Okla. Stat. tit. 68, § 68-1909 — OK Code / Title 68 / Section 68-1909
Property in more than one county - Apportionment
Status: in_force

When property is in more than one county, or when the real

property covered by a mortgage is assessed in more than one county,

it shall be the duty of the county treasurer of the county where

said mortgage is offered for taxation to ascertain the assessed

value of the property in each county and to apportion the amount

upon which the tax shall be paid to the county treasurer in each of

the said counties upon the basis of the relative assessments. Where

the mortgage is a first lien upon the real property situate in

another county, it shall be his duty to apportion the amount of the

tax property to be credited to said county by ascertaining the

valuation of each parcel as appears from the last preceding

assessment roll of the county in which such parcel is located, after

deducting therefrom the taxable amount of any prior lien. If,

however, the whole or a part of the property covered by the mortgage

in a county is not assessed in the last preceding assessment roll or

rolls of said county in which it is located, or is assessed as a

part of a larger tract in such a manner that the assessed value

cannot be determined from the assessment rolls or roll, or

improvements have been made upon the property so assessed, the

county treasurer may determine the value of the property covered by

the mortgage and for such purpose may require the mortgagor or

mortgagee to furnish him with proofs as to such facts as he deems

necessary for the purpose of computing such value, and the value so

determined shall be deemed to be the assessed value for the purpose

of such apportionment. When the real property covered by a mortgage

is located partly within the state and partly without the state, it

shall be the duty of the county treasurer to whom said mortgage is

offered for taxation to determine what proportion shall be taxable

under this article by determining the relative value of the

mortgaged property within this state as compared to the total value

of the entire mortgaged property, taking into consideration in so

doing the amount of all prior encumbrances upon such property or any

portion thereof. If a mortgage covering property located partly

within the state and partly without the state is presented for

taxation before such determination has been made, then there may be

presented to the recording officers, with such mortgage, or at the

time when the first advance is made on prior advance mortgage as

provided in Section 1911 of this article, a statement in duplicate

verified by the mortgagor or an officer or a duly authorized agent

or attorney of the mortgagor, specifying the value of the property

Oklahoma Statutes - Title 68. Revenue and Taxation Page 710

covered by the mortgage within the state and the property covered by

the mortgage without the state, stated separately. Such statements

shall be filed with the county treasurer. The tax payable under

this article shall be computed upon such properties of the principal

indebtedness secured by the mortgage or of the sum advanced thereon,

as the case may be, as the value of the mortgaged property within

the state shall bear to the total value of the entire mortgaged

property, as set forth in such statement. In determining the

separate values of the property covered by any such mortgage within

and without the state for the purpose of ascertaining the proportion

of the principal indebtedness secured by the mortgage which is

taxable under this Article, the county treasurer shall consider only

the value of the tangible property covered by each mortgage, taking

into consideration in so doing the amount of all prior encumbrances

thereon. For the purpose of determining such value the county

treasurer may require the mortgagor or mortgagee to furnish him by

affidavit or verified report such information or data as he deems

needed for the purpose, or he may take the testimony of the

mortgagor or any other person in relation thereto, and if any person

whose testimony is desired can be found within the state, may

require him by subpoena to attend before him at a specified time and

place for the purpose of testifying in relation to the value of said

property. He may also determine at the same time the proportion of

the tax which shall be paid by the county treasurer who has received

the same to the several county treasurers of the respective counties

in the state in which parts of the mortgaged property are situated.

When such county treasurer shall pay any portion of such tax to the

county treasurer of any other county, he shall at the same time file

in the office of the county clerk of such county a brief description

of the mortgage on which such tax is paid sufficient to identify the

same, together with a statement of the payment of such tax, and the

amount thereof, and the county clerk of such other county shall note

on the margin of the record of such mortgage the fact of such

payment, attested by his signature.
Okla. Stat. tit. 68, § 68-113 — OK Code / Title 68 / Section 68-113
Tax Commission Reimbursement Fund - Full-time employees
Status: in_force

A. There is hereby created in the State Treasury a revolving

fund for the Oklahoma Tax Commission to be known as the “Tax

Commission Reimbursement Fund”. The revolving fund shall consist of

any funds received by the Tax Commission for data processing

services or equipment rental and any funds received by the Tax

Commission from any incorporated city, town, or county pursuant to a

contractual agreement for the augmentation of the enforcement and

collection of municipal or county taxes entered into pursuant to the

provisions of Sections 1371 or 2702 of this title. The Tax

Commission is authorized to hire full-time-equivalent employees as

necessary to perform such duties as to fulfill contractual

agreements authorized pursuant to Sections 1371 and 2702 of this

title, however, such employees hired to perform such contractual

duties shall be supported solely by funds in the Tax Commission

Reimbursement Fund which are collected by the Tax Commission from

incorporated cities, towns, and counties pursuant to such

contractual agreements and such employees shall be terminated upon

the discontinuation of such funds or inadequate funds to support

such positions. Such full-time-equivalent employees shall be in the

unclassified service and shall not be subject to any provisions of

the Oklahoma Personnel Act or to the Merit Rules for Employment

except leave regulations. All fees collected and apportioned to

this fund may be used by the Oklahoma Tax Commission for capital

expenditures as authorized by the Oklahoma State Legislature. For

the fiscal year beginning July 1, 2004, disbursements from the fund

shall be exempt from all agency budget limits.

B. Notwithstanding any other provision in the Oklahoma Statutes

except subsection F of Section 316 and subsection D of Section 418

Oklahoma Statutes - Title 68. Revenue and Taxation Page 52

of this title, beginning July 1, 2009, all revenue from fees and

penalties collected pursuant to Sections 304, 316, 415 and 418 of

this title shall be apportioned to the Tax Commission Reimbursement

Fund for administrative expenses incurred in connection with

enforcement of the provisions of Section 301 et seq., Section 346 et

seq., Section 401 et seq. and Section 424 et seq. of this title.
Okla. Stat. tit. 68, § 68-3137 — OK Code / Title 68 / Section 68-3137
Resale property fund
Status: reserved

A. All penalties, interest and forfeitures which may accrue on

delinquent ad valorem taxes, whether real or personal, tangible or

intangible, on any properties, persons, firms or corporations within

any county, city, town or school district within a county; the

proceeds of sale of property acquired by the county at resale, the

proceeds of leases, rentals and other royalties arising from the

management, control and operation by the county commissioners of

property acquired by the county at resale, when collected shall be

credited to and accounted for in a special cash fund to be styled

the "resale property fund" of such county, except the proceeds of

sale of such property located in any special improvement district

and by the resale of which any special improvement taxes were

canceled, in which event the proceeds of sale thereof after having

been acquired by the county shall be divided ratably between the

resale property fund and the special improvement-tax account

(paving, etc.) of the special improvement district in which such

property is located, in the same ratio as the ad valorem tax bears

to the special improvement taxes in the total amount of such taxes

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1344

published as due at the time of the resale whereby the county

acquired title to such property. That portion so accruing to such

special improvement-tax account shall, in keeping with the statutes

relating thereto, be applied to the fund provided for retirement of

bonds and interest coupons of such improvement district.

B. The resale property fund herein created for each county is

hereby declared to be a continuous fund, not subject to fiscal year

limitations, and is hereby dedicated, insofar as may be necessary,

to the enforcement of the tax laws of the state, and is authorized

to be expended for the following purposes:

1. For the purchase of necessary records, printing, supplies

and equipment, and the employment of necessary clerical personnel,

either on whole or part-time basis, in connection with delinquent

personal tax lists and personal tax warrants, delinquent real estate

tax lists and lists of unredeemed delinquent real estate subject to

tax sale or resale, such costs to be limited to those incurred by

the county treasurer;

2. For payment of the cost of advertising or publication, or

posting if publication cannot be had, of any such lists;

3. For the reimbursement of the purchaser at resale or at

commissioners' sale of any lot, tract, or parcel of real estate,

sold at resale, against which no tax was due, or where the inclusion

of such lot, tract, or parcel in the publication and offer for

resale has been held invalid by a court of competent jurisdiction,

or where the title thereto is vested in the Commissioners of the

Land Office of the State of Oklahoma, or where such Commissioners of

the Land Office have instituted or successfully terminated mortgage

foreclosure proceedings in relation thereto prior to issuance of

either a resale tax deed or a county commissioners' deed, or where

such tract or parcel was nontaxable at the time of the assessment

thereof for taxes, or where the sale thereof to such purchaser was

illegal for any other reason; and such purchaser has no adequate

recourse against the property thus sold; such reimbursement shall be

made in the order of the claims filed with the county treasurer

therefore, when properly supported by evidence satisfactory to said

treasurer that the claimant is entitled to reimbursement hereunder.

Provided, however, that no claim for refund not filed, as herein

provided, within a period of three (3) years from the date of such

sale shall be allowed or paid from said fund;

4. For all rebates allowed under authority of statute by the

board of county commissioners or the tax roll correction board of

the county upon taxes found to have been illegally or erroneously

collected, or on sale of certificate or issue of tax deed on lands

or lots on which no tax was due or as to which the sale thereof is

or was illegal for any reason. Provided, however, before the owner

of such invalid deed may be reimbursed as aforesaid, he shall first

be required to divest himself of purported title by attaching a

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1345

quitclaim deed or other disclaimer to his claim for refund, setting

out the reason for invalidity of the tax deed. The same procedure

for refund shall apply whether the tax deed be from the county

treasurer or the chairman of the board of county commissioners. The

determination of whether such property has been erroneously sold for

taxes to such purchaser, shall be made by the board of county

commissioners; and in event title under an invalid resale tax deed

remains with the county commissioners, the board of county

commissioners so finding same invalid shall execute its resolution

or order of disclaimer which shall be filed in the deed records of

the county clerk without fee. No fee shall be charged for recording

any quitclaim deed or disclaimer from the purchaser under the

provisions of this section; and

5. To pay general operating expenses for the county treasurer's

office.

C. The expenditures so made shall be made only upon sworn

itemized claims approved by the county treasurer and filed with the

county clerk and paid by cash voucher drawn by the county clerk

payable from said fund. Claims for cost of publication shall take

precedence over all other claims on said fund, otherwise said

approved claims shall be paid in the order filed as funds accrue

from sale of county property as hereinbefore provided. If any such

claim has not been paid within three (3) years, the same shall cease

to be an obligation of the resale property fund of such county; but

nothing in this article shall operate to prevent the payment for

such services from an appropriation for such purpose in the general

fund of the county in the manner and under the restrictions provided

by law.

D. Any residue of cash actually on hand in said fund at any

time, after providing for the expense of delinquent tax publication,

and for the mandatory holding of sales and resales, made or about to

be made, the purchase of necessary records, printing and supplies

and the payment of clerical hire, such expenditures, or reserve

therefor, to be limited to the necessary expenses incurred by virtue

of the authorization herein granted, may be expended by the county

commissioners, without further appropriation, in the upkeep, repair

and maintenance of unsold properties acquired by the county at

resale, by the issuance of cash warrants on such fund in payment of

sworn itemized claims therefor; limited in amount to the sum

certified to by the county treasurer as being actually on hand in

excess of the amount reserved for the purposes hereinbefore stated.

E. On or before the 30th of June of each year the county

treasurer shall file a financial statement of the resale property

fund with the county clerk for the approval of the board of county

commissioners, setting forth the necessary reserves for expenditures

either made or anticipated, to cover:

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1346

1. The cost of preparing and making delinquent tax

publications, as hereinbefore set out;

2. The purchase of necessary records, printing and supplies and

the payment of clerical hire, such reserves therefor, to be limited

to the necessary expenses incurred by virtue of the authorization

herein granted;

3. To pay claims and encumbrances for the upkeep, repair and

maintenance of unsold properties;

4. To pay all rebates allowed under authority of statute by the

board of county commissioners or the board of tax roll corrections

upon taxes found to have been illegally or erroneously collected;

5. To pay for tax sale certificates or issue of deeds on lands

or lots on which no tax was due or as to which the sale thereof was

illegal for any reason; and

6. To pay general operating expenses for the county treasurer's

office.

F. Any balance remaining on hand over and above the necessary

reserves for the above mentioned items shall be apportioned

forthwith by the county treasurer in the following manner:

1. In each county having a net assessed valuation in excess of

Eight Million Dollars ($8,000,000.00):

a. one-third (1/3) of such surplus residue to such county

to be applied first to the payment of delinquent

warrants of such county, thereafter to its current

general fund,

b. one-third (1/3) to the cities and towns of such

county, in the ratio that the last certified assessed

valuation of each bears to the total such assessed

valuation of all such cities and towns in such county,

to be by each of them applied in the payment of any

delinquent warrants of such city or town, thereafter

to its current general fund, and

c. one-third (1/3) to the various school districts of the

county on a scholastic enumeration basis, to be

applied by each of them to the payment of any

delinquent warrants of such district and thereafter to

its current general fund.

2. In each county having a net assessed valuation of Eight

Million Dollars ($8,000,000.00) or less:

a. In the ratio that the county, city or town and school

district levy bears to the fifteen-mill levy as

allocated by the county excise board.

b. Such surplus to the cities and towns of such county in

the ratio that the last certified assessed valuation

of each bears to the total assessed valuation of all

such cities or towns in such county.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1347

c. Such surplus to the school districts of the county on

a scholastic enumeration basis.

d. The amounts apportioned to each county, city or town

and school district shall be applied by each of them

to the payment of any delinquent warrants of such

municipality and thereafter to its current general

fund.

G. Nothing in this section shall be construed to repeal, amend,

alter or modify any of the provisions of Sections 2479 or 2480 of

this article, but shall be construed to be cumulative thereto.
Okla. Stat. tit. 68, § 68-2869 — OK Code / Title 68 / Section 68-2869
Extension of tax levies on tax rolls - Delivery of tax
Status: in_force

rolls to county treasurer - Filing abstract of tax rolls -

Correction of levy or tax rolls - Assessor's warrant - Receipt and

acceptance of tax rolls - Collection of taxes.

A. It shall be the duty of the county assessor to proceed to

extend the tax levies on his tax rolls immediately upon receipt of

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1202

the certification of such levies from the county excise board,

without regard to any protest that may be filed against any levy.

B. It shall further be the duty of the county assessor to

deliver the tax rolls to the county treasurer when the same shall

have been completed, and at the same time to file a true and

correct abstract of such tax rolls with the county clerk, which

abstract shall be made on forms prescribed by and in the manner

required by the State Auditor and Inspector. The county clerk shall

charge the county treasurer with the amount contained in said

abstract.

C. If there is any correction or change in the levy of any

municipality, after such levy has been certified by the county

excise board to the county assessor, regardless of whether such

change is made by order of the county excise board or by a court of

competent jurisdiction, it shall be the duty of the county assessor

to deliver the tax rolls to the county treasurer, without regard to

such change; and it shall be the duty of the county treasurer, with

the assistance of the county assessor, to make the necessary

corrections on the tax rolls after the same shall have been

delivered to the county treasurer.

D. The county assessor shall, notwithstanding the filing of any

protest against the levies or budgets or the pendency of any

procedure with reference to the correctness of the assessment of any

property or as to the legality of any levy, complete the tax rolls

and abstract thereof, and deliver the same to the county treasurer

and county clerk, respectively, on or before the first day of

October of each year.

E. The county assessor shall attach to the tax rolls his

warrant, under his own hand, requiring the county treasurer to

collect the taxes in accordance with said tax rolls, and such

warrant and tax rolls shall be full and sufficient authority for the

collection by the county treasurer of all taxes therein contained.

No informality in the foregoing requirement shall render illegal any

proceeding for the collection of taxes.

F. The county treasurer shall accept the tax rolls and give his

receipt therefor; and upon the date fixed when taxes shall become

due and payable to the county treasurer shall proceed to collect the

taxes as provided by law.abstract of tax rolls - Correction of levy or tax rolls - Assessor's warrant - Receipt and acceptance of
Okla. Stat. tit. 68, § 68-1363 — OK Code / Title 68 / Section 68-1363
Classification of vendors
Status: in_force

Classification of vendors.

For the purpose of this article, all vendors are classified into

five groups:

1. Group One, vendors who are regularly and continuously

engaged in a business at an established place of business and make

sales subject to this article;

2. Group Two, vendors who occasionally make sales or become

subject to this article;

3. Group Three, vendors who are transient persons, firms or

corporations and make seasonal sales or in any manner become subject

to this article, or vendors, either within or without this state,

who make sales, subject to this article, through peddlers,

solicitors or other salesmen who do not have established places of

business in this state;

4. Group Four, vendors who continuously, regularly or

systematically engage in retail sales to the Oklahoma consumer by

solicitation through display of products by advertisement in

newspapers, or radio or television media located in this state and

make sales subject to this article; or vendors who continuously,

regularly or systematically engage in retail sales to the consumer

within Oklahoma by solicitation by advertisement through mail order

or catalog publications; and

5. Group Five, vendors who hold a valid license pursuant to

Section 33 of this act remitting sales tax based upon the use of

motor fuel or diesel fuel as a sale defined pursuant to Section 1352

of this title.
Okla. Stat. tit. 68, § 68-304 — OK Code / Title 68 / Section 68-304
Licenses - Fees - Conditions - Revocation or suspension
Status: in_force

A. Every manufacturer and wholesaler of cigarettes in this

state, as a condition of carrying on such business, shall annually

secure from the Oklahoma Tax Commission a written license, and shall

pay therefor an annual fee of Two Hundred Fifty Dollars ($250.00).

Application for such license, which shall be made upon such forms as

prescribed by the Oklahoma Tax Commission, shall include the

following:

1. The applicant’s agreement to the jurisdiction of the Tax

Commission and the courts of this state for the purpose of

enforcement of the provisions of Section 301 et seq. of this title;

2. The applicant’s agreement to abide by the provisions of

Section 301 et seq. of this title and the rules promulgated by the

Tax Commission with reference thereto;

3. The wholesaler applicant’s agreement to sell cigarettes only

to licensed retailers or Indian tribal entities or licensees of

Indian tribal entities; and

4. The manufacturer applicant's agreement to sell cigarettes

only to a licensed wholesaler.

This license, which will be for the ensuing year, must at all

times be displayed in a conspicuous place so that it can be seen.

Persons operating more than one place of business must secure a

license for each place of business. "Place of business" shall be

construed to include the place where orders are received, or where

cigarettes are sold. A "place of business" cannot be a location

with a physical residential address. The Tax Commission shall not

issue a license for a place of business with a physical residential

address. If cigarettes are sold on or from any vehicle, the vehicle

shall constitute a place of business and the regular license fee

shall be paid with respect thereto. However, if the vehicle is

owned or operated by a place of business for which the regular fee

is paid, the annual fee for the license with respect to such vehicle

shall be only Ten Dollars ($10.00). The expiration for such vehicle

license shall expire on the same date as the current license of the

place of business.

Provided, that the Tax Commission shall not authorize the use of

a stamp-metering device by any manufacturer or wholesaler who does

not maintain a warehouse or wholesale establishment or place of

business within the State of Oklahoma from which cigarettes are

received, stocked and sold and where such metering device is kept

and used; but the Tax Commission may, in its discretion, permit the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 159

use of such metering device by manufacturers and wholesalers of

cigarettes residing wholly within another state where such state

permits a licensed Oklahoma resident, manufacturer or wholesaler of

cigarettes the use of the metering device of such state without

first requiring that such manufacturer or wholesaler establish a

place of business in such other state. The provisions of this

subsection relating to metering devices shall not apply to states

which do not require the affixing of tax stamps to packages of

cigarettes before same are offered for sale in such states.

B. Every retailer in this state, except Indian tribal entities

or licenses of Indian tribal entities, as a condition of carrying on

such business, shall secure from the Tax Commission a license and

shall pay therefor a fee of Thirty Dollars ($30.00). Application

for such license, which shall be made upon such forms as prescribed

by the Tax Commission, shall include the following:

1. The applicant’s agreement to the jurisdiction of the Tax

Commission and the courts of this state for the purpose of

enforcement of the provisions of Section 301 et seq. of this title;

2. The applicant’s agreement to abide by the provisions of

Section 301 et seq. of this title and the rules promulgated by the

Tax Commission with reference thereto;

3. The applicant’s agreement that it shall not purchase any

cigarettes for resale from a supplier that does not hold a current

wholesaler’s license issued pursuant to this section; and

4. The applicant’s agreement to sell cigarettes only to

consumers.

Such license, which will be for the ensuing three (3) years,

must at all times be displayed in a conspicuous place so that it can

be seen. Upon expiration of such license, the retailer to whom such

license was issued may obtain a renewal license which shall be valid

for three (3) years. The manner and prorated fee for renewals shall

be prescribed by the Tax Commission. Every person operating under

such license as a retailer and who owns or operates more than one

place of business must secure a license for each place of business.

"Place of business" shall be construed to include places where

orders are received or where cigarettes are sold. A "place of

business" cannot be a location with a physical residential address.

The Tax Commission shall not issue a license for a place of business

with a physical residential address.

C. Every distributing agent shall, as a condition of carrying

on such business, pursuant to written application on a form

prescribed by and in such detailed form as the Tax Commission may

require, annually secure from the Tax Commission a license, and

shall pay therefor an annual fee of One Hundred Dollars ($100.00).

An application shall be filed and a license obtained for each place

of business owned or operated by a distributing agent. The license,

which will be for the ensuing year, shall be consecutively numbered,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 160

nonassignable and nontransferable, and shall authorize the storing

and distribution of unstamped cigarettes within this state when such

distribution is made upon interstate orders only.

D. 1. All wholesale, retail, and distributing agent's licenses

shall be nonassignable and nontransferable from one person to

another person. Such licenses may be transferred from one location

to another location after an application has been filed with the Tax

Commission requesting such transfer and after the approval of the

Tax Commission.

2. Wholesale, retail, and distributing agent's licenses shall

be applied for on a form prescribed by the Tax Commission. Any

person operating as a wholesaler, retailer, or distributing agent

must at all times have a valid license which has been issued by the

Tax Commission. If any such person or licensee continues to operate

as such on a license issued by the Tax Commission which has expired,

or operates without ever having obtained from the Tax Commission

such license, such person or licensee shall, after becoming

delinquent for a period in excess of fifteen (15) days, pay to the

Tax Commission, in addition to the annual license fee, a penalty of

twenty-five cents ($0.25) per day on each delinquent license for

each day so operated in excess of fifteen (15) days. The penalty

provided for herein shall not exceed the annual license fee for such

license.

E. No license may be granted, maintained or renewed if any of

the following conditions applies to the applicant. For purposes of

this section, "applicant" includes any combination of persons owning

directly or indirectly, in the aggregate, more than ten percent

(10%) of the ownership interests in the applicant:

1. The applicant owes Five Hundred Dollars ($500.00) or more in

delinquent cigarette taxes;

2. The applicant had a cigarette manufacturer, wholesaler,

retailer or distributor license revoked by the Tax Commission within

the past two (2) years;

3. The applicant has been convicted of a crime relating to

stolen or counterfeit cigarettes, or receiving stolen or counterfeit

cigarettes or has been convicted of or has entered a plea of guilty

or nolo contendere to any felony;

4. If the applicant is a cigarette manufacturer, the applicant

is neither:

a. a participating manufacturer as defined in Section II

(jj) of the Master Settlement Agreement as defined in

Section 600.22 of Title 37 of the Oklahoma Statutes,

nor

b. in full compliance with the provisions of paragraph 2

of subsection A of Section 600.23 of Title 37 of the

Oklahoma Statutes;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 161

5. If the applicant is a cigarette manufacturer, if any

cigarette imported by such applicant is imported into the United

States in violation of 19 U.S.C., Section 1681a; or

6. If the applicant is a cigarette manufacturer, if any

cigarette imported or manufactured by the applicant does not fully

comply with the Federal Cigarette Labeling and Advertising Act, 15

U.S.C., Section 1331 et seq.

F. No person or entity licensed pursuant to the provisions of

this section shall purchase cigarettes from or sell cigarettes to a

person or entity required to obtain a license unless such person or

entity has obtained such license.

G. No person licensed as a retailer in this state shall:

1. Sell any cigarettes to any other person licensed as a

retailer in this state unless such sale is for the purpose of moving

inventory between stores which are part of the same company; or

2. Purchase any cigarettes from any person or entity other than

a wholesaler licensed pursuant to Section 301 et seq. of this title.

H. In addition to any civil or criminal penalty provided by

law, upon a finding that a licensee has violated any provision of

Section 301 et seq. of this title, the Tax Commission may revoke or

suspend the license or licenses of the licensee pursuant to the

procedures applicable to revocation of a license set forth in

Section 316 of this title.

I. The Tax Commission shall create and maintain a web site

setting forth all current valid licenses and the identity of

licensees holding such licenses, and shall update the site no less

frequently than once per month.
Okla. Stat. tit. 68, § 68-1357v1 — OK Code / Title 68 / Section 68-1357v1
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;

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 527

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;

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 528

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;

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 529

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, or

b. Interstate and International "900 service". "900

service" means an inbound toll "telecommunications

service" purchased by a subscriber that allows the

subscriber's customers to call in to the subscriber's

prerecorded announcement or live service. "900

service" does not include the charge for: collection

services provided by the seller of the

"telecommunications services" to the subscriber, or

service or product sold by the subscriber to the

subscriber's customer. The service is typically

marketed under the name "900 service", and any

subsequent numbers designated by the Federal

Communications Commission,

c. Interstate and International "private communications

service". "Private communications service" means a

"telecommunications service" that entitles the

customer to exclusive or priority use of a

communications channel or group of channels between or

among termination points, regardless of the manner in

Oklahoma Statutes - Title 68. Revenue and Taxation Page 530

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,

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 531

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

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;

Oklahoma Statutes - Title 68. Revenue and Taxation Page 532

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;

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

Oklahoma Statutes - Title 68. Revenue and Taxation Page 533

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 has previously received the sales tax

exemption pursuant to this subparagraph, no

registration with the veterans registry shall be

required, 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. Sales for the benefit of an

eligible person to a spouse of the eligible person or

to a member of the household in which the eligible

person resides and who is authorized to make purchases

on the person's behalf, when such eligible person is

not present at the sale, shall also be exempt for

purposes of this paragraph. The Oklahoma Tax

Commission shall issue a separate exemption card to a

spouse of an eligible person or to a member of the

household in which the eligible person resides who is

authorized to make purchases on the person's behalf,

if requested by the eligible person. Sales qualifying

for the exemption authorized by this paragraph shall

Oklahoma Statutes - Title 68. Revenue and Taxation Page 534

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 section;

35. Sales of electricity to the operator, specifically

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

from which oil is produced or attempted to be produced using

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

pressure in a producing formation through the use of water or

saltwater if the electrical usage is associated with and necessary

for the operation of equipment required to inject or circulate

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

petroleum into a wellbore for eventual recovery and production from

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

authorized by this paragraph, the total content of oil recovered

after the use of enhanced recovery methods shall not exceed one

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

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

be applicable to any county or municipal sales tax rate;

36. Sales of intrastate charter and tour bus transportation.

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

transportation" means the transportation of persons from one

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

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

lawfully carry more than eighteen persons, and which is ordinarily

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

exemption shall not apply to regularly scheduled bus transportation

for the general public;

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

licensed chiropractor to a person who is the patient of such

Oklahoma Statutes - Title 68. Revenue and Taxation Page 535

chiropractor at the physical location where the chiropractor

provides chiropractic care or services to such patient. The

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

medicine or substance for which a prescription by a licensed

physician is required;

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

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

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

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

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

search portal" means an establishment classified under NAICS code

519130 which operates websites that use a search engine to generate

and maintain extensive databases of Internet addresses and content

in an easily searchable format;

39. Sales of tangible personal property consumed or

incorporated in the construction or expansion of a facility for a

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

Oklahoma Statutes as a rural electric cooperative. For purposes of

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

previously entered into a contractual relationship with a rural

electric cooperative for construction or expansion of a facility

shall be considered sales made to a rural electric cooperative;

40. Sales of tangible personal property or services to a

business primarily engaged in the repair of consumer electronic

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

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

storage and retrieval of information through hard-wired or wireless

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

business by the original manufacturer of such devices and the

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

qualifying for the exemption authorized by this paragraph directly

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

entity for sale to retail consumers;

41. Before July 1, 2019, sales of rolling stock when sold or

leased by the manufacturer, regardless of whether the purchaser is a

public services corporation engaged in business as a common carrier

of property or passengers by railway, for use or consumption by a

common carrier directly in the rendition of public service. For

purposes of this paragraph, "rolling stock" means locomotives,

autocars and railroad cars; and

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.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 536

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, § 68-2357.8 — OK Code / Title 68 / Section 68-2357.8
Qualified venture capital company - Annual report -
Status: in_force

Written statement to investors - Violations and penalties -

Registration system.

A. Each qualified venture capital company, as defined in

Section 2357.7 of this title, shall file an annual report within one

hundred twenty (120) days after each successive calendar year end

with the Oklahoma Tax Commission which lists all funds invested in

such company which may qualify for the tax credit allowed by Section

2357.7 of this title. Said report shall state the amount of funds

invested in such company during the taxable year by persons or

corporations, the Social Security number of such person or the

federal identification number of such corporation making such

investments, and shall include a schedule listing the type and

amount of investments made by said venture capital company together

with such other information as the Tax Commission may prescribe.

B. Each qualified venture capital company shall furnish to each

person or corporation who made an investment in such company during

the preceding year a written statement showing the name of the

venture capital company, the name of the investor, the total amount

of investments in the company made by such person or corporation and

such other information as the Tax Commission may require. Said

statement shall be attached to the income tax return of such person

or corporation in order to qualify for said tax credit.

C. Any qualified venture capital company who refuses or fails

to comply with the provisions of this section or is hereafter found

guilty in a court of competent jurisdiction of any violation of any

Oklahoma income tax law shall not be eligible to be a qualified

venture capital company for purposes of Section 2357.7 of this

title. For investments in a venture capital company made prior to

the effective date of this act, if a venture capital company does

not invest its funds in a business that meets the definition of an

“Oklahoma business venture” or the Oklahoma business venture fails

to expend the proceeds of the investment, as provided for in Section

2357.7 of this title, the venture capital company shall pay to the

Tax Commission a penalty equal to the aggregate amount of tax credit

provided to investors in such venture capital company multiplied by

a fraction, the numerator of which is a percentage equal to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 775

difference between the percentage of capitalization required to be

invested in Oklahoma business ventures and the percentage of funds

invested in Oklahoma business ventures calculated in accordance with

subparagraph b of paragraph 1 of subsection B of Section 2357.7 of

this title and the denominator of which is the percentage of

capitalization required to be invested in Oklahoma business

ventures. Provided, to the extent that the penalty cannot be

collected from the venture capital company, the penalty shall be

collected from the taxpayers to whom the tax credits have been

granted or transferred. Tax credits granted for investments in

venture capital companies made on or after the effective date of

this act shall be subject to the provisions of Section 5 of this

act.

D. Any taxpayer who refuses or fails to comply with the

provisions of this section or is hereafter found guilty in a court

of competent jurisdiction of any violation of any Oklahoma income

tax law shall not be eligible for the tax credit granted in Section

2357.7 of this title.

E. The Tax Commission is directed to immediately develop a

system for registration of any income tax credits issued pursuant to

Section 2357.7 et seq. of this title and a system which permits

verification that any tax credit claimed upon an income tax return

is validly issued and properly taken in the year of claim and

ensures that any transfers of the income tax credit are not unduly

restricted or hindered.
Okla. Stat. tit. 68, § 68-2357.14 — OK Code / Title 68 / Section 68-2357.14
Renumbered as § 2-11-301 of Title 27A by Laws 1993, c
Status: in_force

145, § 359, eff. July 1, 1993.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 784
Okla. Stat. tit. 68, § 68-2355 — OK Code / Title 68 / Section 68-2355
Tax imposed - Classes of taxpayers
Status: in_force

A. Individuals. For all taxable years beginning after December

31, 1998, and before January 1, 2006, a tax is hereby imposed upon

the Oklahoma taxable income of every resident or nonresident

individual, which tax shall be computed at the option of the

taxpayer under one of the two following methods:

1. METHOD 1.

a. Single individuals and married individuals filing

separately not deducting federal income tax:

(1) 1/2% tax on first $1,000.00 or part thereof,

(2) 1% tax on next $1,500.00 or part thereof,

(3) 2% tax on next $1,250.00 or part thereof,

(4) 3% tax on next $1,150.00 or part thereof,

(5) 4% tax on next $1,300.00 or part thereof,

(6) 5% tax on next $1,500.00 or part thereof,

(7) 6% tax on next $2,300.00 or part thereof, and

(8) (a) for taxable years beginning after December

31, 1998, and before January 1, 2002, 6.75%

tax on the remainder,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 745

(b) for taxable years beginning on or after

January 1, 2002, and before January 1, 2004,

7% tax on the remainder, and

(c) for taxable years beginning on or after

January 1, 2004, 6.65% tax on the remainder.

b. Married individuals filing jointly and surviving

spouse to the extent and in the manner that a

surviving spouse is permitted to file a joint return

under the provisions of the Internal Revenue Code of

1986, as amended, and heads of households as defined

in the Internal Revenue Code of 1986, as amended, not

deducting federal income tax:

(1) 1/2% tax on first $2,000.00 or part thereof,

(2) 1% tax on next $3,000.00 or part thereof,

(3) 2% tax on next $2,500.00 or part thereof,

(4) 3% tax on next $2,300.00 or part thereof,

(5) 4% tax on next $2,400.00 or part thereof,

(6) 5% tax on next $2,800.00 or part thereof,

(7) 6% tax on next $6,000.00 or part thereof, and

(8) (a) for taxable years beginning after December

31, 1998, and before January 1, 2002, 6.75%

tax on the remainder,

(b) for taxable years beginning on or after

January 1, 2002, and before January 1, 2004,

7% tax on the remainder, and

(c) for taxable years beginning on or after

January 1, 2004, 6.65% tax on the remainder.

2. METHOD 2.

a. Single individuals and married individuals filing

separately deducting federal income tax:

(1) 1/2% tax on first $1,000.00 or part thereof,

(2) 1% tax on next $1,500.00 or part thereof,

(3) 2% tax on next $1,250.00 or part thereof,

(4) 3% tax on next $1,150.00 or part thereof,

(5) 4% tax on next $1,200.00 or part thereof,

(6) 5% tax on next $1,400.00 or part thereof,

(7) 6% tax on next $1,500.00 or part thereof,

(8) 7% tax on next $1,500.00 or part thereof,

(9) 8% tax on next $2,000.00 or part thereof,

(10) 9% tax on next $3,500.00 or part thereof, and

(11) 10% tax on the remainder.

b. Married individuals filing jointly and surviving

spouse to the extent and in the manner that a

surviving spouse is permitted to file a joint return

under the provisions of the Internal Revenue Code of

1986, as amended, and heads of households as defined

Oklahoma Statutes - Title 68. Revenue and Taxation Page 746

in the Internal Revenue Code of 1986, as amended,

deducting federal income tax:

(1) 1/2% tax on the first $2,000.00 or part thereof,

(2) 1% tax on the next $3,000.00 or part thereof,

(3) 2% tax on the next $2,500.00 or part thereof,

(4) 3% tax on the next $1,400.00 or part thereof,

(5) 4% tax on the next $1,500.00 or part thereof,

(6) 5% tax on the next $1,600.00 or part thereof,

(7) 6% tax on the next $1,250.00 or part thereof,

(8) 7% tax on the next $1,750.00 or part thereof,

(9) 8% tax on the next $3,000.00 or part thereof,

(10) 9% tax on the next $6,000.00 or part thereof, and

(11) 10% tax on the remainder.

B. Individuals. For all taxable years beginning on or after

January 1, 2008, and ending any tax year which begins after December

31, 2015, for which the determination required pursuant to Sections

2355.1F and 2355.1G of this title is made by the State Board of

Equalization, a tax is hereby imposed upon the Oklahoma taxable

income of every resident or nonresident individual, which tax shall

be computed as follows:

1. Single individuals and married individuals filing

separately:

(a) 1/2% tax on first $1,000.00 or part thereof,

(b) 1% tax on next $1,500.00 or part thereof,

(c) 2% tax on next $1,250.00 or part thereof,

(d) 3% tax on next $1,150.00 or part thereof,

(e) 4% tax on next $2,300.00 or part thereof,

(f) 5% tax on next $1,500.00 or part thereof,

(g) 5.50% tax on the remainder for the 2008 tax year and

any subsequent tax year unless the rate prescribed by

subparagraph (h) of this paragraph is in effect, and

(h) 5.25% tax on the remainder for the 2009 and subsequent

tax years. The decrease in the top marginal

individual income tax rate otherwise authorized by

this subparagraph shall be contingent upon the

determination required to be made by the State Board

of Equalization pursuant to Section 2355.1A of this

title.

2. Married individuals filing jointly and surviving spouse to

the extent and in the manner that a surviving spouse is permitted to

file a joint return under the provisions of the Internal Revenue

Code of 1986, as amended, and heads of households as defined in the

Internal Revenue Code of 1986, as amended:

(a) 1/2% tax on first $2,000.00 or part thereof,

(b) 1% tax on next $3,000.00 or part thereof,

(c) 2% tax on next $2,500.00 or part thereof,

(d) 3% tax on next $2,300.00 or part thereof,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 747

(e) 4% tax on next $2,400.00 or part thereof,

(f) 5% tax on next $2,800.00 or part thereof,

(g) 5.50% tax on the remainder for the 2008 tax year and

any subsequent tax year unless the rate prescribed by

subparagraph (h) of this paragraph is in effect, and

(h) 5.25% tax on the remainder for the 2009 and subsequent

tax years. The decrease in the top marginal

individual income tax rate otherwise authorized by

this subparagraph shall be contingent upon the

determination required to be made by the State Board

of Equalization pursuant to Section 2355.1A of this

title.

C. Individuals. For tax years 2024 and 2025, a tax is hereby

imposed upon the Oklahoma taxable income of every resident or

nonresident individual, which tax shall be computed as follows:

1. Single individuals and married individuals filing

separately:

(a) 0.25% tax on first $1,000.00 or part thereof,

(b) 0.75% tax on next $1,500.00 or part thereof,

(c) 1.75% tax on next $1,250.00 or part thereof,

(d) 2.75% tax on next $1,150.00 or part thereof,

(e) 3.75% tax on next $2,300.00 or part thereof, and

(f) 4.75% tax on the remainder.

2. Married individuals filing jointly and surviving spouse to

the extent and in the manner that a surviving spouse is permitted to

file a joint return under the provisions of the Internal Revenue

Code of 1986, as amended, and heads of households as defined in the

Internal Revenue Code of 1986, as amended:

(a) 0.25% tax on first $2,000.00 or part thereof,

(b) 0.75% tax on next $3,000.00 or part thereof,

(c) 1.75% tax on next $2,500.00 or part thereof,

(d) 2.75% tax on next $2,300.00 or part thereof,

(e) 3.75% tax on next $4,600.00 or part thereof, and

(f) 4.75% tax on the remainder.

No deduction for federal income taxes paid shall be allowed to

any taxpayer to arrive at taxable income.

D. Individuals. For tax year 2026 and for subsequent tax years

subject to rate reductions as provided by subsection E of this

section, a tax is hereby imposed upon the Oklahoma taxable income of

every resident or nonresident individual, which tax shall be

computed as follows:

1. Single individuals and married individuals filing

separately:

(a) 0% tax on first $3,750.00 or part thereof,

(b) 2.5% tax on the next $1,150.00 or part thereof,

(c) 3.5% tax on next $2,300.00 or part thereof, and

(d) 4.5% tax on the remainder.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 748

2. Married individuals filing jointly and surviving spouse to

the extent and in the manner that a surviving spouse is permitted to

file a joint return under the provisions of the Internal Revenue

Code of 1986, as amended, and heads of households as defined in the

Internal Revenue Code of 1986, as amended:

(a) 0% tax on first $7,500.00 or part thereof,

(b) 2.5% tax on the next $2,300.00 or part thereof,

(c) 3.5% tax on next $4,600.00 or part thereof, and

(d) 4.5% tax on the remainder.

No deduction for federal income taxes paid shall be allowed to

any taxpayer to arrive at taxable income.

E. As provided by subsection D of Section 34.103 of Title 62 of

the Oklahoma Statutes, if the comparison year total collections

exceeds the base year total collections plus the income tax rate

reduction threshold, as certified by the State Board of Equalization

pursuant to paragraph 2 of subsection D of Section 34.103 of Title

62 of the Oklahoma Statutes, the tax rates otherwise prescribed in

paragraphs 1 and 2 of subsection D of this section shall each be

reduced by twenty-five one-hundredths (0.25) of a percentage point

(0.0025) until the applicable rate equals zero percent (0%). Each

successive certification by the State Board of Equalization with

respect to which the comparison year total collections exceeds the

base year total collections plus the income tax rate reduction

threshold, as determined by the State Board of Equalization as

provided by subsection D of Section 34.103 of Title 62 of the

Oklahoma Statutes, shall further reduce the individual income tax

rates by twenty-five one-hundredths (0.25) of a percentage point

(0.0025) until the applicable rate equals zero percent (0%). Any

reduction in the income tax rates authorized by this section and by

this act shall take effect on January 1 following the final

certification by the State Board of Equalization, if any, made

during its meeting in February each year.

F. If a revenue failure is declared pursuant to the provisions

of Section 34.49 of Title 62 of the Oklahoma Statutes prior to the

end of the calendar year in which the Board makes a certification

pursuant to paragraph 2 of subsection D of Section 34.103 of Title

62 of the Oklahoma Statutes, the reduction in tax rates, as

otherwise provided for in this section, shall not occur until a

subsequent certification is made by the State Board of Equalization

pursuant to paragraph 2 of subsection D of Section 34.103 of Title

62 of the Oklahoma Statutes.

G. Nonresident aliens. In lieu of the rates set forth in

subsection A above, there shall be imposed on nonresident aliens, as

defined in the Internal Revenue Code of 1986, as amended, a tax of

eight percent (8%) instead of thirty percent (30%) as used in the

Internal Revenue Code of 1986, as amended, with respect to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 749

Oklahoma taxable income of such nonresident aliens as determined

under the provision of the Oklahoma Income Tax Act.

Every payer of amounts covered by this subsection shall deduct

and withhold from such amounts paid each payee an amount equal to

eight percent (8%) thereof. Every payer required to deduct and

withhold taxes under this subsection shall for each quarterly period

on or before the last day of the month following the close of each

such quarterly period, pay over the amount so withheld as taxes to

the Oklahoma Tax Commission, and shall file a return with each such

payment. Such return shall be in such form as the Tax Commission

shall prescribe. Every payer required under this subsection to

deduct and withhold a tax from a payee shall, as to the total

amounts paid to each payee during the calendar year, furnish to such

payee, on or before January 31 of the succeeding year, a written

statement showing the name of the payer, the name of the payee and

the payee’s Social Security account number, if any, the total amount

paid subject to taxation, and the total amount deducted and withheld

as tax and such other information as the Tax Commission may require.

Any payer who fails to withhold or pay to the Tax Commission any

sums herein required to be withheld or paid shall be personally and

individually liable therefor to the State of Oklahoma.

H. Corporations. For all taxable years beginning after

December 31, 2021, a tax is hereby imposed upon the Oklahoma taxable

income of every corporation doing business within this state or

deriving income from sources within this state in an amount equal to

four percent (4%) thereof.

There shall be no additional Oklahoma income tax imposed on

accumulated taxable income or on undistributed personal holding

company income as those terms are defined in the Internal Revenue

Code of 1986, as amended.

I. Certain foreign corporations. In lieu of the tax imposed in

the first paragraph of subsection G of this section, for all taxable

years beginning after December 31, 2021, there shall be imposed on

foreign corporations, as defined in the Internal Revenue Code of

1986, as amended, a tax of four percent (4%) instead of thirty

percent (30%) as used in the Internal Revenue Code of 1986, as

amended, where such income is received from sources within this

state, in accordance with the provisions of the Internal Revenue

Code of 1986, as amended, and the Oklahoma Income Tax Act.

Every payer of amounts covered by this subsection shall deduct

and withhold from such amounts paid each payee an amount equal to

four percent (4%) thereof. Every payer required to deduct and

withhold taxes under this subsection shall for each quarterly period

on or before the last day of the month following the close of each

such quarterly period, pay over the amount so withheld as taxes to

the Tax Commission, and shall file a return with each such payment.

Such return shall be in such form as the Tax Commission shall

Oklahoma Statutes - Title 68. Revenue and Taxation Page 750

prescribe. Every payer required under this subsection to deduct and

withhold a tax from a payee shall, as to the total amounts paid to

each payee during the calendar year, furnish to such payee, on or

before January 31 of the succeeding year, a written statement

showing the name of the payer, the name of the payee and the payee’s

Social Security account number, if any, the total amounts paid

subject to taxation, the total amount deducted and withheld as tax,

and such other information as the Tax Commission may require. Any

payer who fails to withhold or pay to the Tax Commission any sums

herein required to be withheld or paid shall be personally and

individually liable therefor to the State of Oklahoma.

J. Fiduciaries. A tax is hereby imposed upon the Oklahoma

taxable income of every trust and estate at the same rates as are

provided in subsections B through D of this section for single

individuals. Fiduciaries are not allowed a deduction for any

federal income tax paid.

K. Tax rate tables. For all taxable years beginning after

December 31, 1991, in lieu of the tax imposed by subsections A

through D of this section, as applicable there is hereby imposed for

each taxable year on the taxable income of every individual, whose

taxable income for such taxable year does not exceed the ceiling

amount, a tax determined under tables, applicable to such taxable

year which shall be prescribed by the Tax Commission and which shall

be in such form as it determines appropriate. In the table so

prescribed, the amounts of the tax shall be computed on the basis of

the rates prescribed by subsections A through D of this section.

For purposes of this subsection, the term “ceiling amount” means,

with respect to any taxpayer, the amount determined by the Tax

Commission for the tax rate category in which such taxpayer falls.
Okla. Stat. tit. 68, § 68-24350 — OK Code / Title 68 / Section 68-24350
Renumbered as § 3146 of this title by Laws 1988, c. 162,
Status: in_force

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

1992.
Okla. Stat. tit. 68, § 68-360.7 — OK Code / Title 68 / Section 68-360.7
Violations - Revocation or suspension of license - Civil
Status: in_force

penalties - Contraband - Seizure and forfeiture - Injunction.

A. In addition to or in lieu of any other civil or criminal

remedy provided by law, upon a determination that a stamping agent

has violated Section 360.6 of this title or any rule promulgated

pursuant to the Master Settlement Agreement Complementary Act, the

Oklahoma Tax Commission may revoke or suspend the license of the

stamping agent. Each stamp affixed and each sale or offer to sell

cigarettes in violation of the Master Settlement Agreement

Complementary Act shall constitute a separate violation. For each

violation, the Oklahoma Tax Commission may also impose a civil

penalty in an amount not to exceed the greater of five hundred

percent (500%) of the retail value of the cigarettes or Five

Thousand Dollars ($5,000.00) upon a determination of violation of

the Master Settlement Agreement Complementary Act or any rules

promulgated pursuant thereto.

B. Any cigarettes that have been sold, offered for sale, or

possessed for sale in this state or imported for personal

consumption in this state, in violation of the Master Settlement

Agreement Complementary Act, shall be deemed contraband pursuant to

the Master Settlement Agreement Complementary Act. Those cigarettes

shall be subject to seizure and forfeiture as provided by this

section and all cigarettes so seized and forfeited shall be

destroyed as provided by this section and not resold.

C. 1. Cigarettes or tobacco product distributors and

wholesalers licensed by the Oklahoma Tax Commission, pursuant to

Section 304 or 415 of this title, who also distribute cigarettes in

a state bordering Oklahoma may store in their Oklahoma warehouse

cigarettes made contraband under this section if, and only if, they

have the tax stamp of another state affixed to each package of

cigarettes.

2. Cigarettes or roll-your-own tobacco products made contraband

pursuant to this section, without being subject to seizure or

forfeiture, may be transported in, into, or through the state

either:

a. on a commercial carrier with a proper bill of lading

with an out-of-state destination,

b. when the tax stamp of another state is affixed to each

pack of cigarettes or tobacco product transported, or

c. on a commercial carrier with a proper bill of lading

to a tobacco product distributor or wholesaler

licensed by the Oklahoma Tax Commission, pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 214

Section 304 or 415 of this title, who also distributes

cigarettes in a state bordering Oklahoma if, and only

if, the packing slip accompanying the shipment

indicates the shipment is for sale in another state

and indicates which state, and the invoice for the

shipment also indicates the shipment is for sale in a

state other than Oklahoma and identifies the state in

which the shipment is to be sold. The time of

delivery of the shipments shall be indicated on the

bill of lading of the common carrier when delivery is

completed. The receiving Oklahoma distributor or

wholesaler must, within twenty-four (24) hours of

receiving the delivery, affix or cause to be affixed

to each package of cigarettes the stamp of the state

in which they are to be sold.

3. All such cigarettes and tobacco products so seized shall

first be listed and appraised by the officer making such seizure and

turned over to the Tax Commission and a receipt therefor taken. The

person making such seizure shall immediately make and file a written

report thereof, showing the name of the person making such seizure,

the place where and the person from whom such property was seized,

and an inventory and appraisement thereof, at the usual and ordinary

retail price of such articles received, to the Tax Commission, and

the Attorney General, in the case of cigarettes stamped, sold,

offered for sale, or imported into this state in violation of the

provisions of Section 305.1 of this title and tobacco made

contraband by this section. Within sixty (60) days of seizure, the

person from whom the property was seized may file a request for

hearing with the Tax Commission or the Attorney General to show why

the seized property should not be forfeited and destroyed. If a

hearing is requested, the owner of the cigarettes and tobacco

products shall be given at least ten (10) days' notice of the

hearing. If no request for hearing is filed within the time

provided, the property seized will be forfeited and destroyed.

4. Any and all vehicles and property so seized shall be listed

and appraised by the officer making the seizure and turned over to

the county sheriff of the county in which the seizure is made and a

receipt therefor taken. The person making the seizure shall

immediately make a written report of the seizure, showing the name

of the person making the seizure, the location of the seizure, the

person from whom the property was seized, and an inventory and

appraisement of the property at the usual and ordinary retail price

of the articles received. The report shall be filed with the

Oklahoma Tax Commission and the Attorney General. The district

attorney of the county in which the seizures are made, at the

request of the Oklahoma Tax Commission or Attorney General, shall

file in the district court forfeiture proceedings in the name of the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 215

State of Oklahoma, as plaintiff, and in the name of the owner or

person in possession, as defendant, if known, and if unknown or not

susceptible to the jurisdiction of the court, in the name of the

property seized. The clerk of the court shall issue a summons to

the owner or person in whose possession the property was found

directing the owner or person to answer within ten (10) days. At

the forfeiture proceeding, if a distributor or wholesaler

demonstrates through clear and convincing evidence that the

possession of contraband by the distributor or wholesaler was

accidental, the vehicle in which the contraband was being

transported shall not be forfeited. In no case, however, shall

possession of more than twenty (20) cartons of contraband product be

considered by the courts as being possessed accidentally. If the

property is declared forfeited and ordered sold, notice of the sale

shall be posted not less than ten (10) days before the date of sale

in five public places in the county in which the seizures are made.

Proceeds of the sale shall be deposited with the clerk of the court,

who shall, after deducting costs including the costs of prosecution,

storage, and sale, pay the balance to the Oklahoma Tax Commission

for deposit in the Tobacco Settlement Endowment Trust Fund.

D. The Attorney General may seek an injunction to restrain a

threatened or actual violation of the Master Settlement Agreement

Complementary Act by a stamping agent and to compel the stamping

agent to comply with those provisions. In any action brought

pursuant to this section, the state shall be entitled to recover the

costs of investigation, costs of the action, and reasonable attorney

fees.

E. 1. It shall be unlawful for a person to:

a. sell or distribute cigarettes, or

b. acquire, hold, own, possess, transport, import, or

cause to be imported cigarettes that the person knows

or should know are intended for distribution or sale

in the state in violation of the Master Settlement

Agreement Complementary Act. A violation of the act

shall be a misdemeanor.

2. A person who violates subsection C of Section 360.4 of this

title engages in an unfair and deceptive trade practice in violation

of the provisions of the Oklahoma Consumer Protection Act.
Okla. Stat. tit. 68, § 68-347 — OK Code / Title 68 / Section 68-347
Inapplicability of certain provision to certain tribes or
Status: in_force

nations or their licensees.

The provisions of Sections 3 through 6 of this act shall not

apply to a federally recognized Indian tribe or nation which has

entered into a compact with the State of Oklahoma pursuant to the

provisions of subsection C of Section 1 of this act or to a licensee

of such a tribe or nation during the period that such compact is

effective.
Okla. Stat. tit. 68, § 68-2887 — OK Code / Title 68 / Section 68-2887
Exempt property
Status: in_force

The following property shall be exempt from ad valorem taxation:

1. All property of the United States, and such property as may

be exempt by reason of treaty stipulations existing at statehood

between the Indians and the United States government, or by reason

of federal laws in effect at statehood, during the time such

treaties or federal laws are in force and effect. In instances

where a federal agency has obtained title to property through

foreclosure, voluntary or involuntary liquidation or bankruptcy,

which was previously subject to ad valorem taxation, the property

may continue to be assessed for ad valorem taxes if such federal

agency has agreed to pay such taxes;

2. All property of this state, and of the counties, school

districts, and municipalities of this state, including property

acquired for the use of such entities pursuant to the terms of a

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1225

lease-purchase agreement which provides for the passage of title or

the release of security interest, if applicable, upon payment of all

rental payments and an additional nominal amount;

3. All property of any college or school, provided such

property is devoted exclusively and directly to the appropriate

objects of such college or school within this state and all property

used exclusively for nonprofit schools and colleges;

4. The books, papers, furniture and scientific or other

apparatus pertaining to any institution, college or society referred

to in paragraph 3 of this section, and devoted exclusively and

directly for the purpose above contemplated, and the like property

of students in any such institution or college, while such property

is used for the purpose of their education;

5. All fraternal orphan homes and other orphan homes;

6. All property used for free public libraries, free museums,

public cemeteries, or free public schools;

7. All property used exclusively and directly for fraternal or

religious purposes within this state. For purposes of this

paragraph, an exemption based on religious purposes includes real

property owned by a church which allows its premises to be used by

an entity if such entity is not required to make rental payments to

the church, is not required to execute a formal lease agreement with

respect to its occupancy of the church premises and conducts

instruction of children from any or all grades for ages preschool

through twelfth grade, including religious instruction consistent

with the doctrines of the church the premises of which are being

used for that purpose. For purposes of this paragraph, a

requirement by a church to be reimbursed by the entity for utility

expenses, janitorial services or similar expenses shall not be a

basis upon which to remove or deny the exempt status of church

property. Exempt status of church property shall not be removed nor

shall church property be allocated between taxable and exempt status

based on the use of church premises by an entity as described by

this paragraph.

For purposes of administering the exemption authorized by this

section and in order to determine whether a single family

residential property is used exclusively and directly for fraternal

or religious purposes, the fair cash value of a single family

residential property, for which an exemption is claimed as

authorized by this subsection, in excess of Five Hundred Thousand

Dollars ($500,000.00) for the applicable assessment year shall not

be exempt from taxation;

8. All property of any charitable institution organized or

chartered under the laws of this state as a nonprofit or charitable

institution, provided the net income from such property is used

exclusively within this state for charitable purposes and no part of

such income inures to the benefit of any private stockholder,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1226

including property which is not leased or rented to any person other

than a governmental body, a charitable institution or a member of

the general public who is authorized to be a tenant in property

owned by a charitable institution under Section 501(c)(3) of the

Internal Revenue Code and which includes but is not limited to an

institution that either:

a. additionally satisfies the income standards set forth

in Internal Revenue Service Revenue Procedure 96-32,

which may be audited by the county assessor of the

applicable county, in addition to other requirements

of this subparagraph, as a condition of obtaining and

maintaining the exemption, if:

(1) the property provides residential rental

accommodations regardless of whether services or

meals are provided, and

(2) the property:

(a) is occupied as of the applicable January 1

assessment date if the structure is a

single-family dwelling, or

(b) has an average seventy-five percent (75%)

occupancy rate, based upon the total number

of units suitable for occupancy, during the

calendar year preceding the applicable

January 1 assessment date if the property

contains multiple structures suitable for

multi-family housing. The owner of any

property subject to the occupancy

requirements prescribed herein shall submit

a report to the county assessor of the

county in which the property is located no

later than December 15 each year regarding

the occupancy rate for the preceding eleven

(11) months. If the report indicates that

the average occupancy rate was less than

seventy-five percent (75%), the county

assessor shall determine the taxable value

of the property for the succeeding

assessment year and the property shall not

be exempt for any subsequent assessment year

unless the average occupancy rate is at

least seventy-five percent (75%) during the

succeeding eleven-month period. Except as

provided in Section 178.6 of Title 60 of the

Oklahoma Statutes, no asset consisting of a

single-family or multi-family dwelling unit

owned by an entity the property of which

would otherwise be exempt pursuant to

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1227

subparagraph a of this paragraph shall be

exempt from ad valorem taxation if any such

dwelling unit was improved with or acquired

with any portion of proceeds from the sale

of obligations issued by any entity

organized pursuant to Section 176 of Title

60 of the Oklahoma Statutes if the interest

income derived from such obligations is

exempt from federal income tax, or

b. (1) for a facility constructed prior to January 1,

2006, is a continuum of care retirement community

providing housing for the aged, licensed under

Oklahoma law, owned by a nonprofit entity

recognized by the Internal Revenue Service as a

Section 501(c)(3) tax-exempt entity and located

in a county with a population of more than five

hundred thousand (500,000) according to the

latest Federal Decennial Census, and

(2) (a) for a facility in which construction was

completed on or after January 1, 2006, is:

i. a continuum of care retirement

community providing housing for the

aged, licensed under Oklahoma law,

ii. owned by a nonprofit entity recognized

by the Internal Revenue Service as a

Section 501(c)(3) tax-exempt entity,

and

iii. located in any county of the state

regardless of population, or

(b) for a facility other than a facility

described by division (1) of subparagraph b

of this paragraph and which is partially or

fully constructed prior to January 1, 2006,

is:

i. owned and occupied on or after January

1, 2006, by an entity that operates a

continuum of care retirement community

providing housing for the aged,

licensed under Oklahoma law,

ii. owned by a nonprofit entity recognized

by the Internal Revenue Service as a

Section 501(c)(3) tax-exempt entity,

and

iii. is located in any county of the state

regardless of population;

9. All property used exclusively and directly for charitable

purposes within this state, provided the charity using said property

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1228

does not pay any rent or remuneration to the owner thereof unless

the owner is a charitable institution described in Section 501(c)(3)

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

veterans' organization described in Section 501(c)(19) of the

Internal Revenue Code, 26 U.S.C., Section 501(c)(19);

10. All property of any hospital established, organized and

operated by any person, partnership, association, organization,

trust, or corporation, as a nonprofit and charitable hospital,

provided the property and net income from such hospital are used

directly, solely, and exclusively within this state for charitable

purposes and that no part of such income shall inure to the benefit

of any individual, person, partner, shareholder, or stockholder, and

provided further that such hospital facilities shall be open to the

public without discrimination as to race, color or creed and

regardless of ability to pay, and that such hospital is licensed and

otherwise complies with the laws of this state relating to the

licensing and regulation of hospitals;

11. All libraries and office equipment of ministers of the

Gospel actively engaged in ministerial work in the State of

Oklahoma, where said libraries and office equipment are being used

by said ministers in their ministerial work, shall be deemed to be

used exclusively for religious purposes and are declared to be

within the meaning of the term "religious purposes" as used in

Article X, Section 6 of the Constitution of the State of Oklahoma;

12. Household goods, tools, implements and livestock of every

person maintaining a home, not exceeding One Hundred Dollars

($100.00) in value or One Thousand Dollars ($1,000.00) in value if

Article X, Section 6 of the Oklahoma Constitution provides for an

exemption in such amount; and in addition thereto, there shall be

exempt from taxation on personal property the further sum of Two

Hundred Dollars ($200.00) to all enlisted and commissioned

personnel, whether on active duty or honorably discharged, who

served in the Armed Forces of the United States during:

a. the Spanish-American War,

b. the period beginning on April 6, 1917, and ending on

July 2, 1921,

c. the period beginning on December 6, 1941, and ending

on such date as the state of national emergency as

declared by the President of the United States shall

cease to exist, or

d. any other or future period during which a state of

national emergency shall have been or shall be

declared to exist by the Congress or the President of

the United States.

All surviving spouses made so by the death of such enlisted or

commissioned personnel, who are bona fide residents of this state,

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1229

shall be entitled to the above additional exemption provided in this

paragraph;

13. Family portraits;

14. All food and fuel provided in kind for the use of the

family not to exceed provisions for one (1) year's time, and all

grain and forage necessary to maintain for one (1) year the

livestock used to provide food for the family. No person from whom

pay is received or expected for board shall be considered a member

of the family within the intent and meaning of this paragraph;

15. All growing crops; and

16. All game animals, fowl and reptile, which are not being

grown for food or sale and which are kept exclusively for

propagation or exhibition, in private grounds or public parks in

this state.
Okla. Stat. tit. 68, § 68-349.1 — OK Code / Title 68 / Section 68-349.1
Tobacco taxes on noncompacting tribes or nations -
Status: in_force

Conditions for exception - Native American tax free stamps.

A. Sales of cigarettes and other tobacco products by retailers

licensed by noncompacting federally recognized Indian tribes or

nations (hereinafter "tribe or nation") shall be subject to the

Oklahoma Statutes - Title 68. Revenue and Taxation Page 199

cigarette excise tax imposed by Section 302 et seq. of this title

and the excise tax on other tobacco products imposed by Section 402

et seq. of this title.

B. 1. Members of noncompacting federally recognized Indian

tribes or nations may purchase cigarettes and other tobacco

products, without payment of Oklahoma cigarette excise tax or

Oklahoma other tobacco products excise tax, subject to the following

conditions:

a. the member of the noncompacting federally recognized

Indian tribe (hereinafter "purchaser") is purchasing

for his or her personal use, and not for sale,

transfer or other disposition to another person or

entity,

b. the purchaser is purchasing from a retailer licensed

by the federally recognized Indian tribe or nation of

which the purchaser is a member,

c. the licensed retailer of purchaser's federally

recognized Indian tribe or nation is located upon

"Indian country" of that licensing tribe or nation, as

that term is defined by 18 USC Section 1151(a) and

paragraph 3 of Section 348 of this title.

2. Members of noncompacting federally recognized tribes or

nations are not entitled to purchase cigarettes or other tobacco

products, free of Oklahoma excise tax, from retailers licensed by

any other tribe or nation, compacting or not, but have a right to

purchase cigarettes and other tobacco products, free of Oklahoma

excise tax, upon the "Indian country" of the tribe or nation of

which the purchaser is a member, per the United States Supreme Court

decision "Oklahoma Tax Commission v. Citizen Band Potawatomi Indian

Tribe of Oklahoma", 498 U.S. 505 (1991).

C. Cigarettes held for sale to members of a noncompacting tribe

or nation by licensed retailers of that tribe or nation, which are

located on the "Indian country" of that tribe or nation, as defined

by 18 USC Section 1151(a) and paragraph 3 of Section 348 of this

title, must bear a stamp issued by the Oklahoma Tax Commission

evidencing that cigarettes are purchased free of Oklahoma cigarette

excise tax. The following procedures shall apply to said stamps

(hereafter, "Native American tax free stamps"):

1. The probable demand for Native American tax free stamps for

each noncompacting tribe or nation shall be determined by the Tax

Commission by ascertaining the total membership in Oklahoma of the

tribe or nation from the Bureau of Indian Affairs or other reliable

source of public information regarding such membership, and

multiplying that number by the percentage of smokers in Oklahoma or

in the United States, whichever is greater, based on the most recent

data available from the State Department of Health and/or other

reliable source of public information. The product of that

Oklahoma Statutes - Title 68. Revenue and Taxation Page 200

calculation shall be multiplied by the average yearly consumption of

cigarettes by smokers in Oklahoma or the United States, whichever is

greater, based on the most recent data available from the State

Department of Health and/or other reliable source of public

information. The resulting number shall be deemed to constitute the

probable demand for Native American tax free stamps of such

noncompacting tribe or nation for a calendar year.

2. A preliminary determination of probable demand shall be

furnished to the governing authorities of each noncompacting tribe

or nation which may submit, for consideration by the Tax Commission,

any verifiable information in its possession regarding such probable

demand, including, but not limited to, a verifiable record of

previous sales to tribal members or other statistical evidence.

3. After consideration of all verifiable information furnished

by a noncompacting tribe or nation pursuant to paragraph 2 of this

subsection, the Tax Commission shall make its final determination of

probable demand, and furnish such determination to the subject

noncompacting tribe or nation and to all Oklahoma-licensed cigarette

wholesalers.

4. Each calendar year, the Tax Commission shall establish, as

to any and all Oklahoma-licensed cigarette wholesalers supplying

cigarettes to tribally licensed or owned retailers of each

noncompacting tribe or nation an allocation of the probable demand

for such tribe or nation, based upon each wholesaler's previous

year's reported sales of cigarettes to the tribally licensed or

owned retailers of such tribe or nation. In making such allocation,

the Tax Commission shall consider such other verifiable information

as may be submitted by a licensed wholesaler or such tribe or

nation. Upon reaching a final determination of allocation, the Tax

Commission shall advise the affected wholesaler and the tribe or

nation.

5. Oklahoma-licensed wholesalers may request and receive from

the Tax Commission, at the beginning of each quarter of the year,

their allocated share of Native American tax free stamps for the

tribally licensed or owned retailers of each noncompacting tribe or

nation. Once a wholesaler has received its allocated share of

Native American tax free stamps for the tribally licensed or owned

retailers of a noncompacting tribe or nation for the quarter, that

wholesaler may not receive any further Native American tax free

stamps for tribally licensed or owned retailers of that tribe or

nation during the quarter, absent good cause shown by verifiable

information submitted by the wholesaler and/or that tribe or nation,

which shall be considered and determined by the Tax Commission on a

case-by-case basis.

6. The Tax Commission is empowered and authorized to promulgate

such rules and regulations as, in its discretion, shall be deemed

necessary to implement and enforce the provisions of this section.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 201

7. The sale of cigarettes bearing the Native American tax-free

stamp to a nonmember of the tribe or nation which licensed the

tribally owned or licensed retailer shall, in accordance with the

United States Supreme Court decision "Oklahoma Tax Commission v.

Citizen Band Potawatomi Indian Tribe of Oklahoma", 498 U.S. 505

(1991), obligate that tribal retailer for payment of the applicable

Oklahoma cigarette excise tax, together with the costs and attorney

fees associated with any civil action brought to collect the unpaid

Oklahoma cigarette excise tax. Such actions may be instituted in

the district court in and for the county in which the tribal

retailer is located.

D. The Oklahoma excise tax on all tobacco products other than

cigarettes (hereafter "other tobacco products") held for sale by

Oklahoma-licensed wholesalers shall be paid by the wholesaler and

stamps affixed thereto by the wholesaler pursuant to Section 403 of

this title, including those other tobacco products which may be

purchased by members of noncompacting tribes and nations on the

"Indian country" of such tribe or nation from a retailer licensed or

owned by such tribe or nation. The following procedures shall apply

to the tax-free sale of other tobacco products:

1. The probable demand for the tax-free consumption of other

tobacco products by members of each noncompacting tribe or nation

shall be determined by the Tax Commission by ascertaining the total

membership in Oklahoma of the tribe or nation from the Bureau of

Indian Affairs or other reliable source of public information

regarding such membership, and multiplying that number by the

percentage of users of such other tobacco products in Oklahoma or

the United States, whichever is greater, based on the most recent

data available from the State Department of Health and/or other

reliable source of public information. The product of that

calculation shall be multiplied by the average yearly consumption of

users of such other tobacco products in Oklahoma or the United

States, whichever is greater, based on the most recent data

available from the State Department of Health and/or other reliable

source of public information. The resulting number shall be deemed

to constitute the probable demand for the tax-free consumption of

other tobacco products by members of such noncompacting tribes or

nations for a calendar year.

2. A preliminary determination of probable demand shall be

furnished to the governing authorities of each noncompacting tribe

or nation, which may submit, for consideration by the Tax

Commission, any verifiable information in its possession regarding

such probable demand, including, but not limited to, a verifiable

record of previous sales to tribal members or other statistical

evidence.

3. After consideration of all verifiable information furnished

by a noncompacting tribe or nation pursuant to paragraph 2 of this

Oklahoma Statutes - Title 68. Revenue and Taxation Page 202

subsection, the Tax Commission shall make its final determination of

probable demand and furnish such determination to the subject

noncompacting tribe or nation and to all Oklahoma-licensed other

tobacco product wholesalers.

4. Each calendar year, the Tax Commission shall establish, as

to any and all Oklahoma-licensed other tobacco product wholesalers

supplying other tobacco products to the tribally licensed or owned

retailers of each noncompacting tribe or nation an allocation of the

probable demand for such tribe or nation, based upon each

wholesaler's previous year's reported sales of other tobacco

products to the tribally licensed or owned retailers of such tribe

or nation. In making such allocation, the Tax Commission shall

consider such other verifiable information as may be submitted by a

licensed wholesaler or such tribe or nation. Upon reaching a final

determination of allocation, the Tax Commission shall advise the

affected wholesaler and the tribe or nation.

5. Oklahoma-licensed wholesalers may request and receive from

the Tax Commission, on the 30th of each month, a refund and/or

credit for the previous month's tax-free sales of other tobacco

products, equal to the lesser of: one twelfth (1/12) of their

allocated share of tax-free sales of other tobacco products to the

tribally licensed or owned retailers of each noncompacting tribe or

nation or verifiable tax-free sales to the licensed or owned tribal

retailers of such tribe or nation. Once a wholesaler has received

such refund and/or credit for a previous month's tax-free sales to

the tribally licensed or owned retailers of each noncompacting tribe

or nation, that wholesaler may not receive any further refund and/or

credit for said previous month, absent good cause shown by

verifiable information submitted by the wholesaler and/or the

noncompacting tribe or nation, which shall be considered and

determined by the Tax Commission on a case-by-case basis.

6. The Tax Commission is empowered and authorized to promulgate

such rules and regulations as, in its discretion, shall be deemed

necessary to implement and enforce the provisions of this section.

7. The tax-free sale of other tobacco products to a nonmember

of the noncompacting tribe or nation which licenses the tribally

owned or licensed retailer shall, in accordance with the United

States Supreme Court decision "Oklahoma Tax Commission v. Citizen

Potawatomi Indian Tribe of Oklahoma", 498 U.S. 505 (1991), obligate

that tribal retailer for payment of the applicable Oklahoma other

tobacco product excise tax, together with the costs and attorney

fees associated with any civil action brought to collect the unpaid

Oklahoma other tobacco product excise tax. Such actions may be

instituted in the district court in and for the county in which the

tribal retailer is located.

E. The provisions of this section are intended to, and shall be

construed to apply only to, sales of cigarettes and other tobacco

Oklahoma Statutes - Title 68. Revenue and Taxation Page 203

products on the "Indian country" of noncompacting federally

recognized Indian tribes or nations to the members of such tribes or

nations. In the event that a noncompacting tribe or nation enters

into an agreement with the State of Oklahoma, pursuant to Section

346 of this title, the terms of such compact shall take precedence

over the provisions of this section, which shall have no application

to any tribe or nation, while any compact between the State of

Oklahoma and that tribe or nation is in force and effect.

F. All cigarettes which are sold or held for sale at tribally

owned or licensed stores shall have affixed thereto a stamp or

stamps evidencing payment or nonpayment of the Oklahoma cigarette

excise tax, as required by the provisions in this section.

G. It shall be unlawful for any person knowingly to ship,

transport, receive, possess, sell, distribute or purchase contraband

cigarettes. Any person who engages in shipping, transporting,

receiving, possessing, selling, distributing or purchasing

contraband cigarettes shall, upon conviction, be guilty of a

misdemeanor punishable by a fine of not more than One Thousand

Dollars ($1,000.00). Any person convicted of a second or subsequent

violation hereof shall be guilty of a Class D3 felony offense and

shall be punished by a fine of not more than Five Thousand Dollars

($5,000.00), by a term of imprisonment as provided for in

subsections B through F of Section 20P of Title 21 of the Oklahoma

Statutes, or by both such fine and imprisonment.

H. Any person who knowingly engages in shipping, transporting,

receiving, processing, selling, distributing or purchasing

contraband cigarettes shall be subject to the forfeiture of property

as is provided by Section 305 of this title and assessment of

penalty as provided thereby and assessment for any delinquent taxes

found to be owing.

I. Pursuant to 25 C.F.R., Section 140.17, no trader shall sell

tobacco, cigars or cigarettes to any Indian or other person under

eighteen (18) years of age.
Okla. Stat. tit. 68, § 68-720 — OK Code / Title 68 / Section 68-720
Interstate carriers - Showing of public convenience and
Status: in_force

necessity - Application of Act.

Nothing in this act shall be construed as requiring interstate

carriers to make a showing of "public convenience and necessity" in

order to secure any license or permit required by the provisions

hereof, and the provisions of this act shall apply to interstate

commerce only in so far as such regulation is permitted by the

Constitution of Oklahoma and the United States, and the holding of

any part of this act or any section or part thereof to be void or

ineffective for any cause by any court shall not affect any other

section or part of this act.
Okla. Stat. tit. 68, § 68-3003 — OK Code / Title 68 / Section 68-3003
Revenue from nonrecurrent sources not to be included in
Status: in_force

political subdivisions estimate of probable income - Exceptions -

Exclusion from minimum program income of school districts - Federal

funds.

A. It shall be unlawful for the governing board of any county,

city, town, school district, or other governmental subdivision of

this state, in preparation of its budget for any fiscal year, to

estimate as probable income from sources other than ad valorem tax

of such governmental subdivision of the state and other than any

excise or other tax assessed by legislative enactment and

distributed in lieu of ad valorem taxes, any revenue from

nonrecurrent sources, regardless of such collections in the

immediately preceding fiscal year, to be derived from or the result

of sales, forfeitures, penalties, gifts, federal aid allotments of

every kind, windfalls, seizures, sheriff’s sales, court actions

whether civil or criminal, injunctions or protests won or released

by dismissal, or from any other such source not normally recurrent

year after year and so made recurrent by legislative enactment.

Provided, that upon a finding by the governing board of any county,

city, town, school district, or other governmental subdivision of

this state, that a source of income, although nonrecurrent, will

actually be available for the next ensuing fiscal year, the board

may include such income in its estimate of probable income.

Provided, that shared revenues of the federal government, if

ascertainable, shall be allowed to be included in the estimates. It

shall also be unlawful for any excise board to approve or require

the same, or for any supervisory state board, commission, or

officer, or for any agent or employee of either thereof to

countenance, approve, or require the same or to diminish in any

degree the distribution or allotment of state revenues or

appropriations by reason of such collections in a prior year or

prospect of such collections in the ensuing year; nor shall any

revenue received by a school district from gross production taxes

during the immediately preceding fiscal year, which was payable to

such district in another year or years, be considered as minimum

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1295

program income of such district for state aid purposes. The

provisions of Section 21 of Title 21 of the Oklahoma Statutes shall

be applicable where the foregoing prohibitions are disregarded.

Revenue received by a school district during the immediately

preceding year, which was earned by, or which was payable to, such

school district in another year or years, shall not be considered as

minimum program income of such district for state aid purposes.

B. All funds received by counties, cities, towns, or other

subdivisions of government in this state, hereinafter referred to as

the recipient government, from the federal government pursuant to

the distribution of funds authorized by the state shall be deposited

in the treasury of the recipient government in a fund which shall be

recorded and accounted for separately and apart from all other

funds. Principal and interest received from investments of the

federal monies, proceeds from the sale of assets purchased from the

federal monies, and other miscellaneous income derived from the

direct operation of the federal monies may be deposited in the fund

from which the federal monies were deposited if required by the

federal government or by the governing board of the recipient

government.

The unappropriated cash balance on hand may be appropriated as

needed upon the request of the governing board of the recipient

government and approval by the county excise board; provided, if the

governing board of the recipient government determines the need to

do so, it may estimate the amount remaining to be collected from its

entitlement from federal funds during the remainder of its fiscal

year and include such estimate in its request for appropriations.of probable income - Exceptions - Exclusion from minimum program income of school districts -d upon the request of the governing board of the recipient

government and approval by the county excise board; provided, if the

governing board of the recipient government determines the need to

do so, it may estimate the amount remaining to be collected from its

entitlement from federal funds during the remainder of its fiscal

year and include such estimate in its request for appropriations.

The estimate shall not exceed the amount of the entitlement which is

to be received during the remainder of the recipient government’s

fiscal year or, if the amount of the entitlement has not been

certified, ninety percent (90%) of such funds received during a

corresponding period of the previous fiscal year; provided, that if

the entitlement is less than that estimated or if the entitlement to

be collected during the recipient government’s fiscal year, in

addition to the unappropriated cash balance, is reduced below the

amount appropriated for the fiscal year, the governing board of the

recipient government shall request the county excise board for an

adequate reduction of appropriations in the fund.

All disbursements made from the fund in which federal monies are

deposited shall be made in the same manner as those made from the

general fund of the recipient government; provided, that no warrants

shall be drawn on the fund unless sufficient monies are available to

pay the warrants.

All forms and procedures necessary for the effective operation

of this act shall be prescribed by the office of the State Auditor

and Inspector.

Oklahoma Statutes - Title 68. Revenue and Taxation Page 1296

C. All monies distributed by federal, state, or tribal

governments and received by any state agency, board, or commission

to administer and distribute to counties, cities, towns, or other

subdivisions of the government in this state, hereinafter referred

to as the recipient government, that do not follow procedures in

subsection B of this section may utilize the letter of commitment

appropriation process as specified in this subsection. The

recipient government shall receive approval for the program as

required by the agency, board, or commission administering the

program and by the federal government, if required. Once approved,

the state agency, board, or commission may authorize a letter of

commitment of federal, state, or tribal monies available to the

recipient government. The excise board may approve an appropriation

in the amount of the letter of commitment. Each recipient

government may establish a separate appropriation within a special

revenue fund designated for federal, state, or tribal monies. The

recipient government may encumber funds in an amount not to exceed

the sum of the total letter of commitment, which is a binding

commitment of funding which the recipient government will receive

for the project or projects eligible for such federal funding. The

encumbrance of funds authorized by this section shall be made in

accordance with procedures prescribed by the State Auditor and

Inspector and shall be administered in accordance with rules and

regulations concerning such distribution adopted by the federal

government and the state agency, board, or commission. Any

expenditure incurred by the recipient government using the letter of

commitment appropriation process and disallowed by the federal,

state, or tribal government or state agency, board, or commission

administering the funds shall be paid by the recipient government.