Okla. Stat. tit. 68, § 68-3952 — OK Code / Title 68 / Section 68-3952
Filing of claims — Verification process
Status: in_force

A. As soon as practicable after the end of the first complete

calendar quarter following the start date, the establishment or

entity shall file a claim for the payment with the Oklahoma Tax

Commission and shall specify the actual number and gross payroll of

sports-league jobs for the establishment or entity for the calendar

quarter. The Tax Commission shall verify the actual gross payroll

for sports-league jobs for the establishment for such calendar

quarter. If the Tax Commission is not able to provide verification

utilizing all available resources, the Tax Commission may request

additional information from the establishment or entity as may be

necessary or may request the establishment to revise its claim. An

establishment or entity may file for an extension of the initial

filing date with the Oklahoma Department of Commerce. Any such

extension shall be based solely upon an extraordinary adverse

business circumstance which prevented the establishment or entity

from hiring the sports-league jobs as projected. If an

establishment or entity fails to file claims as required by this

section, it shall forfeit the right to receive any rebate payments

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1473

after one (1) year from the start date. If an establishment or

entity has filed at least one claim pursuant to this section but

fails to file another claim within two (2) years of the most recent

claim, the Tax Commission, after consulting with the Oklahoma

Department of Commerce, may dismiss the establishment from the

program, forfeiting the right of the establishment or entity to

receive rebate payments based on that contract.

B. If the actual verified gross payroll for four (4)

consecutive calendar quarters does not equal or exceed the

applicable total required by this act within three (3) years of the

start date, or does not equal or exceed the applicable total

required by Section 3604 of Title 68 of the Oklahoma Statutes at any

other time during the entire period after the start date for

establishments defined or classified in the NAICS Manual under U.S.

Industry No. 711211 (2007 version) and which are a professional

sports team from one of the five major sports leagues (NFL, NBA,

NHL, MLB, and MLS), the rebate payments shall not be made and shall

not be resumed until such time as the actual verified gross payroll

equals or exceeds the applicable amounts specified in Section 3604

of Title 68 of the Oklahoma Statutes. If an establishment fails to

achieve the required gross payroll within three (3) years of the

start date, the establishment shall not make a new or renewal

application for rebate payments authorized pursuant to the Oklahoma

Five Major Sports Leagues Rebate Program Act for a period of twelve

(12) months from the last day of the last month of the three-year

period during which the required gross payroll amount was not

achieved.

C. In no event shall rebate payments cumulatively exceed the

estimated net direct state benefits or Ten Million Dollars

($10,000,000.00) in four (4) consecutive quarters.

D. As soon as practicable after verification of the actual

gross payroll as required by this section, the Tax Commission shall

issue a warrant to the establishment in the amount of the net

benefit rate multiplied by the actual gross payroll as determined

pursuant to subsection A of this section for the calendar quarter.
Okla. Stat. tit. 68, § 68-1358 — OK Code / Title 68 / Section 68-1358
Exemptions - Agriculture
Status: in_force

Exemptions – Agriculture.

A. There are hereby specifically exempted from the tax levied

by Section 1350 et seq. of this title:

1. Sales of agricultural products produced in this state by the

producer thereof directly to the consumer or user when such articles

Oklahoma Statutes - Title 68. Revenue and Taxation Page 583

are sold at or from a farm and not from some other place of

business, as follows:

a. farm, orchard or garden products, and

b. dairy products sold by a dairy producer or farmer who

owns all the cows from which the dairy products

offered for sale are produced;

provided, the provisions of this paragraph shall not be construed as

exempting sales by florists, nursery operators or chicken

hatcheries, or sales of dairy products by any other business except

as set out herein;

2. Livestock, including cattle, horses, mules or other domestic

or draft animals, sold by the producer by private treaty or at a

special livestock sale;

3. Sale of baby chicks, turkey poults and starter pullets used

in the commercial production of chickens, turkeys and eggs, provided

that the purchaser certifies, in writing, on the copy of the invoice

or sales ticket to be retained by the vendor that the pullets will

be used primarily for egg production;

4. Sale of salt, grains, tankage, oyster shells, mineral

supplements, limestone and other generally recognized animal feeds

for the following purposes and subject to the following limitations:

a. feed which is fed to poultry and livestock, including

breeding stock and wool-bearing stock, for the purpose

of producing eggs, poultry, milk or meat for human

consumption,

b. feed purchased in Oklahoma for the purpose of being

fed to and which is fed by the purchaser to horses,

mules or other domestic or draft animals used directly

in the producing and marketing of agricultural

products, and

c. any stock tonics, water purifying products, stock

sprays, disinfectants or other such agricultural

supplies.

“Poultry” shall not be construed to include any fowl other than

domestic fowl kept and raised for the market or production of eggs.

“Livestock” shall not be construed to include any pet animals such

as dogs, cats, birds or such other fur-bearing animals. This

exemption shall only be granted and extended where the purchaser of

feed that is to be used and in fact is used for a purpose that would

bring about an exemption hereunder executes an invoice or sales

ticket in duplicate on a form to be prescribed by the Oklahoma Tax

Commission. The purchaser may demand and receive a copy of the

invoice or sales ticket and the vendor shall retain a copy;

5. Sales of items to be and in fact used in the production of

agricultural products. Sale of the following items shall be subject

to the following limitations:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 584

a. sales of agricultural fertilizer to any person

regularly engaged, for profit, in the business of

farming or ranching,

b. sales of agricultural fertilizer to any person engaged

in the business of applying such materials on a

contract or custom basis to land owned or leased and

operated by persons regularly engaged, for profit, in

the business of farming or ranching. In addition to

providing the vendor proof of eligibility as provided

in Section 1358.1 of this title, the purchaser shall

provide the name or names of such owner or lessee and

operator and the location of the lands on which said

materials are to be applied to each such land,

c. sales of agricultural fertilizer, pharmaceuticals and

biologicals to persons engaged in the business of

applying such materials on a contract or custom basis

shall not be considered to be sales to contractors

under this article, and said sales shall not be

considered to be taxable sales within the meaning of

the Oklahoma Sales Tax Code. As used in this section,

"agricultural fertilizer", "pharmaceuticals" and

"biologicals" mean any substance sold and used for

soil enrichment or soil corrective purposes or for

promoting the growth and productivity of plants or

animals,

d. sales of agricultural seed or plants to any person

regularly engaged, for profit, in the business of

farming or ranching. This section shall not be

construed as exempting from sales tax, seed which is

packaged and sold for use in noncommercial flower and

vegetable gardens, and

e. sales of agricultural chemical pesticides to any

person regularly engaged, for profit, in the business

of farming or ranching. For the purposes of this

subparagraph, "agricultural chemical pesticides" shall

include any substance or mixture of substances

intended for preventing, destroying, repelling or

mitigating any insect, snail, slug, rodent, bird,

nematode, fungus, weed or any other form of

terrestrial or aquatic plant or animal life or virus,

bacteria or other microorganism, except viruses,

bacteria or other microorganisms on or in living man,

or any substance or mixture of substances intended for

use as a plant regulator, defoliant or desiccant.

The exemption provided in this paragraph shall only be granted

and extended to the purchaser where the items are to be used and in

fact are used in the production of agricultural products;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 585

6. Sale of farm machinery, repair parts thereto or fuel, oil,

lubricants and other substances used for operation and maintenance

of the farm machinery to be used directly on a farm or ranch in the

production, cultivation, planting, sowing, harvesting, processing,

spraying, preservation or irrigation of any livestock, poultry,

agricultural or dairy products produced from such lands. The

exemption specified in this paragraph shall apply to such farm

machinery, repair parts or fuel, oil, lubricants and other

substances used by persons engaged in the business of custom

production, cultivation, planting, sowing, harvesting, processing,

spraying, preservation, or irrigation of any livestock, poultry,

agricultural, or dairy products for farmers or ranchers. The

exemption provided for herein shall not apply to motor vehicles;

7. Sales of supplies, machinery and equipment to persons

regularly engaged in the business of raising evergreen trees for

retail sale in which such trees are cut down on the premises by the

consumer purchasing such tree. This exemption shall only be granted

and extended when the items in fact are used in the raising of such

evergreen trees; and

8. Sales of materials, supplies and equipment to an

agricultural permit holder or to any person with whom the permit

holder has contracted to construct facilities which are or which

will be used directly in the production of any livestock, including,

but not limited to, facilities used in the production and storage of

feed for livestock owned by the permit holder. Any person making

purchases on behalf of the agricultural permit holder shall certify,

in writing, on the copy of the invoice or sales ticket to be

retained by the vendor that the purchases are made for and on behalf

of such permit holder and set out the name and permit number of such

holder. Any person who wrongfully or erroneously certifies that

purchases are for an agricultural permit holder or who otherwise

violates this subsection shall be guilty of a misdemeanor and upon

conviction thereof shall be punishable by a fine of an amount equal

to double the amount of sales tax involved or imprisonment in the

county jail for not more than sixty (60) days or by both such fine

and imprisonment.

B. As used in this section and Section 1358.1 of this title:

1. “Agricultural products” shall include horses; and

2. “Ranching” or “ranch” shall include the business, or

facilities for the business, of raising horses.

Provided, sales of items at race meetings as defined in Section

200.1 of Title 3A of the Oklahoma Statutes shall not be exempt

pursuant to the provisions of this section and Section 1358.1 of

this title.
Okla. Stat. tit. 68, § 68-205.2 — OK Code / Title 68 / Section 68-205.2
Claims by state agencies, municipal courts, district
Status: in_force

courts, or public housing authorities against state income tax

refunds.

A. For purposes of this section, a “qualified entity” shall

mean a:

1. State agency;

2. Municipal court;

3. District court;

4. Public housing authority operating pursuant to Section 1062

of Title 63 of the Oklahoma Statutes;

5. District attorney seeking to collect unpaid court-ordered

monetary obligations; or

6. The designee of an entity described in paragraphs 1 through

5 of this subsection.

B. A qualified entity seeking to collect a debt, unpaid

municipal or district court fines and costs or final judgment of at

least Fifty Dollars ($50.00) from an individual who has filed a

state income tax return may file a claim with the Oklahoma Tax

Commission requesting that the amount owed to the qualified entity

be deducted from any state income tax refund due to that individual.

The claim shall be filed electronically in a form prescribed by the

Tax Commission and shall contain information necessary to identify

the person owing the debt, including the full name and Social

Security number of the debtor.

1. Upon receiving a claim from a qualified entity, the Tax

Commission shall deduct the claim amount, plus collection expenses

as provided in this section, from the tax refund due to the debtor

and transfer the amount to the qualified entity. Provided, the Tax

Oklahoma Statutes - Title 68. Revenue and Taxation Page 67

Commission need not report available funds of less than Fifty

Dollars ($50.00).

2. The qualified entity shall send notice to the debtor by

regular mail at the last-known address of the debtor as shown by the

records of the Tax Commission when seeking to collect a debt not

reduced to final judgment. The qualified entity shall send notice

to the judgment debtor or defendant by first-class mail at the last-

known address of the judgment debtor or defendant as shown by the

records of the Tax Commission when seeking to collect a final

judgment or unpaid court fines and costs. The Tax Commission shall

provide in an agreed electronic format to the Department of Human

Services the amount withheld by the Tax Commission, the home address

and the Social Security number of the taxpayer. The notice shall

state:

a. that a claim has been filed with the Tax Commission

for any portion of the tax refund due to the debtor or

defendant which would satisfy the debt, unpaid court

fines and costs, or final judgment in full or in part,

b. the basis for the claim,

c. that the Tax Commission has deducted an amount from

the refund and remitted it to such qualified entity,

d. that the debtor or defendant has the right to contest

the claim by sending a written request to the

qualified entity for a hearing to protest the claim,

and if the debtor or defendant fails to apply for a

hearing within sixty (60) days after the date of the

mailing of the notice, the debtor or defendant shall

be deemed to have waived his or her opportunity to

contest the claim. Provided, if the claim was filed

by the Department of Human Services, the notice shall

state that the debtor must contest the claim by

sending a written request to the Department within

thirty (30) days after the date of the mailing of the

notice, and

e. that a collection expense of five percent (5%) of the

gross proceeds owed to the qualified entity has been

charged to the debtor or defendant and withheld from

the refund.

3. If the qualified entity determines that a refund is due to

the taxpayer, the qualified entity shall reimburse the amount

claimed plus the five-percent collection expense to the taxpayer.

The qualified entity may request reimbursement of the two-percent

collection expense retained by the Tax Commission. Such request

must be made within ninety (90) days of reimbursement to the

taxpayer. If timely requested, the Tax Commission shall make such

reimbursement to the qualified entity within ninety (90) days of the

request.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 68

4. In the case of a joint return, the notice shall state:

a. the name of any taxpayer named in the return against

whom no debt, no unpaid court fines and costs, or

final judgment is claimed,

b. the fact that a debt, unpaid court fines and costs, or

final judgment is not claimed against the taxpayer,

c. the fact that the taxpayer is entitled to receive a

refund if it is due regardless of the debt, court

fines and costs, or final judgment asserted against

the debtor or defendant,

d. that in order to obtain the refund due, the taxpayer

must apply, in writing, for a hearing with the

qualified entity named in the notice within sixty (60)

days after the date of the mailing of the notice.

Provided, if the claim was filed by the Department of

Human Services, the notice shall state that the

taxpayer must apply, in writing, for a hearing with

the Department within thirty (30) days after the date

of the mailing of the notice, and

e. if the taxpayer against whom no debt, no unpaid court

fines and costs, or final judgment is claimed fails to

apply in writing for a hearing within sixty (60) days

after the mailing of the notice, the taxpayer shall

have waived his or her right to a refund. Provided,

if the claim was filed by the Department of Human

Services, the notice shall state that if the taxpayer

fails to apply in writing for a hearing with the

Department within thirty (30) days after the date of

the mailing of the notice, the taxpayer shall have

waived his or her right to a refund.

C. If the qualified entity asserting the claim receives a

written request for a hearing from the debtor or taxpayer against

whom no debt, no court fines and costs, or final judgment is

claimed, the qualified entity shall grant a hearing according to the

provisions of the Administrative Procedures Act. It shall be

determined at the hearing whether the claimed sum is correct or

whether an adjustment to the claim shall be made. Pending final

determination at the hearing of the validity of the debt, unpaid

court fines and costs, or final judgment asserted by the qualified

entity, no action shall be taken in furtherance of the collection of

the debt, unpaid court fines and costs, or final judgment. Appeals

from actions taken at the hearing shall be in accordance with the

provisions of the Administrative Procedures Act.

D. Upon final determination at a hearing, as provided for in

subsection C of this section, of the amount of the debt, unpaid

court fines and costs, or final judgment, or upon failure of the

debtor or taxpayer against whom no debt, no unpaid court fines and

Oklahoma Statutes - Title 68. Revenue and Taxation Page 69

costs, or final judgment is claimed to request such a hearing, the

qualified entity shall apply the amount of the claim to the debt

owed. Any amounts held by the qualified entity in excess of the

final determination of the debt and collection expense shall be

refunded by the qualified entity to the taxpayer. However, if the

tax refund due is inadequate to pay the collection expense and debt,

unpaid court fines and costs, or final judgment, the balance due the

qualified entity shall be a continuing debt or final judgment until

paid in full.

E. Upon receipt of a claim as provided in subsection A of this

section, the Tax Commission shall:

1. Deduct from the refund five percent (5%) of the gross

proceeds owed to the qualified entity, and distribute it by

retaining two percent (2%) and transferring three percent (3%) to

the qualified entity, as an expense of collection. The two percent

(2%) retained by the Tax Commission shall be deposited in the

Oklahoma Tax Commission Fund;

2. Transfer the amount of the claimed debt, unpaid court fines

and costs, or final judgment or so much thereof as is available to

the qualified entity;

3. Notify the debtor in writing as to how the refund was

applied; and

4. Refund to the debtor any balance remaining after deducting

the collection expense and debt, unpaid court fines and costs, or

final judgment.

F. The Tax Commission shall deduct from any state tax refund

due to a taxpayer the amount of delinquent state tax and penalty and

interest thereon, which such taxpayer owes pursuant to any state tax

law prior to payment of such refund.

G. The Tax Commission shall have first priority over all other

qualified entities when the Tax Commission is collecting a debt,

court fines and costs, or final judgment pursuant to the provisions

of this section. Subsequent to the Tax Commission priority, a claim

filed by the Department of Human Services for the collection of

child support and spousal support shall have priority over all other

claims filed pursuant to this section. Priority in multiple claims

by other qualified entities pursuant to the provisions of this

section shall be in the order in time in which the Tax Commission

receives the claim from the qualified entities required by the

provisions of subsection B of this section.

H. The Tax Commission shall prescribe or approve forms and

promulgate rules and regulations for implementing the provisions of

this section.

I. The information obtained by a qualified entity from the Tax

Commission pursuant to the provisions of this section shall be used

only to aid in collection of the debt, unpaid court fines and costs,

or final judgment owed to the qualified entity. Disclosure of the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 70

information for any other purpose shall constitute a misdemeanor.

Any employee of a qualified entity or person convicted of violating

this provision shall be subject to a fine not exceeding One Thousand

Dollars ($1,000.00) or imprisonment in the county jail for a term

not exceeding one (1) year, or both fine and imprisonment and, if

still employed by the qualified entity, shall be dismissed from

employment.

J. The Tax Commission may employ the procedures provided by

this section in order to collect a debt owed to the Internal Revenue

Service if the Internal Revenue Service requires such procedure as a

condition to providing information to the Commission concerning

federal income tax.

K. The provisions of this section shall not apply to claims

filed under the provisions of Section 2906 or Section 5011 of this

title or Section 28-101 of Title 70 of the Oklahoma Statutes.
Okla. Stat. tit. 68, § 68-1357v3 — OK Code / Title 68 / Section 68-1357v3
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

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 549

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

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 550

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;

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 551

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

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 552

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

(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,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 553

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.

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 554

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

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 555

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:

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; provided, that if the

veteran received the sales tax exemption prior to

November 1, 2020, he or she shall be required to

register with the veterans registry prior to July 1,

2023, in order to remain qualified, 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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 556

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. 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;

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 557

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;

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 558

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, 2029, sales

or leases of rolling stock, 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; and

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.
Okla. Stat. tit. 68, § 68-3645.5 — OK Code / Title 68 / Section 68-3645.5
Payment calculation
Status: in_force

A. Subject to the approval and ongoing review of the

eligibility application by the Oklahoma Department of Commerce, the

investment rebate payment authorized by this act shall be equal to

three and four-tenths percent (3.4%) of the cost of the qualified

capital expenditure in the year of expenditure; investment rebate

payments in the same amount shall be allowed in each of the four (4)

subsequent years, provided the Department has verified that the

establishment remains eligible for such payment in each successive

year based on the eligibility criteria of this act.

B. For the purpose of calculating the investment rebate payment

authorized in subsection A of this section, the "cost of the

qualified capital expenditure" shall include the cost of such

capital expenditure by the primary establishment and also the cost

of such capital expenditure by subsidiaries of the primary

establishment, provided such subsidiary is defined or classified in

the NAICS Manual under Industry Group No. 5132, 5222, or 5413.

C. The Oklahoma Department of Commerce is authorized to

conditionally pre-qualify and account for anticipated future

investment rebate payments. The Oklahoma Department of Commerce

shall not pre-qualify investment rebate payments, encumber funds,

pre-encumber funds, or otherwise allocate resources in any way that

would result in the allocation of investment rebate payments in

excess of the balance of available funds in the Large-scale Economic

Activity and Development Fund.
Okla. Stat. tit. 68, § 68-611 — OK Code / Title 68 / Section 68-611
Importation of motor fuel or diesel fuel without license -
Status: in_force

Tax payable - Credits - Refunds - Second and subsequent violations.

(a) Any person importing motor fuel or diesel fuel into this

state and liable for the tax levied by this article for the first

time who has not obtained a Motor Fuel/Diesel Fuel Importer for Use

License, shall, for the purpose of determining the number of gallons

of motor fuel or diesel fuel used on the highways of this state, be

required to pay to the Corporation Commission the tax levied by this

article on all motor fuel or diesel fuel contained in the fuel

supply tank or tanks, and any other containers for use in propelling

said vehicle. Upon obtaining a Motor Fuel/Diesel Fuel Importer for

Use License and filing a report showing all of the operations of

such person subject to tax by this article, credit shall be allowed

on said report for the tax paid under the provisions of this section

and any overpayment of tax shall be refunded or credited to a future

report. However, this credit shall not be allowed and no refund of

such tax shall be made unless the report taking the credit or the

claim for the refund is filed within thirty (30) days from the date

of payment of said tax.

(b) The second time any person imports motor fuel or diesel fuel

into this state and becomes liable for the tax levied by this

article, without having obtained a Motor Fuel/Diesel Fuel Importer

for Use License, the motor vehicle operated by such person may be

seized and held until such person complies with the provisions of

this article and pays all taxes determined to be due hereunder.

However, said motor vehicle may be released upon the making of a

bond or furnishing other security for the payment of the tax.
Okla. Stat. tit. 68, § 68-1407.4 — OK Code / Title 68 / Section 68-1407.4
Consumer Compliance Initiative
Status: in_force

A. For the purpose of encouraging the voluntary disclosure and

payment of use taxes owed to this state, the Oklahoma Tax Commission

is hereby authorized and directed to establish a Consumer Compliance

Initiative for consumers liable for payment of use taxes, as

provided in this section. A taxpayer shall be entitled to a waiver

of penalty, interest and other collection fees due if the taxpayer

voluntarily files delinquent tax returns and pays the taxes due

during the initiative.

B. No assessment of use tax levied under the provisions of

Section 1401 et seq. of Title 68 of the Oklahoma Statutes shall be

made for more than one (1) year prior to the date the consumer

registers to pay applicable use taxes under this initiative.

C. The relief provided herein shall not be available to a

consumer with respect to any matter or matters for which the

consumer received notice of the commencement of an audit and which

audit is not yet finally resolved including any related

administrative and judicial processes and is not available for use

taxes already paid or remitted to the state.

D. The Tax Commission shall promulgate rules detailing the

terms and other conditions of this program.

E. The Tax Commission shall develop and distribute a fact sheet

explaining responsibilities regarding the reporting and payment of

use taxes and how business entities can examine their records to

establish the use tax due on purchases from out-of-state sellers.

The Tax Commission shall make the fact sheet available on the

Oklahoma Tax Commission’s website, mail to targeted industries,

existing licensees, and all Tax Commission license applicants.

F. The Tax Commission is authorized to expend necessary

available funds, including contracting with third parties, to

publicly advertise the Consumer Compliance Initiative and shall be

exempt from the provisions of Section 85.7 of Title 74 of the

Oklahoma Statutes for the purpose of implementing this section.

G. To assist consumers in remitting use taxes due, the Tax

Commission shall develop and maintain an option for consumers to

remit use taxes through an Internet-based portal.
Okla. Stat. tit. 68, § 68-1357.11 — OK Code / Title 68 / Section 68-1357.11
Retail sales of food and food ingredients
Status: in_force

A. 1. On or after the effective date of this act, an excise

tax of zero percent (0%) is hereby imposed upon all retail sales of

food and food ingredients sold for human consumption off the

premises where sold.

2. Any sales tax or excise tax levied by a city, town, county,

or any other jurisdiction in this state upon sales of food and food

ingredients shall be in effect regardless of ordinance or

contractual provisions referring to previously imposed state sales

tax on the items.

B. The Oklahoma Tax Commission shall promulgate any necessary

rules to implement the provisions of this section in accordance with

the Streamlined Sales and Use Tax Agreement.
Okla. Stat. tit. 68, § 68-227 — OK Code / Title 68 / Section 68-227
Erroneous payments - Claims for refund - Demand for
Status: in_force

hearing.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 105

A. Except as provided in subsection B of Section 1361.2 and

subsection D of Section 1364.1 of this title, any taxpayer who has

paid to the State of Oklahoma, through error of fact, or

computation, or misinterpretation of law, any tax collected by the

Tax Commission may, as hereinafter provided, be refunded the amount

of such tax so erroneously paid, without interest.

B. 1. Except as otherwise provided by paragraph 2 of this

subsection, any taxpayer who has so paid any such tax may, within

three (3) years from the date of payment thereof file with the Tax

Commission a verified claim for refund of such tax so erroneously

paid. The Tax Commission may accept an amended withholding tax or

other report or return as a verified claim for refund if the amended

report or return establishes a liability less than the original

report or return previously filed.

2. Upon August 26, 2016, with respect to the sales tax imposed

by Section 1354 of this title and with respect to the use tax

imposed by Section 1402 of this title, any taxpayer who has so paid

such sales or use tax may, within two (2) years from the date of

payment thereof file with the Tax Commission a verified claim for

refund of such tax so erroneously paid. The Tax Commission may

accept an amended sales or use tax report or return as a verified

claim for refund if the amended report or return establishes a

liability less than the original report or return previously filed.

C. The claim so filed with the Tax Commission, except for an

amended report or return, shall specify the name of the taxpayer,

the time when and period for which the tax was paid, the nature and

kind of tax so paid, the amount of the tax which the taxpayer

claimed was erroneously paid, the grounds upon which a refund is

sought, and such other information or data relative to such payment

as may be necessary to an adjustment thereof by the Tax Commission.

It shall be the duty of the Commission to determine what amount of

refund, if any, is due as soon as practicable after such claim has

been filed and advise the taxpayer about the correctness of his

claim and the claim for refund shall be approved or denied by

written notice to the taxpayer.

D. If the claim for refund is denied, the taxpayer may file a

demand for hearing with the Commission. The demand for hearing must

be filed on or before the sixtieth day after the date indicated on

the notice of denial. If the taxpayer fails to file a demand for

hearing, the claim for refund shall be barred.

E. Upon the taxpayer's timely filing of a demand for hearing,

the Commission shall set a date for hearing upon the claim for

refund which date shall not be later than sixty (60) days from the

date the demand for hearing was mailed. The taxpayer shall be

notified of the time and place of the hearing. The hearing may be

held after the sixty-day period provided by this subsection upon

agreement of the taxpayer.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 106

F. The provisions of this section shall not apply:

1. To refunds of income tax erroneously paid, refunds of which

tax shall be payable out of the income tax adjustment fund as

provided by law;

2. To estate tax because the payment of such tax is covered by

an order of the Tax Commission and the estate and interested parties

are given notice that Commission's position and computation of the

tax will become final unless they protest and resist the payment

thereof as provided by statute; nor

3. In any case where the tax was paid after an assessment

thereof was made by the Tax Commission which assessment became final

under the law.
Okla. Stat. tit. 68, § 68-2910 — OK Code / Title 68 / Section 68-2910
Persons 65 years of age or older or totally disabled
Status: in_force

person - Audit of claims - Hearing.

A. The Oklahoma Tax Commission shall, within a reasonable time

after receipt of a claim, audit said claim for correctness and

payment. If the Oklahoma Tax Commission determines the amount of a

claim to be incorrect or excessive, or the supporting proof to be

inadequate, or that the claim should be disallowed for any other

reason, it shall notify the claimant by mail of the correct amount,

if any, for which the claim can be allowed or the finding and

reasons for disallowance of the claim. The claimant may, within

thirty (30) days after the date the notice is mailed by the Oklahoma

Tax Commission, submit further or additional proof in support of his

claim or request an oral hearing before the Oklahoma Tax Commission.

B. Upon request for a hearing, the Oklahoma Tax Commission shall

notify claimant in writing of the date, place and time of the

hearing. The hearing date shall not be less than ten (10) days from

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1274

the date of mailing the written hearing notice to the claimant. Upon

examination of the claimant's additional proof or after the oral

hearing, the Oklahoma Tax Commission shall enter an order in

accordance with its findings. The order of the Oklahoma Tax

Commission shall be final.
Okla. Stat. tit. 68, § 68-1637 — OK Code / Title 68 / Section 68-1637
Issuance of license
Status: in_force

If an applicant for an outdoor display operator license complies

with the requirements of this act and the rules of the State Fire

Marshal, the State Fire Marshal shall issue the license within sixty

(60) days of receiving the application. The term of the license is

three (3) years from the date of issuance. Each license issued

shall contain a distinct number assigned to the particular operator.

The State Fire Marshal shall maintain a list of all licensed

operators. In this list, next to the operator's name, the State

Fire Marshal shall insert the period of licensure and the operator's

license number. The list of licensed operators shall be posted on

the State Fire Marshal’s website.
Okla. Stat. tit. 68, § 68-1356v2 — OK Code / Title 68 / Section 68-1356v2
Exemptions - Governmental and nonprofit entities
Status: in_force

Exemptions - Governmental and nonprofit entities.

There are hereby specifically exempted from the tax levied by

Section 1350 et seq. of this title:

1. Sales of tangible personal property or services to the

United States government or to the State of Oklahoma, any political

subdivision of this state or any agency of a political subdivision

of this state; provided, all sales to contractors in connection with

the performance of any contract with the United States government,

State of Oklahoma or any of its political subdivisions shall not be

exempted from the tax levied by Section 1350 et seq. of this title,

except as hereinafter provided;

2. Sales of property to agents appointed by or under contract

with agencies or instrumentalities of the United States government

if ownership and possession of such property transfers immediately

to the United States government;

3. Sales of property to agents appointed by or under contract

with a political subdivision of this state if the sale of such

property is associated with the development of a qualified federal

facility, as provided in the Oklahoma Federal Facilities Development

Act, and if ownership and possession of such property transfers

immediately to the political subdivision or the state;

4. Sales made directly by county, district or state fair

authorities of this state, upon the premises of the fair authority,

for the sole benefit of the fair authority or sales of admission

tickets to such fairs or fair events at any location in the state

authorized by county, district or state fair authorities; provided,

the exemption provided by this paragraph for admission tickets to

fair events shall apply only to any portion of the admission price

that is retained by or distributed to the fair authority. As used

in this paragraph, “fair event” shall be limited to an event held on

the premises of the fair authority in conjunction with and during

the time period of a county, district or state fair;

5. Sales of food in cafeterias or lunchrooms of elementary

schools, high schools, colleges or universities which are operated

primarily for teachers and pupils and are not operated primarily for

the public or for profit;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 497

6. Dues paid to fraternal, religious, civic, charitable or

educational societies or organizations by regular members thereof,

provided, such societies or organizations operate under what is

commonly termed the lodge plan or system, and provided such

societies or organizations do not operate for a profit which inures

to the benefit of any individual member or members thereof to the

exclusion of other members and dues paid monthly or annually to

privately owned scientific and educational libraries by members

sharing the use of services rendered by such libraries with students

interested in the study of geology, petroleum engineering or related

subjects;

7. Sales of tangible personal property or services to or by

churches, except sales made in the course of business for profit or

savings, competing with other persons engaged in the same or a

similar business or sales of tangible personal property or services

by an organization exempt from federal income tax pursuant to

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

made on behalf of or at the request of a church or churches if the

sale of such property is conducted not more than once each calendar

year for a period not to exceed three (3) days by the organization

and proceeds from the sale of such property are used by the church

or churches or by the organization for charitable purposes;

8. The amount of proceeds received from the sales of admission

tickets which is separately stated on the ticket of admission for

the repayment of money borrowed by any accredited state-supported

college or university or any public trust of which a county in this

state is the beneficiary, for the purpose of constructing or

enlarging any facility to be used for the staging of an athletic

event, a theatrical production, or any other form of entertainment,

edification or cultural cultivation to which entry is gained with a

paid admission ticket. Such facilities include, but are not limited

to, athletic fields, athletic stadiums, field houses, amphitheaters

and theaters. To be eligible for this sales tax exemption, the

amount separately stated on the admission ticket shall be a

surcharge which is imposed, collected and used for the sole purpose

of servicing or aiding in the servicing of debt incurred by the

college or university to effect the capital improvements

hereinbefore described;

9. Sales of tangible personal property or services to the

council organizations or similar state supervisory organizations of

the Boy Scouts of America, Girl Scouts of the U.S.A. and Camp Fire;

10. Sales of tangible personal property or services to any

county, municipality, rural water district, public school district,

city-county library system, the institutions of The Oklahoma State

System of Higher Education, the Grand River Dam Authority, the

Northeast Oklahoma Public Facilities Authority, the Oklahoma

Municipal Power Authority, City of Tulsa-Rogers County Port

Oklahoma Statutes - Title 68. Revenue and Taxation Page 498

Authority, Muskogee City-County Port Authority, the Oklahoma

Department of Veterans Affairs, the Broken Bow Economic Development

Authority, Ardmore Development Authority, Durant Industrial

Authority, Oklahoma Ordnance Works Authority, Central Oklahoma

Master Conservancy District, Arbuckle Master Conservancy District,

Fort Cobb Reservoir Master Conservancy District, Foss Reservoir

Master Conservancy District, Mountain Park Master Conservancy

District, Waurika Lake Master Conservancy District and the Office of

Management and Enterprise Services only when carrying out a public

construction contract on behalf of the Oklahoma Department of

Veterans Affairs, the Oklahoma State University Medical Authority

and Trust, the Oklahoma State University Veterinary Medicine

Authority and Trust, and effective July 1, 2022, the University

Hospitals Trust, or to any person with whom any of the above-named

subdivisions or agencies of this state has duly entered into a

public contract pursuant to law, necessary for carrying out such

public contract or to any subcontractor to such a public contract.

Any person making purchases on behalf of such subdivision or agency

of this state shall certify, in writing, on the copy of the invoice

or sales ticket to be retained by the vendor that the purchases are

made for and on behalf of such subdivision or agency of this state

and set out the name of such public subdivision or agency. Any

person who wrongfully or erroneously certifies that purchases are

for any of the above-named subdivisions or agencies of this state or

who otherwise violates this section 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;

11. Sales of tangible personal property or services to private

institutions of higher education and private elementary and

secondary institutions of education accredited by the State

Department of Education or registered by the State Board of

Education for purposes of participating in federal programs or

accredited as defined by the Oklahoma State Regents for Higher

Education which are exempt from taxation pursuant to the provisions

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

materials, supplies and equipment used in the construction and

improvement of buildings and other structures owned by the

institutions and operated for educational purposes.

Any person, firm, agency or entity making purchases on behalf of

any institution, agency or subdivision in this state, shall certify

in writing, on the copy of the invoice or sales ticket the nature of

the purchases, and violation of this paragraph shall be a

misdemeanor as set forth in paragraph 10 of this section;

12. Tuition and educational fees paid to private institutions

of higher education and private elementary and secondary

institutions of education accredited by the State Department of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 499

Education or registered by the State Board of Education for purposes

of participating in federal programs or accredited as defined by the

Oklahoma State Regents for Higher Education which are exempt from

taxation pursuant to the provisions of the Internal Revenue Code, 26

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

13. a. Sales of tangible personal property made by:

(1) a public school,

(2) a private school offering instruction for grade

levels kindergarten through twelfth grade,

(3) a public school district,

(4) a public or private school board,

(5) a public or private school student group or

organization,

(6) a parent-teacher association or organization

other than as specified in subparagraph b of this

paragraph, or

(7) public or private school personnel for purposes

of raising funds for the benefit of a public or

private school, public school district, public or

private school board or public or private school

student group or organization, or

b. Sales of tangible personal property made by or to

nonprofit parent-teacher associations or organizations

exempt from taxation pursuant to the provisions of the

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

nonprofit local public or private school foundations

which solicit money or property in the name of any

public or private school or public school district.

The exemption provided by this paragraph for sales made by a

public or private school shall be limited to those public or private

schools accredited by the State Department of Education or

registered by the State Board of Education for purposes of

participating in federal programs. Sales of tangible personal

property in this paragraph shall include sales of admission tickets

and concessions at athletic events;

14. Sales of tangible personal property by:

a. local 4-H clubs,

b. county, regional or state 4-H councils,

c. county, regional or state 4-H committees,

d. 4-H leader associations,

e. county, regional or state 4-H foundations, and

f. authorized 4-H camps and training centers.

The exemption provided by this paragraph shall be limited to

sales for the purpose of raising funds for the benefit of such

organizations. Sales of tangible personal property exempted by this

paragraph shall include sales of admission tickets;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 500

15. The first Seventy-five Thousand Dollars ($75,000.00) each

year from sales of tickets and concessions at athletic events by

each organization exempt from taxation pursuant to the provisions of

the Internal Revenue Code, 26 U.S.C., Section 501(c)(4);

16. Sales of tangible personal property or services to any

person with whom the Oklahoma Tourism and Recreation Department has

entered into a public contract and which is necessary for carrying

out such contract to assist the Department in the development and

production of advertising, promotion, publicity and public relations

programs;

17. Sales of tangible personal property or services to fire

departments organized pursuant to Section 592 of Title 18 of the

Oklahoma Statutes which items are to be used for the purposes of the

fire department. Any person making purchases on behalf of any such

fire department shall certify, in writing, on the copy of the

invoice or sales ticket to be retained by the vendor that the

purchases are made for and on behalf of such fire department and set

out the name of such fire department. Any person who wrongfully or

erroneously certifies that the purchases are for any such fire

department or who otherwise violates the provisions of this section

shall be deemed 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;

18. Complimentary or free tickets for admission to places of

amusement, sports, entertainment, exhibition, display or other

recreational events or activities which are issued through a box

office or other entity which is operated by a state institution of

higher education with institutional employees or by a municipality

with municipal employees;

19. The first Fifteen Thousand Dollars ($15,000.00) each year

from sales of tangible personal property by fire departments

organized pursuant to Titles 11, 18, or 19 of the Oklahoma Statutes

for the purposes of raising funds for the benefit of the fire

department. Fire departments selling tangible personal property for

the purposes of raising funds shall be limited to no more than six

(6) days each year to raise such funds in order to receive the

exemption granted by this paragraph;

20. Sales of tangible personal property or services to any Boys

& Girls Clubs of America affiliate in this state which is not

affiliated with the Salvation Army and which is exempt from taxation

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

Section 501(c)(3);

21. Sales of tangible personal property or services to any

organization, which takes court-adjudicated juveniles for purposes

of rehabilitation, and which is exempt from taxation pursuant to the

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

501(c)(3), provided that at least fifty percent (50%) of the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 501

juveniles served by such organization are court adjudicated and the

organization receives state funds in an amount less than ten percent

(10%) of the annual budget of the organization;

22. Sales of tangible personal property or services to:

a. any health center as defined in Section 254b of Title

42 of the United States Code,

b. any clinic receiving disbursements of state monies

from the Indigent Health Care Revolving Fund pursuant

to the provisions of Section 66 of Title 56 of the

Oklahoma Statutes,

c. any community-based health center which meets all of

the following criteria:

(1) provides primary care services at no cost to the

recipient, and

(2) 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

d. any community mental health center as defined in

Section 3-302 of Title 43A of the Oklahoma Statutes;

23. Dues or fees including free or complimentary dues or fees

which have a value equivalent to the charge that could have

otherwise been made to YMCAs, YWCAs or municipally-owned recreation

centers for the use of facilities and programs;

24. The first Fifteen Thousand Dollars ($15,000.00) each year

from sales of tangible personal property or services to or by a

cultural organization established to sponsor and promote

educational, charitable and cultural events for disadvantaged

children, and which organization is exempt from taxation pursuant to

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

501(c)(3);

25. Sales of tangible personal property or services to museums

or other entities which have been accredited by the American

Alliance of Museums. Any person making purchases on behalf of any

such museum or other entity shall certify, in writing, on the copy

of the invoice or sales ticket to be retained by the vendor that the

purchases are made for and on behalf of such museum or other entity

and set out the name of such museum or other entity. Any person who

wrongfully or erroneously certifies that the purchases are for any

such museum or other entity or who otherwise violates the provisions

of this paragraph shall be deemed 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 by both such fine and incarceration;

26. Sales of tickets for admission by any museum accredited by

the American Alliance of Museums. In order to be eligible for the

exemption provided by this paragraph, an amount equivalent to the

amount of the tax which would otherwise be required to be collected

Oklahoma Statutes - Title 68. Revenue and Taxation Page 502

pursuant to the provisions of Section 1350 et seq. of this title

shall be separately stated on the admission ticket and shall be

collected and used for the sole purpose of servicing or aiding in

the servicing of debt incurred by the museum to effect the

construction, enlarging or renovation of any facility to be used for

entertainment, edification or cultural cultivation to which entry is

gained with a paid admission ticket;

27. Sales of tangible personal property or services occurring

on or after June 1, 1995, to children’s homes which are supported or

sponsored by one or more churches, members of which serve as

trustees of the home;

28. Sales of tangible personal property or services to the

organization known as the Disabled American Veterans Department of

Oklahoma, and subordinate chapters thereof;

29. Sales of tangible personal property or services to youth

camps which are supported or sponsored by one or more churches,

members of which serve as trustees of the organization;

30. a. Until July 1, 2022, transfer of tangible personal

property made pursuant to Section 3226 of Title 63 of

the Oklahoma Statutes by the University Hospitals

Trust, and

b. Effective July 1, 2022, transfer of tangible personal

property or services to or by:

(1) the University Hospitals Trust created pursuant

to Section 3224 of Title 63 of the Oklahoma

Statutes, or

(2) nonprofit entities which are exempt from taxation

pursuant to the provisions of the Internal

Revenue Code of the United States, 26 U.S.C.,

Section 501(c)(3), which have entered into a

joint operating agreement with the University

Hospitals Trust;

31. Sales of tangible personal property or services to a

municipality, county or school district pursuant to a lease or

lease-purchase agreement executed between the vendor and a

municipality, county or school district. A copy of the lease or

lease-purchase agreement shall be retained by the vendor;

32. Sales of tangible personal property or services to any

spaceport user, as defined in the Oklahoma Space Industry

Development Act;

33. The sale, use, storage, consumption or distribution in this

state, whether by the importer, exporter or another person, of any

satellite or any associated launch vehicle including components of,

and parts and motors for, any such satellite or launch vehicle,

imported or caused to be imported into this state for the purpose of

export by means of launching into space. This exemption provided by

this paragraph shall not be affected by:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 503

a. the destruction in whole or in part of the satellite

or launch vehicle,

b. the failure of a launch to occur or be successful, or

c. the absence of any transfer or title to, or possession

of, the satellite or launch vehicle after launch;

34. The sale, lease, use, storage, consumption or distribution

in this state of any space facility, space propulsion system or

space vehicle, satellite or station of any kind possessing space

flight capacity including components thereof;

35. The sale, lease, use, storage, consumption or distribution

in this state of tangible personal property, placed on or used

aboard any space facility, space propulsion system or space vehicle,

satellite, or station possessing space flight capacity, which is

launched into space, irrespective of whether such tangible property

is returned to this state for subsequent use, storage, or

consumption in any manner;

36. The sale, lease, use, storage, consumption or distribution

in this state of tangible personal property meeting the definition

of “section 38 property” as defined in Sections 48(a)(1)(A) and

(B)(i) of the Internal Revenue Code of 1986, that is an integral

part of and used primarily in support of space flight; however,

section 38 property used in support of space flight shall not

include general office equipment, any boat, mobile home, motor

vehicle or other vehicle of a class or type required to be

registered, licensed, titled or documented in this state or by the

United States government, or any other property not specifically

suited to supporting space activity. The term “in support of space

flight”, for purposes of this paragraph, means the altering,

monitoring, controlling, regulating, adjusting, servicing or

repairing of any space facility, space propulsion systems or space

vehicle, satellite or station possessing space flight capacity

including the components thereof;

37. The purchase or lease of machinery and equipment for use at

a fixed location in this state, which is used exclusively in the

manufacturing, processing, compounding or producing of any space

facility, space propulsion system or space vehicle, satellite or

station of any kind possessing space flight capacity. Provided, the

exemption provided for in this paragraph shall not be allowed unless

the purchaser or lessee signs an affidavit stating that the item or

items to be exempted are for the exclusive use designated herein.

Any person furnishing a false affidavit to the vendor for the

purpose of evading payment of any tax imposed by Section 1354 of

this title shall be subject to the penalties provided by law. As

used in this paragraph, “machinery and equipment” means “section 38

property” as defined in Sections 48(a)(1)(A) and (B)(i) of the

Internal Revenue Code of 1986, which is used as an integral part of

the manufacturing, processing, compounding or producing of items of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 504

tangible personal property. Such term includes parts and

accessories only to the extent that the exemption thereof is

consistent with the provisions of this paragraph;

38. The amount of a surcharge or any other amount which is

separately stated on an admission ticket which is imposed, collected

and used for the sole purpose of constructing, remodeling or

enlarging facilities of a public trust having a municipality or

county as its sole beneficiary;

39. Sales of tangible personal property or services which are

directly used in or for the benefit of a state park in this state,

which are made to an organization which is exempt from taxation

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

Section 501(c)(3) and which is organized primarily for the purpose

of supporting one or more state parks located in this state;

40. The sale, lease or use of parking privileges by an

institution of The Oklahoma State System of Higher Education;

41. Sales of tangible personal property or services for use on

campus or school construction projects for the benefit of

institutions of The Oklahoma State System of Higher Education,

private institutions of higher education accredited by the Oklahoma

State Regents for Higher Education or any public school or school

district when such projects are financed by or through the use of

nonprofit entities which are exempt from taxation pursuant to the

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

501(c)(3);

42. Sales of tangible personal property or services by an

organization which is exempt from taxation pursuant to the

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

501(c)(3), in the course of conducting a national championship

sports event, but only if all or a portion of the payment in

exchange therefor would qualify as the receipt of a qualified

sponsorship payment described in Internal Revenue Code, 26 U.S.C.,

Section 513(i). Sales exempted pursuant to this paragraph shall be

exempt from all Oklahoma sales, use, excise and gross receipts

taxes;

43. Sales of tangible personal property or services to or by an

organization which:

a. is exempt from taxation pursuant to the provisions of

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

501(c)(3),

b. is affiliated with a comprehensive university within

The Oklahoma State System of Higher Education, and

c. has been organized primarily for the purpose of

providing education and teacher training and

conducting events relating to robotics;

44. The first Fifteen Thousand Dollars ($15,000.00) each year

from sales of tangible personal property to or by youth athletic

Oklahoma Statutes - Title 68. Revenue and Taxation Page 505

teams which are part of an athletic organization exempt from

taxation pursuant to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(4), for the purposes of raising funds for the

benefit of the team;

45. Sales of tickets for admission to a collegiate athletic

event that is held in a facility owned or operated by a municipality

or a public trust of which the municipality is the sole beneficiary

and that actually determines or is part of a tournament or

tournament process for determining a conference tournament

championship, a conference championship, or a national championship;

46. Sales of tangible personal property or services to or by an

organization which is exempt from taxation pursuant to the

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

501(c)(3) and is operating the Oklahoma City National Memorial and

Museum, an affiliate of the National Park System;

47. Sales of tangible personal property or services to

organizations which are exempt from federal taxation pursuant to the

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

U.S.C., Section 501(c)(3), the memberships of which are limited to

honorably discharged veterans, and which furnish financial support

to area veterans’ organizations to be used for the purpose of

constructing a memorial or museum;

48. Sales of tangible personal property or services on or after

January 1, 2003, to an organization which is exempt from taxation

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

Section 501(c)(3) that is expending monies received from a private

foundation grant in conjunction with expenditures of local sales tax

revenue to construct a local public library;

49. Sales of tangible personal property or services to a state

that borders this state or any political subdivision of that state,

but only to the extent that the other state or political subdivision

exempts or does not impose a tax on similar sales of items to this

state or a political subdivision of this state;

50. Effective July 1, 2005, sales of tangible personal property

or services to the Career Technology Student Organizations under the

direction and supervision of the Oklahoma Department of Career and

Technology Education;

51. Sales of tangible personal property to a public trust

having either a single city, town or county or multiple cities,

towns or counties or combination thereof as beneficiary or

beneficiaries or a nonprofit organization which is exempt from

taxation pursuant to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3) for the purpose of constructing

improvements to or expanding a hospital or nursing home owned and

operated by any such public trust or nonprofit entity prior to July

1, 2008, in counties with a population of less than one hundred

thousand (100,000) persons, according to the most recent Federal

Oklahoma Statutes - Title 68. Revenue and Taxation Page 506

Decennial Census. As used in this paragraph, “constructing

improvements to or expanding” shall not mean any expense for routine

maintenance or general repairs and shall require a project cost of

at least One Hundred Thousand Dollars ($100,000.00). For purposes

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

enters into a contractual relationship with a public trust or

nonprofit entity as described by this paragraph shall be considered

sales made to the public trust or nonprofit entity. The exemption

authorized by this paragraph shall be administered in the form of a

refund from the sales tax revenues apportioned pursuant to Section

1353 of this title and the vendor shall be required to collect the

sales tax otherwise applicable to the transaction. The purchaser

may apply for a refund of the sales tax paid in the manner

prescribed by this paragraph. Within thirty (30) days after the end

of each fiscal year, any purchaser that is entitled to make

application for a refund based upon the exempt treatment authorized

by this paragraph may file an application for refund of the sales

taxes paid during such preceding fiscal year. The Oklahoma Tax

Commission shall prescribe a form for purposes of making the

application for refund. The Tax Commission shall determine whether

or not the total amount of sales tax exemptions claimed by all

purchasers is equal to or less than Six Hundred Fifty Thousand

Dollars ($650,000.00). If such claims are less than or equal to

that amount, the Tax Commission shall make refunds to the purchasers

in the full amount of the documented and verified sales tax amounts.

If such claims by all purchasers are in excess of Six Hundred Fifty

Thousand Dollars ($650,000.00), the Tax Commission shall determine

the amount of each purchaser’s claim, the total amount of all claims

by all purchasers, and the percentage each purchaser’s claim amount

bears to the total. The resulting percentage determined for each

purchaser shall be multiplied by Six Hundred Fifty Thousand Dollars

($650,000.00) to determine the amount of refundable sales tax to be

paid to each purchaser. The pro rata refund amount shall be the

only method to recover sales taxes paid during the preceding fiscal

year and no balance of any sales taxes paid on a pro rata basis

shall be the subject of any subsequent refund claim pursuant to this

paragraph;

52. Effective July 1, 2006, sales of tangible personal property

or services to any organization which assists, trains, educates, and

provides housing for physically and mentally handicapped persons and

which is exempt from taxation pursuant to the provisions of the

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

receives at least eighty-five percent (85%) of its annual budget

from state or federal funds. In order to receive the benefit of the

exemption authorized by this paragraph, the taxpayer shall be

required to make payment of the applicable sales tax at the time of

sale to the vendor in the manner otherwise required by law.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 507

Notwithstanding any other provision of the Uniform Tax Procedure

Code to the contrary, the taxpayer shall be authorized to file a

claim for refund of sales taxes paid that qualify for the exemption

authorized by this paragraph for a period of one (1) year after the

date of the sale transaction. The taxpayer shall be required to

provide documentation as may be prescribed by the Oklahoma Tax

Commission in support of the refund claim. The total amount of

sales tax qualifying for exempt treatment pursuant to this paragraph

shall not exceed One Hundred Seventy-five Thousand Dollars

($175,000.00) each fiscal year. Claims for refund shall be

processed in the order in which such claims are received by the

Oklahoma Tax Commission. If a claim otherwise timely filed exceeds

the total amount of refunds payable for a fiscal year, such claim

shall be barred;

53. The first Two Thousand Dollars ($2,000.00) each year of

sales of tangible personal property or services to, by, or for the

benefit of a qualified neighborhood watch organization that is

endorsed or supported by or working directly with a law enforcement

agency with jurisdiction in the area in which the neighborhood watch

organization is located. As used in this paragraph, “qualified

neighborhood watch organization” means an organization that is a

not-for-profit corporation under the laws of this state that was

created to help prevent criminal activity in an area through

community involvement and interaction with local law enforcement and

which is one of the first two thousand organizations which makes

application to the Oklahoma Tax Commission for the exemption after

March 29, 2006;

54. Sales of tangible personal property to a nonprofit

organization, exempt from taxation pursuant to the provisions of the

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

primarily for the purpose of providing services to homeless persons

during the day and located in a metropolitan area with a population

in excess of five hundred thousand (500,000) persons according to

the latest Federal Decennial Census. The exemption authorized by

this paragraph shall be applicable to sales of tangible personal

property to a qualified entity occurring on or after January 1,

2005;

55. Sales of tangible personal property or services to or by an

organization which is exempt from taxation pursuant to the

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

501(c)(3) for events the principal purpose of which is to provide

funding for the preservation of wetlands and habitat for wild ducks;

56. Sales of tangible personal property or services to or by an

organization which is exempt from taxation pursuant to the

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

501(c)(3) for events the principal purpose of which is to provide

funding for the preservation and conservation of wild turkeys;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 508

57. Sales of tangible personal property or services to an

organization which:

a. is exempt from taxation pursuant to the provisions of

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

501(c)(3), and

b. is part of a network of community-based, autonomous

member organizations that meets the following

criteria:

(1) serves people with workplace disadvantages and

disabilities by providing job training and

employment services, as well as job placement

opportunities and post-employment support,

(2) has locations in the United States and at least

twenty other countries,

(3) collects donated clothing and household goods to

sell in retail stores and provides contract labor

services to business and government, and

(4) provides documentation to the Oklahoma Tax

Commission that over seventy-five percent (75%)

of its revenues are channeled into employment,

job training and placement programs and other

critical community services;

58. Sales of tickets made on or after September 21, 2005, and

complimentary or free tickets for admission issued on or after

September 21, 2005, which have a value equivalent to the charge that

would have otherwise been made, for admission to a professional

athletic event in which a team in the National Basketball

Association is a participant, which is held in a facility owned or

operated by a municipality, a county or a public trust of which a

municipality or a county is the sole beneficiary, and sales of

tickets made on or after July 1, 2007, and complimentary or free

tickets for admission issued on or after July 1, 2007, which have a

value equivalent to the charge that would have otherwise been made,

for admission to a professional athletic event in which a team in

the National Hockey League is a participant, which is held in a

facility owned or operated by a municipality, a county or a public

trust of which a municipality or a county is the sole beneficiary;

59. Sales of tickets for admission and complimentary or free

tickets for admission which have a value equivalent to the charge

that would have otherwise been made to a professional sporting event

involving ice hockey, baseball, basketball, football or arena

football, or soccer. As used in this paragraph, “professional

sporting event” means an organized athletic competition between

teams that are members of an organized league or association with

centralized management, other than a national league or national

association, that imposes requirements for participation in the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 509

league upon the teams, the individual athletes or both, and which

uses a salary structure to compensate the athletes;

60. Sales of tickets for admission to an annual event sponsored

by an educational and charitable organization of women which is

exempt from taxation pursuant to the provisions of the Internal

Revenue Code, 26 U.S.C., Section 501(c)(3) and has as its mission

promoting volunteerism, developing the potential of women and

improving the community through the effective action and leadership

of trained volunteers;

61. Sales of tangible personal property or services to an

organization, which is exempt from taxation pursuant to the

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

501(c)(3), and which is itself a member of an organization which is

exempt from taxation pursuant to the provisions of the Internal

Revenue Code, 26 U.S.C., Section 501(c)(3), if the membership

organization is primarily engaged in advancing the purposes of its

member organizations through fundraising, public awareness or other

efforts for the benefit of its member organizations, and if the

member organization is primarily engaged either in providing

educational services and programs concerning health-related diseases

and conditions to individuals suffering from such health-related

diseases and conditions or their caregivers and family members or

support to such individuals, or in health-related research as to

such diseases and conditions, or both. In order to qualify for the

exemption authorized by this paragraph, the member nonprofit

organization shall be required to provide proof to the Oklahoma Tax

Commission of its membership status in the membership organization;

62. Sales of tangible personal property or services to or by an

organization which is part of a national volunteer women’s service

organization dedicated to promoting patriotism, preserving American

history and securing better education for children and which has at

least 168,000 members in 3,000 chapters across the United States;

63. Sales of tangible personal property or services to or by a

YWCA or YMCA organization which is part of a national nonprofit

community service organization working to meet the health and social

service needs of its members across the United States;

64. Sales of tangible personal property or services to or by a

veteran’s organization which is exempt from taxation pursuant to the

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

501(c)(19) and which is known as the Veterans of Foreign Wars

Department of Oklahoma;

65. Sales of boxes of food by a church or by an organization,

which is exempt from taxation pursuant to the provisions of the

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

under the provisions of this paragraph, the organization must be

organized for the primary purpose of feeding needy individuals or to

encourage volunteer service by requiring such service in order to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 510

purchase food. These boxes shall only contain edible staple food

items;

66. Sales of tangible personal property or services to any

person with whom a church has duly entered into a construction

contract, necessary for carrying out such contract or to any

subcontractor to such a construction contract;

67. Sales of tangible personal property or services used

exclusively for charitable or educational purposes, to or by an

organization which:

a. is exempt from taxation pursuant to the provisions of

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

501(c)(3),

b. has filed a Not-for-Profit Certificate of

Incorporation in this state, and

c. is organized for the purpose of:

(1) providing training and education to

developmentally disabled individuals,

(2) educating the community about the rights,

abilities and strengths of developmentally

disabled individuals, and

(3) promoting unity among developmentally disabled

individuals in their community and geographic

area;

68. Sales of tangible personal property or services to any

organization which is a shelter for abused, neglected, or abandoned

children and which is exempt from taxation pursuant to the

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

501(c)(3); provided, until July 1, 2008, such exemption shall apply

only to eligible shelters for children from birth to age twelve (12)

and after July 1, 2008, such exemption shall apply to eligible

shelters for children from birth to age eighteen (18);

69. Sales of tangible personal property or services to a child

care center which is licensed pursuant to the Oklahoma Child Care

Facilities Licensing Act and which:

a. possesses a 3-star rating from the Department of Human

Services Reaching for the Stars Program or a national

accreditation, and

b. allows on-site universal prekindergarten education to

be provided to four-year-old children through a

contractual agreement with any public school or school

district.

For the purposes of this paragraph, sales made to any person,

firm, agency or entity that has entered previously into a

contractual relationship with a child care center for construction

and improvement of buildings and other structures owned by the child

care center and operated for educational purposes shall be

considered sales made to a child care center. Any such person,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 511

firm, agency or entity making purchases on behalf of a child care

center shall certify, in writing, on the copy of the invoice or

sales ticket the nature of the purchase. Any such person, or person

acting on behalf of a firm, agency or entity making purchases on

behalf of a child care center in violation of 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;

70. a. Sales of tangible personal property to a service

organization of mothers who have children who are

serving or who have served in the military, which

service organization is exempt from taxation pursuant

to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(19) and which is known as the

Blue Star Mothers of America, Inc. The exemption

provided by this paragraph shall only apply to the

purchase of tangible personal property actually sent

to United States military personnel overseas who are

serving in a combat zone and not to any other tangible

personal property purchased by the organization.

Provided, this exemption shall not apply to any sales

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

jurisdiction in this state.

b. The exemption authorized by this paragraph shall be

administered in the form of a refund from the sales

tax revenues apportioned pursuant to Section 1353 of

this title, and the vendor shall be required to

collect the sales tax otherwise applicable to the

transaction. The purchaser may apply for a refund of

the state sales tax paid in the manner prescribed by

this paragraph. Within sixty (60) days after the end

of each calendar quarter, any purchaser that is

entitled to make application for a refund based upon

the exempt treatment authorized by this paragraph may

file an application for refund of the state sales

taxes paid during such preceding calendar quarter.

The Tax Commission shall prescribe a form for purposes

of making the application for refund.

c. A purchaser who applies for a refund pursuant to this

paragraph shall certify that the items were actually

sent to military personnel overseas in a combat zone.

Any purchaser that applies for a refund for the

purchase of items that are not authorized for

exemption under this paragraph shall be subject to a

penalty in the amount of Five Hundred Dollars

($500.00);

Oklahoma Statutes - Title 68. Revenue and Taxation Page 512

71. Sales of food and snack items to or by an organization

which is exempt from taxation pursuant to the provisions of the

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

and principal purpose is providing funding for scholarships in the

medical field;

72. Sales of tangible personal property or services for use

solely on construction projects for organizations which are exempt

from taxation pursuant to the provisions of the Internal Revenue

Code, 26 U.S.C., Section 501(c)(3) and whose purpose is providing

end-of-life care and access to hospice services to low-income

individuals who live in a facility owned by the organization. The

exemption provided by this paragraph applies to sales to the

organization as well as to sales to any person with whom the

organization has duly entered into a construction contract,

necessary for carrying out such contract or to any subcontractor to

such a construction contract. Any person making purchases on behalf

of such organization shall certify, in writing, on the copy of the

invoice or sales ticket to be retained by the vendor that the

purchases are made for and on behalf of such organization and set

out the name of such organization. Any person who wrongfully or

erroneously certifies that purchases are for any of the above-named

organizations or who otherwise violates this section 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;

73. Sales of tickets for admission to events held by

organizations exempt from taxation pursuant to the provisions of the

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

organized for the purpose of supporting general hospitals licensed

by the State Department of Health;

74. Sales of tangible personal property or services:

a. to a foundation which is exempt from taxation pursuant

to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3) and which raises tax-

deductible contributions in support of a wide range of

firearms-related public interest activities of the

National Rifle Association of America and other

organizations that defend and foster Second Amendment

rights, and

b. to or by a grassroots fundraising program for sales

related to events to raise funds for a foundation

meeting the qualifications of subparagraph a of this

paragraph;

75. Sales by an organization or entity which is exempt from

taxation pursuant to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3) which are related to a fundraising event

sponsored by the organization or entity when the event does not

Oklahoma Statutes - Title 68. Revenue and Taxation Page 513

exceed any five (5) consecutive days and when the sales are not in

the organization’s or the entity’s regular course of business.

Provided, the exemption provided in this paragraph shall be limited

to tickets sold for admittance to the fundraising event and items

which were donated to the organization or entity for sale at the

event;

76. Effective November 1, 2017, sales of tangible personal

property or services to an organization which is exempt from

taxation pursuant to the provisions of the Internal Revenue Code, 26

U.S.C., Section 501(c)(3) and operates as a collaborative model

which connects community agencies in one location to serve

individuals and families affected by violence and where victims have

access to services and advocacy at no cost to the victim;

77. Effective July 1, 2018, sales of tangible personal property

or services to or by an association which is exempt from taxation

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

Section 501(c)(19) and which is known as the National Guard

Association of Oklahoma;

78. Effective July 1, 2018, sales of tangible personal property

or services to or by an association which is exempt from taxation

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

Section 501(c)(4) and which is known as the Marine Corps League

Department of Oklahoma;

79. Sales of tangible personal property or services to the

American Legion, whether the purchase is made by the entity

chartered by the United States Congress or is an entity organized

under the laws of this or another state pursuant to the authority of

the national American Legion organization;

80. Sales of tangible personal property or services to or by an

organization which is:

a. exempt from taxation pursuant to the provisions of the

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

b. verified with a letter from the Fab Foundation as an

official member of the Fab Lab Network in compliance

with the Fab Charter, and

c. able to provide documentation that its primary and

principal purpose is to provide community access to

advanced 21st century manufacturing and digital

fabrication tools for science, technology,

engineering, art and math (STEAM) learning skills,

developing inventions, creating and sustaining

businesses and producing personalized products;

81. Effective November 1, 2021, sales of tangible personal

property or services used solely for construction and remodeling

projects to an organization which is exempt from taxation pursuant

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

501(c)(3), and which meets the following requirements:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 514

a. its primary purpose is to construct or remodel and

sell affordable housing and provide homeownership

education to residents of Oklahoma that have an income

that is below one hundred percent (100%) of the Family

Median Income guidelines as defined by the U.S.

Department of Housing and Urban Development,

b. it conducts its activities in a manner that serves

public or charitable purposes, rather than commercial

purposes,

c. it receives funding and revenue and charges fees in a

manner that does not incentivize it or its employees

to act other than in the best interests of its

clients, and

d. it compensates its employees in a manner that does not

incentivize employees to act other than in the best

interests of its clients;

82. Effective November 1, 2021, sales of tangible personal

property or services to a nonprofit entity, organized pursuant to

Oklahoma law before January 1, 2022, exempt from federal income

taxation pursuant to Section 501(c) of the Internal Revenue Code of

1986, as amended, the principal functions of which are to provide

assistance to natural persons following a disaster, with program

emphasis on repair or restoration to single-family residential

dwellings or the construction of a replacement single-family

residential dwelling. As used in this paragraph, “disaster” means

damage to property with or without accompanying injury to persons

from heavy rain, high winds, tornadic winds, drought, wildfire,

snow, ice, geologic disturbances, explosions, chemical accidents or

spills and other events causing damage to property on a large scale.

For purposes of this paragraph, an entity that expended at least

seventy-five percent (75%) of its funds on the restoration to

single-family housing following a disaster including related general

and administrative expenses, shall be eligible for the exemption

authorized by this paragraph;

83. Effective November 1, 2021, through December 31, 2024,

sales of tangible personal property or services to a museum that:

a. operates as a part of an organization which is exempt

from taxation pursuant to the provisions of the

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

b. is not accredited by the American Alliance of Museums,

and

c. operates on an annual budget of less than One Million

Dollars ($1,000,000.00);

84. Until July 1, 2022, sales of tangible personal property or

services for use in a clinical practice or medical facility operated

by an organization which is exempt from taxation pursuant to the

provisions of the Internal Revenue Code of the United States, 26

Oklahoma Statutes - Title 68. Revenue and Taxation Page 515

U.S.C., Section 501(c)(3), and which has entered into a joint

operating agreement with the University Hospitals Trust created

pursuant to Section 3224 of Title 63 of the Oklahoma Statutes. The

exemption provided by this paragraph shall be limited to the

purchase of tangible personal property and services for use in

clinical practices or medical facilities acquired or leased by the

organization from the University Hospitals Authority, University

Hospitals Trust, or the University of Oklahoma on or after June 1,

2021; and

85. Sales of tangible personal property or services to a

nonprofit entity, organized pursuant to Oklahoma law before January

1, 2019, exempt from federal income taxation pursuant to Section

501(c) of the Internal Revenue Code of 1986, as amended, the

principal functions of which are to provide assistance to natural

persons following a disaster, with program emphasis on repair or

restoration to single-family residential dwellings or the

construction of a replacement single-family residential dwelling.

For purposes of this paragraph, an entity operated exclusively for

charitable and educational purposes through the coordination of

volunteers for the disaster recovery of homes (as derived from Part

III, Statement of Program Services, of Internal Revenue Service Form

990) and offers its services free of charge to disaster survivors

statewide who are low income with no or limited means of recovery on

their own for the restoration to single-family housing following a

disaster including related general and administrative expenses,

shall be eligible for the exemption authorized by this paragraph.

The exemption provided by this paragraph shall only be applicable to

sales made on or after July 1, 2022. As used in this paragraph,

“disaster” means damage to property with or without accompanying

injury to persons from heavy rain, high winds, tornadic winds,

drought, wildfire, snow, ice, geologic disturbances, explosions,

chemical accidents or spills and other events causing damage to

property on a large scale.
Okla. Stat. tit. 68, § 68-1629 — OK Code / Title 68 / Section 68-1629
Public displays
Status: in_force

Oklahoma Statutes - Title 68. Revenue and Taxation Page 689

Nothing in this act shall be construed as applying to shipping,

sale, possession or use of display fireworks when displayed by

holders of a permit for a public display to be conducted in

accordance with the rules and regulations of the State Fire Marshal

Commission.

Applications for permits for display fireworks must be submitted

in writing prior to the date of display to the Authority Having

Jurisdiction (AHJ) as defined by the NFPA 1123 where the display is

to occur. If the display is in an area outside the jurisdiction of

a city or town, application for permit shall be submitted in writing

to the State Fire Marshal's Office ten (10) days prior to the date

of the display. Every display shall be under the direction of a

competent, responsible operator of legal age and be conducted under

the code of regulations as adopted by the State Fire Marshal

Commission. The person or organization making application for

permit must submit to the authority having jurisdiction evidence of

a general liability insurance policy in an amount of not less than

One Million Dollars ($1,000,000.00) or the amount set forth by the

local governing authority. Before a permit is granted, a local fire

inspector or an agent of the State Fire Marshal shall inspect and

approve or reject the site of the display. No permit so granted

shall be transferable.
Okla. Stat. tit. 68, § 68-2840 — OK Code / Title 68 / Section 68-2840
County assessor to prepare, build and maintain certain
Status: in_force

permanent records.

A. Each county assessor shall prepare, build, and maintain

permanent records containing the following information:

1. The classification, grade, and value of each tract of land

located outside cities and towns and platted subdivisions and

additions and the improvements thereon;

2. The description and value of all lots and tracts and the

improvements thereon, and a list of lands that have been annexed to

any city or town, commencing with the lowest numbered section and

the different subdivisions and fractional parts thereof in the

lowest numbered townships in the lowest numbered range in the

county, and ending with the highest numbered section, township, and

range and the improvements thereon; and

3. The information required herein to be shown on such

permanent records shall be shown as to tax exempt as well as taxable

property, and shall be in such forms as may be acceptable to the

Oklahoma Tax Commission. It shall not be necessary to place upon

such records any grade or value on land and improvements owned by

the United States of America, this state or any subdivision thereof,

or any land and improvements exempt from ad valorem taxation by

reason of the same being used exclusively and directly for

religious, charitable, or educational purposes, such as churches,

schools, colleges, universities, cemeteries, and all lands owned by

railroads, air carriers, and public service corporations that are

assessed by the State Board of Equalization. Exempt Indian land and

other exempt property shall be valued and the value placed upon such

records.

B. When the valuation of the real estate of each county has

been completed, as required by this section, it shall be the

mandatory duty of the county assessor and each of his or her

successors in office to continuously maintain, revise, and correct

the records relating thereto, and to continuously adjust and correct

assessed valuations in conformity therewith. Such maintenance,

revision, and correction shall be made each year based upon the

results of the calculations required by law to be performed each

year in order to determine the fair cash value of all property

within the county.

C. Each county assessor shall request in his or her budget

request each year sufficient funds to carry out the provisions of

this section. It shall be the mandatory duty of the several boards

of county commissioners, the several county excise boards, and the

several county budget boards each year to make sufficient

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1175

appropriations to enable the county assessor to perform the duties

required of him or her by this section. If any board of county

commissioners, county excise board, or county budget board fails,

neglects, or refuses, upon written request of the county assessor,

to provide adequate appropriations for supplies, deputy hire, or

traveling expenses for the performance of the duties imposed upon

the county assessor by this section, such appropriations may be

obtained by mandamus action instituted in district court by the

county assessor or any other county officer, or any taxpayer of the

county.

D. The classification and valuation provided for by this

section shall be done under the supervisory assistance of the

Oklahoma Tax Commission. The forms used in such classification and

valuation of property shall be prescribed by the Oklahoma Tax

Commission. Where the classification and valuation has already been

completed, it shall not be necessary for the county assessor to

again make such classification and valuation, except it shall be the

duty of such county assessor to continuously maintain, revise, and

correct the same as required by this section.

E. Each county assessor, upon request of the agency designated

as the State Data Center, shall furnish all location data and

addresses necessary to complete the work of the agency with the

United States Census Bureau.
Okla. Stat. tit. 68, § 68-2358v3 — OK Code / Title 68 / Section 68-2358v3
Adjustments to arrive at Oklahoma taxable income and
Status: in_force

Oklahoma adjusted gross income.

For all tax years beginning after December 31, 1981, taxable

income and adjusted gross income shall be adjusted to arrive at

Oklahoma taxable income and Oklahoma adjusted gross income as

required by this section.

A. The taxable income of any taxpayer shall be adjusted to

arrive at Oklahoma taxable income for corporations and Oklahoma

adjusted gross income for individuals, as follows:

1. There shall be added interest income on obligations of any

state or political subdivision thereto which is not otherwise

exempted pursuant to other laws of this state, to the extent that

such interest is not included in taxable income and adjusted gross

income.

2. There shall be deducted amounts included in such income that

the state is prohibited from taxing because of the provisions of the

Federal Constitution, the State Constitution, federal laws or laws

of Oklahoma.

3. The amount of any federal net operating loss deduction shall

be adjusted as follows:

a. For carryovers and carrybacks to taxable years

beginning before January 1, 1981, the amount of any

net operating loss deduction allowed to a taxpayer for

federal income tax purposes shall be reduced to an

amount which is the same portion thereof as the loss

from sources within this state, as determined pursuant

to this section and Section 2362 of this title, for

the taxable year in which such loss is sustained is of

the total loss for such year;

b. For carryovers and carrybacks to taxable years

beginning after December 31, 1980, the amount of any

net operating loss deduction allowed for the taxable

year shall be an amount equal to the aggregate of the

Oklahoma net operating loss carryovers and carrybacks

to such year. Oklahoma net operating losses shall be

separately determined by reference to Section 172 of

the Internal Revenue Code, 26 U.S.C., Section 172, as

modified by the Oklahoma Income Tax Act, Section 2351

et seq. of this title, and shall be allowed without

Oklahoma Statutes - Title 68. Revenue and Taxation Page 993

regard to the existence of a federal net operating

loss. For tax years beginning after December 31,

2000, and ending before January 1, 2008, the years to

which such losses may be carried shall be determined

solely by reference to Section 172 of the Internal

Revenue Code, 26 U.S.C., Section 172, with the

exception that the terms “net operating loss” and

“taxable income” shall be replaced with “Oklahoma net

operating loss” and “Oklahoma taxable income”. For

tax years beginning after December 31, 2007, and

ending before January 1, 2009, years to which such

losses may be carried back shall be limited to two (2)

years. For tax years beginning after December 31,

2008, the years to which such losses may be carried

back shall be determined solely by reference to

Section 172 of the Internal Revenue Code, 26 U.S.C.,

Section 172, with the exception that the terms “net

operating loss” and “taxable income” shall be replaced

with “Oklahoma net operating loss” and “Oklahoma

taxable income”.

4. Items of the following nature shall be allocated as

indicated. Allowable deductions attributable to items separately

allocable in subparagraphs a, b and c of this paragraph, whether or

not such items of income were actually received, shall be allocated

on the same basis as those items:

a. Income from real and tangible personal property, such

as rents, oil and mining production or royalties, and

gains or losses from sales of such property, shall be

allocated in accordance with the situs of such

property;

b. Income from intangible personal property, such as

interest, dividends, patent or copyright royalties,

and gains or losses from sales of such property, shall

be allocated in accordance with the domiciliary situs

of the taxpayer, except that:Oklahoma Statutes - Title 68. Revenue and Taxation Page 21d mining production or royalties, and

gains or losses from sales of such property, shall be

allocated in accordance with the situs of such

property;

b. Income from intangible personal property, such as

interest, dividends, patent or copyright royalties,

and gains or losses from sales of such property, shall

be allocated in accordance with the domiciliary situs

of the taxpayer, except that:

(1) where such property has acquired a nonunitary

business or commercial situs apart from the

domicile of the taxpayer such income shall be

allocated in accordance with such business or

commercial situs; interest income from

investments held to generate working capital for

a unitary business enterprise shall be included

in apportionable income; a resident trust or

resident estate shall be treated as having a

separate commercial or business situs insofar as

undistributed income is concerned, but shall not

be treated as having a separate commercial or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 994

business situs insofar as distributed income is

concerned,

(2) for taxable years beginning after December 31,

2003, capital or ordinary gains or losses from

the sale of an ownership interest in a publicly

traded partnership, as defined by Section 7704(b)

of the Internal Revenue Code, shall be allocated

to this state in the ratio of the original cost

of such partnership’s tangible property in this

state to the original cost of such partnership’s

tangible property everywhere, as determined at

the time of the sale; if more than fifty percent

(50%) of the value of the partnership’s assets

consists of intangible assets, capital or

ordinary gains or losses from the sale of an

ownership interest in the partnership shall be

allocated to this state in accordance with the

sales factor of the partnership for its first

full tax period immediately preceding its tax

period during which the ownership interest in the

partnership was sold; the provisions of this

division shall only apply if the capital or

ordinary gains or losses from the sale of an

ownership interest in a partnership do not

constitute qualifying gain receiving capital

treatment as defined in subparagraph a of

paragraph 2 of subsection F of this section,

(3) income from such property which is required to be

allocated pursuant to the provisions of paragraph

5 of this subsection shall be allocated as herein

provided;

c. Net income or loss from a business activity which is

not a part of business carried on within or without

the state of a unitary character shall be separately

allocated to the state in which such activity is

conducted;

d. In the case of a manufacturing or processing

enterprise the business of which in Oklahoma consists

solely of marketing its products by:

(1) sales having a situs without this state, shipped

directly to a point from without the state to a

purchaser within the state, commonly known as

interstate sales,

(2) sales of the product stored in public warehouses

within the state pursuant to “in transit”

tariffs, as prescribed and allowed by the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 995

Interstate Commerce Commission, to a purchaser

within the state,

(3) sales of the product stored in public warehouses

within the state where the shipment to such

warehouses is not covered by “in transit”

tariffs, as prescribed and allowed by the

Interstate Commerce Commission, to a purchaser

within or without the state,

the Oklahoma net income shall, at the option of the

taxpayer, be that portion of the total net income of

the taxpayer for federal income tax purposes derived

from the manufacture and/or processing and sales

everywhere as determined by the ratio of the sales

defined in this section made to the purchaser within

the state to the total sales everywhere. The term

“public warehouse” as used in this subparagraph means

a licensed public warehouse, the principal business of

which is warehousing merchandise for the public;

e. In the case of insurance companies, Oklahoma taxable

income shall be taxable income of the taxpayer for

federal tax purposes, as adjusted for the adjustments

provided pursuant to the provisions of paragraphs 1

and 2 of this subsection, apportioned as follows:

(1) except as otherwise provided by division (2) of

this subparagraph, taxable income of an insurance

company for a taxable year shall be apportioned

to this state by multiplying such income by a

fraction, the numerator of which is the direct

premiums written for insurance on property or

risks in this state, and the denominator of which

is the direct premiums written for insurance on

property or risks everywhere. For purposes of

this subsection, the term “direct premiums

written” means the total amount of direct

premiums written, assessments and annuity

considerations as reported for the taxable year

on the annual statement filed by the company with

the Insurance Commissioner in the form approved

by the National Association of Insurance

Commissioners, or such other form as may be

prescribed in lieu thereof,

(2) if the principal source of premiums written by an

insurance company consists of premiums for

reinsurance accepted by it, the taxable income of

such company shall be apportioned to this state

by multiplying such income by a fraction, the

numerator of which is the sum of (a) direct

Oklahoma Statutes - Title 68. Revenue and Taxation Page 996

premiums written for insurance on property or

risks in this state, plus (b) premiums written

for reinsurance accepted in respect of property

or risks in this state, and the denominator of

which is the sum of (c) direct premiums written

for insurance on property or risks everywhere,

plus (d) premiums written for reinsurance

accepted in respect of property or risks

everywhere. For purposes of this paragraph,

premiums written for reinsurance accepted in

respect of property or risks in this state,

whether or not otherwise determinable, may at the

election of the company be determined on the

basis of the proportion which premiums written

for insurance accepted from companies

commercially domiciled in Oklahoma bears to

premiums written for reinsurance accepted from

all sources, or alternatively in the proportion

which the sum of the direct premiums written for

insurance on property or risks in this state by

each ceding company from which reinsurance is

accepted bears to the sum of the total direct

premiums written by each such ceding company for

the taxable year.

5. The net income or loss remaining after the separate

allocation in paragraph 4 of this subsection, being that which is

derived from a unitary business enterprise, shall be apportioned to

this state on the basis of the arithmetical average of three factors

consisting of property, payroll and sales or gross revenue

enumerated as subparagraphs a, b and c of this paragraph. Net

income or loss as used in this paragraph includes that derived from

patent or copyright royalties, purchase discounts, and interest on

accounts receivable relating to or arising from a business activity,

the income from which is apportioned pursuant to this subsection,

including the sale or other disposition of such property and any

other property used in the unitary enterprise. Deductions used in

computing such net income or loss shall not include taxes based on

or measured by income. Provided, for corporations whose property

for purposes of the tax imposed by Section 2355 of this title has an

initial investment cost equaling or exceeding Two Hundred Million

Dollars ($200,000,000.00) and such investment is made on or after

July 1, 1997, or for corporations which expand their property or

facilities in this state and such expansion has an investment cost

equaling or exceeding Two Hundred Million Dollars ($200,000,000.00)

over a period not to exceed three (3) years, and such expansion is

commenced on or after January 1, 2000, the three factors shall be

apportioned with property and payroll, each comprising twenty-five

Oklahoma Statutes - Title 68. Revenue and Taxation Page 997

percent (25%) of the apportionment factor and sales comprising fifty

percent (50%) of the apportionment factor. The apportionment

factors shall be computed as follows:

a. The property factor is a fraction, the numerator of

which is the average value of the taxpayer’s real and

tangible personal property owned or rented and used in

this state during the tax period and the denominator

of which is the average value of all the taxpayer’s

real and tangible personal property everywhere owned

or rented and used during the tax period.

(1) Property, the income from which is separately

allocated in paragraph 4 of this subsection,

shall not be included in determining this

fraction. The numerator of the fraction shall

include a portion of the investment in

transportation and other equipment having no

fixed situs, such as rolling stock, buses, trucks

and trailers, including machinery and equipment

carried thereon, airplanes, salespersons’

automobiles and other similar equipment, in the

proportion that miles traveled in Oklahoma by

such equipment bears to total miles traveled,

(2) Property owned by the taxpayer is valued at its

original cost. Property rented by the taxpayer

is valued at eight times the net annual rental

rate. Net annual rental rate is the annual

rental rate paid by the taxpayer, less any annual

rental rate received by the taxpayer from

subrentals,

(3) The average value of property shall be determined

by averaging the values at the beginning and

ending of the tax period but the Oklahoma Tax

Commission may require the averaging of monthly

values during the tax period if reasonably

required to reflect properly the average value of

the taxpayer’s property;

b. The payroll factor is a fraction, the numerator of

which is the total compensation for services rendered

in the state during the tax period, and the

denominator of which is the total compensation for

services rendered everywhere during the tax period.

“Compensation”, as used in this subsection means those

paid-for services to the extent related to the unitary

business but does not include officers’ salaries,

wages and other compensation.

(1) In the case of a transportation enterprise, the

numerator of the fraction shall include a portion

Oklahoma Statutes - Title 68. Revenue and Taxation Page 998

of such expenditure in connection with employees

operating equipment over a fixed route, such as

railroad employees, airline pilots, or bus

drivers, in this state only a part of the time,

in the proportion that mileage traveled in

Oklahoma bears to total mileage traveled by such

employees,

(2) In any case the numerator of the fraction shall

include a portion of such expenditures in

connection with itinerant employees, such as

traveling salespersons, in this state only a part

of the time, in the proportion that time spent in

Oklahoma bears to total time spent in furtherance

of the enterprise by such employees;

c. The sales factor is a fraction, the numerator of which

is the total sales or gross revenue of the taxpayer in

this state during the tax period, and the denominator

of which is the total sales or gross revenue of the

taxpayer everywhere during the tax period. “Sales”,

as used in this subsection does not include sales or

gross revenue which are separately allocated in

paragraph 4 of this subsection.

(1) Sales of tangible personal property have a situs

in this state if the property is delivered or

shipped to a purchaser other than the United

States government, within this state regardless

of the FOB point or other conditions of the sale;

or the property is shipped from an office, store,

warehouse, factory or other place of storage in

this state and (a) the purchaser is the United

States government or (b) the taxpayer is not

doing business in the state of the destination of

the shipment.

(2) In the case of a railroad or interurban railway

enterprise, the numerator of the fraction shall

not be less than the allocation of revenues to

this state as shown in its annual report to the

Corporation Commission.

(3) In the case of an airline, truck or bus

enterprise or freight car, tank car, refrigerator

car or other railroad equipment enterprise, the

numerator of the fraction shall include a portion

of revenue from interstate transportation in the

proportion that interstate mileage traveled in

Oklahoma bears to total interstate mileage

traveled.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 999

(4) In the case of an oil, gasoline or gas pipeline

enterprise, the numerator of the fraction shall

be either the total of traffic units of the

enterprise within Oklahoma or the revenue

allocated to Oklahoma based upon miles moved, at

the option of the taxpayer, and the denominator

of which shall be the total of traffic units of

the enterprise or the revenue of the enterprise

everywhere as appropriate to the numerator. A

“traffic unit” is hereby defined as the

transportation for a distance of one (1) mile of

one (1) barrel of oil, one (1) gallon of gasoline

or one thousand (1,000) cubic feet of natural or

casinghead gas, as the case may be.

(5) In the case of a telephone or telegraph or other

communication enterprise, the numerator of the

fraction shall include that portion of the

interstate revenue as is allocated pursuant to

the accounting procedures prescribed by the

Federal Communications Commission; provided that

in respect to each corporation or business entity

required by the Federal Communications Commission

to keep its books and records in accordance with

a uniform system of accounts prescribed by such

Commission, the intrastate net income shall be

determined separately in the manner provided by

such uniform system of accounts and only the

interstate income shall be subject to allocation

pursuant to the provisions of this subsection.

Provided further, that the gross revenue factors

shall be those as are determined pursuant to the

accounting procedures prescribed by the Federal

Communications Commission.

In any case where the apportionment of the three factors

prescribed in this paragraph attributes to Oklahoma a portion of net

income of the enterprise out of all appropriate proportion to the

property owned and/or business transacted within this state, because

of the fact that one or more of the factors so prescribed are not

employed to any appreciable extent in furtherance of the enterprise;

or because one or more factors not so prescribed are employed to a

considerable extent in furtherance of the enterprise; or because of

other reasons, the Tax Commission is empowered to permit, after a

showing by taxpayer that an excessive portion of net income has been

attributed to Oklahoma, or require, when in its judgment an

insufficient portion of net income has been attributed to Oklahoma,

the elimination, substitution, or use of additional factors, or

reduction or increase in the weight of such prescribed factors.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1000

Provided, however, that any such variance from such prescribed

factors which has the effect of increasing the portion of net income

attributable to Oklahoma must not be inherently arbitrary, and

application of the recomputed final apportionment to the net income

of the enterprise must attribute to Oklahoma only a reasonable

portion thereof.

6. For calendar years 1997 and 1998, the owner of a new or

expanded agricultural commodity processing facility in this state

may exclude from Oklahoma taxable income, or in the case of an

individual, the Oklahoma adjusted gross income, fifteen percent

(15%) of the investment by the owner in the new or expanded

agricultural commodity processing facility. For calendar year 1999,

and all subsequent years, the percentage, not to exceed fifteen

percent (15%), available to the owner of a new or expanded

agricultural commodity processing facility in this state claiming

the exemption shall be adjusted annually so that the total estimated

reduction in tax liability does not exceed One Million Dollars

($1,000,000.00) annually. The Tax Commission shall promulgate rules

for determining the percentage of the investment which each eligible

taxpayer may exclude. The exclusion provided by this paragraph

shall be taken in the taxable year when the investment is made. In

the event the total reduction in tax liability authorized by this

paragraph exceeds One Million Dollars ($1,000,000.00) in any

calendar year, the Tax Commission shall permit any excess over One

Million Dollars ($1,000,000.00) and shall factor such excess into

the percentage for subsequent years. Any amount of the exemption

permitted to be excluded pursuant to the provisions of this

paragraph but not used in any year may be carried forward as an

exemption from income pursuant to the provisions of this paragraph

for a period not exceeding six (6) years following the year in which

the investment was originally made.

For purposes of this paragraph:

a. “Agricultural commodity processing facility” means

building, structures, fixtures and improvements used

or operated primarily for the processing or production

of marketable products from agricultural commodities.

The term shall also mean a dairy operation that

requires a depreciable investment of at least Two

Hundred Fifty Thousand Dollars ($250,000.00) and which

produces milk from dairy cows. The term does not

include a facility that provides only, and nothing

more than, storage, cleaning, drying or transportation

of agricultural commodities, and

b. “Facility” means each part of the facility which is

used in a process primarily for:

(1) the processing of agricultural commodities,

including receiving or storing agricultural

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1001

commodities, or the production of milk at a dairy

operation,

(2) transporting the agricultural commodities or

product before, during or after the processing,

or

(3) packaging or otherwise preparing the product for

sale or shipment.

7. Despite any provision to the contrary in paragraph 3 of this

subsection, for taxable years beginning after December 31, 1999, in

the case of a taxpayer which has a farming loss, such farming loss

shall be considered a net operating loss carryback in accordance

with and to the extent of the Internal Revenue Code, 26 U.S.C.,

Section 172(b)(G). However, the amount of the net operating loss

carryback shall not exceed the lesser of:

a. Sixty Thousand Dollars ($60,000.00), or

b. the loss properly shown on Schedule F of the Internal

Revenue Service Form 1040 reduced by one-half (1/2) of

the income from all other sources other than reflected

on Schedule F.

8. In taxable years beginning after December 31, 1995, all

qualified wages equal to the federal income tax credit set forth in

26 U.S.C.A., Section 45A, shall be deducted from taxable income.

The deduction allowed pursuant to this paragraph shall only be

permitted for the tax years in which the federal tax credit pursuant

to 26 U.S.C.A., Section 45A, is allowed. For purposes of this

paragraph, “qualified wages” means those wages used to calculate the

federal credit pursuant to 26 U.S.C.A., Section 45A.

9. In taxable years beginning after December 31, 2005, an

employer that is eligible for and utilizes the Safety Pays OSHA

Consultation Service provided by the Oklahoma Department of Labor

shall receive an exemption from taxable income in the amount of One

Thousand Dollars ($1,000.00) for the tax year that the service is

utilized.

10. For taxable years beginning on or after January 1, 2010,

there shall be added to Oklahoma taxable income an amount equal to

the amount of deferred income not included in such taxable income

pursuant to Section 108(i)(1) of the Internal Revenue Code of 1986

as amended by Section 1231 of the American Recovery and Reinvestment

Act of 2009 (P.L. No. 111-5). There shall be subtracted from

Oklahoma taxable income an amount equal to the amount of deferred

income included in such taxable income pursuant to Section 108(i)(1)

of the Internal Revenue Code by Section 1231 of the American

Recovery and Reinvestment Act of 2009 (P.L. No. 111-5).

11. For taxable years beginning on or after January 1, 2019,

there shall be subtracted from Oklahoma taxable income or adjusted

gross income any item of income or gain, and there shall be added to

Oklahoma taxable income or adjusted gross income any item of loss or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1002

deduction that in the absence of an election pursuant to the

provisions of the Pass-Through Entity Tax Equity Act of 2019 would

be allocated to a member or to an indirect member of an electing

pass-through entity pursuant to Section 2351 et seq. of this title,

if (i) the electing pass-through entity has accounted for such item

in computing its Oklahoma net entity income or loss pursuant to the

provisions of the Pass-Through Entity Tax Equity Act of 2019, and

(ii) the total amount of tax attributable to any resulting Oklahoma

net entity income has been paid. The Oklahoma Tax Commission shall

promulgate rules for the reporting of such exclusion to direct and

indirect members of the electing pass-through entity. As used in

this paragraph, “electing pass-through entity”, “indirect member”,

and “member” shall be defined in the same manner as prescribed by

Section 2355.1P-2 of this title. Notwithstanding the application of

this paragraph, the adjusted tax basis of any ownership interest in

a pass-through entity for purposes of Section 2351 et seq. of this

title shall be equal to its adjusted tax basis for federal income

tax purposes.

B. 1. The taxable income of any corporation shall be further

adjusted to arrive at Oklahoma taxable income, except those

corporations electing treatment as provided in subchapter S of the

Internal Revenue Code, 26 U.S.C., Section 1361 et seq., and Section

2365 of this title, deductions pursuant to the provisions of the

Accelerated Cost Recovery System as defined and allowed in the

Economic Recovery Tax Act of 1981, Public Law 97-34, 26 U.S.C.,

Section 168, for depreciation of assets placed into service after

December 31, 1981, shall not be allowed in calculating Oklahoma

taxable income. Such corporations shall be allowed a deduction for

depreciation of assets placed into service after December 31, 1981,

in accordance with provisions of the Internal Revenue Code, 26

U.S.C., Section 1 et seq., in effect immediately prior to the

enactment of the Accelerated Cost Recovery System. The Oklahoma tax

basis for all such assets placed into service after December 31,

1981, calculated in this section shall be retained and utilized for

all Oklahoma income tax purposes through the final disposition of

such assets.

Notwithstanding any other provisions of the Oklahoma Income Tax

Act, Section 2351 et seq. of this title, or of the Internal Revenue

Code to the contrary, this subsection shall control calculation of

depreciation of assets placed into service after December 31, 1981,

and before January 1, 1983.

For assets placed in service and held by a corporation in which

accelerated cost recovery system was previously disallowed, an

adjustment to taxable income is required in the first taxable year

beginning after December 31, 1982, to reconcile the basis of such

assets to the basis allowed in the Internal Revenue Code. The

purpose of this adjustment is to equalize the basis and allowance

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1003

for depreciation accounts between that reported to the Internal

Revenue Service and that reported to Oklahoma.

2. For tax years beginning on or after January 1, 2009, and

ending on or before December 31, 2009, there shall be added to

Oklahoma taxable income any amount in excess of One Hundred Seventy-

five Thousand Dollars ($175,000.00) which has been deducted as a

small business expense under Internal Revenue Code, Section 179 as

provided in the American Recovery and Reinvestment Act of 2009.

C. 1. For taxable years beginning after December 31, 1987, the

taxable income of any corporation shall be further adjusted to

arrive at Oklahoma taxable income for transfers of technology to

qualified small businesses located in Oklahoma. Such transferor

corporation shall be allowed an exemption from taxable income of an

amount equal to the amount of royalty payment received as a result

of such transfer; provided, however, such amount shall not exceed

ten percent (10%) of the amount of gross proceeds received by such

transferor corporation as a result of the technology transfer. Such

exemption shall be allowed for a period not to exceed ten (10) years

from the date of receipt of the first royalty payment accruing from

such transfer. No exemption may be claimed for transfers of

technology to qualified small businesses made prior to January 1,

1988.

2. For purposes of this subsection:

a. “Qualified small business” means an entity, whether

organized as a corporation, partnership, or

proprietorship, organized for profit with its

principal place of business located within this state

and which meets the following criteria:

(1) Capitalization of not more than Two Hundred Fifty

Thousand Dollars ($250,000.00),

(2) Having at least fifty percent (50%) of its

employees and assets located in Oklahoma at the

time of the transfer, and

(3) Not a subsidiary or affiliate of the transferor

corporation;

b. “Technology” means a proprietary process, formula,

pattern, device or compilation of scientific or

technical information which is not in the public

domain;

c. “Transferor corporation” means a corporation which is

the exclusive and undisputed owner of the technology

at the time the transfer is made; and

d. “Gross proceeds” means the total amount of

consideration for the transfer of technology, whether

the consideration is in money or otherwise.

D. 1. For taxable years beginning after December 31, 2005, the

taxable income of any corporation, estate or trust, shall be further

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1004

adjusted for qualifying gains receiving capital treatment. Such

corporations, estates or trusts shall be allowed a deduction from

Oklahoma taxable income for the amount of qualifying gains receiving

capital treatment earned by the corporation, estate or trust during

the taxable year and included in the federal taxable income of such

corporation, estate or trust.

2. As used in this subsection:

a. “qualifying gains receiving capital treatment” means

the amount of net capital gains, as defined in Section

1222(11) of the Internal Revenue Code, included in the

federal income tax return of the corporation, estate

or trust that result from:

(1) the sale of real property or tangible personal

property located within Oklahoma that has been

directly or indirectly owned by the corporation,

estate or trust for a holding period of at least

five (5) years prior to the date of the

transaction from which such net capital gains

arise,

(2) the sale of stock or on the sale of an ownership

interest in an Oklahoma company, limited

liability company, or partnership where such

stock or ownership interest has been directly or

indirectly owned by the corporation, estate or

trust for a holding period of at least three (3)

years prior to the date of the transaction from

which the net capital gains arise, or

(3) the sale of real property, tangible personal

property or intangible personal property located

within Oklahoma as part of the sale of all or

substantially all of the assets of an Oklahoma

company, limited liability company, or

partnership where such property has been directly

or indirectly owned by such entity owned by the

owners of such entity, and used in or derived

from such entity for a period of at least three

(3) years prior to the date of the transaction

from which the net capital gains arise,

b. “holding period” means an uninterrupted period of

time. The holding period shall include any additional

period when the property was held by another

individual or entity, if such additional period is

included in the taxpayer’s holding period for the

asset pursuant to the Internal Revenue Code,

c. “Oklahoma company”, “limited liability company”, or

“partnership” means an entity whose primary

headquarters have been located in Oklahoma for at

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1005

least three (3) uninterrupted years prior to the date

of the transaction from which the net capital gains

arise,

d. “direct” means the taxpayer directly owns the asset,

and

e. “indirect” means the taxpayer owns an interest in a

pass-through entity (or chain of pass-through

entities) that sells the asset that gives rise to the

qualifying gains receiving capital treatment.

(1) With respect to sales of real property or

tangible personal property located within

Oklahoma, the deduction described in this

subsection shall not apply unless the pass-

through entity that makes the sale has held the

property for not less than five (5) uninterrupted

years prior to the date of the transaction that

created the capital gain, and each pass-through

entity included in the chain of ownership has

been a member, partner, or shareholder of the

pass-through entity in the tier immediately below

it for an uninterrupted period of not less than

five (5) years.

(2) With respect to sales of stock or ownership

interest in or sales of all or substantially all

of the assets of an Oklahoma company, limited

liability company, or partnership, the deduction

described in this subsection shall not apply

unless the pass-through entity that makes the

sale has held the stock or ownership interest or

the assets for not less than three (3)

uninterrupted years prior to the date of the

transaction that created the capital gain, and

each pass-through entity included in the chain of

ownership has been a member, partner or

shareholder of the pass-through entity in the

tier immediately below it for an uninterrupted

period of not less than three (3) years.

E. The Oklahoma adjusted gross income of any individual

taxpayer shall be further adjusted as follows to arrive at Oklahoma

taxable income:

1. a. In the case of individuals, there shall be added or

deducted, as the case may be, the difference necessary

to allow personal exemptions of One Thousand Dollars

($1,000.00) in lieu of the personal exemptions allowed

by the Internal Revenue Code.

b. There shall be allowed an additional exemption of One

Thousand Dollars ($1,000.00) for each taxpayer or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1006

spouse who is blind at the close of the tax year. For

purposes of this subparagraph, an individual is blind

only if the central visual acuity of the individual

does not exceed 20/200 in the better eye with

correcting lenses, or if the visual acuity of the

individual is greater than 20/200, but is accompanied

by a limitation in the fields of vision such that the

widest diameter of the visual field subtends an angle

no greater than twenty (20) degrees.

c. There shall be allowed an additional exemption of One

Thousand Dollars ($1,000.00) for each taxpayer or

spouse who is sixty-five (65) years of age or older at

the close of the tax year based upon the filing status

and federal adjusted gross income of the taxpayer.

Taxpayers with the following filing status may claim

this exemption if the federal adjusted gross income

does not exceed:

(1) Twenty-five Thousand Dollars ($25,000.00) if

married and filing jointly,

(2) Twelve Thousand Five Hundred Dollars ($12,500.00)

if married and filing separately,

(3) Fifteen Thousand Dollars ($15,000.00) if single,

and

(4) Nineteen Thousand Dollars ($19,000.00) if a

qualifying head of household.

Provided, for taxable years beginning after December

31, 1999, amounts included in the calculation of

federal adjusted gross income pursuant to the

conversion of a traditional individual retirement

account to a Roth individual retirement account shall

be excluded from federal adjusted gross income for

purposes of the income thresholds provided in this

subparagraph.

2. a. For taxable years beginning on or before December 31,

2005, in the case of individuals who use the standard

deduction in determining taxable income, there shall

be added or deducted, as the case may be, the

difference necessary to allow a standard deduction in

lieu of the standard deduction allowed by the Internal

Revenue Code, in an amount equal to the larger of

fifteen percent (15%) of the Oklahoma adjusted gross

income or One Thousand Dollars ($1,000.00), but not to

exceed Two Thousand Dollars ($2,000.00), except that

in the case of a married individual filing a separate

return such deduction shall be the larger of fifteen

percent (15%) of such Oklahoma adjusted gross income

or Five Hundred Dollars ($500.00), but not to exceed

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1007

the maximum amount of One Thousand Dollars

($1,000.00).

b. For taxable years beginning on or after January 1,

2006, and before January 1, 2007, in the case of

individuals who use the standard deduction in

determining taxable income, there shall be added or

deducted, as the case may be, the difference necessary

to allow a standard deduction in lieu of the standard

deduction allowed by the Internal Revenue Code, in an

amount equal to:

(1) Three Thousand Dollars ($3,000.00), if the filing

status is married filing joint, head of household

or qualifying widow, or

(2) Two Thousand Dollars ($2,000.00), if the filing

status is single or married filing separate.

c. For the taxable year beginning on January 1, 2007, and

ending December 31, 2007, in the case of individuals

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Five Thousand Five Hundred Dollars ($5,500.00),

if the filing status is married filing joint or

qualifying widow, or

(2) Four Thousand One Hundred Twenty-five Dollars

($4,125.00) for a head of household, or

(3) Two Thousand Seven Hundred Fifty Dollars

($2,750.00), if the filing status is single or

married filing separate.

d. For the taxable year beginning on January 1, 2008, and

ending December 31, 2008, in the case of individuals

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Six Thousand Five Hundred Dollars ($6,500.00), if

the filing status is married filing joint or

qualifying widow,

(2) Four Thousand Eight Hundred Seventy-five Dollars

($4,875.00) for a head of household, or

(3) Three Thousand Two Hundred Fifty Dollars

($3,250.00), if the filing status is single or

married filing separate.

e. For the taxable year beginning on January 1, 2009, and

ending December 31, 2009, in the case of individuals

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1008

who use the standard deduction in determining taxable

income, there shall be added or deducted, as the case

may be, the difference necessary to allow a standard

deduction in lieu of the standard deduction allowed by

the Internal Revenue Code, in an amount equal to:

(1) Eight Thousand Five Hundred Dollars ($8,500.00),

if the filing status is married filing joint or

qualifying widow,

(2) Six Thousand Three Hundred Seventy-five Dollars

($6,375.00) for a head of household, or

(3) Four Thousand Two Hundred Fifty Dollars

($4,250.00), if the filing status is single or

married filing separate.

Oklahoma adjusted gross income shall be increased by

any amounts paid for motor vehicle excise taxes which

were deducted as allowed by the Internal Revenue Code.

f. For taxable years beginning on or after January 1,

2010, and ending on December 31, 2016, in the case of

individuals who use the standard deduction in

determining taxable income, there shall be added or

deducted, as the case may be, the difference necessary

to allow a standard deduction equal to the standard

deduction allowed by the Internal Revenue Code, based

upon the amount and filing status prescribed by such

Code for purposes of filing federal individual income

tax returns.

g. For taxable years beginning on or after January 1,

2017, in the case of individuals who use the standard

deduction in determining taxable income, there shall

be added or deducted, as the case may be, the

difference necessary to allow a standard deduction in

lieu of the standard deduction allowed by the Internal

Revenue Code, as follows:

(1) Six Thousand Three Hundred Fifty Dollars

($6,350.00) for single or married filing

separately,

(2) Twelve Thousand Seven Hundred Dollars

($12,700.00) for married filing jointly or

qualifying widower with dependent child, and

(3) Nine Thousand Three Hundred Fifty Dollars

($9,350.00) for head of household.

3. a. In the case of resident and part-year resident

individuals having adjusted gross income from sources

both within and without the state, the itemized or

standard deductions and personal exemptions shall be

reduced to an amount which is the same portion of the

total thereof as Oklahoma adjusted gross income is of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1009

adjusted gross income. To the extent itemized

deductions include allowable moving expense, proration

of moving expense shall not be required or permitted

but allowable moving expense shall be fully deductible

for those taxpayers moving within or into Oklahoma and

no part of moving expense shall be deductible for

those taxpayers moving without or out of Oklahoma.

All other itemized or standard deductions and personal

exemptions shall be subject to proration as provided

by law.

b. For taxable years beginning on or after January 1,

2018, the net amount of itemized deductions allowable

on an Oklahoma income tax return, subject to the

provisions of paragraph 24 of this subsection, shall

not exceed Seventeen Thousand Dollars ($17,000.00).

For purposes of this subparagraph, charitable

contributions and medical expenses deductible for

federal income tax purposes shall be excluded from the

amount of Seventeen Thousand Dollars ($17,000.00) as

specified by this subparagraph.

4. A resident individual with a physical disability

constituting a substantial handicap to employment may deduct from

Oklahoma adjusted gross income such expenditures to modify a motor

vehicle, home or workplace as are necessary to compensate for his or

her handicap. A veteran certified by the Department of Veterans

Affairs of the federal government as having a service-connected

disability shall be conclusively presumed to be an individual with a

physical disability constituting a substantial handicap to

employment. The Tax Commission shall promulgate rules containing a

list of combinations of common disabilities and modifications which

may be presumed to qualify for this deduction. The Tax Commission

shall prescribe necessary requirements for verification.

5. a. Before July 1, 2010, the first One Thousand Five

Hundred Dollars ($1,500.00) received by any person

from the United States as salary or compensation in

any form, other than retirement benefits, as a member

of any component of the Armed Forces of the United

States shall be deducted from taxable income.

b. On or after July 1, 2010, one hundred percent (100%)

of the income received by any person from the United

States as salary or compensation in any form, other

than retirement benefits, as a member of any component

of the Armed Forces of the United States shall be

deducted from taxable income.

c. Whenever the filing of a timely income tax return by a

member of the Armed Forces of the United States is

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1010

made impracticable or impossible of accomplishment by

reason of:

(1) absence from the United States, which term

includes only the states and the District of

Columbia,

(2) absence from the State of Oklahoma while on

active duty, or

(3) confinement in a hospital within the United

States for treatment of wounds, injuries or

disease,

the time for filing a return and paying an income tax

shall be and is hereby extended without incurring

liability for interest or penalties, to the fifteenth

day of the third month following the month in which:

(a) Such individual shall return to the United

States if the extension is granted pursuant

to subparagraph a of this paragraph, return

to the State of Oklahoma if the extension is

granted pursuant to subparagraph b of this

paragraph or be discharged from such

hospital if the extension is granted

pursuant to subparagraph c of this

paragraph, or

(b) An executor, administrator, or conservator

of the estate of the taxpayer is appointed,

whichever event occurs the earliest.

Provided, that the Tax Commission may, in its discretion, grant

any member of the Armed Forces of the United States an extension of

time for filing of income tax returns and payment of income tax

without incurring liabilities for interest or penalties. Such

extension may be granted only when in the judgment of the Tax

Commission a good cause exists therefor and may be for a period in

excess of six (6) months. A record of every such extension granted,

and the reason therefor, shall be kept.

6. Before July 1, 2010, the salary or any other form of

compensation, received from the United States by a member of any

component of the Armed Forces of the United States, shall be

deducted from taxable income during the time in which the person is

detained by the enemy in a conflict, is a prisoner of war or is

missing in action and not deceased; provided, after July 1, 2010,

all such salary or compensation shall be subject to the deduction as

provided pursuant to paragraph 5 of this subsection.

7. a. An individual taxpayer, whether resident or

nonresident, may deduct an amount equal to the federal

income taxes paid by the taxpayer during the taxable

year.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1011

b. Federal taxes as described in subparagraph a of this

paragraph shall be deductible by any individual

taxpayer, whether resident or nonresident, only to the

extent they relate to income subject to taxation

pursuant to the provisions of the Oklahoma Income Tax

Act. The maximum amount allowable in the preceding

paragraph shall be prorated on the ratio of the

Oklahoma adjusted gross income to federal adjusted

gross income.

c. For the purpose of this paragraph, “federal income

taxes paid” shall mean federal income taxes, surtaxes

imposed on incomes or excess profits taxes, as though

the taxpayer was on the accrual basis. In determining

the amount of deduction for federal income taxes for

tax year 2001, the amount of the deduction shall not

be adjusted by the amount of any accelerated ten

percent (10%) tax rate bracket credit or advanced

refund of the credit received during the tax year

provided pursuant to the federal Economic Growth and

Tax Relief Reconciliation Act of 2001, P.L. No. 107-

16, and the advanced refund of such credit shall not

be subject to taxation.

d. The provisions of this paragraph shall apply to all

taxable years ending after December 31, 1978, and

beginning before January 1, 2006.

8. Retirement benefits not to exceed Five Thousand Five Hundred

Dollars ($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and Ten Thousand

Dollars ($10,000.00) for the 2006 tax year and all subsequent tax

years, which are received by an individual from the civil service of

the United States, the Oklahoma Public Employees Retirement System,

the Teachers’ Retirement System of Oklahoma, the Oklahoma Law

Enforcement Retirement System, the Oklahoma Firefighters Pension and

Retirement System, the Oklahoma Police Pension and Retirement

System, the employee retirement systems created by counties pursuant

to Section 951 et seq. of Title 19 of the Oklahoma Statutes, the

Uniform Retirement System for Justices and Judges, the Oklahoma

Wildlife Conservation Department Retirement Fund, the Oklahoma

Employment Security Commission Retirement Plan, or the employee

retirement systems created by municipalities pursuant to Section 48-

101 et seq. of Title 11 of the Oklahoma Statutes shall be exempt

from taxable income.

9. In taxable years beginning after December 3l, 1984, Social

Security benefits received by an individual shall be exempt from

taxable income, to the extent such benefits are included in the

federal adjusted gross income pursuant to the provisions of Section

86 of the Internal Revenue Code, 26 U.S.C., Section 86.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1012

10. For taxable years beginning after December 31, 1994, lump-

sum distributions from employer plans of deferred compensation,

which are not qualified plans within the meaning of Section 401(a)

of the Internal Revenue Code, 26 U.S.C., Section 401(a), and which

are deposited in and accounted for within a separate bank account or

brokerage account in a financial institution within this state,

shall be excluded from taxable income in the same manner as a

qualifying rollover contribution to an individual retirement account

within the meaning of Section 408 of the Internal Revenue Code, 26

U.S.C., Section 408. Amounts withdrawn from such bank or brokerage

account, including any earnings thereon, shall be included in

taxable income when withdrawn in the same manner as withdrawals from

individual retirement accounts within the meaning of Section 408 of

the Internal Revenue Code.

11. In taxable years beginning after December 31, 1995,

contributions made to and interest received from a medical savings

account established pursuant to Sections 2621 through 2623 of Title

63 of the Oklahoma Statutes shall be exempt from taxable income.

12. For taxable years beginning after December 31, 1996, the

Oklahoma adjusted gross income of any individual taxpayer who is a

swine or poultry producer may be further adjusted for the deduction

for depreciation allowed for new construction or expansion costs

which may be computed using the same depreciation method elected for

federal income tax purposes except that the useful life shall be

seven (7) years for purposes of this paragraph. If depreciation is

allowed as a deduction in determining the adjusted gross income of

an individual, any depreciation calculated and claimed pursuant to

this section shall in no event be a duplication of any depreciation

allowed or permitted on the federal income tax return of the

individual.

13. a. In taxable years beginning before January 1, 2005,

retirement benefits not to exceed the amounts

specified in this paragraph, which are received by an

individual sixty-five (65) years of age or older and

whose Oklahoma adjusted gross income is Twenty-five

Thousand Dollars ($25,000.00) or less if the filing

status is single, head of household, or married filing

separate, or Fifty Thousand Dollars ($50,000.00) or

less if the filing status is married filing joint or

qualifying widow, shall be exempt from taxable income.

In taxable years beginning after December 31, 2004,

retirement benefits not to exceed the amounts

specified in this paragraph, which are received by an

individual whose Oklahoma adjusted gross income is

less than the qualifying amount specified in this

paragraph, shall be exempt from taxable income.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1013

b. For purposes of this paragraph, the qualifying amount

shall be as follows:

(1) in taxable years beginning after December 31,

2004, and prior to January 1, 2007, the

qualifying amount shall be Thirty-seven Thousand

Five Hundred Dollars ($37,500.00) or less if the

filing status is single, head of household, or

married filing separate, or Seventy-five Thousand

Dollars ($75,000.00) or less if the filing status

is married filing jointly or qualifying widow,

(2) in the taxable year beginning January 1, 2007,

the qualifying amount shall be Fifty Thousand

Dollars ($50,000.00) or less if the filing status

is single, head of household, or married filing

separate, or One Hundred Thousand Dollars

($100,000.00) or less if the filing status is

married filing jointly or qualifying widow,

(3) in the taxable year beginning January 1, 2008,

the qualifying amount shall be Sixty-two Thousand

Five Hundred Dollars ($62,500.00) or less if the

filing status is single, head of household, or

married filing separate, or One Hundred Twenty-

five Thousand Dollars ($125,000.00) or less if

the filing status is married filing jointly or

qualifying widow,

(4) in the taxable year beginning January 1, 2009,

the qualifying amount shall be One Hundred

Thousand Dollars ($100,000.00) or less if the

filing status is single, head of household, or

married filing separate, or Two Hundred Thousand

Dollars ($200,000.00) or less if the filing

status is married filing jointly or qualifying

widow, and

(5) in the taxable year beginning January 1, 2010,

and subsequent taxable years, there shall be no

limitation upon the qualifying amount.

c. For purposes of this paragraph, “retirement benefits”

means the total distributions or withdrawals from the

following:

(1) an employee pension benefit plan which satisfies

the requirements of Section 401 of the Internal

Revenue Code, 26 U.S.C., Section 401,

(2) an eligible deferred compensation plan that

satisfies the requirements of Section 457 of the

Internal Revenue Code, 26 U.S.C., Section 457,

(3) an individual retirement account, annuity or

trust or simplified employee pension that

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1014

satisfies the requirements of Section 408 of the

Internal Revenue Code, 26 U.S.C., Section 408,

(4) an employee annuity subject to the provisions of

Section 403(a) or (b) of the Internal Revenue

Code, 26 U.S.C., Section 403(a) or (b),

(5) United States Retirement Bonds which satisfy the

requirements of Section 86 of the Internal

Revenue Code, 26 U.S.C., Section 86, or

(6) lump-sum distributions from a retirement plan

which satisfies the requirements of Section

402(e) of the Internal Revenue Code, 26 U.S.C.,

Section 402(e).

d. The amount of the exemption provided by this paragraph

shall be limited to Five Thousand Five Hundred Dollars

($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and

Ten Thousand Dollars ($10,000.00) for the tax year

2006 and for all subsequent tax years. Any individual

who claims the exemption provided for in paragraph 8

of this subsection shall not be permitted to claim a

combined total exemption pursuant to this paragraph

and paragraph 8 of this subsection in an amount

exceeding Five Thousand Five Hundred Dollars

($5,500.00) for the 2004 tax year, Seven Thousand Five

Hundred Dollars ($7,500.00) for the 2005 tax year and

Ten Thousand Dollars ($10,000.00) for the 2006 tax

year and all subsequent tax years.

14. In taxable years beginning after December 31, 1999, for an

individual engaged in production agriculture who has filed a

Schedule F form with the taxpayer’s federal income tax return for

such taxable year, there shall be excluded from taxable income any

amount which was included as federal taxable income or federal

adjusted gross income and which consists of the discharge of an

obligation by a creditor of the taxpayer incurred to finance the

production of agricultural products.

15. In taxable years beginning December 31, 2000, an amount

equal to one hundred percent (100%) of the amount of any scholarship

or stipend received from participation in the Oklahoma Police Corps

Program, as established in Section 2-140.3 of Title 47 of the

Oklahoma Statutes shall be exempt from taxable income.

16. a. In taxable years beginning after December 31, 2001,

and before January 1, 2005, there shall be allowed a

deduction in the amount of contributions to accounts

established pursuant to the Oklahoma College Savings

Plan Act. The deduction shall equal the amount of

contributions to accounts, but in no event shall the

deduction for each contributor exceed Two Thousand

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1015

Five Hundred Dollars ($2,500.00) each taxable year for

each account.

b. In taxable years beginning after December 31, 2004,

each taxpayer shall be allowed a deduction for

contributions to accounts established pursuant to the

Oklahoma College Savings Plan Act. The maximum annual

deduction shall equal the amount of contributions to

all such accounts plus any contributions to such

accounts by the taxpayer for prior taxable years after

December 31, 2004, which were not deducted, but in no

event shall the deduction for each tax year exceed Ten

Thousand Dollars ($10,000.00) for each individual

taxpayer or Twenty Thousand Dollars ($20,000.00) for

taxpayers filing a joint return. Any amount of a

contribution that is not deducted by the taxpayer in

the year for which the contribution is made may be

carried forward as a deduction from income for the

succeeding five (5) years. For taxable years

beginning after December 31, 2005, deductions may be

taken for contributions and rollovers made during a

taxable year and up to April 15 of the succeeding

year, or the due date of a taxpayer’s state income tax

return, excluding extensions, whichever is later.

Provided, a deduction for the same contribution may

not be taken for two (2) different taxable years.

c. In taxable years beginning after December 31, 2006,

deductions for contributions made pursuant to

subparagraph b of this paragraph shall be limited as

follows:

(1) for a taxpayer who qualified for the five-year

carryforward election and who takes a rollover or

nonqualified withdrawal during that period, the

tax deduction otherwise available pursuant to

subparagraph b of this paragraph shall be reduced

by the amount which is equal to the rollover or

nonqualified withdrawal, and

(2) for a taxpayer who elects to take a rollover or

nonqualified withdrawal within the same tax year

in which a contribution was made to the

taxpayer’s account, the tax deduction otherwise

available pursuant to subparagraph b of this

paragraph shall be reduced by the amount of the

contribution which is equal to the rollover or

nonqualified withdrawal.

d. If a taxpayer elects to take a rollover on a

contribution for which a deduction has been taken

pursuant to subparagraph b of this paragraph within

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1016

one (1) year of the date of contribution, the amount

of such rollover shall be included in the adjusted

gross income of the taxpayer in the taxable year of

the rollover.

e. If a taxpayer makes a nonqualified withdrawal of

contributions for which a deduction was taken pursuant

to subparagraph b of this paragraph, such nonqualified

withdrawal and any earnings thereon shall be included

in the adjusted gross income of the taxpayer in the

taxable year of the nonqualified withdrawal.

f. As used in this paragraph:

(1) “non-qualified withdrawal” means a withdrawal

from an Oklahoma College Savings Plan account

other than one of the following:

(a) a qualified withdrawal,

(b) a withdrawal made as a result of the death

or disability of the designated beneficiary

of an account,

(c) a withdrawal that is made on the account of

a scholarship or the allowance or payment

described in Section 135(d)(1)(B) or (C) or

by the Internal Revenue Code, received by

the designated beneficiary to the extent the

amount of the refund does not exceed the

amount of the scholarship, allowance, or

payment, or

(d) a rollover or change of designated

beneficiary as permitted by subsection F of

Section 3970.7 of Title 70 of Oklahoma

Statutes, and

(2) “rollover” means the transfer of funds from the

Oklahoma College Savings Plan to any other plan

under Section 529 of the Internal Revenue Code.

17. For tax years 2006 through 2021, retirement benefits

received by an individual from any component of the Armed Forces of

the United States in an amount not to exceed the greater of seventy-

five percent (75%) of such benefits or Ten Thousand Dollars

($10,000.00) shall be exempt from taxable income but in no case less

than the amount of the exemption provided by paragraph 13 of this

subsection. For tax year 2022 and subsequent tax years, retirement

benefits received by an individual from any component of the Armed

Forces of the United States shall be exempt from taxable income.

18. For taxable years beginning after December 31, 2006,

retirement benefits received by federal civil service retirees,

including survivor annuities, paid in lieu of Social Security

benefits shall be exempt from taxable income to the extent such

benefits are included in the federal adjusted gross income pursuant

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1017

to the provisions of Section 86 of the Internal Revenue Code, 26

U.S.C., Section 86, according to the following schedule:

a. in the taxable year beginning January 1, 2007, twenty

percent (20%) of such benefits shall be exempt,

b. in the taxable year beginning January 1, 2008, forty

percent (40%) of such benefits shall be exempt,

c. in the taxable year beginning January 1, 2009, sixty

percent (60%) of such benefits shall be exempt,

d. in the taxable year beginning January 1, 2010, eighty

percent (80%) of such benefits shall be exempt, and

e. in the taxable year beginning January 1, 2011, and

subsequent taxable years, one hundred percent (100%)

of such benefits shall be exempt.

19. a. For taxable years beginning after December 31, 2007, a

resident individual may deduct up to Ten Thousand

Dollars ($10,000.00) from Oklahoma adjusted gross

income if the individual, or the dependent of the

individual, while living, donates one or more human

organs of the individual to another human being for

human organ transplantation. As used in this

paragraph, “human organ” means all or part of a liver,

pancreas, kidney, intestine, lung, or bone marrow. A

deduction that is claimed under this paragraph may be

claimed in the taxable year in which the human organ

transplantation occurs.

b. An individual may claim this deduction only once, and

the deduction may be claimed only for unreimbursed

expenses that are incurred by the individual and

related to the organ donation of the individual.

c. The Oklahoma Tax Commission shall promulgate rules to

implement the provisions of this paragraph which shall

contain a specific list of expenses which may be

presumed to qualify for the deduction. The Tax

Commission shall prescribe necessary requirements for

verification.

20. For taxable years beginning after December 31, 2009, there

shall be exempt from taxable income any amount received by the

beneficiary of the death benefit for an emergency medical technician

or a registered emergency medical responder provided by Section 1-

2505.1 of Title 63 of the Oklahoma Statutes.

21. For taxable years beginning after December 31, 2008,

taxable income shall be increased by any unemployment compensation

exempted under Section 85(c) of the Internal Revenue Code, 26

U.S.C., Section 85(c)(2009).

22. For taxable years beginning after December 31, 2008, there

shall be exempt from taxable income any payment in an amount less

than Six Hundred Dollars ($600.00) received by a person as an award

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1018

for participation in a competitive livestock show event. For

purposes of this paragraph, the payment shall be treated as a

scholarship amount paid by the entity sponsoring the event and the

sponsoring entity shall cause the payment to be categorized as a

scholarship in its books and records.

23. For taxable years beginning on or after January 1, 2016,

taxable income shall be increased by any amount of state and local

sales or income taxes deducted under 26 U.S.C., Section 164 of the

Internal Revenue Code. If the amount of state and local taxes

deducted on the federal return is limited, taxable income on the

state return shall be increased only by the amount actually deducted

after any such limitations are applied.

24. For taxable years beginning after December 31, 2020, each

taxpayer shall be allowed a deduction for contributions to accounts

established pursuant to the Achieving a Better Life Experience

(ABLE) Program as established in Section 4001.1 et seq. of Title 56

of the Oklahoma Statutes. For any tax year, the deduction provided

for in this paragraph shall not exceed Ten Thousand Dollars

($10,000.00) for an individual taxpayer or Twenty Thousand Dollars

($20,000.00) for taxpayers filing a joint return. Any amount of

contribution not deducted by the taxpayer in the tax year for which

the contribution is made may be carried forward as a deduction from

income for up to five (5) tax years. Deductions may be taken for

contributions made during the tax year and through April 15 of the

succeeding tax year, or through the due date of a taxpayer’s state

income tax return excluding extensions, whichever is later.

Provided, a deduction for the same contribution may not be taken in

more than one (1) tax year.

F. 1. For taxable years beginning after December 31, 2004, a

deduction from the Oklahoma adjusted gross income of any individual

taxpayer shall be allowed for qualifying gains receiving capital

treatment that are included in the federal adjusted gross income of

such individual taxpayer during the taxable year.

2. As used in this subsection:

a. “qualifying gains receiving capital treatment” means

the amount of net capital gains, as defined in Section

1222(11) of the Internal Revenue Code, included in an

individual taxpayer’s federal income tax return that

result from:

(1) the sale of real property or tangible personal

property located within Oklahoma that has been

directly or indirectly owned by the individual

taxpayer for a holding period of at least five

(5) years prior to the date of the transaction

from which such net capital gains arise,

(2) the sale of stock or the sale of a direct or

indirect ownership interest in an Oklahoma

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1019

company, limited liability company, or

partnership where such stock or ownership

interest has been directly or indirectly owned by

the individual taxpayer for a holding period of

at least two (2) years prior to the date of the

transaction from which the net capital gains

arise, or

(3) the sale of real property, tangible personal

property or intangible personal property located

within Oklahoma as part of the sale of all or

substantially all of the assets of an Oklahoma

company, limited liability company, or

partnership or an Oklahoma proprietorship

business enterprise where such property has been

directly or indirectly owned by such entity or

business enterprise or owned by the owners of

such entity or business enterprise for a period

of at least two (2) years prior to the date of

the transaction from which the net capital gains

arise,

b. “holding period” means an uninterrupted period of

time. The holding period shall include any additional

period when the property was held by another

individual or entity, if such additional period is

included in the taxpayer’s holding period for the

asset pursuant to the Internal Revenue Code,

c. “Oklahoma company,” “limited liability company,” or

“partnership” means an entity whose primary

headquarters have been located in Oklahoma for at

least three (3) uninterrupted years prior to the date

of the transaction from which the net capital gains

arise,

d. “direct” means the individual taxpayer directly owns

the asset,

e. “indirect” means the individual taxpayer owns an

interest in a pass-through entity (or chain of pass-

through entities) that sells the asset that gives rise

to the qualifying gains receiving capital treatment.

(1) With respect to sales of real property or

tangible personal property located within

Oklahoma, the deduction described in this

subsection shall not apply unless the pass-

through entity that makes the sale has held the

property for not less than five (5) uninterrupted

years prior to the date of the transaction that

created the capital gain, and each pass-through

entity included in the chain of ownership has

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1020

been a member, partner, or shareholder of the

pass-through entity in the tier immediately below

it for an uninterrupted period of not less than

five (5) years.

(2) With respect to sales of stock or ownership

interest in or sales of all or substantially all

of the assets of an Oklahoma company, limited

liability company, partnership or Oklahoma

proprietorship business enterprise, the deduction

described in this subsection shall not apply

unless the pass-through entity that makes the

sale has held the stock or ownership interest for

not less than two (2) uninterrupted years prior

to the date of the transaction that created the

capital gain, and each pass-through entity

included in the chain of ownership has been a

member, partner or shareholder of the pass-

through entity in the tier immediately below it

for an uninterrupted period of not less than two

(2) years. For purposes of this division,

uninterrupted ownership prior to July 1, 2007,

shall be included in the determination of the

required holding period prescribed by this

division, and

f. “Oklahoma proprietorship business enterprise” means a

business enterprise whose income and expenses have

been reported on Schedule C or F of an individual

taxpayer’s federal income tax return, or any similar

successor schedule published by the Internal Revenue

Service and whose primary headquarters have been

located in Oklahoma for at least three (3)

uninterrupted years prior to the date of the

transaction from which the net capital gains arise.

G. 1. For purposes of computing its Oklahoma taxable income

under this section, the dividends-paid deduction otherwise allowed

by federal law in computing net income of a real estate investment

trust that is subject to federal income tax shall be added back in

computing the tax imposed by this state under this title if the real

estate investment trust is a captive real estate investment trust.

2. For purposes of computing its Oklahoma taxable income under

this section, a taxpayer shall add back otherwise deductible rents

and interest expenses paid to a captive real estate investment trust

that is not subject to the provisions of paragraph 1 of this

subsection. As used in this subsection:

a. the term “real estate investment trust” or “REIT”

means the meaning ascribed to such term in Section 856

of the Internal Revenue Code,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1021

b. the term “captive real estate investment trust” means

a real estate investment trust, the shares or

beneficial interests of which are not regularly traded

on an established securities market and more than

fifty percent (50%) of the voting power or value of

the beneficial interests or shares of which are owned

or controlled, directly or indirectly, or

constructively, by a single entity that is:

(1) treated as an association taxable as a

corporation under the Internal Revenue Code, and

(2) not exempt from federal income tax pursuant to

the provisions of Section 501(a) of the Internal

Revenue Code.

The term shall not include a real estate investment

trust that is intended to be regularly traded on an

established securities market, and that satisfies the

requirements of Section 856(a)(5) and (6) of the U.S.

Internal Revenue Code by reason of Section 856(h)(2)

of the Internal Revenue Code,

c. the term “association taxable as a corporation” shall

not include the following entities:

(1) any real estate investment trust as defined in

paragraph a of this subsection other than a

“captive real estate investment trust”,

(2) any qualified real estate investment trust

subsidiary under Section 856(i) of the Internal

Revenue Code, other than a qualified REIT

subsidiary of a “captive real estate investment

trust”,

(3) any Listed Australian Property Trust (meaning an

Australian unit trust registered as a “Managed

Investment Scheme” under the Australian

Corporations Act in which the principal class of

units is listed on a recognized stock exchange in

Australia and is regularly traded on an

established securities market), or an entity

organized as a trust, provided that a Listed

Australian Property Trust owns or controls,

directly or indirectly, seventy-five percent

(75%) or more of the voting power or value of the

beneficial interests or shares of such trust, or

(4) any Qualified Foreign Entity, meaning a

corporation, trust, association or partnership

organized outside the laws of the United States

and which satisfies the following criteria:

(a) at least seventy-five percent (75%) of the

entity’s total asset value at the close of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1022

its taxable year is represented by real

estate assets, as defined in Section

856(c)(5)(B) of the Internal Revenue Code,

thereby including shares or certificates of

beneficial interest in any real estate

investment trust, cash and cash equivalents,

and U.S. Government securities,

(b) the entity receives a dividend-paid

deduction comparable to Section 561 of the

Internal Revenue Code, or is exempt from

entity level tax,

(c) the entity is required to distribute at

least eighty-five percent (85%) of its

taxable income, as computed in the

jurisdiction in which it is organized, to

the holders of its shares or certificates of

beneficial interest on an annual basis,

(d) not more than ten percent (10%) of the

voting power or value in such entity is held

directly or indirectly or constructively by

a single entity or individual, or the shares

or beneficial interests of such entity are

regularly traded on an established

securities market, and

(e) the entity is organized in a country which

has a tax treaty with the United States.

3. For purposes of this subsection, the constructive ownership

rules of Section 318(a) of the Internal Revenue Code, as modified by

Section 856(d)(5) of the Internal Revenue Code, shall apply in

determining the ownership of stock, assets, or net profits of any

person.

4. A real estate investment trust that does not become

regularly traded on an established securities market within one (1)

year of the date on which it first becomes a real estate investment

trust shall be deemed not to have been regularly traded on an

established securities market, retroactive to the date it first

became a real estate investment trust, and shall file an amended

return reflecting such retroactive designation for any tax year or

part year occurring during its initial year of status as a real

estate investment trust. For purposes of this subsection, a real

estate investment trust becomes a real estate investment trust on

the first day it has both met the requirements of Section 856 of the

Internal Revenue Code and has elected to be treated as a real estate

investment trust pursuant to Section 856(c)(1) of the Internal

Revenue Code.