoma

Tourism Development Act. The Oklahoma Tax Commission shall demand

the repayment of any inducements taken or received in excess of the

inducements allowed by the Oklahoma Tourism Development Act.

F. No sales tax credit or incentive payment right authorized by

this section shall be granted on or after January 1, 2032.

Notwithstanding the foregoing, an approved company that has entered

into a tourism attraction project agreement with the Oklahoma

Department of Commerce pursuant to Section 2396 of this title prior

to January 1, 2032, shall continue to be entitled to claim or

receive any inducements authorized by this section as contemplated

by the tourism project agreement.

G. All currently approved tourism project agreements executed

by the Oklahoma Tourism and Recreation Department are hereby

transferred to the Oklahoma Department of Commerce upon November 1,

2021.

H. On November 1, 2021, all administrative rules promulgated by

the Oklahoma Tourism and Recreation Department regarding the

Oklahoma Tourism Development Act shall be transferred to and become

a part of the administrative rules of the Oklahoma Department of

Commerce. The Office of Administrative Rules in the Office of the

Secretary of State shall provide adequate notice in the Oklahoma

Register of the transferred rules and shall place the transferred

rules under the Administrative Code section of the Oklahoma

Department of Commerce. On November 1, 2021, any amendment, repeal,

or addition to the transferred rules shall be under the jurisdiction

of the Oklahoma Department of Commerce, who shall have the authority

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1106

to enact rules in order to carry out the provisions of the Oklahoma

Tourism Development Act.
Okla. Stat. tit. 68, § 68-3913 — OK Code / Title 68 / Section 68-3913
Definitions
Status: in_force

As used in the 21st Century Quality Jobs Incentive Act:

1. "Basic industry" means:

a. a basic industry as defined under the Oklahoma Quality

Jobs Program Act in divisions (1) through (9) of

subparagraph a of paragraph 1 of subsection A of

Section 3603 of Title 68 of the Oklahoma Statutes,

excluding those activities described in division (10)

of subparagraph a of paragraph 1 of subsection A of

Section 3603 of Title 68 of the Oklahoma Statutes.

For the purposes of this act, if a determination is

required by subdivision (b) of division (7) or by

division (9) of subparagraph a of paragraph 1 of

subsection A of Section 3603 of Title 68 of the

Oklahoma Statutes, such determination shall be:

(1) made by the Oklahoma Department of Commerce and

not by the Incentive Approval Committee, and

(2) based on a requirement that those industries that

are required to have at least seventy-five

percent (75%) of total sales to out-of-state

customers or buyers for purposes of the Quality

Jobs Program Act shall only be required to have

fifty percent (50%) of total sales, as determined

by the Department of Commerce, to out-of-state

customers or buyers, to in-state customers or

buyers if the product or service is resold by the

purchaser to an out-of-state customer or buyer

for ultimate use, or to the federal government,

for the purposes of this act,

b. (1) those specialty hospitals (except psychiatric and

substance abuse hospitals) defined or classified

in the NAICS Manual under U.S. Industry Group No.

62231, and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1455

(2) those performing arts companies defined or

classified in the NAICS Manual under U.S.

Industry Group No.7111, and

c. an establishment classified in this subparagraph which

has or will have within one (1) year sales of at least

fifty percent (50%) of its total sales, as determined

by the Department of Commerce, to out-of-state

customers or buyers, to in-state customers or buyers

if the product or service is resold by the purchaser

to an out-of-state customer or buyer for ultimate use,

or to the federal government:

(1) those electric utility activities defined or

classified in the NAICS Manual under U.S.

Industry Group No. 2211 which meet the

requirements of subdivisions a, b and d of

division 2 of subparagraph a of paragraph 1 of

Section 3603 of Title 68 of the Oklahoma

Statutes,

(2) those heavy and civil engineering construction

activities defined or classified in the NAICS

Manual under U.S. Industry Group No. 237,

(3) those motion picture and video industries defined

or classified in the NAICS Manual under U.S.

Industry Group No. 5121,

(4) those sound recording industries defined or

classified in the NAICS Manual under U.S.

Industry Group No. 5122,

(5) those securities, commodity contracts and other

financial investment activities defined or

classified in the NAICS Manual under U.S.

Industry Group No. 523,

(6) those insurance carriers and related activities

defined or classified in the NAICS Manual under

U.S. Industry Group No. 524,

(7) those funds, trusts and other financial vehicles

defined or classified in the NAICS Manual under

U.S. Industry Group No. 525,

(8) those professional, scientific and technical

services defined or classified in the NAICS

Manual under U.S. Industry Group Nos. 5411, 5412,

5413, 5414, 5418 and 5419, and

(9) those electronic and precision equipment repair

and maintenance activities defined or classified

in the NAICS Manual under U.S. Industry Group No.

8112;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1456

2. "Establishment" means any business, no matter what legal

form, including, but not limited to, a sole proprietorship,

partnership, corporation, or limited liability corporation;

3. "Estimated direct state benefits" means the tax revenues

projected by the Oklahoma Department of Commerce to accrue to the

state as a result of new direct jobs;

4. “Estimated indirect state benefits” means the indirect new

tax revenues projected by the Oklahoma Department of Commerce to

accrue to the state, including, but not limited to, revenue

generated from ancillary support jobs directly related to the

establishment;

5. "Estimated direct state costs" means the costs projected by

the Department to accrue to the state as a result of new direct

jobs. Such costs shall include, but not be limited to:

a. the costs of education of new state resident children,

b. the costs of public health, public safety and

transportation services to be provided to new state

residents,

c. the costs of other state services to be provided to

new state residents, and

d. the costs of other state services;

6. “Estimated indirect state costs” means the costs projected

by the Department to accrue to the state as a result of new indirect

jobs. Such costs shall include, but not be limited to, costs

enumerated in subparagraphs a, b, c and d of paragraph 5 of this

subsection;

7. "Estimated net direct state benefits" means the estimated

direct state benefits less the estimated direct state costs;

8. “Estimated net direct and indirect state benefits” means the

estimated direct and indirect state benefits less the estimated

direct and indirect state costs;

9. "Full-time employment" means employment of persons residing

in this state and working for thirty (30) hours per week or more in

this state, which has a minimum six-month duration during any

twelve-month period;

10. "Gross taxable payroll" means wages, as defined in Section

2385.1 of Title 68 of the Oklahoma Statutes, for new direct jobs;

11. "Initial net benefit rate" means the estimated net direct

state benefits computed as a percentage of gross payroll; provided:

a. the initial net benefit rate may be variable and shall

not exceed seven percent (7%), and

b. in no event shall incentive payments, cumulatively,

exceed the estimated net direct state benefits; and

12. "Fulfillment net benefit rate" means the estimated net

direct and indirect state benefits computed as a percentage of gross

payroll after the completion of the first twelve (12) quarters or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1457

until the establishment reaches ten new direct jobs, whichever

occurs first, provided:

a. the fulfillment net benefit rate may be variable and

shall not exceed ten percent (10%), and

b. in no event shall incentive payments, cumulatively,

exceed the estimated net direct and indirect state

benefits; and

13. "New direct job" means full-time employment which did not

exist in this state prior to the date of approval, by the Oklahoma

Department of Commerce, of an application made pursuant to this act.

A job shall be deemed to exist in this state prior to approval of an

application if the activities and functions for which the particular

job exists have been ongoing at anytime within six (6) months prior

to such approval.
Okla. Stat. tit. 68, § 68-2357.42 — OK Code / Title 68 / Section 68-2357.42
Tax credit for investments by space transportation
Status: in_force

vehicle providers.

A. For tax years beginning after December 31, 2000, and ending

before January 1, 2009, there shall be allowed to an investor making

an eligible investment a credit against the tax imposed by Section

2355 or 2370 of this title or Section 624 or 628 of Title 36 of the

Oklahoma Statutes. The credit may be used in the payment of

estimated tax payments for the tax imposed by Section 624 or 628 of

Title 36 of the Oklahoma Statutes. The credit shall be in the

amount as set forth in subsection G of this section.

B. The amount of the credit shall be transferable to subsequent

transferees.

C. As used in this section:

1. “Eligible investment” means an investment made during a

period not earlier than January 1, 2001, and not later than December

31, 2003, in a qualified space transportation vehicle provider that:

a. is headquartered in this state or is ultimately

controlled by an entity headquartered in this state,

b. has been certified by the Oklahoma Tax Commission as

meeting the following minimum qualifications:

(1) is included within the definition of “basic

industry” as set forth in division (1) of

subparagraph a of paragraph 1 of subsection A of

Section 3603 of this title and has been

preapproved by the Oklahoma Department of

Commerce to receive incentive payments pursuant

to the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act. The

Department shall establish a process for

preapproval of applicants for the Oklahoma

Quality Jobs Program Act or the Former Military

Facility Development Act for purposes of this

division. The qualified space transportation

vehicle provider shall agree to submit such

information as may be required under this section

and the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act to allow

the Tax Commission to determine the amount of the

tax credit allowed pursuant to the provisions of

this section and the amount of incentive payments

allowed pursuant to the Oklahoma Quality Jobs

Program Act or the Former Military Facility

Development Act for purposes of subsection K of

this section,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 817

(2) has equity capitalization of not less than Ten

Million Dollars ($10,000,000.00), and

(3) has received a commitment by a local governmental

entity, whether by contract, letter agreement,

terms sheet, resolution, ordinance or indenture,

to provide funds, personal property or real

property in the aggregate amount of Fifteen

Million Dollars ($15,000,000.00) or more which

will be utilized by one or more qualified space

transportation vehicle providers. For purposes

of this division, such property may include

personal or real property owned by a local

governmental entity which has been leased to a

state authority pursuant to a long-term lease or

personal or real property which a local

governmental entity has transferred to a state

authority. If such property has been so

transferred, the commitment required by this

division may be satisfied if the state authority

agrees in writing to make the property so

transferred available for use by one or more

qualified space transportation vehicle providers;

2. “Qualified space transportation vehicle provider” means any

commercial provider organized under the laws of this state as a

corporation or a limited liability company and engaged in designing,

developing, producing, or operating commercial space transportation

vehicles in this state;

3. “Space transportation vehicle” includes all types of

vehicles or orbital or suborbital spacecraft, whether now in

existence, developed in the future, or currently under design,

development, construction, reconstruction, or reconditioning,

constructed in this state and owned by a qualified space

transportation vehicle provider, for the purpose of operating in, or

transporting a payload to, from, or within, outer space, or in

suborbital trajectory, and includes any component of such vehicle or

spacecraft not specifically designed or adapted for a payload; and

4. "Subsequently refunded or returned", when used in reference

to an eligible investment, means an actual redemption by the

qualified space transportation vehicle provider of the securities or

other indicia of ownership in the qualified space transportation

vehicle provider received by the investor from the investor's

investment. The failure to allow the tax credits or the recapture

of the tax credits shall not affect the validity of the tax credits

in the hands of a transferee of the initial investor or subsequent

transferees. Provided, an investor to whom an eligible investment,

or portion thereof, is subsequently refunded or returned shall

Oklahoma Statutes - Title 68. Revenue and Taxation Page 818

reimburse the Tax Commission the amount of any credits claimed by a

transferee with respect to any such amount.

D. The tax credit provided for in this section shall not be

allowed or, if already claimed, shall be subject to recapture as to

the initial investor or investors with respect to any amount of an

eligible investment made which is subsequently refunded or returned

to such investor. Further, a tax credit shall not be allowed to an

investor making an eligible investment in a qualified space

transportation vehicle provider or shall be subject to recapture as

to the initial investor or investors if previously allowed if the

qualified space transportation vehicle provider in which the

investment was made fails to make use of such funds or property

within three (3) years of the date the tax credit was allowed. Any

recapture under this subsection shall only apply as to that part of

the tax credit as is associated with the amount of the investment

which is subsequently refunded or returned or which is not utilized.

E. The Tax Commission shall:

1. Certify, upon request of an authorized agent or

representative of a qualified space transportation vehicle provider,

that the qualified space transportation vehicle provider for which

the certification is sought meets the qualifications prescribed by

subparagraph b of paragraph 1 of subsection C of this section. The

certification shall be in writing and signed by an authorized

representative of the Tax Commission and, for purposes of

determining qualifications of a qualified space transportation

vehicle provider in which an investment may be eligible for the

credit authorized by this section, shall be binding upon the Tax

Commission; and

2. Issue a certificate to an investor that provides adequate

documentation of qualification for the credit authorized by this

section even if the credit may not be claimed until after the date

upon which the certificate is requested. Upon issuance, the

certificate shall be evidence that an investor or a transferee of

the original tax credit claimant submitting the certificate, or a

certified copy thereof, with the relevant tax return or other form,

has the legal right to exercise the credit in order to reduce the

relevant tax liability for the period authorized by this section.

F. The maximum amount of all eligible investments for which tax

credits may be claimed under this section shall be Thirty Million

Dollars ($30,000,000.00). If more than one qualified space

transportation vehicle provider has been certified by the Tax

Commission pursuant to the provisions of subsection E of this

section, the investors in the first such approved qualified space

transportation vehicle provider shall be entitled to a credit based

on their investment of the lesser of their eligible investment or

Thirty Million Dollars ($30,000,000.00). The investors in the

second such approved qualified space transportation vehicle provider

Oklahoma Statutes - Title 68. Revenue and Taxation Page 819

shall then be entitled to a credit based on their investment of the

lesser of their eligible investment or the difference between the

total eligible investments in previously approved qualified space

transportation vehicle providers and Thirty Million Dollars

($30,000,000.00). This same procedure will apply for all

subsequently approved qualified space transportation vehicle

providers. If the amount of eligible investments exceeds the amount

upon which the tax credit may be claimed as provided herein,

investors shall be allowed a share of the amount of the available

tax credit in order of the dates of receipt of certification

therefor by the Tax Commission pursuant to the provisions of

paragraph 1 of subsection E of this section.

G. The amount of the tax credit allowed pursuant to the

provisions of subsection A of this section shall be deemed fully

earned as of the date of the investment and shall be fully

redeemable as follows:

Period for Which

Tax Liability Determined Credit Allowed

Tax year subsequent to year of

eligible investment 10.6% of eligible

investment

Second tax year subsequent to year

of eligible investment 11.236% of eligible

investment

Third tax year subsequent to year

of eligible investment 11.910% of eligible

investment

Fourth tax year subsequent to year

of eligible investment 12.624% of eligible

investment

Fifth tax year subsequent to year

of eligible investment 13.381% of eligible

investment

H. The amount of a tax credit allowed pursuant to the

provisions of this section not used in payment of taxes due in the

year in which such credit is allowed pursuant to subsection G of

this section may be used as a credit against subsequent tax

liability of the investor or a subsequent transferee for a period

not to exceed three (3) years from the year in which such credit is

originally allowed.

I. The Tax Commission shall develop and issue appropriate forms

and instructions to enable investors to claim the tax credit

provided for in this section.

J. A qualified space transportation vehicle provider in which

an eligible investment qualifies for a credit authorized by this

section shall maintain a record of investment made in the qualified

space transportation vehicle provider for the period beginning

Oklahoma Statutes - Title 68. Revenue and Taxation Page 820

January 1, 2001, and ending December 31, 2003. The qualified space

transportation vehicle provider shall notify the Tax Commission not

later than January 31, 2004, of the total investment amount for such

period. Any such qualified space transportation vehicle provider

which refunds or returns any amount of an eligible investment to the

investor shall notify the Tax Commission in writing of the amount

and recipient of such refunds or returns. The Tax Commission shall

compute the maximum amount of credits available pursuant to this

section based upon notification of the investment amount transmitted

to the Tax Commission by the qualified space transportation vehicle

provider.

K. A qualified space transportation vehicle provider in which

eligible investments qualify for the tax credit authorized by this

section shall not receive incentive payments pursuant to the

Oklahoma Quality Jobs Program Act or the Former Military Facility

Development Act until the total of such incentive payments the

qualified space transportation vehicle provider would otherwise

receive exceeds the total amount of the credit authorized by this

section as computed by the Tax Commission pursuant to subsection J

of this section. The amount of incentive payments for any year

which would otherwise be paid to the qualified space transportation

vehicle provider shall be distributed as follows:

1. If the amount of such incentive payments equals or exceeds

the amount of the tax credit for the year, the amount of such

payments which is equal to the amount of the tax credit shall be

apportioned as if collected from the tax imposed by Section 2355 or

2370 of this title or Section 624 or 628 of Title 36 of the Oklahoma

Statutes according to the tax against which the credit was claimed.

The amount of such payments which is in excess of the amount of the

tax credit shall be retained by the Tax Commission to be paid as

provided for in this paragraph for subsequent years for which the

tax credit is allowed to the qualified space transportation vehicle

provider;

2. If the amount of such incentive payments and any amount

retained by the Tax Commission pursuant to the provisions of

paragraph 1 of this subsection is less than the amount of the tax

credit for the year, notwithstanding the provisions of Section 1727

of Title 69 of the Oklahoma Statutes, the Tax Commission shall

withhold a portion of the taxes levied and collected pursuant to the

provisions of paragraph 1 of subsection A of Section 500.4 of this

title which would otherwise be paid to the Department of

Transportation by the Oklahoma Transportation Authority pursuant to

the provisions of paragraph (2) of subsection (d) of Section 1730 of

Title 69 of the Oklahoma Statutes equal to the amount of the

deficit.

The Tax Commission shall apportion all funds collected pursuant

to the provisions of this paragraph as if collected from the tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 821

imposed by Section 2355 or 2370 of this title or Section 624 or 628

of Title 36 of the Oklahoma Statutes according to the tax against

which the credit was claimed; and

3. If any amount is withheld by or paid to the Tax Commission

pursuant to the provisions of paragraph 2 of this subsection, the

amount of incentive payments to be subsequently paid to the

qualified space transportation vehicle provider shall be apportioned

by the Tax Commission to the Department of Transportation until such

time as all amounts paid pursuant to the provisions of paragraph 2

of this subsection are repaid.

L. A qualified space transportation vehicle provider in which

investments qualify for the credit allowed by this section shall not

be entitled to payment of any incentive payments accrued prior to

January 1, 2001, under the Oklahoma Quality Jobs Program Act or the

Former Military Facility Development Act.

M. Notwithstanding the provisions of this section, a qualified

space transportation vehicle provider may, prior to the issuance of

a tax credit with respect to the qualified space transportation

vehicle provider pursuant to the provisions of this section, elect

to receive incentive payments pursuant to the provisions of the

Oklahoma Quality Jobs Program Act or the Former Military Facility

Development Act in lieu of allowing the tax credit provided for

herein, in which case it shall so notify the Tax Commission in

writing and the provisions of this section shall not be applicable.

N. Except as provided by subsection M of this section, no

qualified space transportation vehicle provider which would

otherwise qualify for incentive payments pursuant to the provisions

of the Oklahoma Quality Jobs Program Act or the Former Military

Facility Development Act may receive such incentive payments prior

to January 1, 2003.

O. No qualified space transportation vehicle provider which has

made application to the Oklahoma Department of Commerce or which has

executed any agreement with the Oklahoma Department of Commerce with

respect to the receipt of incentive payments pursuant to the

provisions of the Oklahoma Quality Jobs Program Act or the Former

Military Facility Development Act or which has received any

incentive payment pursuant to the Oklahoma Quality Jobs Program Act

or the Former Military Facility Development Act prior to May 24,

2001, may be certified for purposes of determining eligibility for

the credit authorized by this section.
Okla. Stat. tit. 68, § 68-2355.1A — OK Code / Title 68 / Section 68-2355.1A
Determinations by State Board of Equalization - Income
Status: in_force

tax rate changes.

A. The provisions of this section shall be applicable with

respect to the implementation of the decreases in the top marginal

rate of individual income tax otherwise authorized pursuant to the

provisions of subparagraph (h) of paragraphs 1 and 2 of subsection B

of Section 2355 of this title which shall be contingent upon a

determination by the State Board of Equalization made by a

comparison of the revenue computations described by this section

which shall be conducted until the income tax rate of five and

twenty-five hundredths percent (5.25%) is effective.

B. In addition to any other duties prescribed by law, at the

meeting required by paragraph 1 of Section 23 of Article X of the

Oklahoma Constitution to be held in December 2008, and for any

subsequent December meeting of the State Board of Equalization if

the top marginal income tax rate prescribed by subparagraph (h) of

paragraphs 1 and 2 of subsection B of Section 2355 of this title has

not become effective, the State Board of Equalization shall

determine:

1. The amount of revenue growth in the General Revenue Fund of

the State Treasury by comparing the fiscal year General Revenue Fund

estimate for the fiscal year beginning on the next ensuing July 1

date to the revised General Revenue Fund estimate for the then

current fiscal year; and

2. The amount by which the income tax revenue for the tax year

which will begin on the second January 1 date following such

December meeting is estimated to be reduced by the increase in the

standard deduction provided in paragraph 2 of subsection E of

Section 2358 of this title, plus an amount equal to four percent

(4%) of the revised General Revenue Fund estimate for the then

current fiscal year in order for a top marginal income tax rate of

five and twenty-five hundredths percent (5.25%) to be effective.

If the amount determined pursuant to the provisions of paragraph

1 of this subsection is equal to or greater than the amount

determined pursuant to the provisions of paragraph 2 of this

subsection, the Board shall make a preliminary finding that the

Board anticipates that a finding will be made at the February

meeting immediately subsequent to the December meeting that

Oklahoma Statutes - Title 68. Revenue and Taxation Page 752

applicable revenue growth in the state will authorize the

implementation of the provisions of subparagraph (h) of paragraphs 1

and 2 of subsection B of Section 2355 of this title beginning on the

second January 1 following such December meeting.

If the amount determined pursuant to the provisions of paragraph

1 of this subsection is less than the amount determined pursuant to

the provisions of paragraph 2 of this subsection, the Board shall

make a preliminary finding that the Board anticipates that a finding

will be made at the February meeting immediately subsequent to the

December meeting that applicable revenue growth in the state will

not authorize the implementation of the provisions of subparagraph

(h) of paragraphs 1 and 2 of subsection B of Section 2355 of this

title beginning on the second January 1 following such December

meeting.

C. In addition to any other duties prescribed by law, at the

meeting required by paragraph 3 of Section 23 of Article X of the

Oklahoma Constitution to be held in February 2009, and for any

subsequent February meeting of the State Board of Equalization if

the top marginal income tax rate prescribed by subparagraph (h) of

paragraphs 1 and 2 of subsection B of Section 2355 of this title has

not become effective the State Board of Equalization shall

determine:

1. The amount of revenue growth in the General Revenue Fund of

the State Treasury by comparing the fiscal year General Revenue Fund

estimate for the fiscal year beginning on the next ensuing July 1

date to the revised General Revenue Fund estimate for the then

current fiscal year; and

2. The amount by which the income tax revenue for the tax year

which will begin on the January 1 date immediately following such

February meeting is estimated to be reduced by the increase in the

standard deduction provided in paragraph 2 of subsection E of

Section 2358 of this title plus an amount equal to four percent (4%)

of the revised General Revenue Fund estimate for the then current

fiscal year in order for a top marginal income tax rate of five and

twenty-five hundredths percent (5.25%) to be effective.

If the amount determined pursuant to the provisions of paragraph

1 of this subsection is equal to or greater than the amount

determined pursuant to the provisions of paragraph 2 of this

subsection, the Board shall make a finding that applicable revenue

growth in the state will authorize the implementation of the

provisions of subparagraph (h) of paragraphs 1 and 2 of subsection B

of Section 2355 of this title beginning on the January 1 date

immediately following such February meeting.

If the amount determined pursuant to the provisions of paragraph

1 of this subsection is less than the amount determined pursuant to

the provisions of paragraph 2 of this subsection, the Board shall

make a finding that applicable revenue growth in the state does not

Oklahoma Statutes - Title 68. Revenue and Taxation Page 753

authorize the implementation of the provisions of subparagraph (h)

of paragraphs 1 and 2 of subsection B of Section 2355 of this title

beginning with the January 1 date immediately following such

February meeting.

D. If the Board makes a finding that applicable revenue growth

in the state does not authorize the implementation of the provisions

of subparagraph (h) of paragraphs 1 and 2 of subsection B of Section

2355 of this title beginning with calendar year 2010 pursuant to the

provisions of subsection C of this section, the procedures

prescribed by subsection A, subsection B, and subsection C of this

section shall be repeated by the State Board of Equalization for

each successive two-year comparison. Once the income tax rate

otherwise authorized pursuant to subparagraph (h) of paragraphs 1

and 2 of subsection B of Section 2355 of this title has been

implemented as a result of the analysis of the General Revenue Fund

estimates together with the fiscal impact of the standard deduction

as authorized pursuant to paragraph 2 of subsection E of Section

2358 of this title, such income tax rate shall be in effect for the

tax years as prescribed by subparagraph (h) of paragraphs 1 and 2 of

subsection B of Section 2355 of this title.
Okla. Stat. tit. 68, § 68-412 — OK Code / Title 68 / Section 68-412
Untaxed merchandise - Surety or bond - Tax
Status: in_force

A. Every wholesaler who purchases or allows to come into his or

her possession any untaxed merchandise coming under the scope of

this article shall file with the Oklahoma Tax Commission a surety or

collateral or cash bond in the amount of Twenty-five Thousand

Dollars ($25,000.00), payable to the State of Oklahoma and

conditioned upon compliance with the provisions of this article and

the rules of the Tax Commission.

B. Any consumer who purchases or brings into this state untaxed

tobacco products whereon the tax would be more than twenty-five

cents ($0.25) is subject to the tax thereon. Upon failure to pay

the tax levied in this article, the consumer shall be subject to a

fine of not more than Five Hundred Dollars ($500.00) or not less

than Twenty-five Dollars ($25.00) to be deposited in the Tobacco

Products Tax Enforcement Unit Revolving Fund created in Section 7 of

Enrolled House Bill No. 2292 of the 1st Session of the 58th Oklahoma

Legislature. Provided, any person in possession of more than one

Oklahoma Statutes - Title 68. Revenue and Taxation Page 237

thousand small or large cigars or two hundred sixteen (216) ounces

of smokeless or smoking tobacco in packages or containers for which

the tax required by law has not been paid shall be punished by

administrative fines in the manner and amounts provided in

subsection D of Section 418 of this title.
Okla. Stat. tit. 68, § 68-1641 — OK Code / Title 68 / Section 68-1641
Requirement of licensure to conduct fireworks displays
Status: in_force

A. It is unlawful for anyone other than a licensed outdoor

display operator to conduct an outdoor display using only display

fireworks.

B. It is unlawful for any licensed outdoor display operator to

conduct an outdoor fireworks display except in accordance with NFPA

1123.

C. It is allowable for a licensed outdoor display operator to

use 1.4G or 1.4S fireworks in outdoor displays.

D. A violation of subsection A or B of this section shall be a

misdemeanor.

E. Any municipality may adopt the provisions of subsections A

and B of this section by reference or substantial duplication as an

ordinance violation.

F. The provisions of subsection A or B of this section shall

not apply to individuals or organizations employing consumer

fireworks for their personal or display use.
Okla. Stat. tit. 68, § 68-2902v1 — OK Code / Title 68 / Section 68-2902v1
Manufacturing facilities – Exemption from ad valorem
Status: in_force

tax.

A. Except as otherwise provided by subsection H of Section 3658

of this title pursuant to which the exemption authorized by this

section may not be claimed, a qualifying manufacturing concern, as

defined by Section 6B of Article X of the Oklahoma Constitution, and

as further defined herein, shall be exempt from the levy of any ad

valorem taxes upon new, expanded or acquired manufacturing

facilities including facilities engaged in research and development,

for a period of five (5) years. The provisions of Section 6B of

Article X of the Oklahoma Constitution requiring an existing

facility to have been unoccupied for a period of twelve (12) months

prior to acquisition shall be construed as a qualification for a

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1249

facility to initially receive an exemption, and shall not be deemed

to be a qualification for that facility to continue to receive an

exemption in each of the four (4) years following the initial year

for which the exemption was granted. Such facilities are hereby

classified for the purposes of taxation as provided in Section 22 of

Article X of the Oklahoma Constitution.

B. For purposes of this section, the following definitions

shall apply:

1. “Manufacturing facilities” means facilities engaged in the

mechanical or chemical transformation of materials or substances

into new products and except as provided by paragraph 6 of

subsection C of this section shall include:

a. establishments which have received a manufacturer

exemption permit pursuant to the provisions of Section

1359.2 of this title,

b. facilities including repair and replacement parts,

primarily engaged in aircraft repair, building and

rebuilding whether or not on a factory basis,

c. establishments primarily engaged in computer services

and data processing as defined under Industrial Group

Numbers 5112 and 5415, and U.S. Industry Number 334611

and 519130 of the NAICS Manual, latest revision, and

which derive at least fifty percent (50%) of their

annual gross revenues from the sale of a product or

service to an out-of-state buyer or consumer, and as

defined under Industrial Group Number 5182 of the

NAICS Manual, latest revision, which derive at least

eighty percent (80%) of their annual gross revenues

from the sale of a product or service to an out-of-

state buyer or consumer. Eligibility as a

manufacturing facility pursuant to this subparagraph

shall be established, subject to review by the

Oklahoma Tax Commission, by annually filing an

affidavit with the Tax Commission stating that the

facility so qualifies and such other information as

required by the Tax Commission. For purposes of

determining whether annual gross revenues are derived

from sales to out-of-state buyers, all sales to the

federal government shall be considered to be an out-

of-state buyer,

d. facilities that the investment cost of the

construction, acquisition or expansion is Five Hundred

Thousand Dollars ($500,000.00) or more with respect to

assets placed into service during calendar year 2022.

For subsequent calendar years, the investment required

shall be increased annually by a percentage equal to

the previous year’s increase in the Consumer Price

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1250

Index-All Urban Consumers (“CPI-U”) and such adjusted

amount shall be the required investment cost in order

to qualify for the exemption authorized by this

section. The Oklahoma Department of Commerce shall

determine the amount of the increase, if any, on

January 1 of each year. The Oklahoma Tax Commission

shall publish on its website at least annually the

adjusted dollar amount in order to qualify for the

exemption authorized by this section and shall include

the adjusted dollar amount in any of its relevant

forms or publications with respect to the exemption.

Provided, “investment cost” shall not include the cost

of direct replacement, refurbishment, repair or

maintenance of existing machinery or equipment, except

that investment cost shall include capital

expenditures for direct replacement, refurbishment,

repair or maintenance of existing machinery or

equipment that qualifies for depreciation and/or

amortization pursuant to the Internal Revenue Code of

1986, as amended, and such expenditures shall be

eligible as a part of an expansion that otherwise

qualifies under this section,

e. establishments primarily engaged in distribution as

defined under Industry Numbers 49311, 49312, 49313 and

49319 and Industry Sector Number 42 of the NAICS

Manual, latest revision, and which meet the following

qualifications:

(1) construction with an initial capital investment

of at least Five Million Dollars ($5,000,000.00),

(2) employment of at least one hundred (100) full-

time-equivalent employees, as certified by the

Oklahoma Employment Security Commission,

(3) payment of wages or salaries to its employees at

a wage which equals or exceeds the average wage

requirements in the Oklahoma Quality Jobs Program

Act for the year in which the real property was

placed into service, and

(4) commencement of construction on or after November

1, 2007, with construction to be completed within

three (3) years from the date of the commencement

of construction,

f. facilities engaged in the manufacturing, compounding,

processing or fabrication of materials into articles

of tangible personal property according to the special

order of a customer (custom order manufacturing) by

manufacturers classified as operating in North

American Industry Classification System (NAICS)

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1251

Sectors 32 and 33, but does not include such custom

order manufacturing by manufacturers classified in

other NAICS code sectors, and

g. with respect to any entity making an application for

the exemption authorized by this section on or after

January 1, 2023, the establishment making application

for exempt treatment of real or personal property

acquired or improved beginning January 1, 2022, and

for any calendar year thereafter, the entity shall be

required to pay new direct jobs, as defined by Section

3603 of this title for purposes of the Oklahoma

Quality Jobs Program Act, an average annualized wage

which equals or exceeds the average wage requirement

in the Oklahoma Quality Jobs Program Act for the year

in which the real or personal property was placed into

service. The Oklahoma Tax Commission may request

verification from the Oklahoma Department of Commerce

that an establishment seeking an exemption for real or

personal property pays an average annualized wage that

equals or exceeds the average wage requirement in

effect for the year in which the real or personal

property was placed into service. For purposes of

this subparagraph, it shall not be necessary for the

establishment to qualify for incentive payments

pursuant to the Oklahoma Quality Jobs Program Act, but

the establishment shall be subject to the wage

requirements of the Oklahoma Quality Jobs Program Act

with respect to new direct jobs in order to qualify

for the exempt treatment authorized by this section.

Eligibility as a manufacturing facility pursuant to this

subparagraph shall be established, subject to review by the Tax

Commission, by annually filing an affidavit with the Tax Commission

stating that the facility so qualifies and containing such other

information as required by the Tax Commission.

Provided, eating and drinking places, as well as other retail

establishments, shall not qualify as manufacturing facilities for

purposes of this section, nor shall centrally assessed properties.

Eligibility as a manufacturing facility pursuant to this

subparagraph shall be established, subject to review by the Tax

Commission, by annually filing an application with the Tax

Commission stating that the facility so qualifies and containing

such other information as required by the Tax Commission;

2. “Facility” and “facilities”, except as otherwise provided by

this section, means and includes the land, buildings, structures and

improvements used directly and exclusively in the manufacturing

process. Effective January 1, 2022, and for each calendar year

thereafter, for establishments which have received a manufacturer

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1252

exemption permit pursuant to the provisions of Section 1359.2 of

this title, or facilities engaged in manufacturing activities

defined or classified in the NAICS Manual under Industry Nos. 311111

through 339999, inclusive, but for no other establishments, facility

and facilities means and includes the land, buildings, structures,

improvements, machinery, fixtures, equipment and other personal

property used directly and exclusively in the manufacturing process;

and

3. “Research and development” means activities directly related

to and conducted for the purpose of discovering, enhancing,

increasing or improving future or existing products or processes or

productivity.

C. The following provisions shall apply:

1. A manufacturing concern shall be entitled to the exemption

herein provided for each new manufacturing facility constructed,

each existing manufacturing facility acquired and the expansion of

existing manufacturing facilities on the same site, as such terms

are defined by Section 6B of Article X of the Oklahoma Constitution

and by this section;

2. No manufacturing concern shall receive more than one five-

year exemption for any one manufacturing facility unless the

expansion which qualifies the manufacturing facility for an

additional five-year exemption meets the requirements of paragraph 4

of this subsection and the employment level established for any

previous exemption is maintained;

3. Any exemption as to the expansion of an existing

manufacturing facility shall be limited to the increase in ad

valorem taxes directly attributable to the expansion;

4. All initial applications for any exemption for a new,

acquired or expanded manufacturing facility shall be granted only

if:

a. there is a net increase in annualized base payroll

over the initial payroll of at least Two Hundred Fifty

Thousand Dollars ($250,000.00) if the facility is

located in a county with a population of fewer than

seventy-five thousand (75,000), according to the most

recent Federal Decennial Census, while maintaining or

increasing base payroll in subsequent years, or at

least One Million Dollars ($1,000,000.00) if the

facility is located in a county with a population of

seventy-five thousand (75,000) or more, according to

the most recent Federal Decennial Census, while

maintaining or increasing base payroll in subsequent

years; provided, the payroll requirement of this

subparagraph shall be waived for claims for exemptions

including claims previously denied or on appeal on

March 3, 2010, for all initial applications for

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1253

exemption filed on or after January 1, 2004, and on or

before March 31, 2009, and all subsequent annual

exemption applications filed related to the initial

application for exemption, for an applicant, if the

facility has been located in Oklahoma for at least

fifteen (15) years engaged in marine engine

manufacturing as defined under U.S. Industry Number

333618 of the NAICS Manual, latest revision, and has

maintained an average employment of five hundred (500)

or more full-time-equivalent employees over a ten-year

period. Any applicant that qualifies for the payroll

requirement waiver as outlined in the previous

sentence and subsequently closes its Oklahoma

manufacturing plant prior to January 1, 2012, may be

disqualified for exemption and subject to recapture.

For an applicant engaged in paperboard manufacturing

as defined under U.S. Industry Number 322130 of the

NAICS Manual, latest revision, union master payouts

paid by the buyer of the facility to specified

individuals employed by the facility at the time of

purchase, as specified under the purchase agreement,

shall be excluded from payroll for purposes of this

section.

In order to provide certainty with respect to

investments in manufacturing facilities pertaining to

all initial applications for exemption filed on or

after January 1, 2016, the following definitions shall

apply:

(1) “base payroll” shall mean total payroll adjusted

for any nonrecurring bonuses, exercise of stock

option or stock rights and other nonrecurring,

extraordinary items included in total payroll,

and

(2) “initial payroll” shall mean base payroll for the

year immediately preceding the initial

construction, acquisition or expansion.

The Tax Commission shall verify payroll

information through the Oklahoma Employment

Security Commission by using reports from the

Oklahoma Employment Security Commission for the

calendar year immediately preceding the year for

which initial application is made for base-line

payroll, which must be maintained or increased

for each subsequent year; provided, a

manufacturing facility shall have the option of

excluding from its payroll, for purposes of this

section:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1254

i. payments to sole proprietors, members

of a partnership, members of a limited

liability company who own at least ten

percent (10%) of the capital of the

limited liability company or

stockholder-employees of a corporation

who own at least ten percent (10%) of

the stock in the corporation, and

ii. any nonrecurring bonuses, exercise of

stock option or stock rights or other

nonrecurring, extraordinary items

included in total payroll numbers as

reported by the Oklahoma Employment

Security Commission. A manufacturing

facility electing either option shall

indicate such election upon its

application for an exemption under this

section. Any manufacturing facility

electing either option shall submit

such information as the Tax Commission

may require in order to verify payroll

information. Payroll information

submitted pursuant to the provisions of

this paragraph shall be submitted to

the Tax Commission and shall be subject

to the provisions of Section 205 of

this title, and

b. the facility offers, or will offer within one hundred

eighty (180) days of the date of employment, a basic

health benefits plan to the full-time-equivalent

employees of the facility, which is determined by the

Oklahoma Department of Commerce to consist of the

elements specified in subparagraph b of paragraph 1 of

subsection A of Section 3603 of this title or elements

substantially equivalent thereto.

For purposes of this section, calculation of the amount of

increased base payroll shall be measured from the start of initial

construction or expansion to the completion of such construction or

expansion or for three (3) years from the start of initial

construction or expansion, whichever occurs first. The amount of

increased base payroll shall include payroll for full-time-

equivalent employees in this state who are employed by an entity

other than the facility which has previously or is currently

qualified to receive an exemption pursuant to the provisions of this

section and who are leased or otherwise provided to the facility, if

such employment did not exist in this state prior to the start of

initial construction or expansion of the facility. The

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1255

manufacturing concern shall submit an affidavit to the Tax

Commission, signed by an officer, stating that the construction,

acquisition or expansion of the facility will result in a net

increase in the annualized base payroll as required by this

paragraph and that full-time-equivalent employees of the facility

are or will be offered a basic health benefits plan as required by

this paragraph. If, after the completion of such construction or

expansion or after three (3) years from the start of initial

construction or expansion, whichever occurs first, the construction,

acquisition or expansion has not resulted in a net increase in the

amount of annualized base payroll, if required, or any other

qualification specified in this paragraph has not been met, the

manufacturing concern shall pay an amount equal to the amount of any

exemption granted including penalties and interest thereon, to the

Tax Commission for deposit to the Ad Valorem Reimbursement Fund;

5. Except as otherwise provided by this paragraph, any new,

acquired or expanded computer data processing, data preparation or

information processing services provider classified in U.S. Industry

Number 518210 of the North American Industrial Classification System

(NAICS) Manual, 2017 revision, may apply for exemptions under this

section for each year in which new, acquired, or expanded capital

improvements to the facility are made for assets placed in service

not later than December 31, 2021, if:

a. there is a net increase in annualized payroll of the

applicant at any facility or facilities of the

applicant in this state of at least Two Hundred Fifty

Thousand Dollars ($250,000.00), which is attributable

to the capital improvements, or a net increase of

Seven Million Dollars ($7,000,000.00) or more in

capital improvements, while maintaining or increasing

payroll at the facility or facilities in this state

which are included in the application, and

b. the facility offers, or will offer within one hundred

eighty (180) days of the date of employment of new

employees attributable to the capital improvements, a

basic health benefits plan to the full-time-equivalent

employees of the facility, which is determined by the

Oklahoma Department of Commerce to consist of the

elements specified in subparagraph b of paragraph 1 of

subsection A of Section 3603 of this title or elements

substantially equivalent thereto.

An establishment described by this paragraph, the primary

business activity of which is described by Industry No. 518210 of

the North American Industry Classification System (NAICS) Manual,

2017 revision, that has applied for and been granted an exemption

for personal property at any time within five (5) years prior to

November 1, 2021, may apply for exemptions for items of eligible

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1256

personal property to be located within improvements to real property

and such real property and improvements having been exempt from ad

valorem taxation prior to November 1, 2021, pursuant to the

provisions of this section if such personal property is placed in

service not later than December 31, 2036. No additional personal

property of such establishment placed in service after such date

shall qualify for the exempt treatment otherwise authorized pursuant

to this paragraph;

6. Effective January 1, 2017, an entity engaged in electric

power generation by means of wind, as described by the North

American Industry Classification System, No. 221119, shall not be

defined as a qualifying manufacturing concern for purposes of the

exemption otherwise authorized pursuant to Section 6B of Article X

of the Oklahoma Constitution or qualify as a manufacturing facility

as defined in this section. No initial application for exemption

shall be filed by or accepted from an entity engaged in electric

power generation by means of wind on or after January 1, 2018;

7. An entity or applicant engaged in an industry as defined

under U.S. Industry Number 324110 of the NAICS Manual, latest

revision, which has applied for or been granted an exemption for a

time period which began on or after calendar year 2012 and before

calendar year 2016 but which did not meet the payroll requirements

of subparagraph a of paragraph 4 of this subsection because of

nonrecurring bonuses, exercise of stock option or stock rights or

other nonrecurring, extraordinary items included in total payroll in

the previous year, shall be allowed an exemption, beginning with

calendar year 2016, for the number of years including the calendar

year for which the exemption was denied, remaining in the entity’s

five-year exemption period, provided such entity attains or

increases payroll at or above the initial or base payroll

established for the exemption;

8. A facility engaged in manufacturing defined under U.S.

Industry Number 327310 of the NAICS Manual shall have the payroll

requirements of paragraph 4 of this subsection waived for tax year

2021, which is based in part on the 2020 calendar year payroll

reported to the Oklahoma Employment Security Commission, and may

continue to receive the exemption for the five-year period provided

in this section only if all other requirements of this section are

met; and

9. A facility engaged in manufacturing which otherwise

qualifies for the exemption or exemptions pursuant to the provisions

of this section shall have the payroll requirements of paragraph 4

of this subsection waived for tax year 2021, which is based in part

on the 2020 calendar year payroll reported to the Oklahoma

Employment Security Commission, and for tax year 2022, which is

based in part on the 2021 calendar year payroll reported to the

Oklahoma Employment Security Commission, and may continue to receive

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1257

the exemption for the five-year period provided in this section only

if all other requirements of this section are met.

D. 1. Except as provided in paragraph 2 of this subsection,

the five-year period of exemption from ad valorem taxes for any

qualifying manufacturing facility property shall begin on January 1

following the initial qualifying use of the property in the

manufacturing process.

2. The five-year period of exemption from ad valorem taxes for

any qualifying manufacturing facility, as specified in subparagraphs

a and b of this paragraph, which is located within a tax incentive

district created pursuant to the Local Development Act by a county

having a population of at least five hundred thousand (500,000),

according to the most recent Federal Decennial Census, shall begin

on January 1 following the expiration or termination of the ad

valorem exemption, abatement, or other incentive provided through

the tax incentive district. Facilities qualifying pursuant to this

subsection shall include:

a. a manufacturing facility as defined in subparagraph c

of paragraph 1 of subsection B of this section, and

b. an establishment primarily engaged in distribution as

defined under Industry Number 49311 of the North

American Industry Classification System for which the

initial capital investment was at least One Hundred

Eighty Million Dollars ($180,000,000.00); provided,

that the qualifying job creation and depreciable

property investment occurred prior to calendar year

2017 but not earlier than calendar year 2013.

E. Any person, firm or corporation claiming the exemption

herein provided for shall file each year for which exemption is

claimed, an application therefor with the county assessor of the

county in which the new, expanded or acquired facility is located.

The application shall be on a form or forms prescribed by the Tax

Commission, and shall be filed on or before March 15, except as

provided in Section 2902.1 of this title, of each year in which the

facility desires to take the exemption or within thirty (30) days

from and after receipt by such person, firm or corporation of notice

of valuation increase, whichever is later. In a case where

completion of the facility or facilities will occur after January 1

of a given year, a facility may apply to claim the ad valorem tax

exemption for that year. If such facility is found to be qualified

for exemption, the ad valorem tax exemption provided for herein

shall be granted for that entire year and shall apply to the ad

valorem valuation as of January 1 of that given year. For

applicants who qualify under the provisions of subparagraph b of

paragraph 1 of subsection B of this section, the application shall

include a copy of the affidavit and any other information required

to be filed with the Tax Commission.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1258

F. The application shall be examined by the county assessor and

approved or rejected in the same manner as provided by law for

approval or rejection of claims for homestead exemptions. The

taxpayer shall have the same right of review by and appeal from the

county board of equalization, in the same manner and subject to the

same requirements as provided by law for review and appeals

concerning homestead exemption claims. Approved applications shall

be filed by the county assessor with the Tax Commission no later

than June 15, except as provided in Section 2902.1 of this title, of

the year in which the facility desires to take the exemption.

Incomplete applications and applications filed after June 15 will be

declared null and void by the Tax Commission. In the event that a

taxpayer qualified to receive an exemption pursuant to the

provisions of this section shall make payment of ad valorem taxes in

excess of the amount due, the county treasurer shall have the

authority to credit the taxpayer’s real or personal property tax

overpayment against current taxes due. The county treasurer may

establish a schedule of up to five (5) years of credit to resolve

the overpayment.

G. Nothing herein shall in any manner affect, alter or impair

any law relating to the assessment of property, and all property,

real or personal, which may be entitled to exemption hereunder shall

be valued and assessed as is other like property and as provided by

law. The valuation and assessment of property for which an

exemption is granted hereunder shall be performed by the Tax

Commission using one or more of the cost, income and expense and

sales comparison approaches to estimate fair cash value in

accordance with the Uniform Standards of Professional Appraisal

Practice.

H. For each year that a new, expanded, or acquired

manufacturing facility receives an exemption pursuant to Section 6B

of Article X of the Oklahoma Constitution, the entity shall provide

to the Tax Commission a report detailing the number of new jobs

created and the payroll data for new jobs created since the

exemption was provided. The Tax Commission shall provide the data

collected pursuant to this subsection to the Incentive Evaluation

Commission for only evaluation purposes by the Commission or a

designee.

I. The Tax Commission shall have the authority and duty to

prescribe forms and to promulgate rules as may be necessary to carry

out and administer the terms and provisions of this section.
Okla. Stat. tit. 68, § 68-1357v5 — OK Code / Title 68 / Section 68-1357v5
Exemptions – General
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 571

Exemptions – General.

There are hereby specifically exempted from the tax levied by

the Oklahoma Sales Tax Code:

1. Transportation of school pupils to and from elementary

schools or high schools in motor or other vehicles;

2. Transportation of persons where the fare of each person does

not exceed One Dollar ($1.00), or local transportation of persons

within the corporate limits of a municipality except by taxicabs;

3. Sales for resale to persons engaged in the business of

reselling the articles purchased, whether within or without the

state, provided that such sales to residents of this state are made

to persons to whom sales tax permits have been issued as provided in

the Oklahoma Sales Tax Code. This exemption shall not apply to the

sales of articles made to persons holding permits when such persons

purchase items for their use and which they are not regularly

engaged in the business of reselling; neither shall this exemption

apply to sales of tangible personal property to peddlers, solicitors

and other salespersons who do not have an established place of

business and a sales tax permit. The exemption provided by this

paragraph shall apply to sales of motor fuel or diesel fuel to a

Group Five vendor, but the use of such motor fuel or diesel fuel by

the Group Five vendor shall not be exempt from the tax levied by the

Oklahoma Sales Tax Code. The purchase of motor fuel or diesel fuel

is exempt from sales tax when the motor fuel is for shipment outside

this state and consumed by a common carrier by rail in the conduct

of its business. The sales tax shall apply to the purchase of motor

fuel or diesel fuel in Oklahoma by a common carrier by rail when

such motor fuel is purchased for fueling, within this state, of any

locomotive or other motorized flanged wheel equipment;

4. Sales of advertising space in newspapers and periodicals;

5. Sales of programs relating to sporting and entertainment

events, and sales of advertising on billboards (including signage,

posters, panels, marquees or on other similar surfaces, whether

indoors or outdoors) or in programs relating to sporting and

entertainment events, and sales of any advertising, to be displayed

at or in connection with a sporting event, via the Internet,

electronic display devices or through public address or broadcast

systems. The exemption authorized by this paragraph shall be

effective for all sales made on or after January 1, 2001;

6. Sales of any advertising, other than the advertising

described by paragraph 5 of this section, via the Internet,

electronic display devices or through the electronic media including

radio, public address or broadcast systems, television (whether

through closed circuit broadcasting systems or otherwise), and cable

and satellite television, and the servicing of any advertising

devices;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 572

7. Eggs, feed, supplies, machinery, and equipment purchased by

persons regularly engaged in the business of raising worms, fish,

any insect, or any other form of terrestrial or aquatic animal life

and used for the purpose of raising same for marketing. This

exemption shall only be granted and extended to the purchaser when

the items are to be used and in fact are used in the raising of

animal life as set out above. Each purchaser shall certify, in

writing, on the invoice or sales ticket retained by the vendor that

the purchaser is regularly engaged in the business of raising such

animal life and that the items purchased will be used only in such

business. The vendor shall certify to the Oklahoma Tax Commission

that the price of the items has been reduced to grant the full

benefit of the exemption. Violation hereof by the purchaser or

vendor shall be a misdemeanor;

8. Sale of natural or artificial gas and electricity, and

associated delivery or transmission services, when sold exclusively

for residential use. Provided, this exemption shall not apply to

any sales tax levied by a city or town, or a county or any other

jurisdiction in this state;

9. In addition to the exemptions authorized by Section 1357.6

of this title, sales of drugs sold pursuant to a prescription

written for the treatment of human beings by a person licensed to

prescribe the drugs, and sales of insulin and medical oxygen.

Provided, this exemption shall not apply to over-the-counter drugs;

10. Transfers of title or possession of empty, partially

filled, or filled returnable oil and chemical drums to any person

who is not regularly engaged in the business of selling, reselling

or otherwise transferring empty, partially filled or filled

returnable oil drums;

11. Sales of one-way utensils, paper napkins, paper cups,

disposable hot containers, and other one-way carry out materials to

a vendor of meals or beverages;

12. Sales of food or food products for home consumption which

are purchased in whole or in part with coupons issued pursuant to

the federal food stamp program as authorized by Sections 2011

through 2036d of Title 7 of the United States Code, as to that

portion purchased with such coupons. The exemption provided for

such sales shall be inapplicable to such sales upon the effective

date of any federal law that removes the requirement of the

exemption as a condition for participation by the state in the

federal food stamp program;

13. Sales of food or food products, or any equipment or

supplies used in the preparation of the food or food products to or

by an organization which:

a. is exempt from taxation pursuant to the provisions of

Section 501(c)(3) of the Internal Revenue Code of

1986, as amended, 26 U.S.C., Section 501(c)(3), and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 573

which provides and delivers prepared meals for home

consumption to elderly or homebound persons as part of

a program commonly known as “Meals on Wheels” or

“Mobile Meals”, or

b. is exempt from taxation pursuant to the provisions of

Section 501(c)(3) of the Internal Revenue Code of

1986, as amended, 26 U.S.C., Section 501(c)(3), and

which receives federal funding pursuant to the Older

Americans Act of 1965, as amended, for the purpose of

providing nutrition programs for the care and benefit

of elderly persons;

14. a. Sales of tangible personal property or services to or

by organizations which are exempt from taxation

pursuant to the provisions of Section 501(c)(3) of the

Internal Revenue Code of 1986, as amended, 26 U.S.C.,

Section 501(c)(3), and:

(1) are primarily involved in the collection and

distribution of food and other household products

to other organizations that facilitate the

distribution of such products to the needy and

such distributee organizations are exempt from

taxation pursuant to the provisions of Section

501(c)(3) of the Internal Revenue Code of 1986,

as amended, 26 U.S.C., Section 501(c)(3), or

(2) facilitate the distribution of such products to

the needy.

b. Sales made in the course of business for profit or

savings, competing with other persons engaged in the

same or similar business shall not be exempt under

this paragraph;

15. Sales of tangible personal property or services to

children’s homes which are located on church-owned property and are

operated by organizations exempt from taxation pursuant to the

provisions of the Internal Revenue Code of 1986, as amended, 26

U.S.C., Section 501(c)(3);

16. Sales of computers, data processing equipment, related

peripherals, and telephone, telegraph or telecommunications service

and equipment for use in a qualified aircraft maintenance or

manufacturing facility. For purposes of this paragraph, “qualified

aircraft maintenance or manufacturing facility” means a new or

expanding facility primarily engaged in aircraft repair, building or

rebuilding, whether or not on a factory basis, whose total cost of

construction exceeds the sum of Five Million Dollars ($5,000,000.00)

and which employs at least two hundred fifty new full-time-

equivalent employees, as certified by the Oklahoma Employment

Security Commission, upon completion of the facility. In order to

qualify for the exemption provided for by this paragraph, the cost

Oklahoma Statutes - Title 68. Revenue and Taxation Page 574

of the items purchased by the qualified aircraft maintenance or

manufacturing facility shall equal or exceed the sum of Two Million

Dollars ($2,000,000.00);

17. Sales of tangible personal property consumed or

incorporated in the construction or expansion of a qualified

aircraft maintenance or manufacturing facility as defined in

paragraph 16 of this section. For purposes of this paragraph, sales

made to a contractor or subcontractor that has previously entered

into a contractual relationship with a qualified aircraft

maintenance or manufacturing facility for construction or expansion

of such a facility shall be considered sales made to a qualified

aircraft maintenance or manufacturing facility;

18. Sales of the following telecommunications services:

a. interstate and international 800 service. “800

service” means a telecommunications service that

allows a caller to dial a toll-free number without

incurring a charge for the call. The service is

typically marketed under the name “800”, “855”, “866”,

“877” and “888” toll-free calling, and any subsequent

numbers designated by the Federal Communications

Commission,

b. interstate and international 900 service. “900

service” means an inbound toll telecommunications

service purchased by a subscriber that allows the

subscriber’s customers to call in to the subscriber’s

prerecorded announcement or live service. 900 service

does not include the charge for: collection services

provided by the seller of the telecommunications

services to the subscriber, or service or product sold

by the subscriber to the subscriber’s customer. The

service is typically marketed under the name “900”

service, and any subsequent numbers designated by the

Federal Communications Commission,

c. interstate and international private communications

service. “Private communications service” means a

telecommunications service that entitles the customer

to exclusive or priority use of a communications

channel or group of channels between or among

termination points, regardless of the manner in which

such channel or channels are connected, and includes

switching capacity, extension lines, stations and any

other associated services that are provided in

connection with the use of such channel or channels,

d. value-added nonvoice data service. “Value-added

nonvoice data service” means a service that otherwise

meets the definition of telecommunications services in

which computer processing applications are used to act

Oklahoma Statutes - Title 68. Revenue and Taxation Page 575

on the form, content, code or protocol of the

information or data primarily for a purpose other than

transmission, conveyance, or routing,

e. interstate and international telecommunications

service which is:

(1) rendered by a company for private use within its

organization, or

(2) used, allocated or distributed by a company to

its affiliated group,

f. regulatory assessments and charges including charges

to fund the Oklahoma Universal Service Fund, the

Oklahoma Lifeline Fund and the Oklahoma High Cost

Fund, and

g. telecommunications nonrecurring charges including but

not limited to the installation, connection, change,

or initiation of telecommunications services which are

not associated with a retail consumer sale;

19. Sales of railroad track spikes manufactured and sold for

use in this state in the construction or repair of railroad tracks,

switches, sidings, and turnouts;

20. Sales of aircraft and aircraft parts provided such sales

occur at a qualified aircraft maintenance facility. As used in this

paragraph, “qualified aircraft maintenance facility” means a

facility operated by an air common carrier including one or more

component overhaul support buildings or structures in an area owned,

leased, or controlled by the air common carrier, at which there were

employed at least two thousand full-time-equivalent employees in the

preceding year as certified by the Oklahoma Employment Security

Commission and which is primarily related to the fabrication,

repair, alteration, modification, refurbishing, maintenance,

building, or rebuilding of commercial aircraft or aircraft parts

used in air common carriage. For purposes of this paragraph, “air

common carrier” shall also include members of an affiliated group as

defined by Section 1504 of the Internal Revenue Code of 1986, as

amended, 26 U.S.C., Section 1504. Beginning July 1, 2012, the

exemption shall include sales of machinery, tools, supplies,

equipment, and related tangible personal property and services used

or consumed in the repair, remodeling, or maintenance of aircraft,

aircraft engines or aircraft component parts which occur at a

qualified aircraft maintenance facility;

21. Sales of machinery and equipment purchased and used by

persons and establishments primarily engaged in computer services

and data processing:

a. as defined under Industry Group Numbers 7372 and 7373

of the Standard Industrial Classification (SIC)

Manual, latest version, which derive at least fifty

percent (50%) of their annual gross revenues from the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 576

sale of a product or service to an out-of-state buyer

or consumer, and

b. as defined under Industry Group Number 7374 of the SIC

Manual, latest version, which derive at least eighty

percent (80%) of their annual gross revenues from the

sale of a product or service to an out-of-state buyer

or consumer.

Eligibility for the exemption set out in this paragraph shall be

established, subject to review by the Tax Commission, by annually

filing an affidavit with the Tax Commission stating that the

facility so qualifies and such information as required by the Tax

Commission. For purposes of determining whether annual gross

revenues are derived from sales to out-of-state buyers or consumers,

all sales to the federal government shall be considered to be to an

out-of-state buyer or consumer;

22. Sales of prosthetic devices to an individual for use by

such individual. For purposes of this paragraph, “prosthetic

device” shall have the same meaning as provided in Section 1357.6 of

this title, but shall not include corrective eye glasses, contact

lenses, or hearing aids;

23. Sales of tangible personal property or services to a motion

picture or television production company to be used or consumed in

connection with an eligible production. For purposes of this

paragraph, “eligible production” means a documentary, special, music

video or a television commercial or television program that will

serve as a pilot for or be a segment of an ongoing dramatic or

situation comedy series filmed or taped for network or national or

regional syndication or a feature-length motion picture intended for

theatrical release or for network or national or regional

syndication or broadcast. The provisions of this paragraph shall

apply to sales occurring on or after July 1, 1996. In order to

qualify for the exemption, the motion picture or television

production company shall file any documentation and information

required to be submitted pursuant to rules promulgated by the Tax

Commission;

24. Sales of diesel fuel sold for consumption by commercial

vessels, barges and other commercial watercraft;

25. Sales of tangible personal property or services to tax-

exempt independent nonprofit biomedical research foundations that

provide educational programs for Oklahoma science students and

teachers and to tax-exempt independent nonprofit community blood

banks headquartered in this state;

26. Effective May 6, 1992, sales of wireless telecommunications

equipment to a vendor who subsequently transfers the equipment at no

charge or for a discounted charge to a consumer as part of a

promotional package or as an inducement to commence or continue a

contract for wireless telecommunications services;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 577

27. Effective January 1, 1991, leases of rail transportation

cars to haul coal to coal-fired plants located in this state which

generate electric power;

28. Beginning July 1, 2005, sales of aircraft engine repairs,

modification, and replacement parts, sales of aircraft frame repairs

and modification, aircraft interior modification, and paint, and

sales of services employed in the repair, modification, and

replacement of parts of aircraft engines, aircraft frame and

interior repair and modification, and paint;

29. Sales of materials and supplies to the owner or operator of

a ship, motor vessel, or barge that is used in interstate or

international commerce if the materials and supplies:

a. are loaded on the ship, motor vessel, or barge and

used in the maintenance and operation of the ship,

motor vessel, or barge, or

b. enter into and become component parts of the ship,

motor vessel, or barge;

30. Sales of tangible personal property made at estate sales at

which such property is offered for sale on the premises of the

former residence of the decedent by a person who is not required to

be licensed pursuant to the Transient Merchant Licensing Act, or who

is not otherwise required to obtain a sales tax permit for the sale

of such property pursuant to the provisions of Section 1364 of this

title; provided:

a. such sale or event may not be held for a period

exceeding three (3) consecutive days,

b. the sale must be conducted within six (6) months of

the date of death of the decedent, and

c. the exemption allowed by this paragraph shall not be

allowed for property that was not part of the

decedent’s estate;

31. Beginning January 1, 2004, sales of electricity and

associated delivery and transmission services, when sold exclusively

for use by an oil and gas operator for reservoir dewatering projects

and associated operations commencing on or after July 1, 2003, in

which the initial water-to-oil ratio is greater than or equal to

five-to-one water-to-oil, and such oil and gas development projects

have been classified by the Corporation Commission as a reservoir

dewatering unit;

32. Sales of prewritten computer software that is delivered

electronically. For purposes of this paragraph, “delivered

electronically” means delivered to the purchaser by means other than

tangible storage media;

33. Sales of modular dwelling units when built at a production

facility and moved in whole or in parts, to be assembled on-site,

and permanently affixed to the real property and used for

residential or commercial purposes. The exemption provided by this

Oklahoma Statutes - Title 68. Revenue and Taxation Page 578

paragraph shall equal forty-five percent (45%) of the total sales

price of the modular dwelling unit. For purposes of this paragraph,

“modular dwelling unit” means a structure that is not subject to the

motor vehicle excise tax imposed pursuant to Section 2103 of this

title;

34. Sales of tangible personal property or services to:

a. persons who are residents of Oklahoma and have been

honorably discharged from active service in any branch

of the Armed Forces of the United States or Oklahoma

National Guard and who have been certified by the

United States Department of Veterans Affairs or its

successor to be in receipt of disability compensation

at the one-hundred-percent rate and the disability

shall be permanent and have been sustained through

military action or accident or resulting from disease

contracted while in such active service and registered

with the veterans registry created by the Oklahoma

Department of Veterans Affairs, or

b. the surviving spouse of the person in subparagraph a

of this paragraph if the person is deceased and the

spouse has not remarried and the surviving spouse of a

person who is determined by the United States

Department of Defense or any branch of the United

States military to have died while in the line of duty

if the spouse has not remarried. Sales for the

benefit of an eligible person to a spouse of the

eligible person or to a member of the household in

which the eligible person resides and who is

authorized to make purchases on the person’s behalf,

when such eligible person is not present at the sale,

shall also be exempt for purposes of this paragraph.

The Oklahoma Tax Commission shall issue a separate

exemption card to a spouse of an eligible person or to

a member of the household in which the eligible person

resides who is authorized to make purchases on the

person’s behalf, if requested by the eligible person.

Sales qualifying for the exemption authorized by this

paragraph shall not exceed Twenty-five Thousand

Dollars ($25,000.00) per year per individual while the

disabled veteran is living. Sales qualifying for the

exemption authorized by this paragraph shall not

exceed One Thousand Dollars ($1,000.00) per year for

an unremarried surviving spouse. Upon request of the

Tax Commission, a person asserting or claiming the

exemption authorized by this paragraph shall provide a

statement, executed under oath, that the total sales

amounts for which the exemption is applicable have not

Oklahoma Statutes - Title 68. Revenue and Taxation Page 579

exceeded Twenty-five Thousand Dollars ($25,000.00) per

year per living disabled veteran or One Thousand

Dollars ($1,000.00) per year for an unremarried

surviving spouse. If the amount of such exempt sales

exceeds such amount, the sales tax in excess of the

authorized amount shall be treated as a direct sales

tax liability and may be recovered by the Tax

Commission in the same manner provided by law for

other taxes including penalty and interest. The Tax

Commission shall promulgate any rules necessary to

implement the provisions of this paragraph, which

shall include rules providing for the disclosure of

information about persons eligible for the exemption

authorized in this paragraph to the Oklahoma

Department of Veterans Affairs, as authorized in

Section 205 of this title. For purposes of the

exemption authorized by this subparagraph, if the

disability determination that would have been made

while the disabled veteran was still living is not

made final until after the death of the disabled

veteran, the exemption authorized by this subparagraph

may still be claimed by the surviving spouse;

35. Sales of electricity to the operator, specifically

designated by the Corporation Commission, of a spacing unit or lease

from which oil is produced or attempted to be produced using

enhanced recovery methods including, but not limited to, increased

pressure in a producing formation through the use of water or

saltwater if the electrical usage is associated with and necessary

for the operation of equipment required to inject or circulate

fluids in a producing formation for the purpose of forcing oil or

petroleum into a wellbore for eventual recovery and production from

the wellhead. In order to be eligible for the sales tax exemption

authorized by this paragraph, the total content of oil recovered

after the use of enhanced recovery methods shall not exceed one

percent (1%) by volume. The exemption authorized by this paragraph

shall be applicable only to the state sales tax rate and shall not

be applicable to any county or municipal sales tax rate;

36. Sales of intrastate charter and tour bus transportation.

As used in this paragraph, “intrastate charter and tour bus

transportation” means the transportation of persons from one

location in this state to another location in this state in a motor

vehicle which has been constructed in such a manner that it may

lawfully carry more than eighteen persons, and which is ordinarily

used or rented to carry persons for compensation. Provided, this

exemption shall not apply to regularly scheduled bus transportation

for the general public;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 580

37. Sales of vitamins, minerals, and dietary supplements by a

licensed chiropractor to a person who is the patient of such

chiropractor at the physical location where the chiropractor

provides chiropractic care or services to such patient. The

provisions of this paragraph shall not be applicable to any drug,

medicine, or substance for which a prescription by a licensed

physician is required;

38. Sales of goods, wares, merchandise, tangible personal

property, machinery, and equipment to a web search portal located in

this state which derives at least eighty percent (80%) of its annual

gross revenue from the sale of a product or service to an out-of-

state buyer or consumer. For purposes of this paragraph, “web

search portal” means an establishment classified under North

American Industry Classification System (NAICS) code 519130 which

operates websites that use a search engine to generate and maintain

extensive databases of Internet addresses and content in an easily

searchable format;

39. Sales of tangible personal property consumed or

incorporated in the construction or expansion of a facility for a

corporation organized under Section 437 et seq. of Title 18 of the

Oklahoma Statutes as a rural electric cooperative. For purposes of

this paragraph, sales made to a contractor or subcontractor that has

previously entered into a contractual relationship with a rural

electric cooperative for construction or expansion of a facility

shall be considered sales made to a rural electric cooperative;

40. Sales of tangible personal property or services to a

business primarily engaged in the repair of consumer electronic

goods including, but not limited to, cell phones, compact disc

players, personal computers, MP3 players, digital devices for the

storage and retrieval of information through hard-wired or wireless

computer or Internet connections, if the devices are sold to the

business by the original manufacturer of such devices and the

devices are repaired, refitted or refurbished for sale by the entity

qualifying for the exemption authorized by this paragraph directly

to retail consumers or if the devices are sold to another business

entity for sale to retail consumers;

41. On or after July 1, 2019, and prior to July 1, 2024, sales

or leases of rolling stock when sold or leased by the manufacturer,

regardless of whether the purchaser is a public services corporation

engaged in business as a common carrier of property or passengers by

railway, for use or consumption by a common carrier directly in the

rendition of public service. For purposes of this paragraph,

“rolling stock” means locomotives, autocars, and railroad cars and

“sales or leases” includes railroad car maintenance and retrofitting

of railroad cars for their further use only on the railways;

42. Sales of gold, silver, platinum, palladium or other bullion

items such as coins and bars and legal tender of any nation, which

Oklahoma Statutes - Title 68. Revenue and Taxation Page 581

legal tender is sold according to its value as precious metal or as

an investment. As used in the paragraph, “bullion” means any

precious metal including, but not limited to, gold, silver,

platinum, and palladium, that is in such a state or condition that

its value depends upon its precious metal content and not its form.

The exemption authorized by this paragraph shall not apply to

fabricated metals that have been processed or manufactured for

artistic use or as jewelry;

43. Recovery fees on the rental charge from any item of heavy

equipment property rental as provided for in Section 2807.11 of this

title; and

44. Sales of firearm safety devices and gun safety devices. As

used in this paragraph:

a. “firearm safety device” means a gun safe, gun case,

gun lock box, trigger lock, barrel lock, or other

device that is designed to be used to store a firearm

and that is designed to be unlocked only by means of a

key, combination, or other similar means, and

b. “gun safety device” means any integral device to be

equipped or installed on a firearm that permits a user

to program the firearm to operate only for specified

persons designated by the user through computerized

locking devices or other means integral to and

permanently part of the firearm.
Okla. Stat. tit. 68, § 68-24302.11 — OK Code / Title 68 / Section 68-24302.11
Renumbered as § 3407 of this title by Laws 1988, c
Status: in_force

162, § 162, eff. Jan. 1, 1992 and Laws 1991, c. 249, § 2, eff. Jan.

1, 1992.
Okla. Stat. tit. 68, § 68-1359 — OK Code / Title 68 / Section 68-1359
Exemptions – Manufacturing
Status: in_force

There are hereby specifically exempted from the tax levied by

Section 1350 et seq. of this title:

1. Sales of goods, wares, merchandise, tangible personal

property, machinery and equipment to a manufacturer for use in a

manufacturing operation. Goods, wares, merchandise, property,

machinery and equipment used in a nonmanufacturing activity or

process as set forth in paragraph 14 of Section 1352 of this title

shall not be eligible for the exemption provided for in this

subsection by virtue of the activity or process being performed in

conjunction with or integrated into a manufacturing operation.

For the purposes of this paragraph, sales made to any person,

firm or entity that has entered into a contractual relationship for

the construction and improvement of manufacturing goods, wares,

merchandise, property, machinery and equipment for use in a

manufacturing operation shall be considered sales made to a

manufacturer which is defined or classified in the North American

Industry Classification System (NAICS) Manual under Industry Group

No. 324110. Such purchase shall be evidenced by a copy of the sales

ticket or invoice to be retained by the vendor indicating that the

purchases are made for and on behalf of such manufacturer and set

out the name of such manufacturer as well as include a copy of the

Manufacturing Exemption Permit of the manufacturer. Any person who

wrongfully or erroneously certifies that purchases are being made on

behalf of such manufacturer or who otherwise violates this paragraph

shall be guilty of a misdemeanor and upon conviction thereof shall

be fined an amount equal to double the amount of sales tax involved

or incarcerated for not more than sixty (60) days or both;

2. Ethyl alcohol when sold and used for the purpose of blending

same with motor fuel on which motor fuel tax is levied by Section

500.4 of this title;

3. Sales of containers when sold to a person regularly engaged

in the business of reselling empty or filled containers or when

purchased for the purpose of packaging raw products of farm, garden,

or orchard for resale to the consumer or processor. This exemption

Oklahoma Statutes - Title 68. Revenue and Taxation Page 589

shall not apply to the sale of any containers used more than once

and which are ordinarily known as returnable containers, except

returnable soft drink bottles and the cartons, crates, pallets, and

containers used to transport returnable soft drink bottles. Each

and every transfer of title or possession of such returnable

containers in this state to any person who is not regularly engaged

in the business of selling, reselling or otherwise transferring

empty or filled containers shall be taxable under this Code.

Additionally, this exemption shall not apply to the sale of labels

or other materials delivered along with items sold but which are not

necessary or absolutely essential to the sale of the sold

merchandise;

4. Sales of or transfers of title to or possession of any

containers used or to be used more than once and which are

ordinarily known as returnable containers and which do or will

contain beverages or water for human consumption and the cartons,

crates, pallets, and containers used to transport such returnable

containers;

5. Sale of tangible personal property when sold by the

manufacturer to a person who transports it to a state other than

Oklahoma for immediate and exclusive use in a state other than

Oklahoma. Provided, no sales at a retail outlet shall qualify for

the exemption under this paragraph;

6. Machinery, equipment, fuels and chemicals or other materials

incorporated into and directly used or consumed in the process of

treatment to substantially reduce the volume or harmful properties

of hazardous waste at treatment facilities specifically permitted

pursuant to the Oklahoma Hazardous Waste Management Act and operated

at the place of waste generation, or facilities approved by the

Department of Environmental Quality for the cleanup of a site of

contamination. The term "hazardous" waste may include low-level

radioactive waste for the purpose of this paragraph;

7. Except as otherwise provided by subsection I of Section 3658

of this title pursuant to which the exemption authorized by this

paragraph may not be claimed, sales of tangible personal property to

a qualified manufacturer or distributor to be consumed or

incorporated in a new manufacturing or distribution facility or to

expand an existing manufacturing or distribution facility. For

purposes of this paragraph, sales made to a contractor or

subcontractor that has previously entered into a contractual

relationship with a qualified manufacturer or distributor for

construction or expansion of a manufacturing or distribution

facility shall be considered sales made to a qualified manufacturer

or distributor. For the purposes of this paragraph, "qualified

manufacturer or distributor" means:

a. any manufacturing enterprise whose total cost of

construction of a new or expanded facility exceeds the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 590

sum of Five Million Dollars ($5,000,000.00) and in

which at least one hundred (100) new full-time-

equivalent employees, as certified by the Oklahoma

Employment Security Commission, are added and

maintained for a period of at least thirty-six (36)

months as a direct result of the new or expanded

facility,

b. any manufacturing enterprise whose total cost of

construction of a new or expanded facility exceeds the

sum of Ten Million Dollars ($10,000,000.00) and the

combined cost of construction material, machinery,

equipment and other tangible personal property exempt

from sales tax under the provisions of this paragraph

exceeds the sum of Fifty Million Dollars

($50,000,000.00) and in which at least seventy-five

(75) new full-time-equivalent employees, as certified

by the Oklahoma Employment Security Commission, are

added and maintained for a period of at least thirty-

six (36) months as a direct result of the new or

expanded facility,

c. any manufacturing enterprise whose total cost of

construction of an expanded facility exceeds the sum

of Three Hundred Million Dollars ($300,000,000.00) and

in which the manufacturer has and maintains an average

employment level of at least one thousand seven

hundred fifty (1,750) full-time-equivalent employees,

as certified by the Employment Security Commission, or

d. any enterprise primarily engaged in the general

wholesale distribution of groceries defined or

classified in the North American Industry

Classification System (NAICS) Manual under Industry

Groups No. 4244 and 4245 and which has at least

seventy-five percent (75%) of its total sales to in-

state customers or buyers and whose total cost of

construction of a new or expanded facility exceeds the

sum of Forty Million Dollars ($40,000,000.00) with

such construction commencing on or after July 1, 2005,

and before December 31, 2005, and which at least fifty

new full-time-equivalent employees, as certified by

the Oklahoma Employment Security Commission, are added

and maintained for a period of at least thirty-six

(36) months as a direct result of the new or expanded

facility.

For purposes of this paragraph, the total cost of construction

shall include building and construction material and engineering and

architectural fees or charges directly associated with the

construction of a new or expanded facility. The total cost of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 591

construction shall not include attorney fees. For purposes of

subparagraph c of this paragraph, the total cost of construction

shall also include the cost of qualified depreciable property as

defined in Section 2357.4 of this title and labor services performed

in the construction of an expanded facility. For the purpose of

subparagraph d of this paragraph, the total cost of construction

shall also include the cost of all parking, security and dock

structures or facilities necessary to manage, process or secure

vehicles used to receive and/or distribute groceries through such a

facility. The employment requirement of this paragraph can be

satisfied by the employment of a portion of the required number of

new full-time-equivalent employees at a manufacturing or

distribution facility that is related to or supported by the new or

expanded manufacturing or distribution facility as long as both

facilities are owned by one person or business entity. For purposes

of this section, "manufacturing facility" shall mean building and

land improvements used in manufacturing as defined in Section 1352

of this title and shall also mean building and land improvements

used for the purpose of packing, repackaging, labeling or assembling

for distribution to market, products at least seventy percent (70%)

of which are made in Oklahoma by the same company but at an off-

site, in-state manufacturing or distribution facility or facilities.

It shall not include a retail outlet unless the retail outlet is

operated in conjunction with and on the same site or premises as the

manufacturing facility. Up to ten percent (10%) of the square feet

of a manufacturing or distribution facility building may be devoted

to office space used to provide clerical support for the

manufacturing operation. Such ten percent (10%) may be in a

separate building as long as it is part of the same contiguous tract

of property on which the manufacturing or distribution facility is

located. Only sales of tangible personal property made after June

1, 1988, shall be eligible for the exemption provided by this

paragraph. The exemption authorized pursuant to subparagraph d of

this paragraph shall only become effective when the governing body

of the municipality in which the enterprise is located approves a

resolution expressing the municipality's support for the

construction for such new or expanded facility. Upon approval by

the municipality, the municipality shall forward a copy of such

resolution to the Oklahoma Tax Commission;

8. Sales of tangible personal property purchased and used by a

licensed radio or television station in broadcasting. This

exemption shall not apply unless such machinery and equipment is

used directly in the manufacturing process, is necessary for the

proper production of a broadcast signal or is such that the failure

of the machinery or equipment to operate would cause broadcasting to

cease. This exemption begins with the equipment used in producing

live programming or the electronic equipment directly behind the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 592

satellite receiving dish or antenna, and ends with the transmission

of the broadcast signal from the broadcast antenna system. For

purposes of this paragraph, "proper production" shall include, but

not be limited to, machinery or equipment required by Federal

Communications Commission rules and regulations;

9. Sales of tangible personal property purchased or used by a

licensed cable television operator in cablecasting. This exemption

shall not apply unless such machinery and equipment is used directly

in the manufacturing process, is necessary for the proper production

of a cablecast signal or is such that the failure of the machinery

or equipment to operate would cause cablecasting to cease. This

exemption begins with the equipment used in producing local

programming or the electronic equipment behind the satellite

receiving dish, microwave tower or antenna, and ends with the

transmission of the signal from the cablecast head-end system. For

purposes of this paragraph, "proper production" shall include, but

not be limited to, machinery or equipment required by Federal

Communications Commission rules and regulations;

10. Sales of packaging materials for use in packing, shipping

or delivering tangible personal property for sale when sold to a

producer of agricultural products. This exemption shall not apply

to the sale of any packaging material which is ordinarily known as a

returnable container;

11. Sales of any pattern used in the process of manufacturing

iron, steel or other metal castings. The exemption provided by this

paragraph shall be applicable irrespective of ownership of the

pattern provided that such pattern is used in the commercial

production of metal castings;

12. Deposits or other charges made and which are subsequently

refunded for returnable cartons, crates, pallets, and containers

used to transport cement and cement products;

13. Beginning January 1, 1998, machinery, electricity, fuels,

explosives and materials, excluding chemicals, used in the mining of

coal in this state;

14. Deposits, rent or other charges made for returnable

cartons, crates, pallets, and containers used to transport mushrooms

or mushroom products from a farm for resale to the consumer or

processor;

15. Sales of tangible personal property and services used or

consumed in all phases of the extraction and manufacturing of

crushed stone and sand, including but not limited to site

preparation, dredging, overburden removal, explosive placement and

detonation, onsite material hauling and/or transfer, material

washing, screening and/or crushing, product weighing and site

reclamation;

16. Sale, use or consumption of paper stock and other raw

materials which are manufactured into commercial printed material in

Oklahoma Statutes - Title 68. Revenue and Taxation Page 593

this state primarily for use and delivery outside this state. For

the purposes of this section, "commercial printed material" shall

include magazines, catalogs, retail inserts and direct mail; and

17. Beginning on the effective date of this act and ending on

December 31, 2029, sales of machinery and equipment, including but

not limited to, servers and computers, racks, power distribution

units, cabling, switchgear, transformers, substations, software, and

network equipment, and electricity used for commercial mining of

digital assets purposes in a colocation facility.

For purposes of this paragraph:

a. "blockchain technology" means shared or distributed

data structures or digital ledgers governed by

consensus protocols and maintained by peer-to-peer

networks that:

(1) Store digital transactions, and

(2) Verify and secure transactions cryptographically,

b. "colocation facility" means a facility or facilities

located in this state and utilized in the commercial

mining of digital assets or in hosting persons engaged

in the commercial mining of digital assets through

utilization of the facility's infrastructure,

including servers and network hardware powered by

Internet bandwidth, electricity, and other services

generally required for such mining operations.

Provided, no facility shall qualify as a "colocation

facility" unless the facility has entered into a load

reduction agreement,

c. "commercial mining of digital assets" means the

process through which blockchain technology is used to

mine digital assets at a colocation facility,

d. "digital assets" means a type of virtual currency that

utilizes blockchain technology and that:

(1) can be digitally traded between users, or

(2) can be converted or exchanged for legal tender,

and

e. "load reduction agreement" means an agreement between

the customer and the local electric cooperative,

municipality, electric utility, or market operator

to temporarily reduce or curtail the customer's use of

electric power in order to respond to inclement

weather or other adverse conditions,

f. "mine" or "mining" means the process through which

blockchain transactions are verified and accepted by

adding the transactions to a blockchain ledger, which

involves solving complex and mathematical

cryptographic problems associated with a block

containing transaction data.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 594
Okla. Stat. tit. 68, § 68-229 — OK Code / Title 68 / Section 68-229
Refunds - Interest
Status: in_force

In case of any judgment rendered under any provision of law for

the filing of a suit and recovery of taxes erroneously paid, in

which judgment interest is allowed the taxpayer, said interest may

be paid from the appropriation herein made where there is no other

provision of law for paying same.
Okla. Stat. tit. 68, § 68-2877 — OK Code / Title 68 / Section 68-2877
Appeal from action by county assessor to county board of equalization - Hearing
Status: in_force

procedure - Record - Time and form of appeal – Failure to appear at hearing without advanceequalization - Hearing procedure - Record - Time and form of appeal

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1214

– Failure to appear at hearing without advance notice – Assessment

of costs.

A. Upon receipt of an appeal from action by the county assessor

on the form prescribed by the Oklahoma Tax Commission, the secretary

of the county board of equalization shall fix a date of hearing, at

which time said board shall be authorized and empowered to take

evidence pertinent to said appeal; and for that purpose, is

authorized to compel the attendance of witnesses and the production

of books, records, and papers by subpoena, and to confirm, correct,

or adjust the valuation of real or personal property or to cancel an

assessment of personal property added by the assessor not listed by

the taxpayer if the personal property is not subject to taxation or

if the taxpayer is not responsible for payment of ad valorem taxes

upon such property. The secretary of the board shall fix the dates

of the hearings provided for in this section in such a manner as to

ensure that the board is able to hear all complaints within the time

provided for by law. In any county with a population less than

three hundred thousand (300,000) according to the latest Federal

Decennial Census, the county board of equalization shall provide at

least three dates on which a taxpayer may personally appear and make

a presentation of evidence. At least ten (10) days shall intervene

between each such date. No final determination regarding valuation

protests shall be made by a county board of equalization until the

taxpayer shall have failed to appear for all three such dates. The

county board of equalization shall be required to follow the

procedures prescribed by the Ad Valorem Tax Code or administrative

rules and regulations promulgated pursuant to such Code governing

the valuation of real and personal property. The county board of

equalization shall not modify a valuation of real or personal

property as established by the county assessor unless such

modification is explained in writing upon a form prescribed by the

Oklahoma Tax Commission. The affidavits prescribed in paragraph 2

of subsection E of this section will be maintained by the county

board of equalization as part of the hearing record. Each decision

of the county board of equalization shall be explained in writing

upon a form prescribed by the Oklahoma Tax Commission. The county

board of equalization shall make a record of each proceeding

involving an appeal from action by the county assessor either in

transcribed or tape recorded form.

B. In all cases where the county assessor has, without giving

the notice required by law, increased the valuation of property as

listed by the taxpayer, and the taxpayer has knowledge of such

adjustment or addition, the taxpayer may at any time prior to the

adjournment of the board, file an appeal in the form and manner

provided for in Section 2876 of this title. Thereafter, the board

shall fix a date of hearing, notify the taxpayer, and conduct the

hearing as required by this section.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1215

C. The taxpayer or agent may appear at the scheduled hearing

either in person, by telephone or other electronic means, or by

affidavit.

D. If the taxpayer or agent fails to appear before the county

board of equalization at the scheduled hearing, unless advance

notification is given for the reason of absence, the county shall be

authorized to assess against the taxpayer the costs incurred by the

county in preparation for the scheduled hearing. If such costs are

assessed, payment of the costs shall be a prerequisite to the filing

of an appeal to the district court or Court of Tax Review. A

taxpayer that gives advance notification of their absence shall be

given the opportunity to reschedule the hearing date.

E. 1. In order to increase taxpayer transparency, a member of

the board of equalization shall not directly or indirectly

communicate with the county assessor or any deputy assessor or

designated agent on any matter relating to any pending appeal before

the board of equalization prior to the actual hearing.

2. Prior to the presentation of any evidence at a county board

of equalization hearing, each member of the board hearing the

protest must sign an affidavit stating the member is not in

violation of paragraph 1 of this subsection.

3. Prior to the presentation of any evidence at a county board

of equalization hearing, all parties to the proceeding must sign an

affidavit stating that the evidence being presented is true to the

best of their belief and knowledge.

4. The provisions of paragraph 1 of this subsection shall not

apply to a routine communication between the county assessor and the

board of equalization that relates to the administration of an

appraisal roll, including a communication made in connection with

the certification, correction, or collection of an account that is

not the subject of a pending appeal.

5. The affidavit required in paragraph 2 of this subsection

shall be in the following form: "My name is [insert name]. I have

not communicated with another person in violation of subsection E of

Section 2877 of Title 68 of the Oklahoma Statutes."

6. The affidavit required in paragraph 3 of this subsection

shall be in the following form: "My name is [insert name]. The

information I will present today is true and correct to the best of

my belief and knowledge."
Okla. Stat. tit. 68, § 68-500.63 — OK Code / Title 68 / Section 68-500.63
Sale of motor fuels by Indian tribes
Status: in_force

A. The Legislature hereby finds:

1. Some Indian tribes within the State of Oklahoma are engaged

in the retail sales of motor fuels at locations within their

sovereign territories;

2. Both Indian tribes and the government of the State of

Oklahoma impose motor fuel taxes;

3. By reason of the ruling of the United States Supreme Court

in "Oklahoma Tax Commission v. Chickasaw Nation", 115 S.Ct. 2214

(1995), the State of Oklahoma does not now collect state motor fuel

taxes on sales made by Indian tribes. The Legislature hereby

acknowledges that, as a matter of federal law, the existing law of

the state may not be used to levy or enforce taxes on certain sales

of motor fuel made by Indian tribes;

4. It is mutually beneficial to the State of Oklahoma and the

federally recognized Indian tribes of this state, exercising their

sovereign powers, to enter into contracts as set forth in subsection

B of this section, for the purpose of limiting litigation on the

issue of state government taxation of motor fuel sales made by

Indian tribes. It is in the interest of this state to resolve

disputes between the state and federally recognized Indian tribes on

this issue by entering into contracts under which the Indian tribes

are in part compensated for any tribal motor fuel tax revenues the

Indian tribes might lose by reason of the adoption and enforcement

of this act. Such mutually beneficial agreements allow both the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 315

State of Oklahoma and the Indian tribes to benefit from tax revenues

from sales of motor fuel on Indian country.

B. In lieu of the refund procedure provided in subsection E of

Section 14 of this act for the exemption provided for sales of motor

fuels by an Indian tribe to its tribal members as provided in

paragraph 10 of Section 10 of this act, an Indian tribe, on its

behalf and on behalf of its members, may elect to enter into a

contract with the State of Oklahoma as provided in subsection C of

this section.

C. The State of Oklahoma hereby makes the following offer to

all federally recognized Indian tribes within this state which, if

accepted, will constitute a contract between this state and the

accepting tribe or tribes:

1. The accepting tribe shall agree that it will not challenge

the constitutionality of this act or the application of this act to

motor fuel sales on Indian country in any court or tribunal and

shall include all state motor fuel taxes and assessments in the

price of its motor fuel sales, including but not limited to sales to

tribal members on tribal land. The accepting tribe shall agree as a

material term of its agreement to abide with all parts of this act

in its entirety and shall agree not to procure, or attempt to

procure, motor fuel for sale in Indian country on which the tax

imposed by this act has not been precollected as provided for

herein;

2. In consideration of this agreement by the tribe or tribes,

the State of Oklahoma, through the Oklahoma Tax Commission, shall

withhold a percentage of its motor fuel tax revenues, as specified

in paragraph 3 of this subsection, which shall be apportioned

quarterly to the accepting Indian tribes. The funds apportioned as

provided herein are deemed to be in lieu of tribal tax revenues that

the tribes would otherwise have collected on sales of motor fuels.

The first such apportionment shall be made not later than February

1, 1997, which shall be for motor fuels taxes received by the Tax

Commission during the last calendar quarter of 1996, and subsequent

apportionments shall be made no later than thirty (30) days after

the end of each calendar quarter thereafter. The first such

apportionment shall be made to all tribes which have elected and

accepted the terms of the contract specified in this subsection

before October 1, 1996. Any tribe electing and accepting the terms

of the contract specified in this subsection on or after October 1,

1996, shall be eligible to receive quarterly apportionments

beginning with the calendar quarter following such election;

3. The percentage of state motor fuel tax and assessment

revenues collected pursuant to the provisions of this act which

shall be withheld monthly and apportioned quarterly to accepting

Indian tribes shall be as follows:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 316

a. for the portion of the fiscal year beginning July 1,

1996, for which this act is effective, three percent

(3%),

b. for the fiscal year beginning July 1, 1997, four

percent (4%), and

c. for the fiscal year beginning July 1, 1998, and for

each fiscal year thereafter, four and one-half percent

(4 1/2%);

4. The funds withheld by the Oklahoma Tax Commission pursuant

to paragraph 3 of this subsection shall be apportioned quarterly to

each accepting Indian tribe as follows:

a. each accepting Indian tribe shall receive a base

quarterly sum of Six Thousand Two Hundred Fifty

Dollars ($6,250.00). If the gross state motor fuel

tax revenues collected do not exceed One Hundred

Million Dollars ($100,000,000.00) in any fiscal year,

the provisions of this subparagraph shall not be

applicable,

b. to those tribes who were engaged in the sales of motor

fuels during the fourth calendar quarter of the

calendar year 1996:

(1) for the fiscal year beginning July 1, 1996, an

amount equal to ten cents ($0.10) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(2) for the fiscal year beginning July 1, 1997, an

amount equal to eight cents ($0.08) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(3) for the fiscal year beginning July 1, 1998, an

amount equal to six cents ($0.06) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996,

(4) for the fiscal year beginning July 1, 1999, an

amount equal to four cents ($0.04) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996, and

(5) for the fiscal year beginning July 1, 2000, and

thereafter for the duration of the contract, an

amount equal to two cents ($0.02) per gallon of

motor fuels sold by such tribe during the fourth

calendar quarter of 1996, and

c. after determination of amounts to be apportioned

pursuant to subparagraphs a and b of this paragraph,

the remainder shall be apportioned according to the

proportion the accepting Indian tribe's total Oklahoma

Oklahoma Statutes - Title 68. Revenue and Taxation Page 317

resident membership bears to the total Oklahoma tribal

resident membership of all accepting Indian tribes;

5. The funds withheld by the Oklahoma Tax Commission and

apportioned quarterly pursuant to the provisions of this section

shall be used by the accepting tribe exclusively for tribal

government programs limited to highway and bridge construction,

health, education, corrections, and law enforcement;

6. In the event, at any time during a calendar quarter, an

accepting tribe selling motor fuel fails to procure, for whatever

reason, motor fuel for sale in Indian country on which the tax

imposed by this act has been precollected as provided in this act,

or fails, for whatever reason, to include all state motor fuel taxes

and assessments in the price of its motor fuels sales including, but

not limited to, sales to tribal members on Indian country, the tribe

shall not be eligible to receive an apportionment under this section

for that calendar quarter. In such instances, the Tax Commission

shall notify the tribe that its apportionment shall be withheld and

the reasons therefor. The tribe shall have six (6) months from the

date of issuance of the notice under this paragraph to file a legal

action contesting the decision of the state to withhold its

apportionment. The amount withheld from the tribe pursuant to the

provisions of this paragraph shall not be apportioned and shall be

withheld from all tribes until the expiration of the six-month

limitation period and during the pendency of any legal action filed

pursuant to this paragraph.

7. Each tribe shall provide to the Oklahoma Tax Commission an

audit of its tribal membership or citizenship rolls certified by a

certified public accountant showing the correct number of its

respective tribal members by blood, excluding members of bands,

tribal towns and other tribes or affiliates which may be included on

its rolls but who are ineligible for tribal services and benefits.

Only tribal members who reside within the State of Oklahoma shall be

included in the audit. Citizens of tribal towns, bands of Indians

and tribes who are also counted in the audits as members of another

tribe participating in the contract provided for in this section and

eligible to receive services from the tribe shall not be eligible to

also participate under this section. Any tribal member who is also

a member of another tribe may only be counted once for purposes of

determining tribal membership. Those tribes who were engaged in the

sales of motor fuels during the fourth calendar quarter of calendar

year 1996 shall also provide certified audited reports on or before

January 10, 1997, showing the quantity of motor fuels sold by them

during that period. For all tribes electing to accept the terms of

the contract specified in this subsection before October 1, 1996,

the membership audit report shall be submitted on or before October

1, 1996, and not later than July 1 of each year thereafter. The

information provided shall be the basis from which the Oklahoma Tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 318

Commission shall calculate the distribution of the funds withheld

pursuant to the provisions of this section. The State of Oklahoma

shall be absolved of any liability if the information submitted

pursuant to the provisions of this section is not correct. If such

information is not submitted by an accepting or participating tribe

by October 1, 1996, or in subsequent years by July 1, the Tax

Commission shall calculate the distribution of the funds on the

basis of the information previously submitted by that tribe.

Notwithstanding the provisions of Section 205 of Title 68 of the

Oklahoma Statutes, copies of the audits and reports shall be made

available to any requesting participating tribes;

8. Acceptance of the offer contained in this section shall be

made in writing to the Oklahoma Tax Commission, signed by the chief

executive officer of the tribal government, stating that the tribe

accepts, without condition, the terms of this section, and for the

sole purpose of resolving disputes arising out of a contract entered

into pursuant to the provisions of this section, the tribe waives

its immunity from suit and liability in state and federal court. In

addition, proof of adoption of an ordinance or resolution by the

governing body of the tribe accepting without condition the terms of

this section, and an effective waiver of its immunity, as specified

herein, shall be required. Notwithstanding the enactment of any

future legislation on this topic, the term of the contract created

by the acceptance of this offer shall extend through and include

fiscal year 2016 and shall be renewed for successive ten-year terms

unless a tribe notifies the State of Oklahoma of its intention not

to participate further or the State of Oklahoma notifies the tribe

of its intent not to participate further. Notification by the tribe

shall be made in the same manner as required by this paragraph for

acceptance of the offer to participate in the contract.

Notification by the state shall be made by the Governor in writing

to the tribe, and such notification shall be filed with the

Secretary of State;

9. The State of Oklahoma hereby waives its immunities from suit

granted by the Eleventh Amendment to the Constitution of the United

States for the sole purpose of resolving disputes arising out of a

contract entered into pursuant to the provisions of this section;

10. Both the State of Oklahoma and the accepting Indian tribe

recognize, respect and accept the fact that under applicable laws

each is a sovereign with dominion over their respective territories

and governments. By entering into this proposed intergovernmental

contractual relationship, neither the state nor the tribe has, in

any way, caused the other's sovereignty to be diminished;

11. Members of accepting tribes shall not be individually

eligible for the exemption provided in paragraph 10 of Section 10 of

this act. Apportionment of funds to accepting tribes pursuant to

the provisions of paragraph 4 of this subsection are in part in lieu

Oklahoma Statutes - Title 68. Revenue and Taxation Page 319

of the refunds to individual tribal members as provided in paragraph

10 of Section 10 of this act. Indian tribes shall continue to be

eligible for the tribal government exemption provided in paragraph 7

of Section 10 of this act;

12. A tribe accepting the offer contained in this section

agrees to hold the state harmless from suit by its individual tribal

members and further agrees that, if a final judgment is rendered

against the state pursuant to such a suit, that the tribe will

reimburse the state for the amount of any such judgment paid and any

costs incurred by the state pursuant to such suit. If a tribe fails

to make such reimbursement within ninety (90) days of demand by the

Oklahoma Tax Commission, the state shall withhold such amount from

the apportionment of funds to the tribe pursuant to the provisions

of paragraph 4 of this subsection; and

13. A tribe accepting the offer contained in this section

agrees not to license or otherwise authorize an individual tribal

member or other person or entity to make sales of motor fuel in

violation of the terms of the contract.
Okla. Stat. tit. 68, § 68-1501 — OK Code / Title 68 / Section 68-1501
Definitions
Status: in_force

As used in Sections 1501 through 1512 of this title:

1. "Person" means any individual, partnership, association,

limited liability company or corporation;

2. "Music device" means any and all mechanical devices which

render, cause to sound or release music where the same may be heard

by one or more public patrons, and each separate loudspeaker,

phonograph, juke box or outlet from which such music emits shall

each be construed to be a separate "music device" as herein defined;

except in the case where the music emits from more than one speaker

transmitting from the same music-producing mechanism, in which case

the several outlets or speakers in each place of business shall be

collectively considered one such music device;

3. "Coin-operated music device" means any such music device

which is operated, motivated, released or played by or upon the

payment or insertion of a coin, token or similar object, whether

there is one or more boxes or devices in the premises for the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 675

reception of such coin, tokens or similar objects; coin-operated

radio or television receiving sets in hotels, motels or tourist

cabins for the use and benefit of the guests and visitors of such

hotels, motels or tourist rooms or cabins shall be included in such

definition;

4. "Coin-operated amusement device" means any and all

nongambling mechanical or electronic machines which, upon the

payment or insertion of a coin, token or similar object, provide

music, amusement or entertainment including, but not limited to,

such games as pool, phonographs, video television, shooting

galleries, pinball, foosball, bowling, shuffle board or any other

amusement device with or without a replay feature which can be

legally shipped interstate according to federal law;

5. "Coin-operated vending device" means any and all machines or

devices which, upon the payment or insertion of a coin, token or

similar object, dispenses tangible personal property, including but

not limited to cigarettes, candies, gum, cold drinks, hot drinks,

sandwiches or chips. It shall not mean vending machines or devices

used exclusively for the purpose of selling services, such as pay

telephone booths, parking meters, gas and electric meters or other

distribution of needful service;

6. "Coin-operated bulk vending device" means a machine or

device which, upon the payment or insertion of a coin, token or

similar object dispenses to the purchaser ballpoint pens, combs,

cigarette lighters, prophylactics, filled capsules, peanuts, gum

balls, mints, perfume or novelties; and

7. "Coin-operated devices" means coin-operated music devices,

coin-operated amusement devices, coin-operated vending devices and

coin-operated bulk vending devices. Coin-operated devices shall not

include any device dispensing tangible personal property or

providing amusement where payment is made solely through the use of

a credit or debit card or other electronic or digital payment

process.
Okla. Stat. tit. 68, § 68-1024 — OK Code / Title 68 / Section 68-1024
Release of information - Costs - Civil and criminal
Status: in_force

liability - Disposition of funds - Examination of records and files

- Construction with other sections.

A. The Tax Commission may release to any person the volume of

production, during any specified available period of time, of any

substance taxable pursuant to the provisions of this article from

any lease lawfully plugged, pursuant to the laws of this state after

certification of the plugging by the Oklahoma Corporation

Commission.

B. The Tax Commission may release the lease name, legal

description, Oklahoma Tax Commission assigned production unit number

for any lease or unit in this state and the Oklahoma Tax Commission

assigned purchaser or producer reporting number and purchaser or

producer name to any person.

C. The Tax Commission may release the volume of production,

producing formation and well classification, active or inactive, on

a lease by lease basis to any person.

D. The Tax Commission shall release information provided in the

Reclaimer's and Transporters Monthly Tax Report of Lease Production

Stored and Sold, OTC Form 323A-7-81, or any form succeeding this

form, to any person.

E. The Tax Commission shall release the following information

to any person executing an affidavit, under penalty of perjury,

declaring that they are an interest owner in the well, lease or unit

for which the information is requested:

1. The gross, exempt and net volumes and values of production,

tax reimbursements, additional values and taxes remitted thereon,

during any available period of time of any substance taxable

pursuant to the provisions of this article or the Petroleum Excise

Tax of this state.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 406

2. The lease name, legal description, industry or company well

or lease unique number, Oklahoma Tax Commission assigned production

unit number for any lease or unit in this state and the Oklahoma Tax

Commission assigned purchaser or producer reporting number and

purchaser or producer name.

3. The producing formation and well classification, active or

inactive, on a lease by lease basis and if available, on a well by

well basis, and British Thermal Unit content, NGPA classification,

gas code, gravity, tier, category and oil class.

F. It is specifically provided that:

1. The Tax Commission shall establish a schedule of costs for

the furnishing of the information in accordance with the provisions

of subsections A and B of this section and shall collect such costs;

2. No civil or criminal liability shall attach to any member of

the Tax Commission, or to any agents, servants, or employees of the

Tax Commission for any error or omission in the preparation and

publication of the requested information;

3. No costs shall be charged to the Oklahoma Corporation

Commission Oil and Gas Conservation Division or Energy Conservation

Services Division or to the Oklahoma Geological Survey for

examination of the files and records of the Tax Commission; and

4. All funds collected pursuant to the provisions of this

section shall be paid to the State Treasury and deposited to the

credit of the Tax Commission Revolving Fund.

G. In addition to the information which may be released

pursuant to subsections A, B and C of this section, a duly

authorized agent of the Oklahoma Corporation Commission Oil and Gas

Conservation Division or Energy Conservation Services Division or of

the Oklahoma Geological Survey may examine necessary records and

files of the Tax Commission relating to the gross production tax for

the purpose of estimating or forecasting reserves or production of

oil or gas. Such examination shall be limited to information of

volume of production, producing formation and well classification,

active or inactive, on a lease by lease basis.

H. A duly authorized agent of the Commissioners of the Land

Office may examine necessary records and files of the Tax Commission

relating to the gross production tax for the purpose of determining

the amount of erroneous payment of gross production tax made to the

Oklahoma Tax Commission after January 1, 1978.

I. The provisions of this section shall be exceptions to the

provisions of Sections 205 and 205.1 of this title and those

sections shall be strictly construed against the disclosure of any

other information contained in the records and files of the Tax

Commission except as otherwise provided by law.

J. Any violation of the provisions of this section shall

constitute a misdemeanor and shall be punishable as provided for in

Section 205 of this title.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 407
Okla. Stat. tit. 68, § 68-2841 — OK Code / Title 68 / Section 68-2841
Land list
Status: in_force

Each county assessor in the state shall prepare and keep a book

to be known as a "land list", which shall contain:

1. The name of the owner and a description, sufficient for

identification of all real estate in the county, with the number of

acres and value of the land and the value of the improvements;

2. The number of the lot or lots;

3. The name of the city or town;

4. The value of the city or town lots; and

5. The value of the improvements.

Provided, in those counties in this state which have approved an

exemption of household goods of the heads of families and livestock

employed in support of the family from ad valorem taxation pursuant

to the provisions of subsection (b) of Section 6 of Article X of the

Oklahoma Constitution, the county assessor may, in preparation of

the land list, combine the value of land and improvements thereon.

The county assessor shall correct the land list each year before

commencing the assessment by noting thereon all transfers of record

as shown by the office of county clerk, and shall note thereon such

transfers as may be brought to the attention of the assessor while

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1176

assessing, and also note thereon what real estate is not subject to

taxation and the reason therefor. The land list shall be in such

form as may be acceptable to the Oklahoma Tax Commission.