Oklahoma Administrative Code › Title 710 - Oklahoma Tax Commission › Chapter 65 - Sales and Use Tax › Subchapter 13 - Sales and Use Tax Exemptions › Part 5 - ITEMS SUBJECT TO OTHER TAXES › Section 710:65-13-30 - Exemption for the sale of tangible personal property subject to other taxes

Current through Vol. 41, No. 20, July 1, 2024
(a)
Aircraft,
				  boats, boat motors, and low-speed/medium-speed electrical vehicles.
Sales and use tax does not apply to the sale of airplanes, boats, boat motors,
				  and low-speed/medium-speed electrical vehicles, which are subject to the
				  "Oklahoma Aircraft Excise Tax Act" [
See:
68 O.S. § 6002], the
				  "Oklahoma Vessel and Motor Registration Act" [
See:
63 O.S. §
				  4107], or the "Oklahoma Vehicle Excise Tax Act" [
See:
68 O.S.
				  § 2106]. These excise taxes are levied on all aircraft, small vessels,
				  watercraft, sailboats, motors greater than ten (10) horsepower, motorboats, or
				  low-speed/medium-speed electrical vehicles, and also the optional equipment and
				  accessories attached at the time of the sale and included in the purchase price
				  or manufacturer statement of origin.
(b)
Motor vehicles.
Sales of
				  motor vehicles on which the Oklahoma vehicle excise tax levied in Section
				  2101 et seq. of Title 68 has been,
				  or will be paid, are subject to sales/use tax at the rate of 1.25% of the gross
				  receipts of such sales. (
See
710:65-19-215). The provisions of
				  this subsection do not apply to low-speed/medium-speed electrical vehicles,
				  power units (truck tractors) and trailers proportionally registered pursuant to
				  the International Registration Plan (IRP) 47 O.S. § 1120 or trailers and
				  semitrailers registered under subsection C of Section
				  1133 of Title 47 of the Oklahoma
				  Statutes to transport cargo over the highways of this state.
(c)
Accessories, optional equipment,
				  and parts.
Sales tax is due on accessories, optional equipment, or parts
				  which are not attached and sold as part of the purchase price on the sale of
				  aircraft, motors greater than ten (10) horsepower, vessels, motorboats, motor
				  vehicles and low-speed/medium speed electrical vehicles.
(d)
Boats motors.
The sale of
				  boat motors in excess of ten (10) horsepower is subject to boat and motor
				  excise tax. [
See:
63 O.S. §§ 4003(B)(1), 4107] The sale
				  of boat motors ten (10) horsepower or less is subject to sales/use tax.
				  [
See:
68 O.S. § 1355]
(e)
Leases of aircraft.
Leases
				  of aircraft are not subject to sales tax if either the aircraft excise tax has
				  been paid on the lease transaction or an exemption applies to the transfer from
				  the lessor to the lessee, pursuant to 68 O.S. §§ 1355(9) and
				  6001(4).
(f)
Sales of crude
				  petroleum, natural or casinghead gas, and other products.
Sales
				  of crude petroleum, natural or casinghead gas, and other products subject to
				  gross production tax pursuant to 68 O.S. §1001 et seq. and 68 O.S.
				  §1101 et seq. are not subject to sales tax. 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.
[
See
: 68 O.S.
				  § 1355(3)]
(g)
Sales
				  from coin-operated vending devices.
Sales from coin-operated vending
				  devices on which the fee imposed by 68 O.S. §§1501-1512 has been paid
				  are not subject to sales tax.
(h)
Leases of motor vehicles.
Leases of motor vehicles are exempt from
				  sales tax provided that the lease is for a term of twelve (12) months or more
				  and the vehicle excise tax levied by Section
				  2103 of Title 68 of the Oklahoma
				  Statutes has been paid.
(i)
Sales of charity game equipment.
Sales of charity game equipment
				  on which a tax is paid pursuant to the Oklahoma Charity Games Act, (3A O.S.
				  § 401 et seq.), are not subject to sales tax. Additionally charity games
				  equipment is exempt from sales tax when sold to the following entities:
(1) a veterans' organization exempt from
				  taxation pursuant to the provisions of Section 501(c)(4),(7),(8),(10), or (19)
				  of the Internal Revenue Code;
(2) a
				  group home for mentally disabled individuals exempt from taxation pursuant to
				  Section 501(c)(3) of the Internal Revenue Code are not subject to sales tax;
				  and
(3) a charitable healthcare
				  organization exempt from taxation pursuant to Section 501(c)(3) of the United
				  States Internal Revenue Code of 1986, as amended.