2023 Oklahoma Statutes › Title 68. Revenue and Taxation › §68-1355. Exemptions - Subject to other tax.

There are hereby specifically exempted from the tax levied pursuant to the provisions of Section 1350 et seq. of this title:
1. Sale of gasoline, motor fuel, methanol, “M-85” which is a mixture of methanol and gasoline containing at least eighty-five percent (85%) methanol, compressed natural gas, liquefied natural gas, or liquefied petroleum gas on which the Motor Fuel Tax, Gasoline Excise Tax, Special Fuels Tax, or the fee in lieu of Special Fuels Tax levied in Section 500.1 et seq., Section 601 et seq. or Section 701 et seq. of this title has been, or will be paid;
2. For the sale of motor vehicles or any optional equipment or accessories attached to motor vehicles on which the Oklahoma Motor Vehicle Excise Tax levied in Section 2101 et seq. of this title has been, or will be paid, all but a portion of the levy provided under Section 1354 of this title, equal to one and twenty-five-hundredths percent (1.25%) of the gross receipts of such sales. For the purposes of this paragraph, if the sale of a motor vehicle includes a trade-in, gross receipts shall be calculated based only on the difference between the value of the trade-in vehicle and the actual sales price of the vehicle being purchased. Provided, the sale of motor vehicles shall not be subject to any sales and use taxes levied by cities, counties, or other jurisdictions of the state;
3. Sale of crude petroleum or natural or casinghead gas, and other products subject to gross production tax pursuant to the provisions of Section 1001 et seq. and Section 1101 et seq. of this title. This exemption shall not apply when such products are sold to a consumer or user for consumption or use, except when used for injection into the earth for the purpose of promoting or facilitating the production of oil or gas. This paragraph shall not operate to increase or repeal the gross production tax levied by the laws of this state;
4. Sale of aircraft on which the tax levied pursuant to the provisions of Sections 6001 through 6007 of this title has been, or will be paid or which are specifically exempt from such tax pursuant to the provisions of Section 6003 of this title;
5. Sales from coin-operated devices on which the fee imposed by Sections 1501 through 1512 of this title has been paid;
6. Leases of twelve (12) months or more of motor vehicles in which the owners of the vehicles have paid the vehicle excise tax levied by Section 2103 of this title;
7. Sales of charity game equipment on which a tax is levied pursuant to the Oklahoma Charity Games Act, Section 401 et seq. of Title 3A of the Oklahoma Statutes, or which is sold to an organization that is:
a.
a veterans’ organization exempt from taxation pursuant to the provisions of paragraph (4), (7), (8), (10), or (19) of subsection (c) of Section 501 of the United States Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c) et seq.,
b.
a group home for mentally disabled individuals exempt from taxation pursuant to the provisions of paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c) et seq., or
c.
a charitable health care organization which is exempt from taxation pursuant to the provisions of paragraph (3) of subsection (c) of Section 501 of the United States Internal Revenue Code of 1986, as amended, 26 U.S.C., Section 501(c) et seq.;
8. Sales of cigarettes or tobacco products to:
a.
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 346 of this title or to a licensee of such a tribe or nation, upon which the payment in lieu of taxes required by the compact has been paid, or
b.
a federally recognized Indian tribe or nation or to a licensee of such a tribe or nation upon which the tax levied pursuant to the provisions of Section 349.1 or Section 426 of this title has been paid;
9. Leases of aircraft upon which the owners have paid the aircraft excise tax levied by Section 6001 et seq. of this title or which are specifically exempt from such tax pursuant to the provisions of Section 6003 of this title;
10. The sale of low-speed or medium-speed electrical vehicles on which the Oklahoma Motor Vehicle Excise Tax levied in Section 2101 et seq. of this title has been or will be paid;
11. Effective January 1, 2005, sales of cigarettes on which the tax levied in Section 301 et seq. of this title or tobacco products on which the tax levied in Section 401 et seq. of this title has been paid; and
12. Sales of electricity at charging stations as defined by Section 6502 of this title when the electricity is sold by a charging station owner or operator for purposes of charging an electric vehicle as defined by Section 6502 of this title and the tax imposed pursuant to Section 6504 of this title is collected and remitted to the Oklahoma Tax Commission.
Added by Laws 1981, c. 313, § 2, emerg. eff. June 29, 1981. Amended by Laws 1984, c. 138, § 1, operative July 1, 1984; Laws 1984, c. 153, § 7, emerg. eff. April 21, 1984; Laws 1988, c. 47, § 15, operative July 1, 1988; Laws 1989, c. 167, § 4, eff. July 1, 1989; Laws 1990, c. 113, § 1, operative July 1, 1990; Laws 1991, 1st. Ex. Sess., c. 2, § 3, emerg. eff. Jan. 18, 1991; Laws 1991, c. 337, § 1, emerg. eff. June 15, 1991; Laws 1992, c. 328, § 32, eff. Dec. 1, 1992; Laws 1993, c. 10, § 10, emerg. eff. March 21, 1993; Laws 1993, c. 224, § 8, eff. Sept. 1, 1993; Laws 1994, c. 54, § 1, eff. July 1, 1994; Laws 1995, c. 337, § 3, emerg. eff. June 9, 1995; Laws 2000, c. 239, § 1, eff. July 1, 2000; Laws 2001, c. 243, § 5, eff. Nov. 1, 2001; Laws 2004, c. 322, § 12, eff. Dec. 1, 2004 (State Question No. 713, Legislative Referendum No. 336, adopted at election held Nov. 2, 2004); Laws 2005, c. 1, § 106, emerg. eff. March 15, 2005; Laws 2007, c. 203, § 2, eff. July 1, 2007; Laws 2008, c. 302, § 10, emerg. eff. June 2, 2008; Laws 2015, c. 50, § 2, eff. Nov. 1, 2015; Laws 2017, c. 356, § 1, eff. July 1, 2017; Laws 2021, c. 157, § 14, eff. Nov. 1, 2021; Laws 2023, c. 370, § 1, eff. Nov. 1, 2023.
NOTE: Laws 1991, c. 235, § 19 repealed by Laws 1992, c. 328, § 33, eff. Dec. 1, 1992 (State Question No. 650, Legislative Referendum No. 294, adopted at election held Nov. 3, 1992) and Laws 1992, c. 339, § 22, eff. Jan. 1, 1993. Laws 1992, c. 339, § 21 repealed by Laws 1993, c. 10, § 16, emerg. eff. March 21, 1993. Laws 2004, c. 330, § 3 repealed by Laws 2005, c. 1, § 107, emerg. eff. March 15, 2005.